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The wave of demand for cryptocurrency is gaining momentum

04/09/2019
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The total capitalization of the cryptocurrency market reached $ 180 billion. Although it is much less than the historical maximum, it is no longer necessary to talk about the continuation of the downward trend. For 10 weeks, bullish sentiment dominated the market, and the price of Bitcoin has increased by 30% over this period. As a result, other tokens began to be in great demand.

Stablecoin trades above par

Because of the restrictions at the state level, the Chinese find it difficult to buy various cryptocurrencies, so they began to actively buy stablecoins. The country prohibits the activities of stock exchanges and the primary placement of tokens.

The Chinese government imposed severe restrictions in September 2017. As a result, in a few days, the price of bitcoin dropped from $ 19,000 to $ 13,000. However, a week later, it returned to the initial level.

Now there is a very unusual situation in the market of stablecoins. USDT dollar pegged coin sold for 7 yuan. Which is 0.3 yuan more than the USD / CNY market rate. However, this token allows you to bypass the restriction of the authorities on the purchase of cryptocurrency. The USDT daily turnover reached $ 12 billion. This is despite the fact that the entire issue of the coin is only $ 2.1 billion. That is, the asset is simply not enough for all buyers.

Stablecoin from Facebook

According to unofficial sources, Facebook is going to attract additional funding to issue its own cryptocurrency. It is looking for partners who are willing to invest in the project significant amounts. The total size of the attraction is $ 1 billion.

To run stable coin, you must create a reserve fund and place it on a deposit in a bank. In this case, users are guaranteed the safety of investments.

Facebook’s own free cash assets exceed $ 10 billion. But it needs it for other investment tasks. In addition, even this amount may not be large enough. The number of network users exceeds 2.3 billion accounts. If each of them acquires a dozen of new coins, the reserves will be exhausted.

It seems that Facebook is developing a model for attracting investment capital for this project. Indeed, on the growth of the cryptocurrency market, the interest of buyers may be too high. And the company seeks to stabilize the rate of its currency. To do this, it will be based on a set of the most liquid fiat coins.

Mining and uptrend

Most of the uptrend in the cryptocurrency market was expected by mining companies. Their leader Bitmain was in a difficult financial situation. A large amount of unsold equipment has accumulated in its warehouses, which made it necessary to make non-standard decisions.

Bitmain has placed 200,000 miners with Chinese users. This allowed it to run its farm in the regions with cheap electricity.

As planned, on April 9, Bitmain started the sales of a new generation of its devices. Antminer 17 series based on a 7nm chip is one third more efficient than its predecessors. The youngest model in the Antminer S17 line with 53 TX / s hash rate consumes only 2,860 watts.

The growth that showed cryptocurrency in the last two months, revived the industry. The news is about arousing interest in digital financial assets, and analysts are preparing for a multi-year rally. Some of them are sure that by 2023 BTC / USD will grow to $ 150,000.

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