Key events in the cryptocurrency market in the second quarter of 2020

CONTENT

  • The third halving took place on the bitcoin network

  • Durov refused to develop TON

  • The excitement around the DeFi segment began to increase in the market

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In a four-part series, BeInCrypto highlights key global events that have impacted the cryptocurrency market in 2020

The second quarter of 2020 turned out to be no less intense than the previous one. Bitcoin managed to collapse to an annual low amid the coronavirus pandemic, a Chinese court recognized ETH as property for the first time, and regulators in the United States hacked down the TON project. We remember what the second quarter of the year was distinguished by.

The first part of a series of articles dedicated to the key events of the first quarter, read here.

Incubator for innovation

The entire second quarter of 2020 passed for bitcoin under the banner of recovery. After the price collapse to $ 4,120, some in the cryptocurrency community expected further drawdowns to $ 1,200. Unfortunately or fortunately, this never happened. The last time the price of bitcoin fell below $ 5,000 was in March, and since then this has not happened again..

However, the absence of sharp price fluctuations did not mean a lull in the cryptocurrency market itself. For example, in early April, a US court rejected Telegram’s request to clarify the scope of the ban on issuing Gram tokens exclusively to non-American investors..

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It was assumed that investors outside the United States will commit themselves not to sell assets to Americans, and the TON developers will create appropriate restrictions on wallets. The court sided with the US Securities and Exchange Commission (SEC), confirming that the assets fall under the definition of a security and have not been properly legalized.

After that, the Libra AssociationIn June 2019, Facebook announced preparations for the release of the Libra digital currency. The social networking project immediately attracted attention … More scrapped plans to create a single global digital currency due to pressure from regulators. At that time, Libra representatives continued to claim that the project will be launched in 2020..

At the end of April, a court in Shenzhen ruled that Ethereum (ETH) cryptocurrency is legally protected and Chinese citizens are not prohibited from owning and operating cryptocurrency. The court ruled that cryptocurrency assets “have economic value and can be sold publicly”.

In general, bitcoin recovered quite smoothly throughout April – with the exception of the night of April 29-30. Then the price of BTC / USDT jumped from $ 7850 to $ 9413, thus returning to the pre-crisis level. However, the cryptocurrency almost immediately fell back to the $ 8700- $ 9150 range. Bitcoin managed to get close to the $ 10,000 mark on May 9 (two days before the halving), when the price of the cryptocurrency reached $ 9989.

Hype of the year

Just a couple of days before the halving, billionaire and successful trader Paul Tudor Jones made a big statement about bitcoin, calling cryptocurrency the gold of the current generation. Jones told his clients that Bitcoin is insurance against the risks associated with current central bank policies.

This statement will play a role in the future in the jump in bitcoin volatility..

On Monday, May 11, 2020, block 630,000 experienced a widely anticipated block reward cut by the community. Since then, the reward for mining a block in the Bitcoin blockchain network has become 6.25 BTC instead of the previous 12.5 BTC.

Source: coingecko.com

Bitcoin maximalists from the very beginning of 2020 regarded halving Bitcoin halving reduces the number of new coins created and earned by miners in half. This happens about every four years and … More bitcoin as a key reason for the return to all-time highs (which turned out to be true in the long run, but only partially). Amid falling rewards, the price of bitcoin has sharply increased volatility, jumping from $ 8,544 to $ 8,921 in a matter of hours. However, in the short term, halving did not have much impact on the price of the leading cryptocurrency..

Key events in the cryptocurrency market in the second quarter of 2020

At the same time, Yves Mersch, a member of the executive board and deputy chairman of the supervisory board of the organization, said that the European Central Bank was developing its own digital currency of the Central Bank (CBDC). … More) for retail.

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A day after the halving, an equally important event took place in the cryptocurrency community, although not as rosy as in the case of Bitcoin. On Tuesday, May 12, 2020, Telegram founder Pavel Durov announced that the company had stopped work on the Telegram Open Network (TON) blockchain platform due to the prohibitive rhetoric of American law..

A week later, a lawsuit was filed against the BitMEX cryptocurrency exchange, in which the exchange was accused of “premeditated formation from the very moment of its foundation to carry out countless illegal actions.” The cryptocurrency community did not immediately attach importance to the lawsuit, which in the long term led to catastrophic consequences for the management of the exchange..

The beginning of the DeFi madness

At the end of May, the investment company Grayscale Investments reported that the volume of investments in bitcoin had doubled. Then Grayscale began to buy more cryptocurrency than the miners managed to mine. Later, it was this investment company that became one of the leading Bitcoin providers to the traditional finance market..

Source: coingecko.com

For the first time since February, Bitcoin was able to return to the $ 10,000 level – albeit for a short time – in early June. In general, June turned out to be relatively stable for bitcoin. Its course has been smoothly descending towards $ 9000 all month. Bitcoin could finally gain a foothold above the $ 10,000 mark only at the end of July.

It is from June that a massive excitement around decentralized finance will begin in the cryptocurrency market (DeFiDecentralized finance (DeFi) is financial services built on the basis of blockchain technology that offer users access to an open, efficient and … More). In the first month of summer, the total capitalization of the DeFi sector exceeded the $ 2 billion mark. A little later, the Compound cryptocurrency lending project surpassed the popularity of the DeFi market leader – Maker.

(Monday) Massive Crypto Dump. Alts taking hits. Diamond Hands time?

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Key events in the cryptocurrency market in the second quarter of 2020
Key events in the cryptocurrency market in the second quarter of 2020
Key events in the cryptocurrency market in the second quarter of 2020

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