Bitcoin hovers at $57,000 as Fed Chair Powell continues testimony on Capitol Hill: CNBC Crypto World

Bitcoin hovers at $57,000 as Fed Chair Powell continues testimony on Capitol Hill: CNBC Crypto World

today house Financial Services committee chair Patrick McKenry weighs in on the state of crypto regulation Italy preps guidelines on how to apply the European Union’s crypto rules and renck paly of Stratos breaks down how his crypto Focus VC firm is thinking about the industry amid changing regulations and wavering prices welcome to cnbc’s crypto world I’m Brandon Gomez crypto prices rising slightly today with Bitcoin holding above 57,000 as of noon Eastern the cryptocurrency briefly crossed $59,000 overnight hours after Fed chair J Powell testified on Capitol Hill and laid out the risks of keeping rates high for too long ether Rose nearly 2% this morning trading above $3,100 and salana climbed about half a percent now also this morning professional Capital Management CEO Anthony Pompano went on cnbc’s Squawk Box where he weighed in on bitcoin’s recent losses and provided his outlook for the cryptocurrency prices go down because there’s more sellers than buyers obviously um and so the question is who’s selling and there’s really two main culprits at the moment uh the German government has about 50,000 Bitcoin that they seize from a pirating website uh and they’ve been trying to offload it U what’s interesting about it if you look at the onchain data is they’re basically going to as many exchanges as they can and trying to sell um and so they’re about halfway through that right now it’s about $2.5 billion dollar uh they’ve sold about a billion and a half or so um and then there’s also the mount gox Bitcoin that’s been distributed and so I think people more so are scared hey if there’s billions of dollars being distributed back are these people who have been IL liquid for years just going to sell it what’s really interesting about this is Bitcoin is still very illiquid and so there’s most of the Bitcoin that is out there being held by people that have a long-term View and so when a seller shows up with just a couple billion of dollars the price will go down now if I told you someone was going to come sell billions of dollars and the price was only going to go down to $55,000 or so that’s actually pretty bullish right I I think that people are looking at this and saying hey look Bitcoin is still pretty healthy okay let’s talk about the top stories for today house Financial Services committee chair Patrick McKenry also joined cnbc’s squawkbox this morning where he discuss the state of crypto regulation McKenry was asked about President Biden’s veto of a house joint resolution that would have repealed the sec’s staff accounting bulletin 121 that accounting guidance directs financial institutions holding crypto for customers to keep the assets on their own balance sheets in Biden’s statement announcing the veto back in May the president said his administration would not support any measures that quote jeopardize the well-being of consumers and investors weeks after President Biden vetoed the bill passed by both chambers of Congress the legislation is back on Capitol Hill where lawmakers would need a veto proof super majority a 2/3 vote for it to pass once again A lot’s changed since we had this original vote and this the original vote in the house we had 21 Republican uh 21 Democrats join with the uh with the Republicans to to repeal this Biden rule that says you have to hold crypto like it some other object not like you hold uh Banks traditionally hold things in custody um and so it actually makes those that own crypto uh go to less Reliant folks to hold their assets than more Reliant people and safer folks and so we had 21 Democrats vote for that we had 71 Democrats in the house um vote for um a full Market regulation of crypto uh another major initiative uh out of the house uh 71 Democrats voted for that what was contained in that bill was the repeal of this very rule that only 21 Democrats voted for so that I think enables us to get a higher vote total today um and then the fact that we’re in a political year and people are looking around realizing it’s a really bad position to be against what your voters want and having Clarity for for crypto with more Americans owning crypto and more Americans interested in the asset class and the use of these things it would be crazy for a politician stand in the way of that uh and so we’re going to give them the opportunity to to move today from their original position from 3 months ago next presumptive Republican Presidential nominee Donald Trump’s Rising support of crypto could help him in the upcoming election according to an industry sponsored poll released today the poll conducted by Echelon insights and sponsored by Industry Group Paradigm found that 13% of Republicans who were not planning to vote for the former former president like his new found Embrace of crypto and were more likely to vote for him now respondents also said they want Congress to do something about unclear crypto regulation with 60% saying that Congress should pass legislation that establishes clear and predictable rules for crypto companies and entrepreneurs yesterday we told you that the Republican party has officially adopted a new policy platform that would seek to support crypto Innovation last the bank of Italy is expected to publish guidelines on how to apply the upcoming European rules for crypto that’s according to Bank of Italy Governor Fabio Panetta’s speech yesterday to the Italian banking Association paneta said that in the coming days the bank will publish guidelines aimed at facilitating an effective application of the eu’s markets and crypto assets regulation also known as M the goal helping preserve the smooth functioning of the markets and to protect crypto holders he said Mika outlines two main categories of tokens that meet the requirements to be used in payments but the bank of Italy only found one of those electronic money tokens or EMTs able to quote fully perform the means of payment function while preserving The public’s trust an emt’s value is linked to a singular official currency all right back to markets for our main story crypto World McKenzie sagalo spoke with renck paly founding partner of crypto Focus VC firm Stratos to get his reaction to the recent moves in crypto prices he also weighs in on VC Trends and whether recent regulatory action could put a pause on new Investments okay so let’s start with the markets you’ve got Bitcoin sliding to the 50,000 ether somewhere between 2900 to 3,100 what do you make of the slow pullback that we’ve been seeing since the highs in March uh a lot of it is driven by the recent information around Bitcoin being sold by both the the German government as well as the release of Bitcoin from Mount goau which is an exchange that went bankrupt almost a decade ago uh that’s been holding Bitcoin for some time now so taking that and looking at your business Stratos a VC firm that focuses on crypto projects how are you thinking about investing in the crypto space we did see a spike in VC activity for crypto earlier this year but what sorts of projects or strategies are you most interested in during this low between all the highs and investor interest yeah so for us the time frame on our funds is 10 years so we have a much longer time frame than what’s happening in the last quarter of the last few months that being said people tend to view crypto Cycles in fouryear periods and so we’re at the early stages of a new bull market we saw things come off the bottom in late 22 early 23 and we’ve had pretty much a straight line up for all of crypto since then this is a short pullback but we’re expecting crypto to go much higher over the next year to 18 months and so our portfolios are positioned accordingly with a number of projects that plan to launch tokens and uh create new networks over that time period now also in the headlines is this news that the SEC is suing consensus putting into question whether the agency is going to go after ethereum more broadly does that weigh in on decision- making for projects that you fund do ethereum linked projects feel more hands-off right now until the dust settles um I would say that the sentiment has shifted uh considerably in the last few weeks as the Democrat Party seems to have moved towards a more Pro crypto stance in response to the Republican Pro crypto views and so the view is that you know the SEC is likely to back off a lot of their uh approach towards being uh Prosecuting crypto projects so by and large the industry is just moving forward irrespective I mean sure but they just sued consensus so I it doesn’t really seem as though uh any sort of softening stance from the you know from the Democrats or from the White House is any sort of impact right now but you’re not concerned though yeah look at Congress I mean Congress tends to be very has shifted to be Pro crypto if you look at the fit uh 121 bill or uh the sap 21 bill in both cases uh there was a lot of bipartisan support for that um so the expectation is generally that the SEC will become more Pro crypto now I can’t speak to the specifics of the con the consensus case obviously they control metamask which is a highly used wallet in the the space and there may be specifics to that case that are unique there but by and large what we expect to see going forward is tokens being able to take revenues that the projects are generating and pay them back to the owners of those tokens much like you would see dividends or share BuyBacks happening in uh the traditional markets so where are the most interesting developments for crypto right now is it in the US is it abroad uh generally everywhere so so um we’re seeing a lot of advancements in the US uh on the academic side so developing new uh layer one protocols things like um zero knowledge proofs fully homomorphic encryption Etc and then in Asia there’s just a lot of consumer interest um so seeing a lot of Engagement from the typical you know retail user in Asia and we expect a lot of the growth that will happen on the social side coming from Asia do you feel like the interest in these projects is still there outside of crypto enthusiasts we saw some reporting from fortune that Goldman Sachs might launch tokenization projects this year is the momentum there outside of crypto fans going to keep building yeah a lot of that is driven by Price action so when you see Bitcoin reach new all-time highs people who maybe forgot about crypto or thought crypto was dead come back into the market so price action is one of the things things that drives attention initially and then new applications so like I mentioned social but also Defi and even meme coins bring average people who maybe aren’t engaged in crypto or aren’t interested in the technology into it so just like what we saw with early internet things like Facebook Instagram uh Twitter bringing people into the internet that otherwise wouldn’t have been we’re going to see the same thing in crypto over the next few years okay that’s all we have for crypto world today we’re back again tomorrow we’ll see you then

CNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what’s ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today’s show, Rennick Palley, founding partner of Stratos, breaks down how current prices and regulatory action is affecting crypto VC trends.

Chapters:
00:00 – CNBC Crypto World, July 10, 2024
0:26 – Bitcoin rises slightly
1:59 – The headlines
6:00 – Rennick Palley of Stratos

For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/42d859g

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC on Threads: https://cnb.cx/threads
Follow CNBC News on X: https://cnb.cx/FollowCNBC
Follow CNBC on WhatsApp: https://cnb.cx/WhatsAppCNBC

https://www.cnbc.com/select/best-cred…

#CNBC
#CNBCTV

Bitcoin hovers at $57,000 as Fed Chair Powell continues testimony on Capitol Hill: CNBC Crypto World