Bitcoin prices have dropped to $21,750 according to the CoinDesk Bitcoin Price Index (XBX). Joe DiPasquale of BitBull Capital believes that bitcoin is now making an “underside test” and could fall to $20,000 or below. Ether is also down 1.8% to $1,514. The Securities and Exchange Commission’s move against Kraken’s staking program isn’t an attack on staking as a whole, and there is still reason to be bullish about the world’s largest digital asset. Investors should keep an eye on the $23K and $22K levels to determine if bitcoin will reclaim the $23K mark or fall further.
Bitcoin is experiencing a volatile period, with prices dropping to a low of $30,000 on January 4th. Analysts attribute this to a combination of macroeconomic developments, such as higher than expected December consumer prices, and regulatory developments, such as the SEC’s $30 million fine of Kraken for its staking program. The Wall Street Journal also reports that Paxos is next on the SEC’s hit list as it targets the Binance USD stablecoin. Despite the recent dip, analysts remain optimistic about the future of Bitcoin, with some predicting that the market may start to consider a bigger rate hike in the next FOMC.
Cryptocurrency investors are feeling the pressure as Bitcoin continues to drop in value. Despite the bearish market, BitBull Capital CEO Joe DiPasquale remains bullish on Bitcoin, believing that regulatory clarity is better to get in a slow market. He also believes that prices dropping below $20,000 could be a good opportunity to accumulate more Bitcoin. DiPasquale is not alone in his optimism, as many investors are still confident that Bitcoin will eventually recover and reach new highs. Despite the current market conditions, investors should remain vigilant and keep an eye out for any potential opportunities that may arise.
The cryptocurrency market has seen a lot of volatility in the past few weeks, with some assets experiencing significant gains and others suffering losses. Solana (SOL) was one of the biggest gainers, with a 2.7% return, while Shiba Inu (SHIB) saw a 0.4% return. On the other hand, Loopring (LRC) was one of the biggest losers, with a 5.3% drop, followed by Decentraland (MANA) and Gala (GALA) with 5.0% and 4.3% losses respectively. Despite the volatility, investors should remain optimistic as the cryptocurrency market is still in its early stages and has the potential to generate significant returns in the long run. It is important to do your research and understand the risks associated with investing in cryptocurrencies before making any decisions.
The U.S. Securities and Exchange Commission (SEC) has recently settled with crypto exchange Kraken over staking. Kraken has to pay a $30 million penalty and cease its U.S. service. However, staking continues in the United States, and liquid staking platforms are likely to benefit from this. Liquid staking issues a derivative token that represents the amount of locked tokens to users, allowing them to access DeFi services such as lending and borrowing. This means that users can still access DeFi services without having to worry about the SEC’s actions. As such, liquid staking platforms are likely to benefit from the SEC’s actions, as they provide users with a secure and reliable way to access DeFi services.
Kraken, one of the largest cryptocurrency exchanges, recently shuttered its staking service due to a lack of transparency. The SEC was concerned about fund flow, as it was unclear whether ether deposited into Kraken was intended for staking or being lent out. This lack of transparency is why the SEC didn’t go after Coinbase or make a move on decentralized liquid staking protocols. Kraken’s unique staking service was a popular choice for crypto investors, but the exchange’s failure to provide transparency has led to its closure. The SEC’s decision to shut down Kraken’s staking service serves as a reminder to other exchanges to be more transparent in their operations.
Liquid staking protocols such as Lido and Rocket Pool are a great way to stake Ether without the risk of running afoul of the SEC. These protocols allow users to track their Ether from their wallet into the pool via a block explorer or other chain monitoring tools. When the SEC announced their interest in staking, liquid staking tokens such as Lido’s LDO surged in value, and again when Kraken’s U.S. staking shop closed its doors. Liquid staking protocols offer a secure and reliable way to stake Ether without the worry of running into legal issues.
The surge in staking activity in the cryptocurrency market could be attributed to the SEC’s current “Yellow Light” stance towards staking. Staking as an investment strategy is not allowed, but staking as a technical service is. This means that companies can provide validation-as-a-service, which is a ministerial tech service, without running afoul of SEC regulations. This has opened the door for more companies to offer staking services, leading to an increase in staking activity. As more companies enter the market, staking is becoming an increasingly popular way to earn passive income from cryptocurrency investments.
Liquid staking protocols like Lido and Rocket Pool have seen little change in the total value locked since the start of the year. Lido began the year with 4.9 million ether and is now at 5.19 million ether, while Rocket Pool staked ether rose from 472,000 to 608,000. Despite the recent surge in Ethereum prices, these liquid staking protocols have not seen a corresponding increase in the total value locked. This suggests that the current market sentiment is not as bullish as the price surge might suggest.
