Kategorie: Bitcoin News

The US President Joe Biden has signed an executive order that actively calls for policies on Bitcoin and other cryptocurrencies and urgent action in researching and developing a central bank digital currency (CBDC) in the US. The executive order outlines how the government as a whole shall work in approaching the issue of regulating cryptocurrencies. It calls on all regulatory authorities to collaborate in the regulation and development of digital assets.

The order states:

“My Administration places the highest urgency on research and development efforts into the potential design and deployment options of a United States CBDC. Any future dollar payment system should be designed in a way that is consistent with United States priorities.”

Recap of the executive order

According to the executive order, most regulatory agencies have between 120 days and one year to provide their reports on how Bitcoin and other cryptocurrencies operate within the US economy, how they can be regulated, and how to prevent their illegal use.

The order specifically gives a 210-day deadline on a proposal for CBDC development.

Of utmost importance is honing the illicit use of cryptocurrencies like cases of crypto being used in ransomware attacks and the order seeks to properly regulate digital payment methods and stablecoins.

The order states:

“The international Financial Stability Board (FSB), together with standard-setting bodies, is leading work on issues related to stablecoins, cross‑border funds transfers, and payments, and other international dimensions of digital assets and payments, while FATF [Financial Action Task Force] continues its leadership in setting AML/CFT [Anti-Money Laundering/Combating the Financing of Terrorism] standards for digital assets.”

The order also directs the Treasury Department, the Financial Stability Oversight Council, Federal Trade Commission, the Securities and Exchange Commission, federal banking agencies, the Consumer Financial Protection Bureau, and Commodity Futures Trading Commission to come up with policies for Bitcoin and cryptocurrencies to combat the illicit use of digital assets and protect individuals from “systemic financial risks.”

The order states:

“We must mitigate the illicit finance and national security risks posed by misuse of digital assets.”

The executive order did not leave out the matter of national security and it states that a non-state currency can be used to circumvent sanctions issued against regimes by the United States.

Effect of the executive order on the crypto market

The order has been received well by the majority of crypto enthusiasts and the crypto market which has been rising in anticipation of the order has surged even higher after the order was signed.

Bitcoin for example has surged by over 8% today and currently trades above $42K while Ethereum is up by over 5% and currently trades at $2,701.22. Terra (LUNA) which is leading the current bounce back among altcoins has raised by over 16% and currently trades at $99.67.

The post Biden signs Bitcoin executive order and says CBDC is a matter of “urgency” to the US appeared first on Coin Journal.

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.

The post Kraken’s Ukrainian donations the perfect solution to Russian sanction dilemma appeared first on Coin Journal.

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!

The post Bitcoin (BTC) has fallen for five consecutive days now – Where does it all end? appeared first on Coin Journal.

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.

The post Malaysian minister says cryptocurrencies are not suitable for payments appeared first on Coin Journal.

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.

 

The post Bitcoin is showing signs of decoupling from stocks in the short term, analyst says appeared first on Coin Journal.