Crypto markets have remained in consolidation for the past 24 hours, having slight declines. Very little movement has occurred on most of the majors as Bitcoin edged lower, but Litecoin climbed by as much as 4.5%.
Bitcoin peaked at 9,250 USD yesterday in another attempt to conquer new year-to-date high but failed to hold that level, falling below 9,000 USD for a while before returning back above the key support. As of 07:05 a.m. ET, the world’s largest cryptocurrency is traded at 9,139 USD.
With heavy resistance above 9,500 USD and a new support zone at 8,700 USD, the Bitcoin could consolidate here for a while.
Crypto market recap
The cryptocurrency market is mostly into the red today, but corrections are relatively small. Bitcoin is down by 0.8%, while Ethereum and Ripple’s XRP wiped out 0.5% and 1.5%, respectively.
At the same time, Litecoin edged higher by 4.5% to 137.70 USD, after Litecoin Foundation has teamed up with Bibox Exchange and Ternio to release a special edition Litecoin debit card. The BlockCard will enable users to spend crypto online or in physical stores anywhere that major credit cards are accepted. The debit card will be released in the US first before it is made available to other markets. Thus, the cryptocurrency headed up towards 145 USD target, which possibly will be reached at the next impulse on the cryptomarket.
Binance Coin is another winner today, gaining 1.5% to 35.19 USD. Binance will issue a number of tokens pegged to leading cryptocurrencies on Binance Chain to boost the number of trading options on its platform. The tokens are also likely to be extended to Binance DEX, the firm’s recently launched decentralized exchange, as they create the potential to in effect move cryptos from different blockchains onto its network. The company said in a blog post that it expects to release the first such token – one pegged to bitcoin and to be listed as BTCB – in the coming days.
Monero and TRON are also into the green, adding 2.1% and 1.3%.
The worse performing cryptocurrencies today were UNUS SED LEO and Stellar, which are down by 3.5% and 2%.
The total cryptocurrency market value is 286.403 billion USD.
Facebook’s cryptocurrency Libra
The recent movement of the cryptocurrency market comes amid the release of Facebook’s stable coin called Libra.
The Libra cryptocurrency is a stablecoin as it is tied to a basket of fiat currencies and securities. So it requires a lot of oversight to make sure that every time the Libra Association mints a Libra, they buy and store the equivalent in fiat currencies and securities in a bank account.
Every time someone converts Libra into, say, USD, the Libra Association has to issue a selling order on the equivalent in fiat currencies and securities. That’s why the Libra Association will work with a list of authorized resellers. It creates a barrier to entry and transforms the Libra Association into a regulatory body for the Libra ecosystem.
Facebook aims to use the cryptocurrency for money transfers within its apps. Thus, the cryptocurrency will get high popularity for short time and user-friendly transactions and conversion possibly will make it among the most popular digital coins.
The Libra blockchain is designed like a true blockchain with a Byzantine Fault Tolerance approach, the use of Merkle trees to guarantee the integrity and a network of nodes.
And yet, unlike popular blockchains, such as the bitcoin blockchain or the Ethereum blockchain, you won’t be able to run a node in your backyard. Only founding members of the Libra Association will be able to run a node. There are currently 28 members, such as Vodafone, Mastercard, Visa, Stripe, Uber and Spotify.
It’s not truly decentralized. Libra is not truly open as the ledger of transactions will be accessible to Libra Association founding members exclusively — unless Facebook or another founding member builds a public-facing API of some sort.