News Updates September 15, 2022
1. Bitcoin Price Has Strong Potential To Hit $25,000, Weekly Analysis Suggests
Recently, the market has seen a strong correction due to the Bitcoin price bull run of the past several days. On December 7, 2020, the price hit a low of $19,030.09, which is considered to be a new all-time low.
However, the appearance of a double bottom pattern has led to an optimistic outlook on this correction.
Bitcoin can rebound, as is now more evident. Obviously, there will be some challenges along the way. The Bitcoin price present momentum is one of the cryptocurrency’s major challenges.
The current momentum is merely reversing the past downward trends, thus it may not be enough to break through the $25,000 price level, according to latest analyses.
Looking at the range during the past four hours, it appears that BTC will be trading between $19,226 and $24,286 for the time being.
This challenge is attributable to the traders’ pessimism in response to the most recent CPI report. The survey revealed an annual inflation rate of more than 8 percent.
This bleak assessment could be followed by a 1% increase in interest rates. Therefore, the bulls must maintain their position inside the range of $19,226 to create momentum.
To continue driving the price higher, the bulls must generate persistent momentum. Once more, sustainability will reduce the probability of a dramatic correction.
The price of Bitcoin should not drop below the 71.60 Fibonacci level. If bears break through to the downside, Bitcoin’s price might fall to $18,000.
This occurrence will further bring the price down. A sustainable momentum for a rally should be one of the bulls’ top aims in order to surpass the $25,000 threshold.
2. Crypto for foreign trade: What do we know about Iran’s new strategy
Iran has decided to legalize the use of crypto in cross-border payments, which could impact how some countries view crypto.
With the Trade Ministry officially approving the use of cryptocurrencies for foreign trade, Iran will become the first-of-a-kind adopter in the world.
The obvious problem with the news is that the country’s innovative policy obviously aims at circumventing financial sanctions that have been hampering its participation in the global economy for many years.
These circumstances set an ambivalent tone for Iran’s experiment — while for some, it could prove crypto’s emancipating ability to shirk the all-too-real hegemony of the United States political will and international financial institutions that enforce it, hardline crypto skeptics could get the proof they need for their prophecies about decentralized digital assets being a weapon of choice for disrupting the fragile global order.
In August, Peyman-Pak revealed that Iran had placed its first import order using crypto. Without any details about the cryptocurrency used or the imported goods involved, the official claimed that the $10 million order represents the first of many international trades to be settled with crypto, with plans to ramp this up throughout September.
On Aug. 30, Trade Minister Reza Fatemi Amin confirmed that detailed regulations had been approved, outlining the use of cryptocurrencies for trade. While the full text still couldn’t be attained online, local businesses should be able to import vehicles into Iran and a range of different imported goods using cryptocurrencies instead of the United States dollar or the euro.
3. CZ Seals the Binance Love Affair With France - Says Paris is ‘Financial Hub for Crypto’ in Europe
France and the leading cryptocurrency exchange Binance have continued to deepen their relationship through collaboration. Changpeng Zhao, founder and CEO of Binance, has described France's capital Paris as the financial hub of crypto in Europe.
CZ was speaking during an opening session of the Binance Blockchain Week Paris 2022 which kicked off on September 14. He stated that with the strong push for crypto adoption and other initiatives the French government is taking, the crypto market is set to "explode" in the country over the next five years.
Some of the initiatives he highlights include France's efforts to lower taxes and ease up its employment laws. He also commented on the European Union's incoming crypto regulations which France will adopt.
CZ said the EU's Market's in Digital Assets (MiCA) laws are "fantastic" but a bit strict, especially on stablecoins. However, he still expects the laws that will create a uniform crypto regulatory regime for the 27 EU member countries to soon become a global standard.
*Binance makes inroads in other markets*
Binance's relationship with France has been waxing stronger since 2021. Last year, Binance entered a partnership with France FinTech, a non-profit association, to launch a 100 million euros fund to develop the French and European blockchain and cryptocurrency ecosystem with the backing of the Ministry for Digital Transition and Electronic Communication.
In May this year, Binance was given a Virtual Assets Service Provider (VASP) license by France's capital market regulator, the Autorité des marchés financiers (AMF). According to a report by Reuters at the time, Binance plans to make Paris its European base.
4. Chinese court approves crypto trading but not its use as a cash substitute
A Chinese court has ruled that citizens can still trade cryptocurrencies despite the country’s ban on digital asset services. Notably, China has an existing ban on cryptocurrency trading, citing a threat to financial sector stability.
The Beijing Number One Intermediate People’s Court ruled that interested investors can only trade cryptocurrencies but should be treated as virtual assets and not act as a currency.
The ruling was made in a case involving a crypto loan in Litecoin (LTC) with a promise of paying interest in digital currencies. The case specifics indicate that in 2015, Zhai Wenjie loaned his friend Ding Hao 50,000 Litecoin. Zhai Wenjie stated that Ding Hao promised to pay 1,000 Litecoins as interest per month, a matter the defendant denied.
Interestingly, amid the existing ban on Bitcoin (BTC), the court considered Litecoin, noting that the country has laws governing such assets.
In the case, the judge cited a lack of laws prohibiting the perception of Litecoin as an illegal asset. Therefore, the judge ruled in favor of the complainant for proving that the defendant borrowed a cryptocurrency and ordered him to return Litecoin.
It is worth noting that different Chinese regional courts have issued varied judgments on the trading and handling of digital assets. For instance, as reported by Finbold in May, the Shanghai High People’s Court ruled that Bitcoin has a ‘certain economic value’ and is protected by the country’s laws.
Interestingly, despite the ban on crypto services, new data indicates that more Chinese residents are still trading in different assets. As reported by Finbold, China now ranks in the tenth spot globally in crypto adoption.
5. Russian Prime Minister Orders Finance Ministry, Central Bank to Agree on Crypto by December
The central bank and the finance ministry in Moscow have been asked by the head of the Russian government to agree on a vision for the development of the country’s digital asset market by Dec 1. Working with other regulators, they should also present a common position on the legislation needed to regulate it.
Russian Prime Minister Mikhail Mishustin has told the Ministry of Finance to prepare, together with the Bank of Russia, and submit concrete proposals for the future of the digital financial asset (DFA) market in the Russian Federation by the first day of December.
The head of the Russian government issued the order after a meeting devoted to the nation’s financial system, RBC Crypto reported. The top official emphasized that in the current circumstances, DFAs can facilitate uninterrupted payments for imports of goods and Russian exports.
The finance ministry and the central bank have been tasked to update Russia’s “Strategy for the Development of the Financial Market until 2030.” The document should be revised taking into account the instructions of President Putin and, in the words of Mishustin, the prevailing geopolitical situation.
In January of this year, Vladimir Putin urged Russian government institutions to reach consensus on crypto regulations and highlighted Russia’s potential as a coin minting destination. In August, Mikhail Mishustin described digital assets as a “safe alternative” for cross-border payments.
The treasury department and the monetary authority are also required to work with the Russian financial watchdog, Rosfinmonitoring, the Federal Tax Service, and the Federal Security Service to elaborate a unified position, by Dec. 19, on the draft laws designed to regulate the issuance and circulation of digital currency in Russia.
The federal legislation, part of which is the new bill “On Digital Currency” proposed by the ministry in February, should also introduce rules for cryptocurrency mining, an expanding industry in energy-rich Russia, and legalize the employment of digital assets in international settlements. Proposals are also expected on the use of the digital ruble for budget purposes.
Both the Russian central bank digital currency and decentralized cryptocurrencies are now viewed in Moscow as tools that can reduce the negative effects of sanctions on the Russian economy and foreign trade. Earlier this week, Director of the finance ministry’s Financial Stability Department Ivan Chebeskov indicated he expects to see international crypto transactions as early as next year.
6. Bitcoin Bulls Stop Decline While Bears Keep Price Above $20,000 Support Level
On September 13, the bitcoin price (BTC) came under selling pressure at the $22,794 resistance level. In the last 48 hours, the downtrend has been halted as Bitcoin consolidates above the $20,000 support.
Bitcoin price long-term forecast: bullish
Once BTC price rises above the 21-day line SMA, it will resume its uptrend. The bottom line is that buyers will emerge at the lower price levels to push Bitcoin higher. Buyers will revisit the resistance at $22,794 to break through it.
The market will rally above the $24,000 and $25,205 resistance levels if the buyers are successful. However, if sellers break the psychological price level of $20,000, Bitcoin could fall to a low of $18,675. However, buyers are expected to dynamically defend the current support level. The largest cryptocurrency will trade between $18,675 and $24,000 if Bitcoin loses its current support.
Bitcoin indicator display
Bitcoin is at level 45 of the Relative Strength Index for period 14. The cryptocurrency is in the downtrend zone due to the recent decline. The BTC price may continue to decline as it is below the 21-day line SMA and the 50-day line SMA. It is below the 50% area of the daily stochastic. This indicates that the market is in a bearish momentum. The 21-day line SMA and the 50-day line SMA are horizontally sloping, indicating a previous sideways movement.
7. Crypto bill a 'pivotal step', but needs clarification on ‘digital commodity’ — Sheila Warren
CCI CEO Sheila Warren said that there was “a very tight window” to pass the crypto bill, given the possible change in leadership following the 2022 midterm elections.
Sheila Warren, CEO of the Crypto Council for Innovation, said the Digital Commodities Consumer Protection Act currently being considered by U.S. lawmakers was a “pivotal step” towards achieving regulatory clarity, but recommended changes to determine the role authorities will take on digital assets.
In written testimony for a Wednesday hearing on the bill with the Senate Agriculture Committee, Warren said she generally approved of the proposed legislation "pav[ing] the way for innovation" in the United States, but added it needed to better define a “digital commodity” and security rather than leaving the matter to regulatory agencies or courts. According to the Crypto Council CEO, the Digital Commodities Consumer Protection Act fell short of clarifying what trading activity was allowed based on its language. Warren said that it will permit trading in digital assets “not readily susceptible to manipulation,” making it possible that the Commodity Futures Trading Commission, or CFTC, could have its own interpretation in contrast with that of the Securities and Exchange Commission, or SEC.
The bill leaves it to the agencies and the Courts to determine whether a digital asset, other than Bitcoin and Ether, is a security or not,” said the Crypto Council CEO. “To date, this approach has not worked well, with significant implications for consumers, and is why the industry has made numerous calls for proactive regulation, rather than regulation by enforcement.”
Speaking to Cointelegraph, Warren said the bill, if passed, would grant the CFTC broad authority over the crypto spot market. She said that additional legislation and regulatory processes would likely be required to clarify the SEC’s role — a sentiment recently echoed by SEC Chair Gary Gensler — adding there was “a very tight window” to pass such laws given the possible change in leadership following the 2022 midterm elections. Warren continued:
Warren added in her written statement that the CCI supported provisions within the bill aimed at establishing consumer protection standards such as transparency requirements for financial tools and products in the crypto and blockchain space. The legislation also requires a report on underserved communities involved with digital assets.
*US exceptionalism could be tested as digital assets find footing worldwide — Sheila Warren*
As the former head of data, blockchain and digital assets at the World Economic Forum, Warren explored central bank digital currencies and promoted the adoption of blockchain technology, leaving in February to become the Crypto Council for Innovation’s CEO. Formed in April 2021, the CCI’s supporters include Coinbase, Gemini, Fidelity Digital Assets, Paradigm, Ribbit Capital, Andreessen Horowitz and Block. The organization has focused on supporting issues related to using cryptocurrencies and harmonizing related regulations in the United States and Europe.
8. Crypto Market Pulls Out Of Extreme Fear, But Only Narrowly
Data shows the crypto market sentiment has improved from a state of extreme fear, but still remains quite close to re-entering the zone.
*Crypto Fear And Greed Index Points To A Fearful Market*
The “fear and greed index” is an indicator that tells us about the general sentiment among investors in the cryptocurrency market.
The metric uses a numeric scale that runs from zero to hundred for displaying this sentiment. When the value of the index is below fifty, it means the market is fearful right now.
On the other hand, values of the indicator higher than the threshold suggest a dominant sentiment of greed among crypto investors.
Values of above 75 and below 25 (that is, those towards the ends of the range) indicate sentiments of “extreme greed” and “extreme fear,” respectively.
*BTC Price*
At the time of writing, Bitcoin’s price floats around $20.1k, up 5% in the last seven days. Over the past month, the crypto has lost 17% in value.
The below chart shows the trend in the price of the coin over the last five days.
