News updates May 28, 2022

1. Bitcoin price analysis: BTC rejects downside again, another push from $29,000 next? Bitcoin price analysis is bearish today as we have seen more consolidation below the $29,000 as the downside was rejected overnight. Therefore, BTC/USD should soon continue even lower towards the $27,500 support. 

The market has traded with low momentum over the last 24 hours as a clear direction is yet to be decided. The leader, Bitcoin, lost just 0.2 percent, while Ethereum gained 0.07 percent. The rest of the top altcoins saw similarly mixed results. 

Bitcoin price movement in the last 24 hours: Bitcoin fails to breach previous low, consolidates further
BTC/USD traded in a range of $28,326.61 to $29,335.03, indicating mild volatility over the last 24 hours. Trading volume has declined by 28.33 percent, totaling $29.91 billion, while the total market cap trades around $549.65 billion, resulting in market dominance of 45.85 percent.

BTC/USD 4-hour chart: BTC ready to drop further?
On the 4-hour chart, we can see the Bitcoin price action failing to reach further upside, indicating that another test of the downside should be in play over the weekend. 

Bitcoin price action has seen ever-increasing bearish momentum over the past days after consolidation last week. Clear local lower high was set at $30,000 on Wednesday, and from there, another test of $29,000 support resulted in a break lower.

BTC/USD quickly spiked as low as the $28,000 mark before being immediately rejected above the $29,000 mark. Therefore, bears were not yet ready to reach the next support at $27,500, and further price action development was needed.

 
Since then, not much upside has followed, indicating that bears are still in control. Bitcoin price will likely continue to consolidate around the previously broken support if no significant change of direction occurs. Overall, by the end of the weekend, BTC/USD should see further downside tested once more.

Bitcoin price analysis: Conclusion 
Bitcoin price analysis is bearish today as we expect further tests of downside to follow as the overall weekly market sentiment is slightly bearish. Therefore, after some more consolidation, BTC/USD should continue to target the $27,500 next major support.

2. Crypto Trader Who Predicted Bitcoin Collapse Below $30,000 Says BTC To Hit New Low – Here Are His Targets. 

A closely tracked crypto strategist and trader is warning Bitcoin holders that BTC is poised to hit a new 52-week low.

Pseudonymous trader Capo tells his 322,300 Twitter followers another sell-off event is in sight for Bitcoin as the crypto markets continue to show signs of weakness.

 
“Almost the entire market except BTC has made a new low after yesterday’s bounce, showing that it was in fact a bull trap. BTC new low incoming.”

Over the last seven days, Bitcoin has managed to trade above $28,400, slightly higher than its 52-week low of $26,910. However, Capo warns that the support area around $28,000 is flashing signs of demand exhaustion as BTC has revisited the price level six times in a short amount of time.

Once Bitcoin takes out its immediate support, Capo predicts a sharp decline to his bear market target of between $21,000-$23,000.

Capo also highlights that Bitcoin has broken down from a bear flag and is now en route to his bear market target.

“The minimum target of the bear flag hasn’t been reached yet $23,000. You can also see this on altcoins, where some of the main targets haven’t been reached yet.”

3. Bearish Indicator: Is Bitcoin Headed For Its Ninth Red Weekly Close?

This week, Bitcoin had made history when it recorded its eighth consecutive red weekly close. This first-of-its-kind streak had cemented the digital asset on one of the worst bearish trends that have ever been recorded. Now, even as the week runs towards another close, the cryptocurrency has not been able to make any considerable recovery, indicating that it may not be done with its bearish streak.

 *Bitcoin Headed For A Ninth Red Close?*

With bitcoin still trading well below $30,000, it is no long shot to speculate that the digital asset may close out this week in the red too. If it does so, then it will break its previous record while plunging the market into even worse bearish trends. Nine consecutive weekly closes would prove that bulls have mainly relinquished control of the market, meaning the bears have the leeway to pull the market down further

This combined with the increased interest rates from the Fed has left investors feeling warier about financial investments. Thus driving them towards more ‘stable’ investment options. With such money leaving the market, bitcoin possesses little chance of actually reversing the current trend.

Even though bitcoin has been providing a safe haven from the altcoin bloodbath, it does not mean that the digital asset itself has not taken losses. NewsBTC reported that while bitcoin has been the best performer of all the indices, the cryptocurrency is still down 24% from the start of the month. This decline in price means that investors are still not as bullish on the pioneer cryptocurrency. 

 *What The Indicators Say*

For bitcoin, maintaining above the 50-day moving average has always been a bullish indicator. This is why the current trading value of the cryptocurrency does not spell good news for it. For example, bitcoin is more than $9,000 below its 50-day moving average. To cement a recovery trend, it would not only have to move above this point but will need to establish significant support above the $40,000 level. This would mean that bitcoin would have to recover 37% to achieve this.

4. New US bill to block Google and Apple from hosting apps that accept eCNY

Senators Marco Rubio, Tom Cotton and Mike Braun sponsored a bill to prohibit companies to host software that supports payments in China's new CBDC, the eCNY

The U.S. is looking to bar Google and Apple from supporting applications that allow payments in China’s digital yuan (eCNY).

Republican Senators Tom Cotton, Marco Rubio, and Mike Braun sponsored a bill that seeks to prohibit companies that operate app stores from listing applications that support payments in eCNY within the U.S. With this bill, the Senators aim to prevent Beijing from spying on Americans.

Cotton’s office noted that a digital yuan could offer the Chinese government real-time visibility into all transactions on the network. The office further stated that allowing the app stores to list applications supporting eCNY would expose American persons to privacy and security risks.

The Center for a New American Security, a Washington a think tank based in Washington DC, previously said China’s digital currency and electronic payments system would be a boon for CCP surveillance in the economy. That is because transactions would contain accurate data about users and their activities.

The bill to bar companies operating app stores from listing eCNY-affiliated apps comes after Tencent-owned WeChat and Ant Group-owned Alipay started accepting payments in digital yuan. Both apps are listed on the Google and Apple app stores.

According to the Chinese Embassy, which is based in Washington, this bill is yet another example of the U.S. deliberate bullying of foreign companies by abusing power on the untenable grounds of national security.

5. Thailand Not in a Hurry to Launch a CBDC (Report)

The Bank of Thailand’s Governor – Sethaput Suthiwartnarueput – said the necessity for a CBDC is not that high, and as such, the institution will not rush with its launch.

The Thai authorities are reportedly not rushing to push a retail-oriented central bank digital currency (CBDC). Bank of Thailand’s Governor explained the country has numerous alternative payment options.

 *The Need to roll out a CBDC is not That High*

Thailand has been among the nations willing to introduce a CBDC. In 2020, the country’s central bank said it will test how the financial product interacts with local businesses. Moreover, Vachira Arromdee – Assistant Governor of the Bank of Thailand – said the institution plans to expand the usage of the CBDC to the general public.

At the end of last year, the authorities unveiled their intention to use the national digital currency as an alternative payment option to cash. However, the endeavor was to pass some experiments, rescheduled for the end of 2022.

According to a recent local report, Sethaput Suthiwartnarueput – Governor of the central bank – is satisfied with how Thailand’s current retail banking network functions. He claimed, “the need to roll out a CBDC is not that high.”

The official reiterated the bank’s plans to run its trials on the financial product during Q4, 2022. The initiative will be supported by monetary organizations and private consumers who will conduct withdrawals, deposits, and fund transfers.

6. How the US Can Establish Itself as a Crypto Leader

Regulators have an opportunity to map out thoughtful, strategic policy on stablecoins and beyond.

The week of the terraUSD (UST) collapse was among the most painful weeks in crypto history – and one we’ll reckon with for a long time. It wrought havoc on the crypto market, resulting in billions of dollars in lost value. And while those in Washington, D.C., rightly debate next steps, a smart, thoughtful conversation around potential regulation is critical.

Stablecoins are a vital innovation, providing many benefits for users and a competitive advantage for the United States. Stablecoins improve efficiency in payments and transfers, reducing costs and accelerating settlement for businesses and consumers. They make the financial system more inclusive by offering open access to anyone, anywhere, regardless of their background or economic status. They can also advance U.S. geopolitical interests, strengthening global dollar dominance in the face of attempts by our adversaries – such as China and Russia – to undermine U.S. leadership in the financial system.

7. No, the UK Is Not Going to Make USDC and USDT Legal Tender

Following the recent crypto crash came news the U.K. government would “legalize” stablecoins. Crypto supporters on Twitter took this to mean the leading reserved stablecoins – USDT and USDC – would become legal tender in the U.K.

But stablecoins don’t need to be legal tender to be used for payments. They don’t even need to be “legalized.” It’s perfectly legal for people in the U.K. to use USDC, USDT or any other stablecoin – including algorithmic stablecoins – and many people do.

None of these payments involve legal tender. Debit cards, credit cards, bank transfers, checks, mobile money, PayPal – not one of these is legal tender in the U.K. In England, only banknotes and coins are legal tender, and low-denomination coins are only legal tender for amounts up to 20 pence (US25 cents). In Scotland, only coins are legal tender.

So the U.K. is not proposing to make USDC and USDT legal tender. It’s not even proposing to “legalize” them, because they are already legal in the U.K. It’s proposing to regulate them. And that may mean they can never be used in mainstream payments systems in the U.K.
Rather than the open door to existing stablecoins that stablecoin aficionados thought this would be, it’s a qualified welcome for new GBP-pegged stablecoins from trusted British issuers – and an invitation to U.K. banks and the Bank of England to get on with issuing them.

8. Here’s a full draft of Senator Cynthia Lummis' landmark crypto bill

* The Block has obtained a draft copy of a crypto regulation bill led by US Senator Cynthia Lummis. 

* The draft is the first version of the wide-ranging bill to become public.

* Lummis will formally release her crypto regulatory bill on June 7, her office said when reached. 

US Senator Cynthia Lummis (R-WY) has spent months teasing details of a comprehensive bill that addresses crypto regulation. The Block has obtained a draft version that offers key details about the scope and impact of the bill.

The 70-page draft focuses on numerous aspects of US crypto regulation. These areas include which activities would fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC) and other federal regulators. 

The Block understands that this version of the bill was shared by the Lummis team in the last month. A spokesperson for Lummis said that the draft version is dated March 1.

Extensive sections on stablecoin regulation and digital asset tax policy address many of the key blind spots in crypto regulation today. The bill appears to place significant aspects of the US crypto industry under the auspices of the CFTC. As the text notes:

Further, an ancillary asset “may include a digital asset, as defined in section 9801 of title 31, United States Code, that is used to facilitate the governance of a distributed ledger technology network or decentralized autonomous organization.”

In conversation with The Block, sources from the industry had previously expressed concern that the bill would label many cryptocurrencies other than Bitcoin as securities.

Following the publication of this story, Lummis said in a tweet that "any language circulating online is an incredibly outdated version from March 1," adding: "Stay tuned for our release of the actual bill on June 7th!"

According to a source with knowledge of the behind-the-scenes process, staffers have continued to update the bill’s contents.

9. The Crypto Community Says the UK's FCA Is Finally Starting to Listen

The Financial Conduct Authority, which is known for being critical of digital assets, took a different tack in its first CryptoSprint, held earlier this month.
Over the course of two days, participants worked in mixed-discipline teams to explore the challenges facing the crypto industry, including how the FCA, the U.K.’s financial regulator, can support and balance innovation with standards that protect consumers, the FCA said on its website.

The CryptoSprint explored how to handle disclosing information related to the issuance of crypto assets, regulatory obligations and custody regulations. Many digital asset company executives told CoinDesk they wanted a collaborative approach that allowed for innovation. The FCA's CryptoSprint made some of its attendees feel like that was actually possible.

The last two days have been hugely positive, with participants collaborating closely on what future policy might look like," an FCA spokesperson told CoinDesk in a statement. "It was striking that the general view on future regulation for the crypto market matches ours, with consumer protection and market integrity key to providing confidence in this evolving sector.”
At the CryptoSprint, the FCA heard from a range of players within the digital asset sector including chief executives, compliance heads, academics and lawyers, Johnson told CoinDesk. The event had more than 600 applications and 96 attendees in addition to the FCA staff facilitating the event, Johnson said.

10. The UK's Cyber Crime Police Officers are Being Poached by Crypto Firms.

In a stepping up of hiring efforts, crypto businesses are pursuing current and former police officers in the United Kingdom with luxurious pay (particularly those with experience investing in cyber crimes). According to a Bloomberg News story, several of the top crypto companies, such as Coinbase, Chainalysis, and Binance, are actively hiring law enforcement officers, giving them twice and triple their present wages to leave their employment. The National Police Chiefs' Council (NPCC) states that "experienced cybercrime officers" and employees are leaving three to four times that of the rest of the force. The Council represents all of the United Kingdom's armed forces.
According to the NPCC, 15 former policing or law enforcement officials already work for notable crypto enterprises, which is expected to "substantially increase" in the coming year.

11. India to roll out CBDC using a graded approach: RBI Annual Report
Halfway through 2022, at the proof of concept stage, RBI is in the process of verifying the feasibility and functionality of launching a CBDC.

Further cementing India’s decision to introduce an in-house central bank digital currency (CBDC) in 2022-23, the Reserve Bank of India (RBI) proposed a three-step graded approach for rolling out CBDC “with little or no disruption” to the traditional financial system.

In February, while discussing the budget for 2022, Indian finance minister Nirmala Sitharaman spoke about the launch of a digital rupee to provide a “big boost” to the digital economy. In the annual report released Friday by India’s central bank, RBI revealed exploring the pros and cons of introducing a CBDC.

In the report, RBI stressed the need for India’s CBDC to conform to India’s objectives related to “monetary policy, financial stability and efficient operations of currency and payment systems.”

Based on this need, RBI is currently examining the various design elements of a CBDC that can co-exist within the existing fiat system without causing disruptions. The Indian Finance Bill 2022, which enforced the introduction of a 30% crypto tax on unrealized gains, also provides a legal framework for the launch of a digital rupee:

“The Reserve Bank proposes to adopt a graded approach to introduction of CBDC, going step by step through stages of Proof of Concept, pilots and the launch.”
Halfway through 2022, at the proof of concept stage, RBI is in the process of verifying the feasibility and functionality of launching a CBDC.

Related: RBI warns of crypto ‘dollarization’ of Indian economy

Earlier this month, on May 17, RBI officials reportedly warned against crypto adoption citing the risks of “dollarization” of the Indian economy.

As Cointelegraph reported based on the Economic Times’ findings, key RBI officials including governor Shaktikanta Das raised concerns regarding the U.S. dollar-dominated world of cryptocurrencies. An unnamed official stated:

“Almost all cryptocurrencies are dollar-denominated and issued by foreign private entities, it may eventually lead to dollarization of a part of our economy which will be against the country’s sovereign interest.”
“It [crypto] will seriously undermine the RBI’s capacity to determine monetary policy and regulate the monetary system of the country,” they added.

12. SEC Agree to Pay Ripple’s Attorney an Undisclosed Amount of Fee During Expert Testimony Deposition.

The Securities and Exchange Commission (SEC) and Ripple have agreed on the appropriate fee award that will cover the cost of the defendant’s attorney during the process of deposing the supplemental expert report of Dr. Albert Metz. 

The parties disclosed in a motion filed recently saying: “Pursuant to the Court’s April 19, 2022 order, Defendants Ripple Labs and Plaintiff Securities and Exchange Commission have met, conferred, and agreed upon a fee award.” 

It is noteworthy that the motion did not disclose the amount that the Securities and Exchange Commission will pay to cover the cost of Ripple’s attorney fees. 

With both parties agreeing on a fee award, the SEC noted that it is working with the Defendant’s attorney to facilitate the necessary documentation required to process the payment in due time.