First Mover Asia: Bitcoin Holds Firm Below $30K as Sam Bankman-Fried Returns to Incarceration

First Mover Asia: Bitcoin Demonstrates Resistance to CPI Effects

First Mover Asia: Bitcoin Tempts $30K as Investors Eagerly Await ETF Approval

Good morning. Here’s what’s happening:

Prices: Despite U.S. debt ceiling discussions, bitcoin and ether remain stable, while Tether and Circle take measures to diversify reserves and minimize exposure to the dollar's risks.

Insights: A federal judge has rejected the SEC's attempt to withhold documents linked to Hinman's 2018 ether speech, potentially unveiling the reasoning behind this significant announcement during Ripple's lawsuit. It is crucial for the industry's sake that the emails be revealed

Prices

$27,403
+363.6 ▲ 1.3%
$1,822
−2.2 ▼ 0.1%
1,177
+12.6 ▲ 1.1%
S&P 500
4,158.77
+48.9 ▲ 1.2%
Gold
$1,986
−2.4 ▼ 0.1%
Nikkei 225
30,093.59
+250.6 ▲ 0.8%

BTC/ETH prices per CoinCryptoUs Indices, as of 7 a.m. ET (11 a.m. UTC)

Crypto Remains Unfazed by Impending Debt Ceiling, Even as Tether and USDC Turn to Bitcoin for Diversification.

Good morning Asia.

Bitcoin and ether stand firm, unaffected by the potential turbulence stemming from U.S. debt ceiling negotiations and their impact on the crypto market.

Bitcoin kicks off the Asian trading day with a 1.3% increase, reaching $27,403, while ether experiences a slight decline of 0.1%, settling at $1,822.

In the United States, discussions surrounding the debt ceiling persist, as President Biden reassures that the nation will not default on its debt.

On the one hand, cryptocurrencies appear to be indifferent. Given the current tight liquidity, significant market movements require substantial catalysts, and this particular event falls short of that threshold.

However, on the contrary, cryptocurrencies do show a degree of concern. On Wednesday, Tether made an announcement indicating its intention to diversify its reserves, shifting away from government debt and towards cryptocurrencies. Tether committed to allocating approximately 15% of its profits to purchase Bitcoin for its stablecoin reserves. In a nearly simultaneous move, Circle revealed its own efforts to diversify the reserves supporting its $30 billion USD Coin (USDC), which includes $8.7 billion invested in overnight repurchase agreements managed by BlackRock. This strategic maneuver aims to strengthen resilience against potential risks stemming from a potential default on U.S. government debt.

The idea of diversifying into Bitcoin instead of the U.S. dollar may be a dream come true for cryptocurrency maximalists. However, the market does not seem to have responded significantly to this news, as Bitcoin has not experienced any substantial movement.

As the deadline for the debt ceiling draws near, we will observe whether any of these developments have a significant impact on the cryptocurrency market.

Biggest Gainers
 
Asset Ticker Returns DACS Sector
Decentraland MANA +5.4% Entertainment
Polygon MATIC +5.0% Smart Contract Platform
Dogecoin DOGE +3.0% Currency
 
Biggest Losers
 
Asset Ticker Returns DACS Sector
Ethereum ETH −0.1% Smart Contract Platform

 

Insights

Let’s See the Hinman Emails

In the lawsuit against Ripple, a federal judge has made a ruling stating that the U.S. Securities and Exchange Commission (SEC) is not allowed to keep documents related to former official William Hinman's 2018 speech on cryptocurrency and securities under seal.

This development is highly significant as it holds the potential to provide long-awaited answers to a lingering question that has remained unresolved for years.

Back in 2018, William Hinman, who held the position of Director of Corporation Finance at the SEC, delivered a groundbreaking statement at the Yahoo Markets Summit, shaping the crypto industry's landscape. He declared that Ether was not deemed as a security.

However, the process leading to this conclusion remains a subject of curiosity. Speeches delivered by senior officials typically involve extensive consultations and discussions, with various stakeholders offering their perspectives and opinions.

In November, CoinDesk attempted to obtain the emails related to William Hinman through a Freedom of Information Act (FOIA) request.

At the time, the SEC refused to disclose the emails and notes to the public, citing privacy concerns and their involvement in litigation preparation as reasons to keep them confidential.

Additionally, the SEC stated that the release of the documents would amount to an “unwarranted invasion of personal privacy.”

Although the contents were redacted, we received a comprehensive email thread that unveiled the involvement of numerous high-ranking SEC officials, including the former Chair Jay Clayton, in the creation of William Hinman's crucial 2018 speech regarding ether's status.

These revelations raise doubts about the SEC's assertion that the speech represented William Hinman's individual viewpoint rather than official guidance, thereby potentially weakening their stance.

It is crucial for the industry to have access to these emails in order to comprehend the reasoning behind Hinman's statement.

SEC officials have the ability to collaborate and provide guidance on Hinman's speech, so it raises the question of why they cannot extend the same guidance to the industry.

Important events.

9:30 a.m. HKT/SGT(1:30 UTC) Australia Employment Change s.a. (April)

Source Coindesk