Bitcoin Magazine B2?
Welcome to Bitcoin Magazine B2?, a newsletter focused on the latest insights in Bitcoin and business—from the world’s leading source for Bitcoin news.
We are excited to start sharing Bitcoin Magazine B2? with you on a bi-weekly basis.
Banking Contagion Continues
The banking contagion outlined in our last update continues as 瑞信 , the Swiss banking giant, was the next to face solvency issues.
It quickly circulated that the distressed institution would be acquired, and 瑞银集团 was the reported bidder. Once again, this unwind was taking place during the weekend, and in a rush to finalize before the market open, shareholder votes were overruled.
On Sunday, March 19, 2023, UBS acquired Credit Suisse for $3.2 billion. Only two days earlier, Credit Suisse was valued at over $7 billion.
Deutsche Bank Feeling Contagion Effects
The next major banking institution to feel the effects of the ever-growing contagion was 德意志银行 , one of the world’s 30 most systemically important banks.
The bank’s “credit default swap,” which acts as insurance on the solvency of the underlying institution, skyrocketed in price on March 24.
U.S Investigates Ways To Guarantee Bank Deposits
Meanwhile, U.S. officials stated they are exploring ways to provide more guarantees for banking deposits.
The FED’s balance sheet also retraced to the upside, erasing months of tightening efforts.
The Banking Unwind And Bitcoin Price
A 摩根士丹利 representative directly correlated the banking unwind, and its resulting newly injected liquidity, as impacting Bitcoin’s recent higher price.
“Expectations of increased U.S. dollar liquidity to support the banking sector following a string of forced closures has helped bitcoin (BTC) rally, but other factors are also at play, Morgan Stanley said in a research report Sunday.”
Federal Reserve Raises Rates 25 Bps
The Fed raised rates 25 bps since our last update which furthers widespread concern around the already stressed banking system used to a near zero cost of capital.
Bitwise Launches BITC Bitcoin Linked ETF
In more Bitcoin-centric news, Bitwise Asset Management launched BITC, a new Bitcoin-linked ETF.
领英推荐
“Research shows that a front-month methodology, while desirable for traders with a short time horizon, can generate roll costs that significantly weigh on long-term performance. 1 BITC aims to address this challenge by using an “optimum roll” strategy that considers all available contracts and intelligently selects the contracts with the lowest level of contango (or the highest level of backwardation) in an effort to maximize long-term returns.”
Nasdaq Announces Crypto Custody Product
Nasdaq announced a long-awaited crypto custody product that is set to release in Q2 of this year. Despite the collapse of many major industry participants and a reluctance to continue serving the space from some legacy institutions, Nasdaq is pushing forward with their launch.
MicroStrategy Pays Off Silvergate Loan
微策略 also made headlines after paying off their Silvergate loan at a discount and purchasing an additional 6,455 bitcoin.
"The loan from the failed crypto-friendly bank was retired about two years early, releasing about 34,619 coins that were held as collateral, the enterprise-software maker said in a US Securities and Exchange Commission filing on Monday.”
Binance Sued By The CFTC
The wave of regulatory crackdowns also continued this week as Binance and its co-founder and CEO,?Changpeng Zhao?(CZ), were sued by the CFTC. The lawsuit accuses Binance of several acts of misconduct, some of which may be interpreted as hunting the positions of their own clients.
“The Commodity Futures Trading Commision has sued Binance, the world’s largest cryptocurrency exchange by volume, and its CEO Changpeng Zhao, alleging that the company offered the sale of unregistered derivatives to customers in the United States.”
Bitcoin Continues To Trade Strong
The Institutional developments within the Bitcoin space and the broader economy have been explosive over the past few weeks. Despite some of the highest levels of turbulence the traditional financial system has ever seen — bitcoin still seems to be trading strong based on fundamentals. At the time of writing, bitcoin’s price is holding above $27,000.
An Impossible Position For The FED
A centrally-controlled and manipulated financial system is fragile by nature and the massive amount of leverage adds even more risk. The Fed seems to be in the impossible position of choosing between saving the banking sector — by offering bailouts and injecting liquidity, or saving the dollar which is all but guaranteed to be further debased over time.
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Regards,
Dillon Healy , Contributing Editor Bitcoin Magazine B2?
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1 年Countries are putting pressure on the U.S. dollar and its sliding power as the major trading source. Because it's backed with nothing but a promise and the strength of the military. The power struggle for a new trading order is happening without much of the U.S. public understanding . Good article