Dubai Govt. to Accept Bitcoin and Crypto Payments
The Dubai government has formally begun to accept bitcoin payments, according to @WatcherGuru on Twitter. By doing this, Dubai becomes one of the first significant governments to include digital assets in its payment systems, which might hasten institutional adoption and raise cryptocurrency market transaction volumes. Because this legislation may influence price movements and open up new trading possibilities, traders should keep an eye out for possible spikes in demand for popular cryptocurrencies like Bitcoin and Ethereum, as well as regional blockchain initiatives based in Dubai. Source: June 2024, @WatcherGuru, Twitter.Hardware wallet for Bitcoin, real estate in the metaverse
By formally accepting cryptocurrency payments for a range of services, Dubai govt has made a revolutionary step and established the emirate as a global leader in blockchain usage. Through partnerships with authorized crypto payment processors, this effort, which was announced in October 2024, enables citizens and businesses to pay for government services using Bitcoin (BTC), Ethereum (ETH), and maybe other significant cryptocurrencies.
CoinDesk notes that this action is in line with Dubai’s Blockchain Strategy and Vision 2021, which seek to establish the city as a leading center for digital innovation. The announcement, which indicates strong institutional endorsement for digital assets in a major financial hub, has already generated a lot of excitement among cryptocurrency traders and investors.
By 10:00 UTC on October 10, 2024, Bitcoin had risen 3.2% in a day to $62,500 on Binance, while Ethereum had increased 2.8% to $2,450 on Coinbase. On well-known exchanges like Binance and Kraken, trading volumes for the BTC/USD and ETH/USD pairs increased by 15% and 12%, respectively, indicating increased market activity in the wake of the announcement. In addition to increasing trust in cryptocurrencies as a valid form of payment, this step establishes a standard for other governments around the world, which could hasten their widespread acceptance.
This report highlights the increasing convergence of cryptocurrency markets and traditional finance, offering traders special chances to profit from the momentum in both industries.
Dubai’s acceptance of cryptocurrency payments has significant trading ramifications for both individual tokens and the market as a whole. The two most widely used cryptocurrencies, Bitcoin and Ethereum, are probably going to continue to rise in value, particularly as institutional interest in the Middle East increases. As of October 11, 2024, at 14:00 UTC, on-chain data from Glassnode indicates that the number of Bitcoin wallet addresses holding more than one Bitcoin has increased by 7% over the previous week, indicating stockpiling by larger players.
Furthermore, within the same time period, Ethereum’s gas prices increased by 10%, suggesting increased network traffic that may be related to integrations with payment processing.
A longer-term rally may be confirmed if traders watch the BTC/USDT and ETH/USDT pairs for breakouts over important resistance levels at $63,000 and $2,500, respectively. Furthermore, on October 10, 2024, at 12:00 UTC, altcoins that are exposed to payment solutions, such as Stellar (XLM) and Ripple (XRP), witnessed slight increases of 1.5% and 2.1%, respectively, while Binance’s trading volumes increased by 8%.
This raises the possibility of spillover effects since other blockchain networks may be added to Dubai’s infrastructure. By October 11, 2024, at 15:30 UTC, cryptocurrency-related equities like Coinbase Global (COIN) increased 4.3% to $178.50 on NASDAQ, indicating investor optimism that cryptocurrency growth would drive exchange revenues. This is another example of how cross-market analysis demonstrates a correlation with stock markets.
Examining technical indicators, as on October 11, 2024, at 16:00 UTC, Bitcoin’s Relative Strength Index (RSI) on the daily chart was at 62, suggesting positive momentum without overbought conditions. At 58, Ethereum’s RSI reflected this, and on October 10, 2024, at 09:00 UTC, its 50-day moving average formed a golden cross, a powerful bullish indicator, crossing above the 200-day moving average. By October 11, 2024, at 10:00 UTC,
the trading volume for BTC/USD on Binance had reached 120,000 BTC in a single day, a 15% increase from the previous week, while the volume for ETH/USD on Coinbase had reached 85,000 ETH, a 12% increase. These indicators point to active market activity. At 14:00 UTC on October 11, 2024, the S&P 500 increased by 0.8% to 5,820 points in terms of stock-crypto correlation.
displaying a risk-taking attitude consistent with cryptocurrency gains. Grayscale’s Bitcoin Trust (GBTC) received $50 million in inflows on October 10, 2024, according to Bloomberg statistics, demonstrating institutional money flow as well. This suggests that traditional finance institutions are stepping into the cryptocurrency space in the wake of Dubai’s policy change. While monitoring cryptocurrency stocks like COIN and MicroStrategy (MSTR) for concurrent possibilities, traders might investigate long positions on BTC and ETH, aiming for resistance levels. Although risk appetite seems high, volatility is still a worry; stop-losses below $60,000 for Bitcoin and $2,300 for Ethereum are advised.
In conclusion, Dubai’s adoption of cryptocurrency payments represents a significant turning point for the sector, causing instant price movements and volume spikes in the main tokens and associated stocks. The relationship between cryptocurrency performance and stock market mood reveals a larger trend of institutional convergence, providing traders with a variety of entry options. In this changing environment, keeping an eye on technical levels and on-chain measurements will be essential for optimizing profits while controlling risks.
Disclaimer and Risk Warning
coinweck does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. The image used in this article is for informational purposes only and is provided to us by a third party. coinweck should not be held responsible for image copyright issues. Contact us if you have any issues or concerns. Readers should do their research before taking any actions related to the company.