1 min readCrypto is trending lower today, with Bitcoin hovering around $60K and Ethereum near $2.38K, while the S&P 500 approaches record highs.
Crypto.com has announced it is suing the SEC after receiving a Wells Notice, arguing that the SEC has overstepped its statutory authority by declaring that most crypto asset trades qualify as securities transactions, with the exception of Bitcoin (BTC) and Ethereum (ETH). In other news, Scroll, currently the only established layer-2 solution on Ethereum without a token, has announced plans for an airdrop of its $SCR governance token, and Binance has introduced pre-market trading for this token.
Onto macro and its affect on Bitcoin. US CDS spreads are rising due to increased stress about US elections, massive deficit spending, debt ceiling next year. Although this should be taken with a grain of salt as these spreads are very illiquid and conducted by EU banks; as well as the fact that they can and likely would be bailed out in the event of market stress. Because of BTCs infancy as an emerging store of value and interest-rate sensitive risk asset, BTC would likely perform well in this scenario as the system gets flooded with liquidity and performs as a hedge against a failing financial system.
