Bitcoin drops to $ 22,500, ASTR and GARI surge temporarily

Macroeconomics and financial markets

In the US NY stock market on the 8th, the Dow closed at $207.68 (0.61%) lower than the previous day and the Nasdaq at $203.27 (1.68%) lower.

The hawkish remarks by senior FRB (US Federal Reserve) officials suggesting a prolonged monetary tightening phase were disgusting. Investors began to become skeptical about the possibility that the slowdown in inflation could continue in the wake of last weekend’s U.S. employment report, which also weighed on the risk of an economic downturn.

The labor market needs to cool down in order to reach the Fed’s inflation target, but strong employment data suggests potential inflationary pressure.

connection:Nasdaq declines due to the impact of FOMC member remarks, etc. | 9th Financial Tankan

Virtual currency market

In the crypto asset (virtual currency) market, Bitcoin fell 2.79% from the previous day to $22,607.

BTC/USD daily

It continued to fall after the bearish stock index. The confrontation between the United States and China over the Chinese balloon that was shot down in the United States on the 4th is also increasing geopolitical risks.

Bitcoin has been in a rebound since the beginning of the year, but it hit $24,262 on the 2nd of this month and took a break. Considering the results of the recent employment statistics, there is a possibility that the stock will seek a lower price before the release of the CPI (US Consumer Price Index) on the 14th.

Since the altcoin market has been overheated recently, it seems likely that the price will enter a correction phase if it breaks below $22,500.

“I have heard that the US SEC (Securities and Exchange Commission) plans to ban retail staking-related services in the US under US securities law,” Coinbase CEO Armstrong said on the 9th. “The future of innovation (innovative emerging technologies) in the United States will be bleak if it becomes subject to regulation,” he warned.

1/ We’re hearing rumors that the SEC would like to get rid of crypto staking in the US for retail customers. I hope that’s not the case as I believe it would be a terrible path for the US if that was allowed to happen.

—Brian Armstrong (@brian_armstrong) February 8, 2023

Armstrong posted a commentary article that questioned the reason why Ethereum (ETH) does not fall under the category of securities and the expanded interpretation of the Howie test, which was analyzed and considered by the major virtual currency investment company “Paradigm”.

“If emerging technologies do not grow in the United States in the future, it will hinder the development of the financial services and Web3 fields, and (in the future) it may become a national security problem.” It could encourage businesses to do business overseas with looser regulations, and it could invite a tragedy like FTX (the failed major cryptocurrency exchange) again.”

SEC Chairman Gensler previously stated that staking crypto assets based on the consensus-building algorithm “PoS (Proof of Stake)” fall under the Howey test of investment contracts and are subject to the “Securities Act”. It was pointed out that there is a high possibility that it will be classified as a target of

Ethereum (ETH) changed from PoW (Proof of Work) to PoS (Proof of Stake) last year after undergoing a major upgrade, “The Merge.”

connection:US Coinbase CEO: If staking ban rumors are true, US is on a stupid path

In December 2020, the SEC (Securities and Exchange Commission) filed a lawsuit against Ripple, which issues XRP, in a dispute over the securitization of the token. In addition to filing a petition for summary judgment in September last year, the trial is entering its final phase, including the submission of the final documents in December of the same year.

connection:Ripple, SEC Submit Final Documents to Court

altcoin market

Among individual stocks in the alt market, Astar (ASTR) surged 40% higher than the previous day.

It has been announced that it will be listed on the major Korean exchange Upbit.

Listed in Korea. ASTR has been listed on Upbit, the largest cryptocurrency exchange in South Korea, one of the most regulated countries. https://t.co/wHarBuA5lX

— Sota Watanabe Astar Network (@Sota_Web3) February 9, 2023

Astar (ASTR) Aster Network is a public blockchain from Japan. Stake Technologies, led by CEO Sota Watanabe, will lead the development.

In order to improve interoperability, we got the third limited slot (slot) in the world to connect to the Polkadot (DOT) parachain that connects different blockchains.

connection:What is Japan’s public blockchain “Aster Network (ASTR)” | Explanation of features and mechanism

The number of wallet addresses connected to Astar Network has increased by 946% compared to the previous week, as the number of wallet addresses connected to the Astar Network is outstanding among the Polkadot parachains.

TOP PARACHAINS BY NEW WALLET ADDRESS GROWTH RATE ON #POLKADOT LAST 7D

The number shows the performance of parachains regarding attracting new users to the network.

What chains are you active in the most recently?#Polkadot $DOT $ASTR $BNC $KILT pic.twitter.com/kSGBQaoO2T

— Polkadot Insider (@PolkadotInsider) February 8, 2023

In October 2010, NTT Docomo signed a basic agreement with Stake Technologies, which handles Astar Network (ASTR), for the purpose of disseminating Web3. The following month, the company announced plans to establish a subsidiary specializing in the three Web areas and invest 600 billion yen over the next five to six years.

Docomo invests 600 billion yen in next-generation network “Web3”

I think the history of Web3 has moved. 600 billion investment is a level that overturns the industry. Astar is also listed in the article as a partner, but I will do my best to promote web3 in Japan together with DoCoMo. https://t.co/l6q3NhEaQc

— Sota Watanabe Astar Network (@Sota_Web3) November 8, 2022

Gari Network (GARI), the native token of India’s social video app Chingari, soared 30.4% from the previous day.

Aptos (APT) announced a partnership with Chingari on the 9th.

1/ Making global moves @Chingari_INthe world’s fastest-growing on-chain social app, is coming to Aptos!

The Chingari community is over 2.3M members strong–let’s give them a warm welcome as their social network expands to Aptos!

Here’s why this is HUGE for the ecosystem!

— Aptos (@Aptos_Network) February 8, 2023

Chingari is a short movie app similar to TikTok, and has gained great popularity, especially in India, with approximately 40 million monthly active users (MAU). Aiming to be a pioneer of the Web3 paradigm shift by incorporating blockchain technology, we aim to realize a “creator economy” that includes creator returns using GARI.

It raised $15 million in January 2022.

According to a study by the World Population Review, India’s ever-growing population is estimated to surpass China to become the world’s largest by 2030. China’s population was 1.42 billion as of September 2022. Japan’s population remains at 120 million, and according to the Ministry of Internal Affairs and Communications’ population estimates, the population has been declining for the 11th consecutive year.

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