Markets

US lawmakers unite against SEC as cryptocurrency regulations tighten globally

Published

9 months ago

20 May, 2024

Last May, the Fed noted that it would not cut rates anytime soon, and so Bitcoin the price fell below $57,000 in early May. Despite this, it is unexpectedly becoming a good time for the cryptocurrency market. The Bitcoin ETF has seen record inflows since March, hedge funds report record numbers of cryptocurrency investments, and US lawmakers have passed anti-SEC resolutions.

Other updates to cryptocurrency regulation outside the US include a new cryptocurrency law in Turkey, a mining ban in Venezuela, regulatory uncertainty in the EU, and consultations among cryptocurrency regulators in India.

Are US lawmakers uniting against the SEC?

The United States Senate did past a resolution against the SEC to overturn Rule 129, which forces banks to report their crypto balances to the commission. Senators voted 60-38; both Republicans and Democrats supported this resolution. However, Biden has already said that he will veto it.

However, this is the first case that the US Congress and Senate have agreed on cryptographic regulation. The resolution was supported by both Republicans and Democrats, including Majority Leader Chuck Schumer. The lawmakers gently suggest to the SEC and its chairman, Gary Gensler, that the commission must not abuse its authority over cryptocurrencies and banks.

Growing number of Bitcoin ETF investments

In mid-May some large institutional investors made headlines by announcing their shares in Bitcoin. Millennium Hedge Fund invested approximately $2 billion, while Morgan Stanley invested 270 million dollars. The State of Wisconsin Investment Board also disclosed that it had done so $164 million Grayscale and Blackrock Bitcoin ETF. Meanwhile, with the April US CPI falling 0.1% lower than forecast, Bitcoin’s price rose to $67,000. Last week, we saw inflows of $948.3 million into US spot Bitcoin ETFs, according to Farside Investors.

Last but not least, Pantera Capital invested a large sum in the TON cryptocurrency, which is not known but probably exceeds Pantera’s investment in Solana ($250 million). The Chicago Mercantile Exchange (CME Group) has also seen an increase in institutional demand for bitcoin and plans to directly launch spot bitcoin trading.

Regulatory uncertainty in the European Union

Meanwhile, Europe is preparing for the full implementation of the MiCA cryptocurrency regulatory framework. Overall, this is not the best news for the industry: there is a lot of uncertainty about how cryptocurrency companies will continue to operate in Europe. This not only affects medium-sized VASPs, but also large market players.

In April it became known from Tether CEO Paolo Ordoino that the company does not plan to obtain a license for USDT in the EU. Kraken trade last week announced which will delist USDT for its European customers. Tether will supposedly develop euro-denominated stablecoins in the EU. However, it is not known how this will happen: so far the capitalization of euro-denominated stablecoins has remained relatively small.

At the same time, European countries continue to implement their classic VASP crypto regulatory frameworks, which oblige all crypto entities operating in the country to obtain a license/registration. For example, the French financial regulator Autorité des marchés financiers (AMF) has informed the public that Bybit has been operating illegally in the country since 2022 because it has not obtained a license from the regulator. Bybit it is included blacklisted by the AMF as a company, which does not comply with existing regulations in the country.

Turkey to approve new cryptocurrency law

Last week, the ruling party presented a cryptocurrency law to the Turkish parliament. The new legislation regulates crypto entity licensing procedures, compliance and AML. The local financial regulator Capital Markets Board (CMB) will be the lead institution in this process.

India Updates Cryptocurrency Regulations

Although awaiting new elections, the national government has so far resisted its legislative initiatives to regulate cryptocurrencies: regulators are the ones doing it instead. The local financial regulator – SEBI has published its recommendations dedicated to the regulation of cryptocurrencies in the country. Recommends dividing crypto assets by regulators: SEBI to regulate ICOs and securities, Central Bank – stablecoins, FIU – VASP registrations.

The FIU started VASP registration in the country late last year and 28 companies have been registered. Last week so were the first two exchanges, Binance and Kucoin approved to operate in the country.

Venezuela imposes ban on mining

Despite the economic and political problems that exist in Venezuela, cryptocurrencies are legal in the country. Additionally, it has regulations for mining. Unfortunately, last week, the local Ministry of Electricity said it would disconnect existing mining farms from the grid. The government explained this initiative by citing the high load on the country’s electricity grids. Furthermore, the decision could be linked to the country’s anti-corruption campaign: the government had previously confiscated 2,000 devices in the city of Maracay and 11,000 mining devices in the state of Carabobo. It remains to be determined whether Venezuela’s mining ban will be temporary or permanent.

Such initiatives to ban or restrict mining due to the high load on electricity grids are not uncommon. For example, in 2021, mining in Iran was banned for four months. Central Asian countries Kazakhstan, Uzbekistan and Kyrgyzstan have also imposed some restrictions on the activities of mining operators.

Application of the VanEck ETH ETF

Finally, I would like to remind you of the important event next week: on May 23, the SEC is expected to rule on VanEck’s Ethereum ETFs. Bloomberg analyst Erik Balchunas commented last week that the SEC will likely not approve any Ethereum spot ETFs. He suggests that, according to the commission’s current position, it evaluates Ethereum as a security. Indeed, the probability of rejection is quite high, but let’s see what the regulator decides.

If you are interested in getting more insights into cryptocurrency regulation, you can look at the Global Cryptocurrency Regulation Assessment Here and get updates on mine Telegram channel.

Fuente

Markets

Bitcoin, Ethereum See Red as Markets Crash on Volatility

Published

6 months ago

1 August, 2024

Financial Block Staff

Bitcoin, Ethereum See Red as Markets Crash on Volatility

Bitcoin AND Etherealalong with the rest of the top 10 cryptocurrencies by market cap, appear to be in hibernation on Thursday morning.

At the time of writing, the Bitcoin Price is still below $65,000 and 2.2% lower than it was this time yesterday, according to CoinGecko data. Things are worse for the Ethereum Pricewhich is 3.7% lower than 24 hours ago at $3,185.22. The drop in ETH’s price is identical to that of Lido Staked Ethereum (stETH), a liquid staking token for Ethereum.

In recent days, falling prices have led to the liquidation of derivative contracts worth $225 million, according to Coin glassAnd about half of that, about $100 million, was liquidated in the last 12 hours.

When a trader is liquidated, it means that their position in the market has been forcibly closed by an exchange or brokerage due to a margin call or insufficient collateral. Margin is especially important when it comes to leveraged positions, which allow traders to control a multiple of their deposit, such as opening a $10,000 position with only $1,000 in their account.

Now that Bitcoin has been in the red for three days in a row, there is a chance that the world’s oldest and largest cryptocurrency could sink even further, BRN analyst Valentin Fournier said in a note shared with Decrypt.

“Bitcoin has closed in the red for three days in a row, with one-way trading showing limited resistance from bulls. Ethereum had a slightly positive Monday with strong resistance from bears who have won the last two days,” he wrote. “This momentum could take BTC to the $62,500 resistance or even the $58,000 territories.”

Looking ahead, Fournier said BRN’s strategy will be to “reduce exposure to Bitcoin and Ethereum and find a better entry point after the dip.”

This is despite Federal Reserve Chairman Jerome Powell’s comments yesterday on interest rates being widely regarded as accommodating and indicative of FOMC rate cuts in September.

Singapore-based cryptocurrency trading firm QCP Capital said the rally in stocks, which sent the S&P 500 up 1.6% from Wednesday’s close, was not felt in cryptocurrency markets.

“Cryptocurrencies have seen a broad sell-off overnight and into this morning,” the firm wrote in a trading note. “The market remains poised as traders pay close attention to daily ETH ETF outflows and further supply pressure from Mt Gox and the US government.”

Meanwhile, the other top-ranking coins are showing mixed performance.

Solana (SOL) is down 7.2% since yesterday to $169.13. Things are even worse for its most popular meme coins. In the past 24 hours, the most popular meme coins Dogwifhat (WIF) are down 12% and BONK (BONK) is down 9%, according to CoinGecko data.

Their dog-themed competitor, Ethereum OG Dogecoin (DOGE), the only meme coin in Coingecko’s top 10, is down nearly 4% since yesterday and is currently trading at $0.1205.

XRP (XRP) dropped to $0.608, which is 7% lower than it was at this time yesterday.

Binance’s BNB Coin (BNB) has kept pace with BTC and is currently trading at $571, down 2.4% from yesterday. Toncoin (TON), the native token of The Open Network, is down just 0.4% over the past day.

This leaves the stablecoins USDC (USDC) and Tether (USDT), both of which are stable as they maintain their 1:1 ratio with the US dollar.

Fuente

Markets

XRP Market Activity Drops During Ripple-SEC Talks: Price Steady

Published

6 months ago

1 August, 2024

Financial Block Staff

Ripple (XRP) Market Witnesses Calm During SEC-Ripple Meeting

The Securities and Exchange Commission (SEC) will hold another closed-door meeting with Ripple on Thursday, as the market hopes for a possible resolution to the legal battle between the two entities.

However, the cryptocurrency market remains relatively bearish, with the price and trading volume of XRP down in the last 24 hours.

Ripple holders take no risk

At press time, XRP is trading at $0.60. The altcoin’s price has dropped 6% over the past 24 hours. During that time, trading volume was $27 million, down 27%.

The SEC met before with the digital payment company on July 25. While the outcome of that meeting remains unknown, the Sunshine Act Notice for Thursday’s meeting includes one additional topic of discussion from the July 25 closed meeting: the instituting and resolving injunctive relief. That has market participants speculating whether a settlement is imminent.

In an exclusive interview with BeinCrypto, Ryan Lee, Lead Analyst at Bitget Research, noted that:

“This meeting will discuss possible resolution options for the Ripple Lawsuit. The founder of Ripple Labs said that a legal settlement could be announced soon. If an official settlement plan is released, it could positively impact XRP’s price movement.”

However, an assessment of XRP’s price movements on a 4-hour chart shows a spike in bearish bias as the market awaits the outcome of this crucial meeting. Its Moving Average Convergence/Divergence (MACD) indicator readings show that its MACD line (blue) has crossed below its signal line (orange).

XRP 4 Hours Analysis. Source: Trading View

Traders use this indicator to gauge price trends, momentum, and potential buying and selling opportunities in the market. When an asset’s MACD is set this way, it is a bearish signal that suggests selling activity is outweighing buying momentum.

Additionally, the altcoin relative strength index (RSI), at 46.08, is currently below its neutral 50 line and in a downtrend. This indicator measures overbought and oversold market conditions for an asset.

To know more: How to Buy XRP and Everything You Need to Know

xrp rsi XRP 4 Hours Analysis. Source: Trading View

At 43.83 at the time of writing, XRP’s RSI suggests a growing preference among the market participants for tok in distribution.

XRP Price Prediction: Derivatives Traders Exit Market

The XRP derivatives market has also seen a decline in trading activity over the past 24 hours. According to Coinglass, derivatives trading volume has plummeted 18% and open interest has dropped 10% during that period.

Open interest refers to the total number of outstanding derivative contracts, such as options or futurethat have not yet been resolved. When it drops, traders close their positions without opening new ones. This is a bearish signal that reflects a lack of confidence in any potential positive price movement.

According to Lee, the outcome of the meeting with the SEC “would have a significant impact on the price movement of the token.” If the outcome is favorable, the price of the token could rise towards $0.75 in August.

To know more: Ripple (XRP) Price Prediction 2024/2025/2030

XRP Price Prediction XRP 4 Hours Analysis. Source: Trading View

On the other hand, if no favorable resolutions are reached, the price could plummet to $0.50.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto strives to provide accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and conditions, Privacy PolicyAND Disclaimers They have been updated.

Fuente

Markets

Bitcoin’s Dominance Hits Three-Year High, But Analysts Say Altcoins Are Ready to Rebound

Published

6 months ago

1 August, 2024

Financial Block Staff

Bitcoin's Dominance Hits Three-Year High, But Analysts Say Altcoins Are Ready to Rebound

Bitcoin is now the dominant force in the cryptocurrency market, surpassing 53% of the total cryptocurrency market, a stronger share than it has been in the past three years.

Bitcoin’s market cap now stands at $1.27 trillion, second according to CoinGecko data. In contrast, the total cryptocurrency market cap is $2.43 trillion, with Ethereum occupying 15.9% of the market, worth $389 billion.

Bitcoin’s rise to dominance this year is unusual, as altcoins typically do better than Bitcoin in a bull market. While meme coins made a strong comeback during Bitcoin’s rally to all-time highs earlier this year, the so-called “wealth effect” It has not been appreciated as much by mid-range coins, such as Ethereum and Cardano.

“ETF flows fundamentally alter market dynamics,” he wrote Meltem Demirors, former chief strategy officer at CoinShares, tweeted Wednesday: “BTC gains no longer translate to alts and the longer tail of crypto.”

Bitcoin’s takeover has continued even as the market cap of Tether (USDT) continues to grow, the world’s largest stablecoin and the third-largest cryptocurrency after BTC and ETH. Stablecoins are backed by fiat currencies and are excluded from some measures of Bitcoin dominance due to fundamentally different value models.

The surge continued to pace even after the launch of Ethereum spot ETFs last week, which ironically culminated in a news sell-off event, and net outflows from new investment products since they were launched. This went against the predictions of K33 Search so far, which predicted that ETFs would catalyze ETH’s growth over the next five months.

Despite the poorer performance of the alts, there is reason to believe that they are ready to bounce back very soon.

CryptoQuant CEO Ki Young Ju said Tuesday that whales are “preparing for the next altcoin rally,” as limit buy orders for assets other than BTC and ETH are on the rise.

The executive shared a chart showing how the “cumulative difference between purchase volume and sales volume” has increased in recent months.

“The indicator measures the difference between buy and sell orders over a year,” CryptoQuant told Decrypt. A buy/sell order is a pre-set request to buy or sell a cryptocurrency if it hits a certain price level, which creates resistance and support levels.

“If the trend is up, it means that more people are placing buy orders, showing strong interest in buying,” CryptoQuant said.

By Ryan-Ozawa.

Fuente

Markets

XRP and SOL Retrace as BTC Price Drops to 2-Week Lows (Market Watch)

Published

6 months ago

1 August, 2024

Financial Block Staff

Bitcoin Returns Toward $60K, XRP Defy Negative Sentiment (Market Watch)

After Monday’s crash, in which BTC fell by several thousand dollars, the scenario has repeated itself once again in the last 12 hours, with the asset falling to a 2-week low of $63,300.

Alt coins followed suit, with most of the market in the red today. SOL and XRP lead the way from the higher cap alts.

BTC Drops To $63.3K

After a violent Thursday last week, when BTC crashed to $63,400, the asset went on the offensive over the weekend and surged above $69,000 on Saturday, as the community prepared for Donald Trump’s appearance at the 2024 Bitcoin Conference in Nashville.

His speech was followed by more volatility before the cryptocurrency settled around $67,500 on Sunday. Monday started off rather optimistically for the bulls as bitcoin hit a 7-week high of $70,000.

However, he failed to maintain his run and conquer that level decisively. On the contrary, he was rejected bad and dropped to $66,400 by the end of Monday. Tuesday and Wednesday were less eventful as BTC remained still around $66,500.

The last 12 hours or so have brought another crash. Bears have pushed the leading digital asset down hard, which has fallen to a 2-week low of $63,300 (on Bitstamp), leaving over $200 million in liquidations.

Despite the current rebound to $64,500, BTC’s market cap has fallen to $1.270 trillion, but its dominance over alts is recovering and has reached 52.6%.

Bitcoin/Price/Chart 01.08.2024. Source: TradingView

The Alts are back in red

Ripple’s native token has been at the forefront of the market challenge in recent days as pumped up to a multi-month high of over $0.66. However, its run was also interrupted and XPR fell by more than 6% in the last day to $0.6.

The other big loser among the larger-cap alternatives is SOL, which has lost 8% of its value and is now struggling to get below $170.

The rest of this altcoin cohort is also in the red, with ETH, DOGE, BNB, AVAX, ADA, SHIB, and LINK all seeing drops between 2 and 5%.

The total cryptocurrency market cap lost another $70 billion overnight, falling below $2.4 trillion today on CG.

Cryptocurrency Market Overview. Source: QuantifyCrypto SPECIAL OFFER (sponsored)
Binance $600 Free (CryptoPotato Exclusive): Use this link to register a new account and receive an exclusive $600 welcome offer on Binance (full details).

LIMITED OFFER 2024 on BYDFi Exchange: Up to $2,888 Welcome Reward, use this link to register and open a 100 USDT-M position for free!

Disclaimer: The information found on CryptoPotato is that of the authors cited. It does not represent CryptoPotato’s views on the advisability of buying, selling, or holding any investment. We recommend that you conduct your own research before making any investment decisions. Use the information provided at your own risk. See Disclaimer for more information.

Cryptocurrency Charts by TradingView.

Fuente