ZB Academy:Bitcoin price starts to pull back

Yesterday (22nd), Bitcoin suffered a significant decline, I believe many people are sweating. In the early hours of this morning, the price of Bitcoin was very upbeat and completed a surprising climb. As of press time, according to ZB.com’s official market data, Bitcoin is currently reported at $23,993.76, a 24-hour increase of 6.41%, and the highest 24-hour price is $24,009.73.

Let’s take a look at the developments of various countries.

On the 21st, a Puerto Rican bank FV Bank (FinTech Ventures Bank) announced that it has obtained a license from Puerto Rico OCIF to provide custodial services for BTC, ETH, EOS and many ERC-20 tokens. Banks such as DBS, BBVA and Standard Chartered have all recently announced that they will provide digital asset services. The announcements are all at the right time, that is, the price of Bitcoin has reached the highest level in history. Earlier this year, the OCC (Office of the Comptroller of the Currency) issued an announcement allowing Bank of America to take over digital assets. This provides opportunities for companies such as FV Bank. FV Bank is a flexible and innovative company that was originally established to provide U.S. banking services to financial technology companies.

On the 22nd, the Italian Banking Association (ABI, Italian Banking Association) announced that it has begun trials of a digital euro based on distributed ledger technology. ABI is composed of more than 700 Italian banking institutions. It said on the 22nd that this work will study the technical feasibility of the digital euro and further study the “new value-added services” that are possible due to the programmable nature of the technology. ABI stated in its statement that “the purpose of this plan is to actively promote public debate and help banks operating in Italy prepare for the coming future”. The experimental plan will be divided into two parts, one will focus on infrastructure and distribution models to evaluate technical feasibility; the other will evaluate how programmability provides use cases to distinguish the central bank’s digital currency from existing electronic payment systems.

Also on the 22nd, Bank of Russia issued a statement that the digital ruble will not harm the banking industry. Earlier this month, the Bank of Russia warned the Bank of Russia that it could harm their interests if they used funds to invest in the new digital ruble system under discussion. Sber, Russia’s largest retail bank, said that introducing the digital ruble into Russia’s financial system could cost the country’s banks as much as 25 billion rubles (about 34 million U.S. dollars). Sber is also currently the most outspoken critic of central bank digital currency (CBDC) practices. But Bank of Russia President Elvira Nabiullina expressed disapproval of these concerns at a press conference on Friday.

Commercial companies are basically focusing on Grayscale and Skybridge.

According to previous reports, strategists at JPMorgan stated that if the inflow of funds to the Grayscale Bitcoin Trust slows significantly, the possibility of a Bitcoin correction will increase. According to Bloomberg on Monday, the quantitative strategist of the bank led by Nikolaos Panigirtzoglou issued a report. The report shows that such a reduction in the funds flowing into the largest bitcoin fund will increase the possibility of a price correction similar to the one that occurred in the second half of 2019. The strategist said that the inflow of bitcoin from digital asset management companies was “too great for momentum traders to close any trades, resulting in continued negative price dynamics.”

In the early hours of this morning, Anthony Scaramucci stated that his hedge fund Skybridge has invested $25 million in Fidelity Digital Assets. He said that Fidelity Digital Assets is the “backend” and “storage mechanism” of Bitcoin. Scaramucci further claimed that Skybridge is running a full Bitcoin node and believes that his fund structure will enable investors to withstand the net asset value of Bitcoin while avoiding the premium withdrawn by the Grayscale Bitcoin Trust (GBTC). “This will be a way for us to popularize Bitcoin, just like we did in the hedge fund industry 10 years ago.”

About ZB Group

ZB Group was founded in 2012 with the goal of providing leadership to the blockchain development space and today manages a network that includes digital assets exchanges, wallets, capital ventures, research institutes, and media. The Group’s flagship platform is ZB.com, the industry leading digital asset exchange. The platform launched in early 2013 and boasts one of the world’s largest trading communities.

ZB Group also includes ZBG the innovative crypto trading platform, and BW.com, the world’s first mining-pool based exchange. Other holdings include wallet leader BitBank.

Industry intelligence and standards are headed by the recently launched ZB Nexus who embody the core values of ZB Group and open-source their reports and analysis for the public.

Learn more about ZB Group by visiting www.zb.com.