Bitcoin Price: US$ 59,165.02 (-1.31%)
Ethereum Price: US$ 2,316.10 (-4.21%)
Market analyst Michaël van de Poppe predicts a significant rally in both cryptocurrencies and commodities, pointing to their current undervaluation and the potential for a prolonged bull market. He anticipates substantial upside, particularly if Bitcoin experiences a breakout following the upcoming Federal Reserve meeting. Raoul Pal also sees the potential for a Bitcoin bull rally driven by increased global liquidity from debt refinancing in major economies, noting that rising global liquidity and M2 money supply could lead to significant gains for Bitcoin and other markets. Bitcoin is showing signs of a possible three-month rally, with analysts forecasting a rise above $90,000 based on historical chart patterns despite current downward pressure. Meanwhile, Circle is optimistic about stablecoins becoming mainstream and emphasises the need for global regulatory harmonisation, particularly as it prepares to relocate its headquarters to New York. The EU’s MiCA regulation, which has been effective since June, offers comprehensive legal clarity for the digital asset market, with Circle compliant under this framework. However, MiCA 2.0 is being considered to address regulatory gaps, including those affecting NFTs and decentralised finance. The stablecoin market is growing, reaching a record $168 billion in August 2024, with new entrants like PayPal USD and Ripple USD intensifying competition, though Tether remains the largest stablecoin by market cap.
Ethereum developers are considering splitting the Pectra upgrade into two phases to expedite its implementation, with the first phase possibly launching in early 2025. This decision aims to manage risks and accelerate deployment, though some developers are concerned about the impact of a delayed split. In China, anti-money laundering laws are being revised to better address risks from emerging financial technologies, including cryptocurrencies, with new provisions designed to enhance monitoring and ensure financial institutions assess risks from novel business models. The Supreme People’s Court has expanded the definition of money laundering to include virtual assets, increasing penalties for large-scale offenses and aligning with the government’s ongoing crackdown on cryptocurrencies. In Hadsel, Norway, the closure of a local Bitcoin mine due to noise complaints has resulted in a 20% increase in electricity bills for residents and impacted the local power company’s revenue. This situation reflects a broader trend in Norway, where other towns have also faced complaints about Bitcoin mining, highlighting the debate over the impact of cryptocurrency mining on local communities.
John Deaton, a prominent pro-crypto attorney, claims that the SEC’s excessive intervention in the cryptocurrency sector has cost small investors over $15 billion. Deaton argues that the SEC’s regulatory overreach has significantly harmed retail investors and calls for accountability, especially as he prepares to challenge Senator Elizabeth Warren following his recent nomination for the US Senate. Meanwhile, Circle, the issuer of the USDC stablecoin, is relocating its global headquarters to New York City’s 1 World Trade Center in preparation for an Initial Public Offering, reflecting broader trends in cryptocurrency adoption and the anticipation of stablecoins becoming more mainstream in 2025. Tether has also made a move by hiring Jesse Spiro as its head of government affairs, a former PayPal and Chainalysis executive, to lead its policy and regulatory engagement efforts amidst ongoing scrutiny and potential regulatory developments affecting stablecoins in the US.
The SEC has softened its approach to Staff Accounting Bulletin-121 (SAB-121) by introducing exemptions that might allow banks and brokers to bypass its custody provisions, though large national banks may still face challenges. This shift follows significant pushback and political difficulties in maintaining the original regulations. Concurrently, the SEC has retracted its previous characterisation of cryptocurrencies as securities, clarifying that tokens are not inherently securities but can be under certain conditions. This clarification comes amid expanded legal actions against Binance, which now includes additional tokens as securities, and ongoing criticism of the SEC’s enforcement practices.
Source: https://cointelegraph.com
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