In our digest, we took a look at some important crypto industry news over the past week:
- BTC broke above $30,000. Whether to wait for an update of the annual maximum
- Authorities propose to localise production of cryptocurrency mining equipment in Russia
- Atomic Wallet hacked: $2 million in cryptocurrencies frozen
- Bitcoin legalisation: key driver of El Salvador’s economic growth after COVID-19 pandemic
- Central Bank has no plans to restrict the use of digital rouble
Now for more details. Reading time: 8 minutes.
- Bitcoin (BTC) reached $30,985 but failed to surpass the yearly high of $31,804. BTC is currently trading below the key horizontal resistance area of $31,300. Last week, the bitcoin price surpassed $30,000 after the SEC dropped its legal battle with Ripple. This led to BTC’s highest gain in months. However, while bitcoin has reached the $30,985 mark, it has declined slightly. The current yearly high is at $31,900 and the highest weekly close this year was $31,600. This raises doubts among some traders that the bull market has already started. Technical analysis shows that the bitcoin price has been on the rise since September when it bounced off the $25,000 support level. The weekly RSI continues to show bullish signals and continues to rise. In the daily timeframe, the bitcoin price has overcome the horizontal resistance area at $29,000, accelerating the pace of growth. Now BTC is approaching the last resistance area before the yearly high of $31,300. If bitcoin can overcome this level, it could face further resistances at $33,700 and $36,000. However, a rebound from the $31,300 resistance area could cause the price to drop 60% to the nearest support level at $29,000. In addition, Fed policy is also having an impact on bitcoin. The rise in bitcoin price was driven by statements from Federal Reserve Chairman Jerome Powell about the possible suspension of interest rate hikes. Bitcoin continues to attract attention and is rising, but potential risks and price fluctuations must be considered. Traders expect further developments and hope to overcome the annual high.
- The Russian authorities have proposed to localise the production of cryptocurrency mining equipment on its territory in order to combat illegal supplies and increase tax revenues to the state budget. According to Andrei Lugovoy, the first deputy head of the State Duma Committee on Security and Anti-Corruption, the state loses about 7 billion rubles in taxes due to the illegal importation of mining equipment. He noted that the mining industry in Russia does not have its own production, so it is proposed to organise it locally. The state counts on the support of the Ministry of Industry and Trade in this matter. Currently, 900 commodity lots and more than 100 thousand units of mining equipment are legally imported into Russia. It is estimated that the import of mining equipment is from 100 to 150 thousand units per year. The volumes of energy consumed for cryptocurrency mining reach 2–2.5 GW. This includes both industrial miners and home mining. The proposal to localise the production of mining equipment will reduce illegal supplies and increase tax revenues to the country’s budget.
- Atomic Wallet froze $2 million in cryptocurrencies at the request of a hacked Atomic Wallet. Cryptocurrency wallet Atomic Wallet worked with major cryptocurrency exchanges to block suspicious deposits worth $2 million. The investigation, assisted by Chainalysis and Crystal, revealed that the attacker used sophisticated methods to transfer funds into the bitcoin blockchain, including bridges and mixers. Most of the funds ended up in the Tron blockchain. Atomic Wallet expressed gratitude to centralised cryptocurrency exchanges for their prompt cooperation in freezing assets related to suspicious transactions. In June 2023, Atomic Wallet faced a major hack that caused the platform to lose millions of stolen crypto assets. Affected users filed a class action lawsuit for $100 million in damages. Atomic Wallet said it was able to block more than $2 million worth of stolen cryptoassets with the help of blockchain security experts from Chainalysis and Crystal. The hackers used various methods to disguise and move the stolen assets, but were unable to conceal their source. Russian users of Atomic Wallet are currently preparing a class action lawsuit against the company, claiming that Atomic Wallet did not take sufficient measures to prevent the hack and theft of assets.
- El Salvador’s Vice President, Felix Ulloa, said that the legalisation of bitcoin in the country has played a key role in reviving the economy after the COVID-19 pandemic. As a result, El Salvador’s government bond yields hit a record high in 2023, exceeding 70 per cent. Ulloa noted that the legalisation of bitcoin has led to an influx of investment and simplified the process of paying for goods and services for tourists, who no longer need to exchange currencies. In addition, more than 80 companies in the bitcoin industry operate out of El Salvador, and the local mining industry is also growing. President Nayib Bukele continues to experiment with cryptocurrency, attracting investors and aiming to make El Salvador a global cryptocurrency centre. All of these factors are contributing to the country’s revitalisation and job growth. The legalisation of bitcoin in El Salvador has attracted the attention of major players in the technology industry, such as Google and Meta, who intend to expand their business in the country.
- The Central Bank of Russia does not intend to impose restrictions on the use of the digital ruble, Director of the Department of the National Payment System of the Central Bank of Russia Alla Bakina said. She noted that restrictions on the types of spending of digital rubles contradict the logic of this instrument, which should be convenient and ubiquitous. She added that the introduction of restrictions would be pointless and a colossal cost. At the same time, the first deputy chairman of the Central Bank of Russia, Olga Skorobogatova, spoke about the possibility of customising digital rubles to pay for certain goods or services through smart contracts. The digital ruble is being tested on real customers, with 600 individuals and 30 legal entities participating. Earlier, Anatoly Aksakov, chairman of the State Duma Committee on Financial Markets, said that the digital ruble could be recognised outside Russia in two years.
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