Is a ‘sharp move’ around the corner for Bitcoin and Ether?
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Good morning. Here’s what happens:
Prices: Ethereum’s Shanghai upgrade is a few days away, but this does not mean selling pressure because most staked Ether is at a loss.
Insight: In his latest Money Reimagined column, CoinDesk Chief Content Officer Michael Casey argues that the recent backlash against the crypto industry stems from the alleged misdeeds of disgraced FTX boss Sam Bankman-Fried.
Prices
CoinDesk Market Index (CMI)
1225
+11.6 1.0%
Bitcoin (BTC)
$28,383
+355.3 1.3%
Ethereum (ETH)
$1863
+8.4 0.5%
S&P 500
4,105.02
+14.6 0.4%
Gold
$2018
+6.1 0.3%
Nikkei 225
27,518.31
+45.7 0.2%
BTC/ETH prices per CoinDesk indices, as of 07:00 ET (11:00 UTC)
Is there a sharp draft on the stairs?
Good morning Asia.
Bitcoin opens the Asia trading week up 1.3% to $28,383, while Ether is up 0.5% to $1,863.
The CoinDesk Market Index, a measure of overall crypto market performance, is up approx. 1%.
“The market leader has been trading in a very tight range for the past week, barely moving much. Such consolidation, along with reducing volume, could indicate that a sharp move is around the corner,” said Joe DiPasquale, managing director of BitBull Capital, in a note to CoinDesk.
DiPasquale says a correction toward $25K would not “break the bullish structure, while a move to $30K would likely face resistance.”
“Market sentiment remains positive and we could see select altcoins perform decently if Bitcoin stays in its current range for longer,” he added.
Ether’s relatively flat performance may allay fears that the Shanghai upgrade, scheduled for mid-week, will lead to selling pressure.
As CryptoQuant points out in a research report from February, the majority of ether staking is currently at a loss. Their research shows that the average ether holder experiences an 18% loss on their holdings.
“Typically, selling pressure occurs when market participants are sitting on extreme profits, which is not the case right now for the ether at stake,” they wrote.
Biggest winners
Biggest losers
Insight
SBF, Revenge and the Future of Global Crypto Leadership
When looking at Washington policymaking, it’s worth remembering that governments, like all human organizations, are made up of, well, people—complicated creatures whose emotions often undermine their ability to make rational decisions.
Last week, I warned of a dangerous politicization trend in US crypto policy following a barrage of regulatory enforcement actions against this industry. I’m still worried about that trend, but my view is now a bit more nuanced thanks to the insight of two people with very good DC connections. They explained how emotions—particularly anger and embarrassment—played a major role in driving these political actions.
It reminded me of the importance of clear, inviolable rules of governance, whether baked into democratic institutions like the US Constitution, or forged into consensus mechanisms used by open source software communities, like those associated with blockchain protocols.
Regulation by retaliation
Among a number of “Thanks Sam” moments over the past five months, this one takes the cake. You could argue that the crackdown on Kraken, Coinbase, Paxos, Binance and others was largely driven by a desire to punish Sam Bankman-Fried, the former founder of FTX, whose astonishingly rapid collapse in November sent shockwaves through the crypto industry.
This is how one of my sources described the thinking of Biden administration officials, and of lawmakers from both political parties: “You can’t come into their house, fling that kind of money around, leave politicians with egg on their faces, and not expect to pay a huge price.” He was referring to the fact that before the FTX meltdown, politicians — mostly Democrats, but also some Republicans — had been recipients of more than $74 million in political donations from FTX and had established ties to Bankman-Fried , which had wooed progressives with its “effective altruism” pledges.(A CoinDesk survey found that one-third of Congress took money from SBF or its associates.)
Find the full story here:
Important events.
International Monetary Fund meeting
13.00 HKT/SGT (5.00 UTC): Japanese Consumer Confidence and Eco Watchers Survey (March)
20:15 (UTC): New York Fed President John C. Williams speech
CoinDesk TV
In case you missed it, here’s the latest episode of The Hash on CoinDesk TV:
US Treasury Says DeFi Threatens National Security; MacOS Mystery Over Hidden Bitcoin White Paper
“The Hash” addresses today’s hot topics: The US Treasury released its first report assessing the risks of decentralized finance (DeFi). Some crypto traders are warning about the market prospects for dog-themed Shiba Inu meme coins. India plans to rapidly scale its central bank’s digital currency testing of the digital rupee. Also, is there a secret Bitcoin maxi working at Apple?
Headings
Jump in Shiba Inu breed-themed tokens is unsustainable, crypto traders warn: Meme coins have outperformed the broader crypto markets in recent days, but some say profit-taking could reverse the rally.
Bank of England targets 30-strong digital currency team: Report Among the positions available: Digital Pound Security Architect and Digital Pound Solutions Architect.
Sushi DEX endorsement contract leveraged for $3.3 million: Developers asked users to withdraw contracts as a precaution early Sunday.
Drugs, erratic layoffs and feuding founders: Behind the Bitcoin Marketplace Paxful’s explanation: Founded in 2015, Paxful became one of the most popular places to buy bitcoin in Africa and other emerging markets, with more than 200 employees. Behind the scenes, staff took paid trips to music festivals, bosses fought, dismissals allegedly happened on a whim and the smell of cannabis permeated the office.
