Cryptocurrency News Update: Bitcoin fails to capitalize of Fed's inflationary policy

Here's what you need to know on Friday

Markets:

BTC/USD recovered from the intraday low of $11,280 to trade at $11,400. The first digital coin has barely changed both on a day-to-day basis and since the beginning of the day despite wild gyrations on Thursday, following Fed's Powell speech. At the time of writing, BTC/USD is moving within a strong short-term bearish trend amid low volatility.

At the time of writing, ETH/USD is changing hands at $387.00. The coin has gained over 1.2% since the start of Frida and stayed unchanged on a day-to-day basis. Now it is moving within a short-term bearish trend amid high volatility.

XRP/USD tested $0.2600 during early Asian hours and recovered to $0.2660 by press time. The third-largest digital asset has lost over 3% of its value in the recent 24 hours amid major sell-off. The short-term trend of XRP is bearish, while the volatility is expanding.

Among the 100 most important cryptocurrencies Numeraire (NMR) $58.74 (+41.5%), UMA (UMA) $9.30 (+31.9%), Serum (SRM) $2.75 (+25.5%) are the most successful.  The day's losers are Aragon (ANT) $8.08 (-15.6%), Flexacoin (FXC) $0.0080 (-9.5%), NXM (NXM) $46.88 (-8.5%). 

Chart of the day:
BTC/USD, 30-min chart

Market
 
A number of high-profile investors including Winklevoss Twins relentlessly tout Bitcoin growth. The founders of the cryptocurrency exchange. In a recent blog post the brothers explained in detail why the first cryptocurrency would eventually cost over $500,000. They pointed out that Bitcoin went from zero to a market value of over $200 billion in less than ten years, which is a big success. Bitcoin is often called digital gold due to its sacrability and anti-inflation features. Winklevoss brothers used a gold framework to access Bitcoin and forecast its future path. 

If we are right about using a gold framework to value bitcoin, and bitcoin continues on this path, then the bull case scenario for bitcoin is that it is undervalued by a multiple of 45. Said differently, the price of bitcoin could appreciate 45x from where it is today, which means we could see a price of $500,000 per bitcoin, they wrote.

Industry
 
Privacy-focused web browser Brave has integrated Gemini trading widget. Now the users of the US-based cryptocurrency exchange can view their balances and deposit addresses and also trade any digital asset listed on the exchange. The widget is accessible by opening a new tab. Moreover, verified Brave content creators can receive payments to a Gemini Creator Wallet that can hold both crypto and fiat assets. 

Japanese messaging giant LINE launched two new products to support its cryptocurrency and blockchain-related portfolio. The first one is LINE Blockchain Developers, which is a development platform for decentralized applications and services. The second one is a digital asset wallet BITMAX where users can hold and manage all digital assets, they receive from blockchain services on the LINE Blockchain.

A “critical bug” in Parity-Ethereum and OpenEthereum versions 2.7 and later made 13% of Ethereum nodes useless as it stops nodes from syncing with the network’s latest block. The experts noted that such bugs are an issue as it takes too much time to fix them. Also, the experts noted that they put additional strain on the most popular client, Geth, and makes the network even more centralized.

Regulation

According to the recent report on National Risk Assessment (ENR), revealed by the Mexican Financial Intelligence Unit (UIF) of the Ministry of Finance and Public Credit, banks are the most attractive destinations for money launderers in the country. Cryptocurrencies are often criticized as a handy tool for money laundering and financing illegal activities. However, the researchers do not mention the cryptocurrencies of fintech as attractive channels to criminals.

Quote of the day:

Popular cryptocurrency analyst PlanB:

This is a game changer: Nasdaq listed company with $250M bitcoin (25% of assets, 15% of market cap) is basically a bitcoin ETF! Shareholders have 15% BTC exposure and 85% tech. No capital charges (like banks & pension funds), no SEC approval needed (like ETF). So it begins.