Daily News | SEC Warns that Crypto Regulation Will Become Stricter, Grayscale Applying for A New Ethereum ETF, India Becomes the World's Second Largest Crypto Market

Crypto Daily Digest: The SEC warns that crypto regulation will become stricter; Grayscale submits new Ethereum ETF application

First, let’s keep an eye on the dynamics of the US SEC.

Yesterday, David Hirsch, the head of crypto enforcement at the Securities and Exchange Commission (SEC), warned that other crypto trading platforms and DeFi projects would soon face more penalties and charges.

Recently, the SEC has been busy with numerous issues. However, the regulatory agency’s crypto enforcement officers have clarified that the SEC has more plans for the crypto industry. Hirsch delivered a speech at the Securities Enforcement Forum held in Chicago on Tuesday. He discussed other non-compliant crypto trading platforms and DeFi projects there.

Currently, the SEC has raised many criticisms against Binance and Coinbase. Meanwhile, the head of the SEC’s crypto assets and cybersecurity department mentioned that the SEC will pursue other companies engaged in similar activities. Hirsch said, “We will continue to make these accusations,” and added that we are investigating other businesses similar to these two top crypto trading platforms. In addition to these two trading platforms, the SEC is also appealing the Ripple securities ruling.

For regulatory uncertainty, each of us should have this expectation and respond promptly.

Cathie Wood’s ARK Invest announced that it has acquired European ETF issuer Rize ETF, but the specific acquisition amount has not been disclosed. This acquisition will enable ARK to enter the European ETF market, and the Rize ETF team will join ARK. The existing name and brand of Rize ETF will be gradually phased out and transformed into a department of ARK Invest Limited, renamed “ARK Invest Europe,” and the existing Rize ETF index products will still be available.

According to WSJ, Grayscale Investment Company submitted an application to the US Securities and Exchange Commission (SEC) on Tuesday for a new futures Ethereum ETF, which was filed under the Securities Act of 1933, which also regulates the filing of commodity and spot Bitcoin ETFs. Grayscale had previously applied for a separate Ethereum futures ETF under the Investment Company Act of 1940, and most securities-based ETFs were registered under that Act.

According to the latest report of Chainalysis, India has become the world’s second-largest crypto market in terms of original transaction volume, beating the United Kingdom, Türkiye, and Russia. The United States is still the world’s largest crypto market so far. From a regional perspective, Central Asia, South Asia, and Oceania account for 20% of the global crypto market.

Chainalysis pointed out that from July 2022 to June 2023, the total trading volume of the Indian crypto market reached nearly $269 billion. India’s tax rate on cryptocurrency activities is much higher than most other countries, but this has not curbed India’s huge demand for cryptocurrency.

Today’s Main Token Trends

BTC

The four-hour chart shows a sudden increase in volume at the bottom, and it has broken through the key resistance level of $27,283 for the second time. The daily chart has seen three consecutive bullish formations. In the short term, attention should be paid to the support level at $26,975, gradually rising to the rebound target of $28,100. For medium-term strategy, keep an eye on the consolidation range.

TIP

TIP is quite interesting, and let’s discuss this coin in detail. TIP uses the anti-witch + API as the threshold for receiving airdrops, indicating that the team has technical expertise. Since listing, it has maintained a high valuation. Its five-minute chart closely follows the golden ratio neckline, suggesting a strong underlying strength in market control.

Yesterday’s suggested entry points ranged from $0.00028 to $0.0004. This morning, it reached a high of $0.001208, with a maximum increase of 428%, achieving more than four times returns in just one day. This was due to its low market capitalization, precise market control logic, and low entry points.

For the short term, it is recommended to hold at target levels of $0.00062, $0.00086, or $0.0012 for profit-taking. If it continues to break the previous high, the target could reach $0.0018. However, there is uncertainty about whether there will be a final rally, and short-term trading volume is declining. It is important to maintain stability above $0.00062.

KAS

The four-hour chart shows a bullish head and shoulders pattern, and the daily chart continues to set new highs. In the short term, it is advisable to hold and target levels of $0.05455, $0.05737, $0.06140, and the top target of $0.06653, with a lower support at $0.04822.

Macro: US bond yields remain high, with the Federal Reserve raising interest rates at 2 am

The US dollar index showed a V-shaped trend, dropping to an intraday low of 104.81 before the US market, and then regaining all lost ground with a strong recovery, ultimately closing up 0.06% at 105.13. In terms of US bond yields, the two-year US bond yield significantly increased, ultimately closing at 5.092%; The 10-year US Treasury yield closed at 4.365%; The yield on the five-year US Treasury bond briefly rose to 4.504%, reaching a new high since 2007. This has put pressure on the stock market before the Federal Reserve makes the next interest rate decision.

The fear that the US treasury bond yield will remain high for a long time hit the stock market before Tuesday, but technology stocks and medical and health stocks recovered later in the session. The benchmark S&P 500 index fell 0.2%, the Dow Jones index fell 0.3%, and the Nasdaq Composite index fell 0.2%.

At 2 a.m. Beijing time on Thursday, September 21st, the Federal Reserve’s decision to raise interest rates is finally coming. In fact, from now on, we should not continue to pay attention to whether or how much interest rates will be raised. We should pay more attention to next year’s interest rate cut because the frequency and frequency of interest rate hikes are already predetermined. Either we will raise interest rates once in November or we will continue to stop raising interest rates in November.

So there’s no need to focus on certain things overly. Instead, we need to look for clues to next year’s interest rate cut, and then look at the expectations of the Federal Reserve and Wall Street for next year’s interest rate cut. This way, we can at least establish a broad range of expectations. Based on this expectation, we can judge a basic macro level and know this macro level, We can further predict how much impact it will have on the crypto market.