Daily News | Bitcoin's Bull Run, Ethereum's Staking Shake-up, and Regulator Concerns; TradFi Flat as Fed Advocates Rate Hikes

2023-04-19, 01:05

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## Crypto Daily Digest: <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> Signals Major Bull Market, <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> Shifts Staking Share, SEC Defends Tough Stance, BoE Suggests Limits on Stablecoins

On <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>, the reserve-risk multiple, an indicator of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>'s price, has turned positive for the first time since October 2021, signaling the beginning of a major bull market. Compared to long-term holders who resist liquidating their holdings, the reserve-risk multiple compares the incentive to sell at the current market price, and has previously predicted major bullish and bearish trends, with previous crossovers above zero paving the way for sharp price rallies. This means that <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>'s recent 80% year-to-date rally to 10-month highs above $30,000 may just be the first milestone in its upward journey.

On <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a>, following its recent Shapella upgrade, there has been a shift in the market share among crypto staking service providers, benefitting decentralized finance (DeFi) applications, with Lido, <a href="/price/rocket-pool-rpl" target="_blank" class="blog_inner_link">Rocket Pool</a>, and <a href="/price/frax-frax" target="_blank" class="blog_inner_link">Frax</a> Ether seeing a surge in investments. However, concerns have been raised about Lido's status as the largest holder of staked Ether, which could lead some stakers to switch to alternative liquid-staking services. Initially, there were more withdrawals of staked Ether than new deposits, but the situation has since moderated.

Meanwhile, defending the regulator's tough stance on crypto markets, SEC Chair Gary Gensler stated that many crypto tokens are unregistered securities and the industry has developed around non-compliance. Gensler also warned that the US capital markets could face significant challenges if Congress doesn't extend the debt ceiling. Ahead of his hearing with the GOP-controlled House Financial Services Committee, Republicans on the panel criticized the SEC's digital-asset regulation and Gensler's calls for crypto trading platforms to register with the agency.

Elsewhere, balancing the need for innovation with concerns over financial stability, Bank of England Deputy Governor Jon Cunliffe suggested that regulators could impose limits on Stablecoins used for payments. Although Stablecoins offer greater efficiency and functionality in payments, they currently do not fit into any regulatory framework. Cunliffe stated that regulators need to decide whether there should be limits on Stablecoins used for payments and that Stablecoins would need to be backed by high-quality and liquid assets to ensure they could be redeemed for fiat money on demand.

## Ether (ETH) $2102 (+0.02%) - Neutral Outlook

![](https://gimg2.gateimg.com/image/article/1681866297Untitled0419 1.png)

**Overview:**

- ***Closest hourly support zone: 2099 - 2081***
- ***Closest hourly resistance zone: 2106 - 2120***
- ***Key Level: 2075 (Weekly Close of Mar. 29 - Apr. 05, 2021)***

<br>**Hourly Resistance zones**

1. 2106 - 2120
2. 2128 - 2151
3. 2167 - 2205

<br>**Hourly Support zones**

1. 2099 - 2081
2. 2072 - 2059
3. 2051 - 2041

## Macro: Gold Halts Losing Streak, Asian Equities Subdued as Fed Advocates Rate Hikes

On Tuesday, stock markets were largely unchanged as traders assessed earnings reports from US banks and statements from Federal Reserve officials advocating rate hikes to fight inflation. The S&P 500 index inched up 0.1%, and the Cboe Volatility Index reached its lowest point since January 2022. Tesla's Q1 results were awaited, while Netflix's share price declined in late trading after its subscriber growth and revenue outlook fell short of expectations. Two-year US yields slightly increased, but oil and gold remained mostly flat, with gold ending a two-day losing streak.

Meanwhile, in Asian equities, investors evaluated earnings reports and statements from Federal Reserve officials in favor of continuing rate hikes. Futures for Hong Kong's benchmark dropped 0.3%, and US futures dipped at the beginning of Asian trading. Two-year US yields held steady at 4.20%, while the rate on ten-year bonds declined slightly to 3.58%. Goldman Sachs fell, but Bank of America's shares rose following better-than-expected earnings, while Western Alliance Bancorp also enjoyed a surge in its share price after beating earnings estimates.

<div class="blog-details-info">
<div>Author:** Peter L. **, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>