As Tuesday unfolded, the cryptocurrency market saw a bullish surge in Bitcoin and a variety of other digital tokens. This uptrend was fueled by the market's keen anticipation of the Federal Reserve's policy meeting, where the prevailing expectation was for the US central bank to maintain its existing position. Notably, Bitcoin's prominence within the cryptocurrency sphere surged to around 50 percent, reaching its highest point in the last 26 months.
In the realm of regulatory changes in the United States, the New York State Department of Financial Services (NYDFS) introduced updated guidelines for cryptocurrency exchanges this Monday. These revised guidelines introduce stricter requirements for the inclusion and delisting of cryptocurrencies, resulting in a reduction of pre-approved digital assets from approximately two dozen to a select few, comprising Bitcoin, Ether, and six stablecoins.
Over the past day, the market has shown a phase of consolidation, suggesting that there have been no substantial changes in the sentiment index for cryptocurrencies. The present sentiment index is holding at 46 out of a possible 100.
On Tuesday morning in Asia, Bitcoin saw an increase in its value to approximately $26,700, following a brief breach of the $27,000 resistance level the previous Monday evening. Meanwhile, Ether recorded gains but remained below the $1,650 mark. In the past 24 hours, the majority of the top 10 non-stablecoin cryptocurrencies also experienced upward movements, with Toncoin emerging as the frontrunner with a surge of over 5%.
The US SEC faced obstacles in accessing Binance.US's software and data during a lawsuit against the exchange. A magistrate judge denied immediate access, urging the SEC to formulate more specific requests and engage with witnesses. The SEC had accused Binance.US of violating American securities laws.
John Deaton, attorney for 75,000 XRP holders in the Ripple vs. SEC lawsuit, is set to make a significant announcement, unrelated to suing anyone. It remains uncertain if the revelation pertains to the XRP case, but it may involve shedding light on ongoing crypto lawsuits, such as the Binance vs. SEC dispute regarding document cooperation.
The New York Department of Financial Services (DFS) has removed Ripple and Dogecoin from its "greenlist" of approved cryptocurrencies, while Bitcoin, Ether, and PayPal Dollar retain their positions. DFS is known for its rigorous cryptocurrency regulation, including the BitLicense program. The changes aim to clarify token-listing and delisting procedures, emphasizing risk assessment standards and requirements for businesses targeting retail consumers. Despite criticism, DFS's approach stands out amid regulatory uncertainty in the US crypto sector, with other agencies like the SEC lagging in formulating regulations.
Malta's Financial Services Authority (MFSA) seeks public input on crypto regulation changes to align with EU's MiCA rules. Proposed amendments include reduced capital requirements and increased oversight. The move signals Malta's commitment to EU crypto regulation ahead of MiCA's implementation. Consultation is open until September 29.
The SEC seeks an expedited inspection of Binance due to a mass exodus of users potentially affecting depositions in their ongoing lawsuit. Binance.US's CEO departure is also under scrutiny, with the SEC requesting information about customer deposits. Binance has faced multiple charges, including violating securities laws.
US Representative Rudolph Yakym has expressed support for the anti-CBDC Bill introduced by House Majority Whip Tom Emmer. Emmer's CBDC Anti-Surveillance State Act aims to prevent the issuance of a central bank digital currency (CBDC), claiming it threatens Americans' financial privacy and individual liberties. Emmer is known for his pro-crypto stance and criticism of the SEC's actions against crypto entities like Ripple, Binance, and Coinbase.
Hut 8, a Canadian Bitcoin mining company, is moving forward with its merger with US Bitcoin (USBTC) after approval from the Supreme Court of British Columbia. The merger aims to create "New Hut," a US-based entity with substantial Bitcoin mining and data center facilities.
Ant Group is reportedly planning to exit its $100 million investment in A&T Capital, a cryptocurrency-focused venture firm. This move reflects Ant Group's retreat from the volatile cryptocurrency market amid uncertainties. A&T Capital had made significant investments in cryptocurrency startups but faced uncertainty following Ant Group's withdrawal and the resignation of its founding partner.
Retool disclosed a security breach affecting 27 customers where $15 million in cryptocurrency, including Ripple's Fortress Trust, was stolen. The breach exploited Google Authenticator's cloud sync feature after an employee fell victim to an SMS phishing attack, emphasizing the importance of hardware security keys to prevent such incidents.
The Taiwan Cryptocurrency Association has communicated with El Salvador's Virtual Assets Bureau, advocating for a similar regulatory body in Taiwan to oversee cryptocurrency trading and enhance consumer protection. Taiwan is actively developing regulatory measures for its cryptocurrency sector, with plans to unveil virtual asset service provider (VASP) guidelines soon.
Bitcoin's historical cycles, marked by peaks and bottoms approximately every four years, are attributed to its halving events, where the mining reward is halved, increasing scarcity. Based on this pattern, the next Bitcoin peak is estimated around the end of 2025, following the projected 2024 halving. However, external factors like technological advancements, economic conditions, and regulations may introduce variations in this cycle, especially in the current high-inflation and high-interest-rate environment, potentially affecting Bitcoin's performance.
Former SEC enforcement chief John Reed Stark anticipates a dramatic SEC lawsuit against Binance, citing Binance's non-cooperation. Magistrate Judge Faruqui ordered the SEC to justify sealed documents related to depositions from Binance.US executives. Stark believes the SEC's arguments give it an advantage, with a crucial hearing scheduled for Monday.
COIN GABBAR Views: Could a bear trap be looming at the $26K mark for Bitcoin? Bitcoin surpasses $27K just a week after the Death Cross formation, and with the Federal Reserve poised to prolong its rate pause, will Bitcoin make a swift climb to $30,000 in the near future? 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.