June 24, 2024

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BTC price rose over $28.3K despite legal troubles on Binance

BTC price rose over $28.3K despite legal troubles on Binance

What’s wrong with encryption? Investors send Bitcoin back over $28K

Despite the ongoing tension caused by Binance’s recent legal troubles, bitcoin and other major cryptocurrencies spent Wednesday in the green.

The largest cryptocurrency by market cap was recently trading at $28,380, up 3.9% over the past 24 hours and a significant rise from lows under $27,000 earlier in the week after the Commodity Futures Trading Commission (CFTC) raised A lawsuit against Binance accusing the exchange giant of offering unregistered crypto derivatives, among other allegations. Bitcoin is up about 21% in March, outperforming other assets such as ether, stocks, and gold.

“The market reaction has been positive despite the CFTC story mostly because the broader narrative of a return to quantitative tightening (QE) and paper printing continues to dominate,” Joe DiPasquale, CEO of crypto asset manager BitBull Capital, told CoinDesk in an email. .

Ether (ETH), the second largest cryptocurrency by market cap, recently changed hands at $1,794, gaining 1.1% for the day. Among other altcoins, crypto payment platform Ripple’s token XRP continued to strengthen as of Tuesday, jumping nearly 6% to 54 cents. Cardano’s ADA token and Polygon’s MATIC token are up 3.8% and 3.3%, respectively.

The recent outperformance of coins like XRP is related to “regulators seemingly questioning even the biggest names in the space,” DiPasquale said, adding that “the playing field is level for all other coins that were previously considered controversial.”

In the lawsuit filed Monday against Binance in the US District Court in Illinois, the CFTC named several cryptocurrencies including BTC, ETH, Litecoin (LTC), Tether (USDT), and Binance USD (BUSD). US Securities and Exchange Commission (SEC) Chairman Gary Gensler has previously suggested that proof-of-stake tokens like ETH are securities amid an ongoing dispute between agencies over jurisdiction.

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Stock markets rose on Wednesday: the S&P 500 and Nasdaq-Heavy closed 1.4% and 1.7%, respectively. The Dow Jones Industrial Average (DJIA) rose 1%.

James Lavish, managing partner at Bitcoin Opportunity Fund, called Wednesday a “risk on” day across the board as investors appear to be positioning themselves and their books ahead of several data releases later this week, including the latest fourth-quarter US GDP. Thursday. Release and inflation data in personal consumption expenditures for Friday.

“The idea is that if this data comes out weaker than expected, it will give (Fed Chairman) Powell enough evidence to pause further price increases,” Lavish told CoinDesk in an email. the CME FedWatch tool It showed that more than 62% of traders expect that the US central bank will not raise interest rates at the May monetary policy meeting.

He added that BTC price benefited from the recent risk move as well as the announcement China completed The first trade of liquefied natural gas (LNG) with the United Arab Emirates.

“This strengthens the argument that bitcoin could be used as a medium of exchange in large cross-border energy trade in the near future,” he said. “Having said that, I think that fact, while true, is still a long way off.”

Meanwhile, the rate of the 2-year US Treasury remained almost flat as of Tuesday, at the same time, remaining around 4.06% on Wednesday, while the rate of the 10-year Treasury note was almost flat from the day before at 3.56%.

Nicholas Colas, co-founder of market analysis firm DataTrek Research, highlighted in a note on Wednesday that the yield on the two-year Treasury note has been higher than the yield on the 10-year Treasury note since July 2022 — a sign that “markets have seen US monetary policy restrictive.”

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“Monetary policy essentially drives a brake on the US economy and a recession inevitably follows” based on historical patterns, Colas wrote, adding: “We certainly have a recession call ‘ignition’, but the stimulus ‘spark’ is still not entirely clear to stock markets. American.”

DAO congregates to keep the Goerli testnet alive

The future of the Ethereum Goerli testnet is still uncertain, but the little-known Ethereum community is gathering behind the network in hopes of finding a solution to keep it going.

GoerliDAO, a decentralized autonomous organization, is Case making To continue Goerli as an active blockchain network and use goerli ether (gETH) to stimulate activity on the network.

“Goerli’s historic use makes it an ideal candidate to be the de facto canary for Ethereum — an experimental environment much like the mainnet,” the newly formed DAO said in a post earlier this week.

It added, “An incentivized Canary network like Goerli offers unique benefits to builders and users alike, and the concept has seen success on many blockchains — most notably with Kusama in relation to Polkadot.”

It is unclear who is behind GoerliDAO as of Wednesday.

Testnets like Goerli are a testing environment that simulates real-world blockchain usage, allowing developers to find and patch critical bugs for upcoming products or features that are meant to be deployed on a main or live blockchain network.

A lot of testing for major Ethereum upgrades, such as Merge, has been done on Goerli.

Keeping this testing environment alive is what the people behind GoerliDAO strive for: “Keeping Goerli as a canary network will not only fill a critical need within the Ethereum ecosystem, but also pave the way for innovation and future stimulus in the world of decentralized finance.

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Find the full story here.

CoinDesk data showed that bitcoin (BTC) has added nearly 72% to $28,500 this year, its best quarterly gain in two years. Distributed by Jeff Dorman, Chief Investment Officer of Arca. Additionally, the on-chain Binance balance remains elevated, despite US regulators accusing Binance of violating US federal law last week. Braden Perry, partner of Kennyhertz Perry and former chief trial attorney with the CFTC, shared his views on the future of crypto regulation. And Journey Head of Metaverse Cathy Huckle interacted with Metaverse Fashion Week.