BTC holds less than $27,000 amid macro uncertainties

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Good morning. Here is what happens:

Price: Bitcoin remains in the red as Asian markets open and investors consider US debt ceiling issues and other uncertainties.

Insights: In an interview with CoinDesk, the CEO of market maker Flowdesk sees an opportunity in the United States

As the Asian trading day opened, investors continued to ponder recent macro uncertainties that have plagued digital assets for more than 12 days.

Bitcoin was recently trading at $26,362, down around 3.1% in the past 24 hours. The largest cryptocurrency by market capitalization was hovering in a tight range before plunging below its recent support of $26,500 early Wednesday. Markets have been rocked by a continued debt ceiling stalemate and inflationary and crypto regulatory concerns. Minutes from the Federal Open Market Committee showing a divergence of opinion among US central bankers on further rate hikes have done little or nothing, to appease crypto markets or otherwise.

“Bitcoin remains constrained and should continue to consolidate near the lower limits of its descending trading range, with the $25,000 level providing massive support,” wrote Edward Moya, senior market analyst for the market maker. changes Oanda, in an e-mail.

Ether recently changed hands at around $1,800, down 2.8% from the same time on Tuesday. Other major cryptos were mostly in the red, with popular memecoins DOGE and SHIB recently dropping around 3% and 4%, respectively. The CoinDesk Market Index, a measure of the performance of crypto markets, fell 3%.

Moya wrote that “bitcoin is under pressure as the risk of a US default increases,” and the US central bank faces the prospect of further monetary tightening.

“Bitcoin is going to be very sensitive to surging Treasury yields as too many crypto/blockchain companies will struggle to fund themselves,” he wrote. “Finding a bank that will deal with cryptos, let alone take out loans for long-term projects, is hard enough.”

Market Maker Flowdesk Aims for US Expansion

It’s hard to find anyone bullish on the US crypto market. Some of the most recognizable names in the industry are bearish, citing a lack of regulatory clarity, such as Coinbase CEO Brian Armstrong.

Coinbase has threatened to move overseas if regulatory clarity is not established soon. And his sentiment is shared by many crypto venture capitalists who prefer to invest in places like Singapore.

But Guilhem Chaumont, CEO of market maker and liquidity provider Flowdesk, sees things differently.

In an interview with CoinDesk, Chaumont says he views the United States as a central hub for the crypto market and believes his business can thrive there because of its commitment to compliance and such onerous regulatory requirements. unclear as they might be from day one.

Chaumont told CoinDesk that his company has just opened an office in New York, which he wants to expand.

The sophistication and size of U.S. financial markets are a valid trade-off for having to deal with its regulatory regime, he argues.

He said there is an inevitable convergence of crypto and traditional finance (TradFi) regulations, which he views positively. He also notes the potential for a talent bridge between sectors.

“Crypto won’t happen without regulation. And if that means regulation needs to be at the TradFi level, we’re on that side because we’d rather have that than not have wholesale regulation,” he said. he declares.

The convergence of these two regulatory frameworks is a positive sign for us. Because it will allow a huge bridge of talent to enter crypto,” Chaumont said.

In an ideal world, Chaumont says, there would be regulation specifically designed for crypto, but sometimes a compromise is needed. After all, the future of crypto trading involves more and more regulated assets.

There was a hope, which I shared, that we could reinvent everything from scratch and get the best of both worlds to design a new regulation that was simpler than TradFi’s and stripped of its costly complexity, he said. . What we are seeing is that hope is slowly fading and crypto regulation is essentially converging with TradFi.

Which, for Flowdesk, is not a bad thing.

Following scrutiny from the crypto community, hardware wallet provider Ledger said it will delay releasing a key recovery feature. Ledger CEO and President Pascal Gauthier joined “First Mover” to discuss why the company won’t introduce the new feature until it releases the code. Separately, Prometheum Inc. Founder and Co-CEO Aaron Kaplan discussed the SEC-compliant crypto path the company has found with the US regulator. And “The Crypto Trader” author Glen Goodman has shared his analysis of the markets as bitcoin (BTC) is on track to post its first losing month of 2023.

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