Summary:
- According to a survey more than one-fifth US students use their student loan debt to invest in virtual currencies
- ESMA toughens its stance on digital currency derivative contracts
- Russia implements a draft bill aimed at protecting the rights of crypto owners
Major cryptocurrencies have continued moving lower over the recent hours albeit declines have not been substantial. Technically Bitcoin seems to be at a place which could incentivize buyers to re-enter the market but before we move to technical charts let us write a few words about a particularly interesting survey conducted between 16-20 March by the Student Loan Report. The findings suggest that as much as 21.2% of current college students using student loan debt have used those means to invest in cryptocurrencies. The surveyed students were trying to take advantage of price volatility in Bitcoin or Ethereum in order to pay off their debt faster.
Somewhat more than one-fifth of surveyed students have invested in cryptocurrencies. Source: studentloans.net
The number might be impressive especially when one take into account that investing in the so volatile market could result in yet higher debt. Furthermore, lofty volatility we saw at the turn of the year across digital currencies has not deterred industry insiders as they still prefer to take their salaries in Bitcoin. According to a CNBC’s report dated on 26 March 52 employees of BitPay keep preferring to get their salaries fully in the digital currency instead of moving to fiat money at least to some extent.
Bitcoin has almost touched its key support line being a lower bound of a potential triangle pattern as well. If this line is respected, an increase toward $8260 might be on the cards, however, a more long-lasting bounce may be hard to witness unless the price breaks above an upper bound of the triangle formation. Source: xStation5
ESMA toughens its stance on digital currency derivative contracts
The European Securities and Markets Authority (ESMA) decided to toughen its stance on cryptocurrency derivative contracts agreeing to temporarily adjust the leverage limit for cryptocurrency-related CFDs (so-called contracts for difference) to 2:1, the move aimed at protecting retail investors. It means that retail investors will have to pay at least 50% of the total CFD value lessening possible gains and losses as well. The ESMA cited gargantuan volatility seen across cryptocurrencies posing a material risk for retail investors. Do notice that the agency had even mulled over scrapping a leverage and banning marketing or sales of there products altogether.
Litecoin broke below its $136 support and therefore sellers seem to have taken control. The bearish mode could prevail at least until the price closes above the mentioned technical level. In turn, a broader view suggests that any change of the current bear market could take place when the price comes back above the blue trend line. Source: xStation5
Russia implements a draft bill aimed at protecting the rights of crypto owners
The Russian Ministry of Finance (MoF) introduced a bill aiming to protect the rights of virtual currency owners in the hope that it would boost cryptocurrency trade in the country. The newly implemented bill is to regulate the use of digital money as well. The MoF claims the bill will allow authorities to tax the digital currencies and thereby support the state budget. It should also handle other matter such as inheritance rights and bankruptcy claims of cryptocurrencies.