Bitcoin (BTC) briefly breached $18,200 this week after the US Federal Reserve hiked interest rates by 50 basis points. Though this means a slowdown in rate hikes, the Fed has maintained its hawkish stance and that it is unlikely to pivot its monetary policy soon.
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 trader’s minds. Binance, which processed 75% of crypto industry’s trade volume in Nov. 2022, is viewed with the same suspicion that pulled down FTX with questions regarding its proof of reserves audit.
Some investors were in a hurry to withdraw their assets from Binance as it processed $1.9 billion worth withdrawals in a single day. The exchange has, thus far, remained resilient though its native token, BNB, has dropped by 17% this week.
The total crypto market is now near $800 billion with BTC dominance inching higher this week on account of larger drops in key altcoins. Investors hope that the upcoming holiday season will bring some cheer in December and subsequently has 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 of concern in the medium term. As this bear market plays out, we look at some positives in terms of adoption and other stories of the week below.
Indian govt 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 the trading of virtual digital assets.
In addition to a 30 percent income tax, the government started levying a surcharge and cess on the transfer of digital assets this year. In July, the Centre also implemented a 1% TDS on transactions related to virtual digital assets.
India aims to coordinate crypto regulation in G-20 finance 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 central bank and finance deputies for the G20 took place in Bengaluru, India, which is presently holding the G20 presidency.
India aims to prioritise the framing of globally coordinated crypto rules, thereby renewing the urgency for tighter regulations amid the crypto contagion triggered by the collapse of FTX.
A globally coordinated approach to unbacked crypto assets, advancing the international taxation agenda, managing global debt vulnerabilities, advancing financial inclusion and productivity gains, financing for climate action and sustainable development goals, and financing ‘cities of tomorrow’ were some of the key issues discussed during the G-20 meetings.
Apple to permit 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 anti-monopolistic requirements from the European Union (EU).
This is a huge win for crypto and NFT app developers as European customers would 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 be applicable starting May 2023 with businesses needing to fully comply by 2024.
Applications for NFT and cryptocurrencies that are now limited by App Store constraints may also gain from Apple’s ambitions to open its ecosystem. Such apps could then be installed via external sources and not be reliant on Apple’s strict policies.
Starbucks unveils beta of Web3
loyalty program
Starbucks has launched a beta test of its highly anticipated Odyssey program, which combines customer loyalty rewards with NFTs and other gamified elements.
The new initiative, which includes coffee themed NFTs that translate to real-world experiences, is an extension of Starbucks’ existing loyalty program, Starbucks Rewards, but leverages Web3 technology like the polygon blockchain and NFTs.
Members who were invited to the beta launch will also have access to the Starbucks Odyssey market, where users can buy and sell their digital collectible Stamps. 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 that members have a crypto wallet, own cryptocurrency, or have any understanding of the underlying Web3 technologies.
PayPal teams up with MetaMask to make it easier to buy crypto
Payments platform PayPal has teamed up with MetaMask parent company ConsenSys to allow MetaMask users to buy cryptocurrencies using their PayPal account.
MetaMask is a non-custodial crypto wallet that lets you 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 simply logging onto their Mobile MetaMask App, which will then redirect them to their PayPal account to complete transactions.
Top gainers this week (as of December 18, 2022)
Toncoin (TON) : 37% up
Unus Sed Leo (LEO): 7% up
XDC Network (XDC): 6% up
OKB (OKB): 5%
Bitcoin SV (BSV): 4%
Top losers this week (as of December 18, 2022)
Trust Wallet Token (TWT): 35% down
Chain (XCN): -31% down
Neutrino USD (USDN): 29% down
Filecoin (FIL): 29% down
Flow (FLOW): 25%
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