Daily News | HK Legislators Respond to Vitalik Buterin, Tesla May Resume Accepting BTC Payments; FTX Announces Crypto Asset Clearing Process

Crypto Daily Digest: Hong Kong legislators responded to Vitalik Buterin that the utilization rate of clean energy in Bitcoin mining has exceeded 50%

Yesterday, Vitalik Buterin spoke in Singapore and stated that although Hong Kong has shifted towards a cryptocurrency friendly stance since the end of last year, the stability of its friendly policies should be taken into account when setting up an office for cryptocurrency projects in Hong Kong.

Vitalik Buterin said, “for me, the sustainability of Hong Kong’s crypto friendly policy is a key variable, and I personally find it difficult to judge this issue. It is challenging for local regulations to convince people that crypto friendly policies are sustainable.

Regarding this, Hong Kong Legislative Council member Wu Jiezhuang stated on the X platform, “Hong Kong’s policies and laws will not change day and night. All relevant strategies and regulations have undergone significant social consensus and complete procedures, so I can tell Mr. Vitalik that Hong Kong’s policies are very stable.”

Bloomberg Cryptography analyst Jamie Coutts stated on the X platform that the utilization rate of clean energy in Bitcoin mining has exceeded the threshold of 50%, and his report explores the constantly changing energy narrative.

The clean energy utilization rate of Bitcoin mining has exceeded the threshold of 50%, and the decrease in emissions coupled with a sharp increase in computing power means that Bitcoin mining is consuming more sustainable energy. Due to energy accounting for approximately 50% of miners’ costs, the industry’s shift towards sustainable development may affect global energy dynamics.

It is reported that Musk stated in June 2021 that Tesla will resume accepting Bitcoin payments after the utilization rate of clean energy in Bitcoin mining exceeds 50%.

According to CoinDesk, a judge from the Delaware Bankruptcy Court ruled on Wednesday that the Bankrupt cryptocurrency exchange FTX can sell and invest its holdings of cryptocurrency to repay creditors. At the court hearing, Judge John Dorsey stated that he had approved the motion and rejected two objections to the plan. This allows FTX to sell, stake, and hedge its encrypted assets, which are said to be worth over $3.4 billion.

FTX submitted a document in August requesting judges to allow it to participate in the aforementioned activities, as hedging its encrypted assets would “allow debtors to limit potential downside risks before selling Bitcoin and Ethereum,” and “staking certain digital assets would generate low risk returns on previously idle digital assets, which would benefit creditors.” FTX also requests to hire Mike Novogratz from Galaxy Digital as a consultant.

Earlier this week, FTX revealed that it holds $1.16 billion in Solana (SOL), accounting for approximately 16% of the token’s circulating supply, as well as approximately $560 million in Bitcoin (BTC).

According to the latest news, the FTX cryptocurrency clearing process has a maximum selling limit of $50 million in the first week, followed by a maximum selling limit of $100 million per week.

Etherscan data shows that yesterday (September 13), the number of active addresses on the Ethereum network exceeded 1 million, reaching 1089893, the second highest on record. The number of Ethereum online transactions on the same day was nearly 1.63 million, the highest since December 9, 2022.

Today’s Main Token Trends

BTC

This morning, Bitcoin (BTC) broke through the $26,510 resistance level, a key milestone it hadn’t reached in a month. Furthermore, the short-term trend has also broken the overall downward trend. As mentioned in this week’s live broadcast, we may be witnessing a trend reversal. In the short term, it’s important to monitor whether BTC can hold above the descending trendline. Key resistance levels for this week are $26,975 and $27,292.

KAS

The overall trend for KAS has turned bullish, with a recent touch of historical highs this week. In the short term, there could be significant consolidation at these higher levels. Entry based on the rising white trendline is advisable, with conservative positions taken upon a breakout and pullback to the trendline. Sequential targets are $0.05179, $0.05485, $0.05735, and $0.06135, with a short-term support at $0.045.

TRB

In the short term, TRB’s four-hour chart has shown signs of stabilization after a retracement to the Fibonacci level of 0.5, corresponding to a target price of $34.95. Short-term suggestions include maintaining support at $31.95 and a maximum defense at $29.32 (neckline). Consider utilizing trailing stop-loss orders and sequentially target exits at $36.29, $38.20, and $40.63. TRB exhibits a tendency of rapid price movements, making long-term strategies advisable.

Macro: treasury bond bond yields are high, and the Federal Reserve is expected not to announce that interest rates will peak

Last night, the market looked bearish on the data of inflation rebound, and everyone bought stocks, betting that strong US consumers and a resilient labor market will continue to support the market. The S&P 500 index rose 0.8%, with all 11 sectors closing higher. The Nasdaq Composite Index, which is concentrated in technology stocks, rose 0.8%, while the Dow Jones Index rose 1%.

Small cap and energy stocks that are sensitive to economic cycles boosted the stock market on Thursday. The Marathon Oil (MRO) rose 2.9%, while the Russell 2000 index rose 1.4%.

With the economic data hotter than expected, the yield of US treasury bonds rose. The yield of treasury bond still remains at one of the highest levels since the 2008 financial crisis, which indicates that bond investors believe that the economic alarm has not been lifted. The 10-year treasury bond yield closed at 4.289%.

The monthly retail sales rate in the United States recorded 0.6% in August, exceeding the expected 0.2%, with the previous value revised down from 0.70% to 0.5%. The monthly PPI rate recorded 0.7%, the largest increase in more than a year, higher than expected at 0.4%. The previous value was 0.3%, and a 20% surge in gasoline prices was the main reason for the increase. The Atlanta Fed’s GDPNow model predicts that the US GDP in the third quarter will be 4.9%, compared to the previous estimate of 5.6%.

The number of initial claims for unemployment benefits in the United States for the week ending September 9th recorded 220,000, continuing to be lower than the expected 225,000, with a previous value of 216,000.

In addition, some analysts suggest that Federal Reserve Chairman Powell and his colleagues may not imply at next week’s meeting that they have stopped raising interest rates.

Due to inflation still exceeding the 2% target and stable economic growth, Federal Reserve officials may maintain a preference for tightening policies at their September 19-20 meeting, even if they decide not to raise interest rates.

They will definitely not signal a rate hike to stop here,” said Bruce Kasman, Chief Economist of JPMorgan Chase.

In stark contrast, the European Central Bank sent ambiguous messages after raising interest rates by 25 basis points on Thursday. Although ECB President Christine Lagarde refused to disclose whether interest rates had reached their peak, investors interpreted the central bank’s post meeting policy statement as indicating that European policymakers had stopped raising interest rates. Therefore, the euro fell, European bonds rose, and traders reduced the possibility of another rate hike by the European Central Bank.

In the comments that investors have paid attention to, the European Central Bank stated, “We believe that the key interest rates of the European Central Bank have reached a certain level, and if they can continue for a sufficient period of time, it will make a significant contribution to the timely return of inflation to the target.”

According to traders, the Fed’s message next week is more likely to be a “hawkish hold” than a “dovish hike” like the European Central Bank.