[Weekend movement]Bitcoin, will it be a move to try $ 20,000 | coindesk JAPAN | Coindesk Japan

priceBitcoin (BTC) May Test Below $20,000, But There Are Still Reasons To Be Bullish.

Insight: The SEC’s (US Securities and Exchange Commission) action against Kraken’s staking service is not an attack on staking as a whole.

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● CoinDesk Market Index (CMI): 1,031, -0.8%
Bitcoin: $21,740, -0.5%
Ethereum: $1,512, -1.7%

● S&P500: 4,090.46, +0.2%
Gold: 1,872, +0.5%

Bitcoin Moves to Seek Support

As Asia entered Monday, Bitcoin dropped to $21,750 (near $21,800 around 13:00 Japan time on the 13th), and Ethereum (ETH) also dropped 1.8% to near $1,514.

BitBull Capital’s Joe DiPasquale says Bitcoin is now in a position to decide whether to recover above $23,000 or fall to $20,000 “rather quickly”.

“The market is also dependent on macroeconomic developments, and given that December consumer prices were higher than expected, we are considering a higher interest rate hike at the next FOMC (Federal Open Market Committee) meeting. We might start.” (Dipasquale)

In seeking support, Bitcoin is also facing regulatory moves. Last week, Kraken was fined $30 million by the SEC for its staking program. The Wall Street Journal reports that the SEC’s next target is Paxos, the publisher of the stablecoin Binance USD.

“Regulation has become even more of a concern for the cryptocurrency industry, especially with the SEC fined Kraken $30 million. I think it would be better if there was more regulatory clarity in the market,” said DiPasquale.

Despite this situation, he said he would remain bullish even if Bitcoin breaks the support level.

“If the price drops below $20,000, I’m thinking of buying more.”

Insight

SEC Can’t Stop DeFi

Kraken and SEC have settled over staking services.

Kraken paid a $30 million settlement and ceased staking services in the United States. What should not be overlooked, however, is the continued staking in the United States. Staking refers to locking (depositing) crypto assets for a certain period of time to support blockchain operations. Liquid staking, on the other hand, is the issue of derivative tokens representing locked crypto assets to users, giving them access to DeFi (decentralized financial) services.

Kraken’s staking service is unique, which is why the exchange was shut down. The SEC never sued Coinbase, which also offers a staking service, or targeted a decentralized liquid staking protocol.

At the core of the SEC statement is Kraken’s lack of transparency. Indeed, according to on-chain data, Kraken is one of the largest validators and operates a large staking pool. But the SEC appears to be concerned about the flow of funds. Is Ethereum deposited with Kraken really being used for staking? Or is it on loan?

A liquid staking protocol like Lido or Rocket Pool would have no such problem. Data sites and monitoring tools can be used to track the amount of Ethereum moved from user wallets to pools.

Liquid staking tokens like Lido’s LDO surge, citing Kraken in hours after Coinbase CEO Brian Armstrong tweeted that the market was watching staking closely and further increased.

A rational analysis of the rise would lead to a “caution signal” for SEC staking. Staking as an investment strategy is not allowed, but staking as a technical service is allowed.

There is one point worth noting. The TVL of liquid staking protocols like Lido and Rocket Pool has not increased.

Since the beginning of the year, Lido’s TVL has remained relatively flat. From 4.9 million Ethereum at the beginning of the year to 5.19 million Ethereum today. Rocket Pool is between 472,000 and 608,000.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
| Image: CoinDesk
｜Original: First Mover Asia: Bitcoin Might Test $20K as It Looks for Support