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CRYPTO DIGEST: Bitcoin Dips, Binance and SEC Updates, a16z in London, Brazil Opens to Crypto, Apple Rejects Bitcoin

Bitcoin dip price crypto
By Nicolo Finazzi
Nicolo Finazzi

7 Min

June 15, 2023

Bitcoin Dips Below $25K for the First Time in 3 Months

Key Highlights:

  • Bitcoin's price drops below $25,000, reaching a three-month low.
  • The decline follows the Federal Reserve's decision to pause interest rates temporarily.
  • Uncertainty about interest rate hikes contributes to the downward pressure on BTC's value.

Bitcoin, the world's largest cryptocurrency, recently faced a significant drop in its price, dipping below the $25,000 mark for the first time in three months. The sudden decline came as the Federal Reserve made a significant announcement regarding interest rates.

As the Federal Reserve pressed pause on interest rates, the cryptocurrency market experienced a notable impact. Bitcoin, known for its volatility, plummeted by 4% in response to the announcement. The decision by the Federal Reserve to temporarily halt interest rates was coupled with a forecast of potential rate hikes later in the year. This uncertainty contributed to the downward pressure on Bitcoin's value.

The dip below $25,000 marks a significant hit for Bitcoin, which had been showing relative stability in recent weeks. This sudden drop has reignited discussions about the potential factors influencing the cryptocurrency market, including macroeconomic events and regulatory developments.

While market fluctuations are not uncommon in the crypto space, the recent dip has caught the attention of investors and enthusiasts. Some investors (e.g., Michael Saylor) believe that the decline presents a buying opportunity, while others approach the situation with caution.

Binance and SEC Ordered to Begin Negotiations Amid Asset Freeze Dispute

Key Highlights:

  • Binance and the SEC have been directed by a federal judge to initiate negotiations.
  • The discussions hold significant implications for the future of Binance's operations in the US.
  • The asset freeze and civil fraud lawsuit filed by the SEC have added intensity to the legal battle.

In a significant development in the legal battle between Binance, the world's largest cryptocurrency exchange, and the Securities and Exchange Commission (SEC), a federal judge has ordered both parties to commence negotiations. The directive comes as Binance faces an asset freeze and civil fraud lawsuit filed by the SEC. Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia also expressed skepticism about the SEC’s use of its enforcement powers to regulate the crypto world, calling it “inefficient and cumbersome”.

The negotiations carry immense weight, as they could potentially determine the future of Binance's operations in the United States. With the asset freeze causing disruptions, both Binance and the SEC are expected to engage in discussions aimed at finding a resolution. Just as the rest of the world keeps making progress on crypto regulation, the US seems stuck on legal disputes.

The outcome of the negotiations will be closely watched by industry participants, investors, and enthusiasts alike. It remains to be seen whether a compromise can be reached between Binance and the SEC, or if the legal battle will continue to escalate.

US VC Giant Andreessen Horowitz Sets up London Office for Global Expansion

Key Highlights:

  • Andreessen Horowitz establishes its first international office in London.
  • London's crypto-friendly regulations attract a16z to explore market opportunities in Europe.
  • The move aims to strengthen the global presence and foster partnerships with European startups.

Andreessen Horowitz, the renowned VC firm with $35 billion in assets under management, is expanding its presence beyond the United States with the establishment of its first international office in London. This strategic move comes as the company aims to tap into the growing opportunities in the global tech and crypto landscape. Moreover, the present situation in the US dominated by the SEC and its attack on cryptocurrency exchanges Coinbase and Binance, likely accelerated the expansion process.

London, renowned for its thriving tech ecosystem and forward-thinking regulatory environment, was a natural choice for Andreessen Horowitz's expansion. The city's predictable crypto regulations provide a conducive environment for innovative projects and startups to flourish. With its new office in London, a16z aims to actively engage with promising European startups and contribute to the region's tech and blockchain ecosystem.

As part of the move, a16z intends to establish the upcoming edition of its Crypto Startup School accelerator program in the United Kingdom by the spring of 2024. Additionally, the firm revealed a $43 million investment in Gensyn, a British startup that combines crypto and artificial intelligence, described as an innovative "Airbnb for GPUs." The London office will be under the leadership of Sriram Krishnan, a general partner at a16z.

Brazil Empowers Central Bank and Securities Commission to Regulate Crypto Market

Key Highlights:

  • Brazil appoints Central Bank and Securities Commission as crypto market regulators
  • The move aims to provide clarity, investor protection, and foster innovation in the crypto industry.
  • Brazil's move is in clear contrast with the US approach.

In stark contrast to the regulatory challenges faced by the United States, Brazil is making strides in creating a clear framework for the cryptocurrency industry. On Wednesday, Brazil's President Luiz Inácio Lula da Silva, commonly known as Lula, approved a new law granting regulatory authority over cryptocurrencies to the country's central bank. This significant development is expected to stimulate growth and create opportunities for the cryptocurrency industry in Brazil, which boasts the largest economy in Latin America.

By designating a dedicated official to oversee securities related to digital assets, Brazil aims to strike a balance between regulation and fostering a favorable environment for crypto businesses to thrive.

While the United States continues to grapple with regulatory uncertainty and a fragmented approach to cryptocurrency oversight, Brazil's proactive stance positions it as an attractive destination for crypto companies seeking regulatory clarity and a supportive ecosystem.

Apple Rejects Another Bitcoin App Amidst Ongoing Scrutiny

Key Highlights:

  • Apple rejects a Bitcoin app from its App Store, stifling cryptocurrency innovation.
  • The rejection highlights Apple's cautious stance on the crypto ecosystem.
  • Influential figures like Elon Musk and Jack Dorsey criticize Apple's decision.

In a disappointing turn of events for the crypto community, Apple has rejected yet another Bitcoin app, reinforcing its cautious approach towards digital currencies. The rejected app, Zeus, aimed to provide users with a secure and convenient Bitcoin wallet, and its founder Evan Kaloudis announce on Twitter that the new version of the wallet ‘0.7.6’ has not been approved by Apple, which pointed out:

Your app facilitates the transmission of a virtual currency but was not submitted by a corresponding exchange or recognized financial institution“.

This rejection highlights the ongoing challenges faced by cryptocurrency developers in gaining widespread acceptance and integration with mainstream platforms. The decision by Apple has sparked criticism from influential figures, who believe in the transformative potential of cryptocurrencies. For instance, Twitter founder and Square CEO Jack Dorsey criticized the decision and called Apple’s move “Incorrect.” He further went on to question Apple CEO Tim Cook, “Why limit people sending Bitcoin to each other?”.

Furthermore, Twitter executive Elon Musk tweeted: “If Apple competes against the whole world, Apple will have the whole world against it. This is not a winning scenario“.

The rejection of the Zeus app underscores the need for open dialogue and collaboration between technology giants and the crypto community to foster innovation and drive the future of finance.