Welcome back to another wild week! The big story has been the return of the bulls, with the bears left licking their wounds. Meanwhile, we saw a ton of regulatory-driven activity across many parts of the industry. When all's said and done, investors continue to pour money into crypto businesses, helping transform finance as we know it. All eyes today though will be on Robinhood, a firm known for bringing not only stock trading to the masses, but increasingly crypto as well.
9. Let's go back to late last week, when we saw a regulatory crackdown in China begin to spook investors. The heavy sell-off continued into Monday and Tuesday. Industries as diverse as ride-sharing, education, big tech, and real estate were not spared the wrath of Beijing. Maybe the markets don't like autocrats after all. If only there was a solution...
8. Meanwhile, after years of criticism of excessive leverage in crypto, including 100x, market leaders FTX and Binance announced steps to limit leverage to 20x, cutting back what they describe as a very small part of their overall business, yet one responsible for a lot of industry scrutiny.
7. Then on Monday, we witnessed a 30% rally in the price of Bitcoin, from $30,000 to $40,000, to a level not seen since... [checks notes]... last month. Some chalked this up to discovery of a recent job post and subsequent reports that Amazon would soon be accepting Bitcoin payments (reports that were subsequently denied). And further fueling this move, massive short liquidations.
6. Despite Tether's large role in facilitating crypto transactions, the market appeared generally unfazed by reports of a criminal probe into its executives.
5. With all the ongoing regulatory threats, it was not surprising to see Binance appoint a well-respected regulator to run Binance.US several months ago. But it was surprising to hear this week that Binance founder CZ is willing to step down as CEO to make room for someone with more regulatory experience to run the company.
4. Senator Elizabeth Warren on Wednesday offered some interesting takes on cryptocurrency and walks a fine line between acknowledging its benefits and wanting to increase regulatory burdens.
3. Which leads to a few other hot takes on the current banking system and government regulation.
2. Despite all the potential regulatory uncertainty, crypto projects continue to attract lots of funding.
1. With all that out of the way, most eyes today will be on the Robinhood IPO, which has priced at $38 per share. Despite repeated missteps along the way, Robinhood has helped usher in a new era of active traders. and investors.