Home Business News Key events in the cryptocurrency market: Signs supporting an upward trend

Key events in the cryptocurrency market: Signs supporting an upward trend

21st Sep 23 12:37 pm

The price of Bitcoin, the largest global cryptocurrency, began trading today on Thursday, stabilising near the $27,059 level and was not affected by the Federal Reserve’s decision yesterday in any way.

However, the crypto market received some positive news, with the most significant event in the market today being the extension of the deadline for settling the debts of the troubled Mt.Gox company for a year, setting the final deadline on October 31, 2024.

Additionally, PayPal launched its PYUSD service on Venmo starting on September 20 and will roll it out to all users in the coming weeks. CoinEx also rebuilt its wallet security system after a breach and the theft of $70 million, and it is scheduled to resume deposit and withdrawal operations for specific cryptocurrencies thereafter.

In an official decision this morning from a Tokyo court, the final deadline for settling the debts of the troubled Mt.Gox exchange was extended from October 31, 2023, to October 31, 2024. Mt. Gox holds approximately 142,000 Bitcoin (BTC), 143,000 Bitcoin Cash (BCH), and 69 billion Japanese yen.

It was one of the oldest cryptocurrency exchange platforms, facilitating over 70% of all transactions within the blockchain system. However, after a major breach in 2011, the exchange collapsed in 2014 due to financial insolvency, affecting around 24,000 creditor clients and resulting in the loss of 850,000 Bitcoin.

Such a decision is believed to support the positive outlook for the cryptocurrency market, as not taking disciplinary actions against troubled cryptocurrency exchanges is, in itself, a boost to market credibility.

Yesterday, PayPal announced the immediate availability of its stablecoin PYUSD on the Venmo platform and confirmed that its full launch will occur in the coming weeks. PYUSD is already available on selected exchanges, including Crypto.com, Bitstamp, Coinbase, and Kraken.

The market’s response to PayPal’s collaboration with X (formerly Twitter) was uniformly positive, and I believe this move will be a driving force for the crypto markets in the medium and long term. It is possible that the price of Bitcoin could support an uptrend toward testing the stubborn resistance level of $30,000 during the remaining days of the current September.

Furthermore, the cryptocurrency exchange CoinEx is set to resume deposit and withdrawal operations for its users after more than a week since the breach of its wallet keys, resulting in a loss of $70 million. The exchange announced this morning its priority to build and deploy a new wallet system to facilitate withdrawal and deposit activities using blockchain for 737 distinct tokens it previously offered to clients before the mentioned hacking incident.

The exchange emphasizes that it has implemented a 100% asset reserve policy to protect users from potential security threats. Following the hacking incident, it also stated that users’ assets were unaffected, and CoinEx’s User Asset Security Fund would cover any financial losses.

In my opinion, this is a positive leap in the cryptocurrency market and a source of increased confidence and security for investing in these assets. This news is expected to have a positive impact and support the rise in Bitcoin prices, which lead to the movement of other cryptocurrencies in the medium and long term.

However, the only challenge remaining for the rise of cryptocurrencies, led by Bitcoin, is the U.S. laws and regulations regarding market regulation, with anticipation for any signs of the approval of major companies’ requests for Bitcoin ETF trading funds.

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