BTC Falls to $94K, and Germany Orders WLD Data Deletion - December 20, 2024

Also, El Salvador scales back on BTC activity, and M^0 partners with Usual.

TL;DR: Crypto Insights in Seconds

• BTC: Dipped below the $100K and analyst expect further drop.

• BTC ETFs: Reaches a new high market cap surpassing gold.

• Nigeria: SEC announces new rules for crypto marketing and promotion.

• El Salvador: Will scale back BTC activity due to an agreement with IMF.

• Hong Kong: Accelerates licensing approval, wanting to become a crypto hub in the area.

• Worldcoin: German regulator orders WLD to delete biometric data after investigation.

• Usual: M^0 partners with Usual to raise Usual’s market cap.

Price Update

Bitcoin Dipped Below $100K and Profits Hit A New Record

BTC dipped below $100,000, reaching the $94K mark. On-chain analysis highlights that BTC holders are now recording unprecedented profits, with realized profit levels surpassing the peaks of previous bull cycles. Analysts warn of potential volatility, suggesting the possibility of profit-taking-induced pullbacks​ causing a larger dip next month as Bitcoin consolidates near this psychological barrier.

Market Trends

Bitcoin Achieves New Milestones in Market Cap and ETFs

Bitcoin's market cap has reached a new high, equivalent to 14% of gold's market cap, driven by increasing adoption of Bitcoin ETFs, which now manage $129 billion in assets, surpassing gold ETFs' $128 billion. Bitcoin's total market cap has also surged past $2 trillion, ranking seventh globally. Despite its growth, gold still leads with a market cap exceeding $17 trillion.

Regulatory and Legal News

Nigeria’s SEC Cracks Down on Promotions

The Nigerian Securities and Exchange Commission announced new rules for crypto marketing and promotions, targeting Virtual Asset Service Providers (VASPs). These measures aim to protect investors while promoting transparency in Nigeria's fast-evolving crypto market​.

El Salvador’s Bitcoin Limitations for IMF Deal

El Salvador has reportedly agreed to scale back some of its Bitcoin activities as part of a $1.4 billion deal with the International Monetary Fund (IMF). While the government remains committed to Bitcoin, this move reflects efforts to align with traditional financial norms.

Hong Kong Accelerates Licensing Approvals

Hong Kong has expedited its crypto exchange licensing process, granting four new approvals as it looks to establish itself as a global center for digital assets. This initiative is part of their strategy to attract international crypto firms.

German Regulator Orders Worldcoin Data Deletion

Germany’s data protection authority has instructed the Worldcoin project to delete biometric data collected through eyeball scanning. This decision follows investigations into privacy violations and underscores the increasing regulatory scrutiny of biometric-based blockchain projects.

Don’t Miss Anything

M^0 Expands with Usual Integration, Enhancing Stablecoin Customization

Stablecoin platform M^0 has partnered with Usual, integrating its infrastructure to diversify reserves and raise Usual's $1 billion market cap stablecoin. M^0's middleware enables on-chain compliance features, like blacklisting and unwrapping tokens, and promises self-serve customization soon.

Regulatory changes in markets like Nigeria, El Salvador, and Hong Kong reflect a maturing crypto landscape as countries balance innovation with investor protection. The expanding stablecoin ecosystem and regulatory challenges for projects like Worldcoin demonstrate the need for innovation to coexist with compliance. As the market evolves, being informed and adaptable is crucial for investors and participants. Stay tuned for tomorrow’s newsletter to get the latest insights and updates in the market.