News updates April 20, 2022

1. Bitcoin Bounces Back Past $40,000, But May Struggle To Maintain Position. 

Bitcoin managed to recover from the $38K price zone and is now trading over the $40K mark, indicating that the bulls have made a rally against the bears.

Though the largest cryptocurrency in terms of market capitalization has lost 10% in the last two weeks, BTC is gradually recovering.

Bitcoin is currently trading at $41,431, according to price data website CoinGecko, after falling to roughly $38,779 on Monday. 

Bitcoin increased about 7% from the current month’s lows. The majority of the token’s profits come from large traders amassing more crypto at lower prices.

Additionally, the token’s erratic movements resulted in significant liquidations in the futures market, particularly in long holdings.Bitcoin may struggle to maintain a price above $40,000, after the US Dollar Currency Index (DXY) touched a 52-week high of 101.02 on Wednesday.

2. That Predicted Historical Bitcoin Price Corrections Flashed Again. The declining BTC network activity could lead to another price drop for the asset, argued analysts from CryptoQuant.
Despite being more than $3,000 up in the past two days, bitcoin’s price trajectory has been on the downfall on a more macro scale. According to a recent analysis, the primary reason for this could be the massive drop in the network activity, especially inflows and outflows to and from cryptocurrency exchanges.

3. How the Biden Administration Is Approaching Crypto Regulation.

Table of contents

1.Heading Towards Cryptocurrency Adoption?
2. Key Features Of The Executive Order
3. Executive Order Was Not The Crackdown People Feared
4. Final Thoughts

Last November, digital assets reached a collective market cap of more than $3 trillion, marking the industry as an essential element of the global economy. To show how much crypto assets have permeated American society, a White House fact sheet states that more than 40 million Americans, which is 16% of the population, use cryptocurrencies to invest, trade, or make payments.
However, there has been a lot of concern about how cryptocurrencies can be used to hide money, run illegal businesses, and abet corruption.
Cryptocurrency has become even more critical because Russia tried to use it to get around sanctions from the United States and the European Union (EU) because it invaded Ukraine. Russia’s actions have made the need to regulate the crypto space even more significant. But as analysts suggest, President Biden’s executive order will only be successful if the agencies tasked with coming up with recommendations rise above parochial jurisdictional battles to create a coherent overarching public policy.
Generally, the Biden administration believes that crypto might boost America’s competitiveness in the global economy. The President’s order has more positives than negatives for startups issuing digital assets.

4. 5 innovative Bitcoin privacy wallets in 2022.

Bitcoin wallets are essential for storing, sending and receiving cryptocurrency. However, privacy is another important feature for some users.

Bitcoin wallets are necessary tools for purchasing, trading, and selling Bitcoin and other cryptocurrencies. Traders depend on them to securely store cryptocurrency as well as to preserve and verify transaction data. 

Bitcoin is often seen as an anonymous payment network. However, Bitcoin is most likely the world’s most transparent payment network. At the same time, when utilised appropriately, Bitcoin may give acceptable degrees of anonymity.

While users may strengthen their anonymity by changing addresses on a regular basis and utilising different wallets, this can be time-consuming for the typical individual. Like capabilities are included into privacy-focused wallets, as are extra features such as Tor integration and multi-sig security.

Mercury Wallet is a Bitcoin wallet that is built on the new layer-2 statechain technology for Bitcoin scaling. As a result, the wallet may accept Bitcoin deposits with no transaction costs. 

This is due to statechains, which allow for the off-chain transfer and settlement of Bitcoin transactions without the need for on-chain confirmation (mining). Since there is no mining involved, there are no mining fees.

As a consequence, users will be able to quickly transfer complete custody of an amount of Bitcoin to anybody. This enhances anonymity while also making Bitcoin more accessible and less expensive to use.

In simple terms, this wallet enables users to transmit and trade Bitcoin instantaneously and without incurring any transaction fees. Users may also transfer Bitcoin while remaining anonymous. The wallet is available only as a desktop wallet for Mac and Windows users and it only supports Bitcoin.

Wasabi Wallet is a non-custodial, open-source, privacy-focused Bitcoin wallet for Windows, Linux, and Mac. It has a built-in Tor connection, CoinJoin, and coin control privacy features. The Wasabi Wallet is only available on desktop computers and does not have a mobile version.

Because the wallet is non-custodial, users have complete control over their cryptocurrency. This implies that no third party may freeze or seize a user’s money. Users are still responsible for protecting and backing up their wallets.

By changing addresses, the wallet also makes it more difficult for anybody to snoop on a user’s balance and payments. Users should continue to use a different Bitcoin address each time they seek payment.

Privacy is also improved since when receiving or transmitting a payment, no information is given to peers on the network. Tor can also be configured and used as a proxy to prevent attackers or Internet service providers from linking users’ payments with their IP addresses.

This wallet suggests fees depending on current network circumstances, which may be overridden. This implies that this wallet will assist users in determining the proper cost so that their transactions are completed in a timely way without paying more than necessary. Users may also choose to override this suggestion.

6. Bitcoin’s (BTC) Recovery May Only Be Temporary, Futures Market Shows.

Bitcoin (BTC) bounced back from a one-month low this week, regaining a key support level as sentiment improved. But forward trades of the token showed little bullish sentiment, indicating that it may be set for more losses.

BTC jumped nearly 7% from its April lows, and was last trading around $41,000. A bulk of the token’s gains came from big traders accumulating more BTC at cheaper prices.

The token’s wild swings also caused large liquidations in the futures market, particularly in long positions. But the mass liquidations highlighted another factor in BTC positioning- a large portion of traders appeared to be turning cold on the world’s largest cryptocurrency.

 *BTC funding rates on a decline*

Data from blockchain analytics firm Kaiko showed that perpetual futures markets indicated little bullish demand for BTC positioning. In a tweet,  the analytics firm noted that funding rates for both BTC and Ethereum (ETH) were continuing their decline from late-2021.

The firm took an average of funding rates from five derivatives exchanges- Binance, Bitmex, Bybit, Derbit, and FTX. Both BTC and ETH saw their funding rates at a two-month low.

7. Australia’s first Bitcoin ETF could attract $1 billion after launch next week

Financial regulators have greenlit Australia’s first Bitcoin ETF to begin trading on April 27 and the Australian Financial Review reports it could see up to $1 billion in inflows.

8. Ex-Chinese Central Bank Chief Says Digital Yuan Not Intended for International Trade

The former governor of the central People’s Bank of China (PBoC) has reiterated claims that the forthcoming digital yuan has been designed primarily for retail use by domestic and even international users – not for cross-border trade purposes.

9. Bitcoin's Promise For The Fourth Industrial Revolution

Since its inception, Bitcoin has paved the way for broad adoption of cryptocurrencies and blockchain ledger technology. Now, Bitcoin’s promise extends into the fourth Industrial Revolution (Industry 4.0). The wave of development and utilization of Bitcoin as decentralized finance (DeFi) for this new revolution carries enormous potential for an increasingly connected global economy.

Industry 4.0 is making waves across global commerce. Bitcoin, through advancing networks and accessibility, challenges traditional perceptions of banking and finance. Meanwhile, its capabilities can assist organizations in overcoming the scalability challenges inherent in global trade. From reducing the negatives of the informal economy to empowering international trade through visibility, Bitcoin will come to mean a lot more to world industry in this current technological revolution.

We see the promise of Bitcoin in solving both the challenges of cryptocurrency and larger economic issues. Networks like Rootstock (RSK), Lightning and Liquid elevate Bitcoin solutions for modern supply-chain visibility and business innovation potential.

10. IMF Publishes Global Financial Stability Report Discussing Bitcoin

The International Monetary Fund (IMF) recently published the “Global Financial Stability Report” which discussed a myriad of subjects including: Bitcoin and other cryptocurrencies disrupting the payments system, bitcoin being used to evade sanctions, inflation, Russia’s invasion of Ukraine, banking infrastructure, central bank challenges of maintaining credibility, energy security, and many other topics.

11. El Salvador’s Bid for Bitcoin Bonds Sinking as IMF Deal 'Practically Dead': Former Central Bank President

El Salvador's efforts to harness Bitcoin to boost its economy are falling short of what the BTC maximalists had hoped for.

Finding common ground with the International Monetary Fund, which has asked El Salvador to reverse its Bitcoin law and which could withhold financial assistance, has not happened. Many critics doubt it will, and counted among them is the nation’s former Central Reserve Bank president.

Speaking on Monday with ElSalvador.com, Carlos Acevedo, who served under Mauricio Funes from 2009 to 2013, said that stubbornly chasing a Bitcoin-based solution has cost the country dearly, “killing” relations with the IMF and making such a bond issuance virtually impossible.