OZ Crypto Roundup: Bitcoin bullish climb continues into mid-October

Weekly Market Update
11th of October to the 15th of October

Bitcoin has hit a stride this week, with $BTC revisiting new resistance levels from Spring. As the market rallies around the first US Bitcoin futures ETF could BTC keep climbing?

  • TLDR – A snapshot of the week
  • BTC up 6% (US$59,525 and AU$80,439)
  • ETH up 8% (US$3,802 and AU$5,137)
  • Bitcoin triumphs over the market during October
  • Australian government says no to crypto hackers
  • Melbourne university ranks number two in ‘Top Universities for Blockchain’ list

Aussie crypto legislation coming in 2022

  • Bitcoin outperforms other markets in October, as buyers anticipate crypto ETFs in the USA and Australia
  • After starting the month with strong momentum, Bitcoin price surged as retail investors and institutions anticipate the approval of the first Bitcoin Exchange Traded Fund (ETF).
  • The US Securities Exchange Commission (SEC) hasn’t approved the first Bitcoin futures ETF but indicated that it won’t block it either. ProShares’ Bitcoin future has also been approved by the NYSE stock exchange and is scheduled to be made available this week.
  • This news comes after Australia’s own BetaShare launched a Crypto-focused ETF on the ASX.
  • In light of these developments, Bitcoin has shown incredible growth across October, seeing 31% gains across the month.
  • Bitcoin’s dominance and popularity has been further highlighted in the week, the coin settled a record $US 31 Billion in transactions on October 6th. Outperforming traditional payment systems like Visa and Mastercard, the news is a sign of greater support for crypto’s future as a payment method.

Australian government new plan to protect the nation against cryptocurrency hackers

  • The Australian federal government announced new cybersecurity measures along with a proposed Surveillance Legislation Amendment last Wednesday in an effort to fight a recent surge in cyberattacks on Australian businesses and state agencies.
  • Australian authorities will be given the power to seize or freeze cryptocurrencies tied to cybercrime.
  • The harsher stance by the government is in response to a 60% increase in cyberattacks in 2020, that contributed to $AU 1.4billion in damages to the economy.
  • Home Affairs Minister Karen Andrews stated that the new measures were designed to prevent cybercriminals from targeting Australians and exploiting them for ransom:
  • “Our tough new laws will target this online criminality, and hit cybercrooks where it hurts most — their bank balances.”
  • Under the new legislation, dealing in stolen data, purchasing and selling malware used in ransomware attacks will be considered highly illegal.
  • Recent attacks by cybercriminals have targeted some well known Australian organisations including, Uniting Care Queensland, Lion Brewing Company, Nine Entertainment, The NSW Labor Party, Bluescope Steel.

RMIT takes 2nd place on the ‘Top Universities for Blockchain’ list of 2021

  • In a big win for the Australian Grassroots crypto movement, the Royal Melbourne Institute of Technology (RMIT) has placed 2nd in Coindesk’s 2021 ‘Top Universities for Blockchain’ List.
  • In a pool of 230 international academic institutions, including Stanford University, University of California, University of Zurich, RMIT placed second to the National University of Singapore with a score of 97.65.
  • The list, which is based on; courses, research output, campus blockchain offerings (student clubs and research centres), employment outcomes, and academic reputation, has seen Asian and Oceanic universities dominate in 2021.
  • Evolving from an American-only list in 2020, the results are a growing sign of academic investment from Asia and Australia in blockchain technology and cryptocurrency adoption.
  • Speaking on the achievement, RMIT’s Blockchain Innovation Hub director Professor Jason Potts noted:
  • “There is strong competition in the blockchain technology space in higher education. Our second placed ranking solidifies RMIT’s position as not only a world leading research centre…”
  • As blockchain technology becomes increasingly important for the global economy, solidifying Australia’s place in blockchain research and development is crucial to take cryptocurrencies into the mainstream of the country.

Aussie crypto legislation is expected to arrive in 2022

  • In a speech at the recent virtual NFT fest, a local industry event, Liberal Senator Andrew Bragg announced that Australia’s digital asset plan is coming in the near future, with legislation likely enacted in 2022.
  • The report, which will be published by the end of October will include a number of regulatory recommendations to support a consumer protection, investor promotion, and market competition in the Australian digital currency and cryptocurrency environment.
  • While no specifics were mentioned by the senator, Bragg has assured “robust policy framework” to be included in the report.
  • Over regulation remains a key worry for many Australian investors and developers in the industry with many concerned unnecessarily that strict legislation could stifle the industry from an investment and innovation side.
  • However in his speech, Senator Bragg stressed that he did not want to see the sector “destroyed by a regulation that was designed for a whole different purpose.”

Market sentiment update

  • Moving into the middle of the month Bitcoin has continued with bullish momentum with retail and institutional investors looking to buy in.
  • After breaking through two resistance levels in the first days of October, the bitcoin price pushed all the way up to AU$77,000, where it is sitting currently.
  • Here, bitcoin found resistance at AU$78,000, an area that acted as strong resistance during BTC’s first substantial run-up in February.
  • The area between AU$78,000 and AU$81,000 has been a strong resistance level for bitcoin previously. Not only is AU$78,000 a crucial resistance level technically, but it’s also a considerable psychological resistance since it’s a round number.
  • Bitcoin looks like it will start playing with this level in the upcoming days. If it manages to break through, the next barrier is the all-time high at around AU$88,000.
  • Concerning potential downward movement, AU$70,000 is the first support level worth paying attention to. Bitcoin has strong support further down in the AU$65,000 to AU$62,000 if this support fails.
  • The relative strength index (RSI) has separated from the rising price since 6 October, the negative separation, suggests there may be room for a pullback.

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