Friday, May 20

News of the Week: Bitcoin Drops to $35,000 and Mining Difficulty Hits Highs


Key facts:
  • The Central Bank of Russia wants to ban the trading, mining and use of bitcoin.

  • According to JP Morgan, the valuation of Ethereum would be in danger due to the flight of NFT projects,

Among the outstanding news is the resounding drop in the price of bitcoin, which since Friday, January 21, has been trading below USD 40,000, losing the support it had maintained for most of this month. This is the second significant drop in the value of the cryptocurrency so far in 2022, after having closed 2021 at a price of around USD 47,000.

The price of bitcoin (BTC) continued with red balances in the last seven days. In this way, the floor that kept it between USD 41,000 and USD 45,000 is broken. The average weekly drop is estimated at 13%. At the time of this writing, the cryptocurrency is trading at USD 34,981, as reflected in the market price of Latin America and Spain, according to the CriptoNoticias price calculator.

With CriptoNoticias, those interested can keep up to date on price changes in the bitcoin and ether market in relation to their local currency. To do this, you can visit the BTC and ETH Prices section, which has a calculator to quickly and easily convert to your national currency.

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These are the most important news:

  • Amid the bitcoin (BTC) price decline that occurred on January 21, exchange liquidations that day exceeded $727 million, while in the derivatives market the settlements were USD 2.49 million, according to data from CoinGlass. Days before, this medium reported the analysis of Willy Woo, who said that BTC was close to reaching the bottom to rebound and continue to rise. However, the analyst Juan Rodríguez affirmed that in the world macroeconomic sphere there are reasons that explain the fall, among them the threat of the Central Bank of Russia to ban bitcoin trading and mining. These factors make you think that the price will not recover in the short term.
  • In this bearish context, the difficulty of bitcoin mining marked a new all-time high on January 21 by exceeding 25 T, which represents an increase of almost 9% with respect to the previous difficulty. This, while the vice president of the European Securities and Markets Authority (ESMA), Erik Thedén, called for a ban on Bitcoin mining, or specifically proof-of-work (PoW) mining. In a line of ideas similar to that of Russia, the official believes that the elimination of this practice would help to adjust to the plans to reduce the emission of greenhouse gases CO2, which cause climate change.
  • One of Bitcoin’s most important developers, Gregory Maxwell, warned that Lawsuits and lawsuits are the new threat for developers. He assured that anyone involved in the development of Bitcoin “runs the risk of being the subject of multimillion-dollar lawsuits” for which many have preferred to walk away. On the other hand, the analysis firm CryptoCompare foresees, in its most recent report, a prompt purge of non-transcendental cryptocurrency projects, such as those based on memes or NFTs due to the “significant challenges” that this technology faces.
  • According to a team of analysts at JP Morgan, Ethereum is losing share in NFT trading. The researchers determined that the network lost 15% of its presence in this market, going from 95% to close to 80% since January 2021. They point out that other blockchains are absorbing the share of projects and applications that flee from the high cost in Ethereum. , and developers would be choosing to host their projects on new, low-cost networks.
  • On January 17, the National Securities Market Commission (CNMV) of Spain published the regulations that will govern advertising related to bitcoin and other cryptocurrencies. According to the circular published by the regulatory body in the Official State Gazette, the legal text will enter into force on February 17. In this regard, the president of the CNMV, Rodrigo Buenaventura, justified the inclusion of the influencers as subjects of the new norm as a measure to avoid “veiled and misleading” advertising about bitcoin. This, while the Russian Federal Security Service confirmed the dismantling of REvil, one of the largest ransomware gangs on record.

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.

ROMO (Regret of Missing Out): in Spanish, “Repentance for Staying Out.” It is used to refer to investors who decided not to buy or withdraw when a certain cryptocurrency fell in price, while in the present it had a new rise.



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