Bitcoin leads the mainstream to rise, ETH and DeFi temporarily shut down
Today, the Nigerian central bank has banned bitcoin and other digital asset transactions across the board.
According to a Nigerian news publication, the Peoples Gazette, the Central Bank of Nigeria has banned bitcoin and other digital asset transactions and has issued a circular directing local banks to immediately close the accounts of those customers connected to cryptocurrency exchanges. .
This is a bit of a surprise, given that Nigeria regularly ranks first in the world for Google search interest in Bitcoin, and the official Nigerian government expressed an active interest in Bitcoin just a few months ago.
After the shocking decree issued by the Nigerian Securities and Exchange Commission in September 2020, digital assets are regarded as commodities and are regulated by the corresponding securities laws. At the time, the Securities Commission said its role was to regulate the new asset class, not hinder its adoption or innovation.
And as of November 2020, the Nigerian Ministry of Finance is working with the Abuja Securities and Exchange Commission (SEC) to “provide a regulatory environment for blockchain and digital assets.”
So it is quite surprising that it is banned at present.
According to the existing factors in the current market, the greatest probability is that in October 2020, a series of demonstrations began in Nigeria. Thousands of people took to the streets to protest against the brutality of the Nigerian police and called for the dissolution of SARS, so that The #endSARS topic is trending.
At the time, the CBN ordered the suspension of the bank accounts of supporters of the EndSARS movement, prompting people to turn to Bitcoin (BTC) and cryptocurrency donations, and several new crypto companies such as BuyCoins and Busha also donated Bitcoin to the cause.
And currently.
At present, Nigeria has directly banned Bitcoin and cryptocurrencies, and there is a high probability that it still does not want this "uncontrollable" factor to recur.
It can be seen from this that the more chaotic Bitcoin and cryptocurrency are in countries, the more they can be developed and popularized. To some extent, for these countries, Bitcoin and cryptocurrency are more like government authority. He opened his mouth.
Bitcoin and cryptocurrency transactions are also not allowed in our country, but the bigger reason is for anti-money laundering and transaction risks. Nigeria’s so-called prohibition of banks from providing services to cryptocurrency exchanges is difficult to implement. After all, most of our digital currency transactions are transfers between bank cards. There is no direct exchange between exchanges and banks. It is the same as the card breaking action, but the audit between different bank accounts is more stringent.
Early this morning, Grayscale founder Barry Silbert tweeted: "DCG (Greyscale parent company) is 100% committed to supporting LunoGlobal and its clients in Nigeria, and we are determined to ensure that all Nigerians continue to have access to Bitcoin and the financial freedom it provides. .”
It is not yet known what channels DCG will use to support all Nigerians to obtain Bitcoin, but we can see that the feature of Bitcoin as "freedom" is becoming more and more obvious and valued by people all over the world.
Bitcoin may be just a trading target for us at present, but for some small countries, it may be an important medium for them to avoid inflation and carry out anti-government activities. Generally speaking, some "Notre Dame" countries in the West Will support the citizens of these small countries to embrace such "freedom", but at the same time strictly guard against this freedom. Therefore, Bitcoin's desire to influence the world more depends on three factors: 1. Wall Street's trading assets, 2. , Black market money laundering channels. 3. "Currency freedom" for small countries.
Going back to the market, today’s market trend is still the same. After the market opened, it went straight up, but today it rushed higher. The highest point came directly to 39,660 US dollars, and then began to fall back. The range of the fall is relatively limited, and the lowest price is around 38,700 US dollars. , and then rose above $39,000. Today's market looks relatively strong.
There are less than two days left this week to close the weekly line. After last week’s bottoming out, recovery and shock, it closed in a shape close to the cross star, and ended the two-month continuous correction. At the end of the week, it started to pull the market directly. So far, it has risen from around 33,000 US dollars at the beginning of the week to above 39,000 US dollars. The increase has reached 18%, which is a veritable big positive line.
At the same time, we must also pay attention to a very real problem. The market rebounded more or less in the past two weeks, and the highest price was around 38,000 US dollars. After receiving the pressure from BoLL on the track, they all fell back, and this week While the market has broken through the highs of the previous two weeks, it is also about to hit the upper track of Boll. This has to make everyone feel a little bit worried about the joy of the rising market.
You can imagine that the current market has reached above 39,000 US dollars, and if it breaks upwards, it will be 40,000 US dollars or a new high. There is a considerable probability that it will happen, but for investors, even if it reaches 40,000 US dollars or a new high, how much room is there? ? In the same way, even if our small partners do not invest in Bitcoin, as long as the rise of Bitcoin drives the rise of other mainstream currencies, it can be seen from the flow of funds between ETH and BTC that one of the current rises may be attracting the other. Blood, for example, around nine o'clock last night, ETH rose, BTC fell, and today BTC soared, ETH fell again.
If you invest in mainstream currencies or DeFi concepts, the most hopeful thing is that Bitcoin can remain unchanged after a surge, rather than continue to rise, so that funds will eventually flow into the Bitcoin pool, so I suggest that everyone is still bullish Do not chase up.
ETH: Yesterday’s trend was very strong. At present, there are indeed reasons for ETH to be strong. After all, this week, after Grayscale resumed holdings, it only increased holdings of ETH wholeheartedly, and we can see that the environment for ETH’s rise is very specific, while Bitcoin’s fall If it is too strong, it will bring down the market sentiment. If Bitcoin is too strong, it will suck blood. Only the shock after the rise of Bitcoin is when ETH is at its strongest. Therefore, it is recommended that you pay a little attention to ETH after the strong rise of Bitcoin.
Other mainstream currencies mainly follow the rise of Bitcoin, which further shows that the current capital differentiation is severe, but it is not distributed to ETH. The reason is very simple. When a currency rises too much in a short period of time, especially mature currencies such as mainstream currencies , it is difficult to continue to rise. This part of the funds is also very clear. If it rises further, the price/performance ratio will not be high, so I will choose to find other currencies that are worth not to rise. When Bitcoin rises and fluctuates, other mainstream currencies rise more sharply That's the reason.
Other currencies, including Defi leading coins and Polkadot, which were relatively strong in the past two days, have fallen into a temporary correction today. They have risen too much in the past few days, and there will be some profit-making sell-offs, and the market will wither together , but it can also be seen that the current connection between ETH and these DeFi currencies is still the same sentence, when these currencies pull back, the deeper the pullback, the more everyone should seize the opportunity, and it is not deep enough yet.
