A Week In Crypto (20-26 Nov 2023)

Welcome back to another week of crypto news updates! I can’t stress the importance of conducting your own research in this highly volatile space and being hyper-vigilant of scammers. There is wealth to be made by all who play their cards right in the world of crypto! Of course, none of this is financial advice, but rather a sharing of information.

This week we will cover the latest in Bitcoin’s bullish price action, the role of artificial intelligence in the crypto space, and the SEC’s latest crypto lawsuit followed by this week’s crypto fear and greed index, our weekly Token Watch, and a few worthy crypto memes. Enjoy!

Bitcoin to $40K: December 2023 Prediction

Analysts predict inevitable price surge following Binance settlement

Source: Nasdaq.com

In the latest crypto happenings, major cryptocurrencies found themselves in a mixed trading session on the eve of Thanksgiving. The spotlight, however, is on the seismic shifts triggered by recent events involving Binance and its former CEO, Changpeng Zhao (CZ).

Binance's groundbreaking settlement with the Department of Justice, entailing a hefty $4.3 billion in fines, has etched its name in U.S. corporate settlement history. Adding to the intrigue, CZ's resignation comes with a $50 million fine and a mandatory $175 million personal recognizance bond, coupled with the looming possibility of an 18-month prison sentence, with a critical hearing set for Feb. 23.

CryptoQuant's data unveils a curious migration of Bitcoin from Binance to Coinbase, with Coinbase's reserves swelling by around 12,000 BTC in the past 24 hours, while Binance's reserves dip by 5,000 BTC. Meanwhile, the global crypto market cap inches up by 0.01%, standing at $1.42 trillion. The Federal Reserve's recent meeting notes, revealing a commitment to a restrictive monetary policy, offer no hints of imminent interest rate cuts.

On the Wall Street front, the New York Stock Exchange took a Thanksgiving breather on Thursday, with an early closure on Black Friday. Remember, the crypto market trades 24/7 - 365!

Amid this crypto whirlwind, analyst Michael Van de Poppe anticipates a surge in altcoins, pointing to the potential approval of a spot Bitcoin ETF as a game-changer. He notes an increasing likelihood of approval and foresees continued upward momentum in the weeks ahead, confidently asserting, "We're in a bull cycle."

Matrixport analyst Markus Thielen echoes this sentiment, emphasizing the resilience of Bitcoin despite the Binance news initially perceived as a risk-off event. Thielen sees the recent correction as a "robust counter-trend reaction," projecting a swift recovery from the $36,000 level. With an 80% probability, he anticipates Bitcoin surpassing $38,000 by month-end and a subsequent rally above $40,000 in December, giving it a 90% probability. Exciting times indeed in the dynamic realm of cryptocurrencies!

Artificial Intelligence: AI and Crypto Space

Top AI Token (INJ) pumps more than 1000% year-to-date

Source: FXstreet.com

Cryptocurrencies, often susceptible to external forces and market trends, exhibit a diverse range of impacts. While certain trends, like meme coins, may lack utility, others propel the market forward. One such transformative trend is Artificial Intelligence (AI).

Contrary to its often-villainous portrayal in mainstream media, AI found a welcoming space in the crypto industry, notably through the introduction of OpenAI's ChatGPT. Initially met with skepticism and concerns about job displacement, CEO Sam Altman's brainchild paved the way for a burgeoning industry. Heavyweights like Microsoft, Amazon, Meta, and Google joined the AI landscape, ensuring its eventual influence on the crypto market.

Initially embraced for lighthearted interactions, ChatGPT evolved into a powerful tool as adept users unlocked its full potential. Investors keenly observed the possibilities AI presented. This observation translated into a significant uptrend for AI tokens in the latter part of Q2 and the onset of Q3. During this bullish phase, tokens like Injective, The Graph (GRT), Render (RNDR), Oasis Network (ROSE), and SingularityNET (AGIX) witnessed remarkable surges, reaching 10 to 15-fold increases.

While the fervor has subsided somewhat in the present day, AI tokens remain amongst the most profitable in the market. Even amidst the recent turbulence, notably the temporary removal and subsequent reinstatement of Sam Altman as OpenAI's CEO, the AI token category continues to demonstrate resilience.

As of the current moment, three AI assets - Injective (INJ), RNDR, and GRT - stand among the top 15 gainers year to date. INJ emerges as the standout performer, experiencing a remarkable 1,093% growth over 11 months. INJ's price surged from $1.26 to $16 at the time of writing, peaking at $18 in early November. The journey of AI tokens unfolds as a dynamic and influential force within the ever-evolving cryptocurrency landscape.

Kraken in SEC Crosshairs

SEC targets 16 tokens identified as securities on the Kraken exchange

Source: Bitcoin.com

In its legal action against crypto exchange Kraken, officially filed on Monday, the U.S. Securities and Exchange Commission (SEC) identified 16 crypto tokens as securities. The SEC's complaint asserts that Kraken currently offers trading in crypto assets that have been subject to prior SEC enforcement actions based on their classification as crypto asset securities. Notable tokens in question include ADA, AXS, ALGO, ATOM, CHZ, COTI, DASH, FIL, FLOW, ICP, MANA, MATIC, NEAR, OMG, SAND, and SOL.

Highlighting that some of these crypto assets have been implicated in past legal cases involving platforms like Coinbase, Binance, and Bittrex, the SEC emphasizes its stance that, apart from bitcoin, it views nearly all crypto tokens as securities. However, a recent court ruling deemed XRP "not necessarily a security on its face."

The SEC's legal actions against Coinbase in June and Binance in the same month identified multiple tokens, including ICP, AXS, CHZ, FLOW, DASH, VGX, FIL, NEXO, NEAR, ADA, SAND, SOL, and MATIC, as meeting the criteria for investment contracts. In April, the SEC labeled DASH, ALGO, TKN, NGC, and OMG as unregistered securities in a lawsuit against Bittrex. Responding to the SEC's allegations, Kraken's CEO, Dave Ripley, vehemently contested the claims, stating on the social media platform X, "We strongly disagree with the SEC claims, stand firm in our view that we do not list securities, and plan to vigorously defend our position." Coinbase, echoing Kraken's sentiments, maintains that its platforms do not list crypto securities, with the SEC's interpretation of "investment contract" being challenged as violating the law. Following the SEC's action against Kraken, U.S. Senator Cynthia Lummis (R-WY) urged Congress to establish a regulatory framework, emphasizing the need for clear rules for the SEC to distinguish between securities and commodities. Lummis stressed on X that the SEC should not persist in making determinations solely through enforcement actions, as crypto asset companies seek guidance and often face unnecessary harm to consumers.

Crypto Fear and Greed Index

Token Watch: Weekly Top Movers Within the Top 100

Blur (BLUR), Coin #81, 63.3%, $0.557447

Celestia (TIA), Coin #64, -22.6%, $5.42

Crypto Meme Corner

Source: Google Images

Thanks for tuning in for this week’s insights, news updates, and crypto memes! I hope you have a great week, ignore the FUD, and do your own research in this highly volatile space! There is plenty of wealth to be made. If you have family or friends who may benefit from our community, remember to share our link with them!

-The Token Mindset Team

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