This Tuesday morning in Asia, Bitcoin (BTC) touched $25,046 – its lowest level in three months, following a broader downturn in the crypto market. Ethereum (ETH) faced similar troubles, hitting its lowest point in 6 months at $1,546. This price drop, however, is accompanied by a similar drop in the fear and greed index – which places the current market in a state of ‘fear’ – hitting a score of 30. This poses an interesting opportunity for investors looking to pick up crypto at lower prices that have not been seen in months.
What to Watch Out for Today
1. PayPal Co-Founder Says Bitcoin Will Never Be A Payment Method: David Marcus, CEO of Lightspark and co-founder of PayPal, believes Bitcoin won’t be a popular payment method. Instead, he’s working on the lightning network to make Bitcoin transactions faster and more cost-effective, aiming to establish it as a universal protocol for online money transfers. Marcus emphasizes that traditional fiat currencies will still be used on the network, with lightning facilitating cross-currency transactions. Given PayPal’s foray into its own USD stablecoin, the comments shouldn’t come as a surprise – but these remarks are noteworthy given Marcus’ high profile status in finance & crypto, and analysts will be watching Bitcoin’s price in the coming days.
2. Institutions’ Falling Out with Ethereum: Institutions have been significantly divesting from Ethereum in 2023, with over $108 million worth of the cryptocurrency sold year-to-date, making it the most sold digital asset among large entities, according to CoinShares’ analysis. Ethereum is currently labeled the “least loved digital asset” for exchange-traded product (ETP) investors, surpassing the second-place holder, Tron, by over $50 million. This development follows Ethereum’s transition to an inflationary model and a decline in on-chain activity during an extended bear market. Ethereum enthusiasts may continue to buy at the lower price – but continued outflows may put further pressure on Ethereum’s price. Either way, ETH is a coin to watch in the coming months as the situation continues to develop.
3. SEC Chair Continues Anti-Crypto Crusade: SEC Chair Gary Gensler is maintaining his tough stance on cryptocurrency, comparing the industry’s non-compliance with securities laws to the 1920s era before federal securities regulations were established. Gensler’s consistent position asserts that most crypto tokens likely fall under the investment contract test, citing the Howey Test, a framework for determining securities status. He has not clearly defined how this applies to coins like Ethereum, but he previously suggested that “everything but Bitcoin” might be considered a security. These comments are certainly not surprising to those familiar with the industry – but as the chair of the SEC in the US, Gensler’s comments will have caught the attention of traders.
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