As the Thanksgiving celebrations draw to a close, Bitcoin is trading sideways on November 25, maintaining a narrow range of $16,350 to $16,700.
The crypto market sentiment remains “risk-off” due to FTX-driven fear, uncertainty, and doubt (FUD). The failure of FTX, one of the largest cryptocurrency exchanges, stunned the entire industry.
Binance’s Industry Recovery Initiative (IRI)
Following the devastation, the largest cryptocurrency exchange by volume is leading the charge to rebuild infrastructure. Binance has launched the Industry Recovery Initiative, a $1 billion fund to assist struggling cryptocurrency firms.
In an interview with Bloomberg on November 24, crypto billionaire Changpeng “CZ” Zhao stated that the fund would have a “loose” structure, be publicly available on the blockchain, and accept contributions from other industry participants.
Binance has contributed $1 billion in cryptocurrency to the project, which could be increased to $2 billion if necessary.
According to the company, it has already received 150 requests for assistance from various struggling businesses. Furthermore, CZ confirmed that the fund may be interested in purchasing troubled cryptocurrency projects purchased by the now-defunct exchange FTX.
Polygon Ventures, Animoca Brands, Jump Crypto, Aptos Labs, GSR Markets, Kronos, and Brooker Group are among the companies that have already contributed $50 million to the initiative. It’s one of Binance’s efforts to save the cryptocurrency industry. As a result, the value of BTC/USD will rise as a result of the news.
Belgium Rejects Bitcoin, Ethereum, and other Digital Currencies as Securities
The Belgian financial regulator has reiterated that cryptocurrencies such as Bitcoin, Ether, and others that are only issued through computer code do not qualify as securities. The justification was presented in a November 22 report by Belgium’s Financial Services and Markets Authority (FSMA), with a version released for comment in July 2022.
According to the FSMA, the clarification comes in response to an increase in inquiries about how Belgium’s current financial rules and regulations apply to digital assets.
The criteria used to classify assets are technology-neutral, according to the FSMA. It denotes that the asset’s security status is independent of whether it is derived from a blockchain or another source. Instead, digital assets with an issuer are more likely to be classified as securities.
According to the Belgian regulatory agency, even though cryptocurrencies are not considered securities, they may be subject to other laws if used as a medium of exchange by a business.
In contrast to Belgium’s clear guidelines, the US Securities Exchange Commission (SEC), which is currently competing with the US Commodity Futures Trading Commission (CFTC) for regulatory authority over digital assets, has adopted a “regulation by enforcement” strategy.
Russian Crypto Mining Bill
A new bill involving cryptocurrency mining has been introduced in the Russian parliament’s lower house. The bill proposed allowing cryptocurrency mining and selling mined cryptocurrency on November 17.
Russia currently prohibits the use of cryptocurrencies for payment settlement. The new bill’s proposal, on the other hand, aims to make cryptocurrency mining and sales legal under an “experimental legal regime.”
According to Anatoly Aksakov, chairman of the Duma Financial Markets Committee, the proposed bill is expected to pass all three parliamentary readings in December 2022.
Some sources say the bill could become law as early as January 1, while others say it could go into effect as early as February 1. If Russia’s new mining bill becomes law, it is possible that miners will sell their digital assets on exchanges.
It would imply that miners send Bitcoin to exchanges where it can be sold for fiat currency or traded for other cryptocurrencies. An increase in the supply of a cryptocurrency on exchanges increases selling pressure, lowering the price of BTC/USD.
Bitcoin Price
The current Bitcoin price is $16,527, and the 24-hour trading volume is $23 billion. Bitcoin has been mostly unchanged in the last 24 hours. CoinMarketCap now ranks first, with a live market cap of $317 billion. It has a total quantity of 21,000,000 BTC coins and a circulating supply of 19,216,643 BTC coins.
Despite the dovish FOMC meeting minutes, Bitcoin has yet to break through the $16,785 barrier. The BTC/USD pair is currently descending towards a Fibonacci retracement level of 38.2%, which is $16,300. It has already crossed below the 50-day moving average line on the 4-hour timeframe, indicating a selling bias.
Similarly, the leading technical indicators, such as the RSI and MACD, are on the verge of entering a selling zone, and if this happens, BTC may fall below $16,300 and reach a support level of $16,000.
The next level of assistance is $15,600. In contrast, a bullish breakout of the $16,785 level could expose BTC to the $17,000 or $17,550 level.
Compiled by Coinbold
