Gate.io Blog Daily News | BTC Fell Below $41K This Morning; South Korea Announced the Virtual Asset User Protection Act; Layer2 Network TVL Reached A New High

Daily News | BTC Fell Below $41K This Morning; South Korea Announced the Virtual Asset User Protection Act; Layer2 Network TVL Reached A New High

12 December 11:54

[//]:content-type-MARKDOWN-DONOT-DELETE
![](https://gimg2.gateimg.com/image/article/17023644221_7.png)
## Crypto Daily Digest: Bitcoin fell below $41,000 this morning, South Korea announced the "Virtual Asset User Protection Act"
Due to market expectations for <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> spot ETFs and the easing of the Federal Reserve's interest rate hike policy, Bitcoin experienced a significant upward trend last week, rising from a peak of $39428 to $44726.8, with a maximum increase of 13.43%. Yesterday, the price of Bitcoin fell briefly from $43700 to $40200, with a maximum daily decline of 7.7%, marking the largest daily decline since the current upward trend.

On December 12th, according to Gate.io market data, Bitcoin fell below $41,000 in the early hours of today, hitting a drop of $40222. It is now quoted at $41183, a 24-hour decline of 5.77%.

Coinglass data shows that in the past 24 hours, the crypto market has seen a total of $522 million in net contracts sold out, with a total of 129027 people sold out. Among them, multiple orders sold out $454 million, and short orders sold out $68.3195 million. By currency, BTC has a liquidation of approximately $150 million, ETH has a liquidation of approximately $100 million, followed by <a href="/price/link-ln" target="_blank" class="blog_inner_link">LINK</a> with a liquidation amount of nearly $38 million, SOL with a liquidation amount of approximately $24 million, and DOGE with a liquidation amount of approximately $11.7 million.

The crypto market, like any market in the economy, fluctuates according to market sentiment and shows an upward or downward trend. In this round of the weekly chart, there was not the slightest pullback, and the sentiment of retail investors in the market began to FOMO. Consensus was maintained on ETFs, and various Altcoins, hot topics and in_script_ions began to be pursued.

Analysis suggests that this wave of decline is more inclined to kill leverage and squeeze it out of the market, rather than ending the market, laying a more solid foundation for the ultimate rise. The overall sentiment in the market is still upward, and most believe that this is only a dormant period before the rise.

But it is not ruled out that investors will know any bearish news in advance, and the focus is still on the trend of the US stock market after the opening tonight. When a second bottom appears, it confirms the bottom.

There is new news regarding regulation in South Korea. According to the Financial Services Commission of South Korea, it has recently released a legislative notice regarding the implementation of laws such as the Virtual Asset User Protection Act and regulatory provisions.  This law aims to protect users of virtual assets and establish a sound trading order in the virtual asset market. It defines virtual assets, excludes objects from virtual assets, and stipulates that virtual asset operators must safely safeguard and manage user deposits and virtual assets. The law also sets the basis for criminal penalties and fines for unfair trading of virtual assets such as the use of undisclosed important information and market manipulation.

The implementation order and regulatory regulations specify specific matters authorized by law, including: 1) adding objects excluded from virtual assets; 2) Specify the management organization and operational methods for user deposits; 3) Set a storage ratio of 80% for Cold Wallets. In addition, it also stipulates the inclusion or reserve standards for insurance and coinsurance, as well as the prohibition of the use of non-public important information and the reasons for allowing the blocking of deposits and withdrawals related to virtual assets, as well as the procedures for imposing fines and the calculation methods for improper gains.

The formulation of this implementation order and regulatory regulations is expected to be announced through legislation from December 11, 2023 to January 22, 2024, and will be implemented on July 19, 2024 after being reviewed by the State Administration of Taxation and other procedures.

On December 12th, according to The Block, the International Football Federation (FIFA) will launch a certain number of digital collectibles later this week, giving holders the opportunity to watch the final of the 2026 World Cup.

The relevant statement states that in the initial release, 100 digital collectibles will be provided. These will be the rarest collectibles, providing an opportunity to secure tickets to the 2026 FIFA World Cup final. In addition, 900 other digital collectibles will be released on the <a href="/price/polygon-matic" target="_blank" class="blog_inner_link">Polygon</a> network and made available on the OpenSea platform.

FIFA's NFTs were originally cast on <a href="/price/algorand-algo" target="_blank" class="blog_inner_link">Algorand</a>, but are now planned to be transferred to Polygon in the upcoming second phase. The statement states that future releases of FIFA digital collectibles will also use Polygon.

According to L2BEAT data, the total locked in value (TVL) of the <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> Layer2 network has exceeded $16 billion, reaching a historic high of $16.17 billion, an increase of 7.56% in the past seven days.

Among them, the Scroll network TVL was $49.66 million, an increase of 21.51% in the past week; Linea TVL was $150 million, down 2.43% in the past week; Starknet TVL was $141 million, down 12.79% in the past week.

According to a report by Fortune Business Insights, the blockchain gaming market is expected to reach $614.91 billion by 2030, with a <a href="/price/compound-comp" target="_blank" class="blog_inner_link">Compound</a> annual growth rate of 21.8% for the forecast period from 2023 to 2030, according to Globeewswire.

## Today’s Main Token Trends
### BTC
![](https://gimg2.gateimg.com/image/article/1702364464BTC.png)
After seven consecutive weekly gains since the opening, there was a quick recovery after a bearish retracement to the $40,400 support level. This morning, BTC once again surged towards the $42,015 resistance level. In the short term, attention should be paid to whether it retraces to the $42,000 support level. It is expected to continue oscillating today, making it a good opportunity for low-level positions.

### ETH
![](https://gimg2.gateimg.com/image/article/1702364486ETH.png)
Last week's upward target of $2,381 almost entirely met, reaching a high of $2,386. This week will continue to test the $2,135 support level, with the lower levels at $2,037 and $1,951 considered bullish retracement. Short-term bearish and long-term bullish trends are anticipated.

### AVAX
![](https://gimg2.gateimg.com/image/article/1702364508AVAX.png)
After establishing a position at $30.91 last week, surpassing the first target of $38.36, it is expected to continue upward to $50.47 this week. Hold a long position, and for aggressive traders, consider maintaining at $38.72. Short-term risk-reward ratio is attractive, with a long-term focus on historical highs.

## Macro: Gold prices fall, US stocks rise, Goldman Sachs expects to cut interest rates twice next year
On Monday, the US Treasury yield gave up its intraday gains after the 10-year Treasury auction, and the 10-year Treasury yield closed at 4.237%; The two-year US Treasury yield, which is more sensitive to the Federal Reserve's policy interest rates, closed at 4.71%. The US dollar index stabilized above the 104 level and ultimately closed up 0.087% at 104.1. The three major US stock indexes collectively closed higher, with the Dow Jones up 0.4%, the S&P 500 up 0.39%, and the Nasdaq up 0.2%.

As investors waited for guidance from CPI data and the Federal Reserve's interest rate decision, spot gold briefly fell below the 1980 level and ultimately closed down 1.27% at $1981.65 per ounce, reaching a new low since November 21st; Spot silver closed down 1.09% at $22.82 per ounce.

International crude oil closed higher for the third consecutive trading day, further rebounding from a 5-month low. The WTI crude oil market approached the 72 mark in the upward direction and then turned sharply downwards, then rebounded again, ultimately closing up 0.22% at $71.49 per barrel; Brent crude oil rose 0.18% to $76.24 per barrel.

Goldman Sachs stated that it expects the Federal Reserve to cut interest rates twice next year, and has moved forward the expectation of the first rate cut to the third quarter on the grounds of cooling inflation. Previously, Goldman Sachs predicted that the United States would start cutting interest rates in December next year. Goldman Sachs economist Jan Hatzius said in a report, "healthy growth and labor market data indicate that interest rate cuts are not urgent... but better inflation news does suggest that normalizing interest rate cuts may come earlier."

This week is a macro week, with multiple important central banks, including the Federal Reserve, announcing interest rate decisions. Currently, most of the forecast data supports not raising interest rates. Major asset classes are pricing adjustments for the upcoming rate hike cycle, and cryptocurrencies are also experiencing continuous inflows of funds. Everyone can stay tuned.

Monday, December 11th: multiple US presidential candidates will participate in a forum organized by Coinbase Crypto Advocacy;

Tuesday, December 12th: the United States announces its November CPI; South African regulatory authorities have received 128 applications for encryption licenses and plan to review 36 of them on December 12th;

Wednesday, December 13th: the next hearing on the FTX bankruptcy case will be held on December 13th.

Thursday, December 14th: Federal Reserve interest rate decision; Bank of England interest rate determination; Eurozone European Central Bank interest rate decision; The number of initial claims for unemployment benefits in the United States for the week; Retail sales data for November in the United States.

Friday, December 15th: Binance will cease supporting BUSD on December 15th.

<div class="blog-details-info">
<div>Author:**Byron B.**, Gate.io Researcher
<div>Translator:Joy Z.
<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>

BTC/USDT + 1.99%

ETH/USDT + 5.02%

GT/USDT + 1.91%

Crypto Daily Digest

Today’s Main Token Trends

Macro

Unbox Your Luck and Get a $6666 Prize

Daily News | BTC Fell Below $41K This Morning; South Korea Announced the Virtual Asset User Protection Act; Layer2 Network TVL Reached A New High

Select language and region

Fiat Currencies