5 February

Technical indicators point to additional price gains for bitcoin if buyers are able to maintain support above $37,000 over the weekend. Further, a decisive move above $40,000 could signal the start of a recovery phase. Some analysts expect crypto buyers to return, similar to what occurred after the July 2020 price bottom at $28,000 BTC.

Friday’s crypto rally forced many short sellers to liquidate positions.

Much of the momentum is likely due to $160 million of combined short liquidations for BTC and ETH over the past 24 hours.”

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“The U.S. Securities and Exchange Commission (SEC) has expressed concerns about how Grayscale will head off share manipulation, fraud and other possible issues in its proposal to convert its Grayscale Bitcoin Trust (GBTC) into a bitcoin spot exchange-traded fund (ETF). The regulator also flagged its concerns about the liquidity and transparency of bitcoin markets, as well as the “suitability” of bitcoin as the underlying asset for the fund.

The SEC has asked the public to comment on these issues, and given them 21 days to do so, with an additional 14 days for responses to those comments. Earlier this week, the SEC requested investment manager Bitwise to respond to similar concerns about its own spot bitcoin ETF proposal.”

On-chain data shows that on Thursday, Sun’s wallet borrowed 99,000 COMP tokens worth over $13 million and later sent 102,000 tokens to Binance. On Friday, an address that received $9 million worth of COMP tokens from Binance proposed adding TUSD as a collateral asset on Compound, which would allow Compound users to take out loans against their TUSD holdings.

The pattern is reminiscent of a similar vote that took place in stablecoin issuer MakerDAO’s governance in January. Creating a stability module would allow users to swap TUSD for MakerDAO’s DAI stablecoin at a fixed rate. In the poll, the community voted the proposal down before it could move to formal voting.

Justin borrowed a large amount of MKR from Aave. Presumably this was to vote on a poll to create a TUSD-DAI Peg Stability Module. After it was noticed, he returned the MKR before voting.”

“The 40-page report, published in accordance with the Anti-Money Laundering Act of 2020, found there is some evidence to suggest high-value art is involved in money laundering, but likely not in any terrorist financing. However, the document did suggest NFTs could be used to facilitate more illicit transactions in the art market.

The emerging digital art market, such as the use of non-fungible tokens (NFT), may present new risks, depending on the structure and market incentives.

Platforms might be considered virtual asset service providers (VASP) by the Financial Action Task Force (FATF) and therefore be subject to existing know-your-customer (KYC) and anti-money laundering (AML) laws.

The report recommended that the Treasury Department weigh the costs and benefits of applying anti-money laundering and counter-terrorist financing rules to art market participants, including possible customer identification and suspicious activity report rules.”

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“The price of one ZPG will equal the value of one gram of gold and will be guaranteed by Sumitomo Mitsui Banking Corp., Nikkei wrote. The coin will run on a private blockchain.

Mitsui plans to also use ZPG as a payments tool, used at the trading house’s affiliated retailers through a smartphone app and other digital payment systems, according to the report.”

Crypto TA