Good morning. Here’s what’s happening:

Bitcoin prices: Bitcoin is still in the red, as Asian markets open up and investors take into account U.S. Debt Ceiling woes and uncertainty.

Insights : The CEO of market maker Flowdesk sees opportunities in the U.S.


Bitcoin’s Day of Recession

Investors continued to fret about recent macroeconomic uncertainty that has plagued digital assets over the past 12 days.

Bitcoin traded at $26,362, a decrease of about 3.1% in the last 24 hours. The largest cryptocurrency in terms of market capitalization was hovering within a narrow band before dropping below its recent support level of $26,500 early Wednesday. The markets have been shaken by the ongoing debt ceiling standoff, inflationary concerns and crypto regulations. Federal Open Market Committee Minutes showing a disagreement among U.S. Central Bankers on further rate hikes, did little to calm markets – crypto and otherwise.

Edward Moya is a senior market analyst at foreign exchange market maker Oanda. He wrote an email that Bitcoin remains rangebound. It should continue to consolidate around the lower limits of its downward-sloping trading range. The $25,000 level provides massive support.

Ether recently traded at around $1,800. This is down 2.8% compared to Tuesday. The majority of major cryptos are in the red. Popular memecoins DOGE, and SHIB, have fallen about 3%, and 4% respectively. The CoinDesk Market Index is a measure for the performance of cyptomarkets. It was down by 3%.

Moya wrote, “Bitcoin is under pressure due to the growing risk of an American default,” and that the U.S. Central Bank faces the prospect of further tightening its monetary policy.

He wrote: “Bitcoin will be sensitive to the rising Treasury yields, as too many crypto/blockchain businesses will struggle to finance.” It is difficult to find a financial institution that will lend money for long-term projects, let alone one that deals in cryptos.

The Biggest Gainers

Today, CoinDesk has no winners.

Biggest Losers


Market Maker Flowdesk Aims for U.S. Expansion

There are few people who are bullish about the U.S. cryptocurrency market. Many of the biggest names in the crypto industry, including Coinbase CEO Brian Armstrong , are bearish. They cite a lack regulatory clarity.

Coinbase has warned that it will move offshore if there isn’t regulatory clarity soon. Many crypto venture capitalists share this sentiment – they prefer to invest in Singapore.

Guilhem Chaumont is the CEO of Flowdesk and a market maker that provides liquidity. He has a different perspective.

Chaumont said in an interview with CoinDesk that he sees the U.S. market as the central hub of the crypto industry and believes that his company will thrive due to the commitment made to complying and meeting regulatory requirements, no matter how onerous or unclear they may be.

Chaumont told CoinDesk his company just opened an office in New York, and wants to expand it.

He argues that the sophistication and size of U.S. Capital Markets is worth it to have to deal with their regulatory regime.

He believes that crypto and traditional financial (TradFi), regulations will converge, which is a positive development. He also mentions the potential of a talent-bridge between the two sectors.

“Crypto will not happen without regulation.” “We are in favor of regulation at TradFi level, because we would rather have it than no regulation,” he said.

Hong Kong, for instance, heavily stressed the TradFi experience, when it released its first draft of the crypto licensing framework.

The convergence of these two regulatory structures is a good sign for us. Chaumont explained that it would allow a huge bridge of talent into crypto.

Chaumont believes that in an ideal world there would be a dedicated regulation for crypto. However, sometimes compromises are necessary. The future of crypto trading will involve more and more regulated financial assets.

He said: “There was hope that I shared that we could start from scratch, and use the best of both worlds, to create a new regulation, simpler than TradFi, and without its expensive complexity,” he added. This hope is slowly fading, and the crypto regulations are essentially converging with those of TradFi.

For Flowdesk this isn’t a problem.


Important events.

7:30 am HKT/SGT (23:30 UTC) Tokyo Consumer Price Index for May 2010


CoinDesk TV

If you haven’t seen it yet, here is the latest episode of First Mover on CoinDesk TV.

Ledger, a hardware wallet provider, has delayed the release of a feature that will allow users to recover their keys. This is due to criticism from the crypto-community. Pascal Gauthier, Ledger’s CEO and Chairman, joined “First Mover,” to explain why the company won’t release the code before introducing the new feature. Aaron Kaplan, co-CEO and founder of Prometheum Inc., discussed with the U.S. regulator the crypto-friendly path the company has taken. Glen Goodman, author of “The Crypto Trader”, shared his market analysis. Bitcoin (BTC) will likely post its first loss month in 2023.

Unciphered, an unnamed crypto security firm, claims to be able to hack Trezor T wallet . Unciphered is a cybersecurity company that recovers lost cryptocurrency. Trezor claims it admitted a similar attack vector several years ago.

Fantom Foundation removes $2.4M from SushiSwap Liquidity Pool Multichain’s current upgrade takes longer than expected and is causing delays to their transactions.

Releases Latest Version DEX Aggregator matcha : This latest iteration focuses on improving the trading experience of users.

Ava Labs Launches AvaCloud, a ‘no-code’ Web3 Launchpad Ava Labs claims that the tool allows companies to bring Web3 product to market quicker, cheaper and with less risk.

Energy Web, a non-profit organization, launches a sustainability registry for Bitcoin miners : Miners are scored on the basis of their clean energy use and grid impact.

James Rubin is the editor.