In a significant boost for the largest cryptocurrency on the market, Bitcoin (BTC) has surged nearly 9% in the last 24 hours, inching closer to the coveted $60,000 milestone. This price rally comes after BTC hit a 7-month low of $49,000 earlier this week amid broader market uncertainty.
Fueling this crypto resurgence is a significant development in Russia, where President Vladimir Putin has officially signed a law legalizing cryptocurrency mining in the country.
Russia Formalizes Crypto Mining Rules
According to a local media report, the new law introduces several legal concepts related to the crypto mining industry, including digital currency mining, mining pool, mining infrastructure operator, address identifier, and the person who organizes mining pool activities.
In particular, the law recognizes mining as a component of digital currency turnover rather than the issuance of the currency itself, paving the way for a regulated and controlled crypto-mining ecosystem in Russia.
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Under the new law, only Russian legal entities and individual entrepreneurs in a special register will have the right to mine cryptocurrencies. However, individuals who do not exceed the government-set energy consumption limits can engage in mining without being part of the register.
The legislation also allows for the trading of foreign digital financial assets on Russian blockchain platforms while granting the Central Bank of Russia the authority to ban the placement of individual digital currency issues if they pose a threat to the country’s financial stability.
The move by the Russian government aligns with President Putin’s previous statements, where he acknowledged the promising economic potential of digital currencies and the importance of Russia “seizing the moment” to create the necessary legal framework and infrastructure for the circulation of digital assets.
The new law is set to come into force 10 days after its official publication, with some provisions subject to different effective dates.
Bitcoin Price Targets In Focus
In an analysis of the recent price action, technical analyst Crypto Con claims that Bitcoin has recently bounced off the “Level 2” of the Magic Bands at $55,444 and is maintaining its trajectory toward the Level 3 target, which now stands at $94,302.
Crypto Con further notes that this also means that the cycle top band has risen to the $128,000 mark, with the analyst also claiming that this top will “grow much more” as the price conquers new all-time highs.
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In a parallel analysis, analyst Rekt Capital has weighed in on Bitcoin’s current price dynamics, noting the cryptocurrency’s continued upward momentum as it consolidates around the $59,000 mark.
According to Rekt’s analysis, regaining $60,600 as a support level is crucial for the Bitcoin price to solidify its current bullish trend further and potentially climb to the $65,000 threshold.
Featured image from DALL-E, chart from TradingView.com