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Bitcoin's correction might extend to $50,000: Standard Chartered

Bitcoin's correction might extend to $50,000: Standard Chartered

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Bitcoin’s bulls might need to stop chasing the proverbial cape this time around, and it doesn’t matter if the signal is red or green.

Standard Chartered is warning that the current correction could extend all the way down to the $50,000 to $52,000 range. A mix of crypto-specific factors and broader economic conditions, like stubborn inflation and the reduced likelihood of Fed rate cuts, are putting immense pressure on the alpha crypto.

Meanwhile, an opinion piece from Blockworks says that the Samourai Wallet case “matters more than your memecoins.” The founders are facing some serious heat from state authorities, and the war on crypto mixers is taking a huge turn. The arrests and indictment of the privacy-focused wallet’s co-founders are a big deal, perhaps even bigger than most in the crypto community realize. This case could have far-reaching implications for developers, centralization, and the US as a hub for tech innovation, the op-ed’s author said.

Legal troubles seem to abound in the crypto industry, and the latest headline to catch everyone’s attention is Binance founder Changpeng Zhao. The former crypto exchange boss was sentenced to four months in prison for regulatory failures that allowed cybercriminal and terrorist activities to take place on the platform. It’s a shorter sentence than prosecutors were hoping for, but remains as a reminder that yes, even the biggest players in the space aren’t above the law.


Today’s Newsletter

  • Bitcoin’s correction might extend to $50,000: Standard Chartered
  • Samourai Wallet matters more than your memecoins [op-ed]
  • Binance founder Changpeng Zhao sentenced to four months in prison


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BITCOIN

Bitcoin’s correction might extend to $50,000: Standard Chartered

Research from the British multinational bank points out that the current market dynamics, including deteriorating liquidity measures in the US and the backdrop of strong inflation and less likelihood of Fed rate cuts, are negatively affecting investment flows into riskier assets like Bitcoin.

According to the analysis done by Geoffrey Kendrick, the bank’s head of digital assets research, a potential re-entry into Bitcoin could be considered in the $50,000 to $52,000 range, especially if upcoming US Consumer Price Index (CPI) data proves to be favorable, potentially easing some macroeconomic pressures.

Despite the current market conditions, Kendrick reaffirmed his previous price targets of $150,000 by the end of 2024 and $200,000 by the end of 2025. While progress might be slow at first, he expects a significant rally closer to the anticipated Trump election victory, particularly from September through to the end of the year.

This outlook suggests that while short-term challenges persist, the long-term potential for Bitcoin remains intact. [cryptobriefing]


OP-ED

Samourai Wallet matters more than your memecoins

The crypto community may not fully appreciate the gravity of the Samourai Wallet case and its potential consequences. Developers could start self-censoring out of fear of legal repercussions, leading to greater centralization of crypto services and the further abandonment of the US as a destination for technological innovation. This trend is already evident, with ZkSNACKs, the developer of Wasabi Wallet, announcing that it would block US residents from its services.

The FBI’s recent notice serves as a warning to users, stating that those who use crypto-centric unlicensed money transmission businesses may risk losing access to their funds after law enforcement operations target those businesses.

This aggressive stance against services that operate outside the sphere of state surveillance is a clear indication that regulators are determined to maintain control over financial transactions. The crypto community must recognize the importance of these developments and their potential impact on the industry’s future, beyond the short-term allure of memecoins and speculation. [blockworks]


REGULATION

Binance founder Changpeng Zhao sentenced to four months in prison

The sentence handed down to CZ is shorter than the three years sought by prosecutors, but still exceeds the 18 months recommended under sentencing guidelines.

This outcome highlights the seriousness of the charges against Zhao and the increasing scrutiny faced by crypto exchanges from regulatory authorities. The case also shows the importance of compliance from crypto businesses, as well as the necessity of stricter measures to prevent illicit activities on their platforms.

CZ’s prison sentence and the hefty fines imposed on both him and Binance serve as a wake-up call for the crypto industry. The sentencing serves as a precedent for exchanges and their leaders, who will now be held to higher standards of accountability.

The case also raises questions about the future leadership in Binance and how the exchange will navigate the challenges posed by increased regulatory oversight, while maintaining its position as a leading player among centralized exchanges. [cryptobriefing]


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