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Crypto Morning: Binance.US Gets Green Light to Buy Voyager Assets; Silvergate may have ransom and Bitcoin retreats again

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The macro scenario weighs again this Wednesday (8) on risk assets, such as cryptocurrencies and shares, in reaction to the prospect of greater monetary tightening, warned by the president of the US central bank, Jerome Powell.

US indices futures showed mixed performance this morning, while European stocks opened lower.

Bitcoin (BTC) is down 1.8% over the last 24 hours, quoted at $21,986.33, according to data from Coingecko. In reais, the largest cryptocurrency lost 1.4%, trading at R$ 114,831.42, according to the Bitcoin Portal Index (IPB).

Ethereum (ETH), the second-largest token, fell 0.8% to $1,553.86.

In the crypto space, investors are reacting to a judge’s decision authorizing Binance.US to buy Voyager Digital’s assets, Silvergate’s talks with authorities to save the cryptobank and Jack Dorsey’s Block’s plans to launch a mining development”.

Meanwhile, Coinbase managed to resolve a technical glitch that prevented the transfer of bitcoins from Binance to the American exchange, due to alleged addresses sanctioned by the American government.

Another highlight is Decolar, one of the largest travel agencies in Latin America, which began accepting the purchase of airline tickets with cryptocurrencies. For now, the option is only available in Argentina.

Altcoins are also trading in the red, among them BNB (-0.4%), Cardano (-2.6%), Polygon (-2.6%), Dogecoin (-2.8%), Solana (-6. 1%), Polkadot (-3.9%), Shiba Inu (-3.1%) and Avalanche (-3.1%). XRP goes against the grain and advances 3.1%.

bitcoin today

The Fed chairman’s testimony to Congress, indicating further monetary tightening, brought down US stock markets on Tuesday (7), with an impact on Asian markets this morning.

Among cryptocurrency investors, the reaction was also negative. Bitcoin and Ethereum were operating in the blue overnight in Asia trading, but have returned to negative territory.

According to an analysis by the MB Research team published by Bitcoin portal, long-term investors (LTHs) reduced their positions in the last week, reinforcing the idea of ​​concern regarding the macroeconomic situation. LTHs have sold more than 52,000 bitcoins in the last seven days.

“The latest economic data came in stronger than expected, which suggests that the ultimate interest rate level is likely to be higher than previously anticipated,” Powell told the Senate Banking Committee. Powell returns to speak today at the House Financial Services Committee.

The comments prompted the market to adjust forecasts, with the possibility of a 0.5 percentage point rise at this month’s Fed meeting, rather than 0.25 points.

Some investors believe the US benchmark rate could rise far beyond consensus projections.

“We think there’s a reasonable chance that the Fed will have to bring the federal funds rate to 6%,” Rick Rieder, chief investment officer of global fixed income at BlackRock, the world’s largest asset manager, said in a note.

Global investors are now keeping an eye on the US labor market report next Friday (10), which should serve as a guide for new bets until the next Fed meeting.

‘We don’t want to stifle innovation’

During Tuesday’s Senate hearing, Powell was asked several times about his views on the crypto industry.

“We have to be open to the idea that – somewhere – there is technology that can be brought into productive innovation that improves people’s lives,” Powell said. “We don’t want to stifle innovation,” he said.

But the Fed chairman highlighted that the monetary authority is attentive to the market turmoil.

“We see a lot of things in crypto activity suggesting that regulated financial institutions should be very cautious when doing things in the crypto space.”

silvergate crisis

And the new focus of concern for the crypto industry is precisely in the financial sector, with the Silvergate Capital crisis.

US regulators are talking to the cryptobank, which is looking for ways to continue operating. Officials at the FDIC agency, which regulates the banking industry, have been weighing ways to avoid a crash, sources told Bloomberg.

One option involves attracting investors from the crypto industry to help Silvergate boost liquidity, one of the people said. FDIC examiners have been holding meetings at the company’s offices in La Jolla, Calif., since last week, according to the people.

A Silvergate representative did not respond to phone and email messages seeking comment. The FDIC said it does not comment on “open and operational institutions”. The Fed declined to comment.

Sale of Voyager assets

Among the crypto companies that collapsed last year is the Voyager Digital platform, which finally received the green light from Justice to sell its assets to Binance.US, the US arm of the Binance holding company, the largest crypto exchange in the world. The deal is valued at $1 billion.

Although the judge said that he will still review the confirmation order, he indicated that he is in favor of approving the agreement. Binance.US may still have to clear certain regulatory hurdles before the deal is finalized. Voyager’s VGX token rose more than 8% in the minutes following the decision.

The SEC, the US CVM, had been trying to block the deal, citing the links between Binance.US and the Binance group.

But the agency’s arguments were not very convincing to the judge. In another lawsuit, filed by Grasyscale, the SEC also lost ground.

U.S. federal appeals court judges on Tuesday questioned whether the agency was right to reject the request of Grayscale, which manages the world’s largest Bitcoin fund, to turn it into a spot ETF, given that the agency had previously approved BTC futures products, according to Reuters.

Other cryptocurrency highlights

Block believes that developers can build best Bitcoin mining platforms. That’s why it plans a “Mining Development Kit,” or MDK, Jack Dorsey’s company said on Tuesday. Block hopes the kit will spur innovation in Bitcoin mining hardware, according to a statement, alluding to Dorsey’s 2021 Twitter statement that the company was looking to “build an open source, silicon-based Bitcoin mining system.”

After months of development and some delays, Amazon, a world leader in e-commerce, will launch its Non-Fungible Tokens (NFTs) platform, according to The Big Whale portal. The platform, which should go into operation on April 24, will be available on the American giant’s website through the “Amazon Digital Marketplace”. Initially, it will only be accessible in the United States. The platform will gradually be opened in other countries.

Sotheby’s has teamed up with digital art collective UnicornDAO to organize an auction of NFTs in honor of International Women’s Day. The “My Body, My Business” auction, which began on Tuesday, features works by 34 mainstream artists, including Marina Abramović, Cindy Sherman, Jenny Holzer and Ellen Von Unwerth. In addition, the collection will include works by native web3 artists such as Olive Allen, Latashá, Jen Stark and Nadya Tolokonnikova, curator of the collection and founder of the activist group Pussy Riot.

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