In the New Downtrend Who Is More Resilient – Crypto Laws in Cali

In the New Downtrend Who Is More Resilient – Crypto Laws in Cali

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2022-11-18 20:10:08

Market situation

At the end of the session, the Dow Jones was up slightly 0.46%, the S&P 500 was up 0.3%, and the Nasdaq was down 0.26%. Stock futures were flat but still tilted to the downside in all three indexes. Gold fell slightly to 1708 USD/ounce. Oil is around 87 USD/barrel.

Bitcoin is still holding around $20,000, although it has dropped below this level at some point.

Nvidia said in a filing with the SEC that the US government is restricting sales of high-performance AI A100 and H100 chips for servers to China and Russia. Sales of both chips are still limited in those markets, though it could still develop the H100 in China. Nvidia is expected to hit $400 million in revenue in the current quarter due to new export restrictions. However, yesterday the government announced that Nvidia would continue to produce H100 chips in Hong Kong, China. Nvidia is expected to post $400 million in revenue in the current quarter due to new export restrictions.

In the downtrend, who is more stubborn

In times of market declines and past winters, the capitalization of BTC often went up and the capitalization of altcoins fell. However, this winter BTC capitalization down to a smaller percentage. But the capitalization rate of altcoins shows no sign of investors fearing exit to BTC. It is possible that the market already has many good stablecoins and investors accumulate money here. Another reason given is that investors may have experienced previous winters so the community is more solid and so is the altcoin community.

Despite the gloomy market, the number of BTC that has not moved in a year or more is still high above 62%.

This is also the time to see who or what organizations really support and believe in BTC and crypto and continue to store. The leading publicly traded BTC holding and investment company, Microstrategy, has yet to sell any BTC. Tesla sold most of the BTC it held. Some other companies have also sold part of their BTC such as Core Scientific or small mining companies that need operating costs.

Crypto companies are also laying off employees and reducing re-operating costs. reduced the amount for advertising and marketing to a very low $ 36,000 instead of a high time for advertising $ 3.6 million. Through this season, we can see which companies are really good and strong in management and operation.

Update on Celsius

In the bankruptcy filing, Celsius asked to sell their BTC mined to cover the costs of maintaining operations during the bankruptcy process. Because otherwise, they can only operate until October 2022. Recently, Celsius’s latest financial report shows that they have enough money to operate until the end of November and have a balance of 42 million USD. Celsius says that there has been more money for the operation by selling some of them. BTC and borrow another 70 million. So, some people think the selling of the recent drop could come from Celsius.

In addition, Celsius Network is facing more regulatory issues as crypto depository customers are disgruntled by the withdrawal freeze in June. On Wednesday, a special group of 64 custodial account holders in Celsius filed a complaint with the United States Bankruptcy Court asking the Southern District of New York to recover their assets. Creditors seek to recover over $22.5 million worth of crypto assets held in Celsius’ custodial service. The group is represented by the bankruptcy law firm Togut, Segal & Segal.

According to Celsius’ terms of use, the rights to any digital assets in its custodial wallet will “always belong” to the customer and will not be transferred to the company. This service is a customer with crypto assets stored by Celsius and pays a service fee to this company. So it’s owned by the holder, not Celsius. Creditors are allowed to withdraw and ask the court to order Celsius to pay crypto-custodial assets separately. This proposal is currently awaiting court review and approval.

New Crypto Laws in California

California Governor Gavin Newsom is expected to sign a recently passed bill requiring digital asset exchanges and other crypto companies to obtain a license to operate in the state. California’s Digital Financial Assets (BitLicense) law is derived under New York’s BitLicense regulation, which went into effect in 2015.

California’s law, if signed by Democrat Newsom, will go into effect in January 2025. By 2028, stablecoins will only be issued by a bank or licensed by the California Department of Financial Innovation and Protection. . Therefore, crypto companies still have time to submit the necessary paperwork to meet the requirements of the law.

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