When will the fundamental strengthening of the market affect prices?

Digital Asset News

Flow blockchain developers Dapper Labs has suspended Russian accounts after the European Union imposed new sanctions against Russia and its nationals.
Announced on Oct. 6, the latest set of EU sanctions on Russia stipulates a full ban on the provision of crypto-asset wallets, accounts and custody services, regardless of the total value of the assets.
Following the sanction announcement, Dapper stated that accounts with connections to Russia will no longer be able to sell, purchase or gift nonfungible tokens (NFTs), withdraw funds from their accounts or add to their balances, stating:
“It is now prohibited to provide crypto-asset wallet, account, or custody services of any value to accounts with connections to Russia, irrespective of the amount of the wallet.”
“However, Dapper has not closed the accounts. Users impacted by these actions can continue to access and view their NFTs. Additionally, regardless of this new regulation, any NFT previously purchased by an impacted user continues to belong to that user,” the firm stated.
The sanctions on Russia include a complete ban on cross-border crypto payments between Russians and the EU, which also results in the prohibition of “all crypto-asset wallets, accounts, or custody services, irrespective of the amount of the wallet.”

The negative market condition has forced BTC to shed its correlation with tech stocks, while at the same time, the top cryptocurrency’s correlation with the precious metal has reached levels not seen in over a year.
The correlation between Bitcoin and gold over the past year has largely fluctuated between -0.2 and +0.2. However, the correlation between the two assets reached +0.3 last week, the highest in one year.
A correlation reading of +0.3 is considered slightly positive, while a value of +0.7 is regarded as a strong correlation. Thus, even though the BTC-gold correlation has reached a yearly high, it still has not reached a significant level where the price momentums mimic each other.
Apart from Bitcoin and gold, United States Treasury bonds and other stocks have also faced a similar fate. Experts believe the strengthening dollar added to the ongoing market conditions has forced investors to look beyond safe haven assets. Obviously, it’s not been a great year for Bitcoin. Nor has it for traditional risk-off assets like gold and U.S. [Treasury bonds]. The charts say it all, the dollar has been the winner. This is ironic as investors would seek refuge in yield or growth assets, but the risk of recession and attempted QT have driven investors to hoard dollars.”

Members of the Parliament of the European Union voted in favor of a non-binding resolution aimed at using blockchain to fight tax evasion and coordinate tax policy on cryptocurrencies.
In an Oct. 4 notice, the European Parliament said 566 out of 705 members voted in favor of the resolution originally drafted by member Lídia Pereira. According to the legislative body, the resolution recommended authorities in its 27 member states consider a “simplified tax treatment” for crypto users involved in occasional or small transactions and have national tax administrations use blockchain technology “to facilitate efficient tax collection.”
The resolution added that the parliament’s member states could integrate blockchain solutions into tax programs:
“Blockchain’s unique features could offer a new way to automate tax collection, limit corruption and better identify ownership of tangible and intangible assets allowing for better taxing mobile taxpayers. […] Work must be undertaken to identify the best practices of using technology to improve the analytical capacity of tax administrations.”
Many expect the policies to go into effect in 2024.