Market
Operation Choke Point 2.0 in Crosshairs as Trump Backs Crypto
Donald Trump pledged to end the alleged Operation Choke Point 2.0 if re-elected. Central to this effort is David Sacks, one of the primary appointees serving as “crypto czar” in Trump’s pro-crypto push.
In a recent post on X (Twitter), Sacks vowed to investigate and reverse policies seen as undermining the cryptocurrency sector. This move aligns with Trump’s commitment to ensuring fair banking practices for digital asset companies.
David Sacks to Tackle Targeted Suppression against Banks
Operation Choke Point 2.0 refers to an alleged US government strategy to curtail cryptocurrency activity by leveraging banking regulations. The initiative came into focus in 2022 when the Federal Deposit Insurance Corporation (FDIC) reportedly pressured financial institutions to limit services to crypto firms. Sacks says this needs to be addressed.
“There are too many stories of people being hurt by Operation Choke Point 2.0. It needs to be looked at,” he said.
Coinbase recently substantiated these claims by releasing letters showing that the FDIC instructed banks to pause or cease crypto-related banking activities. Paul Grewal, Coinbase’s Chief Legal Officer, described the findings as evidence that this was not just a conspiracy theory. He committed that Coinbase would continue pursuing transparency through legal means.
“Law-abiding American businesses should be able to access banking services without government interference,” Grewal emphasized.
Meanwhile, one of the most high-profile casualties of these policies was Silvergate Bank, once a cornerstone of crypto banking. Chris Lane, a former executive at Silvergate, described how the bank faced regulatory scrutiny despite its solvency. Lane accused regulators of abruptly withdrawing support, effectively dismantling the business his team had built over 13 years.
“When FTX went down, Silvergate survived a 70% run on deposits. A typical bank cannot survive 20%. FTX didn’t kill us, our regulators did…Regulators came in sometime in Spring 2023 and severely limited the amount of US dollar deposits we could hold for digital asset clients There went our entire business model,” Lane stated.
The bank’s demise, he claimed, was a direct result of targeted restrictions on its ability to serve cryptocurrency clients. Against this backdrop, David Sacks, Trump’s crypto Czar, has called for a thorough investigation into Operation Choke Point 2.0.
Experts Join Trump’s Crypto-Friendly Vision
With this commitment, Sacks joins others like Charles Hoskinson, founder of Cardano, who urges the crypto industry to unite against regulatory overreach. Hoskinson announced plans to collaborate with the incoming Trump administration to construct bipartisan policies that balance innovation with accountability.
Bitcoin investor Wayne Vaughn shares Hoskinson’s sentiment, criticizing the weaponization of the banking system.
“The US government shouldn’t weaponize the banking system against its political opponents and people that are deemed otherwise undesirable,” Vaughn asserted.
Trump’s approach to appointing pro-crypto individuals for his incumbent administration aims to deconstruct the current administration’s establishments, which include figures like Brian Deese, the alleged architect of Operation Choke Point 2.0.
By appointing pro-crypto advocates to his transition team, the president-elect aims to foster a regulatory environment conducive to digital innovation.
Crypto analysts and other key figures view the 2024 election as a pivotal moment for the industry. As crypto markets await clarity, Trump’s promises and Sacks’ leadership could reshape the regulatory market in the US for digital assets.
“The incoming administration has the opportunity to reverse so many poor crypto policy decisions. Chief among them is politically motivated regulatory decisions like Operation Choke Point 2.0,” Grewal said.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Is a Drop Below $0.92 Inevitable?
Cardano’s recent sideways price action has led to a surge in demand for short positions among futures traders.
As the coin’s momentum slows, traders are increasingly betting on a price decline, signaling a bearish sentiment toward ADA.
Cardano Traders Bet on a Price Decline
According to Coinglass, ADA’s Long/Short Ratio is at a monthly low of 0.82, indicating a high demand for short positions.
An asset’s Long/Short Ratio compares the number of its long (buy) positions to short (sell) positions in a market. As with ADA, when the ratio is below one, more traders are betting on the price falling (shorting) rather than rising. If short sellers continue to dominate, this can increase the downward pressure on the asset’s price.
Additionally, ADA’s Weighted Sentiment remains negative, currently standing at -0.074, reinforcing the bearish outlook for the altcoin.
Weighted Sentiment gauges the overall market bias by analyzing the volume and tone of social media mentions. A negative value signals growing skepticism among investors, often leading to reduced trading activity and downward pressure on the asset’s price.
Notably, ADA whales have reduced their trading activity over the past week, with the coin’s large holders’ netflow dropping by 90.29%, according to IntoTheBlock.
Large holders, defined as addresses holding more than 0.1% of an asset’s circulating supply, play a significant role in market movements. A decline in their netflow indicates reduced buying activity, adding to the downward pressure on ADA’s price.
ADA Price Prediction: Recovery to $1 or Decline to $0.80?
ADA is currently trading at $0.98, hovering just above its support level of $0.90. If bearish pressure intensifies, the price may test this support. A failure to hold at $0.90 could see ADA’s decline extend further, potentially dropping to $0.80.
Conversely, if buying activity resurges, ADA’s price could stabilize above the $1 mark.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Will It Smash Another ATH?
Bitcoin price started a fresh increase above the $104,000 zone. BTC is consolidating above $105,000 and might aim for a new all-time high.
- Bitcoin started a decent increase above the $102,500 resistance zone.
- The price is trading above $104,500 and the 100 hourly Simple moving average.
- There was a break above a connecting bearish trend line with resistance at $104,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start another increase if it stays above the $103,500 support zone.
Bitcoin Price Regains Traction
Bitcoin price started a decent upward move above the $102,500 zone. BTC was able to climb above the $103,500 and $104,000 levels.
The bulls even pushed the price above the $105,000 level. Besides, there was a break above a connecting bearish trend line with resistance at $104,000 on the hourly chart of the BTC/USD pair. The pair surpassed the 50% Fib retracement level of the downward move from the $109,112 swing high to the $100,114 low.
Bitcoin price is now trading above $104,500 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $107,000 level. It is close to the 76.4% Fib retracement level of the downward move from the $109,112 swing high to the $100,114 low.
The first key resistance is near the $107,500 level. A clear move above the $107,500 resistance might send the price higher. The next key resistance could be $109,000.
A close above the $109,000 resistance might send the price further higher. In the stated case, the price could rise and test the $110,000 resistance level and a new all-time high. Any more gains might send the price toward the $112,500 level.
Downside Correction In BTC?
If Bitcoin fails to rise above the $107,000 resistance zone, it could start a downside correction. Immediate support on the downside is near the $104,500 level. The first major support is near the $103,500 level.
The next support is now near the $102,800 zone. Any more losses might send the price toward the $100,500 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $104,500, followed by $103,500.
Major Resistance Levels – $107,000 and $108,500.
Market
Trump’s $500 Billion Stargate Venture Sparks AI Crypto Boom
AI tokens surged on Wednesday after President Donald Trump unveiled a new joint venture to invest up to $500 billion in artificial intelligence infrastructure.
The partnership involves major players such as OpenAI, Oracle, and SoftBank and will form a new entity called Stargate.
Market Focuses on AI Coins as Trump’s Stargate Initiative Gains Traction
The Stargate Project will invest $500 billion over the next four years, building new AI infrastructure in the US. The venture will focus on developing crucial data centers and the electricity generation required to power the AI sector.
The announcement has already had a noticeable impact on the broader market, particularly in AI-related cryptocurrencies. Following the news, the market capitalization of AI tokens surged by 9%, reaching $45.83 billion at press time, according to CoinGecko.
In fact, the market cap of AI agent tokens alone rose by 13% to hit $14.9 billion.
AI agent tokens, such as Virtuals Protocol, AIXBT, and AI16Z, saw impressive gains. Virtuals Protocol rose by over 13% in the past 24 hours, while AI16Z experienced a remarkable 36% increase. AIXBT token rose by 27% over the same period.
The surge in AI tokens reflects a broader shift in market interest as investors move capital towards more “sentient” tokens.
“Capital is rotating back from static memes to sentient coins,” AI researcher S4mmy commented on Twitter.
The analyst added that Fartcoin and AIXBT are sustaining their “mindshare dominance,” but face declining market caps after a heated run. Commenting on Virtuals Protocol, he said it continues to solidify its position as a backbone of the Agentic infrastructure.
Moreover, analyst CyrilXBT said he believes “AI will create generational wealth in 2025.”
“People said Bitcoin was a joke. People said AI agents are a gimmick. Guess what else they’ll say? ‘Why didn’t I listen when generational wealth was staring me in the face?,” CyrilXBT commented.
The shift towards AI is particularly interesting, given the trend of investments a few days back. Capital was flowing into Donald Trump-related tokens, such as TRUMP and MELANIA, which have seen significant volatility.
However, BeInCrypto reported that smart money traders are now focusing on AI tokens after the hype around TRUMP faded. According to data from Nansen, a substantial amount of VIRTUAL, FARTCOIN, and AIXBT tokens are held by smart money.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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