News Updates September 04 2022

04 Sep, 2022 07:30 pm

1. Crypto expert expects extended Bitcoin correction below $20k before setting potential rally at $30k

Bitcoin (BTC) continues to trade below the $20,000 level as the market reacts to the positive August United States jobs report. Amid the correction in BTC’s value, the focus is on the asset’s next price action, with a section of investors suggesting a bottom has been attained.

In this line, crypto trading expert Michaël van de Poppe opines that the flagship cryptocurrency is likely to briefly correct further before rallying again in the coming weeks, he said in a YouTube posted on September 4.

Specifically, Poppe noted that Bitcoin might go to as low as $19,300 while putting the next possible high target at around $28,000 or $30,000.

With Bitcoin stuck in the range of $19,000 and $21,000, Poppe noted that the situation could result in ‘liquidity grabs’ below the level. He suggested that to continue any rally, Bitcoin needs to break past $20,400 and target $21,500.

At the same time, Poppe pointed out that there is a likelihood that Bitcoin has hit its bottom and is ready for a rally. However, he stressed that for the target to be achieved, Bitcoin needs to hold the 200-week moving average in market cap and remain above $19,000.

Overall, Bitcoin continues to tumble in the wake of the prevailing macroeconomic factors. By press time, the asset was trading at $19,800, dropping almost 1% in the last 24 hours.

It is worth noting that Bitcoin briefly rallied in the wake of the payroll data driving the general market to reclaim the $1 trillion market capitalization. However, the ongoing correction aligns with several analysts’ opinions that the favorable job market might negatively impact Bitcoin.

Interestingly, Poppe ruled out that the payroll data was responsible for the latest correction. He cited the G7 direction of putting a cap on Russian oil as a trigger, considering that the crypto market has traded in tandem with the equities.

Furthermore, amid the uncertainty, recent Bitcoin technical analysis indicates the future remains gloomy. As reported by Findbold on September 3, a summary of Bitcoin’s one-day technical analysis pointed to a strong sell at 16 while neutral levels stood at nine.

2. Crypto Weekly Roundup: Compound Bug, Saylor Sued, And More

Other than the upcoming Ethereum Merge, the Michael Saylor case has been a hot topic of conversation this week.

Let’s find out about the charges, Saylor’s reaction to them, and other noteworthy events in crypto this week.

*Ethereum*

With the much anticipated Ethereum merge only days away, much is being made of the projected changes to the network. However, arguably the biggest change is the massive decrease in energy consumption.

Layer-2 Ethereum scaling solution Arbitrum has announced the date for one of its most significant upgrades to the protocol.

*DeFi*

Decentralized exchange dYdX has been criticized on social media over its identification request, which requires users to verify their identity through their webcam.

Compound Labs had to suspend its cETH market for a week after a bug was introduced during its latest upgrade.

MakerDAO co-founder Rune Christensen outlined his vision for the DAI stablecoin, outlining the importance of a free-floating DAI and limited RWA (Real World Asset) exposure.

Solana-based decentralized exchange OptiFi inadvertently bricked the system by permanently locking up $661,000.

*Altcoins*

Cardano’s Vasil hard fork could finally see the light of day as Cardano developers announced a definitive date for the launch.

The Helium Network, an Internet of things (IoT) blockchain, is contemplating a move to the Solana blockchain and ditching its own blockchain.

CryptoLeaks has alleged that Ava Labs has been attacking its market competitors through class action lawsuits. Ava Labs CEO has dismissed all such allegations.

*Technology*

Crypto custody firm Fireblocks has integrated the Web3 Engine tool to provide developer support to the DeFi, NFT, and gaming apps on the Solana blockchain.

With the Ethereum merge on its way, the price of GPUs and ASIC mining equipment has slowed down from its notorious spikes.

*Business*

Celsius is asking the court for permission to return crypto to the value of around $50 million belonging to custody accounts.

Seven Seven Six, the venture capital firm run by Reddit co-founder Alexis Ohanian is launching a $177 million crypto fund.

Crypto.com accidentally paid more than $10 million into an Australian woman’s account and didn’t realize the error until 7 months later.

Crypto.com is reportedly backing out of a $495 million sponsorship deal with UEFA and its premier football event, the Champions League.

*Regulation*

Crypto billionaire and MicroStrategy chair Michael Saylor is being sued by the DC attorney general on charges of tax evasion.

MicroStrategy called the lawsuit against its former CEO “false” and claimed it would fight back aggressively.

California’s state legislature has passed a bill that requires crypto firms to have a license of operation in the state.

Paraguay’s president Mario Abdo Benitez has vetoed a highly anticipated bill regulating the cryptocurrency mining sector and other commercial activities related to virtual assets.

*NFT*

Rappers Eminem and Snoop Dogg personified BAYC-style avatars in a metaverse performance at the MTV Video Music Awards.

3. Crypto Trust Rating High Despite Bear Market Negativity, Study Shows

Crypto users in the United States exhibited increased loyalty and trust in digital assets despite the crippling bear market.

A Q2 Crypto Pulse Study validated that the increased volatility of crypto prices have failed to dampen the enthusiasm of Americans in the asset class.

The study covered more than 28,000 retail and institutional traders and investors coming from 23 countries and showed that a large fraction of investors are taking advantage of the bear market, making it a springboard for the next big wave.

Majority of Americans remain to be extremely bullish with digital assets. In fact, the only country that suffered a 50% dip in crypto trust was Canada.

The rest of the other countries have exhibited strong faith and confidence in the power of digital currencies, showing an above 68% trust rating such as Chile (69%), Brazil (77%), and Mexico (70%).

Canada’s main concern with digital currency is a lack of knowledge about investments. The respondents from both Canada and some parts of the United States have expressed their apprehension because they lack the education regarding crypto.

retail investors have invested in crypto during the second quarter which showed a 42% increase from Q1.

The most increase in trust score was also seen in the same group with a jump from the first quarter at 61% to 73% in the second quarter.

From the institutional perspective, nearly 70% of American investors state that they have recommended crypto use to their respective clients.

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Crypto Trust Rating High Despite Bear Market Negativity, Study Shows
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Crypto users in the United States exhibited increased loyalty and trust in digital assets despite the crippling bear market.

A Q2 Crypto Pulse Study validated that the increased volatility of crypto prices have failed to dampen the enthusiasm of Americans in the asset class.

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Americans Remain Bullish Despite Crypto Slump
Majority of Americans remain to be extremely bullish with digital assets. In fact, the only country that suffered a 50% dip in crypto trust was Canada.

The rest of the other countries have exhibited strong faith and confidence in the power of digital currencies, showing an above 68% trust rating such as Chile (69%), Brazil (77%), and Mexico (70%).

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In the United States alone, around 61% of retail investors have invested in crypto during the second quarter which showed a 42% increase from Q1.

The most increase in trust score was also seen in the same group with a jump from the first quarter at 61% to 73% in the second quarter.

From the institutional perspective, nearly 70% of American investors state that they have recommended crypto use to their respective clients.

Retail Investors Increased Bitcoin Purchases in Q2
On the other hand, retail investors found on the Atlantic side such as from Europe and the U.K. registered a decrease in trust score from 54% to 52%.

Generally, retail investors from all over the world have showed some waning of trust and enthusiasm with a 67% trust score in Q1 slipping to 65% in Q2.

Nonetheless, the above figures show the robustness and resiliency of the industry because despite being on the verge of a crypto winter in Q1, retail investors in turn increased their purchases come Q2.

More so, those who traded on a daily or weekly basis have also increased from 56% to a whopping 60%. Another winning streak is that one in four companies intend to invest in digital currencies.

4. Australian Authorities To Initiate Cryptocurrency Research Program

Crypto enthusiasts hope to see the sector accepted in every country worldwide. Even though the present condition of the market is not encouraging, investors are optimistic that the future of crypto assets is promising.

Many countries, such as El Salvador, have already embraced crypto in their financial systems. The acceptance boosted the industry, and with more such adoptions in the pipeline, cryptocurrencies will become the future of money as predicted.

The current report on crypto usage interest reveals that Australia is interested in utilizing digital assets. As a result, the Australian government has started researching digital asset opportunities. This program was recently inaugurated and is aimed at positioning the country to benefit from asset digitalization.

*Brief On Australian Research Program*

The Research program is tagged “Digital Cooperative Research Program (DFCRC).” It was launched officially by Stephen Jones, the Assistant Treasurer and Minister of Financial Services. Also, the Australia and New Zealand Banking Group LTD chairman, Paul O’Sullivan, came to the event.

During the inauguration, Stephen Jones disclosed that the reason for partnering with regulators is to ensure everything works well. Also, the body aims to provide the ecosystem safe for upcoming innovations.

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Crypto enthusiasts hope to see the sector accepted in every country worldwide. Even though the present condition of the market is not encouraging, investors are optimistic that the future of crypto assets is promising.

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Related Reading: Cannabis Producers Could Use Some Crypto After Snub From Banks
The current report on crypto usage interest reveals that Australia is interested in utilizing digital assets. As a result, the Australian government has started researching digital asset opportunities. This program was recently inaugurated and is aimed at positioning the country to benefit from asset digitalization.

Brief On Australian Research Program
The Research program is tagged “Digital Cooperative Research Program (DFCRC).” It was launched officially by Stephen Jones, the Assistant Treasurer and Minister of Financial Services. Also, the Australia and New Zealand Banking Group LTD chairman, Paul O’Sullivan, came to the event.

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The total fund for the project is 180 million AUD. According to the details available, the funding sources are universities, the Australian government, and industry partners. The DFCRC program will run for ten years, and its partners will be up to 25. The partners we gathered will come from the central bank, finance, regulatory, and academia.

Given the government’s interest in utilizing digital assets opportunities, the Australian central bank is already in talks with DFCRC. The two bodies have partnered to explore the possibilities of launching a CBDC (main band digital coin) and how it will boost transactions in the financial sector.

*Australia And Crypto*

It’s not surprising that Australia has started an official program to explore opportunities in digital assets. Currently, the country is regarded as a stable and friendly jurisdiction for the blockchain and the operations of digital businesses

Generally, the government is always open to technological innovations starting from its acceptance of fintech and diverse innovations. According to data, the crypto industry in Australia is worth $1 trillion. Moreover, many crypto exchanges are also allowed to operate within its shores, indicating great support for the industry.

The government even disclosed plans to start token mapping or the practice of cataloging the uses and types of digital currency in the country. The process aims to identify the digital assets to regulate and how the government will do it.

5. South Korean Government’s Youtube Channel Hacked to Play Crypto Video With Elon Musk

The official Youtube channel of the South Korean government has been hacked on Saturday and those who did it, broadcasted a cryptocurrency-related clip. The video also featured billionaire and crypto enthusiast Elon Musk, local media reported quoting sources in Seoul.

*Hackers Air Interview With Musk via Korean Government’s Youtube Account*

The official Youtube channel of the South Korean government has become target of a hacking attack on September 3, 2022. The perpetrators have managed to broadcast a crypto-themed video, the Korean Yonhap news agency revealed in a report based on statements by officials from the executive power in Seoul and Google.

In the early morning hours on Saturday, the channel on the video-sharing platform appeared to have been hacked as its name changed to “Spacex Invest.” It also showed a live broadcast dedicated to cryptocurrency that included an interview with U.S. business magnate and Spacex founder and CEO Elon Musk.

A representative of the Republic of Korea’s Ministry of Culture, Sports and Tourism, which is responsible for administering the Youtube account, said that the department’s employees became aware of the situation around 6 a.m. They immediately took security measures and were able to restore control over the channel at 7:20 a.m.

The main suspicion is that the account’s ID and password have been stolen. Google, Youtube’s parent company, confirmed that the channel had been hacked, Yonhap added, while also quoting an official at Google Korea who said that the unit was looking into the hacking incident.

Earlier this week, a Youtube account run by the Korea Tourism Organization (KTO) was also hacked. The channel, with over half a million subscribers, was first targeted on Thursday, then again the next day, and is still unavailable. A KTO representative told the news agency that that Google automatically blocks access to an account in case it detects abnormal activities.

In another hacking attack recently, an anti-government group called ‘Belarusian Cyber Partisans’ tried to sell Belarus President Alexander Lukashenko’s passport as an NFT. The hacktivist collective has been raising cryptocurrency to fund its activities in opposition of Minsk’s involvement in the Russian invasion of neighboring Ukraine.

6. Popular Crypto Trader Outlines How Bitcoin (BTC) Can Overcome Weeks of Bearish Price Action

A popular crypto analyst and trader is unveiling what the leading digital asset Bitcoin (BTC) needs to do to regain a key support level.

The pseudonymous analyst Rekt Capital tells his 328,000 Twitter followers that the top crypto asset by market cap lost its 200-week moving average weeks ago but has yet to flip it into resistance.

The trader says that if the king crypto could hold the area around $19,500, it could once again revisit its 200-week moving average.

“BTC is struggling near the ~$19,170 support. But what’s interesting is that BTC is at a subtle higher low compared to late June lows. BTC lost the 200-week moving average weeks ago but hasn’t flipped it to new resistance. If green support holds, BTC could revisit the 200-week moving average.”

BTC is struggling near the ~$19,170 support. But what’s interesting is that BTC is at a subtle higher low compared to late June lows. BTC lost the 200-week moving average weeks ago but hasn’t flipped it to new resistance. If green support holds, BTC could revisit the 200-week moving average.”

Rekt Capital then notes how Bitcoin’s buy volume now is similar to what it was weeks ago. However, the trader says BTC’s price has been impacted less by the buying despite the token costing less.

“This week’s BTC buy volume is similar to [the] buy volume of a few weeks ago. However, weeks ago, [a] similar volume produced a +10% move, at higher prices. This week, similar buy volume has produced a small +4% reaction, at lower prices, and most of it has retraced.”

Recently, the analyst also outlined how Bitcoin was fast approaching its bear market bottom. He said that BTC tends to bottom out a year after its previous bull market peak. It’s been about 300 days since Bitcoin hit its last bull market peak, according to the trader.

BTC is trading for $19,950 at time of writing, a fractional gain on the day.

7. Indonesian Government to Launch Crypto Bourse This Year, Official Says

The Indonesian government is set to launch a crypto bourse by the end of this year, a high-ranking government official reportedly revealed. “We will make sure that every requirement, procedure, and the necessary steps have been taken,” he emphasized.

Crypto Bourse Coming Soon in Indonesia

The Indonesian government is planning to launch a crypto bourse by year-end, Dealstreetasia reported Wednesday, citing Indonesia’s Deputy Trade Minister Jerry Sambuaga.

Speaking on the sidelines of NXC International Summit 2022 by WIR Group in Bali, the trade minister explained that the crypto bourse initiative is part of the government’s efforts to protect consumers amid rising interest in digital currencies.

Originally set to launch in 2021, the bourse launch was postponed due to the complexity of the process, the publication conveyed.

“We will make sure that every requirement, procedure, and the necessary steps have been taken,” Minister Sambuaga was quoted as saying. “This is proof that we are being careful. We don’t want to be hasty as it may cause us to miss something.” He elaborated:

Secondly, we need to validate the said entities,” the government official continued. “Thirdly, there is minimum capital and other requirements related to custodian depository, technical things.”

Tokocrypto CEO Pang Xue Kai believes that a crypto bourse can help increase the number of participants in the crypto sector and interest from institutional investors. Tokocrypto is one of the 25 cryptocurrency exchanges licensed by the Indonesian Commodity Futures Trading Regulatory Agency (Bappebti).

Indonesia allows the trading of crypto assets as commodities but does not recognize crypto as a payment instrument. In April, the Indonesian Directorate General of Taxes said it had set income tax (PPh) on capital gains from crypto investments and value-added tax (VAT) on crypto purchases at 0.1%.

In January, Indonesia’s Financial Services Authority (OJK) warned that financial firms are not allowed to offer and facilitate sales of crypto assets. However, the country’s Minister of Trade Muhammad Luthfi said in September last year that the Indonesian government will not ban cryptocurrencies as China did. Nonetheless, Indonesia’s top Islamic body, the country’s authority on Shariah compliance, has declared cryptocurrency haram, forbidden for Muslims under Islamic law.

Crypto transactions in Indonesia increased 1,224% to 859.4 trillion rupiahs ($57.5 billion) in 2021 from 64.9 trillion in 2020, according to Bappebti. In the first six months of this year, there were 15.1 million crypto users in Indonesia, transacting cryptocurrencies worth 212 trillion rupiahs.

8. IMF Bailout Approval Helps Zambian Kwacha Take the Russian Ruble's Position as World's Best Performing Currency.

After the International Money Fund revealed it had approved a bailout package for Zambia, the Southern African country’s currency, the kwacha, rallied by 3.1%. Following this gain, the kwacha took the Russian ruble’s position as the world’s best-performing currency in 2022.

Zambia Still ‘Has a Long Way to Go’
The Zambian kwacha currency, which currently trades at K15.40 for every dollar, became the world’s best-performing fiat currency when it was announced that the International Monetary Fund (IMF) had approved the $1.3 billion bailout for the country. With a year-to-date gain of over 18.25%, the kwacha has taken the Russian ruble’s position as the world’s best-performing currency.

According to a Bloomberg report, news of the International Monetary Fund (IMF)’s approval of the $1.3 billion financial bailout to the African country saw the kwacha rally by 3.1% in a single day. Zambian officials including President Hakainde Hichilema — who is popularly known as “HH” — have touted the currency’s gains and the approval of the bailout as proof that the new government’s policies are working.

In remarks following the bailout announcement, Hichilema reportedly said:

I didn’t go to bed until the IMF board passed the Zambia issue. Minutes later, the MD [Kristalina Georgieva] herself sent me a message: HH, it’s done.
Joseph Kalimbwe, a Zambian government spokesperson, said in a tweet that while the kwacha had overtaken the ruble, the “country still has a long way to go.”

9. Argentinian Tax Authority Wins Landmark Case to Confiscate Funds From a Digital Account.

The Argentinian Tax Authority (AFIP) has won a historic case to seize taxpayer funds from a digital account. The case, which was won in an appeal in the Federal Chamber of Mar del Plata, might bring about more seizures of this kind and include cryptocurrencies as part of a stricter policy of the organization.

Argentinian Tax Authority to Seize Funds From Digital Account
The eyes of regulators around the world have turned to fintech and crypto companies and their operations. The Argentinian Tax Authority (AFIP) has recently won a landmark case in the area, allowing it to seize funds from a digital account in the country to pay tax-related debts. The request, which was first denied by a judge and then accepted in an appeal at the Federal Chamber of Mar del Plata, may be the first of many seizures of this kind.

The institution will be able to confiscate the totality of the funds owed to the state, adding 15% more for interest and processing charges. The chamber states that it doesn’t find any reason to not consider these and future funds, which were held in a digital Mercado Pago account, as part of the heritage of the account holder.

Furthermore, the order declares that “the rise of economic and financial activity through the use of digital accounts imposes the need to interpret the law in accordance with the current circumstances,” and that these technologies cannot become evasion mediums for taxpayers.

The organization added this kind of wallet to its list of assets which can be confiscated in February.

10. Fed research papers warn about future risks from crypto CeFi and DeFi.

The US Federal Reserve's research arm published a pair of papers last week exploring decentralized finance and the ramifications of digital assets for financial stability.

The Fed and its leadership have pushed for more oversight of the crypto industry, particularly in the context of its links to the broader financial sector. Its paper on financial stability touched on regulation, with the authors suggesting stricter oversight for firms handling client funds.

"Oversight, comprehensive disclosures, and capital and liquidity requirements, where appropriate, could improve the resilience of entities within the digital asset ecosystem," the paper said. "For example, centralized cryptoentities that act as counterparties to retail users in the digital asset ecosystem are generally not subject to capital, liquidity, or comprehensive disclosure requirements."

The stability paper concluded that the crypto ecosystem is "prone to the buildup of financial vulnerabilities," but later added that "financial stability risks are not extensive because the digital asset ecosystem does not provide significant financial services and its interconnections with the traditional financial system are limited."

Still, such risks could grow in the future, the authors noted.

"Should the digital financial system become more interconnected with the traditional system or expand its provision of financial services, financial stability risks could quickly become material," they wrote.

News Updates September 04 2022

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