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‘Extreme demand’ for BTC at $20K creating new support levels: Glassnode

“Extreme” demand at the $20,000 price point for Bitcoin (BTC) appears to have forced the coins back into the hands of investors who care less about price while creating a new realized price level. In the latest The Week OnChain Newsletter published on Monday, Glassnode’s UkuriaOC pointed to “extreme demand” around the $20,000 region, noting that each psychological price level from $40,000 to $30,000 to $20,000 creates a new group of short-term holders (STHs). The Glassnode analyst noted that much of the supply that new STHs bought during that drawdown has not been sold even though prices are significantly down. This may be due to less price-sensitive buyers or those who care more about Bitcoin fundamentals than investment gains, driving demand. Between late April through June, the BTC price has fallen 55% from $40,000 to a low of about $18,100, according to CoinGecko. Glassnode wrote that this suggests the newly-minted STHs are price insensitive buyers with more confidence in Bitcoin,..

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Bitcoin hodling activity resembles previous market bottoms: Glassnode

The majority of Bitcoin has been “hodled” for at least three months in behavior bearing a striking resemblance to previous Bitcoin market bottoms, says blockchain analytics firm Glassnode. In a July 16 tweet, Glassnode noted that more than 80% of the total U.S. dollar (USD)-denominated wealth invested in Bitcoin has not been touched for at least three months. This signifies that the “majority of BTC coin supply is dormant” and that hodlers are “increasingly unwilling to spend at lower prices,” said the firm. Bitcoin’s price is $21,013 at the time of writing, down almost 70% from its all-time high of $69,044 in November 2021. The current price puts around 45% of Bitcoin holders with an on-paper loss, according to crypto intelligence firm IntoTheBlock. According to the Glassnode chart, other times that saw similar levels of Bitcoin hodling were during the end of the bear markets of 2012, 2015, and 2018. Last week, Coinbase's head of institutional research, David Duong, wrote in ..

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Paraguay’s crypto framework one step away from becoming law

The Paraguayan Senate passed a bill on July 14 establishing a tax and regulatory framework for businesses operating in the cryptocurrency and the crypto mining sectors. The bill, introduced last July by Senator Fernando Silva Facetti and passed in Congress in May before reaching the Senate, calls for the formation of the Ministry of Industry and Commerce (MIC) to oversee crypto industry service providers. The bill is now one step away from being ratified as law by President Mario Abdo Benítez. A notice from Congress in May stated that the bill pertains specifically to crypto mining, commercialization, intermediation, exchange, transfer, custody, and/or administration of crypto assets or instruments that allow control over crypto assets. Local news outlet ABC reported on July 14 that companies that operate in the crypto industry would be treated the same as those dealing with securities for tax purposes. As a result, they will be exempted by the Undersecretary of State for Taxation from..

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The regulatory implications of India’s crypto transactions tax

The Indian crypto landscape lost some momentum this year as the government introduced two laws demanding crippling taxes on crypto-related unrealized gains and transactions. India’s first crypto law, which requires its citizens to pay a 30% tax on unrealized crypto gains, came into effect on April 1. A commotion among the Indian crypto community followed as investors and entrepreneurs tried to decipher the impact of the vague announcement with little or no success. Knowing that India’s second crypto law — a 1% tax deduction at source (TDS) on every transaction — would translate into an even greater impact on trading activities, numerous crypto entrepreneurs from India considered moving bases to friendlier jurisdictions. Following the imposition of additional taxes, Indian crypto exchanges reported a massive drop in trading volumes. Data from CoinGecko confirmed that trading volumes on Indian crypto exchanges are down 56.8% on average as investors eye off-shore exchanges to cut their l..

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Burdensome but not a threat: How new EU law can affect stablecoins

The year 2022 saw not only drastic dips in leading cryptocurrencies and financial markets in general but also major legislative frameworks for crypto in prominent jurisdictions. And while the “crypto bill,” co-sponsored by United States senators Cynthia Lummis and Kirsten Gillibrand, still has a long way to go, its European counterpart, the Markets in Crypto-Assets (MiCA), had finally made it through Tripartite negotiations. On June 30, Stefan Berger, European Parliament member and rapporteur for the MiCA regulation, revealed that a “balanced” deal had been struck, which has made the European Union the first continent with crypto-asset regulation. Is the deal really that “balanced,” and how could it affect crypto at large and some of its most important sectors in particular? No direct ban, but tighter scrutinyThe industry met the latest MiCA draft with a mixed response — the cautious optimism of some experts was counterweighted by the diagnosis of “unworkability” on Twitter. While th..

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Bitty Kitty: Cat spoils Bitcoin node during price crash with ‘dirty protest’

A Bitcoin node is a pivotal piece of the Bitcoin (BTC) protocol. For bad actors, attacking nodes and bringing them offline is a sound strategy to undermine the network’s resilience. For one British Bitcoiner, such an attack took place, as the actions of his feline friend rendered his Bitcoin node “unreachable.” Bodl_hodler (who wishes to remain anonymous) told Cointelegraph that he “started running Raspberry Pi as Umbrel node January 2021,” as he wished to contribute to the overall decentralization of the Bitcoin network. Below is a picture of node in question before the attack. Notice the air vents on the node —a crucial element of the saga. Bodl's Bitcoin node. Source: @Bodl_HodlThe node ran smoothly since connection, confirming Bitcoin blocks on average every 10 minutes as per the difficulty adjustment. However, in late May 2022, when the price began to tumble under $30,000, Bodl “Went to log into the node for the first time in a while and it couldn’t be found on the network.” ..

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