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the cost Bitcoin, Ether and other major cryptocurrencies fell a day before the Federal Reserve announced its latest interest rate decision.
Outlook. Is the Ethereum network subject to US securities law? This issue is at the heart of the SEC's lawsuit against crypto developer Ian Ballina.
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Prices:● Bitcoin (BTC): $18,875 -3.4%
● Ether (ETH): $1,323 - 4.1%
● CoinDesk Market Index (CMI): $940 - 2.8%
● S&P 500 close for the day: 3,855.93 -1.1%
● Gold: $1,674 per troy ounce +0.5%
● 10-year Treasury yield at the close of the day: 3.57% +0.08
Bitcoin, Ether and Gold prices are measured around 4:00 PM PT. Bitcoin is CoinDesk's Bitcoin Price Index (XBX); Ether is CoinDesk's Ether price index (ETX); Gold is the COMEX spot price. For CoinDesk indices, visit coindesk.com/indices.
Bitcoin hovers around $19,000; The price of Ether is less than 1.4 thousand dollars
By James Rubin
Investors didn't need a crystal ball on Tuesday when the Federal Reserve announced a 75 basis point rate hike in less than a day.
They largely shrugged off the week-long cable move that sent Bitcoin and other major cryptocurrencies lower. The largest cryptocurrency by market cap recently traded below $19,000, down more than 3% in the past 24 hours. BTC trades above and below $19,000 for most of the US trading day.
"Bitcoin is weaker as risk aversion rises as interest rates continue to rise," Edward Moya, senior market analyst at Oanda, wrote in an email.
Moya added, "Fireworks from this week's central bank decision could help fuel any (bitcoin) selloff to retest summer lows. The peak of crypto pessimism is almost here, needed before long-term cash returns."
Ether recently traded below $1,350, down more than 4% from the previous day. The second-largest cryptocurrency by market cap, which trades in a tight range, has fallen about 18% in the past four days and is down more than 32% since reaching a euphoric pre-merger high of more than $2,000 in August.
Most other altcoins remained in a questionable red swamp, with ATOM and LUNA down 11% and 7% respectively in the last 24 hours.
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Cryptocurrency prices were in line with stock indices, which also fell on Tuesday as investors continued the latest exodus from riskier assets. The tech-heavy Nasdaq, the S&P 500 and the Dow Jones Industrial Average (DJIA) were all down a full percentage point. The Fed's continued tightening aims to reduce inflation, which has hit a four-decade high in recent months, but risks tipping the global economy into recession.
Central banks around the world are facing the same dilemma, with some raising interest rates in recent weeks. Sweden's Riksbank was the latest to raise interest rates by 1% on Tuesday, the biggest increase in nearly two decades.
"The Riksbank sets the tone this week and expectations that more central banks will err on the side of tackling inflation more aggressively should rise," wrote Oanda's Moya.
crypto news
Earlier on Tuesday, Nasdaq (NDAQ) announced that it is launching a crypto-watchdog service to capitalize on demand from institutional crypto investors. The move by the second-largest U.S. exchange follows a broader trend among large institutional investors and other Wall Street entities to offer crypto products and services.
Last month, BlackRock, the world's largest wealth manager, announced it would make the cryptocurrency available to its institutional clients, and the Depository Trust & Clearing Corp., which handles nearly all U.S. stock trading, launched its blockchain. he was running, with the intention of speeding up. up regulation of operations. .
Analysts suggested the trends are positive for cryptocurrencies, although Bruno Ramos de Souza, head of global expansion at crypto-asset manager Hashdex, told CoinDesk TV's "First Mover" show that TradFi's initiatives have little impact on cryptocurrency prices.
"The outlook for the future is how much news like this can affect prices in terms of institutional acceptance, and I think it's getting smaller," Ramos de Sousa said. "We'll see. It's become normal to think that institutional players are in the crypto space."
the biggest winners
Investment Token Return DACS Sector XRP XRP +7.6% Stellar Coin XLM +4.9% Smart Contract Platformthe biggest losers
Asset Ticker Return DACS Cosmos ATOM Sector -11.2% Terra LUNA Smart Contract Platform -6.7% Chainlink LINK Smart Contract Platform -5.6% Informatica InsightsIs the Ethereum network subject to US securities law? Case against Ian Ballina
Author: Sam Reynolds
Cryptocurrency developer Ian Ballina has been the subject of a criminal complaint by the US Securities and Exchange Commission (SEC) for allegedly offering unregistered shares for his SPRK Token Offering (ICO) earlier in 2018.
SEC's case against Ballina is based on an extraterritorial claim; "His ETH investments were validated by a denser network of Ethereum blockchain nodes in the United States than any other country. As a result, these transactions took place in the United States.
It is true that the nodes of the Ethereum network are mostly located in the USA. Much has been written about the concentration of Ethereum nodes and other protocols in commercial data centers. Research by crypto data provider Messari shows that 52% of Ethereum nodes are based on Amazon Web Services cloud servers, while 42% of Solana nodes are based on German cloud Hetzner servers (provider).
Data from Ethernodes shows that 43% of these nodes, regardless of cloud provider, are located in the United States, and 11.6% are located in Germany.
But that's the web today. The SEC's complaint relates to 2018
Historical data on the distribution of nodes by country is not as available as today's data. But online information shows that yesterday's Ethereum network is evenly distributed around the world.
In a 2018 paper, University of Massachusetts researcher Sunny Katkuri created a script to analyze geographic information on 19,000 public Ethereum nodes. Katkuri's data shows that 33.6% of these nodes were located in the US, 12.6% in China, 6.2% in Malaysia and 42.5% in other countries.
Previous data from 2016 by researchers at the Technische Universität Berlin shows that data center IP addresses in Germany, Canada, Bulgaria and Singapore account for the most nodes.
There is also a technical problem here. Ethereum miners, who also run nodes to validate transactions, were mostly located in Europe and China at the time.
With that in mind, it's hard to conclude that by 2018 the Ethereum network was "more densely concentrated in the United States than any other country" and thus under the watchful eye of US securities laws. There is no dispute that US citizens bought the ICO tokens, but the network the tokens were on was not, in fact, the US.
The SEC declined to comment for this story.
Important eventsUS FOMC rate decision and Fed Chairman Jerome Powell's comments
the main online conference
15:00 HKT/SGT (7:00 UTC). European Central Bank non-monetary policy meeting
Pay TVIn case you missed it, here's the latest episode of CoinDesk TV's "First Mover" show:
Nasdaq's Latest Heavyweights to Announce Major Crypto Push
Institutional interest in cryptocurrencies is highlighted following a series of announcements of new cryptocurrency services from Nasdaq, Charles Schwab, Citadel Securities and Fidelity Digital Assets. Jamil Nazarali, CEO of EDX Markets, which will handle the exchange for institutional clients, joined First Mover to discuss the developments. Other guests included Hashdex's Bruno Ramos de Souza and Marek Olszewski, co-founder of Celo.
the valuesTrading app Robinhood Markets is adding USDC to its crypto offering as users can transfer the stablecoin from the Polygon and Ethereum networks on Wednesday.
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This story originally appeared on Coindesk