Kategorie: Bitcoin News

I feel like all I’ve written in the last couple weeks has been about Russia invading Ukraine and the impact on the markets. Obviously, it has been quite sombre. But today, there was some good news, albeit a bit trivial on a larger scale. Still, it’s a nice change.

Publicity Stunt?

Kraken announced they are to donate Bitcoin to all Ukrainian accounts registered prior to March 9, 2022. At first, I assumed it was likely a publicity stunt, with the qualification criteria stringent. But upon digging into the details, I have to give Kraken credit – it appears if you have a Ukrainian account, it is quite easy to claim.

• Must be registered from Ukraine prior to March 9th, 2022
• Must be an “Intermediate” or “Pro” account (this means you will have verified with photo ID, so pretty easy)
• Must log in before May 1st , 2022 to claim the Bitcoin

The amount is substantial too. If you held a balance in your account at any stage, you are eligible to claim $1000 (Kraken refers to this as Tranche 1). If you have never held a balance (Tranche 2, as Kraken calls it), you are still eligible for $500 in Bitcoin.

There is actually more, too. A $1000 credit will be applied to accounts for purpose of offsetting currency conversion fees going forward. The aid package will also be increased by the amount of trading fees paid by Russia-based clients in the first half of 2022.

Moral Dilemma

I wrote a piece last week looking into the moral dilemma that crypto exchanges find themselves in regarding the freezing of Russian accounts, following the appeal on Twitter from Ukrainian Vice President Mykhailo Fedorov.

 

Kraken CEO Jesse Powell refused the above request, arguing “Bitcoin is the embodiment of libertarian values, which strongly favour individualism and human rights”. Given crypto’s roots in individual liberty, I have sympathy in that he (and other exchanges) found themselves in quite a tough spot. 

I believe that this initiave – avoiding freezing accounts, but donating the Russian fees collected to Ukrainian accounts, as well as further aid – amounts to a perfect solution to a difficult moral dilemma.

“We hope to continue being able to provide critical financial services in time of need to both our clients in Ukraine and Russia”, Kraken CEO Jesse Powell announced. “Cryptocurrency remains an important humanitarian tool, especially at a time when many around the world can no longer rely on traditional banks and custodians”.

In such a way, Powell has managed to delicately balance both crypto’s fierce defense of liberty, privacy and self-custody with the moral obligtion to come to Ukraine’s help, be that either directly or via levelling sanctions against Russia. 

On-Chain Impacts

Finally, I want to look at quite how much Bitcoin Kraken are giving away. Let’s take the lower band of $500 dollars worth of Bitcoin. At time of writing (Bitcoin trading at $42,300), $500 worth equates to 0.012 bitcoins. Given Bitcoin’s tendency for volatility, let’s round down a bit for conservatism and assume they receive 0.01 bitcoins.

Looking at on-chain data, only 23.6% of Bitcoin addresses actually contain more than 0.01 bitcoins.  That means even the Tranche 2 Ukrainian accounts, who will receive the lower amount of $500, will be in the top quarter of Bitcoin holders. Wow.

Cool move, Kraken.

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The crypto market has slumped in the last few days. Bitcoin (BTC) has in fact dropped for four consecutive days now despite threatening to return to $50,000 in recent days. But is this downtrend temporary, and how far can it go? Well, here are some highlights first.

• The weakness came as China reaffirmed its commitment to crack down on crypto.

• Increased volatility due to the war in Europe is also a big risk factor.

• Bitcoin (BTC) is likely to fall to $35,000 before finding enough demand to rise again.

Data Source: Tradingview

Bitcoin (BTC) – What to watch next?

From a technical analysis point of view, the most important thing to watch right now is the $35,000 support. This price has proved very resilient in recent weeks, and it is likely BTC will hold above it. At press time, the mega-cap coin was trading at $38,800. 

If we see increased bear pressure that pushes the coin below $35,000, the next support zone will be $32,000. There are also some additional fundamental factors to watch. The crypto crackdown in China is the main thing, but most investors were expecting it. The war in Europe however has escalated fast and could trigger more volatility in the market in the near term. 

But if BTC can somehow pull up above $40,000 and keep the price action there, then we may see some positive moves in the coming week.

Why This Is the Right Time to Buy BTC?

Bitcoin (BTC) has declined quite substantially from its all-time highs. There are in fact, warnings that the coin could fall further during the first quarter of the year. But the long-term outlook for the mega-cap still remains very positive. In that case, the price pullback we have seen so far in 2022 offers the ideal opportunity to get in.

Want to learn how to safely invest in Bitcoin? Check out our comprehensive Bitcoin buying guide here or purchase from our recommended platform below!

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The Malaysian minister says Bitcoin and Ethereum do not exhibit characteristics of money.

Malaysian Deputy Minister Yamani Hafez has among other several points, noted that digital assets such as Bitcoin (BTC) and Ethereum (ETH) are not suitable when looked at from the perspective of being used for payment purposes.

In a wide-ranging response to a question on the topic of cryptocurrencies and their growing use as money, the minister said:

“Digital assets such as Bitcoin and Ethereum are not suitable to be used as a payment instrument as these assets do not exhibit characteristics of money.”

Volatility in cryptocurrencies

While people are free to hold and trade digital assets in the largely crypto-friendly country, the authorities have not allowed it for use as legal tender. And the minister appeared to reiterate this stance by referring to why Bitcoin and other cryptocurrencies are lumped into this digital asset basket but cannot be used as digital currencies.

“In general, digital assets are not a store of value and a good medium of exchange. This is due to the state of digital assets which is exposed to volatility as a result of speculative investments,” Hafez explained.

The minister’s response followed a question in parliament regarding the government’s outlook on crypto regulation and plans for a central bank digital currency (CBDC)

Bank Negara yet to make clear CBDC move

He added that Bitcoin’s approximately 10 transactions per second pales in comparison to say, the 65,000+ capable on the Visa network. This according to the official’s suggested perspective, makes the legacy payment remain king in the payments space.

The minister then explained that Malaysia’s central bank, Bank Negara, has so far not allowed the use of digital assets for payments. Neither has it made any concrete plans for the issuance of a CBDC.

“The monetary policy tools and existing finances [also] remain effective in maintaining monetary stability and the country’s finances,” he noted.

But not to dismiss cryptocurrencies altogether, Hafez said they are now an investment class that people can explore. To this, he said, Malaysia’s Securities Commission (SC) views crypto as a security.

This week saw Bitcoin and other cryptos get into the global spotlight following the Russian invasion of Ukraine. Just hours after the war started, crypto holders donated hundreds of thousands of dollars worth of crypto to a nongovernmental organisation (NGO).

The donations spiked past the $4 million mark on the second day, crossing $10 million in three days. And apart from BTC and ETH, Polkadot (DOT) was also accepted by the Ukrainian government.

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Bitcoin is up 6% in the past 24 hours and over 18% this past week as it continues to rally higher amid a sell-off in the stock market.

Marcus Sotiriou, an analyst at UK-based digital asset broker GlobalBlock, says Bitcoin’s big move has seen the benchmark crypto “decouple” from the stock market.

In a note on Tuesday, Sotiriou said that BTC’s “incredible” gains this week are a signal that the market could be looking at a potential decoupling from stocks. This, he notes is likely to be the outlook in the short term.

Indeed, looking at the stock market, we see the S&P 500 is headed for another negative daily close with losses above 1.5% on Tuesday.

Why is Bitcoin up today?

Commenting on the recent correlation between Bitcoin and stocks, the GlobalBlock strategist said that this had been the case “for months.” However, the cryptocurrency is signaling what could be an uncorrelated breakout, albeit possibly a short-term one.

And on why Bitcoin is rallying as the S&P 500 falls, Sotiriou explained:

“Bitcoin is being heavily bid due in part to the narrative of being a permissionless and censorship-resistant way of transferring value, as it has been used during the crisis in Ukraine as well as political unrest in Canada.”

But it’s not just stocks that BTC is outshining this week. The flagship crypto is outperforming gold, which last week rallied as Bitcoin fell alongside stocks. Today, despite rallying to highs of $1,945 with over 2% in gains, gold trails BTC’s 6% upside.  

“It is [also] fascinating that, after a week into geopolitical uncertainty, Bitcoin is outperforming gold, which is known as a safe-haven asset,” Sotiriou noted.

Can Bitcoin go higher?

Real Vision CEO Raoul Pal thinks it can, pointing to the current crypto market outlook that “feels a lot like March 2020.”

“Back then we threw the worse possible news at it (a pandemic and a global shut down) and it fell very sharply but failed to make a new low,” he tweeted as Bitcoin broke above $44,000.

Pal sees a similar macro picture in the current circumstances with the Ukraine war, higher rates, and surging oil that has hit $105 per barrel. While the 2022 environment is a different time, he thinks Bitcoin’s failure to make a new low suggests “macro might get more positive for crypto.”

But he also urges caution, noting that the end of the tech sell-off could ignite a fresh collapse in crypto.

 

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After falling sharply in today’s session, Bitcoin (BTC) has for now regained a crucial support zone. This comes as the military confrontation in Eastern Europe continues to intensify. It’s unclear how long BTC can stay above this point. Here are some highlights.

• Bitcoin had earlier fallen below the crucial support of $35000.

• The mega-cap coin however stopped the bleeding and was trading at $38,732 at press time.

• There is still a lot of weakness expected in the coming days.

Data Source: Tradingview 

Bitcoin (BTC) – Where do we go from here

A lot of markets were down in the early trading hours of the European session. With the exception of gold and oil, which saw massive gains, crypto and equities were all tradings lower. But for Bitcoin (BTC), the drop today was a continuation of a bearish trend that has taken hold over the last two weeks.

But after initially falling below $35,000, BTC has managed to recover above that crucial support. The key now for bulls is to hold this threshold at least until the end of the week. 

However, as Russia ramps up its military operations in Ukraine and the Western allies impose a raft of economic sanctions on Moscow, this seems highly unlikely. We expect BTC to bottom at around $32,000 in the coming days.

Is it the right time to buy Bitcoin?

This is probably the worst time to buy crypto. The market is shaky, and volatility has become very high. It is likely that the war in eastern Europe will continue in the coming days and weeks. 

Until there is a peaceful resolution to the conflict, we expect more volatility and weakness on Bitcoin. However, if in the coming days the large-cap falls below $30,000, which is likely, then it would be a good time to get in.

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