Highly volatile markets experience both fast-moving corrections and upswings. After a “furious” quarter at the start of the year, a consolidation phase with accompanying correction was overdue and made sense for the general market development. In the wake of a correction, markets need to establish a strong support zone from which, ideally, a new upswing can start.
Thought of the week
Digital Asset News
The digital asset industry is reacting very positively to the adoption of the new European crypto regulation and also sees it as a competitive advantage over the US.
Although the new EU regulatory framework for cryptocurrencies has yet to be approved by the European Council before final adoption, crypto industry leaders have reacted positively to the fact that Markets in Crypto Assets (MiCA) is now close to launch.
Binance CEO Changpeng “CZ” Zhao, for example, has indicated that he will be making adjustments to that effect on his market-leading crypto exchange over the next 12 to 18 months to accommodate the potential new framework. Meanwhile, other observers point out that the U.S. now appears to be being left behind by the EU when it comes to crypto regulation, which could give Europe a competitive advantage over the U.S. when it comes to cryptocurrencies in the future, thanks to MiCA.
“We believe this [MiCA] is a very pragmatic solution to the challenges we face together,” as CZ comments on the adoption. To which he adds, “There are now clear rules of the game for crypto exchanges in the EU.”
With a new CO2 dashboard, Solana aims to provide more transparency on the EU’s own carbon emissions and kick off a trend in the blockchain industry.
According to the Foundation’s official blog, this also makes Solana the first “major smart-contract blockchain” to measure CO2 emissions in real time. The lead organization behind the network hopes the move will spur a trend toward greater transparency around carbon emissions in the blockchain ecosystem:
“The Solana Foundation hopes to set a new standard for measuring emissions in blockchain by publishing this data.”
The new dashboard can be found on Solana Climate’s website. It displays the total number of nodes, megawatt hours consumed, average and marginal carbon emissions, and numerous other indicators.
The new dashboard also includes several emissions output graphs comparing Solana’s usage to other emissions-generating activities.
Although the bitcoin price continues to go down, experts still consider the current price development as “healthy”. As data shows, the bitcoin price was only able to hold just above $27,000 on Saturday.
While the American stock market was able to make slight gains at the end of the week, the market-leading cryptocurrency must continue to suffer, which is why analysts are already warning of a retracement to 25,000 US dollars.
Overall, this leaves Bitcoin down 10% for the week and 4% for April so far, according to data from Coinglass. A real turnaround after a strong first quarter. “If your long-term forecast for Bitcoin has changed because of a $2,000 retracement, after a previous upswing of more than $10,000 from $19,000 to more than $30,000, then you are doing something wrong,” as the expert points out with a wink.
To that effect, he states that such price developments are “common” in the crypto market, as Credible Crypto elaborated.
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.