On Friday morning in Asia, Bitcoin experienced a drop below the critical support level of $27,000, while Ether also saw a decline, slipping below the $1,600 mark for the first time in the past week. Furthermore, all other cryptocurrencies within the top 10, excluding stablecoins, recorded losses over the past 24 hours.
The cryptocurrency price decline aligned with a global stock market downturn on Thursday, driven by investors processing the Federal Reserve's hawkish comments on monetary policy. Following the anticipated decision to maintain interest rates in September, the U.S. Federal Reserve revealed its projection for one more interest rate hike by the conclusion of 2023. Although the Fed reduced its forecast for the pace of interest rate cuts in 2024, statements from Fed members were characterized as "more hawkish" than what analysts had anticipated.
In the last 24 hours, the cryptocurrency markets have exhibited indications of a bearish sentiment among traders, resulting in a 4-point decline in the crypto "Greed and Fear Index." Currently, the index is positioned at 43 out of a possible 100.
Bitcoin slipped below $27,000, while Ethereum dropped under $1,600 on Friday, likely influenced by remarks from US Federal Reserve Chair Jerome Powell hinting at potential interest rate hikes. Other major altcoins like Dogecoin, Ripple, Solana, and Litecoin traded without significant movement. The standout performer was Terra Classic, which surged by over 5% in the last 24 hours.
Coinbase's Base Network, an Ethereum-based Layer-2 platform, has been gaining traction since its launch. Coinbase's legal chief, Paul Grewal, mentioned the possibility of a digital token for Base Network in an interview, though the focus is currently on technology development. Base Network has outpaced Solana in total value locked and aims to facilitate crypto adoption as a user-friendly "bridge" into the crypto economy.
The Indian government continues to enforce heavy taxes on crypto profits, with local exchange WazirX anticipating this regime to persist for two more years. The 1% TDS (Tax Deducted at Source) on crypto transactions introduced last year has led to a significant drop in trading volumes. WazirX CEO Nischal Shetty expressed optimism for future crypto-friendly policies in India but did not provide specific details. Despite taxation, India has shown rapid growth in its crypto landscape, ranking high in transaction volume and crypto adoption.
Binance and its co-founder, Changpeng Zhao (CZ), filed a joint motion on September 21, 2023, to dismiss claims by the U.S. SEC. They argued that the SEC lacks authority to impose actions on crypto transactions dating back to 2017 due to insufficient guidance. Binance also contested the SEC's claims under the Howey Test requirement and argued that only the U.S. Congress can make policy decisions regarding investment contracts. They sought the court's dismissal of all SEC claims.
The U.S. Court of Appeals for the Second Circuit denied the release of Sam Bankman-Fried, former FTX CEO, who faces charges including witness tampering and fraud. His request for temporary release to review trial documents was rejected, and he remains in custody awaiting an October 3 trial.
India's Ministry of Home Affairs (MHA) has launched the Cryptocurrency Intelligence and Analysis Tool (CIAT) to tackle rising cryptocurrency-related scams. CIAT scans the dark net for suspicious cryptocurrency wallet addresses, provides transaction records, and issues alerts for irregular activities. It also maintains an extensive database of global cryptocurrency exchanges, aiding law enforcement in investigations to address the surge in crypto crimes and protect citizens.
Judge Lewis Kaplan, overseeing the trial of Sam Bankman-Fried, founder of FTX Derivatives Exchange, has denied access to a key witness, Lawrence Akka, a British barrister and University of Michigan professor. The judge deemed Akka's expert testimony on FTX's Terms of Services and Obligations inadmissible. Bankman-Fried faces various charges, and the trial begins on October 3. The ruling doesn't guarantee the trial's outcome but adds intrigue to the case's progression.
Gary Gensler, the Chair of the U.S. SEC, is set to testify before the House Financial Services Committee on September 27, 2023. The hearing will focus on the SEC's oversight, particularly in the context of cryptocurrency regulation. Gensler may face tough questions, including those related to the SEC's stance on spot Bitcoin ETFs and the recent XRP lawsuit outcome. The hearing's outcome could impact cryptocurrency market sentiment.
Tether, a stablecoin issuer, has acquired an undisclosed stake in German crypto miner Northern Data Group. The investment, made through Tether's Damoon group company, suggests potential collaborations in artificial intelligence (AI). The exact amount of the investment remains undisclosed, but Tether stated it wouldn't affect customer funds.
Cardano's Project Catalyst, a decentralized fundraising initiative, achieved remarkable success in Fund 10. With 192 projects receiving support and 409,000 votes cast, the Cardano community demonstrated its commitment to fostering innovation. A total of 50 million ADA was allocated to Fund 10, empowering innovators to contribute to Cardano's growth.
The Terra Luna Classic community has approved a proposal to cease minting and reminting of USTC stablecoin in a bid to repeg it to $1 and revive LUNC. This decision opens the possibility for entities like Binance to begin burning USTC, as minting and reminting come to an end. The proposal passed with 55% "Yes" votes and 38% "No" votes from 35 validators.
COIN GABBAR Views: Is Bitcoin in a crash? Could BTC drop below $25K? Will Bitcoin see $30,000 again? Is a Bitcoin golden cross imminent, signaling a potential price surge above $30K in October? Stay tuned for the latest news at www.coingabbar.com
Disclaimer: Crypto is not regulated and can offer considerable risks. There may be no regulatory remedies available in the event of any losses resulting from price analysis. As a result, before engaging in any transactions involving crypto products, each investor must perform in-depth examination or seek independent advice.
For More News: Crypto Daily Roundup, 21 Sep: FOMC keeps interest rates unchanged
