Visa accepts stable currency settlement, helping Bitcoin go straight to $58,000

Facts have proved that Bitcoin has a strong resilience to the recent instability of the traditional market. It briefly exceeded $58,000 on Monday, which was much higher than the low of about $50,000 last week. Currently maintained above 57,000 US dollars.

This has also caused the 90-day correlation between Bitcoin and the US S&P 500 Index to drop to zero. For most of last year, the correlation between Bitcoin and the S&P 500 index was slightly synchronized, causing opponents of Bitcoin to question Bitcoin's decentralized investment function.

Due to some panic caused by the clearance sale of some stocks last Friday, one wonders whether Bitcoin will be affected. Annabelle Huang, a partner of the Hong Kong market maker Amber Group, said: “We are still receiving reports on the continued liquidation of major brokers.” “But from an encryption-centric perspective, we have observed that in the past four In the past month, 2.088 million bitcoins (worth 11.05 billion U.S. dollars) were withdrawn from Coinbase, which is a bullish sign for the bitcoin and cryptocurrency markets."

Digital asset data company TradeBlock wrote in its weekly newsletter on Monday: "This week, the outflow of funds from exchanges has increased, which indicates that market participants are transferring encrypted assets into cold storage or private custody." The custody of private wallets usually indicates A long-term holding model.

In addition, after payment giant Visa announced its support for USDC, the second largest stablecoin pegged to the U.S. dollar, the price of Bitcoin was once again boosted. Visa said it has launched a pilot project with payment and encryption platform Crypto.com and plans to provide this option to more partners later this year. Cuy Sheffield, Head of Cryptocurrency at Visa, said: "We are seeing an increasing demand from consumers around the world to be able to access, hold and use digital currencies, and we also see our customers' demand for products that can provide consumers with this kind of access. "Traditionally, if a customer chooses to use the Crypto.com Visa card to pay for a cup of coffee, the digital currency in the cryptocurrency wallet needs to be converted into traditional currency, and then the cryptocurrency wallet will deposit the traditional legal currency into the bank account at the end of the day Wire transfer to Visa to settle any transaction, which increases the cost and complexity of the business. Visa's latest move will use the Ethereum blockchain, eliminating the need to convert digital currencies into traditional currencies for transaction settlement.

However, a new report by CoinShares, a digital asset investment company, shows that in the 7-day period ending March 26, the inflow of funds into digital asset investment products decreased by approximately $79 million to $21 million, the lowest level since October last year . The slowdown in investor interest in cryptocurrency funds reflects the sideways movement of Bitcoin in the past week. CoinShares wrote in the report: "In recent weeks, investor interest in digital assets has weakened because volatility remains high and prices are trading sideways." The report stated: "We have recently witnessed larger scales and longer establishment times. The capital inflows of investment products established before 2016 have fallen sharply, and in some cases there have been outflows." "We believe that this is because investors have been sitting on profit for many years." Investment flows in the United States are slowing. , While investment flows in Europe and Canada continue to remain strong. The trading volume of digital asset investment products fell to 788 million U.S. dollars per day last week, while the average daily transaction volume so far in 2021 is 900 million U.S. dollars. Among them, Bitcoin has the most inflow of funds, "but Ethereum is still more popular on the basis of market capitalization (as we have seen in the previous few weeks), with an inflow of $5 million."

The Canadian securities regulator, which has been at the forefront of Bitcoin regulation, has issued guidelines for the regulation of crypto asset trading platforms. The Canadian Securities Regulatory Agency (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) issued notices outlining these requirements. It provides guidance for platforms that trade encrypted assets, which can be securities or derivatives, or contractual rights or claims against underlying encrypted assets (such as Bitcoin). The regulator did not introduce new rules specifically applicable to crypto asset trading platforms, but provided guidance on how to adjust existing rules. Prior to this, a consultation paper was published in 2019, outlining the proposed regulatory framework and seeking comments. CSA and IIROC stated that they received 52 comment letters on the paper and consulted industry stakeholders. CSA Chairman and President and Chief Executive Officer of the Financial Market Regulatory Authority, Louis Morisset, said: "The guiding principles in our notice detail the steps that platform operators need to take to comply with securities regulations when preparing to fully integrate into the Canadian regulatory structure." Its operation is in compliance with regulations, and the encrypted asset trading platform should immediately contact the local securities regulatory authority to discuss registration procedures and applicable regulations."

The Vancouver financial technology company Mogo, which is listed in Canada and the United States, has launched a new project. If members apply for a new mortgage or refinance an existing mortgage, they have the opportunity to earn cash and buy bitcoin with a reward account. . The cashback reward program now includes "MogoMortgage" and will give users up to 3100 Canadian dollars (2461 US dollars) cash back rewards. The reward is distributed to the customer's account in the form of U.S. dollars, allowing the customer to purchase Bitcoin through the MogoCrypto program in the Mogo application. David Feller, CEO of Mogo said: "Considering the volatility and speculative nature of Bitcoin, more and more Canadians are looking for ways to not let their own money take risks to participate. Our Bitcoin reward program satisfies To meet this demand.” Mogo was founded in 2003 and made an initial public offering on the Toronto Stock Exchange in June 2015, with a market value of more than 500 million Canadian dollars. In February of this year, Mogo also announced that it would acquire a 19.99% stake in Canadian cryptocurrency exchange Coinsquare and have the right to increase its ownership to 40%. In December of last year, the company announced plans to make up to 1.5 million Canadian dollars ($1.99 million) in corporate investment in Bitcoin, and said it would consider additional purchases in 2021. Affected by this news, the company's stock price rose 2.5% after the market.