First Mover Asia: Will Bitcoin Backtest Soon Start Retesting 30K?

Good morning. Here’s what happens:

the prices: Bitcoin is in consolidation mode before an eventual retest of $30,000, says BitBull Capital.

ideas: The cryptocurrency industry spends less than other industries on lobbying. That may need to change.

Bitcoin and Ether continue their downward drift. Bitcoin opens the Asian trading week down 1.3% at $26,779, while ether is down 0.8% at $1,806.

Over the past month, Bitcoin has basically been in consolidation mode. It’s drifting down very slowly, but still holding its value, down just 2% over the past 30 days — a much-needed break for investors from the rollercoaster of the past year.

“Bitcoin has corrected to levels between $27K and $25K. This is where we would like to see some consolidation before a retest of $30K in the coming days,” Joe DiPasquale, CEO of BitBull Capital, told CoinDesk in a press release. note. “While the market may not rally in the near term, price action is following expectations as we are seeing a consolidation through bearish sentiment.”

Meanwhile, Tornado Cash’s TORN token is starting to recover after the protocol’s DAO was a victim of voting fraud over the weekend. This attack – which was neither an exploit nor a hack – involved an attacker putting forward a proposal that looked nice on the surface but allowed the attacker to access all governance voices via some hidden malicious code.

In the aftermath, the protocol’s TORN token fell 40% to $3.59 from $5.76, but is now recovering to $4.66.

The Tornado Cash community is proposing solutions to reverse unauthorized code changes and consider creating a new contract with airdrop tokens for existing owners.

Deficit pressure in the crypto industry

A recent report from the Washington, D.C.-based political watchdog Open Secrets showed that federal pressure in the first quarter topped $1 billion for the second year in a row.

Some of the expected industries lead the rankings in squeeze spending: health care, finance, real estate, and energy.

As for cryptocurrencies? Despite growing regulatory hostility from the capital, actual spending to lobby the cryptocurrency was $21.6 million for the year, according to Open Secrets data. Sure, that’s an increase from previous years, but as an industry with a market cap of just over a trillion dollars, it wouldn’t even crack the top 20 list of lobbying spenders.

By comparison, Big Pharma spent $375.2 million in 2022. The auto industry spent $82 million, and commercial banks paid $64.6 million to lobbyists that year.

Industry political contributions to election campaigns grew tenfold from 2020 to 2022, totaling $2.3 million in the latter, Open Secrets recently reported. Major contributors include Coinbase, which alone spent $3.4 million on lobbying.

Open Secrets data shows that pressure from major crypto companies picked up during the first quarter of the year.

Tether spent $270,000 lobbying in the first quarter of 2023, which doesn’t sound like much, but it’s a huge jump from the $100,000 in Q1 2022 spending.

The Blockchain Association is also up, with $490,000 spent in the quarter compared to $460,000 at the same time last year. Stablecoin issuer Paxos also saw a huge jump, with its lobbying spending rising from $50,000 in the first quarter of 2022 to $80,000 in the last quarter.

Unfortunately, successful companies need pressure to become even more successful. This is just the nature of modern politics. And it looks like the cryptocurrency has to do more of it.

Ripple has begun creating a Central Bank Digital Currency (CBDC) platform that allows central banks, governments, and financial institutions to issue their own digital currency. James Wallis, Ripple’s Vice President of Central Bank Operations and Central Bank Digital Currency, joined “First Mover” for the discussion. In addition, Sky Mavis, the company behind the Axie Infinity NFT project, is launching the card game Axie Infinity: Origins on the Apple App Store in the major markets where the game is popular. Sky Mavis co-founder Jeffrey ‘Jihoz’ Zirlin shared his thoughts. Also joining the conversation are Teddy Fusaro, Head of Bitwise Asset Management, and Carla Reyes, Assistant Professor at Southern Methodist University School of Law.

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