Daily News | Crypto Shaken by SEC Lawsuits, Bank of Canada Rate Increase Heightens Market Uncertainty

2023-06-08, 00:47

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## Crypto Daily Digest: SEC Lawsuits, Coinbase's Staking Service, and UK's Ad Rules Shake the Crypto World

The recent lawsuits by the U.S. Securities and Exchange Commission (SEC) against major cryptocurrency exchanges Binance and Coinbase have had a significant impact on the cryptocurrency market. <a href="/pt-br/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> (BTC) experienced a 3.3% decline, but remained relatively stable compared to other cryptocurrencies. Altcoins such as <a href="/pt-br/price/bnb-bnb" target="_blank" class="blog_inner_link">BNB</a>, ADA, MATIC, and SOL suffered substantial drops, averaging around 8%. These lawsuits have created uncertainty and limited trading options for U.S. investors. The surge in global bond yields and indications of further tightening by central banks have also negatively affected digital asset markets, contributing to concerns among investors and Wall Street.

Meanwhile, despite the legal challenges faced by Coinbase, CEO Brian Armstrong announced that the exchange will continue operating its crypto staking service. Armstrong highlighted that the staking service accounts for approximately 3% of Coinbase's overall net revenue. The SEC sued Coinbase for various alleged violations, including the sale of unregistered securities. Additionally, a coalition of ten states accused Coinbase's staking program of violating state securities laws.

In the UK, the Financial Conduct Authority (FCA) is preparing to introduce stringent rules for cryptocurrency advertising once the relevant legislation is finalized. Under these rules, cryptocurrencies will be classified as "restricted mass market investments." Advertisements and promotions for crypto assets will be required to include clear risk warnings, while incentives such as referral bonuses will be prohibited. The FCA's aim is to provide consumers with the necessary information to make informed decisions and prevent harm. Despite some disagreement during the consultation process, the FCA will move forward with the proposed measures. The FCA has also released guidance to ensure firms understand the implications of the requirements for crypto asset promotions. Failure to comply with the new rules may result in imprisonment, fines, or both. Starting from October 8th, crypto firms will have the ability to approve their own advertisements.

## Bitcoin (BTC) $26,347 (+0.01%) - Neutral Outlook

![](https://gimg2.gateimg.com/image/article/1686185217Untitled0608 1.png)

Building upon the previous observation made yesterday, there has been a slight decrease in volume. However, Bitcoin (BTC) has managed to find support near the 61.8% Fibonacci Retracement level, which was calculated from the previous day's data and amounted to 26,280. This finding suggests that the market's unpredictable fluctuations are likely to persist until the daily 200EMA (Exponential Moving Average) has undergone thorough testing. Furthermore, it is worth noting that there exists a substantial demand zone ranging from 25,180 to 24,570, situated just below the 200EMA.

**Overview:**

- ***Closest daily support zone: 26380 - 25818***
- ***Closest daily resistance zone: 26700 - 27260***
- ***Key Level: 25243 (Daily 200EMA)***

<br>**Daily Resistance zones**

1. 26700 - 27260
2. 27790 - 28420
3. 29096 - 29885

<br> **Dailyy Support zones**

1. 26380 - 25818
2. 25360 - 25240
3. 24570 - 24270

## Macro: Bank of Canada's Rate Increase Sends Shockwaves through Wall Street and Asian Markets

Asian stocks are poised to open lower as a result of a decline on Wall Street. The market sentiment was affected by the surprise rate increase by the Bank of Canada, leading traders to speculate that the Federal Reserve might also tighten its policies. Tech shares were hit hard, causing the S&P 500 to fall for a second consecutive day and the Nasdaq 100 to experience its worst day since April.

The decline in US stocks was accompanied by a decrease in US Treasuries across the yield curve. The benchmark 10-year yield rose by 14 basis points to reach 3.8%. This increase in yields was driven by traders' heightened expectations of a Federal Reserve rate hike. At one point, interest rate swaps fully priced in a quarter-point hike for the July meeting, while the odds for an increase in the upcoming decision were still below 40%.

The Bank of Canada's unexpected move to raise rates caught the market off guard and added to the recent uncertainty stemming from the Reserve Bank of Australia's earlier rate increase. The decision by these central banks highlights the challenges faced by policymakers in finding the right balance for monetary policy amid global economic uncertainties.

Ray Dalio, the billionaire founder of Bridgewater Associates, shared his perspective on the economic landscape. While he doesn't anticipate significant interest rate increases, he believes the economy will worsen as excessive debt and a shortage of buyers signal the beginning of a late-stage debt crisis.

Looking ahead, market participants are closely watching the Reserve Bank of India, which is expected to keep rates unchanged. However, there may be a shift in the central bank's policy stance to neutral, accompanied by hawkish rhetoric reflecting rising inflationary risks. In Japan, the final reading for the first-quarter GDP is set to be released, with expectations of a revision higher from the preliminary estimate. The euro area will also release its final reading later in the day.

<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>

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