Crucial Week Ahead for Cryptocurrencies: Fed Interest Rate Decision, FOMC Meeting, and Binance Vs. SEC Hearing to Get Attention

Leonardo Perez
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Crucial Week Ahead for Cryptocurrencies: Fed Interest Rate Decision, FOMC Meeting, and Binance Vs. SEC Hearing to Get Attention

The cryptocurrency market is gearing up for a volatile week, filled with major events that have the potential to change investor sentiment and alter price trends.

From the Federal Reserve’s long-awaited interest rate decision to the Federal Open Market Committee (FOMC) meeting and the hearing of the legal battle between Binance and the US Securities and Exchange Commission (SEC), all eyes are on these crucial events next week.

Next Week’s Macro Events and Crypto Market Reaction

FOMC Meeting: Will the Fed raise interest rates again in 2023? After ten consecutive increases and a pause in June, rates rose 25 basis points in July to 5.25-5.50%. The decision depends on the US CPI data, especially core inflation. August CPI rose 3.7% year-on-year, up from 3.2% in July, while core CPI was 4.3%, up from 4.7% in July, leaving the Federal Reserve and markets in uncertainty.

When Federal Reserve Chair Jerome Powell and his team meet next week, they are unlikely to signal that they are done with interest rate increases. With inflation remaining above the 2% target and the economy robust, U.S. central bankers are expected to maintain a trend toward tighter policy during their Sept. 19-20 meeting, even if they keep rates unchanged. changes.

Last week’s CPI data failed to generate significant volatility for Bitcoin. However, the Fed’s interest rate announcements are expected to induce 1% market volatility based on recent trends. At the moment, Bitcoin is trading in the $26,000 range, comfortably above bearish levels.

Binance vs. SEC Hearing: A key event on the horizon for next week is the court hearing between Binance and the SEC. A ruling in favor of the SEC could trigger a major market sell-off, while a decision supporting Binance could trigger a buyout demand.

The US SEC recently presented evidence against Binance US, highlighting the exchange’s failure to comply with a prior consent order. Binance US responded, claiming that the SEC’s demands for an emergency order are unjustified.

Last month, the SEC filed confidential documents that caused unrest in the cryptocurrency market. They have now filed a “motion to unseal” to reveal these documents. Amid the ongoing lawsuit, several Binance and Binance US officials have left, impacting investor confidence and trading volumes.

The SEC has filed 31 exhibits to support its motion to compel and oppose Binance US’s request for a protective order. Only 10 of these 31 tests were included in the latest presentations. The SEC also asks the court to reject BAM’s request for an injunction. Judge Faruqui has set the next hearing for September 18.

Legal Developments

On September 15, the SEC moved to unseal or withdraw its previous motion to seal documents related to the Binance case. Both sides agreed to disclose numerous SEC filings from last month.

The SEC has expressed concern that Binance US (BAM Management and BAM Trading) is not properly separating its wallets, systems, and personnel from Binance. If the SEC wins the case, which is expected to extend beyond Gensler’s tenure, Binance could face heavy fines, operating restrictions, and strict oversight of its BNB token. Additionally, CZ could be permanently banned from managing financial companies.

With the SEC arguing that Binance US is putting $2.2 billion of funds allegedly based in the US at risk, these assets could be seized if they are linked to illegal activities.

By Leonardo Pérez

Ripple’s XRP Update: Could It Catapult Prices 500% Higher?

Audy Castañeda
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Ripple’s XRP Update: Could It Catapult Prices 500% Higher?

Ripple is planning a major upgrade to the XRP Ledger, introducing a native Automated Market Maker (AMM), sparking interest in the crypto community. The AMM will be seamlessly integrated into the XRP Ledger DEX ecosystem, aiming to improve returns for liquidity providers and mitigate market price risks.

Ripple, the company behind XRP, is preparing for a significant upgrade to the XRP Ledger that has caught the attention of cryptocurrency enthusiasts. This update, aimed at introducing a native automated market maker (AMM), has sparked anticipation and curiosity in the crypto community.

The upcoming XRP Ledger update promises to bring a revolutionary feature. The XRP Ledger will seamlessly integrate this non-custodial AMM into its decentralized exchange (DEX) ecosystem. Its main objective is to optimize the profitability of liquidity providers while addressing the risks associated with market price fluctuations.

The XLS-30 upgrade will introduce native AMM to the XRP Ledger, allowing digital assets to be traded within automated liquidity pools. This development aims to expand the reach of the XRP Ledger within the decentralized finance (DeFi) sector. It will provide developers with the tools necessary to serve a broader audience of DeFi stakeholders.

The introduction of the AMM has led to debates about its possible impact on the price of XRP. An important question is whether the AMM, which primarily relies on XRP holders for liquidity provision, could put downward pressure on the value of XRP. The scenario envisioned here involves AMM using XRP tokens to balance liquidity pools, which could trigger a sell-off and influence the market price of the token.

CTO Perspective: Short-Term Selling Pressure

Responding to these concerns, David Schwartz, Ripple’s chief technology officer (CTO), admitted the likelihood of short-term selling pressure. He noted that if the AMM predominantly attracts XRP holders as liquidity providers, a temporary increase in selling pressure may occur. However, he expressed reservations about the magnitude of this effect and suggested that other market dynamics could counteract it.

Schwartz went on to explain that, in theory, AMM could contribute to the reduction of price volatility. This could be achieved if AMM sells XRP during price increases and buys it during price drops. This mechanism could transform the inherent volatility of the cryptocurrency market into a source of return for liquidity providers.

Market Forces and the Future of XRP

The XRP market, like most cryptocurrencies, is subject to a complex interplay of factors that influence its price. These factors include market sentiment, trading volumes, regulatory developments, and general trends within the broader cryptocurrency landscape. While the introduction of the AMM undoubtedly represents an important step for the XRP Ledger, these multifaceted dynamics will determine its immediate and long-term impacts on the price of XRP.

Ripple Price Sees Rally Amid Market Recovery

XRP has seen a 1.10% rise in value today, in sync with the ongoing recovery of the broader cryptocurrency market. XRP price is currently challenging the crucial threshold of $0.60.

The $0.60 level has significance from both a psychological and technical perspective, making it particularly intriguing to watch XRP’s performance in this context. A successful breach of this level may set the stage for further price gains, while a rejection could pose challenges for XRP holders. In the case of the latter scenario, our recent XRP price analysis outlines two critical support levels worth monitoring.

By Audy Castaneda

Bitcoin on September 16: False Rebound for BTC?

Leonardo Perez
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Bitcoin on September 16: False Rebound for BTC?

BTC price is stuck at the $26,700 resistance level.

The price of Bitcoin is trying to break back above $27,000, but sellers remain vigilant. Bitcoin dominance shows signs of losing steam, is it finally altcoins’ turn?

Yesterday, the price tried to return above $27,000, but sellers appeared. The sellers brought the price of Bitcoin back to around $26,500. In fact, the course stalls in 24 hours:

In one week, the course shows an increase of 2.4%. However, in one month, the rate is falling by almost 8%. The BTC/ETH pair fell by almost 1% in 24 hours. In the current context, during the first 15 days of September, Bitcoin recorded a positive performance of +2%, thus raising the overall annual gain to +59.75%.

Bitcoin has maintained the price above the first support level at $25,500. It is the fourth consecutive week in which it is above that level, after the infringement that occurred in mid-August.

Bitcoin Dominance Flirts with 50%

Bitcoin dominance has increased by approximately 30% since September 2022. Since closing below 49.5% there the dynamics turned bearish on a weekly basis.

Nevertheless, the course is in the process of bouncing off the institutional bias level (EMA 9/EMA 18) bullish. There should be a dynamic with upward valleys and peaks to be able to say that the capital is heading towards BTC again. In such case, the price could return to the next resistance level at 53%.

However, if the course is repeated and it closes below the last minimum marked at 48.9%, the bearish dynamic would continue. In this case, a return to the 47.5% support level is possible, and the altcoins would be more resilient relative to Bitcoin.

On a weekly basis, the RSI bounced to the level of the uptrend line. Buyers have a chance to play, but the RSI will have to regain bullish momentum.

Short-Term Scenario for Bitcoin

In the last two days’ scenario, the price of BTC has stopped at the short-term resistance of $26,500. Said resistance level is identified using Fibonacci levels, calculated in the vector from the high of $28,193 to the recent low of $24,917.

The most relevant resistance is the one that moves at $28,280, though. The move to watch for is from $31,845 to the recent low of $24,713.

A breakout from this $28,300 zone could see the BTC price return to the $32,000 zone, from where the June distribution phase began, followed by the subsequent decline.

Bitcoin Price Stagnates Against $26,700 Resistance

Buyers tried to push back above the $27,000 level but the resistance held. In fact, the resistance at $26,700 currently blocks the course.

A fence above the latest high at $26,890 would allow the momentum to continue with rising lows and highs. In this case resistance at $26,700 could give way and the price could return to the resistance level at $27,300.

On the other hand, in case of rejection, the price could return to the support level at $26,000. The buyers’ goal is to maintain the last low, marked at $26,220. The RSI continues to move above the downtrend line.

Bitcoin’s dominance is recovering, but momentum remains fragile since it closed below 49.5%. However, caution is advised as a rejection at the resistance level could allow sellers to push the price back to $26,000. Meanwhile, Ethereum clings to $1,600.

By Leonardo Pérez

Bitcoin Dominates Ethereum in Daily Active Addresses Despite TX Count Delay

Audy Castañeda
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Bitcoin Dominates Ethereum in Daily Active Addresses Despite TX Count Delay

Artemis Terminal, in its data from September 15, notes that Bitcoin has more daily active users than Ethereum.

Ethereum might be the king of smart contracts and the world’s leading hub for decentralized finance (DeFi) and non-fungible token (NFT) activity, but on-chain data suggests Bitcoin is ahead in user engagement, interpreted by the number of daily active users, and network activity is at acceptable and healthy levels, as measured by the number of daily confirmed transactions.

Bitcoin Leads Ethereum in Daily Active Addresses

According to Artemis Terminal data from September 15, Bitcoin, despite being predominantly a transactional layer, allowing peer-to-peer (P2P) value transfer between addresses, has more daily active users than Ethereum.

This observation is even as Ethereum serves as a conduit of value, as assets can be moved, just like in Bitcoin, and a smart contract platform to deploy automated, trustless decentralized applications (DApps).

Some, like Uniswap, a decentralized exchange (DEX), process billions of transactions each month. On September 15, Bitcoin had more than 800,000 daily active addresses (DAA), more than double that of Ethereum, which stood at just over 378,000. The only time there was a slight change was on September 13, when over 1 million addresses went live on Ethereum.

Then, the number of DAAs in Bitcoin also fell to around 743,000. However, Ethereum’s DAA has fallen sharply, while Bitcoin has maintained an upward trajectory since late August. During this time, Ethereum’s DAA has been fluctuating a lot, as evidenced by the ups and downs from September 13 to today.

Ethereum Processes Over 1 Million Transactions Every Day

Ethereum shines for the number of daily transactions processed. As of September 15, the smart contract platform had processed more than 1 million transactions while Bitcoin lagged, confirming less than 600,000.

Even at that level, Ethereum has processed less than half of what it did on September 13, when the network processed more than 2.3 million transactions.

On the other hand, daily Bitcoin transactions have remained stable, while Ethereum transactions have, on average, increased over the past three months, as data from Artemis Terminal show.

Artemis Terminal DAA data and daily transaction count are important metrics that on-chain analysts use to analyze the level of engagement and health of public Blockchains.

Over the past 18 months, activity has slowed rapidly as asset prices fall in the crypto winter. Ethereum’s drop from around $5,000 in late November 2021 to as low as $1,500 in 2022 negatively affected DeFi and NFT activity.

According to DeFiLlama, the total value locked (TVL) of DeFi protocols has stabilized below $50 billion, down from $180 billion in 2021. Meanwhile, trading volume has plummeted by more than 90 %, dragging down the value of NFT-related projects, including Immutable. X and Apecoin. As an example, the APE is down 96% from the peaks.

Is Ethereum Still Attractive to Investors?

Ethereum remains attractive to institutional investors, as seen in the growing interest in spot exchange-traded funds. Furthermore, the Ethereum network plays a central role in numerous Blockchains due to its Ethereum Virtual Machine Network. As a result, Ethereum’s prospects appear largely optimistic, supported by the network’s significant valuation, liquidity, and strong trading activity.

However, the Ether price will continue its decline in the coming weeks, possibly approaching the next support level at around $1,500. Additionally, the cryptocurrency is facing significant selling pressure as death crosses form on both the weekly and daily charts between the 50-day and 200-day moving averages.

By Audy Castaneda

Bolivia: Left Parties Present Proposal to Regulate Cryptocurrencies

Leonardo Perez
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Bolivia: Left Parties Present Proposal to Regulate Cryptocurrencies

The Movement towards Socialism (MAS) and Citizen Community (CC) have presented bills that support cryptocurrencies. The initiative is also supported by several local cryptocurrency organizations. The case of Bolivia is still interesting given that it seems to be the counterpart of El Salvador in several aspects.

In Bolivia, an important debate is taking place around the legalization of cryptocurrencies. Both the Movement towards Socialism (MAS) and the Citizen Community (CC) have presented bills that support this initiative. This has led to a long discussion about the possible benefits and challenges that the measure would entail.

Currently, cryptocurrencies do not have legal recognition for legal persons and entities in Bolivia, a factor that could open the door to its use in illicit activities. The bills seek to address this legal gap by establishing a regulatory framework that includes the obligation to register people involved in cryptocurrency transactions.

Cryptocurrencies with Legal Recognition? This is What Several NGOs are Looking for in Bolivia

“The purpose of this law is to regulate cryptoassets and financial technology by establishing its guidelines, defining its characteristics and encouraging the adoption of technological innovation related to all financial activities involving the exchange of cryptoassets on virtual platforms and commerce between people, contributing to the adoption of new technologies that reduce the gaps of socioeconomic inequality,” reads article 1 of the draft “CryptoAsset and Financial Technology Regularization Law.”

In the local media Los Tiempos, Gabriel Pérez, MAS bill designer, highlights the universality of this regulation, applying to both small companies and large corporations. Furthermore, he emphasizes the importance of education, pointing out the availability of international courses related to cryptocurrencies and blockchain technology.

Furthermore, the initiative has the support of several local cryptocurrency organizations. Among them are the Bitcoin Bolivia Community, Ethereum Bolivia Community, Blockchain Association Bolivia, Startups Bolivia and Chamber Fintech Bolivia.

Possible Benefits of the Bill to Regulate Cryptocurrencies

The legalization of cryptocurrencies in Bolivia could have a significant impact on the country’s economy. On the one hand, it is expected to boost new business and benefit the government in international agreements.

In addition, it would streamline transactions for exporters, importers, the tourism sector and entrepreneurs. International examples, such as the installation of cryptocurrency ATMs and the use of these for tips in Peru, illustrate the economic potential of this technology.

Among the possibilities that a more open and dynamic crypto legislation could have are smart contracts, internet of things, telemedicine and teleworking, logistics, auditing. Applications such as electronic government and digital citizenship, real estate, video games, intellectual and industrial property are also added.

However, there are also significant challenges, among which are the prevention of illicit activities and the imposition of taxes on cryptographic transactions, considering the volatility of these digital currencies. The crypto community in Bolivia advocates for a similar approach to that of El Salvador.

Cryptocurrencies in Bolivia and El Salvador: Political Contrasts

The legalization of cryptocurrencies in Bolivia, driven mainly by left-wing parties, marks an interesting contrast in the Latin American political scene. Bolivia has had one of the most hostile legislations towards cryptocurrencies in the region.

On the other hand, in El Salvador, a completely opposite path has been taken by adopting Bitcoin as legal tender. Despite injecting great incentives into the initiative, it has encountered opposition, particularly in left-wing sectors and ideologically related social organizations.

This contrast between countries suggests that cryptocurrencies are not necessarily and inherently linked to any type of political ideology.

By Leonardo Pérez

Weekly Roundup: Key Bitcoin Highlights and Updates

Audy Castañeda
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Weekly Roundup: Key Bitcoin Highlights and Updates

These are the the latest news and updates about Bitcoin during the past week.

Mexican billionaire Ricardo Salinas Pliego spoke about the future of cryptocurrencies in his country. The researchers behind the Cambridge Bitcoin Electricity Consumption Index (CBECI) have revised their methodology. David Marcus, former CEO of PayPal and current head of Lightspark, spoke about his proposal to transform Bitcoin into a global payments network. Samson Mow, a prominent figure in the world of Bitcoin, introduced Liquid Network through the Telegram platform. Finally, F2Pool miners earn more than $500,000 for block 807,057, a rare event that was priced 481,299 times higher.

These are the five top news of the week regarding Bitcoin.

Mexican Billionaire Ricardo Salinas Pliego Revealed Why He Bets on Bitcoin

Ricardo Salinas Pliego explained his crypto investments, revealing that in his investment portfolio he has Bitcoin, MicroStrategy shares, as well as gold mining and oil companies shares.

He also claimed that he has owned Bitcoin since it cost $200, recalling that said purchase led him to carry out one of the most profitable operations when he sold it for $17,000. He explained that a “Bitcoin standard” is a bad idea, since that would go against its fundamentals, that is, it sees the cryptocurrency “superior” to fiat money.

Bitcoin Mining: Cambridge Acknowledges It Exaggerated in Measuring Consumption

The researchers behind the Cambridge Bitcoin Electricity Consumption Index (CBECI) have revised their methodology to improve the accuracy and reliability of the Index’s estimates for the first time since its creation in July 2019.

The CBECI was launched to provide reliable, data-driven insights to questions about the energy-intensive nature of Bitcoin mining and the associated environmental impact.

In 2023, Cambridge estimates that the Bitcoin network has consumed 70.4 TWh of energy so far. Now, experts say that there is still room for improvement, but that the new Cambridge model is a great advance.

Former PayPal President Hopes to Turn Bitcoin into a “Global Payment Network”

On the CNBC television program Squawk Box, David Marcus, former CEO of PayPal and current head of Lightspark, pointed out that he wants to transform Bitcoin into a global payments network hand in hand with the Lightning Network.

Specifically, Marcus explained that global payments should be as simple as asking for a person’s email or phone number and being able to use that information to send fast, secure global payments.

Samson Mow Reveals the Essence of Liquid Network in the Bitcoin Landscape

Samson Mow, a prominent figure in the world of Bitcoin, has shared information about Liquid Network in a recent video on Telegram.

Acting as a Bitcoin sidechain, the Liquid Network complements the Bitcoin Blockchain and fees are paid with BTC. This approach highlights the importance of user-centric innovation and transparency in cryptocurrencies.

F2Pool Miners Earn More Than $500,000 for a Bitcoin Block

On September 10, 2023, Paxos made a Bitcoin transaction that became famous overnight for its disproportionately large network fee. The transaction involved just 0.07 BTC, roughly valued at less than $2,000 at the time, but had a staggering fee of almost 20 BTC, which translates to over $515,000.

Initially, speculative eyes turned to PayPal, largely due to the identified behavior of the wallet involved. However, Paxos clarified things on September 13 with a statement. Meanwhile, F2Pool, a prominent Bitcoin mining pool, has opted to return the inadvertently overpaid network fee of 19.82108632 BTC to Paxos.

By Audy Castaneda

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