News updates April 28, 2022
- Bitcoin Slips Toward $38K After Rally Fizzles
Russia's suspension of gas supplies to Poland appeared to darken the largest cryptocurrency's failed attempt to hold gains above $40K, market analysts say. Bitcoin (BTC), after a price pop on Monday above the crucial psychological level of $40,000, is again flirting with a six-week low.
As of press time, the largest cryptocurrency by market capitalization was down 3.3% in the past 24 hours, trading at $38,210 – close to the lowest since mid-March. The bitcoin price climbed as high as $40,800 earlier Tuesday but dropped more than 5% in the past four hours.
“Bitcoin reversed earlier gains after Russia reportedly suspended gas supplies to Poland,” said Edward Moya, senior market analyst at the foreign-exchange brokerage Oanda. That's “a sign that war in Ukraine could see further escalations.”
2. Bitcoin hits $40K, investors pump DOGE after Musk confirms Twitter purchase
Markets took a turn for the better after BTC reclaimed $40,000, and the excitement over Elon Musk buying Twitter translated to a 20% pump for DOGE price.
The cryptocurrency market fell under pressure in the early trading hours on April 25, but a brief spurt of bullish price action sparked after media headlines announced that Elon Musk had reached a deal to purchase Twitter for $44 billion.
Data from Cointelegraph Markets Pro and TradingView shows that after dropping as low as $38,210 in the opening trading hours on April 25, Bitcoin (BTC) price staged a 5.72% rally to hit an intraday high at $40,366 as news of Twitter’s sale spread across news outlets.
3. Bitcoin is still bullish according to historical macro cycle bottoms
On-chain data firm Whalemap suggests that while the current correction is not over, a “generational bottom” is on the horizon and as the chart shows, buying these events tend to be very profitable for investors.As shown on the chart, the current price for BTC is well above the line that has previously marked the bottom of each macro cycle. This can be interpreted a couple of different ways: Either the bearishness that has dominated the market is unwarranted at the current levels or the bull market outlook is still strong. Alternatively, one could infer that the market could be in for a real gut punch if the current weakness culminates with a final flush out to the sub-$20,000 region. The overall cryptocurrency market cap now stands at $1.859 trillion and Bitcoin’s dominance rate is 41.2%.
4. Dubai’s Largest Real Estate Developer Damac Starts Accepting Payments in BTC and ETH
Dubai is quickly emerging as the crypto hub of the world and thanks to its crypto-friendly policies! On Wednesday, April 27, Dubai’s largest real estate developer Damac Properties said that it would start accepting crypto payments in Bitcoin (BTC) and Ethereum (ETH) against property sales.
The real estate giant said that introducing property sales will revolutionize the real estate market in Dubai. Besides, cryptocurrencies also bring convenience and optionality to property developers worldwide. Speaking to Kahleej Times, Ali Sajwani, general manager of operations at Damac said:
“This move towards customers holding cryptocurrency is one of our initiatives to accelerate the new economy for newer generations, and for the future of our industry. It is crucial for global businesses like ours to stay at the top of evolution. Offering yet another transactional mode is exciting, and we are glad to recognise the value this technology brings to our customers.”
5. India Will Have A Measured Approach to Crypto Regulations Says Finance Minister
Amid all the pessimism surrounding crypto regulations in India, Finance Nirmala Sitharaman has finally cleared some air. During her recent interaction at Stanford University, Sitharaman said that India will have a measured approach to the regulation of digital assets.
India has so far accepted a tough stand towards digital assets. Earlier this year in February 2022, the government announced a 30% tax on digital asset gains, one of the highest in the world. This has deterred a lot of investors to participate in the crypto space. Besides, we have also witnessed a drop in the crypto trading volumes on Indian exchanges.
On the other hand, exchanges are having a tough time dealing with fiat payment systems such as UPI. NPCI, the regulatory body behind UPI, has also flagged some of the top exchanges such as Coinbase and WazirX for using the UPI payments method.
6. New York Mayor urges state to abandon ‘stifling' BitLicense scheme
New York City Mayor Eric Adams has hit out at his states’ BitLicensing regime, claiming that it stifles innovation and economic growth.
In a closing keynote interview at the Crypto and Digital Assets Summit in London on April 27.
Since 2015, any “virtual currency business” wishing to offer services within New York requires a BitLicense to do so. According to the states’ Department of Financial Services (DFS) the license ensures that its residents have a “well-regulated way to access the virtual currency marketplace” and that the state remains at the “center of technological innovation and forward-looking regulation”.
Many crypto firms moved from New York when the license was introduced and recent calls to remove regulatory barriers and ease restrictions often focus on the license, which costs $5,000 in application fees along with unclear capital requirements set by the DFS.
7. Central African Republic Adopts Bitcoin as Legal Tender, Second Country Following El Salvador
Central African Republic (CAR) has officially adopted Bitcoin (BTC) as a legal tender in the country.
The move was ushered in with the unanimous adoption of the premier digital currency by the country’s lawmakers, who noted that the coin will now operate in correlation with the CFA franc.
As confirmed by the Chief of Staff to President Faustin Archange Touadera, Obed Namsio said the bill has been signed into law by the President. According to Namsio, the Central African Republic "is the first country in Africa to adopt bitcoin as legal tender," Namsio said, adding that "This move places the Central African Republic on the map of the world's boldest and most visionary countries."
8. Deutsche Bank Predicts Major US Recession Next Year
Deutsche Bank’s economists have warned that the U.S. will suffer a major recession next year. However, several other major investment banks, including Goldman Sachs and JPMorgan, are less pessimistic about the future outlook for the U.S. economy.
9. Nepal Shuts Down Crypto Websites, Apps — Warns About Engaging in Crypto Activities
The Nepal Telecommunications Authority has issued a warning that crypto activities are illegal. The regulator emphasized that websites, apps, and online networks related to crypto activities are prohibited to be used, operated, or managed within the country.
10. Cambodia Bars Using and Trading of Crypto
In Asia, the Cambodian Ministry of Finance and Economics announced on Wednesday that no-issuance and circulation of cryptocurrencies would be allowed in the country.
The agency, which is responsible for the administration of financial and economic policy and affairs in the Kingdom of Cambodia, released a document, stating that despite the rapid growth of fintech and its significant impact on the global economy in recent years, the Cambodian government has not changed its policy of banning the use of crypto coins.
According to the document, the National Bank of Cambodia, the Cambodian Ministry of Finance and Economics, the Securities Commission, and the National Police have jointly issued a statement that prohibits any issuance, circulation, and trading of cryptocurrencies in the country. So far, the Cambodian government has not awarded a business license to any crypto firm in the nation, meaning that it is illegal to issue, circulate, and trade crypto assets in Cambodia.
11. Hong Kong watchdog warns stablecoins could undermine HKD in CBDC paper
The Hong Kong Monetary Authority (HKMA) has warned that stablecoins could undermine the Hong Kong dollar in a just released discussion paper about its retail central bank digital currency, e-HKD.
Many in the crypto industry believe that interest in developing central bank-issued digital currencies has been in response to the rise of private-sector stablecoins. This discussion paper appears to confirm that view.
“With continued developments in stablecoins, it cannot be ruled out that a popular stablecoin may eventually emerge,” wrote the HKMA as part of the “e-HKD: A Policy and Design Perspective” discussion paper released on Wednesday.
