Market Update: BSP Reiterates Crypto Stance: It’s Volatile (May 26, 2021)

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Market Price as of May 26, 2021:

Bitcoin$38,211-1.12%
Ethereum$2,695.48+2.1%
BNB$342.96-0.16%
DOT$22.00-4.35%
ADA$1.55-0.65%
SLP$0.13+28.5%


Bitcoin closed May 25, 2021, at $51,417 per BTC. We’re down 9% in the last 7 days and up 35% since the year began. This is also 41% below the all-time high of $64,804, which was hit on March 13, 2021.

Bitcoin’s market capitalization stands today at $967,062,689,563 which is 58% of the entire cryptocurrency market. The entire crypto market, by the way, now has a market cap of $1,662,144,684,831  (-0.9%).

On the table above, there’s the cryptocurrency SLP. If you wonder what that is, check out this article: Playing Axie Infinity vs Minimum Basic Salary in the Philippines.

Zoom Out: China and Energy

China’s Inner Mongolia set to impose eight measures on crypto mining ban

China’s Inner Mongolia Development and Reformation Commission issued a proposal that outlined areas that could be considered illegal when it comes to crypto mining activities. This is a more concrete proposal than the one before where the Chinese State Council Committee raised the issue of a mining crackdown. 

The measures do not only target crypto mining facilities in the region but also internet cafes that may be using computers to mine crypto. (The Block)

MicroStrategy CEO Vows to Defend Bitcoin from Uninformed Energy Critics

Days ago, Saylor was criticized by the crypto community for hosting a meeting between Elon Musk and eight North American Bitcoin miners. Musk, who sent Bitcoin’s price plummeting after announcing that Tesla would no longer accept Bitcoin as payment due to environmental concerns, met with these miners to address the issue. The outcome was the launch of a “Bitcoin Mining Council” that will publish data on energy usage and source of energy usage data. 

The crypto community did not like that this meeting was held in secret and announced after the fact. Saylor however told Coindesk that if Elon and him were trying to control Bitcoin, they would never have announced that the meeting happened in the first place. Musk and the Miners, Saylor said, are more interested in managing concerns from “uninformed parties.”

Zoom In: Central Bank, COL Financial

Central Bank Reiterates: Crypto is Volatile

The Bangko Sentral ng Pilipinas has been consistent in its messaging about cryptocurrencies: that they have the potential to transform the delivery of financial services, but it’s also cognizant of its risks. Speaking with Rico Hizon on CNN, BSP Governor reiterated its stance on crypto:

“They have really the potential to revolutionize the delivery of financial services and further support of financial inclusion, Therefore it makes them very vulnerable for use in money laundering and terrorism financing. So you have to be wary about that. As a regulator, we should be wary about that,” Governor Diokno said. 

When asked about it being a medium of exchange, the governor said, “The value fluctuates so much so how can you make that as a medium of exchange?” he added. 

Col Financial’s April Lee-Tan on the Risks of Trading Cryptocurrencies

Brokerage firm Col Financial’s Head of Research April Lee-Tan discussed crypto in a new op-ed on Inquirer.net. She cited the growing popularity of crypto in the country and attributed this Nichel Gaba, CEO of PDAX, who said the local exchange saw a 70-fold increase in transactions in less than a year. 

Tan acknowledged the growing popularity of crypto as a result of sharp increases in their prices, “making them very attractive to anyone who wants to make money quickly, especially during these difficult times.”

She did note that the rewards come with significant risks that could lead to huge losses. “Although prices of cryptocurrencies increased several folds the past few months, their prices can also go down sharply like what happened last week. When this happens, the ability to sell right away is very difficult because there is usually a stampede of traders who also want to exit their positions,” she wrote. 

She cited also regulations around crypto and how these factors make crypto an uncertain long-term investment.

“In summary, although trading cryptocurrencies can be profitable, it can also be very risky. Make sure that you are aware of these risks and look for ways to manage them before you start buying cryptocurrencies.”

Current Campaigns

PDAX Announces Pro Mode on Mobile, Plus New Campaign Promo

As April noted earlier, crypto is increasingly becoming popular in the Philippines. Local exchanges are improving their services to cater to new users. For PDAX, they recently launched a Pro version of the app. So now, the app has Pro mode and basic mode. Basic mode allows a user to quickly swap pesos to crypto and vice versa via the “Convert” function. Pro Mode allows users to take advantage of limit orders and see the depth of PDAX’s order book.

PDAX is also running a giveaway: Users who traded between May 25 to June 7 have a chance to win the following prizes:

More details can be found here: https://support.pdax.ph/s/article/Promo-Mechanics-Trade-Like-a-Pro

OKEx Integrates MetaMask, Announces Independence Day Promo

In a blog post, OKEx said OKExChain has achieved two milestones: first, it now supports Ethereum Virtual Machines on its mainnet, allowing developers to deploy EVM smart contracts on OKExChain and configure OKExChain in their MetaMask accounts. Next, OKExChain has onboarded 6 new wallet partners and welcomed Bixin Capital for strategic investments.

The monthly report coincides with a new marketing campaign for Filipino users. All users have to do is post a 30-second video answering what they think of financial independence and why. 

The full details can be found in the OKEx Philippines Telegram Channel.

What else is happening

  • Mark Cuban Invests in Polygon/Matic
  • Indonesia Plans to Issue a Central Bank Digital Currency
  • Despite Historic Crash, Most Bitcoin Investors Still in Profit: Report

This article is published on BitPinas: Market Update: BSP Reiterates Crypto Stance: It’s Volatile (May 26, 2021)

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[…] This article is published on BitPinas: Market Update: BSP Reiterates Crypto Stance: It’s Volatile (May 26, 2021) […]

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