US regulations are getting hotter; Bitcoin rises and then falls

U.S. Senators Elizabeth Warren (D-Mass.) and Roger Marshall (R-Kan.) are introducing a bill to crack down on money laundering and financing of terrorists and rogue nations via cryptocurrency.

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• If this becomes lawThe Digital Assets Anti-Money Laundering Act will introduce know-your-customer (KYC) rules for cryptocurrency participants such as wallet providers and miners, and prohibit financial institutions from transacting using digital asset mixers, which are tools designed to conceal origins resources .

• The bill would also allow the Financial Crimes Enforcement Network (FinCEN) to implement a proposed rule requiring institutions to report certain transactions involving unhosted wallets – wallets where the user has full control over the content, rather than relying on an exchange or other third party.

• Concerns about the use of cryptocurrencies to facilitate money laundering and terrorist financing are often issued by lawmakers or regulators and often used to highlight the need for more robust regulation of the digital asset industry.

Token Summary

Bitcoin (BTC): The largest cryptocurrency by market capitalization has shed recent gains and was recently trading at $17,800 after the US Federal Reserve raised interest rates by another 50 basis points at its final meeting of the year and signaled that further increases were likely in 2023. BTC was trading equally high at $18,356 just before the Fed’s announcement, above $18,000 for the first time since early November. It has increased by 0.5% in the last 24 hours. “Cryptocurrencies are losing value as the dollar rises as risk aversion returns,” Edward Moya, senior Americas analyst at Oanda, wrote in a Wednesday note.

Market capital also turned red, with the tech-heavy Nasdaq Composite closing up 0.76%. The S&P 500 Index fell 0.61% and the Dow Jones Industrial Average fell 0.42%.

Ether (ETH): The second-largest cryptocurrency by market capitalization after Bitcoin similarly followed BTC’s trajectory, falling about 1% to $1,310 at press time. Earlier in the day, PayPal and MetaMask announced that the payments company will integrate its cryptocurrency buying, selling and storage services with the MetaMask wallet, as the companies look to expand users’ options for transferring digital assets from their platforms. Users will be able to buy and transfer ETH from PayPal to MetaMask.

Maple (MPL): Blockchain-based lending platform Maple Finance unveiled a major protocol change on Wednesday in an attempt to fix shortcomings highlighted by a series of recent loan defaults. The improved version includes improvements to the payout request process, introducing the option to schedule and prorate payouts. According to price tracking site CoinGecko, Maple Finance’s native MPL token rose as much as 6.9% in the last 24 hours before falling 1.7% to $3.80

Latest prices

CoinDesk Market Index (CMI)

882.61

−1.9 ▼ 0.2%

Bitcoin (BTC)

$17,834

+73.0 ▲ 0.4%

Ethereum (ETH)

$1,311

−9.7 ▼ 0.7%

S&P 500 daily close

3995.32

−24.3 ▼ 0.6%

Gold

$1,819

+4.8 ▲ 0.3%

Yield of treasury bonds 10 years

3.5%

▲ 0.0

BTC/ETH prices according to CoinDesk indices; gold is the COMEX spot price. Daily prices approximately 4:00 PM EST

Crypto Market Analysis: Focus on Bitcoin Price Charts, Not Powell’s Fed’s Hawkish Views

By Glenn Williams Jr.

Let’s break down this week’s rise above $18,000 for the first time since November 10. Does this move make a real difference or is it just a short-term relief effort? It may be so – the very fact that we are asking this question is a sign of optimism.

Historically, given seasonality, the market does not enter a period of strong performance. From a price chart perspective, Bitcoin’s level of around $17,900 moves the asset into the “low volume node” region – which likely indicates the potential for rapid price movements.

Volume nodes can be identified as zones on a price chart using the Volume Profile Visible Range tool, showing trading activity by price point. A high volume node represents areas of significant price agreement, which often coincides with slower price movement.

However, nodes with low volume represent areas of low activity. Prices tend to move quickly through these areas until they reach the next area of ​​agreement. An illustration of this can be seen in the 14% drop that occurred on November 9th. Bitcoin has now entered the same space, but this time on the upside.

Read the full technical version here.

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