Chain data shows investors have been gobbling up BTC since its value slipped below AU42.5,000 (US$30,000) last week
- The past two weeks have seen the total crypto market cap drop by more than 40%.
- Miguel Albuquerque, the president of Madeira, expressed his unequivocal support for BTC at the recently concluded Bitcoin 2022 conference in Miami.
- Members of the G7 policy forum will discuss crypto regulation at their meeting next week.
Bitcoin is showing increasing signs of stability, with the asset remaining between AU$40,500 and AU$44,000 since May 13. BTC is down -25% over the past month while currently trading at AU$42,709.
The reduced volatility suggests that the dust surrounding the Terra (Luna) collapse may finally be settling. The destruction of Luna and TerraUSD (UST) last week saw the price of both currencies reduced to less than a penny. The total capitalization of the digital asset sector has fallen by more than 40% in the last 14 days.
With BTC falling to a relatively low AU$38,000 (US$26,700) on May 12 — its lowest levels in more than 24 months — on-chain data suggests the price target represented a good starting point. entrance for investors. This also signaled a retest of the currency’s 200-week exponential moving average (EMA), a metric that has historically been used as an indicator for measuring “local price lows”, i.e. the price traded the lowest of an asset.
Since dropping below the AU$42,500 (US$30,000) mark, data released by blockchain analytics provider Glassnode shows that crypto investors have been accumulating BTC at a rapid rate. However, these purchases may not be able to help forge a trend reversal for the digital currency, experts believe.
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The Portuguese archipelago of Madeira adopts Bitcoin
At the recently concluded Bitcoin 2022 conference in Miami, Miguel Albuquerque, the president of Madeira, proclaimed his full support for Bitcoin. As part of his keynote, he noted that his team was working to “create a fantastic environment for Bitcoin.”
Following the announcement, several media outlets reported that Madeira had adopted Bitcoin as legal tender. However, André Loja, an entrepreneur from Madeira who led the project to bring BTC to the archipelago, noted that this was not exactly the case, adding:
“We’re adopting it, we’re supporting it. We’re not adopting bitcoin because the adoption makes it look like we’re making it legal tender when it’s already de facto legal.”
The next G7 conference will have crypto as its main discussion agenda
Central bank governors and finance chiefs associated with the G7, a political forum made up of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, would seek to discuss crypto regulation at their meeting next week.
The issue took center stage after many stablecoins recently lost their ties to the US dollar, with Banque de France Governor François Villeroy de Galhau noting, “Crypto-assets could disrupt the financial system. internationally if they are not consistently regulated, supervised and interoperable. and appropriately in all jurisdictions. »
Interested in cryptocurrency? Learn more about the basics with our beginner’s guide to Bitcoin, dive deeper by learning about Ethereum, and see what blockchain can do with our simple guide to DeFi.
Disclosure: The author owns a range of cryptocurrencies at the time of writing
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