The cryptocurrency market is in the red again this morning, with the bitcoin price down by almost 2%. Most other top ten coins are off by a similar amount, with ethereum down 1% and solana off by almost 3%. Binance’s BNB is breaking the mold, however, climbing 2%.
The crypto market trend lower comes after U.S. president Joe Biden said he will renominate Federal Reserve chairman Jerome Powell following speculation he could have given the top job to Fed governor Lael Brainard.
24-hour crypto market snapshot
Bitcoin (-2%) $56,210
Ethereum (-1%) $4,147
Dogecoin (+0.5%) $0.2239
Cro (+13%) $0.7726
Meanwhile, the meme-based dogecoin got a small boost from Tesla billionaire Elon Musk’s Twitter-based intervention in a long-running Binance withdrawal freeze.
The dogecoin price initially jumped by around 5% following Musk’s tweets but has since fallen back.
Crypto.com’s cro is still climbing, adding a further 13% over the last 24 hours as marketing campaigns pay off.
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CZ has said he’s willing to step away from the exchange he founded to improve its regulatory relations
Self-sovereign: Binance, the world’s largest cryptocurrency exchange that’s recently run afoul of global regulators, is in preliminary investment discussions with “several” sovereign wealth funds its founder and chief executive Changpeng Zhao, often known simply as CZ, told the Financial Times in an interview.
The last year has been rough for Binance, with the company’s sheer size, its Silicon Valley-style “move fast and break things” approach and its decision to operate without a global headquarters provoking the ire of financial watchdogs. The exchange has seen its services banned across Asia and Europe as regulators ramp up their scrutiny.
This matters because retail traders flooded trading platforms earlier this year and Binance, along with the U.S. exchange Coinbase, has become of the best-known and most widely used crypto exchanges. Speaking last week at the Bloomberg New Economy Forum, CZ said Binance now recorded daily transaction volumes of $170 billion, up from between $10 billion and $30 billion just two years ago.
CZ told the FT he hopes Binance’s “perception and relationships” with regulators around the world would improve if sovereign wealth funds took a stake in the company. “But it may also tie us to specific countries … which we want to be slightly careful with,” Zhao added. Over the summer, CZ said he’d be willing to step down from his role as the cryptocurrency exchange he founded to improve its prospects of becoming a fully regulated financial institution.
The bottom line is that Binance is willing to pull out all the stops in its efforts to avoid further regulatory crackdowns.
IMF warns El Salvador
The International Monetary Fund (IMF) has warned El Salvador it should not use bitcoin as legal tender due to the financial and consumer risks it poses.
“Given bitcoin’s high price volatility, its use as a legal tender entails significant risks to consumer protection, financial integrity, and financial stability,” IMF staff wrote in a statement related to a mission in the Central American country, it was reported by The Block. The IMF and El Salvador have been engaged in talks about a $1.3 billion loan agreement, it was reported by Bloomberg in October.
Meanwhile, investors have told the Financial Times the country’s planned bitcoin bond could push El Salvador further away from access to traditional debt markets.
Over the weekend, El Salvador announced plans to borrow $1 billion to fund a volcano-powered “bitcoin city.”