Good morning Here’s what happens:
Prices: Bitcoin remains in the red as Asian markets open and investors ponder US debt ceiling issues and other uncertainties.
Insights: In an interview with CoinDesk, the CEO of market maker Flowdesk sees opportunities in the US
As the Asian trading day kicked off, investors continued to ponder the recent macroeconomic uncertainties that have plagued digital assets for more than 12 days.
Bitcoin last traded at $26,362, down about 3.1% over the past 24 hours. The largest cryptocurrency by market cap traded in a tight range before falling below its recent support of $26,500 early Wednesday. Markets have been rocked by an ongoing debt ceiling standoff, as well as inflation and crypto regulation concerns. Minutes from the US Federal Open Market Committee, which show that US central bankers have differing views on further rate hikes, did little or nothing to calm markets — cryptocurrencies or otherwise.
“Bitcoin remains range-bound and should continue to consolidate near the lower limits of its downside trading range, with $25,000 providing massive support,” Edward Moya, senior market analyst at forex market maker Oanda, wrote in an e-mail. Mail.
Ether recently changed hands around $1,800, down 2.8% from the same time Tuesday. Other major cryptos were mostly in the red, with popular memecoins DOGE and SHIB recently falling about 3% and 4%, respectively. The CoinDesk Market Index, a measure of how crypto markets are performing, fell 3%.
Moya wrote that “Bitcoin is under pressure as US default risk rises” and the US Federal Reserve faces the prospect of continuing monetary tightening.
“Bitcoin will be very sensitive to rising government bond yields as too many crypto/blockchain companies will struggle to get funding,” he wrote. “It’s hard enough to find a bank that deals in crypto, let alone borrow for long-term projects.”
Market maker Flowdesk aims for US expansion
It’s difficult to find someone bullish on the US crypto market. Some of the biggest names in the industry are bearish, citing a lack of regulatory clarity, such as Coinbase CEO Brian Armstrong.
Coinbase has threatened to go overseas unless there is some clarity on regulation soon. And this opinion is shared by many – many crypto venture capitalists prefer to invest in places like Singapore.
But Guilhem Chaumont, CEO of market maker and liquidity provider Flowdesk, sees things differently.
In an interview with CoinDesk, Chaumont says he sees the U.S. as a key hub for the crypto market and believes his company can thrive there because of its commitment to compliance and regulatory requirements — as onerous and unclear as they are — from day one like.
Chaumont told CoinDesk that his company just opened a New York office that it plans to expand.
He argues that the complexity and size of US capital markets makes it a worthwhile compromise to having to contend with their regulatory regime.
He said that there is an inevitable convergence of crypto and traditional finance (TradFi) regulations, which he sees positively. He also points to the potential of a talent bridge between sectors.
“Crypto will not be possible without regulation. And if that means regulation has to be at TradFi levels, we’re on this side because we’d rather have that than have no regulation at all,” he said.
“The convergence of these two regulatory frameworks is a positive sign for us. Because doing so will allow a huge talent bridge to enter the crypto space,” Chaumont said.
In an ideal world, says Chaumont, there would be targeted regulation for crypto, but sometimes a compromise is necessary. After all, the future of crypto trading is about more and more regulated assets.
“There was a hope, which I shared, that we could reinvent everything from scratch and use the best of both worlds to develop new regulation that is simpler than TradFi and lacks its costly complexities,” said he. “We are seeing that hope slowly fading and crypto regulation basically converging with TradFi.”
Which isn’t a bad thing for Flowdesk.
After close scrutiny from the crypto community, hardware wallet provider Ledger said it will delay the release of a key recovery feature. Ledger CEO and Chairman Pascal Gauthier came to First Mover to discuss why the company won’t roll out the new feature before the code for it is released. Separately, Aaron Kaplan, founder and co-CEO of Prometheum Inc., discussed with the US regulator the SEC-friendly crypto path the company has found. And Glen Goodman, author of The Crypto Trader, shared his market analysis as Bitcoin (BTC) is on track to post its first losing month of 2023.
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