This week was a watershed for global crypto regulation (see top news for more info):
Russian President Vladimir Putin rejected a Bitcoin ban proposed by the Russian Central Bank.
Thailand scrapped a 15% withholding tax on crypto gains after an outcry from traders.
Most significantly, India announced it will be regulating and taxing Bitcoin, and shared its ambitions for a digital rupee. India has 18% of the world’s population and already has over 100 million crypto holders (tripleA). In the same way cellphones helped one billion Indians to leapfrog landlines, crypto could empower a new generation of Indians to leap-frog traditional banks.
According to data from glassnode, short term Bitcoin holders (addresses with a lifespan of less than 6 months) continue to sell Bitcoin. In contrast, long term holders are accumulating and have depleted the balance of coins on exchanges to 2.5M tokens (13% of total supply) – the lowest since April 2021.
According to data from glassnode, Bitcoin’s options interest had a Put/Call ratio of 59%, a multi-month high as traders continue to buy downside insurance.
Bitcoin futures volumes slid to $40B/day in January 2022 in comparison to $80B/day in March 2021.
US Senator Wendy Rogers has proposed new legislation to make Bitcoin legal tender in the state of Arizona. See the ‘Top News’ section.