News updates June 04, 2022

1. Bitcoin price analysis: BTC continues to respect $29,500, reversal to follow? Bitcoin price analysis is bullish today as we have seen another rejection for downside yesterday and steady consolidation since. Therefore, BTC/USD should soon start to reverse and look to move back above the $31,000 major resistance. 

The market has traded mostly in the green over the last 24 hours, despite Bitcoin experiencing a slight decline of 0.12 percent. Ethereum gained 0.55 percent, while the rest of the top altcoins followed close by.

Bitcoin price movement in the last 24 hours: Bitcoin consolidates 

above $29,500
BTC/USD traded in a range of $29,375.69 to $29,876.26, indicating a moderate amount of volatility over the last 24 hours. Trading volume has declined by 20.65 percent, totaling $23 billion, while the total market cap trades around $566.45 billion, resulting in a dominance of 46.24 percent.

BTC/USD 4-hour chart: BTC prepares to push higher?
On the 4-hour chart, we can see bulls steadily taking over the momentum as further downside could not be reached overnight. 

Bitcoin price action has seen swift retracement over the past days. From the previous high set at $32,250 on 31 May 2022, BTC/USD has already retraced over 9 percent to the $29,500 low.

From there, BTC attempted to continue higher during the middle of the week. However, bullish momentum ended as soon as the $30,500 mark, meaning a strong lower local high was set.

 
Bearish momentum returned soon after, pushing back to the $29,500 previous low and briefly testing below it. Since support was found around the same area, we can see that a double bottom reversal pattern is set, meaning more upside should soon follow.

Bitcoin price should next start moving higher as a result of this price action development. Most likely, we will see another attempt to break past $31,000 over the next days, which should open the way for a lot more upside later in June.

Bitcoin price analysis: Conclusion 
Bitcoin price analysis is bullish today as we have seen failure to break significant further lows over the last 24 hours. Therefore, BTC/USD should reverse from the $29,500 mark and look to head higher by the end of the weekend.

2. No Bitcoin Recovery Soon? Net Outlows Breach $698 Million. 

No Bitcoin Recovery Soon? Net Outlows Breach $698 Mln
By Ashish Kumar7 hours ago.
 
The Bitcoin (BTC) again dropped below the crucial price level of $30k. Recently, BTC went on to touch the $32K price level. However, experts called it bear fakeout and mentioned not to fall for it. Meanwhile, the pundits have suggested that this bear market condition can continue further.

Bitcoin is trading at an average price of $29,700, at the press time. As per Glassnode, around $1.3 billion has been flown out of Bitcoin. However, the net outflow stands at $698 million. Meanwhile, the global crypto market is also down by around 2% over the past day. It stands at $1.23 trillion.

3. South Korean police charge man with using social media data leak to steal crypto, Forkast says.

South Korean police said earlier this week that they had arrested a man in his 30s on fraud charges involving the theft of about $658,000 in cryptocurrencies through personal data leaked on a social media platform called Naver Band, Forkast reported.

The victims’ personal data, including crypto exchange account information, was said to be mistakenly exposed by an administrator on the social media platform.

About 90 people had crypto taken between January and May, the report said, with one victim claiming to have lost more than $400,000.

Criminal cases involving cryptocurrencies in South Korea have been increasing, according to police, with victims numbering 8,891 in 2021, up from 388 in 2018, the report said.

4. Fed governor explains who needs crypto regulation and why demand for it is growing
Experienced investors know how to survive, Christopher Waller reasons, but there can be wide repercussions when small investors are hit with losses.

Regulation is needed to open the crypto ecosystem to a larger public, United States Federal Reserve Board Governor Christopher Waller told an audience at the SNB-CIF Conference on Cryptoassets and Financial Innovation in Zurich, Switzerland. Financial intermediaries can help manage risk for new crypto users, but cannot eliminate it, Waller said, and new and fast-growing financial products need public confidence to survive.

The banking official used historical examples to show the relationship between technical innovation, regulation and the amassing of fortunes. “New technology — and a lack of clear rules — meant some new fortunes were made, even as others were lost,” Waller said.

Experienced investors know how to operate in unregulated marketplaces and may not need or want regulation, Waller continued. He pointed to a recent Fed survey that showed that even with the explosive crypto-assets in recent years, only 12% of American adults own crypto, and 99% of them hold it for investment purposes.

5. Cryptocurrency Tax in India for Certain Transactions Likely To Be Exempted.

The Indian government’s Ministry of Finance will likely announce the crypto tax in June. Hospitals that employ Blockchain technology and also earned points on digital bank cards or flight miles may be exempted from this rule. Cryptocurrency transactions are taxed at 30 percent under the Finance Act, 2022, and 1 percent TDS was added to transfers of digital assets.

The TDS which is currently set at $643 USD, must be paid regardless of whether profits or losses are realized through crypto transactions. This information must be included on the taxpayer’s yearly tax return. According to the rules, gifts of crypto will be taxed in the same way as any other asset.

Uncertainties Over Regulatory Framework
In this year’s annual budget, the government said that it would impose a 30 percent tax on earnings from cryptocurrency investments. Still, the nation has not yet granted legal validity to the policy.

The government will release a consultation document on digital currency in the near future. There may be a delay in putting the legal and regulatory framework in place. According to Economic Affairs Secretary Ajay Seth, financial institutions, including the World Bank and the International Monetary Fund, have been consulted. The consultation document is nearly finished, the bureaucrat said. Seth has been mum about the timing, but the sources say it may be brought to the floor in August of this year.

6. Crypto FUD: Cryptocurrencies Will Be Regulated Harshly or Banned

Crypto FUD stands for Fear Uncertainty and Doubt, which is spread against cryptocurrencies. It is spread as unverified rumors designed to unpopularize the assets. FUDs have been propagated against many innovations and inventions as it is a nature among men to reject and shun what they do not truly understand.

Wikipedia explains FUD as “a propaganda tactic used in sales, marketing, public relations, politics, polling, and cults.” Currently, the crypto space is fighting for acceptance in different sectors, including politics, making FUD so prevalent. One common crypto FUDs goes that cryptos will eventually be regulated harshly or banned. Will they? 

 *Claim*
Many critics of cryptocurrencies have scared people that regulators will clamp down the innovation soon. In 2021, JP Morgan Chase CEO Jamie Dimon, a long-time crypto skeptic, said:

bitcoin has no intrinsic value, and the regulators will regulate the hell out of it.” 

Dimon is not the only person who has expressed that different governments would regulate cryptocurrencies severely. The IMF has also propagated this FUD and gone steps further to intimidate the countries that adopted cryptos. In early 2022, BBC reported that the IMF had said that it would cut the funding for El Salvador since they have adopted BTC as legal tender.

This FUD is one of the greatest ones, as almost everyone who has interacted with the crypto space has come across it. It has been gaining strength over the years in connecting to the China Ban FUD. The China FUD began when it gave warnings to the most prominent crypto services providers of a possible regulatory stunt. 

 *Rating*
Very weak

 *Facts Check*
Crypto regulation FUD has been around ever since the crypto space began. In the early 2010s, most people waited for the governments to give directions on crypto regulation. That reason made many not join the bandwagon since they still did not understand how the innovation worked.

Around 2013, major governmental crackdowns began, and illegal usage of cryptos was unearthed. That made the FUD stronger. By 2017, countries like China had announced a full-blown war against cryptocurrencies. They began investigating and fining crypto platforms a few years later.

Since then, several governments have released their regulatory stance on crypto. El Salvador and the Central Africa Republic have adopted BTC as legal tender. The US, UAE, Russia, and India have revealed that they are not banning cryptos. A few weeks ago, 44 countries met in El Salvador to discuss Bitcoin and crypto adoption. However, a few countries have already banned crypto along the way.

 *The Truth About the Claim*

The claim that cryptocurrency will be regulated cruelly or lead to too many bans is almost off the table now. It was strongest in 2017-2020 when significant regulatory steps and stances were not revealed. Now, regulatory steps have been taken, and the crypto market has reacted in better ways than most skeptics would have expected.

Two countries have adopted Bitcoin as their legal tender, while others have allowed some cryptos to be traded. Countries like UAE and France have even licensed DASPs to serve in their regions freely. For instance, France has licensed Binance to offer crypto services there. Dubai has also approved a few crypto platforms, including FTX, to offer crypto services.

While the China FUD was expected to culminate with significant repercussions for the crypto space, it became easily forgettable. China had the largest hash rates of most cryptos, which made people fear that a blanket ban could collapse the crypto market. However, only the opposite happened as the crypto market surpassed $3T in market cap two months after the ban.

These developments show that crypto regulatory FUD should already be a thing of the past. Crypto will stay but in a safely regulated manner!

7. Tesla CEO Elon Musk Has ‘Super Bad Feeling’ About US Economy — Biden Responds

Tesla and Spacex CEO Elon Musk says he has a “super bad feeling” about the U.S. economy. President Joe Biden responded with a list of major investments by large corporations and wished Musk luck on his trip to the moon.

8. Dubai Property Developer Completes Real Estate Deals Worth $50M via Crypto

According to an executive with the Dubai-based DAMAC Properties, the real estate development “company has already succeeded in concluding real estate deals worth $50 million via cryptocurrencies since the beginning of this year.” The executive, however, says his company is facing challenges convincing the older generation decision-makers to buy into the metaverse, non-fungible tokens, and cryptocurrencies.

9. Formula 1 Going Crazy for Crypto

Formula 1 (F1), one of the most popular forms of racing around the globe, has gone crazy for all things crypto over the last several years. 

According to a report by CNN, F1 has continued to embrace cryptoassets, despite the market imploding over the past few weeks. Of the ten F1 teams racing in the high-profile international series, eight have a crypto-related sponsor.

10. After Terra, Many Cryptocurrencies could See Major Crash in Coming Days

According to a recent analysis, there are more than 19,000 crypto tokens floating around the different crypto exchanges globally. whereas several digital asset industry giants believe that the status of the market is still uncertain.

In the future few tokens may disappear from the crypto market which currently exists, says the summary of a CNBC report. Similarly, we can not ignore the bear market conditions of existing stablecoins.