The Crypto currency world saw some new developments during the past week, others positive and others not so positive.
To start with, analysts and crypto followers are making a case for the digital coins to have somewhat reduced its volatility during the past weeks.
The digital coins are not as volatile as they used to be.
On the contrary, coins appear to have become more stable in the process.
Not much has happened to confirm that this is closed and sealed statement, but a more eased trading activity along with a sideways movement that has being continuing since September, indicates a more passive trading activity.
Volatility of Bitcoin for example, the biggest cryptocurrency, dropped to its lowest for nearly two years, with price swings reducing compared to U.S. stocks for more than two weeks in a row.
Make no mistake, cryptos will react as soon as strong news hit the deck, but for the past month a pattern similar to real currencies, may have overtaken crypto prices.
At least, we do not see Bitcoin jumping by thousands or dropping as aggressively as it used to, which relieves some risk fears off investors.
In Europe and more specifically France, the finance commission of parliament backed plans to reduce tax on bitcoin sales, aligning it with other capital gains tax.
The rate was brought down to 30%.
This could be a move to make crypto currencies more attractive or to ease losses as the digital coins has suffered strongly during 2018.
Please note that this tax reduction has not passed into law yet and needs to be voted on from parliament prior to being implemented.
In Asia, South Korea’s lawyers joined forces and pressured the government to swiftly create a legal framework to support the development of a blockchain-based virtual currency industry and boost investor’s protection.
South Korea is one of the world’s greatest high-tech countries and home to top cryptocurrency exchanges such as Bithumb and Coinbit.
However, its government has been criticized for ignoring blockchain technology.
Blockchain technology records ledgers for crypto currency transactions and is supposed to protect investors.
Sources said, that the pressure on the government is an attempt to leave behind negative perceptions and hesitation, but also to raise money for the development of blockchain industry and prevent side effects involving cryptocurrencies.
Blockchain is a tool that makes it possible for a large number of people or companies to record information without manipulation interference, and so this technology may be used for other industries also.
On other news, in April 2018, the UAE Government started the Emirates Blockchain Strategy 2021.The strategy aims to capitalize on the blockchain technology to transform 50 per cent of government transactions into the blockchain platform by 2021.
Now, as a continuation of the story Al Zarooni Group and Crypto Bulls have joined forces to start the Crypto Bulls Exchange which is considered to be one of the biggest game changers for Dubai in the Industry.
Moreover, news goes that Ripple has announced that it will also be opening an office in Dubai before the end of the year.
Clearly the UAE is becoming a dynamic center for blockchain and crypto industries.
In addition, the activities leaning towards a safer crypto currency world are already in place.
We are seeing in various parts of the world that improvements and information are forcing governments to make the industry recognized and further research these instruments.
Bitcoin has stabilized in the range of our 6,666 (R1) resistance level and the 6,170 (S1) support level since the beginning of October moving in a sideways manner.
If the cryptocurrency is undertaken by a purchase appetite, we could see it moving towards the 6,666 (R1) resistance level and breach it moving even higher.
The next stop for the crypto currency after the pre mentioned level could be the 7,075 (R2) Resistance barrier.
On the contrary, if the digital asset is caught up in a selling position we could see it aim for the 6,170 (S1) Support area and breach it with the next stop being the 5,800 (S2) support barrier.