CoinLoan Weekly: Crypto Volatility Strikes Again
Last week for Bitcoin was quite a ride: in the first half of the week, BTC fluctuated between $34,544 and $31,823 and experienced growth closer to the weekend, reaching $32,399 on Sunday. On July 20 BTC dropped below $30,000, reaching $29,393. As of July 21, BTC price returned to the previous level and now is $31,416, according to CoinMarketCap.
Monitor your BTC funds used for Crypto backed Loans.
The second cryptocurrency, Ethereum, was much more volatile than Bitcoin, dropping to $2,150 on Monday and falling further to $1,876 on Wednesday. ETH began this week at a mark of $1,872, with a market dominance of 17.13%. On July 21, at the time of writing, ETH is $1,899.
You can now buy Ethereum at a competitive rate.
BTC Mining Difficulty Eased
According to BTC.com, on July 18, BTC's mining difficulty dropped by 4.8% to $13.67T. This is the lowest rate since June 2020 and the fourth case of difficulty falling.
It is a result of China’s crypto ban, as 90% of mining capacity was shut down. What does the mining difficulty drop mean? Essentially, the remaining miners can get a bigger reward. It also means that there are less competitors, and as the mining difficulty decreases, miners can boost their income.
Digital Yuan's First White Paper
The group developing digital yuan for People's Bank of China has published the project's first white paper. So far, more than 20M digital yuan wallets have been created with $5.4B (35.5B yuan) settled on the e-CNY. China's CBDC utilizes smart contracts and decision-based transactions. However, unlike its fiat counterpart, digital yuan holders won’t be able to receive interest on their coins.
The digital yuan has two sides. While e-CNY progress could attract more people to the crypto community, China’s CBDC can steal focus from other cryptocurrencies, mainly BTC, potentially shifting Bitcoin liquidity into e-CNY.
Use stable coins to earn interest during market uncertainty.
Stay tuned for the upcoming news!