News updates March 09, 2022
1. Bitcoin Price Suddenly Spikes to Nearly $42,000
Bitcoin has surged to the highest level since March 4.
The cryptocurrency has surged 5.63% in just one hour. Bitcoin, however, is still far from reclaiming its March 2 peak of $45,332.
The market cap of the flagship coin currently stands at $788 billion.
2. Thailand Approves Tax Relief For Bitcoin, Crypto
Thailand’s cabinet eased tax regulations on Tuesday for investments in Bitcoin and other cryptocurrencies in order to fully develop the second-largest growing economy in Southeast Asia, according to an official press release.
A 7% VAT for authorized exchanges, as well as the ability to offset one’s annual losses for taxes due to bitcoin and other cryptocurrencies aims to help incentivize further trading and investment strategies in the fast-growing economy.
3. Crypto Trading in Russia Rises Again as Price Discounts Emerge
Trading in bitcoin (BTC) and the stablecoin tether (USDT) is once again rising in Russia, with trading volume on both coins on Monday breaking their highs from the start of the war in Ukraine. Meanwhile, price discounts have emerged on Russian ruble (RUB) trading pairs, while Ukrainians are forced to pay a premium to move their money into crypto.
4. Chinese police bust illegal crypto mining farm, seize 190 miners
The secret crypto mining farm was busted in the city of Guangzhou, where law enforcement agencies have constantly been making inspections around cities to enforce and eradicate any form of mining operations in the region, reported a local publication.
The covert mining operation used over 190 crypto mining machines estimated to be worth 5 million yuan ($7,91,450), which were seized on the spot. The authorities claimed that even though mining operations consume a lot of energy, they remained hidden from the authorities because of the high power consumption of the charging station they were operating in.
The mining operations were reportedly being carried out in a closed-door location with a guard at the gate along with fences and walls to hide it from plain sight. The mining farm was operational for over 1,000 hours and had consumed more than 90,000 kilowatt-hours of electricity.
5. Thailand Considers Opening Crypto Payments for Russian and Ukrainian Tourists
Following Mastercard and Visa suspension of Russian credit cards abroad based on international sanctions, Thailand is looking at accepting cryptocurrency payments to help Ukrainian, and Russian tourists transact, according to local outlet Thai Enquirer.
Bhummikitti Ruktaengam, the Phuket Tourist Association (PTA) President, confirmed that they were in talks with the Bank of Thailand to accept crypto as an alternative payment option for Ukrainian and Russian tourists.
6. Joe Biden’s Leaked Executive Order Has Got the Crypto Market Rolling, Janet Yellen Praises
Joe Biden’s executive order on crypto has been leaked just a day before its scheduled arrival on Wednesday, March 9. In fact, crypto enthusiasts have got access to the comments from U.S. Treasury Secretary Janet Yellen.
As per the details given, Yellen applauds the crypto executive order calling it ‘historic’ and the one that strikes the balance between responsible innovation and addressing consumer protection needs.
Well, the news has got the crypto market rallying with Bitcoin (BTC) price shooting over 7% in the last few hours. Bitcoin is back above $41,500 as the broader cryptocurrency market registers 6% gains.
7. Pakistan’s Central Bank Sees Few Good Use Cases for Crypto Citing ‘a Lot of Misuses’ Worldwide
The central bank of Pakistan does not see many good use cases for crypto. However, the regulator cites “a lot of misuses” of cryptocurrency around the world, “including human rights violations, trafficking of people, money laundering, and many other things.”
The governor of the State Bank of Pakistan (SBP), Reza Baqir, talked about cryptocurrency during a panel discussion at the 13th Karachi Literature Festival Sunday, Dawn newspaper reported.
8. Indian Finance Minister Sees "Clear Advantages" in CBDC
India’s Finance Minister, Nirmala Sitharaman, has hailed the Central Bank Digital Currency (CBDC) being developed by the Reserve Bank of India (RBI).
Speaking at the India Global Forum’s annual summit, the minister said the decision to develop the Digital Rupee project was based on consultation between the RBI and the government, noting both parties see a clear advantage in the initiative.
With 2022 being the targeted timeline according to the minister, the development of the CBDC will now trail-related projects from other advanced economies around the world, including China, Singapore, and Japan, amongst others.
India has taken a long route in relation to its handling of digital currencies and the eventual decision to float its own digital currency.
9. 5 Ways Inexperienced Crypto Investors Can Weather Highly Volatile Markets:
The last few weeks have been a rollercoaster for crypto investors. Global economic woes combined with Russia’s invasion of Ukraine have rocked global markets, and crypto wasn’t spared.
Let’s take a look at five ways inexperienced crypto investors can weather the markets during this crazy time.
1) Move into safe-haven assets:
If the market’s current volatility is scaring you, arguably the easiest thing to do is to move your digital funds into assets that are considered to be safe-haven. However, it’s important to understand that even safe-haven assets only decrease risks and do not eliminate them. In either case, in the crypto markets, safe-haven assets would be stablecoins (for the very risk-averse), gold-backed tokens, and bitcoin (BTC).
While crypto investors are typically not fans of fiat currencies, moving your funds into stablecoins like tether USD (USDT) or USD coin (USDC) should prevent losses from a significant correction in the crypto markets. Yes, US inflation is growing but it’s not likely to affect your portfolio if you hold your funds in dollar stablecoins for a few weeks.
Finally, you could also move your portfolio into bitcoin. Yes, bitcoin regularly acts like a risky asset, but when the war broke out in Ukraine, bitcoin outperformed many major cryptoassets, and, after a couple of volatile weeks, is trading higher than on the day the war started.
2) Move into stablecoins and buy the dips:
If you believe that the crypto markets will continue to rally after this volatile time period, you could move your funds into stablecoins and start buying the dips to rebuild your digital asset portfolio.
Buying the dip refers to investing in a digital asset every time it drops in price. The thought behind that is to get in while it’s cheap(er) as opposed to making a large one-off investment in the asset.
3) Dollar-cost average (DCA) and “chill”
Arguably one of the best ways to invest in crypto during times of high market volatility is to dollar-cost average bitcoin or any other cryptoassets you believe will increase in value over time.
Dollar-cost averaging bitcoin involves buying a fixed amount at regular intervals regardless of what price the cryptocurrency is trading. The idea behind this investment strategy is to smooth out market volatility by buying small amounts at regular intervals, thus investing in BTC at an average price.
4) Hedge with crypto derivatives:
If you are comfortable exploring the world of derivatives, you could use crypto derivatives to hedge your portfolio and mitigate losses.
Crypto derivatives, such as futures and options on BTC or ETH, enable investors to hedge their digital asset portfolios by acting as a form of insurance against dropping prices.
For example, you could short bitcoin futures to make a profit on your futures position if the market (and the value of your crypto portfolio) drops significantly, offsetting the losses with the derivatives position.
Alternatively, you could also hedge your crypto portfolio with options on bitcoin or ethereum (ETH). However, options trading is more complex than futures and may be too challenging for inexperienced investors.
Those willing to put in the time to learn, however, could buy a BTC put option that will be “in the money” at a specific price, at which point the options position would offset losses if the value of your crypto portfolio drops significantly. Again, calculating the hedge ratio is essential when using options or any other kind of financial derivative to hedge your portfolio.
HODL:
The old HODL “war cry” that Bitcoiners cite on a daily basis could actually be good advice during volatile times, especially if you are holding high-quality digital assets, such as BTC.
If you are confident about the long-term performance of the digital currencies and tokens you are holding in your portfolio, you could just keep “HODLing” them and wait out this volatile period before you make any adjustments to your portfolio.
If your portfolio is largely composed of bitcoin, then that’s probably the best thing to do.
Whatever you choose to do, remember that volatility is part of the game in the global crypto markets. Your digital asset portfolio can easily go up or down 10% or more from day to day. That’s normal in crypto.
10. Bitcoin price prediction after the strong comeback:
* Bitcoin price has jumped sharply in the past few days.
* It has managed to cross the key resistance at $40,000.
* The rally is likely because of easing tensions in Ukraine.
The Bitcoin (BTC/USD) price jumped sharply in the overnight session even as global tensions rose. The coin is trading at $41,485, which is substantially higher than this week’s low of $37,170. It is substantially lower than the all-time high of about $67,000.
Cautious recovery:
The Bitcoin price rebounded even as global risks rose. On Tuesday, the United States and the UK announced that they will stop importing Russian oil and gas as a way of punishing Putin for his invasion of Ukraine. As a result, crude oil prices soared to the highest level in more than 14 years while stocks dropped initially.
There are several possible reasons why the Bitcoin price bounced back. First, there is a possibility that the Federal Reserve will go slow on rate hikes if the risks of a recession rise. Still, the bank is between a rock and a hard place considering that inflation is so high while the labor market is tightening.
Still, analysts expect that the Fed will deliver its first interest rate hike since the pandemic started next week. The degree of expectations is varying, with some analysts expecting a 0.25% increase while others see a 50 basis point increase.
There are several possible reasons why the Bitcoin price bounced back. First, there is a possibility that the Federal Reserve will go slow on rate hikes if the risks of a recession rise. Still, the bank is between a rock and a hard place considering that inflation is so high while the labor market is tightening.
Still, analysts expect that the Fed will deliver its first interest rate hike since the pandemic started next week. The degree of expectations is varying, with some analysts expecting a 0.25% increase while others see a 50 basis point increase.
Second, the BTC price rose as the Ukrainian crisis appeared to ease. On Tuesday, the Ukrainian president said that he was ready to compromise on the two breakaway regions. He also said that the country could compromise on its NATO membership deal. And a ceasefire between the two sides appeared to ease.
Meanwhile, the performance also mirrors that of American stocks as futures like Dow Jones and Nasdaq 100 have all risen.
At the same time, analysts believe that we are now entering a new financial world order with the cancellation of Russia.
Bitcoin price prediction:
The BTC price jumped sharply on Wednesday morning. This performance then led to a sharp rally of other altcoins like Monero and LUNA. On the four-hour chart, the coin has managed to move slightly above the 25-day and 50-day moving averages while the MACD has moved above the neutral level.
Therefore, there is a likelihood that the Bitcoin price will hold steady in the next few days. If this happens, the next key level to watch will be at $45,000.
Where to buy right now:
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