Former US Fed Chair Says He Doesn’t Believe in Having a CBDC

The preceding Fed Chair of the United States, Alan Greenspan has expressed his opinion on Central Bank issued Digital Currencies, saying there was “no point” to it. Alan made this remark at a conference organized by the Chinese Financial Magazine Caijing on the 11th of November.

Alan’s opinion was based on the premise that fiat currencies are supported by sovereign credit which was an advantage restricted only to institutional structures.

He said that even the most successful corporations/stocks of the world presently (Facebook, Amazon, Apple, Netflix, and Google) could not contend with the capability of the US financial markets.

Alan was on the seat when several crises rocked the American financial markets like; the Black Monday stock exchange crash, the financial crisis of Mexico, Asia and Russia, and the dot com bubble burst. He was also there for the tech boom of the 1990s. His 1987-2006 term saw him manage several consecutive crises. The Fed’s consistent preeminence over the International financial space, got TIMES magazine to publish a cover of Alan, the then-Treasury Secretary and Undersecretary labeling them the “Committee to Save the World” in 1999.

However, in the financial crash that happened in 2008 caused the public to blame Alan and his associates for enacting rules that affected the global space negatively, which caused his reputation to decline.

China Already Spearheading the Movement
In this time of growing pressure between the US and China, the PBoC is on its way to becoming the first nation in the world to release a CBDC.

Also, Tunisia has commenced a project on digitizing the Dinar. The nation is also looking to release a paper-supported CBDC on a blockchain system in conjunction with a Russian tech firm.

The US House of Reps Want a CBDC
Last month, members of the US House of Reps Financial Services Committee sent a letter to the sitting Fed Chair, Jerome Powell, advising that the Chair looks into developing a USD CBDC.

The legislators insisted that the Fed had the power and obligation to develop a more durable and advanced monetary system by creating a digital currency.

Ethereum Continues Its Consolidation as the Bears and Bulls Reach Equilibrium

Key Resistance levels: $220, $240, $260
Key Support Levels: $160, $140,$120

ETH/USD Long-term Trend: Ranging
Ethereum had been trading in a sideways trend since August. In August, the market fell to a low at $170 and continued its fluctuations. The coin is fluctuating between the levels of $160 and $200. Neither the bulls nor the bears have been able to break the range-bound levels. Presently, the bulls have been having an upper hand as the price made unsuccessful attempts to break the upper price range.

On October 9, the bulls made a close attempt at the upper price range but were resisted. The market dropped to a low of $160. The bulls came back to the resistance line to retest the $200 price level. However, if the bulls succeed in breaking the resistance line, ETH will reach a high of $220 price level. Nevertheless, if the resistance line and the support line remain unbroken, Ethereum will continue its fluctuations.

ETHUSD-Daily Chart

Daily Chart Indicators Reading:
The pair has broken the downtrend line which means that the coin is out of the bearish trend. The 21-day and the 50-day SMAs are trending horizontally meaning that the coin is in a range-bound movement. Ethereum will rise again if the resistance line is broken and the price is sustained above it. However, the price had a false breakout in September which resulted in the price bearish move.

ETH/USD Medium-term bias: Bullish
On the 4-hour chart, the market is fluctuating between the levels of $160 and $190. In the last three months, the Ethereum price level had been stable. A range-bound trader can trade the resistance line and the support line by placing pending orders. In the upper price range, you can place a sell limit. Similarly, at the support line, you can place a buy limit. Your buy limit should have a target of $190. While your sell limit should have a target if $160.

ETHUSD-4-Hour Chart

4-hour Chart Indicators Reading
Ethereum is above the centerline 50 of the Relative Strength Index level 53 which indicates that ETH tends to rise. The moving averages are fluctuating according to the price bars indicating a sideways move.

General Outlook for ETH
The ETH/USD pair will continue its sideways move until the resistance and support lines are broken. The pair will rise since the bulls have broken the downtrend line. The coin should have buying powers at the current market price level. The market has been relatively stable in the last three months.

ETH Trade Signal
Instrument: ETHUSD
Order: Sell Limit
Entry price: $197
Stop: $210
Target: $160

China’s Digital Currency Expected to Be Released Soon

Jack Lee, the founding managing partner of HCM Capital, has said that China’s Central Bank Digital Currency is available and is expected to be released in 2-3 months.

In an interview with CNBC that aired on the 11th of November, Jack indicated that the People’s Bank of China will utilize the proposed asset in strengthening its oversight over cash flows.

Is the Chinese CBDC Available?
Jack said that the PBoC already monitors the movement of money through serial numbers on banknotes and that blockchain would make this process even more efficient. He also pointed out that China developed a Digital Currency Electronic payment system, which is a hybrid of the CBDC and uses the pre-existing payment and banking structure.

Jack said that the PBoC’s currency is available and will be released in 2 or 3 months. However, in a previous announcement by the PBoC, they said that the currency has no set a release date.

Governments Under Tension to Develop CBDCs
In another interview with CNBC on the 11thof November, Daniela Stoffel, the State Secretary for International Finance of Switzerland, said that China’s CBDC was not unexpected. When asked if the development from China was putting pressure on countries to do something similar, Daniela said that the pressure has always been there, explaining that nations are now realizing that developing a native digital currency is the next big agenda for global advancements.

Daniela went on to say that blockchain has its shortcomings and that money laundering problem has to be dealt with. She also proclaimed that authorities should foster the spirit of collaborating with startups more and guide them through uncertainties.

Some weeks ago, the Standing Committee of the NPCC has legislated a rule guiding cryptography which will become effective from the 1st of January and might create an entry for its CBDC.

Investors Are Optimistic as Price Movement on Litecoin (LTC) Becomes Interesting

Key Resistance levels: $90, $100, $110
Key Support Levels: $50, $40, $30

LTC/USD Long-term bias: Bullish
Litecoin tested the $50 support level in September and rebounded. The bears came again and tested the same support in October and rebounded. The support level is holding as the coin commences a bullish move. In November, the coin’s bullish move has been hampered by the resistance at $64. The bulls have tested the resistance twice but could not breakthrough. We expect a breakout at this resistance.

A breakout will push LTC to a high of $80. Likewise, another movement will propel the price to reach the $100 price level. However, it may not work out easily for the bulls. If the bulls fail to overcome the resistance, the price will retrace and retest the resistance level. On the other hand, the coin will fall and retest the $50 support level.

LTC/USD-Daily Chart

Daily Chart Indicators Reading:
Presently, Litecoin is in the overbought region but below the 80% range of the stochastic. This implies that the coin is in a bearish momentum. The LTC has a bullish crossover which means the coin will rise. Besides, the price breaks the downtrend line which also indicates that the selling pressure may have ended. This has been confirmed by the Fibonacci tool that the market will fall and reverse at the 1.272 extension level.

LTCUSD Medium-term bias: Bullish
On the 4- hour chart, Litecoin had its bearish impulse on September 24 and consolidated above the $52 support level. After a month of consolidation, the price fell again and found support at the $50 price level. The new support was held as price resumed a bullish movement to the previous highs. The upward move was interrupted as the price tested the $64 price level .

LTC/USD-4-Hour Chart

4-hour Chart Indicators Reading
Litecoin is now trading in an ascending channel. The coin will rise if the price breaks the resistance line and closes above it. Likewise, the coin may fall if the price breaks the support line and closes below it. The moving averages are trending northward indicating that price is rising,

General Outlook for Litecoin
The bulls have broken the downtrend line which is a positive move for Litecoin. The price action and Fibonacci tool have confirmed that the selling pressure is over. Litecoin is expected to rise if more buyers are introduced at the upper price levels.

Litecoin Trade Signal
Instrument: LTC/USD
Order: Buy
Entry price: $61
Stop: $50
Target: $80

Leading Metrics Used in Evaluation of Cryptocurrencies

Due to the reason that cryptocurrencies are in a different asset group than other securities and cannot be evaluated using methods like DCF or DDM, it was necessary to create separate valuation techniques to give investors fundamental tools to analyze cryptocurrencies.

Listed below are four prominent cryptocurrency valuation systems.

Store of Value Thesis
This is a method used in determining a cryptocurrency’s value by evaluating its ability to perform as a store of monetary value.

Let’s use gold as a safe-haven investment as an example. Gold is presently valued at $1,300 / ounce which puts the global gold bullion at $8 trillion. For Bitcoin to displace gold as a store of value, its gross value has to rise to $8 trillion. Considering that the total amount of coins is pegged at 21 million, one BTC will have to be valued at $380,000.
$8 trillion / 21 million BTC = $380,000 per one bitcoin.

Token Velocity
Token velocity is evaluated by dividing the gross amount of transactions of a coin by its average network value.
Token Velocity = Total Transaction Volume / Average Network Value.

Tokens with great velocity are prone to having small utility in their system. Consequently, this method helps investors in identifying platforms’ adoption rate and if it will help the system grow in value in the long haul.

Metcalfe’s Law
For this method, Daily Active Address is used to represent the number of daily connected users and the market cap represents the network’s value. Then, divide the market cap by the DAA² to get the Metcalfe’s Ratio.
MET Ratio = Market Cap/(Daily Active Address)².

This method is an efficient technique for evaluating the progress of a network by analyzing its daily user rate.

Network Value to Transactions Ratio
To evaluate the NVT Ratio for a token, get the market cap and divide by the most recent 24-hour trading volume. The result is what is known as the NVT Ratio. The result can then be utilized to grade one token against another.

NVT Ratio = Market Cap/Transaction Volumes. Consequently, a high NVT Ratio for a token translates into a high hypothetical value.

Tips On How Best to Handle Bitcoin Market Crashes

In a scenario where the price of Bitcoin is crashing, what would be the best reactions to take?

Below are a few things an investor can do to weather the storms of a market crash.

Maintain a Calm State of Mind
Trading Bitcoin mandates that one has a disciplined mind state, meaning that your emotions must be in check at all times. Allowing your emotions to cloud your judgment in unfavorable market conditions is never the best option and in most cases, ends in disappointment and regrets. What you should do instead is take a break, evaluate what is happening and make logical decisions.

Most times, it is best to do nothing rather than taking an action that might end up going against you.

Try Not to Obsess
Sitting in front of your screens all day is not going to change anything happening in the markets. Spending time making analysis and plotting charts is fine, but don’t waste hours obsessing over the predicament you might be facing. It is advisable to engage yourself with something more constructive.

However, if you still have to trade, select a limit order and move on to something else.

Do Not Lose Focus of the Main Aim
The fact that Bitcoin may be facing a crash at a time does not mean that the overall demand for Bitcoin is gone, it is usually just a temporary downturn. The crypto market possesses the most assorted investor base of any other sector, it is safe to say that the market will almost certainly bounce back.

Always adhere to your trading strategy. Do not let the current situation drive you to make drastic trading decisions only for the market to turn around days later, causing you further losses or opportunities.

The crypto market is an extremely erratic playing field and huge plunges and rallies are always expected.

Stellar (XLM) Rebounds And Continues Its Upward Move Above The Downtrend Line

Key Resistance levels: $0.09, $0.10, $0.11
Key Support Levels: $0.06, $0.05,$0.04

XLM/USD Long-term Trend: Bullish
Stellar has been struggling to break the $0.09 resistance level after price rebounded at the $0.06 support level. In September, the bulls attempted to breach the $0.09 resistance but the bulls suffered a setback as the coin dropped to the $0.06 support level. In November, the price tested the $0.09 resistance and it fell to the $0.07 support level. Today, Stellar is making an upward move to retest the $0.09 resistance level.

The market is rising and if the bulls succeed in overcoming the $0.09 resistance, XLM will rise and reach the $0.13 price level. However, if the bulls are overwhelmed at the resistance, the coin will fall or be compelled to a sideways move.

XLMUSD-Daily Chart

Daily Chart Indicators Reading:
The coin has broken the downtrend line after making a second attempt to breach it. However, the bulls are in control of price but the market trades below the $0.09 resistance level. The market has reversed at the 1.272 Fibonacci extension level as indicated by the tool.

XLM/USD Medium-term bias: Bullish
In November, the price is making a series of higher highs and higher lows as it moves up to test the $0.085 resistance level. The price fell to a low of $0.07 and resumed another bullish move.

XLMUSD-4-Hour Chart

4-hour Chart Indicators Reading
Stella is trading in an ascending channel as price makes a false breakout and falls back to the channel. Also, the market is trading in the bullish trend zone of the RSI period 14 level 66. This indicates the coin is rising.

General Outlook for Stellar
Stellar has recovered as it breaks the downtrend line. This implies that the bulls have an upper hand above the bears. The price of XLM is above the EMAs which indicates that the price is rising. However, if the price falls below the EMAs, this will portray a negative sign as the bears will resume selling pressure. Nevertheless, a sustained bullish momentum will propel the price to reach the previous highs.

Stellar Trade Signal
Instrument: XLM/USD
Order: Buy
Entry price: $0.077
Stop: $0.065
Target: $0.09

EOS Begins a Gradual Rally; Can It Reach the Resistance Level at $6?

Key Resistance Levels: $5, $6, $7
Key Support Levels: $3, $2,$1

EOS Price Long-term Trend: Bullish
EOS is in a bullish move but it is encountering penetration at the $3.70 price level. The market pulls back and continues to trade below $3.70. EOS has made concerted efforts at the resistance so as to move up the price ladder.

Previously, the bulls have successfully prevailed over the downtrend line as the coin moves up. Similarly, if the current resistance level is surmounted, the coin will move up again to either $4.60 or $5 price level. Nonetheless, if EOS fails to move up, the coin will fall and find support at $3.20.

EOSUSD - Daily Chart

Daily Chart Indicators Reading:
The RSI period 14 levels 58 signify that EOS is falling and approaching the sideways trend zone. EOS is at the point of a bullish crossover which means that EOS may rise. The downtrend line has already been broken as the market went up. It is unlikely for the selling pressure to resume and price fall below the downtrend line. If it does price may retrace to a low of $ 3.20.

EOS/USD Medium-term bias: Bullish
On the 4-hour chart, the EOS fell to a low of $2.60 in September and October to resume a bullish move. In September, the market went up but was resisted and it dropped to another low at $2.60.

At this low, a trend line is drawn to establish the level of price movement. The uptrend is said to be continuing if the price makes higher highs and higher lows. Nevertheless, if the market falls and breaks below the trend line, the uptrend is said to be ended.

EOSUSD- 4-Hour Chart

4-hour Chart Indicators Reading
EOS is below 40% of the stochastic indicator signifying that price is in a bearish momentum. The EMAs are trending upward suggesting that EOS is rising.

General Outlook for EOS
EOS is in a bullish market. At a low of $2.60 in September the bull market was short-lived as it was terminated at $3.20 price level. The bulls embarked on another bullish move in October but faced another resistance at $3.70 after breaking the initial resistance at $3.20.

As already indicated in the price analysis, EOS may move up, if it takes care of $3.70 price level. However, on the 4-hour chart, if EOS pulls back and breaks below the trend line, the market will drop again.

EOS Trade Signal
Instrument: EOSUSD
Order: Buy
Entry price: $3.40
Stop: $2.50
Target: $6.0

Hong Kong Amps up CBDC Studies

The Hong Kong Monetary Authority just disclosed that it is carrying out studies on developing a CBDC. This announcement came on the 7th of November in a news report.

Partnership with the PBoC
HKMA also disclosed that it is partnering with the digital currency department of the People’s Bank of China. The PBoC is expected by many to pioneer the drop of the world’s first CBDC.

The operation is being carried out in conjunction with Hong Kong Interbank Clearing Ltd. and 3 other financial establishments, and blockchain consortium R3.

In the report, the senior executive director, Edmund Lau broke down the operation. He stated that the operation involves a proof-of-concept analysis on coin-based CBDC, studies on debt securities allocation through the utilization of blockchain, an examination on the probability of CBDC’s payment policies and investigation into a probable two-tier allocation prototype, which could create the possibility for corporate representatives to own and utilize CBDC coins as endorsed parties of their establishments.

HKMA is said to be concentrated on using the CBDC solely for financial establishments as opposed to retail activities. They are particularly interested in local interbank payments and wholesale payments. Edmund said that there is already a lot of access to digital mobile payments products.

HKMA has also approved a memo of agreement with the bank of Thailand to carry out a collective study program into the use of a CBDC for border-to-border payments and interbank payment-versus-payment services between the nations in May.

What to Expect
Joe Lubin, CEO of ConsenSys has commented that he doesn’t believe that the PBoC will execute the decentralized facets of blockchain in its coming CBDC. He went on to say that the security will probably be used to sustain administrations’ management of cash flow and that the PBoC will utilize some of the old methods of blockchain.

Regardless, the Deputy Director of the PBoC, Mu Changchun said in August that the CBDC is going to be constructed to be a centralized, two-level operation, seeing the PBoC at the cap level and the succeeding level will be handled by local banks.

SEC Filing for 2019 Highlights Crypto-Related Cases

The United States Securities and Exchange Commission revealed that it has restricted securities trading of 271 providers and some digital assets in 2019. The SEC published its annual filing for 2019 on the 6th of November, noting that the amount of restrictions this year is just a little less than that of 2018 which was at 280.

Multiple Cases of Illicit Activities
The filing cites a case of a Nevada firm that falsely declared that it was in partnership with SEC-certified keeper for its cryptocurrency transactions and that it offered SEC-recognized tokens.

In another case, the SEC temporarily barred trading activities in Bitcoin Generation, a cryptocurrency exchange, based on suspicions over the precision and sufficiency of the information provided by the firm.

The SEC further procured 31 court orders to freeze assets over different wrongdoings in 2019, an increase from 26 last year. According to the filing, the agency fought against some digital asset providers for fraudulent acts and infringement of the rules proffered by the agency.

Still, in 2019, the agency filed its first charges for the illicit advertisement of cryptocurrency assets against two renowned celebrities; music creator DJ Khaled and world-class boxer Floyd Mayweather. However, the fining details were undisclosed.

The agency carried out a similar prosecution on an ICO grading website, ICO Rating, for not announcing that projects had provided funding for coverage. The agency finalized the matter by fining the website $269 million for infringing anti-touting requirements.

The SEC announced that they amassed more than $4 billion in penalties and fines in 2019 on 862 actions, declaring that close to $1.2 billion was reimbursed to affected investors.

The SEC Vs Veritaseum
According to a news article, the Chief Executive Officer of Veritaseum LLC and Veritaseum Inc., Reggie Middleton, was requested to pay $8.4 million in disgorgement by a court ruling. The reimbursement represents a portion of illicitly accrued profits and prejudgment interest of $500,000.

The case against Veritaseum was filed in August by the SEC claiming that the establishments carried out fraudulent and unlisted ICO from 2017 through 2018.