Indira Kempis Said that There Is a New Bitcoin ATM in the Senate of Mexico

Alexander Salazar
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Indira Kempis Said that There Is a New Bitcoin ATM in the Senate of Mexico

Senator Indira Kempis stated that the Mexican Senate had the ATM installed for educational purposes. José Rodríguez suggested that Monterrey and Guadalajara would possibly receive new automatic cryptocurrency devices.

Senator Indira Kempis recently said that now there is a Bitcoin ATM in the Mexican Senate. The official is one of the principal promoters of the pioneering cryptocurrency in the Spanish American country.

In February, the senator expressed that she believed Bitcoin should become legal tender in Mexico. She argued that its adoption could boost financial inclusion in her country and worldwide.

Kempis posted on her Twitter account that the Mexican Senate had the first Bitcoin ATM installed in its headquarters. She explained that they did it to educate about inclusion and the financial education of the future.

The Mexican senator commented that the Mexican Senate has a Bitcoin ATM for the first time. She considers it legitimizes the agenda she has been promoting to regulate the cryptocurrency.

Legislators Seek to Modernize the Economy with New Bitcoin ATMs

Indira Kempis said they are happy to present that alternative and respond to curiosity. The latter show a lot of interest, unlike those Mexicans who still do not know about Bitcoin.

While the cryptocurrency ecosystem applauds the initiative on social networks, some senators note that people can already trade Bitcoin at the ATM. Legislators have agreed that it is an excellent time to modernize the economy.

José Rodríguez, director of Talent Land, suggested the possibility of installing more devices in other Mexican cities. He said they had noticed the most interest from people in Monterrey and Guadalajara. ChainBytes and Mexico-based Bitcoin ATM operator Axolotl worked together to install the new device in the Senate of the Republic.

The ATM May Allow Mexican Legislators to Become Familiar with Bitcoin

Eric Grill, the CEO of ChainBytes, commented that the new ATM would allow Mexican legislators to become familiar with Bitcoin technology. He said that he hopes Mexico will accept BTC as legal tender, following the steps of El Salvador.

In that regard, data from Coin ATM Radar only indicate about 13 machines installed in Mexico. Most of those devices are in Mexico City but do not include the one recently activated today.

Over the weekend, there was a forum on the pioneering cryptocurrency at the Senate headquarters. The community and the legislators evaluated the route they should follow to finalize a law that regulates the cryptocurrency industry.

Fear, ignorance and uncertainty have prevented a regulatory framework focused on Bitcoin in Mexico. However, representatives of the industry and the community believe it is time to establish the regulation. They consider that this would prevent illicit activities like money laundering and terrorism and help citizens in case of scams.

Bitcoin is trading at around USD 38,162 and has accumulated a 6.0% loss over the last 24 hours. Its trading value is above USD 31.23 billion, and its market capitalization is about USD 724.30 billion, according to CoinGecko.

By Alexander Salazar

A Banker Believes that the Dream of Satoshi Nakamoto Has Not Yet Come True

Alexander Salazar
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A Banker Believes that the Dream of Satoshi Nakamoto Has Not Yet Come True

Fabio Panetta, a member of the ECB, considers that Bitcoin can cause serious harm to society. Although the ecosystem and the interest in cryptocurrencies are growing, Panetta does not support using them for paying or storing value.

Fabio Panetta recently commented that the creation of reliable money by Satoshi Nakamoto is still a dream. The executive of the European Central Bank (ECB) pronounced those words in a speech at Columbia University, the US.

Panetta has always rejected cryptocurrencies, which was evident in the speech published by the ECB on its official website on April 25th. In the speech For a few cryptos more: the Wild West of crypto finance, he criticized the operation of the Bitcoin ecosystem.

The economist, former director-general of the Central Bank of Italy in 2019, talked about the cryptocurrency sector. He compared the situation with what happened 170 years ago when Americans went to the west of their country for fortune.

According to Panetta, greed and anarchy turned the US into the Wild West, where a few men exploited the dream of many. The executive also pointed out that the same thing is happening with cryptocurrencies.

The manager said that the global financial crisis, the growing distrust in banks, and technological innovation gave rise to a new dream. He referred to the origin of the Bitcoin network as a digital gold rush beyond state control. However, he considers that appearances are deceptive more than a decade after that event.

In the first part of the speech, Panetta questioned the volatility in the price of Bitcoin and its alleged use in illegal activities. He also argued that it contributes to harming the environment and that its decentralization is false. Furthermore, he said that the world financial system faces risks due to that new form of money.

Fabio Panetta Believes that Regulation May Allow Protecting Users

Following the above criticisms, Panetta expressed an imminent need to regulate the cryptocurrency sector. For that reason, he urges the European Parliament to speed up the processes to help investors.

He acknowledged that the ecosystem and the interest in cryptocurrencies from citizens worldwide are growing. However, he did not express his support for them as either a new payment system or a store of value.

The official said globally coordinated regulatory action is necessary to address delicate issues. He mentioned the use of crypto assets in illicit cross-border activities and their environmental footprint.

He highlighted the regulatory work carried on in the eurozone after the debates and votes by the European Parliament. They seek to approve the Markets in Crypto Assets (MiCA) bill. He also considers it is necessary to support the application of higher taxation on the sector.

Finally, Panetta called for the development of a European central bank digital currency, the digital euro, in a shorter timeframe. However, the ECB has kept a public consultation open for citizens to comment on that new currency. According to that survey, most Europeans prefer cash and lean toward ruling out the digital euro as a payment system.

By Alexander Salazar

With a New Resistance Level at USD 40,000, Bitcoin Bears Choose to Keep their Holdings

Alexander Salazar
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With a New Resistance Level at USD 40,000, Bitcoin Bears Choose to Keep their Holdings

Despite a 10% 4-day correction to USD 38,200, most holders have chosen to stay on the sidelines. Traders became more uneasy when Bitcoin tested the USD 39,000 support, but no data indicates whether it will continue dropping.

The worsening situation in traditional markets may have maintained the price of Bitcoin (BTC) below USD 40,000 for three days in a row. For example, the S&P 500 index has gone down by 5% since April 20th. Besides, the WTI crude oil price has dropped by 9.5% in a week, erasing all gains since March 1st.

Meanwhile, Shanghai has struggled to control the worst COVID-19 outbreak in China despite strict lockdowns. Timothy Moe, the chief Asia-Pacific equity strategist at Goldman Sachs, considers it makes sense to worry about that disease, as it affects the economy.

Investors Choose to Move Away from Risky Assets

The steady deterioration of the global macroeconomic scenario led investors to take profits from riskier assets. That caused the US dollar currency index (DXY) to reach its highest level at 101.8 in 25 months.

Jared Huffman and 22 other US House of Representatives members have contributed to regulatory uncertainties affecting cryptocurrency mining. On April 21st, they asked the Environmental Protection Agency to assess whether that activity violated environmental statutes.

The price of Bitcoin has undergone a 10% 4-day correction to USD 38,200 since April 25th. However, most holders have chosen to stay on the sidelines, as data from Glassnode confirms. The share of supply inactive for at least one year is at an all-time high of 64%. For that reason, it is relevant to see whether the recent price rejection has influenced the mood of derivatives traders.

Derivatives Markets Show that Traders Are Bearish on Bitcoin

Traders have to look at the premium (basis) on Bitcoin futures to understand whether the market is bearish. As those fixed-date futures have no funding fee, their price will differ considerably from regular spot exchanges.

Futures should trade at an annualized premium of 5% to 12% in a healthy market. However, the Bitcoin basis went below that threshold on April 6th and is currently 2%. In other words, futures markets have assessed bearish momentum over the last two weeks.

To rule out externalities specific to the futures instrument, traders should also look at options markets. For example, the 25% delta slope compares similar call and put options.

That indicator will turn positive with prevailing fear, as the premium for protective put options is higher than for similarly risky call options. However, the opposite is true when greed arises, causing the 25% tilt indicator to move into the negative zone.

The slope indicator would move above 8% if option investors feared there would be a drop in the price. In contrast, the general hype reflects a negative inclination of 8%. On April 7th, the metric went down and has remained above the threshold level since then.

Traders Will Resist an Eventual Rise in Price

According to derivatives indicators, Professional Bitcoin traders became more uneasy when Bitcoin tested the support at USD 39,000.

No data can predict whether Bitcoin will continue its downward trend, but current information indicates that traders overload downside protection. For that reason, traders will question any surprise recovery in the price.

By Alexander Salazar

What Bitcoin Investors Should Bear in Mind in the Coming Days

Alexander Salazar
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What Bitcoin Investors Should Bear in Mind in the Coming Days

The victory of Macron in France has not affected Bitcoin, but the Hang Seng index and the Shanghai Composite have dropped. As short-term price action on Bitcoin makes it an uninspiring trade, most HODLers choose to keep their coins.

The price of Bitcoin (BTC) started an uncertain week and now seems to be holding resistance at around USD 40,000. The pioneering cryptocurrency closed four weekly red candles in a row, something unseen since June 2020.

Doubts about the macro outlook for the market are still the norm, as there seems to be little to comfort the bulls as the week winds down. After losing USD 4,000 over the last few days, the price now focuses on retesting liquidity levels toward USD 30,000.

However, long-term holding companies and key players like miners take a more optimistic position on Bitcoin investment. For that reason, it is relevant to look at the forces at play that might shape the price action of BTC in the coming days.

The Problems in Asia Overtake the French Election Relief

An external event crucial for risk assets earlier in the week is the French election, won by incumbent Emmanuel Macron. People expect the second term of Macron, a sigh of relief for market players, to lift French stocks and the embattled euro.

The European Union and the United States are undergoing inflation and a bond market crash. In addition, the European Central Bank (ECB) has not yet raised interest rates or reduced its nearly USD 10 trillion balance sheet.

The victory of Macron has not affected Bitcoin, but risk assets struggle with an Asian downturn as COVID-19 arouses sentiment in China. The Hang Seng index in Hong Kong has gone down by 3.5%, while the Shanghai Composite has lost 4.2%.

The Strength of the US Dollar Is Back

After stumbling in the two-year highs last week, the US dollar currency index (DXY) seems to continue its bullish trend. At 101.61, DXY is challenging its performance from March 2020, when the coronavirus crash caused assets worldwide to drop.

The strength of the US dollar has seldom been a boon to Bitcoin, but the inverse correlation seems to be in control. Well-known trader Crypto Ed jokingly said that the DXY developer announced a token burn in response to the latest move.

Preston Pysh, who hosts Investor’s Podcast Network, believes that something does not seem to be going right. He said that the Bank of Japan implements  Yield Curve Control while the yen collapses. He added that the US Fed might hike 50 basis points while the US dollar hits new highs.

Long-Term Holders (HODLers) Establish a New Record

Short-term price action on Bitcoin makes it an uninspiring trade for anyone other than the most experienced players. For that reason, it is not surprising that most HODLers choose to stay on the sidelines and do what they do best.

That is evident in on-chain data, which shows that the proportion of the Bitcoin supply dormant for at least a year is at all-time highs. Citing figures from Glassnode, economist Jan Wuestenfeld pointed out that those accumulated coins are becoming older.

Data from Glassnode indicates that the supply that has been dormant for a year or more has exceeded 64% for the first time. The HODL Waves indicator showing HODLed coins of all ages confirms the trend.

By Alexander Salazar

Two Analysts Talk about How the Bitcoin Price Has Evolved

Alexander Salazar
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Two Analysts Talk about How the Bitcoin Price Has Evolved

Bitcoin is currently amid choppy trading conditions, indicating uncertainty among traders due to persistent macroeconomic and geopolitical risks. Fear and greed usually precede positive returns in the short term, but changes in market sentiment can create a bearish environment.

Some analysts believe the price of Bitcoin (BTC) might reach levels only expected in science fiction movies or the metaverse. However, it is relevant to remember that the same happened in the early days of the crypto universe. Investors never imagined that the value of BTC would reach USD 69,000, appreciating by 10,000% in 10 years.

Jason Pizzino, a renowned Australian cryptocurrency analyst, has put the substantial improvement of the crypto asset on the table. Although many consider 25x an exaggeration, he recalled there was a 22x return since 2018 until its current all-time high. For that reason, he thinks it is not too far from the point, as it may not take much longer than people expect.

Bitcoin is currently at the midpoint of a three-month price range amid choppy trading conditions. That indicates uncertainty among traders due to persistent macroeconomic and geopolitical risks.

The growing correlation between BTC and stocks implies that investors are more sensitive to the impact of rising interest rates on asset values. That could lead to lower market yields than the previous two years of unprecedented monetary and fiscal stimulus.

The Bitcoin market has suffered drops of just over 1.12% over the last week and of around 8.76% in the past month. Those declines become more complex at the semi-annual level, 34.5%, while BTC has dropped by 15.8% so far this year.

The market capitalization of Bitcoin is about USD 754.78 billion, which places it 9th in the asset ranking behind Tesla and ahead of Berkshire Hathaway. Meanwhile, its dominance among all cryptocurrencies accounts for 41% of the total.

Rapid Changes in Market Sentiment Can Create a Bearish Environment

After a week of sideways moves in Bitcoin, the fear and greed indicator shows that the former sentiment has reached extreme levels.

Alejandro Zala, Country Manager of Bitpanda in Spain, considers that those sentiments usually precede positive returns in the short term. However, Bitcoin and other cryptocurrencies have shown that market sentiment can change rapidly, creating a bearish environment.

The expert highlights a strong correlation with US equities, while Bitcoin remains within the ascending pattern of a low-momentum move. Over the last week, the correlation coefficient for Bitcoin and US equities approached 0.90, with 1 being the perfect correlation.

Zala also explained that the 50-week moving average continues to decline slowly and serves as the first resistance line. Momentum indicators are mainly flat and move toward a neutral area, showing investor indecision. Amid high uncertainty and despite the shape of the pattern, the breakout direction is unclear.

Concerning the technical analysis, premium indicators show that the total score of the crypto asset dropped to 3 out of 10. For that reason, Bitcoin follows a downward trend and has a decreasing trading volume in the medium and long term. Meanwhile, its amplitude range and the price volatility seem to decrease in both aspects.

By Alexander Salazar

Uniswap users Experienced a blockage Due to Suspicious Activity

Jenson Nunez
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Uniswap users Experienced a blockage Due to Suspicious Activity

Uniswap works in parallel with blockchain tracking firm TRM Labs Users have already reported blocking specific addresses on the exchange.

The decentralized exchange Uniswap has taken a step contrary to the “decentralization” they encourage by blocking user addresses that they consider involved in illegal activities.

The number of addresses that got obstructed so far on Uniswap remains unknown. However, there are already users highlighting this situation on social media. Such was the case of the tweeter @0x9fd, who revealed a screenshot showing the error message thrown by the system regarding an address.

The message said that the address in question got linked to one or more blocked activities. The tweeter accompanied the image with a brief comment showing a bit of advice against using Uniswap.

The novelty arises from the agreement approached by the leading developer of the protocol, Uniswap Labs, with the blockchain activity tracking firm TRM Labs. In their FAQ section, Uniswap Labs explains that they receive data from TRM Labs, which mixes on-chain data and real-world research to detect financial crimes and other harmful activities.

Within the same section of its website, Uniswap Labs clarified that the blocking of an address occurred because it was identified as an address probably connected to illicit behavior.

In that sense, the entity claims not to expect many flaws, but flaws are always possible. When a user wants to appeal the blocking of one of their addresses, they will require to contact the compliance division to intervene in the procedures to unblock their wallet address.

Increased Regulatory Pressure Against User Privacy

Uniswap is not the first platform to yield to regulatory pressures intending greater pówer over the movements of funds of users.

This week Binance, the exchange with the most significant trading volume in the world, began to obstruct the activities of Russian users on its network.

Meanwhile, international organizations such as the Financial Action Task Force tries stricter regulation procedures for bitcoin and the world of digital assets in general. Just a few days ago, the FATF highlighted in a report that it would be more strict about strengthening controls on the industry, alleging a strong stance against illegal behavior regarding finances.

According to the document, only 9% of member countries apply appropriate policies and regulatory procedures for virtual asset service providers such as bitcoin (BTC) and other digital assets (VASP) to reduce the risks of illegal activities.

The move by Uniswap did not get well- received in the cryptocurrency ecosystem. In theory, being a decentralized protocol, it should be free of censorship and open financial systems for everyone.

By: Jenson Nuñez

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