News updates May 01, 2022

1. Bitcoin price analysis: BTC retests $38,000 support, push higher next? 

* Bitcoin price analysis is bullish today.

* BTC/USD continued to retrace yesterday.

* Support at $38,000 still holds.

Bitcoin price analysis is bullish today as we expect a higher local low to be set and another push higher to follow. Likely BTC/USD will return above $39,200 and look to set a higher low early next week.

The market has seen decline continue over the last 24 hours. The leader, Bitcoin, lost 0.93 percent, while Ethereum lost 1.1 percent. The rest of the top altcoins declined even further.

 *Bitcoin price movement in the last 24 hours: Bitcoin finds support above $38,000 again*

BTC/USD traded in a range of $38,235.54 to $39,019.71, indicating mild volatility over the last 24 hours. Trading volume has declined by 25.94 percent, totaling $23.13 billion, while the total market cap trades around $733.9 billion, resulting in a dominance of 42 percent.

 *BTC/USD 4-hour chart: BTC ready to return above $39,000?*

On the 4-hour chart, we can see the Bitcoin price action looking to reverse as further downside gets rejected again.

Bitcoin has continued to test further downside this week. From the last major swing low at $48,000, set on 28 March 2022, BTC/USD declined over 20 percent to the $38,000 mark.

Therefore, the overall bearish momentum has likely become exhausted. Potentially the current slightly lower low is a good indication that a major reversal is due next week.

The current slightly higher low could serve as the base from which Bitcoin price action sets higher high over the next days. In this case, the several-week downtrend could finally come to a halt.

 *Bitcoin price analysis: Conclusion* 

Bitcoin price analysis is bullish today as we have seen a slowdown from the previous day’s decline. Therefore, the $38,000 mark offers enough support to reverse the market again, leading to a higher local low set over the next 24 hours.

While waiting for Bitcoin to move further, see our articles on How to stake Shiba Inu on Metamask, How to buy Ankr, and Is Safuu a good investment in 2022.

2. India Exploring Commercial Uses for Central Bank Digital Currency, Says Finance Minister:

The Indian government is exploring “several commercial use purposes and not just financial inclusion” for its central bank digital currency. India’s finance minister clarified that the aim is for the digital rupee, which will be backed by the Reserve Bank of India (RBI), to be issued by 2023

 *India’s Finance Minister on RBI-Backed Digital Currency*

Indian Finance Minister Nirmala Sitharaman talked about the country’s central bank digital currency (CBDC), the digital rupee, this week at a business roundtable on “Investing in India’s Digital Revolution” in San Francisco.

The event was organized by the Federation of Indian Chambers of Commerce & Industry (FICCI), a non-governmental trade association and advocacy group based in India. It was hosted by the U.S.-India Strategic Partnership Forum (USISPF).

Reiterating that the government and the Reserve Bank of India (RBI) aim to introduce India’s central bank digital currency in 2023, the finance minister described:

She noted that financial inclusion “is largely achieved through the JAM trinity (Jan Dhan-Aadhaar-Mobile).” The minister of finance previously claimed: “The JAM trinity concept of the Narendra Modi government helped to reach the farthest person in the country.”

Sitharaman emphasized that the Indian government maintains a consistent digital push across all industries. She stressed: “Central bank digital currency, digital banks, and digital university were announced in the Union Budget. There is a continuous digital nudge by the government across sectors.”

Meanwhile, the Indian government is working on the country’s crypto policy. The finance minister said this week that the decision will not be rushed through. RBI Deputy Governor T. Rabi Sankar said the central bank would go about launching a digital rupee “in a very calibrated, graduated manner, assessing impact all along the line.”

Finance ministry officials are also discussing crypto regulation with the International Monetary Fund (IMF) and the World Bank.

3. Bill Regulating Crypto Mining Submitted to Russian Parliament:

A draft law tailored to regulate cryptocurrency mining has been filed with the lower house of Russian parliament, the State Duma. The legislation provides a legal definition for the extraction of digital currencies and envisages the establishment of a register for miners.

 *Russian Lawmakers to Review Legislation Enforcing Rules for Crypto Mining Sector*

The draft of the new federal law “On Mining in Russian Federation” has been submitted to the Duma on Friday, April 29, according to the website of the house. The bill aims to bring the crypto-related industry out of the “grey” economy in Russia, a country rich in energy resources and favorable climatic conditions for mining.

The authors of the bill describe the minting of digital coins as an activity using information infrastructure and equipment located in the Russian Federation, which results in the creation of digital currency. They also introduce legal definitions for the circulation of digital currencies, mining pools and operators mining facilities.

The law provides for the creation of a special register for cryptocurrency miners that will be maintained by an authorized federal body. Private individuals involved in bitcoin mining will be able to register as individual entrepreneurs or self-employed persons if their electricity consumption exceeds certain limits set by the government.

Only registered entities and persons will be allowed to mine, RBC Crypto reported, quoting the document. The operators of mining facilities in Russia will be required to keep records of the minted cryptocurrencies, their types, any contracts with other entities and buyers of the coins, exchange operators, payment systems, and banks.

If deputies in the Duma adopt the law, a one-year “amnesty” will be announced for registered miners, within which they will be able to sort out any outstanding issues with customs clearance for imported hardware, pay relevant taxes and comply with applicable regulations. That includes the recently adopted rules for money transfers outside the Russian Federation.

Russian authorities have been working to develop a comprehensive regulatory framework for cryptocurrencies. A bill “On Digital Currency” has been prepared by the Finance Ministry to fill the legal gaps remaining after the enforcement of the law “On Digital Financial Assets” last year. The department recently revised the draft to clarify certain aspects pertaining to crypto mining. The Russian parliament is expected to approve this law, along with tax amendments, during its spring session.

4. Slovenia Ranks as the World’s Most Crypto-Friendly Nation (Study)

Slovenia has 72 shops and 33 sports venues that accept digital assets as a payment method, and thus it was named the most “crypto-friendly” country.

A research conducted by the aviation company Fast Private Jet estimated that the central European country – Slovenia – is the world’s most crypto-friendly state. Moreover, its capital – Ljubljana – is the most welcoming destination in Europe for digital asset businesses.

 *Central Europe Leads the Way*

The Italy-based aviation firm – Fast Private Jet – performed a global study to determine which countries have the most venues where cryptocurrencies are accepted as a payment method. Slovenia ranked first, while another Central European nation – the Czech Republic – held the second position. Argentina, Japan, Spain, and Colombia rounded up the top 6.

Slovenia has 72 shops and 33 sports venues that accept bitcoin or altcoins as a means of payment. Its capital city – Ljubljana – is also the most crypto-friendly destination in Europe. Currently, it has over 137 businesses and 584 different locations that allow digital asset payments, while its largest shopping center is named “BTC City.”

 *Slovenia Is Among the Most ‘Crypto-Ready’ Countries*

This is not the first time the Central European nation has found its place in similar studies. Last year, the digital asset platform – Crypto Head – determined that Slovenia, with an index of 5.96, is the 7th most “crypto-ready” country.

To perform the research, the company combined several factors, including annual crypto Google searches per 100,000 people and the number of ATMs.

Considering the USA has over 30,000 crypto Automated Teller Machines, it was no wonder that it held the first position. Interestingly, the Mediterranean island of Cyprus ranked second.

5. Bitcoin As Legal Tender? These Countries Are Next After El Salvador and CAR, Says deVere Group CEO:

Financial advisory firm deVere Group CEO Nigel Green expects that at least two more nations will adopt Bitcoin (BTC) as legal tender before the end of the year.

In a new company blog post, Green follows up on his January prediction after news broke that the Central African Republic this week became the world’s second country to formally recognize Bitcoin as currency.

I expect Bitcoin will be adopted as legal tender in at least one more African and one Central or Latin American country before the end of the year.”

Green says that Tanzania is a likely candidate in Africa because in 2021 its central bank disclosed that it was drafting a presidential directive that would address cryptocurrencies.

Regarding nations in the Western hemisphere, the CEO says,

A Paraguayan bill moving to regulate the trading and mining of Bitcoin and cryptocurrencies in the country passed the Senate in December, which is widely being regarded as the first step to making Bitcoin legal tender.

Meanwhile, I’m confident that a Bitcoin bill will be introduced to Mexico’s Congress this year [because several politicians] are going on record as saying they want their country to follow El Salvador’s example.”

El Salvador became the first nation to adopt a crypto asset as legal tender last year.

As to why he expects Bitcoin adoption in specific geographic regions, Green says,

“Adopting cryptocurrency currently is more attractive to those countries with a track record of financial instability.

In nations where the current national currencies don’t work as well as they should as a means of exchange, store of value and as a unit of account… Bitcoin is increasingly seen as the answer.”

The CEO concludes,

“First, El Salvador, now the Central African Republic – and this is just the beginning.”

6. World Economic Forum Shares a Video About Changing Bitcoin's Code to Proof-of-Stake. 

According to a World Economic Forum (WEF) tweet, a “change in the way bitcoin is coded could almost eliminate its environmental impact.” That statement stems from a tweet the WEF published on April 26, with an accompanying video that claims “miners could stake their own bitcoins to verify transactions.”

WEF on Bitcoin’s Proof-of-Work: A ‘Basic Change in Coding” Could Eliminate ‘Most of the Network’s Energy Demands’
In recent times, there have been a lot of arguments about the energy consumption used by cryptocurrency miners and how it impacts the global environment. Politicians and regulators have been targeting the mining industry on a regular basis. Additionally, the environmental global campaigning network Greenpeace, with the help of Ripple Labs co-founder Chris Larsen, started a campaign to get Bitcoin’s code changed so it will be friendlier to the environment. The web portal cleanupbitcoin.com states: 

"You’ve heard Bitcoin fuels the climate crisis, but did you know a software code change could clean it up."

The World Economic Forum (WEF) has shown it agrees with the Greenpeace campaign “Change the Code, Not the Climate.” On April 26, the WEF tweeted about the possibility of Bitcoin changing to a proof-of-stake (PoS) network. The same WEF that has been promoting the ‘Great Reset’ agenda, shared an accompanying video clip that claims “miners could stake their own bitcoins to verify transactions.”

A simple “basic change in coding” could eliminate “most of the network’s energy demands at a stroke,” the video says. WEF’s video mentions the Greenpeace-led ‘Change the Code’ effort and the campaigners who believe the controversial idea is possible.

7. Bitcoin disappoints on bull run as AMZN stock sees biggest 1-day drop since 2014
U.S. market open surprises combine with a weakening dollar to produce confusing conditions for hodlers.

Bitcoin (BTC) fell into the Wall Street open on April 29 as United States markets opened to volatility, including an 11% drop in Amazon stock. 

Data from Cointelegraph Markets Pro and TradingView confirmed BTC/USD dipping to $38,622 on Bitstamp Friday.

Despite a let-up in the U.S. dollar’s relentless bull run, Bitcoin showed little signs of strength as it remained firmly under $40,000.

Macro factors remained against the largest cryptocurrency along with risk assets more broadly, commentators noted, as the Federal Reserve reduced its balance sheet.

The start of #Fed deleveraging? Fed balance sheet has shrunk for the 2nd consecutive week. Total assets now at $8,939bn, equal to 36.6% of US' GDP vs ECB's 82% or BoJ's 137%. pic.twitter.com/0GRR5VgGIe

— Holger Zschaepitz (@Schuldensuehner) April 29, 2022
For Amazon, meanwhile, the pain was immediately obvious as missed earnings targets resulted in AMZN’s biggest intraday loss in eight years.

The S&P 500 traded down 1% at the time of writing, while the Nasdaq 100 was down 0.9%.

Focusing on Bitcoin, popular trader and analyst Rekt Capital argued that the relative strength index (RSI) may need to form a higher low and rebound in order to provide the market with the fuel for a breakout on short timeframes.

8. Solana Goes Dark for 7 Hours as Bots Swarm ‘Candy Machine’ NFT Minting Tool
It wasn’t immediately clear how the bot traffic overcame network safeguards. Solana stakeholders rushed to right the network Saturday night after what one insider called “insane amount of data” flooded the proof-of-stake chain, knocking validators out of consensus and grinding still block production.
Bots had swarmed the popular NFT minting tool known as Candy Machine earlier Saturday with an unprecedented tsunami of inbound traffic: four million transaction requests and 100 gigabits of data every second – a record for the network, one source at the Solana Foundation said.
For reasons not yet clear, this swarm pushed validators out of consensus. Block production became impossible and the network went dark at 4:32 p.m. EST. By 11:00 p.m. EST, validators (coordinating through Solana’s Discord channels and a Google doc created by one of the validators) restarted the cluster at slot 131973970.

9. Rari Fuze hacker offered $10M bounty by Fei Protocol to return $80M loot
DeFi investigator BlockSec’s monitoring system detected a loss of more than $80 million — citing the root cause as a typical reentrancy vulnerability. 

Decentralized finance (DeFi) platform Fei Protocol offered a $10 million bounty to hackers in an attempt to negotiate and retrieve a major chunk of the stolen funds from various Rari Fuse pools worth $79,348,385.61 — nearly $80 million.

On Saturday, Fei Protocol informed its investors about an exploit across numerous Rari Capital Fuse pools while requesting the hackers to return the stolen funds against a $10 million bounty and a “no questions asked” commitment.