CryptoDigest. 03.12

Washington decided not to rush to launch a digital version of the dollar – at least until the development of a single concept and its approval by all branches of government, explained the head of the US Treasury Janet Yellen.

There is also no rush in the actions of the Securities and Exchange Commission (SEC), which has accumulated dozens of applications for the launch of the bitcoin-ETF spot crypto fund. Previously, the regulator denied VanEck the launch of this long-awaited product by the market. Now the same decision has been made at the request of WisdomTree.

Meanwhile, the bitcoin hash rate continues to recover. One of the largest miners, Riot Blockchain, has significantly increased its capacity and mined 466 BTC in November (+ 300% per year).

And in the options market, bulls’ enthusiasm is cooling, but there are no clear signs of pessimism. It remains only to predict the dynamics of bitcoin in December – January. This is what we will do in our Friday digest.

No consensus, no CBDC

The lack of a unified CBDC concept for different branches of government frustrates the plans of Washington, which intends to quickly develop a regulatory framework for a token pegged to the dollar.

US Treasury Secretary Janet Yellen believes that it makes sense to develop a state digital currency only after the Fed, the White House and Congress come to a consensus on a difficult issue. And the Federal Reserve is still only analyzing the consequences of launching an innovative instrument.

The regulator must submit to all departments a report on the pros and cons of the digital dollar. A lot of research work needs to be done. Only then can any practical steps be taken, Yellen emphasized.

“This is an important decision and should be made by consensus. There are some advantages, but there are also significant disadvantages.“, – explained the head of the Ministry of Finance.

Disputes over the creation of a CBDC in the United States have been going on for several years. After China announced the launch of the digital yuan in Washington, they started talking about the need to accelerate the creation of their token in order to prevent the increase of Beijing’s influence in the global financial system. But there are also plenty of opponents of CBDC in the American political elite.

SEC refuses to launch Bitcoin ETF again

Asset manager WisdomTree was unable to secure SEC approval to launch a bitcoin ETF spot crypto fund. The regulator several times postponed the deadline for making the final decision on the application.

And in the end, he delivered a predictable verdict – at this stage, entering the market for a spot cryptocurrency product will create threats for investors.

WisdomTree was going to list it on the CBOE under the ticker BZX. The SEC said in a statement that the refusal was motivated by the need to prevent fraud and manipulation.

The regulator concluded that the BZX did not meet the safety criteria. The exchange, on which it was planned to launch the fund, did not convince the SEC that it has sufficient tools to prevent the above risks and is ready to fully comply with the law.

As a reminder, in November, the Securities and Exchange Commission rejected a similar application from VanEck for the same reasons.

Are traders betting on growth in January?

The bitcoin rate is holding below $ 57,000 today. Market volatility remains weak, and it is unlikely that Friday’s American session will be able to bring significant surprises.

In the options market, bullish sentiment has cooled slightly, but players are still optimistic about the long-term prospects for BTC. According to Deribit Insights, investment funds began to hedge risks after Jerome Powell’s statement on inflationary risks and the Fed’s readiness to tighten the rate.

Players are betting on moderate growth in the first two months of winter. December and January should end above $ 70,000 and $ 80,000, respectively. These are the execution prices indicated in the call contracts (for the purchase of an asset).

On the air, expectations are not so aggressive. Deribit traders are betting on altcoin growth to $ 6,000 in the first two months of 2022.

Bitcoin power on the rise

According to BitinfoCharts, BTC hashrate has risen to 166,374 exaches per second (EH / s). Experts say the source of recovery is the successful completion of the migration of miners from China.

Riot Blockchain announced that it mined 466 bitcoins in November. Its power increased to 9 EH / s, although a more modest result was initially predicted. In October, the miner was able to mine 464 BTC. In annual terms, productivity jumped by almost 300%.

As of November 30, there are 4,464 BTC under the control of the Riot Blockchain. The successful performance had a positive impact on the investment attractiveness of the company. Its shares have risen markedly in the second half of 2021, and the management is optimistic about 2022.

Sources: BitinfoCharts, Deribit Insights, SEC, CoinTelehraph, CoinDesk