Good morning to all crypto enthusiasts! As we start the day looking at the market, it becomes evident that prices are fluctuating in their usual fashion, with BTC trading at $26.8K. However, Oanda Senior Market Analyst Craig Erlam cautions against expecting significant price increases in the following months, due to uncertain industry and economic news.
Despite the optimism surrounding BlackRock’s potential success with its application for a bitcoin spot exchange-traded fund, bitcoin and ether have appeared vulnerable to further declines. However, Erlam believes that the recent downturns are simply a correction phase within an overall bull market, which has not fully realized its potential just yet.
When it comes to crypto exchanges, the presence of market makers raises concerns of conflicts of interest. Companies such as Crypto.com, Binance, and the now-disgraced FTX all have operated with internal market makers. While critics argue that these market makers could manipulate markets and create biases, proponents assert that they are necessary for maintaining liquidity and enabling trades of smaller cap tokens.
In the world of Decentralized Finance (DeFi), automated market makers play a crucial role in platforms like Uniswap. Many traditional retail equity trades function in a similar manner. So, while crypto exchanges are not entirely free of concerns regarding conflicts of interest or market manipulation, the transparency, and open-source nature of DeFi’s automated market makers offers a more unbiased alternative.
In other news, Binance’s French unit is currently being investigated for the illegal provision of digital asset services and money laundering. The exchange has also decided to leave the Netherlands due to its inability to acquire a license from the Dutch regulator. State securities regulators have revealed another significant development: crypto lender Abra has allegedly been insolvent since at least March 31, 2023.
The release of documents in the SEC-Ripple case has given a boost to Ether, with JPMorgan analysts stating that it will likely encourage the move towards greater decentralization among major cryptocurrencies. On the lighter side, Elon Musk’s calling out of meme coin BOB’s Twitter bot account as a ‘scam’ has led to a 45% drop in the token’s value.
Finally, UK crypto and stablecoin laws have been approved by the country’s Parliament’s Upper House. The Financial Services and Markets Bill aims to recognize crypto as a regulated activity and stablecoins as a valid means of payment under existing laws, reflecting the growing mainstream adoption of digital assets. As the cryptocurrency landscape continues to evolve, it’s crucial for market participants to stay informed about these developments and their potential implications.
Source: Coindesk
