Among the most outstanding news of the week is the dissemination of the project to regulate bitcoin in the United States, called the “Responsible Financial Innovation Act”, presented to Congress. It is a bipartisan proposal that Republican Senator Cynthia Lummis drafted with Democrat Kirsten Gillibrand.
In this context, the price of bitcoin (BTC) experienced a significant drop this weekendreaching USD 27,000 on Sunday, June 12, and USD 25,000 on Monday, June 13, levels not seen since February 2021. At the time of writing, bitcoin is trading at USD 25,444, as reflected in the market price of Latin America and Spain, according to the CriptoNoticias price calculator.
These are the most important news:
- Bitcon and ether (ETH), the Ethereum cryptocurrency, recorded a deepening loss in value this weekend, after a slight recovery the previous week. For the morning of June 12, 2022, the weekly average drop in the price of BTC was estimated at 8%, and that of ETH at more than 18%. The decline was pronounced this Monday, June 13, with losses of 24% in 7 days for BTC and 37% for ETH. Given these levels of decline, the “Fear and Greed” index is at 14, a value representing “extreme fear”. Despite this scenario, many bitcoiners believe that it is normal in a bear market. Others remain optimistic. This is the case of the American businessman Mike Novogratz, who predicts that this “crypto winter” could end in October 2022.
- On June 7, the bipartisan bill to regulate bitcoin in the United States, by Senators Cynthia Lummis and Kirsten Gillibrand, was announced. The 69-page text, which was introduced to the Senate for review, defines a legal framework that they hope will promote the development of the ecosystem. Among the key contents of the project, the acceptance of stablecoins as a means of payment and the exception in tax collection to minority payments with BTC. Comments on the proposal were mixed. Some members of the community highlighted the intention of regulation as positive by providing regulatory clarity, while others believe that users are not protected.
- After the Executive Order issued last March, the president of the United States. receives first recommendation for bitcoin regulation: The Department of Justice, together with the attorney general, Merrick Garland, propose Joe Biden to work with strong international cooperation to be able to control the cryptocurrency sector and prevent the commission of crimes. This, while in the Caribbean island of Jamaica, the Senate enacted a law that establishes the country’s CBDC as legal tender, called Jamaica Digital Exchange or Jam-Dex. The goal is to discourage the use of bitcoin on the island, where it is expected that, in five years, 70% of its population will adopt the so-called Jamaican dollar.
- The World Bank this week released a stark outlook on the current global economy and what the future holds. In his report he noted that the risk of stagflation increases amid a sharp slowdown in economic growth. It is a grim projection that leaves investors uncertain about how it will impact the stock market and the price of bitcoin. This, while consumer prices in the United States increased 8.6% in May compared to last year, which represents the highest inflation in more than four decades. The Consumer Price Index report, published on June 10 by the United States Bureau of Labor Statistics (BLS), highlights that the year-on-year increase registered last month is the highest since December 1981.
- A group of 21 human rights activists and defenders, among which the Venezuelan Leopoldo López and the bitcoiner Alex Gladstein stand out, sent a letter to the US Congress, in which set position in favor of bitcoin, a currency that, according to what they limit, has made it possible to “give refuge” in countries with broken economies. On the other hand, a Coin Center statement presented on June 10 qualifies as “a clear overreach by the government to force citizens to spy on each other without a court order.” The response of the specialists of this company outlines the reasons why they are suing the US Department of the Treasury., requesting an amendment to section 6050I of the Tax Code, which is part of the Jobs and Infrastructure Investment Act.
- A recently published survey by the firm Deloitte indicates that 85% of US merchants have plans to accept bitcoin and stablecoins in the coming years. In a similar line of ideas, a report from the company Blockware Intelligence presents the results of a study according to which mass adoption of bitcoin will exceed 10% in the year 2030, and will reach the “early majority” stage faster than other disruptive technologies like the Internet. Meanwhile, American Express will offer a new card in conjunction with the company Abra -specialized in products related to the use of cryptocurrencies- so that its users receive rewards in bitcoin; and Mastercard announces that it will allow its cards to be used for the purchase of NFTs.
If you want to know the meaning of several words of the terminology of the crypto world, you can consult them in the extensive Glossary of CriptoNoticias. Here’s a little preview with the word OCD.
OCD (Obsessive Cryptocurrency Disorder): translates as “Obsessive Cryptocurrency Disorder”, humorously referring to the alleged psychiatric disorder suffered by those who cannot stop checking the prices of crypto assets.