Bitcoin price movement retained bearish bias last week after unsuccessful attempt to rebound above $41,450 as bears retained control of crypto market. A glance at the Bitcoin daily chart reveals the bearish trend continues, Bitcoin is testing the lower bound of the channel that it has been trading in since the start of 2022!
The crypto market’s attempt to rebound last week was not successful. Federal Reserve’s expected move to raise interest rates by half a point at its two-day meeting starting tomorrow weighs on global markets. Past seven days were marked by increased legislative activity on crypto regulation around the globe with US lawmakers reintroducing bill to give CFTC crypto spot market oversight, Panama exempting digital assets from capital gains tax and Central African Republic adopting Bitcoin as legal tender. And Dogecoin surged after reports that Twitter would accept Musk`s takeover offer.
A bipartisan group of US lawmakers introduced last Thursday a bill that would give the Commodity Futures Trading Commission (CFTC) a greater role in overseeing crypto spot markets. The Digital Commodity Exchange Act of 2022 (DCEA) would create a definition for "digital commodity" and allow the CFTC to oversee companies issuing or letting people trade these types of tokens. These digital commodities could only be sold on a CFTC-registered exchange.
Last Wednesday the National Assembly of the Central African Republic passed a bill establishing a legal and regulatory framework for cryptocurrencies, and made bitcoin legal tender alongside the existing CFA franc. The President signed the bill and the Central African Republic became the second nation in the world to adopt bitcoin (BTC) as legal tender. Less than a year ago, El Salvador became the first country to adopt Bitcoin as legal tender.
The same day Panama`s legislature passed a bill aimed at making the country a favorable locale for crypto business. The bill doesn`t allow for any crypto to become legal tender, but makes possible free use of crypto as a means of payment for any transaction. The law treats crypto assets as foreign-source income and in accordance with Panama`s territorial taxation system they will not be subject to capital gains tax.
Dogecoin (DOGE) surged 9% in hours following reports that Twitter would accept Musk`s takeover offer. Analysts attribute the surge to investors expectations dogecoin would be included in Twitter’s long-term plans. Earlier last month, Musk proposed dogecoin as one of the payment options for Twitter Blue, the site’s subscription service with premium features. Tesla already accepts DOGE payments on its online merchandise store.
