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Crypto's political power play
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Bitcoin faces mixed sentiment amid short-term weakness and ETF inflows
Key points:
Bitcoin experienced a short-term price increase but remains below its September opening.
Bitcoin ETFs saw positive inflows for the first time in over a week.
News - Bitcoin's price experienced a modest surge on 10 September, climbing approximately 3% in the past 24 hours. However, despite this short-term upward movement, the cryptocurrency remains below its September opening and significantly lower than its all-time high reached in March.
Positive inflows - Bitcoin spot ETFs witnessed a resurgence in inflows on Monday, attracting $28.7 million. This marks the first week of positive inflows for these funds in over a week.
However, options trading on Deribit revealed a bearish bias among traders, with more put options being traded than call options. This suggests that traders remain concerned about a potential decline in crypto prices in the short term.
Some market analysts attributed this cautious sentiment to the sharp price drop last week, which has left the market wary of further downside risk.
This cautious outlook may be influenced by historical data, which indicates that recessions and risk aversion often follow the beginning of a Federal Reserve rate-cutting cycle. As the central bank is expected to reduce interest rates by 25 basis points next week, any price rallies could be temporary until the Fed meeting.
Cryptocurrencies set to influence US election as voter concerns grow
Key points:
Crypto regulation is becoming a key issue in the US presidential election.
Regulatory uncertainty is increasingly seen as a barrier to crypto investment.
News - Cryptocurrencies, notably Bitcoin, are expected to play a significant role in the upcoming US presidential election, with an increasing number of American crypto investors closely scrutinizing candidates' positions on regulation.
A new report from Gemini, the crypto exchange co-founded by the Winklevoss twins, reveals that the regulatory stance of presidential candidates is becoming a pivotal issue for voters.
Findings of the survey - Released on 10 September, Gemini's "Global State of Crypto" report includes insights from a survey of 6,000 adults across the US, UK, France, Singapore, and Turkey, conducted online between 23 May and 28 June 2024.
The findings indicate that 73% of US crypto holders consider a candidate's view on crypto regulation to influence their voting decisions. Of these, 37% said the candidate's position would have a "significant impact" on their choice.
Further, concerns about regulatory uncertainty have increased, with 38% of US respondents citing it as a barrier to crypto investment in 2024, up from 28% in 2022. Despite these regulatory concerns, there has been a slight rise in crypto ownership, with the proportion of non-crypto holders decreasing from 75% to 65% over the same period.
Tether, Tron, and TRM Labs launch new financial crime unit
Key points:
Tether, Tron, and TRM Labs have formed the T3 Financial Crime Unit.
The T3 FCU aims to combat illegal activities associated with USDT on the Tron blockchain.
News - Tether, the world's largest stablecoin issuer, has teamed up with Justin Sun's Tron network and blockchain intelligence firm TRM Labs to form a new private financial crime unit.
The T3 Financial Crime Unit (T3 FCU) aims to combat illegal activities associated with the use of USDT on the Tron blockchain.
What’s more? The collaboration combines TRM Labs' anti-financial crime expertise with Tron's technical know-how and Tether's external investigations team. The T3 FCU will focus on identifying transactions linked to terrorism, sanctions evasion, theft, and other illicit activities.
Tron's involvement in the T3 FCU is significant, given its dominance in minting USDT. With over $60 billion in Tron-based USDT circulating, the platform accounts for more than half of the total USDT supply.
The T3 FCU's formation is a positive step towards making the cryptocurrency industry safer and more secure. It also sends a clear message that illicit activities have no place in the blockchain ecosystem.
Singapore probes Worldcoin account trade for potential money laundering
Key points:
Singapore is investigating individuals involved in the illegal trade of Worldcoin accounts and tokens.
The investigation is focused on potential links to money laundering and terrorism financing.
News - Singapore's authorities are investigating a group of individuals involved in the illegal sale and purchase of Worldcoin accounts and tokens.
The Monetary Authority of Singapore (MAS) has confirmed that seven people are under investigation for offering unlicensed Worldcoin-related services. While Worldcoin itself may not be providing a payment service, the buying and selling of its accounts and tokens could fall under this category.
More details - The illegal trade in Worldcoin accounts and tokens poses a significant risk of being used for criminal activities. The MAS has raised concerns about the potential for money laundering and terrorism financing through these transactions.
Tools for Humanity, a Worldcoin contributor, has clarified that the individuals under investigation are not affiliated with the project. They emphasized that Worldcoin operates in compliance with all relevant laws and regulations.
The investigation in Singapore comes amid growing global scrutiny of Worldcoin's iris biometric data collection system. Several countries, including India, South Korea, Kenya, Germany, and Brazil, have conducted investigations into the company's data practices.
More stories from the crypto ecosystem
Interesting facts
Ethereum's name was chosen by its creator, Vitalik Buterin, as a reference to the "Ether," a hypothetical invisible medium that permeates the universe according to ancient natural philosophy.
It's estimated that around 20% of all Bitcoins mined so far are lost or inaccessible. This includes Bitcoins stored on forgotten or lost wallets, Bitcoins sent to invalid addresses, and early Bitcoins mined by Satoshi Nakamoto, which have never been spent.
In 2014, the Dogecoin community raised over $30,000 worth of DOGE in just two weeks to fund clean water projects in Kenya through the Doge4Water campaign. This initiative demonstrated the community's charitable spirit and willingness to use Dogecoin for social good.
Top 3 coins of the day
Solana (SOL)
Key points:
At press time, SOL was trading at $134.
It was up by around 3.20% over the last seven days.
What you should know - Solana has been navigating a sideways trading pattern in recent weeks, finding strong support around the $120-$130 zone. This support level is holding tight, as seen by the increased buying volume whenever SOL approaches these levels. The Bollinger Bands indicate that SOL is trading close to the lower band, suggesting a potential rebound. However, the 50-day moving average is acting as a resistance, preventing a significant upward movement. The RSI is hovering around the midline, indicating neither overbought nor oversold conditions. For a bullish continuation, SOL must break through the immediate resistance near $145. A breach above this level could trigger further buying.
Dogecoin (DOGE)
Key points:
At press time, DOGE was trading at $0.1025.
It was up by 6% over the last week.
What you should know - Dogecoin (DOGE) has been consolidating around the $0.10 mark after a sharp 35% decline from its recent high near $0.14. The RSI is hovering around 50, suggesting neutral momentum, with no strong buying or selling pressure. The recent low near $0.09 has formed a key support level, while resistance lies at $0.14. The price is currently trading sideways, indicating a lack of clear direction in the short term. A break above $0.14 could signal a bullish reversal, targeting higher resistance levels. Conversely, if the support at $0.09 fails to hold, DOGE may face further downside risk. Traders should watch for increased volume, which could confirm the next significant price movement.
Cardano (ADA)
Key points:
ADA, at the time of writing, was trading at $0.3423.
It was up by about 6.24% in the last seven days.
What you should know - Cardano has been in a sustained downtrend, struggling below key exponential moving averages (EMA) of 20, 50, 100, and 200 days. The EMA alignment continues to indicate a bearish momentum, as price consistently finds resistance near these moving averages. The MACD remains slightly below the zero line, suggesting weak buying interest. ADA is currently trading around $0.34, which serves as a minor support level, but a breach below this could lead to further downside toward $0.30. On the upside, a break above the $0.38 resistance is needed for bulls to gain control.
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