Market
Congress to Vote on SAB 121 Legislation
House members will vote on President Joe Biden’s Staff Accounting Bulletin(SAB) 121 legislation on July 9 or 10. This is according to the weekly schedule posted by House Majority Leader Steve Scalise.
The cryptocurrency industry is in the spotlight in the US amidst this campaign, which involves the first standalone crypto bill to ever pass through both chambers of Congress.
Congress Prepares to Vote on Landmark Crypto Bill
According to the weekly schedule, the US House will prepare to vote on the SAB 121 legislation between Tuesday and Wednesday. The proposed rule would require entities that hold cryptocurrencies and report to the US Securities and Exchange Commission (SEC) to include those holdings on their balance sheets.
According to the US SEC, the SAB 121 legislation is “Non-binding staff guidance,” with the potential to improve customer disclosures. As it goes to the House, crypto proponents are anxious because of the implications of the bill passing.
With crypto custodial firms expected to report customer crypto holdings as liabilities, critics worry that this could deter banks from offering crypto services and stifle innovation.
“All that vote to KEEP SAB 121 are voting to INCREASE risk to investors,” economic freedom advocate Dave Weisberger wrote.
Weisberger supports Fox Business reporter Eleanor Terrett, who challenged disincentivizing banks and other “institutionally capable providers” from being custodians. In her opinion, having only a limited number of institutions providing custody of digital assets is risky. She says vetoing the SAB 121 would enhance this risk.
After a May resolution to repeal the law, the Biden administration chose to veto it anyway. This is despite it receiving bipartisan support from the House (228-182) and Senate (60-38).
Also Read: How Does Regulation Impact Crypto Marketing? A Complete Guide
Biden’s SAB 121 Veto, A Direct Affront?
As it stands, most Democrats are embracing the fact that over 21 million American citizens owned crypto in 2023. This represents a significant voting pool in an election year, and they may be swayed to vote against it as a political imperative in the upcoming elections.
Amid growing adoption, the cryptocurrency community now includes around 40% of American adults. If this group views Biden’s veto of SAB 121 as a direct affront, it could influence their voting decisions in the November election.
Overturning President Biden’s veto would require a two-thirds (2/3) majority from both houses of Congress. This will not be an easy feat, according to Head of Government Affairs at venture capital firm Paradigm, Alexander Grieve.
“Let us see if the House can rally a ⅔ vote to overturn the veto (steep hill to climb but not impossible given how bipartisan the FIT vote was,” Grieve noted.
Nevertheless, it is premature to rule out the possibility of the legislation passing. The House would need at least 290 members to support overturning Biden’s veto. This means around 62 more votes than the 228 that initially voted for it.
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
$1.6 Billion in Bitcoin and Ethereum Options Expire After Fed Cut
The crypto market is bracing for heightened volatility as nearly $1.6 billion worth of Bitcoin (BTC) and Ethereum (ETH) options expire today.
This event coincides with the Federal Reserve’s recent decision to cut interest rates by 50 basis points (bps).
Fed’s Decision Fuels the Crypto Market Rally Ahead of Major Options Expiry
According to data from Deribit, 20,037 Bitcoin options contracts worth approximately $1.26 billion will expire on September 20. These contracts have a put-to-call ratio of 0.85 and a maximum pain point of $58,500.
Similarly, Ethereum’s options market is set to expire with 125,046 contracts worth $308.16 million. Today’s expiring Ethereum contracts have a put-to-call ratio of 0.65, with a maximum pain point of $2,350.
Read more: An Introduction to Crypto Options Trading
In options trading, the maximum pain point refers to the price level at which option holders would suffer the largest losses. It is essentially the price at which the highest number of options (both calls and puts) would expire worthless, inflicting maximum financial “pain” on traders. On the other hand, the put-to-call ratio gauges market sentiment by comparing the number of put options (bets on price declines) to call options (bets on price increases).
Greeks. live’s recent analysis outlined the impact of the Fed’s decision to cut rates for today’s expiring crypto options contracts. The analysts noted that the Fed’s move was largely expected and aligned with macroeconomic forecasts.
“Implied volatility declined significantly across all major maturities, with ultra-short-term IVs falling by over 25%, as short-term short-selling expectations by large investors fell short,” they wrote.
Looking ahead, Greeks.live also noted that there will be another interest rate meeting on November 8 and December 19 this year, where the market expects a cumulative 100 bps rate cut. The next rate cut could coincide with the US election, increasing the likelihood of heightened market volatility.
BeInCrypto reported that this week’s rate cut has positively impacted the crypto market. Following the decision, Bitcoin surged from the $59,000 level to surpass the $63,500 mark.
Similarly, Ethereum also experienced a significant increase during the period. Data showed that ETH skyrocketed from $2,293 to as high as $2,482.
However, both assets have now stabilized. At the time of writing, Bitcoin and Ethereum are trading at $62,890 and $2,450, respectively.
Read more: 9 Best Crypto Options Trading Platforms
Despite the positive momentum, traders are advised to remain cautious. Historically, options expiration often leads to short-term instability in the market. The next few days will be crucial in determining whether Bitcoin and Ethereum can sustain their upward trends or if a period of correction is imminent.
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
Crypto Pundit Predicts Historical 9,468% Pump To $27
A new XRP price prediction by popular crypto pundit Egrag Crypto projects that the cryptocurrency could experience a historical price surge of about 9,468%. This predicted price gain would push XRP from its current price of $0.58 to $27, marking new All-Time Highs (ATHs).
XRP Price Forecasted To Pump To These Targets
Egrag Crypto has taken to X (formerly Twitter) to express his bullish outlook on XRP, predicting the cryptocurrency could surge as high as $27. On Wednesday, September 18, the crypto analyst shared a price chart illustrating a speculative breakdown of potential price movements for XRP using five distinctive color indicators to represent various price increase scenarios.
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Each of these scenarios has been carefully analyzed, grounded on historical price trends and past price pumps. Additionally, the color indicators — white, yellow, red, blue, and green, are all arranged respectively to represent the ascending price potential of XRP.
The white color indicator predicts that XRP is set to witness a 932% pump from the analyst’s predicted cycle low of $0.28. While this scenario is relatively conservative compared to other projections, if XRP can achieve the predicted pump, its price could surge to $3, nearing current all-time highs.
The yellow color indicator foresees XRP increasing by 1,538%, potentially driving its price to fresh all-time highs of $4.85. While this target is much higher than the white scenario, it is still within the realm of possibility if the cryptocurrency maintains a positive momentum.
The red indicator projects that XRP’s price will jump to $6.22, marking a 2,035% increase. This massive surge would signal a strong bull run for the cryptocurrency, likely reflecting the influence of major external factors such as mass adoption and more legal clarity.
In the blue color scenario, XRP is set to reach a higher price of $7.68, representing a whopping 2,536% increase. At this price, XRP would likely be seen as a major player in the market with potential long-term viability.
Finally, the green color indicator predicts that XRP could witness a 9,468% price surge, potentially driving the cryptocurrency to a staggering $27. Although this ambitious prediction would be a historic achievement, it remains a far-fetched possibility with XRP’s current market dynamics.
XRP Community Express Skepticism
While Egrag Crypto’s bullish projections for XRP raise the hopes of investors who have been HODLing the coin for years now despite its low value and persistent consolidation phase, many have also expressed doubts. A few crypto members criticized the analyst, calling him out for his overly bullish forecasts for XRP.
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Other members found the ambitious price predictions humorous, declaring that XRP is a “shit coin” and would remain so for a long period. Additionally, one crypto member underscored XRP’s long-term stagnant growth, highlighting that he had bought $1,000 worth of the cryptocurrency early last year but only accrued a profit of $100.
Featured image created with Dall.E, chart from Tradingview.com
Market
Crypto Brands Return to Sports Sponsorships With 26 Deals
Crypto sports sponsorship is cautiously rebounding in 2024, signaling a modest revival from the downturn following the boom in 2021. Despite these signs of recovery, the sector still falls short of reaching the highs witnessed during the peak year.
The increase in sports sponsorship also indicates a recovery of the crypto market. Brands are sponsoring sports teams because they have additional funds available for such marketing activities.
The crypto industry started heavily investing in sports sponsorship in 2021. During that year, the industry saw an unprecedented expansion with 42 new deals, representing 45.6% of the total 92 sports sponsorships from 2021 to 2024.
This growth was propelled by a bullish digital currency market, which led to significant agreements. Notably, Crypto.com secured a $700 million deal for the naming rights of Staples Center, renaming it to Crypto.com Arena.
Additionally, FTX entered into a $210 million sponsorship with esports group Team SoloMid. The aggressive sponsorship came as firms sought mainstream visibility and adoption.
Read more: 14 Best Crypto Marketing Agencies for 2024
However, the narrative shifted drastically in 2022 with the market’s downturn. The sector saw a severe reduction in new deals, dropping to 25. The collapse of FTX, previously a key player, led to canceled deals, including its partnerships with the Miami Heat and other sports platforms.
Despite the downturn, some firms like Bybit and Vechain managed to secure substantial agreements; Bybit secured a $150 million deal with Red Bull Racing, and Vechain signed a $100 million contract with UFC.
The downward trend persisted into 2023, with only 8 new sponsorships signed, though 14 existing deals were renewed. Amidst prolonged bearish market conditions and the FTX fallout, the industry remained cautious, limiting substantial financial commitments. However, OKX demonstrated resilience by securing a $70 million deal with Manchester City, illustrating that strategic investments could still thrive.
By 2024, the industry witnessed a gentle recovery, with 26 new sponsorships and 16 continuing from prior years. Noteworthy among these was Crypto.com’s sponsorship with the UEFA Champions League and BlockDAG’s $10 million deal with Borussia Dortmund (BVB). Additionally, Bitget announced a new partnership with LaLiga to enhance crypto adoption in Southeast Asia, Eastern Europe, and Latin America.
“The volume of new sponsorships has not surpassed the 2021 levels, but the uptick in activity suggests crypto firms are slowly re-entering the sports space,” CoinGecko said.
Read more: Top 5 Crypto Companies That Might Go Public (IPO) in 2024
Specifically, crypto sponsorships have primarily focused on football, with early adopters including prominent clubs like Manchester United, Chelsea, and Manchester City. The strategy extended to global events such as the UEFA Champions League and the FIFA World Cup, leveraging football’s massive international following.
Despite the market’s volatility, some partnerships, like Crypto.com’s diverse sponsorships and Bybit’s strong presence in Formula 1, have become long-term success stories.
Disclaimer
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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