Bitcoin BTC Price Market Cap Rises, But $30,000 Drop Continues

[ad_1]

Good morning. Here is what happens:

Price: As the Asian trading day begins, Bitcoin drops 4% to $27,981 and Ether drops 2.45% to $1,824

Insights: The West will always lead Crypto’s future, but the East will play a major role, claims Taipei-based Woo Network co-founder Jack Tan.

Bitcoin opens the trading day in Asia at $27,981, down 4.9% over the past 24 hours, while Ether is down 3.8% at $1,824.

Despite this slow $30,000 retreat, co-founder and CEO of research platform The Tie Joshua Frank pointed out during a recent appearance on CoinDesk All About Bitcoin TVs that there are still plenty of positive market indicators. for bitcoin.

Bitcoin’s market capitalization dominance is rising again, approaching June 2020 highs, he noted, but liquidity remains a challenge.

“I think a lot of institutions are excited about bitcoin. I think the risk aversion narrative is resonating right now. Just like it did in 2021,” he said, while explaining that a shortage of liquidity remains a challenge for the market but also leads to an overall outperformance of bitcoins.

“Bitcoin is outperforming for several reasons, including market consolidation, low trading volume and banking uncertainty, he said. “In the short term, bitcoin is more correlated to gold. However, the US regulatory environment is unenthusiastic and negative towards crypto, which contributes to low liquidity.

As the week continues, traders will look to US job postings on Tuesday and news from the Fed regarding interest rate moves on Wednesday.

By: Jack Tan, Co-Founder of Woo Network

Crypto companies may have to leave the United States due to stifling regulations.

However, Western founders and teams can continue to dominate innovation by looking to the East, where governments are embracing new technologies.

These countries and jurisdictions have passed more crypto-friendly laws and created a welcoming business environment for businesses in the digital asset space. The combination of Western companies with talent and other resources can be potentially powerful.

Regulation has become a central issue in the crypto asset space as the United States reacts to multiple debacles that have undermined confidence in crypto. The Biden administration recently changed its stance on crypto from neutral to negative through its White House Council of Economic Advisers, which said cryptoassets don’t appear to offer investors any fundamental value at this time. day.

Talent drain, capital

Major crypto players no longer look to the United States for leadership, and they have sought other jurisdictions from which to expand. For example, Ripple CEO Brad Garlinghouse said the crypto industry has already started to move outside the US, while crypto exchange giant Coinbase, whose once bullish outlook about the United States. regulation has deteriorated, could create a trading desk overseas. AndCircle opens a new office outside the United States.

It’s hard to imagine they would go to the EU, because even the G7, an intergovernmental political forum made up almost entirely of Western countries, sets tougher regulations for digital assets. A French bill, for example, stipulates that companies will have to comply with additional rules on internal controls, cybersecurity and conflicts of interest.

Regulators are more favorable to Asian financial centers. Japan recently relaxed token listing requirements. Hong Kong announced it was open to crypto businesses, Thailand said it would waive taxes on initial coin offerings (ICOs), and Dubai’s regulatory framework hopes to become a global crypto hub .

The East is also playing a bigger role in the culture of crypto innovation by driving higher crypto adoption rates. East dominates analytics firm Chainalysis in top 20 of global crypto adoption index, including Vietnam, Philippines, India, Pakistan, Nepal, Indonesia and China .

In addition, money is flowing into the region. China’s third-largest public insurance institution, Pacific Insurance Investment Management Hong Kong Branch and Waterdrop Capital, unveiled blockchain-compliant venture capital funds and POS token revenue enhancement funds, respectively. Dubai-based Cypher Capital is seeking to raise more than $100 million for a new venture capital fund aimed at “Asian tech moguls”. HashKey Capital, which is instrumental in advancing crypto in Hong Kong, closed its third blockchain funding round at $500 million with a focus on growth opportunities in emerging markets.

How could the West still dominate?

A more open regulatory environment, faster adoption of crypto, and flow of funds to the region does not necessarily translate to dominant market players in the crypto space in the East. And Western countries still have relatively stronger economies and cultivate exceptionally bright talent thanks to an ingrained culture of innovation and the strongest financial markets.

Westerners have founded the most innovative companies in the crypto space. For example, Ethereum founder Vitalik Buterin and Binance founder Changpeng Zhao were raised and educated in Canada. The founders of Coinbase, Grayscale, OpenSea, Gemini, Kraken, Uniswap, and Chainalysis are mostly from the United States and educated in the United States.

The West dominates the top 10 most innovative economies as measured by the Global Innovation Index, including Switzerland, US, Sweden, UK, Netherlands, Germany , Finland and Denmark. We would expect innovative crypto projects to continue to come from these locations.

The crypto space needs support from financial and fintech hubs, and the majority of top-ranked hubs are still Western. In the Global Financial Centers Index released last month, 14 of the top 20 financial centers are located in the West, including New York, San Francisco, London, Los Angeles, Boston and Washington DC.

The importance of a robust risk-reward framework

Having worked in finance my entire professional life, I have witnessed how innovations are born out of crises and deeply stressful situations. Innovation is often messy.

Companies and governments forget this, and often it is leaders who adopt policies that lean too heavily towards protecting the status quo by limiting risk. We have already seen innovative companies such as Kodak and IBM lose their edge as they focus more on stability and the bottom line for shareholders. Meanwhile, scrappy startups with vision, talent and nothing to lose sometimes succeed wildly provided they can operate in stimulating environments.

An East-West partnership can be a crypto model for the future.

Another major bank has been taken over by federal regulators, resulting in the second-largest bank failure in US history. Jason Brett, managing director of Key Bridge Advisors and former US regulator at the FDIC, along with Ryan Grace, head of digital assets at tastycrypto, joined “First Mover” to discuss the reaction of the crypto markets after most of the First Republic Bank’s assets and deposits will now be acquired by JPMorgan Chase. Additionally, CoinDesk’s Editor-in-Chief for Global Policy and Regulation, Nikhilesh De, shared a recap of CoinDesk’s annual Consensus Conference.

[ad_2]