26 January

Bitcoin (BTC) could be in position for a big move higher if history is any guide. Bitcoin’s market action since July looks eerily similar to the moves witnessed from late November 2018 to early April 2019.

The leading cryptocurrency by market value has jumped nearly 40% to $23,000 this month. The rally follows a yearlong swoon that knocked 68% off the price followed by prolonged consolidation at the depths of the bear market at around $18,000 and comes as the U.S. Federal Reserve nears the tail end of its liquidity-tightening cycle that roiled risky assets, including cryptocurrencies.

[Further], the seller exhaustion seen last November and the subsequent turn higher are consistent with bitcoin’s record of bottoming out 17 months ahead of the mining reward halving and rallying in the year leading up to the event. The conditions echo those that preceded bitcoin’s bull revival in the second quarter of 2019. Then, the price surged 247% to $13,800 as the Fed’s tightening cycle peaked.

The 2019 rally coincided with a Goldilocks environment of slowing growth and inflation, which caused the Fed to take its foot off the tightening pedal.

All things considered, the path of least resistance for bitcoin appears to be on the higher side. Still, Chen prefers buying ether (ETH).

I believe the potential of ETH to outperform BTC due to the Merge has not been fully realized due to the bear market. I also believe Web3 and DeFi (decentralized finance) will continue to be the greatest source of growth and innovation in the crypto ecosystem. BTC will remain the low-beta safe-haven.”

See Also: Six on-chain metrics suggesting Bitcoin is a ‘generational buying opportunity’
See Also: Derivatives Markets Signal Continuation of Bullish Sentiment

“Decentralized autonomous organization Index Coop has released an index that offers users diversified liquid-staking assets on the Ethereum network. The Diversified Stakes ETH Index (dsETH) is designed to make it easier for users to distribute their stake across a range of platforms to earn an aggregated return and mitigate the risk of volatility, Index announced Tuesday.

The aim of dsETH is to provide users with a way of earning yield on the most prominent staking services without being completely exposed to one particular protocol. At inception, the product includes Lido’s etETH, Rocket Pool’s rETH and StakeWise’s sETH2.”

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Jeng, a Georgetown University law professor and former regulator for the U.S. Securities and Exchange Commission (SEC), said the U.S. must come up with its own rules if it wants to be the leader in crypto innovation. Getting regulatory clarity for crypto is good for the industry and may also give crypto startups the ‘ability to access banking infrastructure.’

If you want broad adoption of crypto, you need rules of the road, and the U.S. is unfortunately lagging behind.

Whoever is a first mover gets to influence the regulations of the rest of the world.

She said legislation is moving at a quicker pace in other parts of the world. For example, the European Union’s sweeping Markets in Crypto Assets (MiCA) legislation, if adopted, would give its 27 member countries more robust crypto rules. Other jurisdictions, including the U.K., Australia and Hong Kong, are developing and ‘coming out with consultations.'”

See Also: Crypto Options Exchange Deribit Plans Move to Dubai: Report
See Also: Indonesia Regulatory Switch Could See Crypto Classed as Securities, Not Commodities
See Also: White House science office calls for comments on its digital asset research agenda

“Ethereum research and development firm Flashbots pitched its MEV-Boost middleware as a “public good,” and the software is now used by a majority of the validators that run the network. But recently revealed fundraising plans have opened Flashbots to criticism that it may have exploited community goodwill in order to make a profit.

Although validators and developers aren’t required to use any middleware programs, some, like Flashbots’ MEV-Boost, have become so ubiquitous that they may as well be built into the core protocol.

Hasu, who leads strategy at Flashbots, has at times referred to its MEV-Boost middleware as a “public good,” a term used to designate infrastructure that is built to benefit the wider community. But earlier this month, The Block reported that Flashbots is looking to raise $50 million at a $1 billion valuation. The round is being led by Paradigm, a venture firm where Hasu works as a researcher.

Though it has faced criticism throughout its existence, Flashbots owes much of its growth to its community-centric marketing. But with its reported fundraising efforts, the Flashbots-as-a-public-good pitch is beginning to feel disingenuous.

While they set out to ‘mitigate’ [harmful MEV strategies] by recycling value to validators, etc., I just don’t think it addresses the core issue – that raising money for such an activity feels kind of questionable by relation.”

Financial advisors for the bankrupt cryptocurrency exchange FTX at last revealed the complete list of the company’s institutional creditors in a court filing late Wednesday. The document shows the names of the companies owed money by FTX, providing an expansive view of entities wrapped up in the exchange’s bankruptcy.

The document—organized alphabetically and well over a hundred pages long—shows just how far the impact of FTX’s collapse extends, listing tech companies from Apple to WeWork, and several media publications such as the Wall Street Journal and CoinDesk. Multiple departments of revenue from numerous states across the U.S. are included in the creditor matrix as well, from Alabama to Wyoming. The credit matrix also outlines the Bahamas Ministry of Finance as a creditor in the bankruptcy case.

The list does not include specific dollar amounts as to what each business in the creditor matrix is owed, nor specified information involving individual customers, over 9.6 million of which were redacted from the document.”

See Also: ‘Bitcoin Jesus’ Roger Ver Says He Doesn’t Have to Pay the $21M He Owes Genesis

The co-founders of Gemini-owned non-fungible token (NFT) marketplace Nifty Gateway are stepping down and leaving the crypto exchange to eventually start another company. The move comes amid wider problems and recent layoffs at Gemini.

Duncan Cock Foster said he and his brother would be replaced by vice president of engineering Eddie Ma as technical leader, and director of collector services and growth Tara Harris as non-tech leader. He added that he and Griffin would continue with the company as advisers to ensure continuity.”

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