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Investors dump crypto assets amid confusion

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Cryptocurrencies on Indian exchanges lost as much as a fourth of their value on Wednesday as panicked investors dumped their holdings amid prevailing confusion over whether the government would ban trading of such assets.
Crypto industry executives, however, claimed that a complete ban is unlikely given the mass adoption of crypto assets, with the government most likely to bring them under the oversight of local regulators.
While some media reports said the proposed ban would encompass all private cryptocurrencies, including their mining, holding and trading, others reported that the government may treat cryptocurrencies as financial assets.
The finance ministry did not immediately provide details about the draft law. A ministry official said one should wait for the bill to be tabled in Parliament.
Meanwhile, the world’s most-traded cryptocurrency, bitcoin, crashed to as low as 33,50,000 ( 33.5 lakh) on crypto exchange WazirX from a high of 46,35,371. In the global markets, bitcoin was trading around $56,800 ( 42.21 lakh), according to CoinGecko, a digital currency price and information data platform. Even tether, a stablecoin pegged to the dollar, traded at a discount of 25% in India. Other prominent coins such as ether, Shiba Inu and dogecoin also plunged by about 20% on Indian crypto bourses.
“On Tuesday night, we witnessed huge panic selling in our rupee market. It was primarily driven by the news of the crypto bill being introduced in the winter session of Parliament. The description of the note is the same as in January 2021, which induced immense fear in the minds of investors,” said Nischal Shetty, founder, WazirX.
Due to the frantic selling, investors on some exchanges, including WazirX, faced issues such as delays in accessing features such as trading and withdrawals.
However, the local crypto markets recovered later and were trading nearly in line with prices in global markets after some news reports claimed the government might consider allowing crypto trading for some investors.
On Tuesday evening, the government said it would introduce “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021″ during the winter session of Parliament beginning 29 November. The bill proposes prohibiting all private cryptocurrencies but allowing exceptions to promote the underlying technology and its uses.
According to industry insiders, the crypto bill wasn’t on the top of the government’s agenda around July, but events in the following months sped up its introduction.
The impetus probably came from the aggressive advertising crypto firms ran amid the Indian Premier League and the massive investment numbers they showed, said Sidharth Sogani, founder and chief executive of CREBACO Global, a research company focused on blockchain and cryptocurrencies.
“In Parliament (standing committee meeting), some MPs came with newspaper cuttings of ads,” said Sogani, who was present at the meeting with crypto stakeholders last week.
In the meeting, the industry proposed that the Securities and Exchange Board of India (Sebi) regulate exchanges, and the Reserve Bank of India oversees other crypto aspects, Sogani said. “But we don’t know if the government has considered that, even though it looks like the most feasible avenue,” he added.
Another industry executive said the draft bill isn’t going to propose a blanket ban on cryptos or stop crypto exchanges from operating. “Instead, it will place compliance requirements on exchanges and get Sebi involved to bring some of the same rules and regulations that are followed in traditional exchanges.”
The bill may also require companies listing their coins to make disclosures with the markets regulator and meet other compliance norms. The government listed the same Bill for the Parliament’s Budget session in January, but it wasn’t discussed.
“The 2019 bill tried to provide clarity on activities that are not allowed and has also defined the punishment in case of violation. One concern is the definition of cryptocurrency, which is far-reaching and may impact innovative blockchain solutions like NFT, which are gaining traction globally,” said Shravan Shetty, managing director, Primus Partners, a consulting firm.
Recently, RBI governor Shaktikanta Das warned that cryptocurrencies pose a grave risk to the country’s financial stability.
Experts said the central bank’s concerns about cryptocurrencies should not be brushed aside, but an outright ban would be impractical.
“A ban could lead to volatility, and a middle path would be desirable. As far as taxation of digital currencies is concerned, the tax laws are broad enough to tax them,” said Archit Gupta, founder and chief executive of ClearTax, an online tax service provider.
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Cryptoverse: Bitcoin miners get stuck in a bear pit – Reuters

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Sept 27 (Reuters) – Spare a thought for the beleaguered bitcoin miner.
In late 2021, miners were the toast of the town with a surefire path to profit: hook powerful computers up to cheap power, crack fiendishly complex maths puzzles and then sell newly minted coins on the booming market.
A year's a long time in crypto.
Global revenue from bitcoin mining has dropped to $17.2 million a day amid a crypto winter and global energy crisis, down about 72% from last November when miners were racking up $62 million a day, according to data from Blockchain.com.
"Bitcoin miners have continued to watch margins compress – the price of bitcoin has fallen, mining difficulty has risen and energy prices have soared," said Joe Burnett, head analyst at Blockware Solutions.
That's put serious pressure on some players who bought expensive mining machines, or rigs, banking on rising bitcoin prices to recoup their investment.
Bitcoin is trading at around $19,000 and has failed to break above $25,000 since August, let alone regain November's all-time high of $69,000.
At the same time, the process of solving puzzles to mine tokens has become more difficult as more miners have come online. This means they must devour more computing power, further upping operating costs, especially for those without long-term power pricing agreements.
Bitcoin miners' profit for one terahash per second of computing power has fluctuated between $0.119 and $0.070 a day since July, down from $0.45 in November last year and around its lowest levels for two years.
The grim state of affairs could be here to stay, too: Luxor's Hashrate Index, which measures mining revenue potential, has fallen almost 70% so far this year.
2140: THE LAST BITCOIN
It's been painful for miners.
Shares of Marathon Digital (MARA.O), Riot Blockchain (RIOT.O) and Valkyrie Bitcoin Miners ETF (WGMI.O) have sunk more than 60% this year, for example, while crypto-mining data center operator Compute North filed for bankruptcy last week.
Yet mining is ultimately a long-term proposition – the last bitcoin is expected be mined in 2140, more than a century away – and some spy opportunity in the gloom.
"The best time to get in is when market's low, the same mining rigs that went for $10,000 earlier this year you can get that for 50% to 75% off right now," said William Szamosszegi, CEO of Sazmining Inc which is planning to open a renewable-energy powered bitcoin mining operation.
Indeed, many miners are cutting back on buying rigs, forcing makers to cut prices.
For instance, the popular S19J Pro rig sold for $10,100 in January on average, but now sells for $3,200, analysts at Luxor said, also noting prices for bulk orders of some mining machines had fallen by 10% in just the past week.
Chris Kline, co-founder of crypto investment platform Bitcoin IRA, said miners would have to be "hyper-focused" on energy efficiency, both to bring costs down and to avoid any repercussions from climate change-related regulations.
"From managing their balance sheet, processing units and energy costs, miners will look to stay afloat regardless of current market conditions," he added.
Our Standards: The Thomson Reuters Trust Principles.
Crypto companies were undeterred by initial failure to obtain licences to operate in Britain and were submitting new applications, the Financial Conduct Authority said on Thursday.
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Crypto market volatile; Terra Classic Lunc leads the laggards, Bitcoin above $19k | Mint – Mint

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  • The American currency scaled past the 111 level against a basket of currencies — making cryptocurrencies against the greenback vulnerable as well. Currently, there is a steep plunge in trading volumes of cryptocurrencies.

Cryptocurrencies are trading volatile tracking feeble global equities after recession fears in major economies like the US and Europe sparked. The US Fed’s aggressive approach to tame inflation at the cost of economic growth further dampened the mood. Fed has hiked the rate by another 75 basis points. Wall Street and European stocks slipped sharply last week, while energy prices settled lower and bond yields climbed to multiyear highs. The American currency scaled past the 111 level against a basket of currencies — making cryptocurrencies against the greenback vulnerable as well. Currently, there is a steep plunge in trading volumes of cryptocurrencies.
On CoinMarketCap, at the time of writing, the global crypto market is at $939.57 billion up by 0.28% over the last day. However, total crypto market volume dropped nearly 37% over the last 24 hours and is at $49.82 billion.
Meanwhile, the total volume in DeFi is currently at $3.11 billion — 6.25% of the total crypto market 24-hour volume. The volume of all stablecoins is now $45.65 billion which is 91.63% of the total crypto market 24-hour volume.
Ethereum is the top trending cryptocurrency today followed by PancakeSwap and XRP.
The crypto leader Bitcoin is trading at a little over 19,000 mark at $19,090 up by 0.5%. Its market cap is nearly $366 billion. The digital coin’s dominance is currently up by 0.12% over the day at 38.95%.
Meanwhile, the second largest cryptocurrency Ethereum is performing near $1,331 and is up by 0.75%. Its market cap is around $163.3 billion.
Recently, Ethereum launched the most-awaited Merge which led to a transition of proof-of-stake consensus, officially deprecating proof-of-work and reducing energy consumption by ~99.95%.
Data from Coinglass showed that Ethereum has liquidated more than $759 million since September 15.
However, both Bitcoin and Ethereum have dipped by nearly 5% and 9% respectively in the last seven trading sessions.
Among top-performing cryptocurrencies in the last 24 hours are — Reserve Rights climbing by 9.5% followed by Chainlink up 5.5%. Algorand, Chiliz, and eCash surged by 4-5.5%.
On the other hand, Terra Classic Lunc took lead in the laggards list by plunging more than 7%, followed by XDC Network shedding nearly 5%, Stellar and DogeCoin tumbling more than 3% each. Axie Infinity, Helium, Nexo, Celsius, and Synthetix dived between 2-3%.
Terra tokens are under pressure as currently, Terraform Labs CEO Do Kwon is facing multiple jurisdictions. An arrest warrant has been issued by the Seoul Southern District Prosecutors Office against Kwon who is the forefather of TerraUSD algorithmic stablecoin and sister token Luna that wiped out reportedly $60 billion in the cryptocurrency market. Kwon’s whereabouts are unknown, although, the co-founder of Terra tokens denied rumours of being on the ‘run’ from government agencies.
Last week, US Fed in its latest policy statement said, “the Committee is highly attentive to inflation risks.”
FOMC further said, in support of these goals, the Committee decided to raise the target range for the federal funds rate to 3 to 3-1/4 percent and anticipates that ongoing increases in the target range will be appropriate. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt, and agency mortgage-backed securities, as described in the Plans for Reducing the Size of the Federal Reserve’s Balance Sheet that was issued in May.
FOMC is committed to returning inflation to its 2% objective.
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Bitcoin news – live: Price crash continues as crypto ‘stable’ coin UST uncouples from dollar – Yahoo News

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