South Korea inspects three banks over crypto exchange connections
A 1 billion blockchain fund is launched with Chinese government backing
The China fund is a huge factor
Japan’s financial regulator ordered two crypto exchanges to halt operations
Bearish clouds are still strong when it comes to the crypto markets. Bitcoin is trading below the critical 7K mark and traders are wondering if we are going to touch this years' low of $5922 for Bitcoin. Bitcoin had some good run in the past two days as it was riding the waves of positive news from the weekend. However, the market was once again affected by a combination of early negative news hitting the market.
Japan’s financial regulator ordered two crypto exchanges to halt operations for two months due to a lack of know-your-customer procedures. Once again, showing the government’s trust in certain exchanges magnifies how exchanges currently lack proper management. More importantly, with exchanges being targeted, investors are afraid that they wouldn’t be able to get their coins out. Hence, rapid selling, causing cryptos to slide down.
Further negativity popped out as Korea inspects 3 banks over crypto exchange connections. The further governmental crackdown once again shows how the entire crypto community is now facing evolution. In the short term, uncertainty looms, as big economic actors come and scrutinize this new wild community. Such uncertainty diminished economic confidence, causing cryptos to further slide. However, in the long run, this creates a safer crypto community, aiding its long-term growth.
Later in the day, positive news came out, preventing the cryptos to further slide, causing the prices to plateau. A 1 billion blockchain fund is launched with Chinese government backing whilst Singapore plans to push blockchain to financial inclusion in the country. The combo of both news shows governmental support, especially from China, who once strongly opposed the country. The China fund is a huge factor in preventing the coin’s slide since its super economic power status and its actions yield great effect on any business markets. Confidence in China means that the tide has turned, cryptos now have an even brighter future.
Other less impactful, positive news came out, as Salesforce started to adopt blockchain, and Coinbase hiring Facebook and Twitter employees to help run its operations. 500 startups back 500k seed round for Stable Coin project. This simply displays businesses, who adopt blockchain, are now expanding as they see a better crypto future. This links well with last week, where a JPM crypto enthusiast left the firm to start her own crypto company. Not even governments are gaining new confidence in the tech, institutions also are.
The later positivity prevented the slide from going further.