Crypto enters the global balancing act - Crypto Investor's Weekly 10.06-17.06

Cryptocurrency is just geopolitics in disguise.??

It’s not that surprising when you think about it. A new financial system that renders the state monopoly on money obsolete. For the first time, hard money created that operates free of state control or national borders.??

Just like with any other innovation, there are those that seek to bury their heads in the sand, those that try in vain to stop the winds of change and those that embrace and adapt to evolution.??

That’s certainly what we’re seeing happen at the moment, with the U.S. creating what could turn out to be one of the biggest instances of capital and intellectual flight straight into the hands of its geopolitical rivals.??

De-dollarisation has gone from the idea of anti-American cranks to a very real policy for countries around the world and the future of financial technology is high up on the agenda for many of the world’s ascending nations, including China. Check out our news section for more on Hong Kong swooping in to scoop talent and capital from the U.S. exodus.??

The UK’s pint-sized Prime Minister also stuck his head above the parapet to champion Web3 in the island nation.??

Europe remains a hotspot for crypto, with a progressive and comprehensive regulatory framework in the form of MiCA from the European Union, as well as a tech-savvy population all within the single market alone.??

But will the macro stop financial fruition on the continent? Rate hikes signal that fiscal tightening is set to continue, with the ECB remaining very cautious on outlook.??

In fashion news, Adidas partnered with an NFT artist. Do they love NFTs or are they just desperately trying to fill the Kanye-sized hole in their finances? We’ll let you decide.??

Let’s do this!??

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Chart of the week?

Source: Glassnode?

At one point, the individuals behind some of the largest Bitcoin mining companies were among the richest people in the industry. But, as many hobbyists found out, it’s harder to turn a profit in the mining business than it looks.??

They have a vital job that underpins the maintenance and security of the platform and they’re paid for it in BTC. Sounds good right? But to do that job in the world of modern cryptocurrency, it means that they need huge quantities of expensive machinery, the space to house it in, the electricity to power it with plus a whole lot more to keep those pricey electrics from heating over.??

This means that Bitcoin miners often have to sell their Bitcoin to cover their expenses as soon as they earn it. This can have quite a strong downward pressure on the BTC price.??

This graph from Glassnode shows that BTC selling from miners increased in June. This could be due to a slowdown from the hype of Ordinals (BTC NFTs), as well as mining difficulty and hashrate reaching an all-time high. All this eats into the profits of miners. Glassnode data shows that seven-day-average miner earnings dropped from $33.9 million in May to $25.8 million at start of June.??

This week’s crypto prices?

BTC – 7d Low/High: EUR 23,160 /24,625? // CHF 22,590 / 24,013?

ETH – 7d Low/High:? EUR 1,522 / 1,711? // CHF 1,484 / 1,668?

USDT – 7d Low/High: EUR 0.91 /0.93? // CHF 0.90/0.92?

PAXG – 7d Low/High: EUR? 1,761/1,794? // CHF 1,719 / 1,752?

VALOR – 7d Low/High: EUR 0.13/0.15? // CHF 0.12/0.14?

graphic?

Inflation is the big financial news of the week on both sides of the pond. U.S equities rose after the CPI for June came in under expectations, but the decoupling of digital and traditional assets appeared to hold as Bitcoin & Co did not recover in tandem.??

The European Central Bank hiked rates as expected and hinted that a further hike in July was very likely. ECB President Christine Lagarde also said that the outlook for growth and inflation “remains highly uncertain.”??

Investors hate uncertainty and that could be why we haven’t seen much movement in the markets, although prices were up very slightly on news of the ECB hikes. Bitcoin seems stuck in a rut with bulls buying dips but bears selling higher than the bulls can push. Bulls will probably have their sights on $31,000 while bears could try to drag prices down to the low $25,200s.??

Ether hit a glass ceiling at around $1,700, showing that there’s a lack of demand at higher levels, giving bears more control of the momentum. If bulls can get it together, their target could be around $1,900, whereas bears could try to drag all the way down to $1,352.??

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Tweet of the week ?

Source: Twitter ?

Remember the UK, once famed for slick financial services, now famous for...well let’s not get into that.??

But there has been some good news to come out of that fruity little island this week: none other than UK Prime Minister Rishi Sunak coming out to bat for cryptocurrency on Twitter.??

That’s right, the small man has a plan to turn the United Kingdom into a Web3 hub and he’s so thrilled that crypto investment titans a16z are setting up shop in the country that he’s probably let his tea go cold.??

Sunak sees this as a sign that the UK is a forward-facing country that is ready to invest in the future of finance and foster the next big wave of home-grown innovation.??

The London office will open in later 2023 and cooperate with universities within the country to support blockchain and startup development. Not everyone is thrilled though. Here’s an alternate take: Reuters?

Crypto news??

HSBC and Standard Chartered pressed by Hong Kong to take on crypto clients?

Hong Kong’s banking regulator is pressuring lenders including HSBC and Standard Chartered to take on crypto exchanges as clients, even as US regulators crack down on the industry.?

Full article: Financial Times?

HL Breaking: US lawmakers file ‘SEC Stabilization Act’ to fire Gary Gensler?

United States Rep. Warren Davidson has introduced the “SEC Stabilization Act” into the House of Representatives, announced on June 12. One of the bill’s main provisions is to fire Securities and Exchange Commission (SEC) Chair Gary Gensler.?

Full article: Cointelegraph?

Bank of China's BOCI issues first tokenized security in Hong Kong on Ethereum?

Bank of China investment bank BOCI issued fully digital structured notes worth 200 million of offshore renminbi ($28 million) on the Ethereum blockchain, making it the first Chinese financial institution to issue a tokenized security in Hong Kong.?

Full article: The Block?

Andreessen Horowitz to open its first international office in London?

U.S. venture capital firm Andreessen Horowitz, a major cryptocurrency investor, said on Sunday it will set up its first international office in London, at a time when U.S. regulators have increased scrutiny of the cryptocurrency sector.?

Full article: Reuters?

That was a lot of politics right???

Well, it’s nothing new. And like our man Oscar Gamble famously probably never said: ?

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?Just remember, you can still do all the great crypto stuff you love without ever thinking about America or China. All this progress is hardly going to disappear overnight.??

Bye!?

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