Markets
US regulation heats up; Bitcoin rises, then falls
U.S. Senators Elizabeth Warren (D-Mass.) and Roger Marshall (R-Kan.) present a bill to crack down on money laundering and the financing of terrorists and rogue nations via cryptocurrency.
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If it becomes lawthe digital asset anti-money laundering law will introduce know-your-customer (KYC) rules to cryptocurrency participants such as wallet providers and miners and prohibit financial institutions from transacting with digital asset mixers, which are tools designed to obscure the origin of funds .
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The bill would also allow the Financial Crimes Enforcement Network (FinCEN) to implement a proposed rule requiring institutions to report certain transactions involving unhosted wallets – wallets where the user has complete control over the contents rather than relying on an exchange or other third party.
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Concerns about the use of cryptocurrencies to facilitate money laundering and terrorist financing they are often disseminated by legislators or regulators and are often used to highlight the need for more robust regulation of the digital asset sector.
Collecting tokens
(CoinDesk Research)
Bitcoin (Bitcoin): The largest cryptocurrency by market capitalization has shed previous gains and recently traded at $17,800 after the US Federal Reserve raised interest rates another 50 basis points in the last meeting of the year and signaled that further increases were likely in 2023. BTC was trading as high as $18,356 just before the Fed’s announcement, above the $18,000 mark for the first time since early November. It increased by 0.5% in the last 24 hours. “Cryptocurrencies are being dragged lower as the dollar recovers as risk aversion returns,” Edward Moya, senior Americas market analyst at Oanda, wrote in a note on Wednesday.
Stock markets it also went into the red, with the tech-heavy Nasdaq Composite closing 0.76% lower. The S&P 500 lost 0.61% and the Dow Jones Industrial Average lost 0.42%.
Ether (ET): The second-largest cryptocurrency by market capitalization after bitcoin similarly followed BTC’s trajectory, slipping about 1% to $1,310 at the time of publication. Earlier in the day, PayPal and MetaMask announced The payments company will integrate its cryptocurrency buying, selling and holding services with MetaMask Wallet as the companies look to expand users’ options for transferring digital assets from their platforms. Users will be able to purchase and transfer ETH from PayPal to MetaMask.
Maple (MPL): Blockchain-based lending platform Maple Finance was unveiled on Wednesday a profound revision of the protocol in an effort to improve the shortcomings highlighted by a series of recent loan defaults. The updated version includes improvements to the withdrawal request process, introducing an option to schedule and prorate withdrawals. Native to Maple Finance MPL The token traded as much as 6.9% in the past 24 hours on the news before falling 1.7% to $3.80, according to price tracking site CoinGecko
Latest prices
882.61
−1.9 ▼ 0.2%
$17,834
+73.0 ▲ 0.4%
$1,311
−9.7 ▼ 0.7%
Daily close of the S&P 500 Index
3,995.32
−24.3 ▼ 0.6%
Gold
$1,819
+4.8 ▲ 0.3%
10-year Treasury yield
3.5%
▲ 0.0
BTC/ETH prices for CoinDesk Indices; gold is the spot price on the COMEX. Prices starting around 4pm ET
Crypto Market Analysis: Focus on Bitcoin Price Charts, Not Fed Powell’s Hard Line
By Glenn Williams Jr.
Let’s analyze this week’s move above $18,000 for the first time since November 10th. Does the movement have real value or is it just a short-term relief rally? It could be like this: simply asking the question is a sign of optimism.
Historically, on a seasonal basis, the market does not enter a strong performance period of the year. From a price chart perspective, Bitcoin’s roughly $17,900 level moves the asset into a “low volume node” region, likely indicating the potential for rapid price movements.
Volume nodes can be identified as zones on a price chart using the Volume Profile Visible Range tool, which shows trading activity by price. A high-volume node represents areas of significant price agreement, which often coincides with slower price movement.
In contrast, low-volume nodes represent areas of low activity. Prices have a tendency to move rapidly through these areas until reaching the next area of agreement. An example of this can be seen in the 14% drop that occurred on November 9th. Bitcoin has now entered the same space, but this time on the upside.
Bitcoin 12/14/22 (TradingView)
Read the full technical sheet here.