Bitcoin and Ether Face Dip as Consensys Sues SEC: CNBC Crypto World Recap 📉
Today Bitcoin continues to stall at the $63,000 level as the crypto firm Consensys sues the SEC over Ethereum regulation. An investment strategist, Lyn Alden, weighs in on how cryptocurrencies stack up against Wall Street’s performance as macroeconomic pressures weigh on investors.
Market Overview 📉
Cryptocurrency markets are facing pressure as we head towards the weekend. By noon Eastern time, Bitcoin was down by less than 1% at the $63,000 level, while Ether edged lower by 1.3% to trade at about $3,100. Solana fell 3.5% to $142. These losses have pushed Bitcoin lower for the week, adding to its monthly slide of about 10%. Ether is slightly higher for the week but still about 15% off its recent highs and pacing for a monthly decline.
- Bitcoin: Down by less than 1% at $63,000 level
- Ether: Edged lower by 1.3% to trade at about $3,100
- Solana: Fell 3.5% to $142
Consensys Sues SEC Over Ethereum Regulation 📝
Consensys, a major backer of the Ethereum blockchain, has filed a lawsuit against the SEC to “defend the Ethereum ecosystem.” The crypto firm claims that the SEC is seeking to regulate ETH as a security, even though it lacks the attributes of a security. The lawsuit also claims that the SEC has wavered on Ethereum’s classification as a security. Consensys received a Wells notice from the SEC earlier this month, stating the agency’s intent to bring enforcement action against Consensys for allegedly violating Federal Securities laws through its Metamask swaps and staking products.
- Lawsuit Details: Defending the Ethereum ecosystem against SEC regulation
- SEC Notice: Wells notice issued to Consensys for alleged violations
Stripe Brings Back Crypto Payments 💳
Stripe, a payment processing company, announced that it will start supporting Global stable coin payments this summer, allowing users to accept stable coins for online transactions. The transactions will settle instantly on-chain and automatically convert to Dollars. Stripe is starting with USDC stable coins, with payments available on Solana, Ethereum, and Polygon blockchains.
- Global Stable Coin Payments: Set to start this summer
- Acceptance: On Solana, Ethereum, and Polygon blockchains
European Parliament Adopts New Rules Against Money Laundering 💶
The European Parliament has adopted new rules aimed at targeting money laundering, including provisions for direct access to national registries of financial institutions. Crypto asset managers will be required to conduct enhanced due diligence and report suspicious activities to financial intelligence units. A new agency, The Authority for Anti-Money Laundering and Countering the Financing of Terrorism, will be established to oversee these regulations.
- New Rules: Targeting money laundering with enhanced due diligence
- Agency Establishment: The Authority for Anti-Money Laundering
Insights From Lyn Alden 🧠
Lyn Alden, founder of Lyn Alden Investment Strategy and board director of Swan Bitcoin, shares insights on Bitcoin’s performance amidst macroeconomic pressures. She discusses what could potentially drive Bitcoin’s next rally and how it is influenced by global liquidity and economic factors.
- Bitcoin Trading Range: Natural cooling off after rapid price increase
- Market Headwinds: Dollar Index strength and liquidity impact Bitcoin
Correlations and Performance 🔄
Lyn Alden delves into correlations between Bitcoin, stocks, and gold, highlighting how Bitcoin can behave like both asset classes. She emphasizes the importance of absolute returns and global liquidity for Bitcoin’s long-term performance.
- Correlation Insights: Bitcoin as a global asset influenced by various factors
- Absolute Returns: Focus on best-performing assets for portfolio growth
Hot Take: Conclusion and Outlook 📊
Bitcoin and Ether are facing a dip at the end of the week, with Consensys suing the SEC adding to the regulatory landscape. Despite market pressures, understanding global liquidity and economic factors is key to navigating the crypto landscape effectively. Stay tuned for more updates and insights in the world of cryptocurrencies.
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