- After breaking USD 9,000 resistance, Bitcoin fell and is steadying above USD 8,600 on Sunday
- Bitcoin achieves an all-time high network hash power rate
- India’s Supreme Court is hearing the case of crypto vs the Reserve Bank of India
After breaking past USD 9,000 on Sunday with Bitcoin bulls raging across the resistance level, Bitcoin suddenly fell through in a pullback that has sent the rest of crypto markets tumbling. Selloffs in Europe from traders eager to keep in 15% profits from buying in just before price took above USD 8,000 resulted in an immediate falling off from a USD 9,100 cliff to the daily low of USD 8,512 (CoinDesk).
However, the good news is that the crash hasn’t sent prices tumbling even farther and does look like to be leveling at around USD 8,600 just several hours before the Americas take over. Altcoin markets reacted just as badly, with Ethereum dropping from about USD 175 to USD 164, but the hardest hit have been Bitcoin forks like Bitcoin Cash that fell over 11% to current levels below USD 330.
The positive sign from this is that a pullback has been expected and the fact that it hasn’t headed lower yet is sign that sellers won’t be able to stave off bull attacks for long more.
And long termers will care even less, given that Bitcoin has made yet another new record in terms of difficulty, with growing hash rate to the Bitcoin network hitting an all-time high. Fresh data from Glassnode, a resource that monitors the network, shows hat last week, mean value of computing power measured in hash rate hit 119 quintillion hashes per second. Bitcoin, this means, has never ever been so difficult to mine.
In the Bitcoin network, more computers are connecting to help validate transactions and ensure that the chain of blocks containing historical transactions can not be changed in terms of data. The more power there is securing the network, the more difficult it is to attack it. Bitcoin’s large hash rate is also seen as how attractive it can be for those mining it, since, even though it is expensive to purchase computing rigs powerful enough to mine Bitcoin, pay to maintain and operate it, the returns from fresh Bitcoin generated from finding new blocks is still more than enough to turn a profit.
Exact hash rate is virtually impossible to measure, but data from Glassnode is derived from one-day moving average calculations and is supported from data of other estimations. In any case, this is a huge growth from only 36 quintillion hashes per second less than a year ago in April 2019, meaning to say mining power has jumped more than three times in only eight months.
All this is converging with other factors, in other words, Bitcoin’s halving event due in about four months, where the rewards for finding new blocks will be halved — instantly cutting profitability by 50%. Many predict this will boost price to new levels and possibly lead to a Bitcoin bull run.
Meanwhile, a panel of three judges from India’s Supreme Court have reconvened to resume the much-followed case of Crypto vs RBI, after the last session in August 2019. The Reserve Bank of India (RBI) had last been asked by the court to clarify the reasons behind its country-wide banking ban on crypto. Observers had also been expecting to hear if the move had been unconstitutional.
The RBI has said it has the sole right to operate currency and credit system in the Country. It has exercised its right (Banking Ban) to secure the monetary stability. It also says, that RBI regulated entities were exposed to "reputational risks" by offering service to exchanges.
— Naimish Sanghvi (@ThatNaimish) January 15, 2020
RBI’s prohibition went ahead anyway, leading to petitions from both public and private avenues to be filed by a growing crypto community in India — who all believe that the move by the country’s central bank was outright unlawful.
RBI, naturally, disagrees. Its legal counsel contends that the bank has a mandate to operate currency and credit systems, while offering protection to India’s financial stability. Nevertheless, an ongoing petition by the non-profit Internet And Mobile Association of India (IAMAI) is being heard now in front of the Supreme Court.
IAMAI counsel Ashim Sood explained once more to the judges the basic underlying explanations of crytpo and blockchain, while reading out the guidelines issued in 2019 by the Financial Action Task Force. Indian crypto exchange DCX’s CEO Sumit Gupta reflected:
“On the question of anonymity with virtual currencies, he explained the strong KYC process practiced by various exchanges. He argued that, although the industry follows strict self-regulation, it cannot enforce them beyond a point, and hence highlighted the importance of positive regulation. He discussed that every new technology will have a grey side, however, positive regulations that curb the negatives are the need of the hour.”
RBI has yet to finish presenting its case and this is expected on Tuesday, but despite a seeming eagerness from the Supreme Court to learn more, it’s hard to tell which side of the case has made a more convincing argument.
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The post Trending Bitcoin News and Market Sentiment January 19th, 2020: Bitcoin ATH Difficulty, India Close to Crypto Decision appeared first on BitcoinNews.com.
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