News Updates August 06, 2022
1. Bitcoin price: weekend volatility ‘expected’ with $22K level to hold
BTC/USD could hit $30,000 if the current daily trend of higher highs and lows continues, one trader says as the market avoids weekend losses. Bitcoin (BTC) rose above $23,000 again into Aug. 6 as new analysis predicted a potential surge of 20% or more.
Daily chart gives trader $30,000 target
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD climbing overnight to once again sit near the top of its established trading range.
After multiple attempts to break out above range resistance at $23,500, the pair appeared to still be stuck in limbo at the time of writing, but hopes of bullish continuation were already there.
“Expecting more volatility over the wknd,” on-chain monitoring resource Material Indicators wrote in part of its latest Twitter update on Aug. 5.
“If the Bear Market Rally can push BTC above 25k there isn't much friction to 26k - 28k range. Losing the trend line would be bad for bullish hopes and dreams.”
$28,000 would be over 20% higher than the current spot price and would represent a near two-month high.
Material Indicators included a chart showing the trendline mentioned sitting at $22,000 — around Bitcoin’s current realized price.
The chart further showed bid support increasing immediately below spot, while major resistance lay at $24,500.
Monthly RSI hints BTC price comeback is beginning
Turning to on-chain data, PlanB, pseudonymous creator of the stock-to-flow family of Bitcoin price models, again flagged relative strength index (RSI) performance flipping bullish.
2. EU vs US: Why Europe Crypto Regulation Is Worrying US Officials
Patrick Hansen, a crypto venture advisor and expert on European policy, made predictions about the timeline of two landmark EU crypto bills. Hansen reveals that Markets in Crypto-assets(MiCA) and Transfer of Funds Regulation (TFR), two landmark crypto bills, will pass between December 2022 and January 2023.
The speedy regulation by the EU is worrying US regulators. Hansen reveals that the scope and speed of these regulations concern the US and might force them to act faster.
Crypto Regulation In the EU
The MiCA aims at protecting the customers and investors of crypto companies. It also sets liabilities for the issuers if they lose the crypto assets of their users.
MiCA also regulates stablecoins and requires their issuers to maintain proper reserves and meet liquidity requirements during withdrawal. The TFR on the other hand forms money-laundering regulations and tackles the issues of money-laundering in crypto.
Hansen reveals that the European Union is currently working on other crypto initiatives with high implications. These include more anti-money laundering regulations, DeFi report, NFT report, DeFi supervision pilot, and Digital Euro Legislation.
*Why EU Laws Are Worrying US*
The United States is concerned by the scope and speed at which the EU is discussing crypto regulations. Hansen reveals that while the final date is still undecided, the regulations can be voted on by the January of the next year. He also includes that voting is a mere formality at this point, as all the regulations are agreed upon.
TFR, being a smaller regulation, might come into effect much earlier.
US lawmakers are also pushing crypto regulation. The support of a regulatory crypto framework is bipartisan and bicameral in the US. However, there is still no deadline for any substantive move. The commissioner of the Commodity Futures Trading Commission, Caroline D Pham, affirmed that the US should strive to be rule makers, not rule takers.
3. British Man £20k In Bitcoin Investment Scam Turns £19: Report
A report from The Royal Borough Observer on Friday reveals that a resident of Thames Valley in South East England has lost £20k (approximately $24k) in a fraudulent Bitcoin investment scheme.
The report reveals that this is the second case in the community in the last two weeks.
The unnamed victim made an initial investment of £200 (approximately $241) before being urged to invest more by the company, upon which he transferred an additional £20k to the firm. Afterward, the company informed the victim that his investment had doubled to a whopping £41,532 (approximately $50,139). However, when the victim opted to liquidate his holdings, the company informed him that his account had suddenly depreciated to just £19.18 (approximately $23.16).
The report reveals that when he tried to send the supposed company more funds to recoup his losses, the transaction was flagged by his bank as a possible scam, and his account was frozen. The bank went on to contact the police as per the standard protocol.
It is worth noting that authorities have been unable to convince the victim that the company in question is fraudulent. Authorities explain that these fraudulent investment schemes usually start you up with small amounts so as not to attract the attention of law enforcement, warning community members to be alert.
4. Latest Turkey Inflation Rate of 79.6% the Highest in 24 Years — Weakening Lira and Russia-Ukraine War Blamed
According to the latest data from the Turkish Statistical Institute, the country’s annual inflation rate for the month of July was 79.6%, the highest in 24 years. Rising transportation costs, food and non-alcoholic beverages were some of the product categories that contributed to the overall rate increase.
*Transportation Costs Rose the Most*
Turkey’s consumer inflation rate in July surged to 79.60% — the highest in 24 years — while the monthly rate stood at 2.37%, the latest data from the Turkish Statistical Institute (TSI) has shown. According to the data, transportation costs, which rose by 119.1%, were one of the four main product groups whose prices rose faster than the consumer price index (CPI).
The three other product groups whose inflation rate rose faster than 79.6% are food and non-alcoholic beverages which went up by 94.65%, furnishings and household equipment (88.35%), and alcoholic beverages and tobacco (82.66%).
However, according to the TSI, while the transportation group is noted as the group with the biggest monthly increase, the data shows it is also the only main group that recorded a negative monthly increase — approximately -0.85%. On the other hand, the health group saw the highest monthly increase of 6.98% and is closely followed by the alcoholic beverages and tobacco group which saw an increase of 6.85%.
*Rate of Price Increases Accelerated in 2022*
Although Turkey’s inflation rate had been trending upwards since the year 2021, starting in January 2022, the rate of price increases has accelerated. This can be corroborated by the latest TSI data which shows that since December 2021 prices have increased by an average of 45.72%. At the same point last year, prices had increased by 10.41%, and 6.37% a year before.
Meanwhile, according to a Reuters report, Turkey’s rapidly depreciating local currency, as well as the impact of the ongoing Ukraine-Russia war, are some of the main factors contributing to the rise in prices. Despite the rate’s rise to levels last seen in 1998, the Turkish central bank has reportedly said it expects this to drop to 42.8% by the end of 2022.
5. Will Binance CEO Shut Down WazirX? Should Users Panic
Changpeng Zhao, CEO of Binance came out to clear the company’s stand after Enforcement Directorate raided and froze some assets of WazirX. However, he stressed that they could shut down the troubled crypto exchange.
*WazirX co-founder clarifies*
Nischal Shetty, Co-founder of WazirX has made several statements countering Binance CEO. He mentioned that the “We could shut down WazirX” remark directly proves that CZ holds complete control. While Shetty appreciated that CZ confirmed that the WazirX domain was transferred to Binance’s control.
However, WazirX co-founder also mentioned that they only as Zanmai and asked why CZ is not taking that up.
Nischal Shetty assured that all users’ assets in Crypto and INR on the platform are safe for now. They have always ensured that KYC is conducted and other policies were followed. He added that WazirX only allows bank transfers so every transaction is traceable. However, their database records WazirX to Binance transfer. This key detail is kept between users and accounts.
He further added that with off-chain transfer options, a user can only send assets to their own account. However, there is a KYC for those transfers only. Shetty mentioned that whenever the authorities have asked for details, WazirX has always complied with it.
6. Will Binance CEO Shut Down WazirX? Should Users Panic
Changpeng Zhao, CEO of Binance came out to clear the company’s stand after Enforcement Directorate raided and froze some assets of WazirX. However, he stressed that they could shut down the troubled crypto exchange.
*WazirX co-founder clarifies*
Nischal Shetty, Co-founder of WazirX has made several statements countering Binance CEO. He mentioned that the “We could shut down WazirX” remark directly proves that CZ holds complete control. While Shetty appreciated that CZ confirmed that the WazirX domain was transferred to Binance’s control.
However, WazirX co-founder also mentioned that they only as Zanmai and asked why CZ is not taking that up.
Nischal Shetty assured that all users’ assets in Crypto and INR on the platform are safe for now. They have always ensured that KYC is conducted and other policies were followed. He added that WazirX only allows bank transfers so every transaction is traceable. However, their database records WazirX to Binance transfer. This key detail is kept between users and accounts.
He further added that with off-chain transfer options, a user can only send assets to their own account. However, there is a KYC for those transfers only. Shetty mentioned that whenever the authorities have asked for details, WazirX has always complied with it.
7. BTC Exchange Balance Hits the Lowest Level in 4 Years
Bitcoin investors are moving their digital assets away from crypto exchanges.
On Saturday, BTC stayed above the price level of $23,000.
The world’s largest cryptocurrency, Bitcoin (BTC) is currently going through a substantial price recovery after losing almost 70% of its value in the past eight months. Amid the latest market recovery, the BTC balance on leading digital exchanges is plunging.
According to Glassnode, an on-chain analytics platform, the Bitcoin exchange balance reached 2.37 million BTC on Friday, the lowest level since July 2018. Coinbase suffered the most due to the recent balance dip. In July 2022, Binance became the digital exchange with the largest Bitcoin holdings.
On 6 August 2022, BTC stayed above $23,000 after a jump of approximately 2%. Institutional interest in the world’s most valuable digital asset has increased in the last few days. In the last week of July 2022, BTC investment products witnessed inflows worth $85 million.
So far this year, BTC investment products attracted $326 million worth of inflows, compared to outflows of $314 million from ETH products.
