Ethereum fees go up and users are looking for cheaper alternatives on other platforms.
Announcement by the Fed on a possible increase in interest rates generated a slight rebound in the market.
Among the outstanding news of the week is the decision of the Senate of Paraguay to approve a bill to regulate activities related to bitcoin and cryptocurrencies in the South American country. The objective, according to the proponents of the project, is to guarantee legal, financial and fiscal security for businesses linked in one way or another with crypto assets.
Meanwhile, the price of bitcoin (BTC) remained on a downward trend during the past week, oscillating in values close to USD $ 47,000, with an average drop of 4.7%. At the time of writing, the cryptocurrency is trading at USD 46,074, as reflected in the market price of Latin America and Spain, according to the CriptoNoticias price calculator.
With CriptoNoticias, those interested can keep up to date on price changes in the bitcoin and ether market in relation to their local currency. To do this, they can visit the BTC and ETH Prices section, which has a calculator to make conversions quickly and easily to their national currency.
These are the most outstanding news:
- With a vote of 29 votes in favor, 8 against, 6 abstentions and 2 absences, the bill presented by three Paraguayan senators on December 16 to regulate the cryptocurrency ecosystem was approved in the Senate Chamber. With the project, which must now be approved in the Chamber of Deputies and then regulated by the Executive, the companies that trade cryptocurrencies must be included in the Virtual Asset Provider Registry. Prior to this event, the Central Bank of Paraguay issued a statement warning about the use of bitcoin and repeating the speech of many government agencies, which emphasizes the volatility of crypto assets.
- On December 14, the Congress of Spain approved a non-law proposal to make the government join the research work carried out by the European Central Bank on the digital euro, which they see as a regional public currency that would allow them to face the boom of the cryptocurrencies. In this context, between December 13 and 16, the European Blockchain Convention was held, an annual event where some presentations focused precisely on the topic of stablecoins and the digital euro, further highlighting the need to use cryptocurrencies to promote cross-border payments between Europe and America.
- According to the recent report by market analyst Willy Woo, despite the trend of bitcoin sloping down in recent weeks, the accumulation of long-term holders (LTH) remains at high levels, which is why he has bullish forecasts for BTC in the short term. However, according to an analysis by Glassnode, the crash in the bitcoin futures markets accelerated the price correction currently being experienced.
- Amid the correction experienced by the price of bitcoin, the value of the cryptocurrency and the stock markets posted a slight recovery on December 15 due to new announcements from the Federal Reserve (Fed) of the United States. The agency promised to reduce the monthly purchase of bonds for the coming year in order to promote the progressive increase in interest rates. On this subject, the founder and director of the Kraken exchange, Jesse Powell, recommended to the public to invest in bitcoin for the long term and not to keep savings in dollars. This, anticipating a substantial increase in inflation levels in the United States by 2022.
- High transaction fee costs are the reason why many Ethereum users are changing the way they use the network. The Glassnode data shows that Average usage of Ethereum commissions hit its lowest point in 4 months, which could be taken as a sign that users are looking for cheaper alternatives on other platforms.
If you want to know the meaning of several words in the terminology of the crypto world, you can consult them in the extensive Glossary of CryptoNews.
YABC (Yet Another Bitcoin Company): translates as “Another More Bitcoin Company.” It refers to the fact that the company that is being talked about has nothing in particular, but is another one of the bunch that works with BTC.