27 January

“A relief rally in crypto that had bitcoin trading near $39,000 was short-lived as the largest cryptocurrency by market capitalization fell back below $37,000 after the U.S. Federal Reserve released a statement Wednesday about reducing the size of its balance sheet.

Bitcoin briefly rose to nearly $39,000 right after the U.S. central bank released its statement, as the market believed the news was already “priced in.” Following the stock market, bitcoin gave up the earlier gains as investors and traders weighed Fed Chairman Jerome Powell’s comments. Powell said that he won’t rule out an interest rate hike at a future meeting and signaled that the central bank would steadily remove support for the economy in order to fight high inflation.

After hearing Fed Chair Powell talk, it became clear the risk of more rate hikes was elevated. The Fed may raise rates at every other meeting, with the balance sheet runoff starting in May or June.

But Moya added that the panic selling of cryptocurrencies may be over as a rally in alternative cryptocurrencies could be coming if bitcoin can stabilize at between $40,000 and $50,000.

On the weekly chart, the RSI is approaching oversold territory, similar to what happened last July in what was a prelude to a strong price rally. Still, momentum signals remain weak; buyers will need to make a decisive move above $40,000 to signal a recovery phase.”

See Also: Fed Keeps Interest Rates at Zero, Says Hike Appropriate ‘Soon’

“According to crypto policy advocate group Coin Center, the America COMPETES Act recently released by House members contains a provision that would be “disastrous” for crypto users from both a privacy and a due process standpoint.

The bill would give the U.S. Secretary of the Treasury ‘unchecked and unilateral power to ban exchanges and other financial institutions from engaging in cryptocurrency transactions.’ The provision, according to Brito, would essentially bypass the existing checks and balances on the Treasury Secretary’s authority in this area.

Removing restrictions from the Treasury Department’s “special measures” authority could have significant implications for individuals and companies operating in the crypto space:

[The law] would hand the Treasury Secretary unchecked discretion to forbid financial institutions (including cryptocurrency exchanges) from offering their customers access to cryptocurrency networks.”

See Also: Coin Center Report

The Diem Association, the Meta Platforms (formerly Facebook)-led group seeking to create a stablecoin, is considering the sale of the project’s assets to return money to investors. The group has been speaking with investment bankers about selling Diem’s intellectual property and helping the developers of Diem technology find new places to work.

The initiative has had a rocky journey since its unveiling in June 2019 as the Libra Association. Last November, Libra project creator David Marcus announced he was leaving Meta.”

The approval allows Gemini Galactic to operate an alternative trading system (ATS), which will facilitate the trading of “digital asset securities.”

Back in 2016 and 2017, tokenized securities and security tokens were all the rage as believers said they would trade on regulated ATS venues and revolutionize existing market infrastructure. A couple of years on, it could be argued the action has moved elsewhere. But Gemini Galactic appears to be biding its time.

The growth of the digital asset securities market and the use of blockchain for securities infrastructure will depend on further clarity from regulators and additional investment by companies such as Gemini. We are excited to be a pioneer in this space.”

See Also: FTX US Attains $8B Valuation in $400M Fundraise Including SoftBank, Temasek
See Also: SEC Scrutinizing Crypto Firms Over Interest-Paying Services: Report

“Speaking in a video conference with government ministers on Wednesday, Putin asked for “some kind of unanimous opinion” between his government and the Bank of Russia to be formed via discussions in the near future.

Crypto’s risk must be offset against the country’s “competitive advantages” when it comes to mining, Russia’s leader said. The Bank of Russia’s crypto ban call has been opposed by the country’s finance ministry on the grounds that it would undermine the industry’s technological development.”

Neven’s Law, not Moore’s, gives quantum computers about 10 more years before they could ever crack the leading crypto.

Mark Webber and his colleagues from the Ion Quantum Technology Group at the University of Sussex concluded that quantum computers need to be a million times larger than they currently are before ever cracking Bitcoin’s SHA-256 algorithm.

Webber estimates that if an attacker has a ten-minute window to crack the key, they would need a quantum computer with 1.9 billion cubits. If the key is vulnerable for 24 hours, this figure drops to 13 million qubits. The largest superconducting quantum computer on the market is IBM’s 127 qubit model.”

See Also: Engineer hacks Trezor wallet, recovers $2M in ‘lost’ crypto

Vitalik Buterin explains zkEVM