On Wednesday, the U.S. federal reserve raised its interest rates by 75 basis points. It's the highest rate increase in 28 years, and it's part of a larger attempt to combat rising inflation, which has roiled the economy and markets, from stocks and bonds to cryptocurrencies.

According to a [statement (https://www.federalreserve.gov/monetarypolicy/files/monetary20220615a1.pdf) released by the Federal Open Market Committee (FOMC), which determines the Fed's monetary policy, the central bank will continue to shrink its balance sheet at the rate stated in May.

According to the Fed, the Fed Funds rate, which is the rate at which commercial banks can borrow and lend their excess reserves to one another overnight, would climb to a range of 1.5 percent -1.75 percent. According to Goldman Sachs, bond traders are pricing in a range of 3.25 percent to 3.5 percent by the end of the year, signalling an extremely quick and severe pace of monetary tightening.

## Bitcoin Skyrockets

After the announcement from the Fed crypto immediately reacted to the news. Following the news, bitcoin skyrocketed, hitting values above $21,000. It has bounced back from an 18-month low. Following a volatile week, altcoins like Solana and Cardano saw double-digit gains.

Ripple and BNB both increased by 9.8% and 7.4%, respectively, while [Dogecoin](/coins/doge), Polkadot, and Avalanche all had a double-digit short-term rise. They each gained 13.73 percent, 11.26 percent, and 14.59 percent.

At the same time, the price of Ethereum (ETH) increased by 6% to USD 1,180. Stocks followed suit, with the broad S&P 500 index climbing 0.17 percent in the first hour after the news was released.

According to CoinMarketCap, global capitalization increased by roughly 4% to $ 950 billion.

## Final Thoughts on the Fed Crypto impact

According to crypto experts, the stock and crypto markets will remain turbulent in the near future due to concerns about inflation, the Russia-Ukraine war, and rising oil costs.




U.S. Fed crypto interest rate hike causes surge

[A bill](https://www.nysenate.gov/legislation/bills/2021/A7389) restricting cryptocurrency (crypto) miners' usage of fossil fuels was enacted by the New York State Legislature on Friday. However, the bill can't go into effect unless New York Governor Kathy Hochul signs it.
Due to the complexity of the mathematical problems that must be solved, cryptomining typically demands a large amount of energy to power computer systems. The network of computer systems known as cryptominers competes to solve the challenge first.

According to the Climate Leadership and Community Protection Act, New York must reduce its greenhouse gas emissions by 85% in order to achieve net zero emissions in the state's economy by the year 2050. A two-year embargo on the granting and renewal of permits for facilities that use carbon-based energy to produce electricity for cryptomining operations will be implemented under this bill.
The bill was passed in effort to reduce the amount of energy needed to power crypto mining operations and assist New York State in meeting its goal of reducing emissions. 
Foundry, a digital currency group company, took to social media to express its unhappiness with the bill's passage. The following was included in the statement from Foundry:
Today's approval of a two-year ban on bitcoin mining across the state is disappointing to Foundry. A Rochester-based corporation, committed to creating jobs and boosting the state's economy, believes that this legislation will limit jobs and innovation in New York for many years to come. 


## Crypto mining ban bolsters renewable energy

This ban on crypto mining operations is sure to have a significant impact on the industry. It remains to be seen how crypto miners will adapt to this new regulation. Some may choose to leave New York State altogether, in search of less regulated environments for crypto mining operations. Others may find ways to continue mining crypto, using alternative clean energy sources that don't rely on fossil fuels. We hope it is the latter. 
For more blockchain based news go to [Latest Moni.](/news)


Crypto mining ban enacted by New York State Legislature

In July 2021, the US internet sales behemoth [Amazon](https://www.amazon.com/) shook the crypto market after letting out a blockchain and cryptocurrency lead job advertisement.

The ad specified that the company wanted someone to develop the case for crypto, drive the vision and product strategy, and gain leadership buy-in and investment.

According to sources, the directive for this advertisement came from the headman - Jeff Bezos himself - and it meant more than merely looking into options. Allegedly, Bezos was (and still is) interested in implementing cryptocurrencies into Amazon's business, particularly [Bitcoin](/coins/btc), [Ethereum](/coins/eth), Cardano, and Bitcoin Cash. After that, according to reports, the company would develop its native token as well.

Still, even though there were plenty of rumors, they were never officially confirmed. Amazon did, however, hint that it plans to jump into the creation of Amazon cryptocurrency, and the year 2022 was on everybody's mouth.

## Who will be Amazon’s Crypto Head?

According to the job ad, the company searched for "an experienced product leader" to develop a roadmap for Amazon blockchain and cryptocurrency strategy.

It stated that the successful candidate would leverage expertise in blockchain, distributed ledger, central bank digital currencies, and cryptocurrency to drive the concept forward.

This step seems logical since other big fintech companies, such as Facebook, Visa, and Google, also recruited whole teams of experts charged with creating a new blockchain and crypto-related workspace.

## When Could Amazon Launch?

As we already mentioned, there were no official details on Amazon's possible launch date. However, 2022 was the year everyone mentioned when discussing the digital currency that would be standing shoulder to shoulder with Bitcoin and Ethereum.

There is already something called Amazon Coin; a virtual currency that can be bought on Amazon's website and then be used to purchase apps, games, and in-app items from the Amazon Appstore. Each Amazon Coin is worth $0.01 and can be bought in cheaper stacks on the Appstore app, Fire tablets, and the Amazon website. Still, it is not an Amazon cryptocurrency, per se, since these coins are non-refundable after purchase.

In the case of the actual company's cryptocurrency, the users should use it to shop on the Amazon website, trade with it, and, eventually, exchange it for other tokens.

Nowadays, the global finance industry deals with trillions of dollars daily, serving billions of users. However, the whole sector has problems with bureaucracy, high costs, frequent fraud, and constant delays. Third parties such as payment networks, stock exchanges, and money transfer services deal with crime daily. Therefore, the costs of regulation are rising as end-users ultimately bear the burden.

## Amazon to Sell NFTs Soon

Amazon admitted mulling similar projects in the past, even though these projects were rather understated than the one which wraps the Amazon cryptocurrency nowadays.

Amazon already has 'Amazon Managed Blockchain' service that, according to its webpage, "makes it easy to join public networks or create and manage scalable private networks using the popular open-source frameworks Hyperledger Fabric and Ethereum”.

However, the most recent reports show that Amazon is not even near adding cryptocurrencies as the payment option for its retail services but is interested in the Web3 space. Recently, company Chief Executive Officer Andy Jassy commented that even though developing an Amazon coin is not planned for the near future, there is a possibility for the company to sell non-fungible tokens (NFTs) on its e-commerce platform.


Status Quo on Amazon Cryptocurrency Development

The [BTC](/coins/btc) price is now trading at $28K, indicating that it is highly oversold, as evidenced by RSI levels around 30%.

Indeed, the RSI has hit levels not seen since the May 2021 crisis. The price may have a positive retracement and retest the broken $30K barrier in the immediate term. However, it is also feasible that it will continue to fall towards $24K and $20K, which might eventually indicate a mid-term bottom. 

The 50-day and 100-day moving averages also form a bearish crossing, which might increase the likelihood of lower prices sooner rather than later. BTC price has broken below the huge bearish flag that has been building over the previous few months, indicating a negative continuation scenario. 
 
The downtrend is presently displaying symptoms of fatigue, with the past few candles closing with large wicks to the downward. The RSI is also attempting to break above the oversold area, implying a short-term positive pullback to the previously breached $30K barrier. However, the bears have total control, and a collapse below the $24K level remains likely. 

The futures market undoubtedly had an influential role in this collapse, since Bitcoin's open interest was unusually high even as the price fell from $48K to $37K in April. This gradual decline in open interest during a 20% drop indicated that many stop losses and liquidation targets of long positions were located below the $37K, $33K, and $28K support levels.  

However, the open interest is still significantly greater than in May 2021 following the drop from the $64K ATH, indicating that the futures market is still hot, despite the current decline. Because high open interest results in significant volatility, this might be taken as a negative indication. Rising inflation, geopolitical events, and concerns about the Fed tightening monetary policy have all contributed to heightened market volatility. 

The Fed raised interest rates on Wednesday - the first time in more than 20 years - signalling that future rate hikes are likely and that the balance sheet runoff will begin in June. Some analysts believe [TerraUSD (UST)](https://coinmarketcap.com/currencies/terrausd/), one of the most popular stable currencies, also contributed to Bitcoin's fall this week. UST is supposed to be tethered to the dollar, but it plummeted to 29 cents this week and crashed in a simulated bank run as investors panicked and sold out their tokens. 

Since December 25, 2021, the BTC price has not risen beyond $50,000. Despite the problems, Bitcoin has remained above its January low of less than $34,000, which was the lowest in the preceding six months. BTC price dropped by 40% since its all-time high above $68,000 on November 10, owing to rising inflation, a sluggish job market recovery, and the Fed's continuous signs that it will begin winding down the measures to assist the economy.

Despite a poor start to the year, Bitcoin entered 2021 on a high note, thanks to a robust November and early December that gave way to the recent downward trend. After beginning 2021 around the $30,000 level, Bitcoin rose throughout the year, reaching its current all-time high of $68,000 on November 10.  

Despite decreasing dramatically from its most recent all-time high, many analysts believe BTC price will eventually surge beyond $100,000, describing it as a matter of when, not if.

Bitcoin reached its first high in 2021 when it surpassed $60,000 in April. Since then, the price fluctuation has highlighted the cryptocurrency's unpredictability when more individuals are eager to participate. Bitcoin bounced dramatically up and down in the weeks between a July low that brought it below $30,000 and its most recent peak in November. 

## Analysts’ Views of BTC Price

According to a crypto specialist, price fluctuations are expected for individuals who invest in crypto for the long term. Big drops are not a cause for concern, and he avoids reviewing his stocks during dangerous market falls.

Humphrey Yang's set it and forget it attitude to cryptocurrencies mirrors his approach to traditional stock market trading. Still, other experts believe Bitcoin is too distinct from traditional assets to draw historical similarities.  

Recent price fluctuations have been accompanied by rising inflation, persistent uncertainty over the country's protracted battle with COVID-19, and new regulatory steps by the United States government, notably Biden's recent executive order.
 
## Cryptocurrency Crime and Tax Evasion 

A few main themes have developed about new cryptocurrency regulation in the US: preventing cryptocurrency crime and tax fraud, ensuring stable coin regulation, and the possibility for investment vehicles like crypto ETFs and other funds.
The decentralised nature of digital currencies is a significant appeal for many crypto aficionados. However, regulatory guidelines can assist in protecting investors.  

One proposal would broaden the definition of a brokerage to include firms that support digital asset trading, such as cryptocurrency exchanges. This type of move would imply higher tax reporting duty to assist the IRS in tracking crypto tax evasion. 

Companies that facilitate crypto trades would be compelled to provide tax information about such exchanges to the IRS, beginning with the 2024 tax season, under a proposed new rule being examined by legislators.  

Furthermore, Gensler has spoken about the necessity for increased legislation to help avoid future ransomware attacks. 

## Stable Coin Regulation 

Stable coins are most utilised by sophisticated traders to decrease costs on crypto-to-crypto exchanges, but the Biden administration analysis suggests that stable coins may become a more general digital payment system. Because cryptocurrency is still in its infancy as an asset class, any new regulations may influence investors' portfolios.

According to Gensler, unscrupulous actors may be able to dodge public policy measures and other punishments targeted at preventing money laundering or guaranteeing tax compliance by avoiding the use of US dollars in direct crypto-to-crypto exchanges. 

## Cryptocurrency ETFs 

Cryptocurrencies ETFs are not now accessible in the US, but they may provide a future method for investors to invest in cryptocurrency without buying directly from an exchange. "There's not a method to acquire an asset that closely tracks the price of a certain cryptocurrency until an ETF is approved," explains Jeremy Schneider. That implies that the only method for investors to do so is to purchase coins directly from an exchange. If you are interested in cryptocurrency, these funds, like a traditional ETF or index fund, may help you diversify your assets among multiple coins. 

## Biden's Executive Order  

President Joe Biden has authorised federal agencies to establish a plan for laws and regulations on digital assets such as bitcoin with the signing of a new executive order on cryptocurrency. 

According to experts, the decision will assist in creating the regulatory clarity needed for significant institutional adoption of Bitcoin and other digital assets. Long-term investors may benefit from more stability in the usually turbulent crypto sector. After an early burst that saw the price of Bitcoin rise, it quickly dropped again. 

Biden's directive also directs US authorities to ensure that the country's cryptocurrency regulations are consistent with US allies. It charges the Financial Stability Oversight Council to investigate any illegal financial issues. Furthermore, the law underlines the significance of a new central bank digital currency issued by the government. Biden's executive order is a timely reminder that US politicians are closely monitoring Bitcoin and how it may impact financial markets in the future. This should not persuade crypto investors to make quick adjustments to their long-term investment strategy.

Experts advise sticking to the most established cryptocurrencies, Bitcoin and Ethereum, and investing just what you are willing to lose or no more than 5% of your overall portfolio. Budget essentials such as emergency preparedness, debt repayment, and retirement savings should take precedence over Bitcoin investments. Regarding where to purchase and sell cryptocurrencies, stick with a well-known, high-volume cryptocurrency exchange. 

## China’s Ban on Financial Institutions from Cryptocurrency Business 

China has prohibited financial institutions and payment businesses from offering cryptocurrency transaction services and has advised investors against speculative crypto trading.

According to a blockchain analysis business, a combination of factors has contributed to the recent sell-off, in which new short-term investors dumping their holdings in response to the latest decline may be adding to the reduction in Bitcoin's value. However, the stock and cryptocurrency markets have historically gained despite greater volatility and this is expected to continue. As a precaution, experts urge investors to keep investments small to handle volatility. 

To conclude, if Bitcoin survives as a digital asset class, which it may, it will be seen as a high-risk asset class. As a result, it might see a significant gain in value in the future or go the other way and become worthless. Therefore, it remains to be seen if Bitcoin is indeed the future “world money".


BTC Price: Bitcoin Update

Do you know your crypto mining rig from your hash rate? Don't worry, this article will explain some crucial cryptocurrency mining terms you should know. 

It's perhaps an oversimplified definition, but using power-intensive computer systems to create [Bitcoin](/coins/btc) and verify transactions on the blockchain is a concept known as cryptocurrency mining.

As these mining operations become outlawed in certain countries, others are embracing the activity. Either way, cryptocurrency mining is a concept that every digital investor should at least understand to an extent. This article helps you achieve that.

A closer look reveals that cryptocurrency mining is a competition or race of sorts between miners. These miners build "rigs" from computer hardware that perform mathematical calculations for the cryptocurrency network to confirm transactions and increase security. The miners who are successful at solving these math problems first are rewarded with a new amount of cryptocurrency and they can also collect transaction fees for the transactions they confirm.   

The most common terms associated with cryptocurrency mining activities are listed below:

## Crypto Mining Rig

A crypto mining rig is a collection of physical hardware components assembled to perform the computational processes of the mining operations. Core component(s) include:

Central Processing Unit (CPU) – Once a crucial component for solving the complex calculations required in crypto-mining, the evolution of mining has made the CPU essentially a thing of the past.

Graphical Processing Unit (GPU) – In charge of the digital rendering in a mining system and much more useful in mining than the old CPU because of their speed and efficiency.

Field Programmable Gate Array (FPGA) - Unlike other architectures, FPGAs have the versatility of being programmable, giving miners the flexibility to alter their programming to improve their functionality.

Application-Specific Integrated Circuit (ASIC) – A hardware component designed exclusively for cryptocurrency mining, whereas CPUs and GPUs have other purposes in many industries. ASIC is expensive and very complex, but more efficient at mining.

### Hash Rate

Cryptocurrency miners are tasked with producing a 64-digit hexadecimal number called a hash. Hash rate is the term given to the calculating power of a device measured in hashes per second. Each hash rate is a created block that is tested against the network.

The hash rate is of utmost importance to crypto-miners because of the competition with "fellow" miners. Each miner wants their rig to be the first to generate a valid hash. To do so, their rigs need to solve those incredibly complex mathematical puzzles as rapidly as they can.

### Proof-of-Work

Cryptocurrencies evolved out of a desire to exchange currency without a financial “overseer” being involved - Better known as decentralisation. Proof-of-Work (PoW) makes this possible because it is one method of absolutely confirming cryptocurrency transactions. How? Proof-of-work adds a new block of transactions to a cryptocurrency's existing blockchain. Crypto miners compete to add these new blocks to the blockchain successfully, and the winner reaps the rewards of newly minted cryptocurrency and transaction fees.

## Is Cryptocurrency Mining Legal?

Much about the cryptocurrency market, in general, remains unregulated; cryptocurrency mining is no exception. Therefore, its legality is mostly opaque to much of society, including the crypto-miners.

For the most part, crypto miners are considered money transmitters. That means that crypto-miners operate under the jurisdiction of the rules governing those kinds of transactions in whatever country the miner decides to build their rig(s). For example, cryptocurrency mining is considered a business in Israel. It is therefore subject to corporate income tax in that country. Despite cryptocurrency mining being around for over a decade, there is still a great deal of regulatory work to be done in most countries.

For now, geography seems to be the determining factor in the legality of mining. Russia and China have [banned cryptocurrency mining](https://cryptonews.com/guides/countries-in-which-bitcoin-is-banned-or-legal.htm), but the U.S. and Canada appear to be embracing mining efforts in their territories.

## Conclusion

Not all cryptocurrency investors are encouraged to get into mining - it is not an easy way to make money, and it is a huge liability to the environment because of the inordinate amount of energy crypto rigs consume. Politically speaking, mining is expected to become a strategy of many countries which see a future in cryptocurrencies. Countries willingly putting up barriers to the widespread adoption of cryptocurrencies in their territory will be sabotaging their own innovation engine.



Crypto Mining Rig and Hash Rate: Know Your Crypto

The U.S. government is taking unprecedented steps to demonstrate just how serious the richest country in the world (albeit, with the widest wealth gap) is about regulating cryptocurrencies.  American president, Joe Biden, is responding to intense pressure to position the U.S. as a leader in terms of finally applying long-overdue regulatory measures to the digital assets market.  Another factor driving America’s interest in taking the pole position in terms of regulatory action is the risk that if another country, like India or China, would step in first, it could potentially affect the American dollar’s dominant strength.  

US President Biden is expected to sign an executive order that outlines the U.S. government’s strategy in regulating cryptocurrencies before the end of this month.

## Thorough Understanding of Digital Assets Needed

Yahoo Finance recently reported that the executive order would reveal the specifics around the role that government agencies are expected to play in crypto regulation, including the US. Department of Treasury and Homeland Security.  For example, such agencies will be tasked with building a more thorough understanding of the digital assets market and propose a central bank digital currency (CBDC).  Apparently, the Biden administration has been diligently at work since last August building a comprehensive strategy for regulating cryptocurrencies amidst a huge boom in the public’s interest and growing appetite for cryptocurrencies as an investment.  It’s been reported that over 50% of the investors who now own Bitcoin or other cryptocurrencies[ made their first purchases of the digital assets within the last year. ](https://www.bloomberg.com/news/articles/2021-12-06/more-than-half-of-bitcoin-investors-got-in-just-this-year)

Of all the agencies listed in the executive order that Biden is expected to sign, the U.S. Department of Justice is already making headlines with their own efforts to reign in the volatility and, sometimes unsavoury actions, of the digital assets market.  With more than 100,000 attorneys, special agents, and other staff on payroll, the DOJ is responsible for enforcing the federal law of the United States and is headed by the U.S. Attorney General.  The DOJ  recently appointed Eun Young Choi as its first director of the new National Cryptocurrency Enforcement Team (NCET).

## Cryptoverse Subject to Fraud

In a statement by NCET, Choi was selected to lead the newly formed team to “meet the challenge posed by the criminal misuse of cryptocurrencies and digital assets.”  Specifically, NCET will be investigating and presumably taking legal action against “entities that are enabling the misuse of cryptocurrency and related technologies to commit or facilitate criminal activity.”  The crytpo-verse is wide and vast consisting of a jungle of blockchain technologies and people are operating within it to commit fraud or engage in theft.  Choi has quite a history with the DOJ.  She began as an assistant U.S. attorney for the Southern District of the U.S. state of New York, where she served as a cyber-cop prosecuting money laundering, cyber, and fraud crimes.

For more Business news, see [here](/news/category/crypto-business-news).

Latest Moni

#USA

Read the latest USA crypto news.

U.S. Fed crypto interest rate hike causes surge

Crypto mining ban enacted by New York State Legislature

Status Quo on Amazon Cryptocurrency Development

BTC Price: Bitcoin Update

Crypto Mining Rig and Hash Rate: Know Your Crypto

US Government Inching Closer to Regulating Crypto

Dash or Litecoin? Crypto Comparison

How to Buy Altcoins

BTT Crypto: BitTorrent Token Price