Cryptocurrencies continue consolidation as Bitcoin’s volatility plummets

02 Jun 2021

???? BTC | $36,302 (-1,163, -3.1%)

???? ETH | $2,602 (-114, -4.2%)

???? XRP | $0.99 (-0.07, -6.9%)

???? LTC | $181 (-8.7, -4.6%)

Cryptocurrency mining hardware maker Canaan Creative has highlighted that nearly 80% of their Q1 revenue came from overseas, overtaking its domestic Chinese market for the first time. This comes amidst other signs that crypto mining outside of China is gaining prominence. Large buyers from Europe and North America have been consistently making hundreds of millions in hardware purchases over the last year, with full deployment of their mining capabilities expected by the end of the year.

Goldman Sachs’ Jeff Currie has declared cryptocurrencies as a different kind of investment asset from gold. Among other observations, he noted that cryptocurrencies behave more like copper as a “risk-on” inflation hedge. Both Bitcoin and Copper have seen massive surges and declines this year, and share similarities with regards to their demand and supply dynamics.

The Indian central bank yesterday issued a clarification to banks that a 2018 circular used to caution their customers against trading in cryptocurrencies is no longer valid. This somewhat points to a softening stance towards cryptocurrencies in the country, where the authorities are likelier to go for regulation rather than an outright ban.