The first cryptocurrency saw sharp fluctuations last week. The updated Terra blockchain continues to draw increased attention. Litecoin developers implemented the MimbleWimble Extension Blocks protocol. The long-awaited merge of two PoW and PoS networks in the Ethereum ecosystem. CoinsPaid Media has prepared for you a selection of the most significant market events that happened from June 3 to 10.
Bitcoin (BTC) Volatility Rising
Over the past seven days, the first cryptocurrency’s price remained primarily unchanged, but in the process, its fluctuations caused market participants to worry.
By the end of last Friday, June 3, the value of the first cryptocurrency was growing uncertainly above $29,500 ($29,662), given the drop of almost a thousand dollars during the day. There were no particular fluctuations on the weekend, and by the end of Sunday, Bitcoin was around $30,000 ($30,015). But by Monday morning, the quotes flew up sharply, reaching a peak above $31,500 ($31,689), and then fell steeply. So by the beginning of Tuesday, BTC dropped below $29,500 ($29,331), but by the end of Tuesday, the price returned to around $31,500 ($31,360). On Wednesday, the rate somewhat stabilized, and fluctuations around $30,000 didn’t exceed $700. The situation was the same on Thursday. By Friday morning, June 10, the first cryptocurrency is trading at around $30,000, though its price continues to jump around the $500 range.
Pressure Factors on Bitcoin (BTC)
Regulators’ actions are still exerting pressure on BTC. For example, the fall on Tuesday was provoked by the bill’s introduction to the U.S. Senate to create a regulatory framework and redistribute regulatory functions between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). More locally relevant news, such as IRA Financial Trust’s lawsuit against cryptocurrency exchange Gemini, which was filed the day before, is also affecting the rate.
Good news comes out regularly regarding investor and user interest in cryptocurrencies, but it’s offset by the fact that the first cryptocurrency and the entire market fluctuate in the fairway of the largest U.S. market indexes. The latter are pressured by macroeconomic factors and international tensions.
Technical indicators also show that the cryptocurrency market is bearish. According to analysts, the price of BTC in the short term will vary from $28,000 to $32,000.
Rumors Around Terra (LUNA)
The updated Terra project and its token LUNA continue to garner the crypto community’s attention. So, an insider, hiding on Twitter under the pseudonym FatMan, clearly demonstrated that Do Kwon and his affiliate Terraform Labs own 42 million LUNA, which at current exchange rates exceeds $200 million. FatMan disclosed five “shadow” wallets where the funds are stored, noting that there may be many other accounts. So the renewed Terra network nominally belongs to the community, but Do Kwon left the opportunity to manipulate it.
Traders express a very concrete attitude to the project, opening short positions for the most part. The sudden rise in the asset’s price from $2 to $3.5 led to the liquidation of $4 million worth of such positions on Binance and Bybit. Still, even that didn’t change the overall mood, and traders continued to open short positions. This is most likely influenced by the investigations conducted simultaneously against Terraform Labs and its projects by the tax, police and prosecutor’s offices of South Korea, as well as the U.S. Securities Commission.
Litecoin Anonymity
Not so long ago, the MimbleWimble Extension Blocks protocol was successfully incorporated into Litecoin, which allows hiding transaction data, increasing the degree of anonymity for LTC users. This initiative wasn’t appreciated by South Korean trading platforms, particularly by Upbit and Bithumb, the largest ones, which have already warned users about the cryptocurrency’s imminent delisting. Local legislation is highly restrictive on the crypto sector, while greater confidentiality prevents compliance with anti-money laundering (AML) regulations. We can state that the South Korean crypto community is as plain as the nose on your face.
Ethereum’s Next Step Toward PoS
The Ethereum development team has successfully migrated the Ropsten testnet to the Proof-of-Stake (PoS) consensus algorithm, as reported by Ethereum Lead Developer Tim Beiko. The first transactions are already included in the updated testnet. After the merge, issues were discovered with the validators offering new blocks. Some users have also reported unsynchronized nodes on the Nethermind client. Developers are investigating each incident and promise to share details soon.
PayPal and Cryptocurrencies
PayPal payment company has opened up the ability to transfer cryptocurrencies between accounts, as well as withdraw them to third-party wallets. The ability to make internal transactions of Bitcoin, Ethereum, Litecoin and Bitcoin Cash is still accessible to a limited number of users from the U.S., but it’s planned to be implemented for all American users in the coming weeks.
Real Estate for Cryptocurrency
Meanwhile, in Ukraine, DIM Group has offered customers the opportunity to buy real estate for stablecoins in all residential complexes the group provides. So far, it accepts USDC, USDT, BUSD and DAI, but the list will gradually expand. Authorized agents execute sales contracts according to the current legislation of Ukraine. In the future, the developer plans to move to a Web 3.0 ecosystem to record all transactions in the blockchain, use smart contracts in their work and issue agreements on the right of ownership in the NFT format.
Boom and Adoption of NFTs
A recent study by The Economist found that NFTs are the most trusted among cryptocurrency assets. Individual examples also attest to this.
For instance, British actor Anthony Hopkins changed his Twitter username to his own domain in Ethereum Name Service and asked his colleagues for advice on his first NFT purchase. According to Etherscan, the 84-year-old actor bought the domain name associated with the Ethereum wallet on May 5. No one from his colleagues had any good advice, but non-celebrity users eagerly responded to the question and began actively sending NFTs as gifts to the actor’s address.
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