Bitcoin (BTC) continues to hold above the 13,000 level and the 10 EMA trail support. With this, immediate levels can be plotted with 13,000 - 12,800 as immediate support and around 14,000 as resistance. A break above the 14,000 level could push price higher with next potential target around 16,000 - 17,000, while a break below 12,800 - 12,500 could send price to retest the 12,000 key level.
Global market cap is at $391B, while BTC's market cap is at $251B.
PayPal has revealed further details regarding its planned cryptocurrency service next year. According to the senior executives of PayPal during its Q3 earnings call, the firm is also looking into including support for central bank digital currencies (CBDCs). PayPal CEO Dan Shulman asserted that "There is no question that digital currencies are going to be rising in importance, having increasing functionality, and increasing prominence." Additionally, PayPal's executives also shared that the demand for crypto services from its customers are increasing and went beyond their expectations. In response to this demand, PayPal will increase its weekly crypto purchase limit from $10,000 - $15,000.
Last month, PayPal announced its plan to roll-out crypto services which would enable customers to buy, sell, hold, and transact using crypto assets which resulted in positive feedback across the crypto markets. The planned digital currency services will be launched in the first half of 2021 and will also be available to international customers.
Bitcoin saw its biggest negative difficulty adjustment since October 2011 after automatically readjusting by 16% on Tuesday. Estimates had previously suggested that the adjustment would be around 13% but eventually became the second highest in BTC's history, with only the 18% adjustment in 2011 taking the top spot.
Difficulty adjustments happen automatically every 2,016 blocks, and reductions happen to incentivize more miners to compete for block rewards. For users, the adjustment will reduce fees and decrease block times, and will reduce the size of unmined transactions in Bitcoin's mempool.
The Ministry of Financial Services of the Cayman Islands Government announced that it will be introducing a regulatory framework for virtual asset service providers, or VASPs. The first phase of the implementation, which is already underway, focuses on compliance and the enforcement of Anti-Money Laundering and Countering the Financing of Terrorism rules. The second phase will include "licensing requirements and prudential supervision," and is expected to come into force in June 2021.
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