The total crypto market cap (TOTAL) and Bitcoin (BTC) have struggled to recover recent losses, with global political tensions continuing to escalate. This has kept volatility high, impacting the crypto market. Ondo (ONDO) is leading the decline among altcoins, experiencing an 8% drop in the last 24 hours.
In the news today:-
The Texas Bitcoin Reserve proposal passed the Senate with 25 out of 30 votes in favor, moving closer to becoming law. Despite some Republican defections, the bill, which does not mandate Bitcoin purchases, has garnered bipartisan support and will now proceed to the House for further approval.
Sam Bankman-Fried, in an interview with Tucker Carlson from prison, reiterated his belief that declaring bankruptcy was a mistake and claimed FTX would have $93 billion in assets. However, his responses reflect biases, and it’s essential to consider his perspective with caution.
The Crypto Market Dips Again
The total crypto market cap lost $99 billion over the past 24 hours, currently sitting at $2.82 trillion. This decline followed a failed attempt to breach the $2.93 trillion resistance, further pressured by escalating global tensions, particularly surrounding Trump’s tariff war, which dampened market sentiment.
At present, the total crypto market cap is holding above the $2.75 trillion support level. However, the bearish sentiment persists, and if global tensions continue to rise, it could trigger further declines, potentially dropping to the $2.63 trillion support level. This would extend recent losses and further dampen investor confidence.
Total Crypto Market Cap Analysis. Source: TradingView
Despite the current downturn, a shift in broader market conditions could signal recovery for the crypto market. If TOTAL manages to breach the $2.93 trillion resistance, it could reverse the bearish trend and attempt to rise above $3.00 trillion. This would invalidate the current bearish outlook and mark the beginning of a potential rally.
Bitcoin Fails Securing Support
Bitcoin’s price is down by 4% today, trading at $87,004, just below its support level of $87,041. The broader market’s bearishness has been intense, as seen in the intra-day low of $84,667. Bitcoin’s price movement is largely influenced by this ongoing market volatility, which is hindering recovery.
If the support level of $87,041 is regained, Bitcoin may find stability and a shot at recovery. However, if Bitcoin slides further below this critical support, it could experience a decline towards $85,000 or even slide further to $82,761. This would reinforce the bearish sentiment and extend the current downtrend.
To invalidate the bearish outlook, Bitcoin must reclaim the $89,800 support level, something it was unable to achieve today. Successfully flipping this level into support could push Bitcoin’s price toward $93,625. A recovery beyond this point would indicate a shift in momentum toward the upside.
Ondo Takes A Big Hit
Ondo price has dropped by 8.6% over the last 24 hours, falling below the support level of $1.10 and currently trading at $1.02. This downturn has made ONDO the worst-performing asset of the day. The market sentiment suggests that further declines are unlikely in the near future.
Given the current market conditions, ONDO is expected to consolidate between the $1.10 and $0.96 levels. This price range has proven reliable in the past. While a major price drop seems unlikely, ONDO’s performance will largely depend on market sentiment and investor action in the coming days.
If the $1.10 support is successfully reclaimed, ONDO has the potential to rise toward $1.27. Breaching this resistance, alongside overcoming the 50-day and 200-day EMAs, could signal a shift in momentum and invalidate the current bearish outlook, paving the way for further upside potential.
Since its launch in late March, World Liberty Financial’s stablecoin USD1 has achieved an impressive market capitalization, reflecting strong investor interest. If the creators want to maximize USD1’s reach by accessing markets abroad, particularly in Europe, they must confront MiCA’s extensive compliance list.
In a BeInCrypto interview, experts from Foresight Ventures, Kaiko, and Brickken stressed the importance of stablecoin issuers having substantial European bank reserves, operational volume caps protecting the euro, and transparent USD1 information to ensure transparency and avoid conflicts of interest.
USD1’s Search for Dollar Dominance
World Liberty Financial (WLF), a decentralized finance (DeFi) project heavily associated with the Trump family, officially launched USD1 a month ago. Through this stablecoin, WLF aims to promote dollar dominance worldwide.
So far, this initiative has been working well for WLF. According to CoinGecko, USD1 has now surpassed a market capitalization of $128 million and reached a 24-hour trading volume of nearly $41.6 million. The project has already released 100% of its total supply of 127,971,165 tokens.
USD1’s market capitalization over the past 24 hours. Source: CoinGecko.
For WLF to seriously establish dollar dominance across the globe, it will have to move fast and efficiently. This urgency stems from the need to surpass its main competitors, USDT and USDC. These rivals currently hold a massive market share advantage.
Additionally, there’s a need to maintain a competitive advantage against established currencies like the euro.
USD1 needs to access foreign markets and stand out from established competitors to achieve this. Should Europe become a primary target, USD1 must prepare to tackle numerous challenges head-on.
The EU’s Stringent Compliance Demands
The European Union (EU) became the first jurisdiction in the world to establish a comprehensive regulatory framework for digital assets across its 27 member states. This regulation, known as Markets in Crypto-Assets (MiCA), has been in effect for nearly four months. Through this legislation, the EU has confirmed how seriously it takes compliance with a defined regulatory regime.
The regulation is detailed and clear, leaving no room for interpretation. If USD1 wants to operate in this crypto market of 31 million users, it must ensure it meets every demand.
US Senators Flag Risks of Presidential Involvement in USD1
In the letter, the group asked both agencies to clarify how they plan to uphold regulatory integrity following the issuance of USD1.
The Senators cautioned that letting a president personally benefit from a digital currency overseen by federal agencies he has sway over is a big risk to the financial system. They argued that an unprecedented situation like this one could hurt people’s trust in how regulations are made.
“The launch of a stablecoin directly tied to a sitting President who stands to benefit financially from the stablecoin’s success presents unprecedented risks to our financial system,” they argued.
The letter further detailed situations where Trump could directly or indirectly affect decisions regarding USD1.
As things stand, USD1 isn’t well-prepared to follow MiCA’s strict reporting and transparency rules.
How Do Concerns Over USD1 Impact MiCA Acquisition?
According to Ianeva-Aubert, if USD1 doesn’t clear up doubts over potential conflicts of interest, this would affect its ability to apply for an operating license in the European Union.
“MiCA requires strong governance, including independent directors and clear separation between owners and managers. Issuers must have clear rules to handle conflicts of interest. If USD1 has any conflicts, this could make it harder to comply,” she said.
Ianeva-Aubert also highlighted that WLF still hasn’t released enough public information on USD1 to assess the degree of its compliance effectively. In particular, the stablecoin issuer has not disclosed the measures it would take to safeguard against market manipulation.
As of now, USD1 would likely fail MiCA’s transparency tests. However, industry experts pointed out other parts of the framework that might be even larger obstacles for USD1 to operate across the European Union.
Impact of the EU’s Reserve Mandate on USD1
When asked about the biggest regulatory hurdles USD1 would face in securing a MiCA license, experts’ responses were unanimous. The stablecoin would need to store a large portion of its reserves in a European bank.
This mandate has proven difficult for established stablecoin issuers seeking operations across the region.
This regulation aims to ensure seamless accessibility for European crypto users and traders. For Forest Bai, Co-founder of Foresight Ventures, USD1 could capitalize on this opportunity during the early stages of its development. By doing so, it could avoid some of the obstacles its competitors had to endure.
Yet, even as USD1 scales and its demand grows, other mandatory requirements could restrict its scope of success.
MiCA’s Transaction Volume Caps to Preserve Euro Dominance
As part of the MiCA regulation, the European Union has taken specific measures to safeguard the euro’s dominance. If a digital currency not denominated in euros were to become extensively adopted for daily payments within Europe, it could present a potential risk to the European Union’s financial sovereignty and the stability of the euro.
To contain this possibility, MiCA places volume caps on transactions used as a means of exchange within the EU.
In other words, MiCA establishes predefined limits on the transactional volume of such currencies. The EU initiates regulatory measures when these limits are exceeded due to widespread payment usage.
Specifically, USD1 issuers must suspend any further digital currency issuance and provide a remediation plan to the relevant regulator, outlining steps to ensure their usage does not negatively impact the euro.
If USD1 wants to work in places where it can experience uninhibited growth, the European market might not be the best fit for this stablecoin. Other parts of MiCA also suggest this could be the case.
MiCA Limitations to Stablecoins as Investment Vehicles
EU regulators have been clear that stablecoins, or e-money tokens (EMTs), as the regulation refers to them, are payment instruments that should not be confused with investment vehicles. The MiCA framework has a few rules in place to prevent this.
Given the circumstances, experts like Bai think WLF might want to focus on countries with better market conditions for stablecoin issuers.
Should WLF Consider the EU Market for USD1 Operations?
While the European Union has an undeniable crypto market presence, other jurisdictions have an even larger footprint.
”The EU’s crypto market remains comparatively small, with just 31 million users versus Asia’s 263 million and North America’s 38 million users, according to a report from Euronews. This limited market size may not justify MiCA compliance costs for projects, like WLFI,” Bai told BeInCrypto, adding that “Projects ultimately determine their own growth strategy. Given that, currently, the EU represents a secondary market for USD1, the project’s strategic priorities may naturally shift toward regions with less stringent stablecoin regulations to drive its adoption.”
These circumstances alone may prompt USD1 to reconsider its options.
In fact, USD1 could start by gaining a competitive edge right at home.
USD1’s Political Backing at Home
With a crypto-friendly president in office –whose very crypto project officially announced the launch of USD1– the stablecoin has sufficient backing to make its mark.
Looking past the immediate future, Bai underlined that if the US doesn’t keep developing supportive crypto regulations, USD1’s growth in the country could be held back following a government shift.
Given this reality, USD1’s failure to comply with the EU’s regulations, should it ever even consider applying for a MiCA license in the first place, could have negative consequences for the project’s long-term viability.
Regardless of the markets WLF evaluates in its efforts to increase the reach of USD1, compliance with general stipulations concerning transparency, legal architecture, and real-time transaction oversight could be conducive to its eventual success.
According to Hollywood rumors, Netflix is planning to make a movie based on the 2022 FTX collapse. Julia Garner is rumored to be finalizing negotiations to play Caroline Ellison, but Bankman-Fried’s actor is less certain.
Several outlets have claimed that Evan Peters, who starred in Netflix’s award-winning series DAHMER, is in talks to play SBF. However, this is presumably even less certain than Garner’s role. Graham Moore, an Oscar-winning screenwriter, is also in talks to write the series.
Netflix’s Take on the FTX Collapse
The FTX collapse in 2022 was one of the most dramatic events in financial history, not just crypto. So, it makes sense that Netflix is planning a movie about it. After all, several studios were fighting to get the film rights the same month that the collapse happened.
Variety recently published rumors about the casting, claiming that Julia Garner is nearly set to play Caroline Ellison.
Julia Garner to star as Caroline Ellison in a limited series about the collapse of cryptocurrency exchange FTX, and the relationship between FTX co-founder and chief executive Sam Bankman-Fried and his girlfriend and business associate Ellison. pic.twitter.com/Df1miZIjb4
Garner previously played digital con artist Anna Delvey and received an Emmy nomination for her performance. This relevant experience could add color to her portrayal of another convicted fraudster in Netflix’s FTX adaptation.
However, Garner’s largest role was Ozark, an acclaimed Netflix show that earned three Emmy awards. Variety further claimed that she may become an executive producer on this series, but again, nothing has been finalized.
Netflix will reportedly use a love story as a framing device for the FTX series’ plot, so the actor playing Sam Bankman-Fried will be essential.
Other industry publications have alleged that Evan Peters is in talks for this role. He has also won awards for a previous Netflix production in 2022.
Evan Peters at a 2019 Convention. Source: Wikipedia
A Netflix adaptation of the FTX story could be highly entertaining, but it’s important to stress that no contracts have been signed. The crypto industry has produced many famous events, after all.
That is to say, “development hell” is a popular term in the film industry for a reason. Hopefully, the crypto community will soon enjoy Netflix’s dramatized take on the FTX collapse. Today, it’s still in the very early stages.
As Q2 began, the crypto market gained momentum, with many tokens showing strong performance in the latter half of April. Following Bitcoin’s lead, most altcoins have seen significant improvements, posting triple-digit gains. Some altcoins are even approaching their all-time highs, reflecting increased market optimism and growth.
BeInCrypto has analysed three such altcoins that are close to forming new all-time highs in the coming month.
Walrus (WAL)
WAL has surged by 50% over the past week, reaching a price of $0.622. This strong uptick also saw the altcoin hit a new all-time high (ATH) of $0.690. The recent gains reflect growing investor interest and confidence in the altcoin’s performance in the market.
Currently, WAL is just 11% away from breaching its ATH and potentially forming a new high at $0.750. However, this progress depends on sustaining the bullish momentum. If the market conditions remain favorable and buying pressure continues, WAL may break through this resistance and push toward the $0.750 target.
If investors decide to sell early and the bullish momentum fades, WAL could struggle to maintain its upward trend. A failure to break the $0.634 resistance level could lead to a drop to $0.546. This would invalidate the current bullish outlook and signal a potential correction in the altcoin’s price.
Saros (SAROS)
SAROS has not posted significant gains this month but did manage to hit a new all-time high (ATH) of $0.1712 before falling to $0.1311 at the time of writing. Despite the drop, the altcoin remains within a range that could allow for potential recovery and further price growth.
Currently, SAROS is facing resistance at $0.1344, and breaking through this level is crucial for the altcoin to return to its ATH of $0.1712. A successful breach would open the path toward $0.2000, providing the altcoin with a strong opportunity for continued upward movement if the bullish momentum sustains.
If SAROS fails to breach the $0.1344 resistance, it could remain consolidated above $0.1153. A failure to hold above this level would put the bullish outlook at risk, potentially leading to further downward movement and invalidating any potential for short-term growth.
BNB
BNB is currently priced at $609, needing a 30% rise to reach its all-time high (ATH) of $793. However, achieving this requires strong market conditions and investor support, both of which have been lacking throughout April. A sustained rally would be crucial for the altcoin to reclaim its ATH.
Currently trapped under a nearly five-month downtrend, BNB faces significant resistance. A 30% rally would be needed to break through this trend and reach $793. If BNB can surpass the $700 mark, it would confirm that the altcoin is on track to challenge its previous ATH and establish a new high.
However, BNB is struggling to gain traction among investors, making such a rise difficult. Failing to breach the $618 resistance could result in a decline, with BNB potentially falling below $600. If this occurs, BNB could slide toward $576, further invalidating the bullish outlook and prolonging its downtrend.
XRP
XRP is breaking out of a descending wedge pattern that has held since the start of the year. Currently trading at $2.28, the altcoin is heading toward the $2.40 resistance level. A successful breakout would indicate the potential for continued upward momentum, boosting optimism among investors.
Despite the recent surge, XRP is still more than 48% away from its all-time high (ATH) of $3.40. A sustained rally or bull run could propel XRP toward its ATH, especially if the current breakout is confirmed. Successfully flipping $2.56 into support would indicate that further gains are likely.
If XRP fails to breach the $2.40 resistance, a price reversal could occur, leading to a decline back to $2.02. Such a move would invalidate the bullish outlook, and XRP could fall back into the descending wedge pattern.
