News updates January 26, 2022

1. Seven critical things about the upcoming Joe Biden executive order on cryptocurrencies. 

President Joe Biden is preparing an executive order to set policies and regulate digital assets in the United States. 
The directive is expected to be released as early as next month. 
There are no specific details yet, but previous activities by the Joe Biden administration of crypto show the government is serious about regulating the industry, as officials see the asset class as a means used by criminals to finance illicit activities. 
Federal agencies will be directed to discuss the risks and opportunities posed by cryptocurrencies. 
The Fed’s advice will be combined with guidance from the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and Office of the Comptroller of the Currency (OCC), in a bid to develop the executive order. 
Senior officials of Joe Biden’s administration have met several times to discuss and finalize the details of the executive order, and a report is expected to be issued to the president in a few weeks. 
The executive order will put the White House at the center stage of regulating cryptocurrencies in the U.S. 

2.Bitcoin, Ethereum Technical Analysis: BTC Bounces Back After Monday’s Selloff

Following Monday’s selloff, cryptocurrency markets mostly rebounded across the board, with bitcoin and ethereum prices rallying by as much as 10%. Overall the global crypto market cap was over 6% higher from yesterday’s session.

Bitcoin
Bitcoin, which fell to an intraday low of $33,184.06 during yesterday’s session, was up close to 9% as of writing, hitting a high of $37,247.52 in the process.

After a false breakout from its support level of $34,170 to start the week, today’s move saw BTC/USD climb from this point, with some anticipating the potential for a rally towards resistance of $40,000.

Looking at the chart below, BTC bulls appear to have re-entered as many expected at this level, similar to July’s move, however with the RSI still oversold, many remain skeptical of a full scale bull run.

3. Fearing a Hawkish Fed: Economists Focus on Upcoming FOMC Meeting as Global Market Rout Slows

Global markets have been feeling the pressure of fear and uncertainty, as the upcoming Federal Open Market Committee (FOMC) plans to make a decision on Wednesday concerning changing the current monetary easing policy and raising the benchmark interest rate. Economists and market analysts fear the hawkish Federal Reserve will tighten markets too fast after the central bank expanded the U.S. monetary supply like never before in history.

Allianz Chief Economic Adviser: ‘Fed Maintained Its Transitory Inflation Narrative for Way Too Long’
All eyes are on the Federal Reserve this week and the conversation has turned into speculation about the upcoming FOMC meeting. The committee will make a decision on Wednesday at 2 p.m. (EST) which will be followed by a press conference from the central bank chairman Jerome Powell. Last week global stocks were roiled and dropped significantly, while crypto markets followed the same path as the crypto economy shed billions in value. Precious metals like gold and silver managed to stave off the market rout, and both metals are up a few percentages over the last 30 days.

4. IMF Urges El Salvador to Drop Bitcoin Tender Law, Executive Board Report criticizes BTC Bonds, Chivo Wallet

The International Monetary Fund (IMF) has been very critical of cryptocurrencies and according to a report on Tuesday, the IMF’s board has “urged” El Salvador to discontinue its bitcoin tender status. A few members of the IMF’s board said the country’s decision to leverage bitcoin within its financial system could pose risks.

IMF Report Attempts to Persuade El Salvador to Drop Bitcoin Legal Tender Status, Director’s Are Concerned About Bitcoin Bonds and Chivo Wallet’s Regulatory Oversight
According to a report published by the IMF, a global financial institution that promotes financial stability and economic growth, the organization believes El Salvador should end its relationship with bitcoin (BTC). The report notes that El Salvador is being “urged” by the IMF board directors to do away with the bitcoin law as soon as possible.

5. Crypto Ban Proposed by Bank of Russia Met With Opposition in Parliament, Government

The central bank’s push for a restrictive policy regarding cryptocurrencies is not gaining support among members of the Russian government, legislature, or law enforcement. A blanket crypto ban, as proposed by the bank, would make a laughingstock of Russia, lawmakers have warned

Bank of Russia’s Hardline Stance on Crypto Rejected by Other Russian Institutions
The Central Bank of Russia’s lobbying for prohibitive legislation on cryptocurrencies has not been met with understanding by other government bodies, Russian media revealed. Last week, the regulator published a consultation paper urging for a wide-ranging ban on crypto activities, including the use, exchange, and mining of digital coins.

However, the Russian government, parliament, and even law enforcement departments such as the Ministry of Internal Affairs (MVD) and the Federal Security Service (FSB) are not willing to back the proposals of the monetary authority, Lenta.ru reported, quoting two high-ranking member.

6. Indonesia's Regulator Prohibits Financial Firms From Facilitating Crypto Trading

Indonesia’s Financial Services Authority (OJK) has prohibited financial firms from using, marketing, and/or facilitating crypto trading. The financial regulator also cautioned the public to always beware of fraudulent Ponzi schemes under the guise of crypto.

Indonesian Regulator’s Crypto Warning
Indonesia’s Financial Services Authority (OJK), the Jakarta-based government agency which regulates the financial services sector, warned Tuesday that financial firms are not allowed to offer or facilitate sales of crypto assets.

The warning was conveyed by the chairman of the OJK Board of Commissioners, Wimboh Santoso, on the regulator’s official Instagram account. The OJK was quoted by Reuters as saying:

OJK has strictly prohibited financial service institutions from using, marketing, and/or facilitating crypto asset trading.

7. Elon Musk Tempts McDonald's to Accept Dogecoin — McDonald's Replies 'Only if Tesla Accepts Grimacecoin'

Tesla CEO Elon Musk says that he will eat a happy meal on television if McDonald’s accepts the meme cryptocurrency dogecoin (DOGE). However, McDonald’s replied, “only if Tesla accepts grimacecoin.” Musk’s statement followed a tweet by McDonald’s asking how crypto Twitter is doing

Elon Musk Tries to Tempt McDonald’s to Accept Dogecoin
Tesla and Spacex CEO Elon Musk offered to eat a McDonald’s happy meal on television if the fast-food restaurant chain accepts dogecoin (DOGE) in a tweet Tuesday.