Crypto week at a glance: Bitcoin falls below $17,000 as US Fed remains hawkish
By the end of the week, however, BTC fell sharply back below $17,000 as FUD (Fear, Uncertainty and Doubt) regarding Binance played out in traders’ minds. Binance, which processed 75% of the crypto industry’s trading volume in November 2022, is being viewed with the same suspicion that pulled down FTX with questions regarding the proof of reserves audit.
Some investors were in a rush to withdraw their holdings from Binance as it processed $1.9 billion worth of withdrawals in a single day. The exchange has so far remained resilient even though its parent token, BNB, has fallen 17% this week.
The total crypto market is now close to $800 billion, with BTC dominance increasing this week due to larger falls in key altcoins. Investors are hoping that the upcoming holiday season will bring some cheer in December and then have a sustained rally as the market regains liquidity in 2023.
Macroeconomic conditions globally, including a possible announcement of a recession in the US, continue to be a cause for concern in the medium term. As this bear market plays out, we look at some positives in adoption and other stories from the week below.
Indian government collects over Rs 60 crore from crypto TDS
The Government of India has revealed that it has received Rs 60.46 crore from TDS (tax deducted at source) from trading in virtual digital assets.
In addition to a 30 percent income tax, the government began charging surcharges and installments on the transfer of digital assets this year. In July, the Center also implemented a TDS of 1% on transactions related to virtual digital assets.
India aims to coordinate crypto regulation in G-20 funding talks
The Group of 20 (G20) nations are working to reach a consensus on crypto-asset policy to inform better global regulation. The first gathering of G20 central bank and finance representatives took place in Bengaluru, India, which currently holds the G20 presidency.
India aims to prioritize the design of globally coordinated crypto rules, thus renewing the need for tighter regulations amid the crypto contagion triggered by the collapse of FTX.
A globally coordinated approach to unsupported crypto-assets, advancing the international tax agenda, addressing global debt vulnerabilities, promoting financial inclusion and productivity gains, financing for climate action and sustainable development goals, and financing the “cities of tomorrow” were some of the main issues discussed. during the G-20 meetings.
Apple allows third-party app stores, boom for NFTs and crypto
Tech giant Apple is getting ready to allow third-party app stores on its devices to comply with new EU antitrust requirements.
This is a big win for crypto and NFT app developers as European customers will be able to download alternative app marketplaces outside of Apple’s proprietary App Store, allowing them to download apps that avoid Apple’s 30% commissions and app restrictions. The new law will apply from and including May 2023, and companies must fully meet the requirements by 2024.
NFT and cryptocurrency applications currently constrained by App Store restrictions could also benefit from Apple’s ambitions to open up its ecosystem. Such apps can then be installed via external sources and are not dependent on Apple’s strict guidelines.
Starbucks unveils beta of Web3
loyalty program
Starbucks has launched a beta test of its long-awaited Odyssey program, which combines customer loyalty rewards with NFTs and other gamified elements.
The new initiative, which includes coffee-themed NFTs that translate into real-world experiences, is an extension of Starbucks’ existing loyalty program, Starbucks Rewards, but leverages Web3 technology such as the polygon blockchain and NFTs.
Members who were invited to the beta launch will also have access to the Starbucks Odyssey marketplace, where users can buy and sell their digital collectibles. Odyssey participants can purchase stamps directly with a credit card or using cryptocurrencies.
Starbucks aims to simplify the process of purchasing NFTs as it will not require its members to have a crypto wallet, own cryptocurrency or have any understanding of the underlying Web3 technologies.
PayPal teams up with MetaMask to make buying crypto easier
Payment platform PayPal has teamed up with MetaMask parent company ConsenSys to allow MetaMask users to purchase cryptocurrencies using their PayPal account.
MetaMask is a non-custodial crypto wallet that allows you to store crypto assets and interact with Web3 products.
The partnership intends to allow users to seamlessly purchase and transfer ETH from PayPal to MetaMask by logging into their Mobile MetaMask app, which will then redirect them to their PayPal account to complete transactions.
Top winners this week (as of 18 December 2022)
Toncoin (TON): Up 37%
Unus Sed Leo (LEO): Up 7%
XDC Network (XDC): Up 6%
OCD (OCD): 5%
Bitcoin SV (BSV): 4%
Top losers this week (as of 18 December 2022)
Trust Wallet Token (TWT): 35% down
Chain (XCN): -31% down
Neutrino USD (USDN): Down 29%
Filecoin (FIL): Down 29%
Flow (FLOW): 25%
