Kategorie: Bitcoin News

Bitcoin news about the Bitcoin (BTC) blockchain and its crypto ecosystem.

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IMF recommends El Salvador to limit the public’s exposure to Bitcoin

  • The IMF wants El Salvador to limit “public sector exposure to Bitcoin”
  • The financial agency’s remarks follow an August statement, which talked about “mitigat[ing] the risks from Bitcoin”

The International Monetary Fund (IMF) has recommended that El Salvador reduce the scope of its Bitcoin law and limit the public’s exposure to Bitcoin.

During a press conference, IMF spokesperson Julie Kozack said:

“What we have recommended is a narrowing of the scope of the Bitcoin law, strengthening the regulatory framework and oversight of the Bitcoin ecosystem, and limiting public sector exposure to Bitcoin.”

Kozack added that the IMF continues talking with El Salvador and that “addressing risks arising from Bitcoin is a key element of these discussions.”

The Central American country is no stranger to the IMF’s views on its use of Bitcoin. Notably, the issue goes back to 2021 when El Salvador made Bitcoin legal tender. Following its official adoption, the IMF released a statement in November 2021 “recommend[ing] narrowing the scope of the Bitcoin law” while “strengthening the regulation and supervision of the new payment system.”

This was again called for in January 2022 when the IMF advised El Salvador to reconsider its decision on Bitcoin as the country’s legal tender.

More recently, the IMF released a statement in August that focused on, among other things, the need to “mitigate the risks from Bitcoin.” However, the financial agency did note that while “many of the risks have not materialized, there is joint recognition that further efforts are needed to enhance transparency..” in Bitcoin.

Still committed to Bitcoin

Despite these remarks from the IMF and the continued back-and-forth, El Salvador remains unchanged in its mission to see Bitcoin rise in the country.

However, while the government is keen to see adoption numbers rise, Nayib Bukele, El Salvador’s pro-Bitcoin president, knows more work needs to be done. In a recent interview with TIME magazine, Bukele admitted that his Bitcoin strategy for El Salvador had been “net positive,” but it hasn’t witnessed the “widespread adoption” they hoped for.

Despite this, Bukele remains committed, even going so far as to buy additional Bitcoin when the price drops. The country also promised to use the profit it makes from its Bitcoin Trusts to build 20 schools as it works at making crypto more appealing to its citizens.

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Crypto market on a free fall as Iran launches missiles into Israel

  • Crypto market drops as Iran launches missile strikes into Israel.
  • Bitcoin falls to $62k; Ethereum drops below $2,500.
  • The global crypto market cap declines by 2.72% to $2.18 trillion.

The global crypto market has witnessed a sharp decline following reports of Iran firing missiles into Israel.

The heightened geopolitical tensions have sent shockwaves through financial markets worldwide, with crypto assets taking a significant hit.

As news of the missile strikes spread, cryptocurrency markets reacted swiftly. Bitcoin (BTC), the largest cryptocurrency by market capitalization, had dropped to $61,932.92 at press time while Ethereum (ETH), the second largest cryptocurrency, witnessed a 3.42% plunge, with its price dipping below $2,499.30.

Altcoins, often more volatile, experienced even steeper declines, with Arweave (AR), Notcoin (NOT), Gala (GALA), and Worldcoin (WLD) dropping by double digits as investors scrambled to offload risky assets.

As the market plunged, the global cryptocurrency market cap dropped by over 2.72% to $2.18 trillion.

The sudden drop in crypto prices underscores the market’s sensitivity to geopolitical events. Historically seen as a hedge against inflation and economic uncertainty, cryptocurrencies have not proven immune to geopolitical shocks.

Investors, rattled by the fear of broader regional instability and its potential impact on global markets, have moved to safer assets such as gold, which saw an uptick in prices.

The attack marks a severe escalation in the already volatile Middle East region. Iran’s missile launches were reportedly in retaliation for the Israeli operations in Lebanon that have resulted in the elimination of Hezbollah’s leader.

Israel has, however, responded swiftly, vowing to defend its territory, raising concerns of an impending large-scale conflict.

While the full extent of the conflict’s impact remains unclear, the continued volatility in the Middle East is likely to keep the crypto market on edge in the coming days.

Traders and analysts are now closely watching both diplomatic developments and market reactions.

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Crypto liquidations hit $200m amid Bitcoin dip

  • Crypto liquidations rose to over $200 million in 24 hours as Bitcoin (ETH) and Ethereum (ETH) dipped.
  • Analysts are however bullish on BTC price as September looks poised to end on a green note.

The crypto market saw over $200 million in crypto liquidations as Bitcoin slipped to near $64k amid fresh bear moves.

According to data from Coinglass, the cryptocurrency market saw total liquidations in the past 24 hours surge by 128% to more than $200 million. This came as Bitcoin (BTC) fell 4% to near $63,100 on September 30.  

24-hour liquidations

Having posted a significantly better performance in September contrary to expectation with a spike to $66k, BTC retreated sharply to pull most altcoins lower. With Ethereum (ETH) also dumping to under $2.6k amid latest selling from the Ethereum Foundation, total longs rekt soared to $164 million.

Shorts accounted for about $37 million in 24-hour liquidations at the time of writing.

Crypto liquidation represents the process by which a trader’s position is forcibly closed when their margin account no longer supports an open position. This happens when a trader suffers substantial losses or has insufficient margin to keep the position open.

According to Coinglass data, over 68,900 traders have had their positions liquidated in the past 24 hours. The largest single order to be liquidated happened on the crypto exchange OKX in the ETH-USD-SWAP, at a value $1.92 million.

BTC bounce: Uptober is here

Despite the decline in BTC price, bulls are likely to strengthen in coming weeks.

The upbeat mood may be down to the fact that with hours to go, September looks poised to end with BTC up more than 7%. That’s barring a sharp meltdown – not entirely new to the market. Still, analysts are bullish.

As crypto analyst Kaleo points out in the X post below, October and November have historically been ultra-positive for Bitcoin. If the trend continues, BTC will bounce hard in the coming months.

Earlier on Monday, digital asset manager CoinShares published its weekly report. It showed crypto investment products registered a third consecutive week of inflows amid recent upside on interest rates cut. Bitcoin topped $1 billion as Ethereum broke a five-week streak of negative flows.

BTC price hovered near $63,405 at the time of writing.

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Velar Dharma partners with Xverse Wallet to enable Bitcoin L2 swaps

  • Velar Dharma integrates with Xverse to offer seamless Bitcoin L2 swaps in the wallet.
  • Velar is now the exclusive Bitcoin L2 swap provider for Xverse’s users.
  • The Partnership enhances Xverse users’ access to fast, secure, and competitive swaps.

Velar Dharma, a Bitcoin layer 2 (L2) trading protocol, has integrated its services with Xverse, a leading non-custodial wallet designed for Bitcoin’s L2 ecosystem.

This collaboration allows Xverse users to seamlessly trade assets, including BTC, STX, and stablecoins, directly within the wallet through Velar Dharma’s automated market maker (AMM) engine.

Velar Dharma becomes Bitcoin L2 swap provider in Xverse

As a result of this partnership, Velar Dharma becomes the exclusive provider of Bitcoin L2 swaps within the Xverse platform.

Users will now be able to perform trades on the Stacks L2 network, with Velar’s deep liquidity pools ensuring fast, secure, and competitively priced swaps.

Xverse is a popular web3 wallet known for providing a secure and user-friendly gateway to the Bitcoin ecosystem. The wallet allows users to store and trade a range of Bitcoin L2 assets, including BTC, Ordinals, and Runes.

Available as both a mobile app and a browser extension, the wallet offers robust support for Bitcoin-based assets, including the option for enhanced security with built-in Ledger integration.

Velar Dharma’s CEO, Mithil Thakore, praised the partnership, saying, “We’re thrilled to become the exclusive swap partner for Xverse, whose wallet gives unparalleled access to the Bitcoin L2 ecosystem. This collaboration brings Velar Dharma’s trading capabilities to Bitcoin natives who can now trade directly within the wallet while retaining full custody of their assets.”

Ken Liao, CEO of Xverse, echoed this sentiment, stating, “The integration of Velar swaps in Xverse enhances user convenience and improves liquidity for Bitcoin L2 trading.”

Notably, Velar Dharma’s entry into the Xverse wallet represents a significant milestone in its quest to become the leading decentralized exchange within the Bitcoin ecosystem. By supporting multiple Bitcoin L2 networks, Velar Dharma is expanding access to decentralized finance (DeFi) opportunities for a growing number of users.

This integration marks a major step forward for both companies as they continue to innovate in the Bitcoin DeFi space, offering users secure, efficient, and flexible trading options.

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US SEC Chair Gensler reaffirms Bitcoin (BTC) is not a security under SEC rules

  • US SEC Chair Gensler reaffirms Bitcoin (BTC) is not a security under current regulations.
  • SEC plans new regulations for DeFi and trading systems to protect investors.
  • Crypto firms, including Coinbase, push back against expanding regulatory scope.

In recent statements, SEC Chairman Gary Gensler has firmly reiterated that Bitcoin is classified as a non-security under existing SEC regulations. His comments came during an interview on CNBC’s “Squawk Box.”

Gensler emphasized the importance of regulatory clarity, insisting that while many firms have benefitted from the public’s growing interest in cryptocurrencies, they often resist the regulations designed to ensure market integrity.

In the interview, Gensler noted that the SEC’s role is to foster trust in the market, stating, “Innovations do not develop in the long term unless they also build trust.” He referenced the significant losses and bankruptcies that have occurred in the crypto space, underscoring the necessity of having regulations in place to protect investors.

Despite Gensler’s reaffirmation regarding Bitcoin, he acknowledged the discontent among crypto firms concerning regulatory frameworks. He highlighted that many industry stakeholders argue against the existence of such regulations, which he attributes to their discomfort with the enforcement actions taken by the SEC.

Notably, Gensler’s remarks follow the recent eToro settlement, which confirmed that Bitcoin (BTC), along with Bitcoin Cash (BCH) and Ethereum (ETH), are not considered securities.

SEC’s trading systems proposal

Earlier Gary Gensler while testifying before the US House Financial Services Committee discussed the SEC’s proposal to mandate alternative trading systems to choose whether to register as national securities exchanges or to register as broker-dealers and comply with additional requirements under proposed Regulation ATS depending on their activities and trading volume. This proposal aims to close regulatory gaps among trading platforms, ensuring compliance with rules intended to prevent unfair trading practices.

However, the proposed regulations have met significant push-back from digital-asset firms, including Coinbase, which argue that the definition of an exchange could inadvertently include DeFi platforms, complicating their compliance.

As the SEC continues to navigate the complex landscape of cryptocurrency regulation, Gensler reiterated the agency’s commitment to fostering a transparent market.

With no timeline set for final decisions on the trading systems proposal, the SEC remains open to considering applications from exchanges seeking to offer central clearing for the US Treasury market, which is projected to expand significantly under new rules.

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