Bitcoin continues to drop to $ 26,500, Ethereum finalization suspended

Macroeconomics and financial markets

In the US NY stock market on the 11th, the Dow Jones Industrial Average fell 221 dollars (0.66%) from the previous day, and the Nasdaq Index closed 22 points (0.18%) higher.

Documents submitted to the US Securities and Exchange Commission (SEC) revealed the outflow of deposits from PacWest Bancorp, and reports such as speculation about the sale of the company were reported, rekindling financial instability in the US regional bank sector. PacWest Bancorp’s share price fell sharply.

On the 1st, the First Republic Bank collapsed and the largest bank, JPMorgan Chase, just bought it.

connection:U.S. stocks continue to fall Pacwest Bank’s deposit outflow fuels anxiety | 12th Financial Tankan

connection:Stock investment recommended for cryptocurrency investors, representative cryptocurrency stocks of Japan and the United States “10 selections”

Virtual currency market

In the crypto-asset (virtual currency) market, bitcoin fell 2.99% from the previous day to $26,645.

BTC/USD daily

The market continues to sell favorably, breaking below the $27,000 level with six consecutive negative lines and breaking the neckline of Sanzon. Ethereum (ETH), the second-largest market capitalization after Bitcoin, also fell, dropping 3.4% from the previous day.

In the aftermath of the FTX bankruptcy in November last year, the pressure on the crypto asset (virtual currency) industry in the United States is intensifying to an unprecedented degree. , confirmed the policy of tightening regulations on interpersonal transactions of virtual currency. He indicated his intention to make a request to the Financial Action Task Force (FATF).

connection:G7 to request FATF to review regulations on private transactions of virtual currencies = Nikkei

According to a report by Bloomberg, two of the world’s leading market makers, Jane Street Group and Jump Crypto, have decided to reduce their cryptocurrency-related business and increase the risk in the U.S. market, citing “regulatory uncertainty with the U.S. SEC (Securities and Exchange Commission).” The company plans to withdraw from market-making in the market, and there are growing concerns about a deterioration in liquidity.

In addition to the recent Bitcoin remittance blockage, yesterday the Ethereum beacon chain stopped finalizing transactions and stopped for about 30 minutes.

The beacon chain stopped finalizing about thirty minutes ago. I don’t know why yet, but in general the chain is designed to be resilient against this, transactions will continue as usual and finalization will kick in when the problem is resolved. pic.twitter.com/utAS0uAWpG

— superphiz.eth (@superphiz) May 11, 2023

connection:Ethereum delays block finalization by about 30 minutes

connection:Bitcoin remittance clogging becomes serious, Ethereum foundation sells ETH

Finality refers to the certainty and irreversibility of blockchain transactions. The cause is under investigation and is being investigated by the core developers. Similar issues in the past have been caused by bugs in the client, the software that runs the blockchain.

In addition, the US Circle, which issues the stablecoin USDC, has adjusted its reserves by indicating its intention not to hold US Treasuries that will mature after June in order to reduce the risk of default facing the US. seems to have started.

Circle CEO Jeremy Allaire revealed in an interview with US political media Politico.

Democrats and Republicans are at odds over raising the borrowing limit as the U.S. government debt hits the $31.4 trillion legal ceiling. US Treasury Secretary Janet Yellen and others have sounded the alarm bells, with the possibility of default as early as June 1.

If the U.S. government fails to repay its debts by the due date and defaults, trust in the government and government bonds will inevitably be greatly damaged. Financial market turmoil is inevitable.

Based on past history, it is said that the probability of default due to entanglement in political issues is low, but if the pressure to buy dollars increases due to demand for cash if the issue is not resolved by the end of the deadline, there is a risk of stocks and crypto assets (virtual currencies). Negative for assets.

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[Recruitment]Recruitment of new personnel due to Web3 business expansion

Japan’s largest cryptocurrency media CoinPost is looking for full-time employees and interns as it expands its Web3 business.

1. Media Business (Editorial Department)
2. Marketing operations
3. Conference management and launch work
4. Open Position (students welcome)

Details https://t.co/UsJp3v8mSH pic.twitter.com/B98JZmoQbW

— CoinPost-virtual currency information site-[app delivery](@coin_post) February 14, 2023

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