It has been another busy week in the cryptocurrency space but for those who are mostly keeping their eyes on the price of Bitcoin it has been a rather depressing one. The price of the coin has taken a turn and is dangerously close to falling back below the $10,000 and into the dire $9,000 range it was stuck in for so long in the second half of the year.
However, there has been some more excitement in the DeFi space as it continues to grow — but this growth is also showing signs of crackas as some of the projects are exposed as being very flimsy and quite dangerous. The hype around yield farming is one such reason why there is concern in this space.
There has also been some good news in the stablecoin front as this ecosystem also profits from DeFi with $100 million rolling into stablecoins each day, it has been reported. But, the governor of the Bank of England has also shared his thoughts on the stablecoin space and where Bitocin fits in.
Bitcoin breaking to $9,000
The world’s largest cryptocurrency endured a sharp drop this week after a strong rally that previously took it beyond $12K. BTC is currently changing hands at $10,200 after its drastic $2,000 correction that saw it momentarily touch lows of $9,990 on Friday morning.
To comprehend this latest price movement, you have to note that BTC is in an intense selloff as miners dump vast amounts of coins into the market.
Traders are now closely watching the $10.5K zone that has acted as strong macro support in recent months. A successful weekly close above this level could enable bulls to reclaim the crucial $11,000 support.
Despite the drop depicted in the BTCUSD chart below, some analysts and traders remain optimistic that the asset will rebound.
Members of the cryptocurrency community are also crying foul after the anonymous founder of Decentralized Finance platform Sushiswap sold off all of their $SUSHI tokens in what is being labelled as an exit scam.
Head of DTC Capital Spencer Noon shared a screenshot of the transaction on Twitter that shows that over 2.5 million $SUSHI tokens were swapped for just under 18000 ETH tokens:
The anonymous founder of Sushiswap, who goes by the alias of @NomiChef on Twitter has been active over the past few hours in an effort to allay concerns over the sale of $SUSHI tokens in their possession.
NomiChef’s first Tweet on Saturday looked to explain the process of the migration from Uniswap, which the anonymous creator claimed would necessitate converting all the $SUSHI tokens in the devpool:
Stablecoins in the minds
Looking towards the traditional spaces, the stablecoin market is at the centre of conversation with Bank of England governor Andrew Bailey firstly hitting out at Bitcoin’s suitability in the world of payments while unpacking the merits of using stablecoins and central bank digital currencies (CBDC) in the future.
“I will start with crypto-assets, such as Bitcoin, which have appeared in the last ten years or so. They have no connection at all to money. They may have extrinsic value – you may like to collect them for instance, and as such they are a highly risky investment opportunity. Their value can fluctuate quite wildly, unsurprisingly. They strike me as unsuited to the world of payments, where certainty of value matters,” Bailey said in his speech.