As investors continued to be apprehensive, cryptocurrency prices fell on the first business day after the July 4th holiday.
According to CoinGecko, Bitcoin, the most popular cryptocurrency, was down a little to $19,415.74, and was down 71.9 percent from its November 10 high of 69,044.77.
Ether, the ethereum platform's native cryptocurrency, was down 1.7 percent to $1,085.25, while dogecoin was down somewhat to $0.066217.
'Fingers-Crossed,' says the author.
"Crypto prices continued to rise over the holiday weekend," said Finder's senior digital assets analyst. "As the weekend approached, some bigger crypto Twitter accounts shared technical analysis calling for another massive leg down in the crypto market, indicating that bitcoin might fall to about $16,000.
Corva said that "crypto markets continued to dance on a knifes edge with BTCs prices fluctuating between $19,000 and $20,000."
"Investors have their fingers crossed that FTX CEO Sam Bankman-Fried's purchase of BlockFi, a crypto lending and borrowing platform, might be one of the last steps necessary to stop the crypto market contagion that resulted from the Terra (LUNA) ecosystem from failing," he said.
The Bankman-Frieds company has reached an agreement that allows it to buy BlockFi for up to $240 million. The transaction also provides BlockFi with a $400 million revolving credit facility.
'It's possible that the worst could come to an end.'
Corva said the issue has impacted other crypto lending and lending platforms, including Celsius and Voyager, Crypto Venture Capital Fund Three Arrows Capital (3AC) as well as BlockFi.
"Bankman-Fried and Changpeng Zhao, the CEO of Binance, are rumored to be looking to buy out other, less well-known crypto platforms, as well," said the author. "If Bankman-Fried and Zhao bail out these businesses, the worst of the crypto market crash might be over."
"Bankman-Fried is attempting to be a modern day JP Morgan by bailing out key players in the crypto ecosystem," according to David Lesperance, the managing partner of Lesperance & Associates.
The firm said FTX provided an additional $200 million in credit to Voyager Digital, the Toronto-based cryptocurrency broker that was due $660 million by Three Arrows Capital Ltd., a digital asset hedge firm insolvent.
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'One Rule Book' is a term used by many politicians.
Zhao emphasized a "responsibility" to assist struggling crypto firms following his successful compensation for the Axie Infinitys hack earlier this year.
Ronin, the blockchain that powers Axie Infinity, claimed that hackers had stolen roughly $625 million from the play-to-win online game in March.
Lesperance said that SEC Chair Gary Gensler has proposed "one rule book" governing cryptocurrency businesses on the regulatory front.
"This is to prevent any slipping through the regulatory cracks as the SEC and the Commodity Futures Trading Commission (CFTC) regulate the crypto environment.
According to him, the CFTC is building political momentum to regulate crypto markets directly under the Responsible Financial Innovation Act, which was proposed by Wyoming Senator Cynthia Lummis and New York Senator Kirsten Gillibrand.
'A Winner Will Soon Be Declared,' says the winner.
The proposed legislation would remove at least 200 cryptocurrencies from the Security and Exchange Commission's regulation, and would no longer require American citizens to notify the IRS when they have crypto profits of $200 or less.
"The legislative turf war is on, and given the swirling around the crypto world around stable coins, DeFi, and NFT, there is little doubt that a winner will soon be declared," said Lesperance.
Winston Ma, the managing partner of CloudTree Ventures and author of "Blockchain and Web3: Building the Metaverse's Cryptocurrency, Privacy, and Security Foundations," said that European Union officials reached an agreement on what is likely to be the first major regulatory framework for the cryptocurrency industry at a "hot point" for crypto assets.
"This EU landmark measure, known as MiCA, will require tight regulations on cryptocurrency players," said the author. "Surely it will become a reference for the crypto lawmarking in Western countries, such as the United States. MiCA will be to crypto what GDPR was to data privacy."
In the event of large withdrawals, Ma said stablecoins like tether and Circles USDC will be required to maintain adequate reserves.
"The good news for the crypto industry is that tokens without issuers, like bitcoin, and nonfungible tokens, were excluded from the law," said the speaker.