BTC price predictions, the record amounts of investments in cryptocurrency, and the place of a new asset class in the Russian financial system

Miners continue to accumulate bitcoin and other key news. Summing up the results of the week

21.12.2021 - 08:30

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5 min

The price of the first cryptocurrency over the past 7 days was in the range of $45 000 to $49 000, a rise of 3,79% over the week, giving the community a reason to expect further appreciation. This is indirectly evidenced by the actions of the miners, who adhere to their HODL strategy and take their time to sell new coins. According to Glassnode, the total number of such assets is 1,778 million BTC.

The source: GlassnodeWhat predictions do the experts give?

Morgan Creek Capital chief executive Mark Yusko has predicted the growth of bitcoin to $250 000 over the next 5 years. Yusko called the current drop in value false and linked it to the launch of a series of the US exchange-traded funds.

At the same time, another part of the community believes bitcoin is in a bearish cycle. According to the analyst and trader Peter Brandt, the BTC exchange rate will fall by another 35%. He suggests that the first cryptocurrency has not yet reached the bottom of the correction due to the low trading volume. The expert focused on the fact that the asset's correction always ended after trading with high volumes amid panic selling.

The overall market situation

Ethereum is up 7,62% and Binance Coin is up 1,07% based on 7-day results. According to CoinMarketCap, YFI (+83,55%), AR (+53,36%) and LUNA (+50,38%) projects are demonstrated the best results. As for the outsiders, Rose (-11,63%), Gala (-9,93%) and ICP (-8,08%) showed the biggest drop.

The total capitalization of the crypto market increased from $2,182 trillion to $2,243 trillion in 7 days with bitcoin dominating at 40,8%. As can be seen on the infographic of the Coin360 portal, the overall market backdrop is in the green zone.

The source: Coin360What events took place in Russia?

On Monday, December 20, Anatoly Aksakov, the head of the Lower House’s Committee on Financial Markets, said that Russia had made a preliminary estimate of the amount of funds invested in cryptocurrency. According to the official, it refers to 5 trillion Russian rubles (RUB). Aksakov urged to put a stop to this issue, to think about possible bans and restrictions, as well as to prescribe further strict liability for violation of the legislation.

On the same day, the regulator also expressed its own opinion on the development of the crypto market in Russia. According to RBC, the Bank of Russia will soon publish a report in which it will describe all the details of the regulation. However, it is already known that cryptocurrencies will not have a place in the Russian financial system:

“This report will include our approaches associated with the place we see for cryptocurrency within the Russian financial market. I'll give you a hint, we do not see a place for cryptocurrency on the Russian financial market,” said Vladimir Chistyukhin, the Deputy Chairman of the Russian Central Bank.

The preliminary data from the report shows that citizens and legal entities will be able to buy and store cryptocurrency, but not through the Russian financial structure and intermediaries.

What events took place in the world?

In the UK, attempts continue to achieve the introduction of unified rules for the regulation of the crypto market. On December 19, the Bank of England launched an initiative to start negotiations with other countries to tighten the legal framework in this area. According to Sarah Breeden, executive director for strategy and risk at the UK Central Bank, rules need to be developed to protect the global financial system. Especially given the high popularity and rapid growth of the digital asset industry.

China last week switched to an active fight against the crypto content on the video platforms. The Chinese authorities have implemented a total ban on the publication of videos about digital assets. The restrictions primarily affected short video services like Douyin (the local equivalent of TikTok). The China Netcasting Services Association believes the measures taken will help protect the stability of PRC's socialist system.

In other important news, the Puerto Rican government is interested in blockchain technology. According to the officials, a distributed ledger may be used to launch an effective anti-corruption program in the country. The lawmakers plan to meet with the blockchain experts to create smart contracts that will regulate the relationship between the government and society, as well as ensure transparency in the distribution of public funds.

Author:

Michael Golikov Michael Golikov

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