Kategorie: Bitcoin News

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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• America needs to “get very serious about [its] Bitcoin strategy as a nation-state,” said Pompliano.
• Bitcoin is a US technology “from an ethos standpoint,” he added.
• Most of the selling pressure around BTC is from short-term holders and institutional traders likely to be positioned at a loss.

Antony Pompliano, the co-founder of Morgan Creek Digital and ardent Bitcoin bull, has urged the US to take the lead in embracing Bitcoin.

Speaking to CNBC’s “Squawk Box” anchor Andrew Ross Sorkin, Pompliano said that the United States needs to take this step on the “off-chance, that 0.01% that the US dollar ends not being the global reserve currency used by every single country in the world.”

Terming this outlook a matter of national security, the investment analyst noted that more and more US political figures have started talking about Bitcoin adoption at the national level.

However, he says the US doesn’t seem to have a strategy on how to take initiative and become the leading destination of this transformative technology.

According to him, America would do well to be the biggest holder of Bitcoin- noting that it (BTC) is the biggest decentralised digital currency not under the control of any single entity.

About 30% of Bitcoin’s hashrate is in the US following last year’s exodus of miners from China into the country and other friendly locations. But despite this, the analyst believes the US needs to have a strategy.

„We need to get very serious about what is our Bitcoin strategy as a nation state,“ he told Sorkin during the “Squawk Box” show. 

Stating that the US needs to take a leading role going forward, Pompliano noted:

„Bitcoin is an American technology from an ethos standpoint. It’s about censorship resistance, it’s about free speech; it’s about self sovereignty and individual rights.“

His comments came as markets across the world looked to bounce from a sharp sell-off triggered by Russia’s invasion of Ukraine. Bitcoin’s value had dipped below $35k as it looked like sellers would push it to critical support around $30,000. 

About Bitcoin’s price movement and the sell-off alongside stocks, Pompliano said that the pressure is mostly from short-term holders and institutional traders. These groups of BTC holders are likely to be ones selling at a loss, he opined. 

Long-term holders and most people are in profit, he said, based on the realized price metric that puts the average cost basis in the mid $20,000 region.

And with Bitcoin’s bounce above $38,000 on Thursday, Pomp says a lot of the sell-off pressure might “be behind us.”

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British law firm Gunnercooke accepts payments in most major cryptocurrencies for their services. Those in need of legal help can now get the help they need with payments in Bitcoin, Ethereum, Dogecoin or Cardano.

CoinPass helps law firm

The law firm is working with crypto exchange CoinPass to accept these payments. CoinPass meets all the requirements of the British regulators, for example they have a registration with the Financial Conduct Authority (FCA). Without this registration, crypto companies aren’t permitted to offer financial services in the United Kingdom, something Binance experienced first hand in the past.

Jeff Hancock, Coinpass CEO: “The CoinPass team is proud to be Gunnercooke’s crypto exchange partner. We are especially excited to be partnering with an organization that has ambitions to advance blockchain and crypto in the UK.”

Familiar with crypto industry

Gunnercooke writes in their press release that this shift doesn’t come out of the blue. The decision to accept crypto has to do with demand from the customer base; they represent “about 100 cryptocurrency developers, platforms, and exchanges.” The cryptocurrency strike company Attestant is the first to pay Gunnercooke in crypto for legal advice.

First transaction in Ethereum

A little more details about this first crypto transaction: according to Gunnercooke, Attestant paid in ether. The press release states that Gunnenrcooke advises Attestant on a range of legal and regulatory matters related to strike action.

Robert Olsen, CCO of Attestant: “Attestant is pleased to make this first crypto asset payment in Ether to Gunnercooke. We believe that accepting crypto payments will cement their position as the UK’s premier digital asset law firm. The company has been a trusted and valued partner in our journey from a start-up to a thriving business, and we look forward to working with them for many years to come.”

A first for the UK

There are already a number of lawyers in the United States that accept crypto, however Gunnercooke’s chief financial officer Naseer Patel states they are the first firm to make crypto payments possible in the United Kingdom.

“Until now, only a few US law firms allow payments through crypto assets, so we are proud to be at the forefront of innovation in the UK. We will now be able to work with a wider variety of clients in different jurisdictions, and give our partners the flexibility to get paid securely in the way they choose.”

On the way to mass adaptation

According to Gunnercooke, their move to adapt crypto as a means of payment isn’t a gimmick and certainly not a marketing ploy. They expect that more and more sectors will accept cryptocurrencies and that in the coming decades, it will become increasingly common to use crypto for everyday payments.

Gunnercooke’s interested in crypto doesn’t come as a surprise. Twice a week they release a podcast, and these are mostly about crypto and associated regulations. In their recent episode, the difference with the mainstream financial world is discussed, and the hosts discuss the role of billionaires on the crypto landscape.

 

 

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