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Solana ETF filings disappear
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Fear grips the crypto market as Bitcoin holders face losses
Key points:
75% portion of Bitcoin has remained untouched for over six months.
Reduced Bitcoin supply available for trading could fuel price appreciation.
News - Bitcoin investors are increasingly adopting a long-term perspective, according to recent data. Blockchain analytics firm Glassnode revealed that roughly three-quarters of all circulating Bitcoin has been idle for at least six months.
This suggests that investors are treating the world’s largest cryptocurrency more as a store of value rather than a speculative asset.
Bitcoin’s supply declining - As a result of this hoarding behavior, the supply of Bitcoin available for trading has dwindled. This dynamic could potentially ignite upward pressure on prices as demand outstrips supply. However, the broader market sentiment remains cautious, with the Crypto Fear & Greed Index deeply entrenched in fear territory.
Furthermore, onchain analyst James Check highlighted that a large portion of short-term Bitcoin holders is currently underwater, having purchased their coins at higher prices. This echoes similar patterns observed in previous market downturns, raising concerns about potential panic selling and its impact on Bitcoin's price.
US to expand financial reporting to include crypto and digital assets
Key points:
US financial regulators are poised to redefine "money" to include cryptocurrencies.
The digital asset class will be subjected to stricter reporting rules.
News - The United States is intensifying its regulatory oversight of cryptocurrencies and artificial intelligence. Top financial agencies are collaborating to expand the definition of "money" under the Bank Secrecy Act to encompass digital assets, including cryptocurrencies and potential future central bank digital currencies.
What’s more? The move is designed to bring crypto transactions under the same reporting requirements as traditional financial activities.
Simultaneously, the US government is taking steps to manage its growing cryptocurrency holdings. Authorities recently transferred approximately 10,000 Bitcoin seized in the notorious Silk Road case.
Beyond the crypto space, the US Department of Justice is focusing on the rapid advancement of artificial intelligence. The DOJ is proposing new sentencing guidelines to impose stricter penalties for crimes facilitated by AI. These proposed changes go beyond traditional criminal frameworks and could cover a wider range of offenses involving algorithmic assistance.
AI-Powered crypto scams surge in Australia, regulators take action
Key points:
Australian financial regulator ASIC has removed over 600 crypto scams in the past year.
AI-generated content like deepfakes is being used to create highly convincing crypto scams.
News - Australia’s financial watchdog has issued a stark warning about the increasing sophistication of crypto scams. The Australian Securities and Investments Commission (ASIC) reported a significant crackdown on fraudulent investment platforms, phishing attempts, and cryptocurrency scams over the past year.
Role of AI in scams - However, the regulator expressed deep concern about the growing role of artificial intelligence in these criminal activities.
Deepfakes and other AI-generated content are making it increasingly difficult for consumers to distinguish between legitimate and fraudulent investment opportunities. The misuse of celebrity images and voices, particularly those of high-profile figures like Elon Musk, has become a common tactic employed by scammers.
Despite efforts to dismantle scam websites at a rate of 20 per day, Australians continue to fall victim to these schemes, with total losses exceeding $1.3 billion in 2023. ASIC urges investors to exercise extreme caution and conduct thorough research before investing.
Key points:
Solana ETF applications filed by VanEck and 21Shares have mysteriously disappeared.
This unexpected development has sparked speculation about a potential delay.
News - The crypto community is abuzz with speculation after Solana ETF applications were abruptly removed from the Chicago Board Options Exchange (Cboe) website. This unexpected move has cast doubt on the timeline for the launch of Solana-based financial instruments.
While many anticipated Solana to follow in the footsteps of Bitcoin and Ethereum, the disappearance of the applications has raised concerns about potential regulatory hurdles.
More details - Industry experts believe the SEC's classification of Solana as a commodity, rather than a security, could be the underlying cause for the removal.
Unlike the Ethereum ETF process, where the SEC initiated the 19b-4 process, no such action has been taken for Solana.
This suggests a different approach from the regulator. As a result, Solana ETF proponents may face additional challenges and delays before gaining approval.
More stories from the crypto ecosystem
Interesting facts
In February 2022, cryptocurrency exchange Wormhole lost $320 million after a cyber attack. In addition to this attack, cryptocurrency scammers have stolen more than $1 billion since 2021.
In June 2023, the crypto wallet app Atomic had its user wallet accounts emptied. Hackers stole over $100 million worth of assets from roughly 5,500 users. The primary cause behind the incident remains unclear.
Mixin Network, a Hong Kong-based crypto project, was hit with the largest crypto exploit of 2023. On 23 September, the firm had to abruptly cease operations after hackers plundered a staggering $200 million from users’ hot wallets.
Top 3 coins of the day
Binance Coin (BNB)
Key points:
BNB changed hands at $543, at press time.
It was up by 4.27% in the past week.
What you should know - BNB is currently trading sideways within a range, showing consolidation between $520 and $560. This range follows a sharp decline that saw the price drop to a support level around $430 before bouncing back. The resistance zone near $640 remains a key hurdle for bulls, and the current sideways trading suggests indecision in the market. The Awesome Oscillator (AO) indicates mixed momentum, with no clear trend direction. For traders, a breakout above the $560 resistance could signal a potential move toward the $640 resistance level. Conversely, a breakdown below $520 could lead to a retest of the $430 support level.
Tron (TRX)
Key points:
Bullish sentiment was dominant in the Tron market.
RSI was close to overbought territory, at press time.
What you should know - TRON (TRX) is displaying a classic double top formation, with resistance at approximately $0.1441. This pattern often signals a potential reversal, where the price could face downward pressure after testing this level twice. The neckline support at $0.1218 is crucial; a break below this could confirm the bearish reversal, potentially leading to a further decline. However, if TRX maintains support above the neckline and the bulls regain momentum, a retest of the $0.1441 resistance level is likely. The RSI indicator suggests that the market isn't overbought, leaving room for further upside if momentum picks up.
Litecoin (LTC)
Key points:
LTC bulls had an upper hand at the time of writing.
The short-term market structure was led by buyers.
What you should know - Litecoin (LTC) is showing signs of recovery after recent lows, forming higher lows on the daily chart, which is a positive indicator for potential bullish momentum. The near-term resistance level around $70 remains a critical hurdle that bulls must overcome to sustain the upward trend. The current price is near $66.52, and a break above the $70 resistance could trigger further gains, potentially pushing LTC toward the $75-$80 range. The RSI is hovering around 52, indicating a balanced market, not yet overbought or oversold. Additionally, the near-term support at $55 should be watched closely, as a breakdown below this level could negate the bullish setup.
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