U.S. Congressman Matt Gaetz has introduced a bill to allow federal income taxes to be paid with bitcoin. Inspired by El Salvador’s success with the cryptocurrency, the lawmaker believes this move will modernize the U.S. tax system, promote innovation, and maintain America’s technological leadership. Lawmaker Proposes Bill to Allow Federal Income Taxes to Be Paid […]
Bitcoin News
UNI Price Soars 20% As Uniswap Labs Pushes Back Against SEC’s Wells Notice
Uniswap Labs, the creator of one of the largest decentralized trading platforms, is challenging a potential enforcement action by the US Securities and Exchange Commission (SEC), arguing that crypto tokens should not be classified as securities.
The New York-based firm recently refuted the allegation that it operated as an unregistered exchange and broker-dealer. This response follows the SEC’s issuance of a Wells Notice to Uniswap Labs, signaling its intent to recommend legal action against the company.
Uniswap Labs Challenges SEC’s Claims
In a 40-page filing submitted to the SEC, Uniswap Labs outlined numerous reasons why the agency’s pursuit of legal action should be reconsidered. The SEC’s claims are primarily based on the assumption that all tokens are securities, a premise that Uniswap Labs disputes.
Marvin Ammori, Chief Legal Officer of Uniswap Labs, emphasized that tokens are merely a file format for value and not inherently securities. He criticized the SEC’s attempt to redefine the terms “exchange,” “broker,” and “investment contract” to encompass Uniswap’s operations.
This year, the SEC has taken action against numerous crypto firms through Wells notices, lawsuits, or settlements.
The commission’s scrutiny has increasingly focused on Ethereum and decentralized finance players, including Uniswap, ShapeShift, TradeStation, and Consensys. Additionally, reports suggest that the Ethereum Foundation is under investigation.
Distinction Between Tokens And Securities
Uniswap Labs believes that the SEC’s case against them is flawed. It fails to recognize the distinction between tokens as files for value and tokens as securities.
If the SEC proceeds with a lawsuit accusing Uniswap Labs of operating as an unregistered exchange, it risks facing adverse consequences regarding its authority over crypto tokens.
Uniswap Labs warned that such litigation could set a precedent undermining the SEC’s ongoing rulemaking efforts. The company expressed its willingness to litigate if necessary and expressed confidence in a favorable outcome, stating:
But we’re prepared to fight. Our lawyers are 2-0 in high-profile SEC cases. Andrew Ceresney, a former head of enforcement at the SEC, represented Ripple in their victory over the SEC. Don Verrilli, a former U.S. solicitor general, has argued more than 50 cases before the U.S. Supreme Court and represented Grayscale in its successful case against the SEC.
SEC Chairman Gary Gensler has consistently maintained that decentralized exchanges are not genuinely decentralized and should fall under the regulator’s purview.
Gensler has also argued that many digital assets qualify as unregistered securities subject to SEC regulations. Uniswap Labs, in its response, contended that its governance token, UNI, does not meet the requirements of the Howey Test, a legal framework used to evaluate investment contracts.
The company also disputed the SEC’s classification of LP tokens, which are used as securities for liquidity provision in Uniswap pools. Uniswap Labs asserted that LP tokens are accounting tools rather than investment instruments.
Uniswap’s native token UNI has seen significant gains of nearly 20% in the last 24 hours alone, as the market rebounded from a two-month consolidation period to trade at .34.
Featured image from Shutterstock, chart from TradingView.com
Accidental Bitcoin Transfer Pushes Satoshi Nakamoto’s Genesis Wallet Over 100 BTC
Based on the latest data, the well-known Genesis address owned by Satoshi Nakamoto now holds over 100 BTC after someone inadvertently sent 0.10754671 BTC, valued at ,211, to the wallet. The current value of the wallet, which has never been spent, is estimated at .75 million. Another Unintentional Bitcoin Transaction Pushes up the Value of […]
Bitcoin News
Bitcoin Slump Pushes New Whales Underwater: A Rare Opportunity To Buy?
As Bitcoin slumps, on-chain data by Ki Young Ju, the founder of the blockchain analytics platform CryptoQuant, paints a stark picture: all new whales, including holders of spot exchange-traded funds (ETFs), are now underwater.
New Whales And Spot ETF Investors Are In Red
Taking to X, Ju said that more losses would be incoming, predicting that HODLers will find “max pain” at around ,000. The dip is less than ,000 from spot rates, suggesting that although there are cracks, the correction might not be deep.
This overview is welcomed, considering the recent sell-off. Even so, predicting price bottoms in a fast-moving market influenced by multiple forces is tough.
As price action stands, Ju says believers may take the opportunity to double down on the coin. The founder adds that the current price discount presents an opportunity for savvy investors to outperform traditional finance whales, including institutions with BTC exposure via spot ETFs in the United States.
Bitcoin is under immense liquidation pressure at the time of this writing. Though bulls soaked up the sell-off earlier today, the coin remains within a bearish breakout. Prices are trading below the support zone of between ,000 and ,000 and below April 2024.
Inflow To Spot Bitcoin ETFs Decline As Sentiment Deteriorate
This formation suggests that though bulls are optimistic, the path of least resistance remains southwards for now. BTC dropped after posting impressive returns from October 2023 to March 2024, when prices peaked. Some analysts think the current cool-off is inevitable following sharp gains in the last six months.
The fact that whales are underwater was unexpected, considering the state of affairs in the last week of April. Then, the inflow from new whales nearly doubled the cumulative holdings of older whales. Analysts said this influx of fresh capital pointed to growing institutional interest.
However, looking at the current price action, new whales are now in the red territory, and their excitement seems to wane.
According to Lookonchain data, inflow into the eight-spot Bitcoin ETFs, including BlackRock, has stalled. On May 1, all issuers, including Grayscale via GBTC, decreased by 1,950 BTC. Of note is that BlackRock’s IBIT has not seen inflows for five straight days.
Still, confidence abounds. Inflows into spot Bitcoin ETFs are highly influenced by sentiment, which rests on how prices perform. If BTC shakes off the current weakness and tears higher in the expected post-Halving rally, spot ETF issuers will begin receiving new inflows.
Bitcoin Pushes Past $71,000 to Make a New All-Time High
Bitcoin’s price has reached a new all-time high, surpassing the ,000 mark with the rally still in progress. Over a period of six days, the world’s leading cryptocurrency has seen a more than 40% increase in value, bringing it close to surpassing the ,000 threshold. The milestone comes approximately 39 days before the anticipated Bitcoin […]
Bitcoin News
Chainlink Takes Over Dogecoin In Key Metric As Mysterious Whale Pushes LINK Upwards
Chainlink (LINK) is now experiencing three weeks of robust positive price activity, putting it well ahead of the overall cryptocurrency market. LINK’s price has skyrocketed over 48% since January 25, surpassing on February 11 for the first time since February 2022.
Amidst this price surge, which saw the cryptocurrency moving closer to Dogecoin in market cap rankings, on-chain data has revealed a consistent whale accumulation. One whale, in particular, has accumulated .6 million worth of LINK in the past five days.
Chainlink Overtakes Dogecoin In Market Cap
Chainlink’s price movement this year has been surprising, and current price action shows no intention of slowing down anytime soon. LINK, the decentralized oracle network’s token, recently overtook Dogecoin to become the 10th largest cryptocurrency by market capitalization.
At the time of writing, LINK’s market cap is .85 billion compared to DOGE’s .46 billion. The recent surge in LINK’s price and market cap seems driven by whales and investors accumulating the token.
According to data from IntoTheBlock, LINK whale transactions greater than 0,000 totaled more than .29 billion in the past seven days.
Notably, total exchange outflows in the same period have far outweighed inflows, indicating the current holding sentiment from LINK traders.
IntoTheBlock’s exchange metric shows that 2.6 million worth of LINK was withdrawn from exchanges in the past seven days, compared to an inflow of 4.89 million.
One whale has been scooping up massive amounts of LINK from crypto exchange Binance in the past seven days. Blockchain data analysis platform Lookonchain has revealed that 4,556,684 LINK (.6 million) have been withdrawn from the exchange within the past five days and placed in 55 new wallets.
Although the outflow has gone into multiple wallets, the pattern of withdrawals suggests that one entity is carrying out the accumulation.
What’s Next For LINK?
At the time of writing, Chainlink is trading at .21. Although still up by 9% and 36.13% in the past seven and 30 days, respectively, the price surge seems to be slowing down, and the crypto has since corrected 2% from a yearly high of .63 in the past 24 hours.
On the broader end, the crypto market seems to be catching up in gains, as most cryptocurrencies witnessed inflows led by Bitcoin last week. Dogecoin wasn’t excluded from this inflow, with its price spiking 7.3% from 0.0776 to 0.08327. Dogecoin is currently trading at .08046.
LINK’s market cap currently stands above DOGE by 0 million. An increase in LINK accumulation by traders could continue to widen the difference between the assets.
Chart from Tradingview
BRICS Meeting: Iran Pushes for Common Currency — China, Russia Prioritize Settlements in Local Currencies
The first BRICS sherpa meeting with 10 member states has kicked off in Russia with representatives from Brazil, Russia, India, China, South Africa, Saudi Arabia, the United Arab Emirates, Iran, Egypt, and Ethiopia. China, Russia, and Iran are all advocating for the use of national currencies in trade settlements. Iran’s sherpa also expressed hope that a common BRICS currency will soon be operational.
BRICS Meeting With 10 Member States
The first BRICS sherpa meeting for 2024 under the chairmanship of Russia commenced on Tuesday in Moscow, with participation from 10 member states for the first time. In addition to, Brazil, Russia, India, China, and South Africa, the economic bloc is joined by five new nations: Saudi Arabia, the United Arab Emirates, Iran, Egypt, and Ethiopia.
Iran’s sherpa and deputy foreign minister for economic diplomacy, Mehdi Safari, said at the meeting:
In the plans of 2024, I hope that these economic and financial pillars, especially banking and financial issues, payment systems, digital currency, common currency, exchanges with national currencies, etc., will speed up and become operational.
He also stressed the importance of strengthening the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA), noting: “I emphasize once again that we in Iran have plans, and will implement the necessary plans, for active and innovative participation in this year’s program.”
Last year, there were reports that the BRICS economic bloc was planning to create a common currency. However, at the group’s leaders summit in August last year in Johannesburg, South Africa, the BRICS nations pushed for the use of national currencies to reduce reliance on the U.S. dollar, instead of discussing a common currency.
Russia’s Deputy Foreign Minister Sergey Ryabkov said at the BRICS sherpa meeting on Tuesday: “In line with the decision of the BRICS leaders in Johannesburg, we will explore ways to make greater use of national and local currencies and payment instruments in our cross-border transactions in order to reduce the negative side effects of the current global economic system.”
China’s BRICS sherpa and vice minister of foreign affairs, Ma Zhaoxu, similarly stated:
We should implement the leaders’ instructions, promote financial corporation as a strategic priority, expand settlements in local currencies, and strengthen linkage between payment systems.
Moreover, he revealed: “China is considering [the] possibility of launching a BRICS AI development and cooperation center in China.”
Do you think the BRICS nations will create a common currency this year? Let us know in the comments section below.
China Pushes Metaverse Standardization Group to Establish the Rules of the Yuanverse
The government of China has announced the creation of a metaverse standardization working group to establish different rules to govern the Chinese Yuanverse platform. The standardization group will be integrated by Chinese universities, government institutions, and companies like Tencent, Huawei, Baidu, Netease, and Sense Time.
China Announces Metaverse Standardization Group
The Chinese government aims to create standards for metaverse platforms. In a circular released on January 19, the Ministry of Industry and Information Technology of China (MIIT) communicated the formation of the Metaverse Standardization Working Group, which will aim to establish rules for the organization of metaverse platforms and the development of the Yuanverse, a national metaverse platform.
The standardization group will be integrated by several entities including Chinese universities, and companies like Huawei, Tencent, Baidu, Netease, and Sense Time. The proposal, which is based “on the needs of industrial development and industry management,” will receive feedback for the publicity plan of the group by February 18.
MIIT’s standardization proposal comes on the heels of the announcement of a new Web3 strategy for the country, that gives faith in the continued development of the blockchain and metaverse field as topics of exploration, studying the possible use cases of these techs.
While according to experts, the metaverse hype has subsided in favor of artificial intelligence (AI), another nascent technology, China seems focused on becoming a leader in this area. In September, four ministries and the MIIT issued a three-year plan to boost the development and growth of metaverse initiatives in the country.
The plan expects breakthroughs to be reached by 2025 in different applications, including metaverse technology, industry, and use cases.
Experts expect this investment to boost the development of the metaverse industry in China, as reports predict that these movements will position the nation as a global metaverse hub, outpacing the developments in the West.
What do you think about China’s metaverse standardization group? Tell us in the comments section below.
Bloodbath For Bitcoin: Grayscale’s $529 Million BTC Move To Coinbase Pushes Price Below $41,000
Bitcoin (BTC), the largest cryptocurrency in the market, has experienced a sharp drop below the ,000 mark as exchange-traded funds (ETFs) for Bitcoin went live on January 12.
The subsequent profit-taking, selling pressure, and outflows from Grayscale’s Bitcoin Trust ETF (GBTC) played a significant role in the downward trend.
Grayscale’s Bitcoin Transfers To Coinbase Intensify
On Tuesday, NewsBTC reported that six days ago, Grayscale initiated the first batch of BTC outflows from their holdings to a Coinbase, totaling 4,000 BTC (approximately 3 million) over six days.
However, the asset manager resumed outflows from the Trust to the exchange on Tuesday, sending an additional 11,700 BTC (equivalent to 1.4 million) to Coinbase.
Furthermore, on Friday, data from Arkham Intelligence revealed that 12,865 BTC (9 million) were transferred from the Grayscale Trust address to Coinbase Prime.
In total, the Grayscale Trust address has transferred 54,343 BTC (.313 billion) to Coinbase Prime during the opening hours of the US stock market over five consecutive trading days since January 12, which has undoubtedly contributed to the downtrend in Bitcoin’s price.
Selling Frenzy Among BTC Miners
In addition to Grayscale’s selling spree, there has been increased selling activity by Bitcoin miners ahead of the upcoming Bitcoin halving.
Crypto analyst Ali Martinez highlights that on-chain data from CryptoQuant indicates a substantial increase in selling activity by BTC miners. In the past 24 hours, miners offloaded nearly 10,600 BTC, with a value of approximately 5.8 million.
The persistent selling pressure has caused BTC to trade at ,900, reflecting a slight 0.2% decrease over the past 24 hours.
The downtrend has been evident across various time frames, with declines of 5%, 6%, and 7% over the seven, fourteen, and thirty-day periods, respectively. However, despite these recent setbacks, Bitcoin remains remarkably positive year-to-date, with an impressive 98% gain.
Overall, the combined impact of Grayscale’s Bitcoin Trust ETF outflows and increased selling activity by miners has intensified the downward pressure on Bitcoin’s price, breaching the critical support level of ,000.
The focus now turns to how Bitcoin bulls will defend the crucial ,000 support level, which stands as the last line of defense before a potential dip toward the ,700 mark.
Should this support level fail to hold, the Bitcoin market could witness further price declines, potentially pushing the price down to the ,800 mark. However, with the Bitcoin halving scheduled for April, bullish investors are hopeful that this event will catalyze a significant bull run.
Featured image from Shutterstock, chart from TradingView.com
Bitcoin Pushes Into Extreme Greed, What You Should Expect From Here
The Bitcoin positive sentiment has been rising rather rapidly in the last few months as the market has staged an incredible recovery. This saw the Bitcoin Fear & Greed Index go from deep fear to deep greed and that greed just continued to grow. Now, the sentiment is on the brink of extreme greed, which can be good in the short term, but could inherently turn bearish for the price.
How The Fear & Greed Index Works
The Bitcoin Fear & Greed Index uses a number scale of 1-100 to identify how investors are feeling toward the crypto market at any given time. This index uses a number of different indicators to come up with a number which ranges from social media posts to market volatility and momentum, among others.
The scale is then divided into five distinct categories depending on how investors are feeling and the number that the index is on. 1-25 is considered to be extreme fear and is a time when crypto investors tend to stay away from the market due to price drops. However, this has often proven to be the best time to buy cryptocurrencies.
Next is the 26-46 range which is known as the fear territory. It is one step ahead of extreme fear but is also a time when investors are not as wary despite the rampant fear. It is also a good time to buy and precede the next stage, which is neutral.
Neutral is the region between 47-52 and signifies a time when investors are unsure of this market. Mainly, investors refrain from making any moves during this time, waiting for the market to swing either up or down before deciding their next move.
One step above this is the greed level starting at 53 and ending at 75. At this time, investors are returning to the market and prices are recovering rapidly. This often ends up in extreme greed between 76 and 100, where major decisions are being made.
Bitcoin Sentiment Rests At 72
The Fear & Greed Index is currently at 72, treacherously close to slipping into the extreme greed territory which could have massive implications for the price. Now, looking back at times when the index’s score has gone this high, it paints a picture of bullishness followed by bearishness.
An example of this is in December 2020 when the index rose into the extreme greed territory. It would continue to rise as investors trooped into the market, eventually topping out at 91. Then what followed was a crash that sent investors spiraling. The same thing happened between October and November 2021 where the score reached extreme greed before crashing.
Given how the Bitcoin price has performed whenever the score was this high, it stands to reason that extreme greed can often act as a top signal. So the index going into the 76-100 region can often signify that it is time to exit the market.
If this trend does repeat, then the Bitcoin price could run further and mount more recovery. However, it is headed toward a market crash that could trap bulls who have not timed their exit correctly.