Altcoins now 80% adrift from ATHsIf your mom thinks Bitcoin is a risk asset, wait until you hear what she has to say about altcoins.
- Around half of the top 30 altcoins are now 80% or more off their all-time highs. ADA, SOL, and DOT for example are all comfortable down more than that figure. It’s bloody out there. As Bitcoin kinda sleepwalks its way into a bear market, trading below its 100-week moving average for the first time since the covid crash of March 2020, altcoins are taking the brunt of it.
- “But, but… look how cheap everything is!” Anyone that survived the Crypto Winter of 2018 will know this isn’t necessarily how bear markets work – back then, ETH seemed an excellent buy to investors that saw it drop over 60% from ATHs to $500. What happened next? Fell a further 79% to trade at $100.
- How low can it really go? Nobody really knows, especially with all this macroeconomic stuff going on. However, given that even crypto’s “blue-chip” Bitcoin isn’t exactly doing much, it might be back to burger-flipping for some heavy altcoin holders.
Biden cracks down on crypto exchangesJoe Biden doesn’t like the sketchy implications coming out of Coinbase, and he wants to get Congress on his side.
- J-Biddy is worried about consumers’ cash, and wants to outlaw customer money and corporate funds getting lumped in the same pot. It’s now likely legislation will be coming via Congress to ensure crypto exchange finances and users’ assets do not mix n mingle – since that kind of rule is standard for non-crypto businesses.
- Coinbase let slip that customers' money would get “jammed up” if the exchange ever went bust. Basically, it said, “we really appreciate you, but we might need to sell off your tokens if we declare bankruptcy. K thanks, byeee” – unsurprisingly, the White House saw that and said nuh-uh.
- This sort of news has led crypto fans to store away their assets in private wallets instead of exchanges where they don’t have total control over tokens. After witnessing the collapse of Terra last week, many in the cryptoverse know that nothing is too big to fail, and they aren’t about to get dragged down with another blockchain.
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The regulators have their excuseA Big Scary Global Crypto Regulatory Body could be on its way, as advocates of crypto regulation cover their mouths in horror after the Terra drama.
- In a week that saw major cryptocurrency Terra fall off the face of the Earth, regulators are already pouncing on the chaos. The Chairperson of the International Organization of Securities Commissions (IOSCO) said on Thursday that a global group overseeing and writing up crypto rules is needed ASAP. Like, 2022 ASAP.
- A global group managing crypto? Is it just us or does that sound really centralized and kinda defeat the whole purpose of crypto? Well, according to IOSCO, the asset class is now one of the three 'C's' alongside covid and climate change and needs to be managed. Damn. Who knew tokens of doggies could be so harmful?
- The crypto market fought back to rise 5% on Friday morning, showing signs of a slight recovery after a 20% dump that saw over $300bn wiped off its total market cap value since the start of the week.
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On Her Majesty’s Secret BlockchainThe UK government has decided over tea and biscuits to bring in crypto legislation this year.
- The new laws will allow organizations to seize and recover crypto assets if the situation at hand demands it. This comes after Prince Charles opened the new session of parliament to listen to the British government’s plans to introduce new financial service laws that break apart from European Union policy (side note: remember Brexit?)
- Apparently, the UK wants to be a “crypto hub”. The financial arm of the gov revealed it wants to issue a state-backed NFT back in April, as well as plans to regulate stablecoins. DeFi might need that kind of attention, too – the total market capitalization of the space is down over 30% this week as crypto feels the burden of a bearish market.
- How are countries facing this “crypto” thing? While countries like El Salvador and the Central African Republic have gone as far as adopting Bitcoin as legal tender, many countries are unwilling to make decisive moves into a financial system that is yet to be properly understood. I mean, come on – does Prince Charles even stake his ADA?
Dan Marsh / Wikimedia Commons
Down, down to Goblin TownThe bears are well and truly in control as Bitcoin enters its sixth week in the red for the first time since 2014.
- The crypto market took a massive hit over the weekend as Bitcoin fell below $34k, falling beneath its 100-week moving average. The last time it slipped beneath that line was in March 2020 after the covid crash; now investors will be looking down below at the 200-week moving average, sitting around 21k.
- Did you buy the dip yet, anon? We hope not, especially if you’re in alts. Among the sea of red, ETH dropped 9.4%, ADA 12.7%, and LUNA a grim 21.6%. Bitcoin’s failure to show strength has hit alts hard – the market leader is now suffering a sixth straight week on a downward trend and investors have yet to catch the falling knife.
- The total market cap of crypto is now half what it was in November, down from the Nov 10 top of exactly $3tn. Russia’s war in Ukraine and the Fed hiking rates due to inflation have made the market very risk-off, which ain’t good for a volatile asset class like crypto. Remind us, when is the next Bitcoin halving again?
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The SEC won’t let me be…’cause Gary needs a little, controversy as the SEC expands its crypto enforcement team.
- SEC chairman Gary Gensler is adding 20 more officials to his crypto police squad. The move will increase the size of the division almost two-fold, suggesting it’s quite literally doubling down on tackling crypto. Regulatory enforcement will focus on DeFi and decentralized exchanges, stablecoins, and virtual currency offerings.
- Crypto is already very well acquainted with government scrutiny. Ripple is two years deep into a dispute that claims the crypto company sold unregistered securities, while Tether had its wrist slapped by the Commodity Futures Trading Commission (CFTC) to pay $41m for (falsely) saying its stablecoin had fully-backed reserves.
- SEC commissioner Hester Peirce didn’t seem too stoked about the decision. In a tweet, the widely-known “Crypto Mom” asked why the SEC were “leading with enforcement” when it comes to crypto, given it is “a regulatory agency” – Pierce has been a vocal opponent of regulation through enforcement in the crypto space.
Anti-rug pull laws proposedNew York says nu-uh to the wave of rug-pulls that seem to be making their way through the cryptoverse, taking the fight to state lawmakers.
- A new proposal aims to stifle developers who rug pull by setting up legal ground to prosecute those that sell more than 10% of their own token supply within five years of launch. Put forward by NY Senator Thomas, the bill also targets token and private key fraud, which is a bit trickier given the anonymity of crypto.
- Rug pulls are basically when the price of a token falls off a cliff, and they most commonly happen when developers who own large quantities of the supply dump all their holdings onto an exchange, sending the value of that token plummeting.
- Regulation is a fear-inducing word for most of the cryptoverse. Rest assured though, bc rug pulls mostly go down in the darker echelons of crypto and hit low-cap projects that make Bitcoin look like the S&P 500 – this bill is unlikely to affect Bitcoin or any established crypto projects, even if it’s passed.