Crypto morning: Bitcoin (BTC) and Ethereum (ETH) soar on expectation of US regulatory framework; Earth (Luna) takes off 18%

Charlie Taylor


Investors bet on cryptocurrencies this Wednesday (9) awaiting more details from US President Joe Biden’s executive order to regulate the sector. Bitcoin (BTC) is up 8.1% in the last 24 hours, trading at $42,098, data from CoinGecko shows. Ethereum (ETH) is up 6.9% at $2,759. In Brazil, Bitcoin also dawns with gains, up 7% and trading at R$ 213,566, according to the Bitcoin Portal Index (IPB). The crypto market expects the announcement of an executive order from the American president later this week. In a statement published Tuesday night dated March 9 but later removed, U.S. Treasury Secretary Janet Yellen said the Biden administration’s cryptocurrency executive order strikes the right balance between encouraging responsible innovation and address potential risks to consumers and the financial system at large. When contacted by Bloomberg, a Treasury spokesperson declined to comment. “For years, the cryptocurrency market has been held back by a lack of regulatory clarity in the US,” Hayden Hughes, CEO of social media platform Alpha Impact, said in a message to Bloomberg on Wednesday. “If clear guidelines are passed, this could be a watershed moment for the industry.” But the consequences of the invasion of Ukraine and sanctions on Russia for the global economy and financial markets are still on the radar. Amid the deaths of hundreds of civilians and with two million refugees, the war continues outside the battlefield. The US has banned oil imports from Russia, which has shaken energy markets. Companies like McDonald’s, Coca-Cola and Starbucks have suspended operations in Russia, turning the nuclear power into an international pariah, highlights the New York Times. Heineken’s chief executive said in a statement that the company will stop producing, advertising and selling beers in Russia. In response, the Russian government has promised to suspend exports of some commodities, although it has not yet specified which ones. Investors seek to understand why Bitcoin has not yet taken off in the current scenario, marked by geopolitical tensions and high inflation. For some market players, the same factors that serve to drive the biggest cryptocurrency may also be what draw regulators’ attention to imposing controls. That was the case with the truckers’ protests in Canada and, more recently, with the sanctions imposed on Russia, points out Nic Carter, co-founder and general partner of Castle Island Ventures, in a Bloomberg analysis. For Piyush Gupta, CEO of DBS Holdings, Singapore’s largest bank, private digital currencies like Bitcoin will continue to grow as a store of value, similar to gold. But the executive does not believe cryptocurrencies will play the role of money guaranteed by governments, according to the bank’s annual report released on Wednesday. Other cryptocurrencies also show gains on Wednesday: Binance Coin (+2.3%), XRP (+3.3%), Cardano (+4.4%), Avalanche (+7.7%), Polkadot (+ 6.2%), Dogecoin (+3.4%) and Shiba Inu (+4.1%), according to CoinGecko. The highlight is for LUNA, up 18% in the last 24 hours.

Other highlights

Real estate payment: Melnick Desenvolvimento Imobiliário has announced that it will accept payment for real estate through Bitcoin and Ethereum, according to Valor. The company entered into a partnership with Mercado Bitcoin to carry out the transactions. CoinZoom in Russia: The Utah-based cryptocurrency exchange has stopped accepting requests for new accounts in Russia amid the conflict in Ukraine, Reuters reported on Tuesday. According to Todd Crosland, CEO of CoinZoom, the company is unclear how customers will be able to make deposits into accounts going forward, as many payment companies are moving out of Russia. Impact on miners: Rising energy costs could lead to consolidation in the Bitcoin mining community due to the effects on profitability, according to the largest industry-focused ETF operator. “This will hit less efficient miners the hardest,” Josh Olszewicz, head of research at Valkyrie Funds, a digital asset investment firm based in Nashville, Tennessee, told Bloomberg. DAO barriers: Decentralized Autonomous Organizations, or DAOS, are now taking a bath in reality, New York Times report shows. Many DAOs face challenges such as huge financial losses from software failures and hacking attacks, internal divisions, and allegations of misappropriation of community funds. Another obstacle is the low participation among members to vote on a strategy or business decision, which effectively leaves control in the hands of investors who invested in the beginning. bet in Brazil: In an interview with Exame, William Ou, CEO of Token.com, a British fintech focused on the DeFi sector, explains why Brazil was chosen for the debut, and how he intends to popularize decentralized finance. Its first product will be a dollar-backed stablecoin wallet with an estimated yield of 12% per annum. Ethereum Fund: Goldman Sachs is offering interested clients access to an Ethereum fund issued by Galaxy Digital, according to regulatory documents filed with the US Securities and Exchange Commission (SEC) on Tuesday, CoinDesk reported. Ethereum Fees: High Gas rates have long been a source of frustration for Ethereum users, but a number of so-called second-tier innovations have begun to offer a solution – the newest is in the form of StarkNet which is now integrated into the development of the giant infrastructure company Alchemy, according to the Bitcoin Portal.

Regulation and CBDCs

Opportunity or risk?: Proposals from the city of Rio de Janeiro for the creation of a local cryptocurrency, Rio Crypto, the application of 1% of the municipal treasury in cryptoassets and the possibility of paying IPTU in Bitcoins drew attention in Brazil and abroad. In a column in Valor, Norberto Martins, Gabriel Porto and other authors highlight that a deeper analysis is necessary for a correct identification of the challenges and impacts expected from these actions. Restrictions in Estonia: Kaja Kallas, Estonia’s prime minister, warned on Tuesday against using cryptocurrencies to evade sanctions amid Russia’s invasion of Ukraine, according to Reuters. “Our focus must be on Russia’s complete isolation from the free world,” Kallas reportedly told US Secretary of State Anthony Blinken.

Metaverse, Games and NFTs

Crypto at SP-Arte: Tamara Perlman joins SP-Arte, leading institutional relations and expansion and new business strategies. In an interview with Sonia Racy, from Estadão, Tamara says that “the pandemic has brought relevant changes to the world of art, especially in the use of digital technologies”, such as non-fungible tokens. NFTs in video games: Even with a series of restrictions, in the coming years more and more games should be launched with some kind of association with non-fungible tokens, indicates a report by Folha. Whether this will be done laterally or whether NFTs will come to play a central role in games will depend a lot on the ways the industry finds to exploit this technology and on consumer acceptance.

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