Bitcoin Plunges Below $57,000

The Breakdown First Five - Wednesday, May 1, 2024

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

5. Roger Ver Arrested 

Early Bitcoin evangelist Roger Ver has been arrested in Spain on tax evasion charges. Ver renounced his US citizenship in 2014, but according to lengthy allegations he wasn’t prepared to pay the full exit taxes on his Bitcoin. The Bitcoin was later sold in 2017 and the IRS is looking for their $48M cut. Many were ready to celebrate Ver’s arrest, but for the hardline libertarians who believe taxation is theft, Bitcoin Jesus has become a martyr. 

4. CZ’s Light Sentence

Binance founder CZ has received just 4 months in prison after pleading guilty to BSA violations. The judge rejected sentencing recommendations from the prosecution, believing that CZ is generally a good guy with a high potential for reform. A gigantic pile of 161 character references and genuine remorse encouraged the judge to take it easy on CZ. Another sin of the last cycle cleared up.   

3. Coinbase Rides The Lightning

Coinbase has launched their long-awaited Lightning integration in collaboration with Lightspark. Users can now pay over lightning using their Coinbase Bitcoin balance, making lightning payments more accessible to the exchanges massive user base. Coinbase has placed a $2000 limit on transactions and will charge a 0.1% processing fee. The low limit was described as “conservative”, potentially due to issues that plagued lightning integrations on other exchanges. 

2. Stablecoin Bill Shelved

After a hopeful month it looks like the stablecoin bill has been put on the backburner. Recent weeks have features optimistic reporting that indicated most of the heavy hitters in DC were willing to pass the bill. It was to be packaged with marijuana banking reform and attached to must-pass FAA funding. It now appears that the FAA bill will progress ‘clean’ without attachments, possibly because GOP Senate leader Mitch McConnell hates pot companies. 

1. Bitcoin Blowup

Bitcoin plunged below $57,000 overnight and looks set to close its first red monthly candle since August. If we close at current levels, this will be a 20% drop for the month. That would make April the worst month for Bitcoin since June 2022, as the industry reeled from the Luna collapse in May. $160M in long Bitcoin futures positions have been liquidated over the past two days, a little milder than the last few drawdowns. Sentiment is ice cold.