Asian Traders Long On Ether And Bitcoin Despite Macro-Economic Uncertainty

Asian Traders Long On Ether And Bitcoin Despite Macro-Economic Uncertainty

Clarity regarding the regional cryptocurrencies helps traders in Asia to be optimistic about the future despite the uncertainty in the market impacting the Bitcoin and Ether prices.

At the start of 19th May 2023, both of the top crypto coins were in red as trading day in East Asia commences. Bitcoin was trading at a low point of $26,880 whereas Ether went down to $1,805.

Uncertainty Regarding the Regulations of the Cryptocurrencies

Cryptocurrency regulations have been on the cards since the crypto winter in 2022. The market saw a massive decline in its valuation with the market capitalization going down from $3 trillion to $900 billion in months.

As a result, lawmakers and traders all around the world are now calling for tougher regulations on the industry. A lot of it is weighing on Bitcoin since the macroeconomic volatility is a major concern for traders.

However, data from Coinglass shows that traders in Asia are optimistic about the asset class. As of today, traders are mostly in long positions, with close to 54% long and 46% holding shorts.

Liquidation data also show that the short positions liquated in the last four hours were around $7.3 million. On the other hand, the liquidation for longs was around $1.57 million during the same period.

Traders had a more bullish approach for Ether since 90% of liquidations were shorts, at $3.36 million, versus $361,000 in longs. Experts believe that it could be because the regulatory situation in Asia has much more clarity than in North America.

Singapore, Japan, and other Asian countries are offering more clarity on regulations to their investors. Though there are some imperfections in the regulations, there is still more transparency and clarity.

Other Asian countries are following the same suit. Hong Kong plans to get all crypto exchanges licensed by mid-year. Even Taiwan plans on bringing a framework sometime this year.

Tighter Regulation and Crackdown by the US Authorities

The regulatory authorities in the US, such as the DOJ (Department of Justice) and the SEC (Securities and Exchange Commission) have now started to tighten their crypto regulations.

They are also now moving towards a tougher crackdown on the crypto firms and platforms that don’t comply with the rules and regulations.

U.S. DOJ’s Crypto Enforcement Director — Eun Young Choi — vows to have a tougher stance against the crypto trading platforms and the exchanges for illicit behavior.

She further said that the department would keep a close eye on companies that don’t abide by the KYC (know-your-customer) or anti-money laundering rules. Furthermore, it would also take action against those who don’t have extensive plans for mitigating risk and following compliance laws.

“We believe that focusing on such platforms that don’t comply with the laws will have a multiplier effect”, she said. The DOP plans on targeting the firms so that it could set an example for other operators in the market.

Crypto Exchanges Threatening to Leave the Country

In a bold move, many crypto companies such as Binance and Ripple are planning on exiting the US market. The increasing crackdown and the lack of clarity regarding crypto regulations are the major reasons behind their plans.

The US is still trying to figure out how it wants to proceed with the digital assets. As a result, it has created a lot of ambiguity and confusion in the market. On the other hand, many countries have been able to regulate the country in a better way.

For instance, Japan and the European Union have set comprehensive rules of law for cryptocurrencies. Therefore, many platforms are now planning on moving their operations abroad.