From linking the Evergrande debacle to crypto by leaking stories tying Tether to its liabilities, to making all crypto transactions illegal, China has really thrown the kitchen sink at the market this year. Regardless of how positive one can get over the massive change the decentralised financial ecosystem can bring to the global economy - governments' negative sentiment will take its toll on the market.
After the knee-jerk reaction where the market crashed we experience a quick recovery in the hope that the market can brush aside this negative sentiment. However, without any overwhelming positive changes in the market, prices will tend to drift slowly lower until the next reality check reminds us of the difficulties facing global central banks. In contrast, the development and shipping of new decentralised applications, NFT's, platforms, high speed networks, security improvements and much more continues regardless. As Elon Musk so rightly put it: "Crypto is impossible to destroy".
Decentralised exchanges saw massive increases in volumes and with it native platform token price increases in the wake of the latest Chinese announcements as these platforms cater to a population desperate to remain involved in the global Crypto movement despite its government's decisions.
Conversely, Europe was the leading capital contributor to Crypto contributor over the past year to June 2021 making up 25% of the total global contributions showing its intent to continue financing growth within the ecosystem.
Europe has also become a hotbed for institutional investing, with transactions values in this category growing to $46.3 billion in June 2021 compared with just $1.4 billion in July 2020. Perhaps surprisingly, the United Kingdom is the single largest crypto economy in the region at $170 billion worth of transactions. Nearly half, or 49%, of the value was sent via DeFi protocols.
Bitcoin Technical Outlook:
The Bitcoin price has been drifting lower since it failed at resistance levels ($47.5-48.5k). Furthermore, the price struggled to hold the all important $42.5k support level and with it we may move back to the $38.5-39.5k levels over the next week or so before next stronger move higher in this bull market and likely retesting of those $42.5k and $48.5k levels.