Cryptocurrency prices plummeted on Sunday, April 14, as the conflict between Iran and Israel intensified.
Last week, the Securities and Exchange Commission sent Uniswap a notice of Wells’ intention to sue the exchange amid heightened regulatory efforts. Meanwhile, FTX founder Sam Bankman-Fried is seeking to appeal his sentence.
the calm before the storm
- Cryptocurrency markets had a favorable start to the week on April 8, with global cryptocurrency market capitalization surging 3.6% to a three-month high of $2.62 trillion, while Bitcoin (BTC) closed at $72,000 after a 3% surge. The dollar price threshold has been regained.
- BTC reached an all-time high on April 8 after rising 4% to offset losses from the previous correction. However, the top cryptocurrency asset recorded a price drop the next day, falling 3.45% to $68,000 on April 9 as US inflation data turned hotter than expected.
- This decline was short-lived as Bitcoin eventually rose 2.15% on April 10 to regain the $70,000 area. This recovery drive has continued despite a notable decline in whale activity.
- An April 9 report confirms that BitMEX founder Hayes remains skeptical about Bitcoin’s ability to recover and maintain the all-time highs it recently set as the halving approaches. Hayes predicted that BTC could fall just before and after the halving.
Iran-Israel conflict deepens market crash
- As the week progressed, the bears regained control of the scene. Bitcoin fell to the $65,000 level for the first time in a week on April 12. Bitcoin’s decline led to a broader market collapse, with the value of the global cryptocurrency falling to $2.2 trillion on April 12.
- Tensions surrounding the Iran-Israel conflict further exacerbated the market decline. This led to massive liquidations across markets, with more than $860 million flowing out of derivatives markets.
- Iran eventually launched more than 100 drones toward Israel on April 13, further heightening tensions. Following this unprecedented attack, the cryptocurrency market suffered an even steeper decline, with Bitcoin falling to a one-month low of $60,660 on April 13.
- Despite the liquidation, renowned computer intelligence consultant and Bitcoin advocate Edward Snowden emphasized that there is no reason to panic.
Uniswap receives Wells notification
- As the cryptocurrency community grapples with price volatility, the US SEC has explored the possibility of leveling rates for Ethereum-based decentralized exchange Uniswap, the world’s largest DEX.
- In particular, Uniswap said it received a Wealth notice from the SEC on April 10, and the securities regulator announced its intention to take legal action against the decentralized exchange.
- Uniswap founder Hayden Adams expressed disappointment with the move, but emphasized that he and his team plan to fight. Following the development report, the exchange’s native token, UNI, fell 17% to $9.27 as the sell-off intensified.
US regulatory environment
- This week, the broader U.S. cryptocurrency regulatory landscape came into the spotlight. Reports suggest the Treasury Department is seeking greater authority to crack down on the use of cryptocurrencies by sanctioned entities such as North Korea, Russia, and Iran.
- US Senator Kirsten Gillibrand said this week that Congress is already engaged in discussions on introducing bipartisan legislation to regulate stablecoins. This comes shortly after Ripple announced its intention to launch a stablecoin this year.
- While federal agencies and Congress push for cryptocurrency regulation, former Ethereum advisor Steven Nerayoff is suing the U.S. government, seeking $9.6 billion in damages for alleged mistreatment by government agencies over the past four years. A lawsuit was commenced against the
Global regulatory efforts
- In addition to the United States, regulatory efforts have also dominated other jurisdictions. Russia’s central bank this week urged lawmakers to speed up the introduction of a bull bill to regulate the use of cryptocurrencies, especially international payments, amid U.S. sanctions.
- Meanwhile, in Hong Kong, reports this week suggest cryptocurrency exchanges are grappling with regulatory uncertainty. Due to this prevailing environment, several companies are now looking to relocate abroad.
- The British Columbia provincial government is looking for ways to address the high energy consumption associated with cryptocurrency mining operations. To achieve this, the region is seeking to leverage legislative amendments to regulate the cryptocurrency mining industry.
Bankman-Fried appeal, extradition approved
- Bankman-Fried’s lawyers argued in an April 8 letter to Judge Lewis Kaplan that it would be more convenient to keep Bankman-Fried in a temporary detention center in Brooklyn until her appeal is completed.
- Bankman-Fried was sentenced to 25 years in prison. Former FTX executive Ryan Salame will be sentenced on May 28 after pleading guilty on April 10. Other former FTX executives, including Gary Wang and Caroline Ellison, are also awaiting sentencing.
- Amid a roller coaster ride, the extradition of Terra founder Do Kwon has been approved again by a Montenegrin court. Recently, Montenegrin Minister of Justice Andrej Milovic plans to decide whether to extradite the Korean developer to his home country or to the United States.
Solana is experiencing congestion
- This week Solana witnessed a bittersweet moment due to increased network adoption and congestion issues. CoinGecko revealed on April 8 that Solana’s DEX accounts for the majority of trading volume on the DeFi scene.
- This is primarily due to increased distribution and interest in meme coins on Solana following the success of Bonk (BONK) and dogwifhat (WIF). However, as network activity increased, congestion issues emerged. Anza, the Solana developer team, has released an update to address this issue.