Thanks for joining us for today’s Round Up. With the year-end rapidly approaching, it seems every day is jam-packed with headliners. This week is no exception, so we’ll jump right into things today.
Our first story today starts in Spain, where the Spanish Senate voted 262-0 in favour of launching a new fintech testbed for the country’s crypto and bitcoin sector. This testbed will allow companies to launch crypto-related projects. Furthermore, Madrid will now get to work on establishing a regulatory commission that will coordinate the so-called ‘sandbox’.
This commission will have the power to summon experts to give their opinion during deliberation. Also, it will be charged with creating and regulating protocols and standards – as well as evaluating the progress of testbed projects. The sandbox’s approval marks a significant step forward for Spain’s growing crypto and fintech sectors, who first began campaigning for a testbed back in 2017. Once again, we see the continuing trend of governments adopting and building around digital money, instead of fighting or downright outlawing it.
Our next story of the day is another one that revolves around governments and cryptocurrency - this time in the United States. According to recent reports, the US government is suing for the forfeiture of thousands of bitcoins, totalling more than $1 billion, that it seized on Tuesday.
The US Department of Justice has said these Bitcoins are linked to the Silk Road marketplace, and the address holding the Bitcoins has been dormant since 2015 when the coins were last transferred to the now-defunct crypto exchange BTC-e.
According to Bloomberg, authorities seized the Bitcoin from an unknown hacker who had gained access to the address, and are now likely to be auctioned, reintroducing them to the market supply. Near equivalent amounts of Bitcoin Gold, Bitcoin SV and Bitcoin Cash were also recovered from the address during this seizure. Since they will likely be privately auctioned, it’s unlikely that it will have a sizable impact on the market. Nevertheless, traders and investors should keep being mindful of the auction itself, as this would imply investors with size would be willing to cough up more than $1 billion cumulatively.
Closing out this weekly edition of Overbit’s Round Up, we’re going to cover traditional markets, and more specifically Forex Markets. Starting with a broad overview, we see the Euro acting like the weakest. The Euro is being subverted at this moment by the persistent and looming threat of a “second wave” of CoronaVirus cases across Europe. In addition to Covid-19, Brexit talks are still lingering throughout the continent, without much resolve. Both sides, the UK and the EU, are in a proverbial stalemate while they both do their best to navigate this uncharted territory. This uncharted territory does not leave investors with much confidence, so while there was a generally festive mood across the board, we also have seen GBP/USD dropped from 1.33 to 1.32 on the backs of these Covid and Brexit themes.
Closing out, we still see some uneasiness in markets affected by the US presidential election, as mentions of recounts in important states continue to drag out through the local, state, and federal courts of the United States. This transition period between now and January 21st will probably make markets generally volatile, but we can’t be sure. We are leading to our final statement of the day - Gold. XAU/USD continued to remain stable, but we’re not seeing a large buy-side of Gold right now as it continues to trade in the $1,860 price zone.
This stability of Gold, while could be viewed as a great thing, in relation to its newer, and more maybe even shiner, friend, Bitcoin, it’s been a pretty dull Gold cycle, in comparison, besides breaking its all-time high earlier this year at $2000.
All in all, it appears that markets are seeking a new calibration across the world, and while we hope for some more market clarity in 2021, either way, Overbit.com has you covered.