Kamala Harris Accepts Crypto, Bitcoin Retraces Below $57K, and Ether Underperforms Bitcoin - September 6, 2024
A quick and digestible recap of yesterday’s crypto news.
TL;DR: Market Insight in Seconds
Kamala Harris: Future Forward PAC accepts crypto donations via Coinbase.
Worldcoin: aims for global scale, seeking to reach Facebook-like levels of user adoption.
U.S. spot Bitcoin ETFs: Continue to see outflows, with $37 million in net outflows this week.
Skyscanner: Partners with Travala to enable crypto payments for travel bookings.
ETH: Has underperformed Bitcoin by 44% since its switch to Proof of Stake.
Telegram: CEO Pavel Durov signals readiness to leave markets incompatible with the platform’s values following his arrest in France.
U.K. Regulator: Reveals that 87% of crypto registration applications failed to meet approval standards.
Price Update
Bitcoin Retraces Below $57K, Erasing Brief Gains
Bitcoin has once again dipped below $57,000, erasing the gains made during Wednesday’s brief rally. The market continues to experience sell-on-rise action, with traders taking profits at resistance levels, preventing any sustained upward momentum. Analysts point to market weakness and a lack of bullish catalysts as contributing factors. This downward pressure has left Bitcoin struggling to break through key resistance levels, raising concerns about whether the cryptocurrency can maintain its current price range or if further declines are on the horizon.
Market Trends and Future Expectations
U.S. Spot Bitcoin ETFs See $37 Million in Net Outflows
U.S. spot Bitcoin ETFs continue to bleed, with $37 million in net outflows reported this week. This marks the latest in a string of outflows, as investor sentiment remains cautious during the ongoing market volatility. The negative flows show investors concerns about Bitcoin’s near-term prospects, with many opting to reduce exposure to risk assets in favor of safer investments.
Ether Underperforms Bitcoin by 44% Since Proof-of-Stake Transition
Ether has underperformed Bitcoin by 44% since its switch to Proof of Stake (PoS) two years ago, according to data from CryptoQuant. Despite the significant technological upgrade, ETH price has lagged behind Bitcoin, which continues to dominate the market. The underperformance has raised questions about the long-term implications of Ether’s transition to PoS and whether the move has fully delivered on its promise of increased efficiency and reduced environmental impact.
Regulatory News
U.K. Regulator Says 87% of Crypto Registration Applications Failed Approval
The U.K.’s Financial Conduct Authority (FCA) has revealed that 87% of crypto registration applications failed to meet its standards for approval. The FCA cited issues related to anti-money laundering (AML) compliance, inadequate risk management systems, and other regulatory shortcomings as reasons for the high rejection rate. Firms operating in the U.K. will need to improve their compliance efforts to meet the FCA’s requirements and continue operating within the country.
Business Updates
Future Forward PAC Accepts Crypto Donations via Coinbase Commerce
Future Forward PAC, a U.S. political action committee supporting Kamala Harris, has started accepting crypto donations through Coinbase Commerce, marking a significant step in the intersection of politics and cryptocurrency for the Democratic Party. This move allows donors to contribute to political campaigns using Bitcoin and other cryptocurrencies, offering more flexibility in fundraising.
Worldcoin Aims for Facebook-Like Scale for Global Reach
Worldcoin, the controversial crypto project wanting to create a global digital identity system, has ambitious plans to reach the same level of user adoption as Facebook. The project’s founders believe that Worldcoin’s biometric-based identity verification system could become a key tool in enabling financial inclusion and digital identity for billions of people worldwide. However, the project has faced significant scrutiny over privacy concerns and data security, with critics questioning whether such a centralized identity system can truly achieve the level of trust and adoption it seeks.
Telegram CEO Prepared to Leave Markets After France Arrest
Telegram CEO Pavel Durov has expressed his willingness to exit markets that are not compatible with the platform’s values, following his recent arrest in France. Durov’s arrest was related to allegations surrounding Telegram’s involvement in unauthorized cryptology services, sparking debate over the platform’s regulatory compliance in various jurisdictions. Durov’s statement signals a firm stance on protecting Telegram’s operational principles, even if it means leaving certain markets.
Skyscanner and Travala Partner to Enable Crypto Travel Bookings
Skyscanner, the popular travel search engine, has partnered with Travala, a crypto-friendly travel booking platform, to enable crypto payments for travel bookings. This partnership allows users to book flights, hotels, and car rentals using cryptocurrencies, further integrating digital assets into everyday transactions. This collaboration is part of a broader trend of travel companies embracing crypto as a payment method, catering to the growing number of crypto enthusiasts looking for more ways to spend their digital assets.
The crypto market continues to navigate a challenging period, with Bitcoin retracing below $57K and major coins like Ether underperforming. Regulatory developments, like the U.K.’s high rejection rate for crypto applications, show us the ongoing scrutiny of the sector. Meanwhile, innovations such as Skyscanner’s crypto integration and Future Forward PAC demonstrate the ongoing evolution of the crypto landscape and its constant integration into everyday life. 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.
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