Crypto Chronicle - 06/02/24

Welcome to the 24th edition of the Crypto Chronicle, brought to you by Imperial Wealth.

You can listen to todays episode here.

News

South Korean Regulator Plans Talks on Spot Bitcoin ETF with SEC Chief Gary Gensler

South Korea’s Financial Supervisory Service (FSS) plans to collaborate with the U.S. SEC for insights into spot Bitcoin ETFs. FSS Chief Lee Bok-Hyun intends to meet SEC Chair Gary Gensler in 2024 to discuss digital assets and the impact of SEC’s recent approval of 11 spot BTC ETFs. 

The FSS aims to review and update regulations around spot Bitcoin ETFs, aligning with South Korea’s role as a key cryptocurrency market regulator in the Asia-Pacific region. 

Following the SEC’s approval, the Korean securities regulator cautioned against brokering spot Bitcoin ETFs but expressed intentions to evaluate and revise related regulations.

Read more here: https://imperialwealth.com/news/south-korean-regulator-plans-talks-on-spot-bitcoin-etf-with-sec-chief-gary-gensler

Powell, Federal Reserve Chief, Warns of ‘Unsustainable Fiscal Path’ Amid Rising Debt Burden in the United States

Federal Reserve Chair Jerome Powell warns of the United States being on an unsustainable fiscal path with a growing debt burden. 

Powell emphasises the urgency for elected officials to engage in a mature discussion about reducing the escalating debt levels in the economy. 

The warning comes as the Federal Reserve maintains interest rates, dashing hopes of rate cuts in March. Powell insists on waiting for substantial evidence of economic strength before considering rate adjustments. 

The news suggests potential impacts on various assets, including cryptocurrencies and growth-oriented tech stocks. 

Powell anticipates a revisit of the central bank’s strategy at the March meeting amid inflation concerns.

Read more here: https://imperialwealth.com/news/powell-federal-reserve-chief-warns-of-unsustainable-fiscal-path-amid-rising-debt-burden-in-the-united-states

FTX Intends to Fully Reimburse Clients but Won’t Resume Exchange Operations, Affirms Bankruptcy Attorney

FTX, an inactive cryptocurrency platform, clarifies its restructuring plan does not involve a company revival but focuses on full user reimbursement. 

Attorney Andy Dietderich stated during a January 31 hearing that while optimistic about repayments, it’s an objective, not a guarantee, with no plans to relaunch FTX 2.0. 

Concerns were raised about former CEO Sam Bankman-Fried’s financial record-keeping. 

LedgerX, previously considered solvent, was deemed a “horrible investment.” 

Bankman-Fried’s conviction led to a surge and fall in FTX Token (FTT) prices. 

In December 2023, FTX proposed reimbursing claimants based on crypto asset prices during bankruptcy. Judge Dorsey favoured debtors in a January 31 ruling.

Read more here: https://imperialwealth.com/news/ftx-intends-to-fully-reimburse-clients-but-wont-resume-exchange-operations-affirms-bankruptcy-attorney

DOJ Accuses Pair of Crypto Mining in School District Amidst Ongoing US Energy Investigation

The US Department of Justice (DOJ) has charged two officials from the Patterson Joint Unified School District for operating a cryptocurrency mining scheme in the district’s 10 schools.

Jeffrey Menge and Eric Drabert allegedly used school resources, causing a spike in electricity costs.

The DOJ statement did not specify the number of schools involved or the type of cryptocurrency mined. This comes amid a broader crackdown by US energy regulators on crypto miners, with the Department of Energy mandating disclosure of energy consumption.

Globally, regulators are addressing excessive electricity use in cryptocurrency mining.

The Bitcoin Mining Council reports a 58% sustainable energy mix as of 2022.

Read more here: https://imperialwealth.com/news/doj-accuses-pair-of-crypto-mining-in-school-district-amidst-ongoing-us-energy-investigation

Technical Analysis

Absolutely nothing to report on low time frames or with immediate price action as we remain at $42.5k or so, with chop chop chop continuing to occur.

A chart I have sent in to Day Traders and Trading Academy members is a .786 Fibonacci Retracement fractal that now interests me as a support level to long/accumulate at, if its seen, and held, given prior impulses afterwards in prior cycles.

Please see the chart below:

Then all of these separate:

Please see the chart below:

Please see the chart below:

Please see the chart below:

Our largest two impulses prior to put in ATHs came from huge impulses… into .786 retracements…. into the next leg up. Just a thought.

That’s it for this weeks edition, stay tuned for next weeks!

Thanks!