Analysts believe Bitcoin price rally may continue beyond $16,000. As factors for the rally to continue analysts pointed out unmoved supply, lower Bitcoin exchange reserves, a rise in “stronger hands,” and unrealized profits. The number of BTC held on exchanges drops. Since Feb. 11, Bitcoin exchange reserves dropped from 2.96 million to 2.41 million. In dollar terms, a drop of 550,000 BTC is equivalent to $6.36 billion. “This current trend has seen a divergence between BTC stock and price, which suggests a more sustainable move upwards for $BTC,” Delph’s analyst Paul Burlage said. Falling Bitcoin exchange reserves is an optimistic occurance because it means fewer sellers are depositing BTC to exchanges. Bitcoin price reaches the highest level since January 2018. Altcoins demonstrate similar bullish dynamics: Ethereum rose in price by 7% (to $ 411), Bitcoin Cash — by 6% (to $ 248), and Ripple — by 4% (to $ 0.24). At the same time, the total cryptocurrency marketcap increased by almost 6% — to $ 421 billion. The crypto community are hoping that if Democrats come into power, then the approach to regulating cryptocurrencies would be more positive.
Brazil’s Economy Minister Paulo Guedes has confirmed plans of launching a central bank digital currency (CBDC). During a ceremony devoted to opening of the 100 millionth savings account in Caixa Economica Federal, the economy minister revealed that Brazil would have its own digital currency. It is expected the CBDC to be in circulation by the year 2022. According to the central bank’s statement, it will only be used for foreign exchange transactions in and out of the country as for digital real. Central banks across many countries are currently exploring CBDCs, and many of them have progressed quite far. As previously reported, several major national banks, including the Bank of Japan, the Philippines’ central bank, are working on a CBDC. As previously reported, the European Central Bank has unveiled plans to launch a digital version of the Euro, according to the Bloomberg report. The pilot will start on Oct. 12 and be held along with a public consultation. It is expected ECB will end the experiment in mid-2021after which they could decide on the digital euro issue. The People’s Bank of China is about to issue its national digital currency, dubbed DCEP. The news comes amid China steadily accelerating the pace of its blockchain adoption.