News Updates March 14, 2022
1. Bitcoin's Hashrate Jumps 15% Higher in 10 Days, Mining Difficulty Expected to Rise
After bitcoin miners caught a break ten days ago when the difficulty dropped 1.49% lower, the network’s hashrate increased more than 15% since then. Currently, the processing power has been coasting along above the 200 exahash per second (EH/s) zone but another difficulty increase is expected to occur in less than four days.
2. Bitcoin Consolidates Above $37.5K, Why BTC Could Nosedive:
Bitcoin is trading in a bearish zone below $39,000 against the US Dollar. BTC could accelerate lower if it continues to struggle below $39,500.
* Bitcoin is showing bearish signs below the $40,000 and $39,000 levels.
* The price is trading below $39,500 and the 100 hourly simple moving average
* There is a crucial bearish trend line forming with resistance near $38,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
* The pair might accelerate lower unless the bulls able to push the price above $39,550.
Bitcoin Price Keeps Struggling:
Bitcoin price remained in a bearish zone below the $40,000 support zone. BTC attempted a recovery wave from the $38,500 zone, but the price stayed below the$39,550 resistance.
Recently, the price saw a fresh decline from the $39,550 resistance zone and the 100 hourly simple moving average. There was a clear move below the $38,800 and $38,500 support levels. The decline extended below the $38,000 support zone.
A low is formed near $37,625 and the price is now consolidating losses. Bitcoin is slowly moving higher and trading above the 23.6% Fib retracement level of the recent decline from the $39,499 swing high to $37,625 low.
The first major resistance on the upside is near the $38,550 zone. There is also a crucial bearish trend line forming with resistance near $38,550 on the hourly chart of the BTC/USD pair. The trend line coincides with the 50% Fib retracement level of the recent decline from the $39,499 swing high to $37,625 low.
More Losses in BTC?
If bitcoin fails to clear the $38,550 resistance zone, it could continue to move down. An immediate support on the downside is near the $37,800 zone.
The next major support is seen near the $37,650 level. The main support sits near the $37,150 level. If there is a downside break below the $37,150 support, the price might gain bearish momentum. In the stated case, it could nosedive towards the $36,500 level or even $36,000.
3. Russian Cryptocurrency Volumes Across Several Exchanges Dip By 50%
Regardless of the growing economic sanctions against Russia, the volume of cryptocurrencies bought using Rubles across several major cryptocurrency exchanges plummets drastically.
According to data from blockchain-data aggregators display, Russian collateralizing crypto trading across significant crypto exchanges is dropping badly. This debunks the idea that Russia will leverage crypto assets in maneuvering sanctions.
Last week, when the Bitcoin price surged more than 15%, some crypto pundits proposed that the rally was related to Russians purchasing crypto assets amid the growing economic sanctions.
1) Citigroup Analyst Comments On The Cryptocurrency Situation:
Commenting on the topic of sanctions-focused crypto buying to Bloomberg. Alexander Saunders-Citigroup analyst responded that the trading volumes have been comparatively small recently. However, he also proposed that this PA is higher because of traders and investors preparing for an anticipated increasing demand from Russia instead of the country demanding for itself.
Regardless of pundits’ debunking, cryptocurrency could be essential to aid Russia in circumventing sanctions. But unfortunately, the EU (European Union) and the United States are still spurring their regulatory assessments of cryptocurrencies.
2) Governor Of New York Against Russian Collaborations With The State;
On February 27, Kathy Hochul, the governor of New York, gave an executive order informing agencies to terminate all collaborations with Russian companies and institutions, even entities and bodies that provide them assistance.
In her statement, she highlighted that New York is home to the country’s largest Ukrainian population. And will use all technological assets to safeguard her people, thus showing Russia that they will be held accountable.
The Blockchain Associations’ Head of Policy in the United States – Jake Chervinsky, described their worries as “totally unfounded. In his tweet, he explained his perspective of the ongoing situation.
He stated that Russia can’t and won’t be able to utilize cryptocurrencies to evade economic sanctions. Chervinsky buttressed that these worries misunderstand: how sanctions operate, how cryptocurrency markets work, how Putin aims to mitigate sanctions, etc.
Ari Redbord, the Head of Legal and Government Affairs at TRM Labs, also commented on bolstering this perspective further. He explained that currently, it’s too later for Russia to use cryptocurrencies to handle its sanctions.
4. Singapore Says Its New Tax Rules Also Apply To NFT Transactions
Singapore Finance Minister Lawrence Wong announced that the country’s income tax rule also extends to income from all forms of non-fungible token (NFT) transactions. It means that those trading in NFT or carrying out any related transactions are expected to pay tax. However, the income tax rule will be treaded based on the use and nature of the NFT.
5. Canadian Cops Confiscate Bitcoin Worth Over $28 Million From Ex-Gov’t Employee
Sebastien Vachon-Desjardins — a former Canadian government IT professional — was charged with conspiracy to commit computer and wire fraud, and other offenses in a federal court in Florida, the US Department of Justice said.
The Royal Canadian Mounted Police (RCMP) raided Vachon-Desjardins’s home and seized 719 bitcoins worth more than $28 million, or 790,000 in Canadian currency.
6. Bank of Israel Issues Draft Regulations Regarding AML for Crypto Firms
The Bank of Israel has issued a new draft guideline to stakeholders in the cryptocurrency ecosystem concerning Anti-Money Laundering (AML) provisions.
According to the press release published by the bank, the new guideline becomes necessitated with the growing number of funds flowing into the traditional banking system through the crypto ecosystem.
According to the new guideline, the Bank of Israel will mandate financial institutions operating in the country to “conduct a risk assessment and set out policy and procedures for the transfer of money that originates in or is destined for virtual currencies, taking a risk-based approach and identifying the virtual currency service provider.”
7. Banning Bitcoin Would Be "Trillion Dollar Mistake," Says Michael Saylor
MicroStrategy CEO Michael Saylor has cautioned EU lawmakers against banning Bitcoin
In a recent tweet, Michael Saylor, chief executive officer of business intelligence firm MicroStrategy, has weighed in on the most recent version of the European Union’s cryptocurrency bill, which aims to limit the use of the proof-of-work consensus mechanism.
Saylor described the initiative as “a trillion-dollar mistake," channeling other prominent members of the cryptocurrency industry who have spoken out against the damning provision.
8. US Creates New Crypto Task Force To Choke Flow Of Russian Billionaires’ Money;
As the United States and its allies intensified sanctions on Russia for its invasion of Ukraine, the US Justice Department reports the creation of a new task force that will go after crypto exchanges helping move Russian oligarchs’ money.
According to a statement made by the Department of Justice on Thursday, the “Kleptocapture” task force would be composed of professionals in export control enforcement, anti-money laundering, asset forfeiture, tax enforcement, and overseas evidence gathering.
It will be overseen by a seasoned US corruption prosecutor from the Southern District of the New York Attorney’s Office.
1) Crypto Platforms Back Sanctions;
The leading crypto-trading platforms, such as Coinbase and FTX, claim to be in compliance with sanctions and already follow the precise standards of conventional financial institutions to gather data on their users and identify suspicious dealings.
In this regard, Coinbase, a San Francisco-based cryptocurrency exchange, announced last Monday that it had blocked 25,000 accounts linked to Russian users it suspected of engaging in illegal activity.
The U.S. Treasury Department also issued a Financial Crimes Enforcement Network (FinCEN) advisory, urging financial institutions, such as those indicated above, to be “vigilant” of Russian oligarchs and government entities seeking to dodge sanctions via the use of bitcoin.
Over the previous week, cryptocurrency exchanges throughout the globe have been pressured to ban transactions with Russia. However, trade between the Russian ruble and cryptocurrencies has more than quadrupled since the attack on Ukraine started.
2) Sanctions Wobble Russia And Its Currency:
The Ruble fell versus the dollar in early trade. Fears of bank runs in Russia are mounting as the devaluation threatens to accelerate inflation, which some say is currently as high as 70%.
To halt the Ruble’s decline, Russia’s central bank hiked its benchmark interest rate to 20% on Friday. Foreigners are not authorized to sell domestic securities in Russia, while local exporters are compelled to liquidate a significant portion of their foreign currency holdings.
