Fourth quarter kicked off with bad news
Institutions have increased their presence in the bitcoin market
The world’s main cryptocurrency relentlessly updated its all-time high
International consortium of news organizations developing transparency standards.
In a four-part series, BeInCrypto highlights key global events that have impacted the cryptocurrency market in 2020
The beginning of October turned out to be especially hot for the cryptocurrency industry after the US Commodity Futures Trading Commission (CFTC) accused the cryptocurrency derivatives exchange BitMEX of conspiracy and violation of bank secrecy laws. A statement posted on the CFTC website claimed that the company operated an unregistered trading platform and failed to provide the necessary anti-money laundering measures.
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A couple of days after the indictment, BitMEX founders Arthur Hayes and Samuel Reed lost their positions. Almost immediately after the accusations by the regulator, exchange users withdrew more than 50 thousand bitcoins from the platform (at the current rate of ~ $ 1.2 billion).
At the same time, Bitcoin almost did not react to the news, continuing to remain above the $ 10,000 mark.
Meanwhile, for the domestic market, early October was marked by progress in digitalization. On the tenth of October, the Bank of Russia officially entered the race to digitalize the economy, initiating public consultations on the issue of the digital ruble. At the same time, the regulator determined the maximum entry threshold for unqualified investors into the digital financial assets (DFA) market. According to the document, such investors will be able to invest in cryptocurrencies no more than 600 thousand rubles per year..
In mid-October, negative news came to the crypto market again after OKEx froze the withdrawal of all funds amid cooperation with law enforcement agencies as part of an ongoing investigation. At the same time, the local publication Caixin.com reported, citing intra-exchange sources, that the founder of OKEx Star Xu was arrested by law enforcement agencies in China..
But even this news was not enough to knock Bitcoin off the bullish trend. Cryptocurrency Remains Above $ 11 300.
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On the twentieth of October, PayPal officially added support for buying and selling cryptocurrencies through its infrastructure. PayPal said that from the beginning of 2021, customers will be able to use the cryptocurrency for purchases from 26 million sellers on the PayPal network. Against the background of news, the price of bitcoin added $ 2 thousand.
The news from PayPal correlated with the growth in assets managed by the Grayscale Investments cryptocurrency fund. At the beginning of November, the size of digital assets managed by Grayscale exceeded $ 9 billion. At the same time, despite the variety of choices, the most popular product of the fund remained the GBTC bitcoin trust ($ 7.6 billion).
The Mainstream Media Narrative Shifts as Deutsche Bank and Morgan Stanley Come to Bitcoin
New Year’s triumph
December was arguably the most bullish month for the cryptocurrency market over the past couple of years. At the beginning of the month, there was a successful launch of the zero phase of Ethereum 2.0. Ethereum 2.0 validators have begun receiving additional ETH cryptocurrency as a staking reward in the ETH2 deposit contract. Ethereum 2.0 developers will now focus on the first phase, which will deploy the infrastructure of the new network.
On December 12, MicroStrategy announced that it has successfully placed $ 650 million in convertible bonds to buy Bitcoin. Then one of the largest American insurance companies Massachusetts Mutual Life Insurance Co. announced the purchase of bitcoin in the amount of $ 100 million.
A couple of days after the arrival of large players on the market, bitcoin for the first time in history exceeded the $ 20,000 mark. Ten days later, MicroStrategy reported on the purchase of bitcoin for $ 650 million at a rate of $ 21,925 per bitcoin. The total state of the cryptocurrency managed by MicroStrategy was 70,470 BTC ($ 1.7 billion at the current exchange rate). Bitcoin, meanwhile, crossed the $ 23 thousand bar.
However, just before Christmas, the US Securities and Exchange Commission (SEC) decided to “please” the XRP ecosystem community by suing Ripple Inc. The regulator accused the company of selling unregistered securities under the guise of XRP tokens for the past seven years. Ripple CEO Brad Garlinghouse said he will defend the entire crypto market and will not let the SEC scare the industry.
Amid SEC allegations, the XRP price immediately lost all the points it gained since mid-November. In just a couple of days, the XRP / USDT price fell from $ 0.50 to $ 0.28, and at the time of writing, it continued to decline further.
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