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“The moment Bitcoin is identified as a currency, it will legally disappear” – said Vienna stock exchange chief Boschan

Team Bitcoin Daily

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Christoph Boschan is unlikely to become a convinced Bitcoin investor anytime soon. Most recently, the head of the Vienna Stock Exchange compared the Bitcoin hype with the tulip mania and attested a crash as soon as BTC was regulated as a currency or financial instrument. In an interview with BTC-ECHO, Boschan wants to clarify the question: Is there a threat of an exchange rate collapse?

In an interview with Die Presse , Christoph Boschan hit a low blow a few days ago: Bitcoin is “vastly inferior to any alternative course of action” and shows similarities with “the tulip mania”. He rounded off the criticism with the ironic formulation that Bitcoin was after all “extremely important for criminal payments”. The criticism again made waves in the crypto space. However, if the statements are straightened out a bit, an existing basic Bitcoin problem becomes apparent.

Bitcoin: a matter of regulation

Opinions are divided on Bitcoin, not only among investors but also among regulators. There is still no common European legislation that creates a binding framework for crypto values. Crypto regulation is a country issue. The EU Regulation on  Markets in Crypto Assets  (MiCA) is still in draft status .

Germany, on the other hand, has a special role in European comparison. Since 2020, crypto values, including Bitcoin, have been included as financial instruments in the German Banking Act . In contrast to the MiCA draft, which provides for a separate division of tokens, e-money tokens, utility tokens and other crypto values, German legislation tries to create a uniform framework.

In Austria, however, Bitcoin is classified neither as a currency nor a financial instrument, but as a property right. This is “the great stroke of luck for Bitcoin” and “ultimately an expression of our liberal economic order”, as Christoph Boschan explains

Bitcoin is currently classified as a property right rather than a currency or financial instrument. It cannot be otherwise, because if it were classified as a currency its existence would simply not be permitted, its issuance and use would be forbidden and prosecuted in many cases – Articles 16 and 128 of our EU treaty only give the ECB the right to issue a currency.

Christoph Boschan

According to the CEO of the Vienna Stock Exchange, the regulatory status can be reduced to the following formula: “The moment BTC is identified as a currency, it disappears legally”. A supposedly sensational thesis that may lure crypto enthusiasts out of the reserve, but according to Boschan only reflects the “current legal situation”. After all, Bitcoin cannot be classified as a currency, since the “house right” for the issue of currencies lies with the EU.

Ripple precedent

According to Boschan, the same applies “to regulation as a financial instrument”. Finally, the example of Ripple shows “what it means to be viewed as a financial instrument”. In December last year, the US Securities and Exchange Commission (SEC) declared the Ripple currency XRP a security token, which resulted in a legal dispute with the Californian FinTech.

But this example shows that the legal situation for the token economy is anything but clear. Contrary to the attitude of the SEC, XRP is not classified as a security in other jurisdictions, but as a utility token. In addition, it is unclear whether the SEC is right with its move. Ultimately, the competent courts will decide on the regulatory status. The precedent Ripple shows: crypto assets and regulation are still in the discovery phase.

Bitcoin regulation shows gaps

The blanket criticism that the Vienna Stock Exchange boss unloads representative of supposedly Bitcoin-skeptical stock exchange representatives may be understandable from a crypto investor’s point of view, but it is not more correct. Statements such as: “If you regulate Bitcoin like a currency or a financial instrument, then it is no longer worth anything”, should be understood less as a rejection or attack on Bitcoin and the financial infrastructure behind it, and rather as a pointer to a lack of regulations.

As a manager, however, I can conclude with astonishment that the BTC industry is looking for such proximity to “currencies” or “financial instruments” and that this is the basis for sales. This is not strategically smart, but rather toxic, because the other way around it becomes a shoe, both – both the identification as a currency and as a financial instrument – are the greatest Achilles heels of the value of Bitcoin.

Christoph Boschan

Ultimately, however, it depends on the design of the legal framework. After all, Bitcoin is classified as a financial instrument in Germany, but it has not lost its value.

A common misconception?

A few friends from the crypto environment are likely to have Boschan also made the statement that Bitcoin is a vehicle for illegal purposes. According to Boschan, this view is derived from “very simple observation from the reality of life”. Whenever the Vienna Stock Exchange is exposed to blackmailing cyberattacks, “the payment requests come exclusively in BTC, […] not in euros, not in dollars, not in yen, not in gold, not in stocks, bonds or other derivatives, all of which are digital would be even smoother ”.

Obviously, the criminals use the most obvious instrument for them.

Christoph Boschan

As is so often the case, the devil is in the details. Wanting to push Bitcoin and Co. into the corner of a shadow currency, which is primarily used by criminals, belongs in the realm of fables . As the blockchain analysis company Chainalysis outlines in the current 2021 Crime Report , only a small fraction of 0.34 percent of all crypto transactions were for illegal purposes in 2020. Compared to the previous year, the criminal crypto cash flows have decreased by almost 2 percent, “the crime related to cryptocurrencies has decreased significantly in 2020”.

However, what is generally true of illegal crypto transactions is not particularly true of ransomware attacks. According to the report, “the total amount paid by ransomware victims has increased by 311 percent this year”. Accordingly, “no other category of cryptocurrency-based crime has had a higher growth rate”. According to Chainalysis, 2020 is not only the Covid year, but also “the year ransomware exploded”.

Bitcoin economy wins through exchange

In this light, Boschan’s remarks seem to be a very sober confirmation of the increase in ransomware identified by Chainalysis. So the Vienna Stock Exchange CEO finally defends himself against the attempt to put him “across the board in the anti-crypto corner”. Because the opposite is ultimately the case:

As an infrastructure provider whose foundation is databases, we are extremely attentive and very open-minded about developments relating to distributed database infrastructures. We have dozens of initiatives behind us and we certainly share the fascination that can trigger.

Christoph Boschan

Against this background, the Bitcoin-critical tones are already losing their explosive power. Boschan’s statements can certainly be read as a call to action to embed the crypto market in clear regulations. Ultimately, this creates the basis for sustainable growth in the industry, on which a wide variety of service providers are based. In the long term, the Bitcoin economy can only benefit from an unbiased discourse with traditional financial market players.

 

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Sastanaqqam at WOW Summit & Art Basel Hong Kong: A Leap Towards the Future of Digital Art

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As the digital frontier continues to expand, Sastanaqqam stands at the forefront of innovation within the blockchain ecosystem. Its upcoming participation in the WOW Summit in Hong Kong on March 26-27 marks not only a return to the vibrant city but also a significant milestone in its journey. This event, renowned for gathering the brightest minds in technology, blockchain, and art, will serve as a pivotal platform for Sastanaqqam to showcase its remarkable progress and forge new partnerships that promise to redefine the digital art space.

Returning to Hong Kong for the second time, Sastanaqqam’s presence at the WOW Summit is a testament to its enduring commitment to growth and innovation. The past year has been a whirlwind of development and success for Sastanaqqam, with the ecosystem experiencing exponential growth, notably within its digital art marketplace, Artiziri, and its various other innovative projects. The WOW Summit presents an ideal opportunity to highlight these achievements and the significant strides made in enhancing its platform’s value and reach.

One of the most exciting developments for Sastanaqqam is its new strategic partnership with Muse, a leading provider of digital frame technology. This collaboration is a game-changer, offering an evolving all-in-one art platform that seamlessly integrates Sastanaqqam’s digital marketplace with high-quality display solutions. Muse’s cutting-edge technology ensures that digital artworks are presented in the best possible light, enhancing the viewing experience for collectors and art enthusiasts alike. This partnership not only enriches the ecosystem’s offerings but also underscores Sastanaqqam’s vision of bridging the gap between digital and physical art spaces.

The WOW Summit also provides Sastanaqqam with a unique opportunity to connect with the global art community. In conjunction with the summit, the team will visit Art Basel Hong Kong, a prestigious event that attracts artists, galleries, and collectors from around the world. This visit is strategic, aimed at driving new artists to onboard onto the Artiziri platform. As the platform has grown considerably over the last year, attracting fresh talent and diverse artworks is paramount to sustaining this momentum and enriching the ecosystem’s vibrancy.

Sastanaqqam’s journey to Hong Kong is more than just participation in a summit; it’s a mission to forge meaningful connections, inspire innovation, and showcase the immense potential of its blockchain ecosystem. The team’s efforts to engage with new artists at Art Basel Hong Kong, coupled with the exciting partnership with Muse, are poised to catapult Sastanaqqam into new realms of creativity and collaboration.

As we look towards the future, it’s clear that Sastanaqqam is not just participating in the digital art revolution—it’s leading it. With each strategic partnership and community engagement, the ecosystem is setting new benchmarks for what is possible in the blockchain space. The WOW Summit in Hong Kong is not just another event; it’s a glimpse into the future of digital art, and Sastanaqqam is at the helm, steering towards uncharted territories with innovation, passion, and an unwavering commitment to excellence.

About Sastanaqqam:

Founded in 2021, Sastanaqqam has emerged as a key player in blockchain and Web 3.0 technologies, integrating art, gaming, and decentralized finance (DeFi) to create a dynamic and innovative digital ecosystem. Sastanaqqam embarked on a mission to democratize access to Decentralized Finance (Defi) and create a bridge between traditional and digital art. Inspired by the transformative potential of blockchain technology, we set out to develop platforms that marry the power of DeFi with the creativity of the art world. Our vision includes a secure Wallet, an Exchange, and a unique Utility Token (BLC), all designed to facilitate seamless transactions and efficient management of digital assets.

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Why is Bitcoin Price Falling Down?

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Bitcoin price as recently experienced a significant downturn, briefly slumping below $63,000 after reaching a record high of $73,000 just last week.

This sharp decline marks a pivotal moment in the cryptocurrency’s performance, shedding more than $10,000 from its all-time high and signaling a potential shift in market dynamics.

Several factors contributed to the quick rise to $73,679, including the successful introduction of spot bitcoin exchange-traded funds (ETFs) in the U.S. and a surge in investor interest. However, the subsequent correction has raised questions about the sustainability of its rally and the underlying factors contributing to its volatility.

Several causes contributed to the downturn, including traders taking profits following Bitcoin’s significant 70% increase from the beginning of the year to its high.

This profit-taking has led to a spike in long liquidations of leveraged Bitcoin positions, with significant liquidations occurring across centralized exchanges.

The introduction of spot bitcoin ETFs, while initially contributing to the rally, has also played a role in the increased leverage and high-frequency volatility observed in the market.

As investors and analysts warn of more volatile price action in March, the recent pullback from Bitcoin’s long-term uptrend has become a focal point for market participants.

Moreover, the broader cryptocurrency market has felt the ripple effects of Bitcoin’s decline, with other major cryptocurrencies such as Ether and Solana experiencing notable losses.

The interconnectedness of the cryptocurrency market means that movements in Bitcoin often have a significant impact on altcoins and related stocks.

Understanding the elements driving Bitcoin’s price, such as supply and demand dynamics, regulatory changes, and investor attitude, becomes increasingly important when the market experiences volatility.

The recent downturn serves as a reminder of the inherent volatility and risks associated with investing in cryptocurrencies, prompting investors to exercise caution and closely monitor market trends.

Analyzing Bitcoin Recent Price Drop: Economic Pressures and Market Dynamics

Bitcoin’s value has experienced a notable decline, dropping to $63,500, marking its lowest point in the past two weeks. This 6% decrease on Tuesday is attributed to a combination of factors, including recent U.S. inflation data and significant outflows from the Grayscale ETF, which have contributed to a broader market correction.

Market Liquidations and ETF Outflows

The futures market has seen substantial liquidations, totaling $655.44 million, with Bitcoin and Ethereum positions being the most affected. According to Coinglass, “In the last 24 hours, 240,997 traders have been liquidated, with total liquidations amounting to $655.44 million. The largest single settlement order occurred on OKX – BTC-USDT-SWAP for $12.25 million.”

Bitcoin price

Grayscale ETF has faced one of its largest daily outflows in history, with 9,539 BTC withdrawn. Despite BlackRock’s acquisition of 6,703 bitcoins, the overall balance for the day was negative by 2,293 bitcoins. This outflow has not only increased selling pressure but also potentially alarmed other market participants. BitMex reported, “Bitcoin ETF outflow – March 18, 2024. GBTC outflow at $643 million,” highlighting the significant impact of these movements on the market.

image 63 Why is Bitcoin Price Falling Down?

Economic Factors Influencing Bitcoin Price

The U.S. economy’s struggle to achieve its 2% annual inflation target has raised concerns among investors. With expectations of an interest rate cut by the Federal Reserve not materializing, fears are growing that rates will remain between 5.25 and 5.5% for an extended period. This economic pressure has not only affected Bitcoin but also other assets like gold, which has seen a 2% decline over the week.

Investors are anxiously awaiting the next Fed meeting, scheduled for Wednesday, anticipating potential negative remarks from Jerome Powell and his team. Bitcoin’s significant drop, attributed to its well-known volatility, underscores the market’s sensitivity to economic indicators and central bank policies.

Scott Melker, expressing his concerns, stated, “Fundamentally, with ETF interest and the cycle increasing, I want to believe that we will go much, much higher. However, most of the key signs I would normally look for when not in FOMO are present,” highlighting the market’s current state of uncertainty.

Broader Cryptocurrency Market Impact

Following Bitcoin’s downturn, other cryptocurrencies have also suffered losses. Ethereum, despite its recent Dencun update, has lost around $800 over the week, trading at $3,200. Meme coins such as Dogwifhat (WIF) and Bonk (BONK) have experienced significant declines, alongside more established projects like Jupiter (JUP), Worldcoin (WLD), and Solana (SOL).

image 64 Why is Bitcoin Price Falling Down?

As the market navigates through these turbulent times, investors are closely monitoring Bitcoin’s support levels, the outcomes of the upcoming Fed meeting, and ETF flows. Despite the short-term challenges, the long-term uptrend remains a protective factor for those invested in the cryptocurrency space.

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Bitcoin Record-Breaking Surge almost hitting a new “all-time high”

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Bitcoin record-breaking surge and market dynamics highlight volatility and factors influencing price movements.
• Increased mainstream acceptance of Bitcoin signifies broader adoption and regulatory progress.
• Global market dynamics and prospects, including Ethereum upgrades and Bitcoin halving events, underscore complex factors driving the cryptocurrency market.
• Investors’ cautious optimism reflects balanced perspective on potential risks and rewards of Bitcoin and other cryptocurrencies.

Bitcoin record-breaking surge and market dynamics are influenced by various factors such as demand, investor sentiment, global economic conditions, regulatory developments, and technological advancements.

These factors contribute to the volatility and price fluctuations observed in the Bitcoin market. It is important to closely monitor these dynamics and consider them when making investment decisions.

Bitcoin Record-Breaking Surge & Monumental Rise

In a remarkable display of strength, Bitcoin, the pioneer cryptocurrency, has once again captured the financial world’s attention by breaking past the $70,000 threshold, setting a new all-time high. This milestone underscores the digital currency’s increasing acceptance and growing confidence among investors.

Amidst a volatile trading session, Bitcoin’s price peaked at $70,170, showcasing not only its potential for high returns but also the inherent market risks.

Bitcoin record-breaking surge and market dynamics are influenced by various factors such as demand, investor sentiment, global economic conditions, regulatory developments, and technological advancements.
Bitcoin Record-Breaking Surge almost hitting a new “all-time high” 4

Bitcoin’s journey to new heights is reflective of its burgeoning popularity and the broader acceptance of cryptocurrencies.

The digital asset’s 10% weekly gain coincides with the opening of the U.S. stock market, hinting at a possible correlation between Bitcoin’s performance and traditional financial markets.

This relationship underscores the evolving dynamics between digital and traditional assets, suggesting a growing integration of cryptocurrency within the wider financial ecosystem.

Despite its impressive ascent, Bitcoin’s path was not without turbulence. Following its peak, the cryptocurrency experienced a swift 10% drop, a movement that rippled across the crypto market, affecting other digital currencies and related stocks.

However, the market’s resilience was on full display as Bitcoin swiftly recouped most of its losses, highlighting the volatile yet tenacious nature of the cryptocurrency market. This volatility, as reflected by the Bitcoin historical volatility index reaching a yearly high, serves as a reminder of the risks and opportunities inherent in the crypto space.

Institutional Investors and Mainstream Acceptance

image 24 Bitcoin Record-Breaking Surge almost hitting a new "all-time high"

A pivotal factor in Bitcoin’s recent surge is the growing involvement of institutional investors, who, after initial skepticism, have begun to embrace Bitcoin as a viable long-term investment.

This shift is further evidenced by the approval of 11 spot Bitcoin ETFs by the U.S. Securities and Exchange Commission, a significant step towards mainstream acceptance.

These developments, coupled with the influx of billions into Bitcoin ETFs, mark a new era of institutional confidence and regulatory progress in the cryptocurrency domain.

Global Influences and Future Prospects

image 25 Bitcoin Record-Breaking Surge almost hitting a new "all-time high"
Bitcoin Record-Breaking Surge almost hitting a new “all-time high” 5

Bitcoin’s rally is not merely a domestic phenomenon but is influenced by global market dynamics, including the influx of investment into U.S. spot exchange-traded crypto products and the anticipation of global interest rate adjustments. Additionally, the crypto market is buoyed by the prospect of an Ethereum upgrade and the anticipated Bitcoin “halving” event, both of which could further bolster market sentiment.

Looking ahead, while the cryptocurrency market’s speculative nature warrants caution, the prevailing sentiment among investors is one of cautious optimism. Comparisons to the retail excitement of 2021 and the recognition of Bitcoin’s potential as a hedge against inflation suggest a bright, albeit uncertain, future for Bitcoin and the broader cryptocurrency market.

Bitcoin’s recent record-breaking performance is a testament to its growing influence and acceptance within the financial landscape. As the cryptocurrency continues to navigate through volatility and regulatory developments, investors are reminded of the importance of thorough research and risk management.

With its latest all-time high, Bitcoin not only celebrates a significant milestone but also paves the way for the next chapter in the evolution of digital finance.

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