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Will Q2 be Bullish for BTC?

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Could this be the quarter we have been waiting for to see a new all-time high for BTC or should we wait for another? According to Statista, In April 2021, the Bitcoin market cap reached an all-time high and had grown by over 1,000 billion USD when compared to the summer months. As we wrapped up the first quarter of 2022, the bulls retested the $48,000 resistance levels as Bitcoin declined to $45.4k. BTC/USD has declined below the support of $47,000 as the market fluctuates. With how the Q1 ended, who will prevail in Q2, the bears or the bulls?

“Business is like riding a bicycle. Either you keep moving or fall.” – Frank Lloyd Wright. 

There have been many predictions that BTC will hit a new all-time high of $100k in 2022, the first quarter of 2022 is gone and the bulls and the bears are still in the battle. As we sit back to reflect upon how the market ended in Q1 2022, BTC has been dangling between $32.5k and above $48k as Luna Foundation Guard (LFG) bought 5773.02 BTC worth $272 million and became the 29th BTC largest wallet as of the time of writing this article. 

BANKS AND CRYPTO TRADE


ONE OF THE TWO LARGEST ISRAELI BANK NOW ACCEPT CRYPTO


As reported by Reuters towards the end of Q1 2022, one of the top two lenders in Israel started to accept Bitcoin, which was welcoming news for the crypto community. ”Pepper Invest” which is the digital platform of Leumi bank, partnered with Paxos, a blockchain infrastructure provider to launch a cryptocurrency trading service. With this partnership, the bank will accept Bitcoin (BTC) and Ethereum (ETH) for now, in transactions worth 50 shekels ($15.49). This will be the first Israeli bank to accept cryptocurrency and will allow its customers to buy, sell and hold cryptocurrencies. Although this big news is subject to regulatory approval, it was important because it represents a significant paradigm shift in global financial institutions' view of crypto.

Various financial institutions all around the globe have been reluctant to accept cryptocurrencies, but the demand for cryptocurrency services by different individuals and other institutions keeps increasing, so this has led some of these financial institutions to consider cryptocurrency trading as part of their financial services. With these developments, Bitcoin is taking a step forward toward mainstream adoption. According to a survey commissioned by NYDIG, a crypto custody firm, more people will own bitcoin if they can do so through their existing banks.

Bank of England Governor Andrew Bailey says cryptocurrencies are at the top of the list for criminal scams regulators are fighting back against. He acknowledges that cryptocurrencies are contributing to the growth of the financial sector, but it has been a gateway for criminal activities also. Crypto scam has been the second most popular type of scam reported. 

GOVERNMENTS REGULATIONS  BITCOIN 


UK WILL BE A MAJOR PLAYER IN CRYPTO


On April 4, 2022, the United Kingdom (UK) government announced moves that will see stablecoins recognized as a valid form of payment as part of bigger plans to make Britain a global hub for crypto-assets and investments. This was said by the Economy Secretary to the treasury, John Glen at the international innovative financial and global summit. There will be regulation of stablecoins in the United Kingdom (UK) and this will lead to their use as an acceptable form of payment. 
From the UK government's official website, he conjointly declared that the united kingdom can proactively explore the doubtless transformative advantages of Distributed Ledger Technology (DLT) in Britain money markets, which allows information to be synchronous and shared in an exceedingly localized to probably come through larger potency, transparency, and resilience.
A Stablecoins area unit is a type of crypto asset that area unit is usually pegged to a decree currency like the greenback while keeping up a stable worth. With applicable regulation, they might give a lot of economical suggestions that of payment and widen shopper alternatives. By recognizing the potential of this technology and regulating it currently, the govt. will guarantee money stability and highly restrictive standards so these new technologies will ultimately be used dependably and safely.

The government can pass a money market infrastructure (FMI) ’Sandbox’ which will alter companies to experiment and introduce the infrastructure services that underpin markets, above all by sanctioning Distributed Ledger Technology to be tested. Additionally, the government confirmed that it'll initiate a hunt program to explore the practicability and potential advantages of the exploitation of DLT for sovereign debt instruments.

John Vale conjointly confirmed that the government can consult on wider regulation of the crypto asset sector later this year.
Other measures include:

•The Britain government can explore ways in which to enhance the aggressiveness of the United kingdom legal system to encourage additional development of the crypto-asset market within Britain. It’ll review DeFi loans – wherever holders of crypto assets lend them out for a come back – area unit treated for tax functions. The govt. will also consult on extending the scope of the Investment Manager Exemption to incorporate crypto assets.

•The Chancellor has commissioned the Royal Mint to make a Non-Fungible Token this summer.

•The Money Conduct Authority can hold a 2-day ‘CryptoSprint’ at night with business participants, seeking views directly from businesses on key problems regarding the event of a future crypto-asset regime.

•The Economic Secretary can establish and chair a Crypto Asset Engagement cluster, an assembly of key figures from the restrictive authorities and businesses to advise the government. on problems facing the crypto-asset sector.

In his maiden speech in July 2021, the Chancellor started his vision for the longer term of the money services sector, including thoughts to make sure that the United Kingdom remains at the forefront of technology and innovation. This was one among four key parts of that vision, with the last word aim of building a money services sector that continues to be one the remainder of the globe's appearance towards.


UNITED STATES INTEREST IN CRYPTOCURRENCY

 


US President Joe Biden signed an executive order at the end of Q1 2022, seeking further clarification and guidance on crypto regulation – showing Washington’s willingness to contend with an ever-growing and new asset class. The executive order signed by the President holds a great future for the cryptocurrency industry and great news that President Biden's administration supports cryptocurrency. This will mark an end to the belief that cryptocurrency is the wild west.
Crypto advocacy group Coin Center executive director Jerry Brito tweeted that the EO is “further affirmation that when serious officials take a sober look at crypto, the reaction is not to light their hair on fire, but instead to recognize it as an innovation that the U.S. will want to foster.” The EO reveals the important role of digital assets in the economy and shows that non-state digital assets have increased in market capitalization from $14 billion in November 2016 to $3 trillion five years later. 
The EO sets out policy objectives relating to consumer protection, financial stability, illicit finance, national security, U.S. leadership, services for the underbanked, and responsible development. Assistant to the President for National Security Affairs Jake Sullivan and Assistant to the President for Economic Policy Brian Deese will coordinate the interagency process. The interagency process will involve 16 high officials, including several Cabinet members, with independent regulatory agencies potentially participating as well. 
Their first duties will be to produce an elaborate series of reports, with a variety of supplements and annexes, due at intervals ranging from 90 days to well over a year from the publication of the EO. President Biden’s administration places high value on research and development into the potential design and deployment options” of a United States central bank digital currency or CBDC. Stated in the EO is that,  the Secretary of the Treasury, will work with other relevant officials, to produce a report on a CBDC.
A report which will involve the administrator of the Environmental Protection Agency (EPA), among other officials revealed by the EO, that this report will address the environmental issues associated with blockchain technology, and how it may “impede or advance efforts to tackle climate change. There has been an increase in the regulatory activities of the Environmental Protection Agency (EPA) under this administration and these regulatory activities are having an impact on the crypto mining sector and its energy source.

DUBAI IS A KEY PLAYER IN DESIGNING THE FUTURE OF VIRTUAL ASSETS GLOBALLY

 


The Prime Minister and Ruler of the United Arab Emirates Mohammed Bin Rasheed approved the virtual asset law and established the Dubai Virtual Assets Regulatory Authority, which was a major step to establishing the UAE in the crypto sector. This is aimed at protecting investors and contributing to the growth of the cryptocurrency sector. So Dubai residents are to register with the Virtual Assets Regulatory Authority (VARA) before participating in any crypto-related services.

However, in Dubai, a Cafe’, Bake N More accepted cryptocurrencies from their customers. The cryptocurrencies accepted include Bitcoin, Ethereum, and 35 more cryptocurrencies. Also, an Arabian school now accepts crypto as a means of payment for fees.

 
RUSSIA UKRAINE WAR AND THE EFFECT ON BITCOIN

 


 In February 2022, we woke up to the invasion of Russian forces on Ukrainian territory, and for the first few weeks, this affected the Bitcoin price and the cryptocurrency market was bearish. But after some time, everyone realized the potential of cryptocurrency in international conflict as donations were made to the Ukrainian government in cryptocurrencies, and this proves the fact that Bitcoin and cryptocurrency are becoming a mainstream financial system.

A lot of Ukrainians turn to cryptocurrencies as an alternative to Ukrainian Banks which limit the people of Ukraine's access to their bank accounts and foreign currencies.  The government was in chaos. Millions of dollars in crypto have flowed in to support Ukraine’s army and hacktivist teams. $100 million worth of crypto has been sent to support Ukrainians over the past weeks in crypto, aforementioned Alex Bornyakov, Ukraine’s deputy minister of digital transformation, on March 9. 

The Ukrainian government itself solicited donations in crypto and raised more than $54 million as of March. The Ukrainian government spent a minimum of $15 million of the crypto it received and purchased many crypto corporations to assist, together with FTX, Kuna, and an organization known as Everstake. The government also launched a cryptocurrency website for it to centralize its crypto-based effort and explained on the website that they are accepting cryptocurrency including Bitcoin and other meme coins like Doge in its fight against Russia.  This was bullish news for the Bitcoin price.
BITCOIN WILL HIT $100,000 IN 2022 
Is this a perfect storm of geopolitical and economic activities that will cause Bitcoin to hit a new all-time high? Would Bitcoin finally be that digital gold that would bring stability as the economies of different nations of the world struggle with inflation? U.S. Representatives Norma J. Torres (D-Calif.) and Rick Crawford (R-Ark.) On Monday, April 4 introduced the Accountability for Cryptocurrency in El Salvador (ACES) Act, looking to mitigate risks to the U.S. financial system from El Salvador's adoption of bitcoin (BTC) as legal tender. Will this impact negatively on BTC in Q2?

There have been lots of Bitcoin conferences around the globe and Gate.io announced on its social media handle that it will be attending the Bitcoin2022 conference in Miami from April 6-9, the biggest Bitcoin event in the world. The confirmed speakers for this event include President Nayib Bukele, Micael Saylor, Saifedean Ammous, Adam Back, Jack Mallers, Yeonmi Park, Cathie Wood, Cynthia Lummis, Dr, Jordan Peterson, Peter Thei, Anthony “Pomp” Pompliano, Eric Weinstein, and  Serena Williams.

From the Bitcoin Price live, Bitcoin is currently $45270.09 as of the time of writing. Are we expecting BTC to suffer correction as it did a few weeks ago after speculations by government regulations, or will it get to $100k which will be a new all-time high as it did in 2021 when Tesla announced that it had acquired 1.5 billion U.S. dollars’ worth of the digital coin and other bullish news in 2021? Experts say regulation may bring stability to cryptocurrency in the long term and it will have an open policy toward Bitcoin.
 

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