Crypto News Headlines (12-Apr-2023)

While analysts from traditional banks remained mixed on the market impact of ether (ETH) after the much-awaited Shanghai upgrade later today, an on-chain report from Glassnode estimates at least $300 million worth of selling pressure.

“We estimate a total of 170K ETH intended to be sold after the Shanghai upgrade,” Glassnode said in a Tuesday report, citing on-chain data. “We project that only 100K ETH ($190M) of the total accumulated rewards will be withdrawn and sold.”

Glassnode said the estimate was made based on a “50% withdrawal credential update, our segmentation of depositors, and assumptions regarding investor conviction, and profitability” by using wallet behavior, period of staking and presence of liquid staking derivative products, such as Lido.

Indian Finance Minister Niramala Sitharaman is currently on an official visit to the U.S. to attend this year’s Spring Meetings of the World Bank Group and the International Monetary Fund (IMF) which are taking place from April 10 to April 16. She is also representing India at the G20 Finance Ministers and Central Bank Governors meetings on the sidelines of the IMF-World Bank Spring Meetings.

Sitharaman discussed a wide range of topics during her trip, including cryptocurrency regulation. At a roundtable discussion titled “Investment Opportunities for the Long Term: India on the Rise,” the Indian finance minister emphasized that the regulation of cryptocurrencies is a key topic being discussed by the G20 nations under India’s presidency. She stated:

Cryptocurrencies are a very important part of the discussion under India’s G20 presidency, given so many collapses and shocks in cryptocurrencies. We seek to develop a common framework for all countries to deal with this matter.

After a year of quiet, the well-funded Bitcoin tech infrastructure company Lightspark, founded in 2022, has unveiled a platform for Bitcoin’s Lightning Network aimed at onboarding businesses to the network.

Lightspark is led by former Paypal president and entrepreneur David Marcus, who co-created Diem, a Facebook cryptocurrency product that failed to take flight after arousing the suspicions of US regulators. Lightspark’s announcement on Twitter calls the new Lightspark Platform “the first enterprise-grade entry point to the Lightning Network.”

Bitcoin (BTC) held firm above $30,000 on Tuesday as investors awaited Wednesday’s U.S. consumer price index (CPI) report for March and Ethereum’s Shapella upgrade.

The largest cryptocurrency by market value was recently hovering over $30,200, up over 3% in the past 24 hours. BTC topped the psychologically important $30,000 level late Monday evening (ET) for the first time since last June. Analysts expect the March CPI to continue a recent cooling trend with the year-over-year rate rising 5.2%, down from February’s 6%. The month-over-month rate is also expected to cool.

“Traders [are] speculating that this week’s CPI number could come in at a level that gives the Fed reason to think about pausing raising rates in the next meeting, thereby giving a boost to assets like bitcoin,” James Lavish, managing partner at Bitcoin Opportunity Fund, told CoinDesk in an email.

The Spanish Tax Administration Agency (AEAT) is increasing its efforts to charge the local holders of crypto assets. The AEAT intends to dispatch 328,000 warning notices to those who should pay their taxes on crypto for the 2022 fiscal year.

According to the local newspaper El Mundo, the number of notices increased by 40% in a year, with 150,000 warnings in 2022. However, the fiscal authorities appear to be taking the matter seriously only recently, with just 15,000 notifications in 2021.

However, such activity isn’t focused solely on crypto, with more than 660,000 notices to be sent this year to those who underreported their rental income and 807,000 for their income abroad.

Despite recent regulatory headwinds, the cryptocurrency market has rallied strongly over the last month, with bitcoin (BTC) outperforming, JPMorgan (JPM) said in a research report last week

.The bank notes that bitcoin, the largest cryptocurrency by market cap, gained at the same time as gold as both are viewed as hedges to a “catastrophic scenario.”

Recent problems in the banking sector also “exposed the weaknesses of the traditional financial system given bank’s maturity mismatch is susceptible to bank runs,” analysts led by Nikolaos Panigirtzoglou wrote.

Solana (SOL) rose by as much as 15% in today’s session, as bullish sentiment returned to cryptocurrency markets.

Following a low of $20.18 to start the week, SOL/USD rose to a peak of $23.20 on Tuesday.

As a result of today’s move, solana rose to its strongest point since March 20, when the token was at a high of $23.99.

From the chart, it appears that today’s move coincided with the 14-day relative strength index (RSI) moving beyond a ceiling at 58.00.

At the time of writing, the index is tracking at 63.74, which is marginally below a higher resistance level of 64.00.

Should solana bulls take the RSI beyond this point, then there is a good chance that price could move above $24.00.

Ren took to Twitter to inform its community that it must transfer the protocol’s assets to FTX debtors’ cold wallets.

“The cryptocurrency assets will be transferred to distinct segregated wallets cold storage wallets designated for these assets transferred by Ren, separate from the other Debtor cold storage wallets,” reads the announcement.

The price of the project’s governance token has dropped 8% following the news, per CoinGecko.

The Ren protocol lets users create a variety of pegged tokens, such as its Bitcoin offering called RenBTC, in order to make them compatible with Ethereum.

Alameda acqui-hired Ren in February 2021, with its primary development team joining the FTX-linked trading firm.

A European Commission-funded report has called for tougher identity checks on crypto exchange users as regulators seeks to combat the rising use of darknet marketplaces to buy illegal substances.

The report, commissioned by the European Monitoring Centre for Drugs and Drug Addiction, an agency of the European Union, comes as lawmakers in the bloc push for tougher anti-money laundering checks on transactions made using cryptocurrency – and it cautions that better police training could prove more effective than outright bans.

“It is critical that countries around the world implement the recommendations from the Financial Action Task Force,” ensuring the users of exchanges, brokers and ATMs can be identified when they cash out illicit gains, it added.

ZA Bank, Hong Kong’s biggest virtual bank by assets, is reportedly set to provide crypto account services and facilitate crypto-to-fiat exchanges.

According to an April 12 Bloomberg report, the bank will act as a settlement bank to allow token deposits at licensed exchanges to be withdrawn in Hong Kong dollars, Chinese yuan and United States dollars, and is also offering account services to crypto firms.

The accounts for local crypto firms follow a trial in a regulatory sandbox that saw approximately 100 firms participate, but ZA Bank CEO Ronald Iu noted that clients from mainland China would not be offered the service due to the country’s restrictions.