After the price consolidation above the USD$7,000 zone, the Bitcoin market became somewhat indecisive, showing no clear direction. Following the Bitcoin/USD exchange rate race up to USD$7,800, the price immediately dropped back below USD$7,500.
The Bitcoin price is trending horizontally within a narrow range which shows decreasing price volatility. The price ranges from USD$7,000 to USD$7,800. The USD$7800 resistance is the first hurdle to overcome.
If Bitcoin can hold its closing price above USD$7,400 for two consecutive days, we can see this as optimism and potentially more gains.
Cryptocurrency Market Panic Index
Instead of using social media panic factors that are difficult to quantify, we calculate the BTC market panic index completely based on volatility. Based on the CBOE calculation method for the S&P VIX index, we use the near- and next-term put and call BTC options to calculate the VIX trend chart (The lower the VIX, the lower the market panic). As shown on both graphs, the correlation between BTC and ETH panic indexes is extremely low this week.
Digital currency prices (2020-04-27 UTC 12:00)
News of the week
Malta’s ‘Blockchain Island’ Dream Deferred as 70% Entities Shun Licensing
Malta’s efforts to become the “Blockchain Island” have suffered a setback as 70% of companies in the sector have not sought licensing. Six months after the deadline, only 26 companies have applied for a license and none have yet been granted one.
Malta initiated legislation to regulate virtual financial assets in 2018 and invited companies to operate on the island during the transitory phase, after which they were supposed to register. Six months after the deadline, 57 of the 83 companies which responded to the call have not applied for licensing.
The Malta Financial Services Authority (MFSA) has received 26 applications which it is still reviewing and has yet to issue any license. On Friday, however, the financial regulator published a list of 57 companies that have not sought licensing six months after the deadline, despite multiple reminders.
In a statement, the MFSA said it is aware of a number of entities that have “failed to submit either a letter of intent to initiate the application process for a VFA [virtual financial asset] services license or a cessation of activities notification.” The financial regulator warned customers that doing business with unregulated firms constitutes a risk to the investors.
The MFSA regulates cryptocurrency exchanges, initial coin offerings, and wallet providers under the Virtual Financial Services Act (VFSA).
Companies that publicly supported Malta’s crypto legislation, such as Binance and Palladium, have also not sought licensing. Binance was the face of the campaign while Palladium appeared alongside then Prime Minister Joseph Muscat to launch the first ever “initial convertible coin offering.”
Reports that entities found the VFSA requirements too demanding may explain why only 30% of them are still backing the “Blockchain Island” dream.