Daily News | US and Japan Increase Regulation on Crypto Activities, Trading Volume of DEXs on Ethereum Chain Exceeded $1.4B, Starknet About to Launch 700M Token Airdrops

Crypto Daily Digest: The United States and Japan are increasing the regulation of crypto activities, Starknet prepares to launch token airdrops

There are new developments at the regulatory level. On February 14, US Deputy Secretary of the Treasury Brian E. Nielsen once again mentioned the threat of virtual assets in a speech to Congress. He stated that in the recently released financial risk assessments, each possesses a substantive section on virtual assets, such as online extortion, fraud, terrorist organizations, and other illegal actors. Nielsen stated that the US Treasury hopes to collaborate with Congress to update tools to eradicate unlawful financial activities in the virtual asset market.

According to The Block, the Japan Financial Services Agency (FSA) encourages financial institutions in the country to strengthen monitoring of “illegal” transfers to crypto exchange providers. The analysis by the Japanese Police Agency concludes that the damage caused by fraud related to illegal remittances is mainly transferred using cryptocurrency.

The FSA encourages financial institutions to further strengthen their protection of users based on risks. Specifically, the FSA recommends the following: “If the sender’s name is different from the account name, financial institutions should stop transferring funds to crypto asset exchange service providers.”

According to Coindesk, the value of open contracts in the Bitcoin futures market has exceeded the $21 billion mark for the first time since November 2021.

According to CoinGlass data, the nominal open interest volume of Bitcoin (BTC) futures contracts has reached its highest point in 26 months. Since the beginning of this year, the total amount of open Bitcoin contracts has increased by 22%, approaching the record of $24 billion set in mid November 2021 when Bitcoin prices exceeded $65,000.

According to the Gate.io market, Bitcoin broke through $52,000 in the short term and is now trading at $51,968.94, with a 24-hour increase of 6.1%. ETH prices broke through $2,800 this morning, reaching a new high since May 2022.

ETH is currently reporting $2,807 per piece, with a daily increase of over 2%. It is reported that the market value of Bitcoin has exceeded the $1 trillion mark, and the total market value of cryptocurrencies has exceeded the $2 trillion mark, with a 24-hour increase of 2.4%.

According to DeFiLlama data, the transaction volume of DEX on the Ethereum chain on February 13 was $1.417 billion, exceeding $1.4 billion for two consecutive days, ranking first. Solana followed closely, with on-chain DEX trading volume of $779 million; The transaction volume of DEX on the BSC chain is $479 million, ranking third.

Starknet officially announced that the native token STRK of the Ethereum Layer 2 network Starknet will be distributed through the Starknet Foundation’s Provisions program starting on February 20. The total number of STRKs dropped this time is about 700 million, mainly targeting personal addresses, with a total of approximately 1.297 million wallet addresses eligible for collection. Eligible users will have four months before June 20 to collect tokens.

This airdrop is not only aimed at Starknet eco users but also eligible ETH stakers and holders of liquidity staking tokens on the Ethereum mainnet, and some developers outside of Web3.

Macro: Collective gains in the US stock market, how will the market go after BTC and ETH break through new highs

On Wednesday, the US dollar index fluctuated at a high level, approaching the 105 level multiple times during trading, but failed to break above this level, ultimately closing down 0.14% at 104.71. The yield on US Treasury bonds has fallen slightly, with the benchmark 10-year yield falling below the 4.3% mark to close at 4.261%, and the interest rate sensitive two-year yield falling below the 4.6% mark to close at 4.582%.

Spot gold hovered around the $1,990 mark and ultimately closed down 0.04% at $1,992.33 per ounce; The trend of spot silver is inconsistent with that of gold, and it has risen significantly during the US market period, ultimately closing up 1.14% at $22.37 per ounce.

Due to the surge in US crude oil inventories and market concerns about US oil demand, oil prices have all fallen by over 1%. WTI crude oil experienced a significant decline in the US market and briefly dropped to an intraday low of $76.35, ultimately closing down 1.63% at $76.49 per barrel; Brent crude oil closed down 1.36% at $81.44 per barrel.

The three major US stock indexes collectively closed higher, with the Dow Jones up 0.4%, the S&P 500 up 0.96%, and the Nasdaq up 1.3%.

Chicago Fed Chairman Goolsby said that even if price increases slightly exceed expectations in the coming months, the Fed’s path back to the 2% inflation target will still be on track. The Fed should be wary of waiting too long before cutting rates and doesn’t support waiting for inflation to reach 2% before lowering rates.

Next, let’s take a look at recent record-breaking BTC and ETH.

BTC is once again aggressively pushing the market and is at its peak. Yesterday it was at $50,000, and now it has broken through the weekly resistance level of $52,000. $52,000 can be said to be the limit. Those who should have burst short orders have burst, but now fewer people open long orders because it is a high-level pull. Not many people will go long, even if it is a small position, no one expected to pull so much. Knowing that these are the rules of the trading market, we must learn to respect them.

When trading, controlling your position and taking a stop loss is important. Of course, if your position is small, sometimes you can handle it. Everyone will sometimes make mistakes, but we cannot make big mistakes, that is, we cannot sell out. If we sell out, everything will be gone. Stop loss is not shameful, and we must accept continuous stop losses. Sometimes, a stop loss is not because your method is wrong but because the market is influenced by many factors, such as anti-human behavior, changing positions, etc. For us retail investors, we still need to control our positions, which is the only thing we can do.

BTC has now reached its peak, and everyone must stabilize. People with heavy positions must reduce their positions, while those with light positions can confidently take short positions. The current surge will be as strong as the subsequent decline, and the fruits of victory must belong to those with light positions and strict self-discipline. This sharp rise has caused over 300,000 people to sell out this week. We hope our friends who have sold out will remember to rise again. Next time, remember to take a light position and use stop loss promptly.

What’s more, today, ETH has once again broken its previous high, reaching $2,826. It has been rising for a consecutive week. Most short sellers have already flattened out, and a major drop may be about to begin. Seize the market trend ahead.

Trading is very simple, but the difficulty lies in people’s hearts. People want to make money and make big profits, so they will hold heavy positions. People don’t like to lose money. They only enter but won’t exit, so they will carry orders. If two are put together, they will hang. After a wise person loses, they will reflect on themselves. It is because they did not do well that they suffered losses. Later, they will make progress, and once they make progress, they will earn money. Only fools blame and resent others, as they have caused significant losses to themselves. As a result, they continue to suffer heavy losses and sell out positions, are never able to recover, and ultimately become cannon fodder in this market, serving as a stepping stone for wise people.

The current market trend belongs to the rhythm of a bull market, constantly pulling up, rising, and then plummeting after a sharp rise. We hope everyone can control their positions and stop loss in time. These two are completely within our control and have nothing to do with outside factors. Therefore, we caused the losses, and we need to seek the solution internally. Again, we cannot control the direction. This is a probability game, and as long as we open a position, there is the possibility of ups and downs.