Weekly News Digest for Jun 8-14
Market Update
This week, the cryptocurrency market experienced a mix of stability and volatility, with major cryptocurrencies like Bitcoin and Ethereum showing relatively steady but tight trading ranges and a mid-week dip. The market saw significant movements in meme coins, which contributed to a $4 billion capital injection ahead of the Federal Reserve meeting. Double-digit gainers like Monero, up 37% over 30 days, and meme coins like BRETT, with a 65.8% increase, contrasted with notable losers like WIF, down 22.1%. Overall, meme coins dominated the gainers' list, reflecting speculative interest and market volatility.
News of the Week
Former U.S. President Donald Trump has pledged his support for bitcoin mining, calling it a defense against the creation of a central bank digital currency (CBDC) by the Federal Reserve. In a meeting with bitcoin mining leaders, Trump emphasized the need for the remaining bitcoin to be produced in the U.S., to maintain the nation's energy dominance. Trump's stance has won him support within the cryptocurrency community, as he vows to counteract President Biden's anti-crypto policies and positions himself as the pro-crypto presidential candidate.
U.S. spot bitcoin ETFs bounced back from two days of outflows, recording $100.9 million in inflows, with Fidelity's FBTC attracting the highest at $51 million. Other significant contributors to the rebound included Blackrock's IBIT with $16 million, Bitwise's BITB with $15 million, Vaneck's HODL with $12 million, and Ark Invest's ARKB with $9 million in net inflows. The 11 U.S. ETFs have collectively gathered $15.52 billion to date, with the value of bitcoin reserves standing at $60.01 billion.
Microstrategy plans to offer $500 million of convertible senior notes in a private offering to finance further bitcoin acquisition. The company will also give initial purchasers the option to buy an extra $75 million within 13 days from issuance. These unsecured notes will mature in 2032, and the proceeds will go towards buying more bitcoin and general corporate expenses.
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Russian Ambassador to China, Igor Morgulov, has revealed that around 30 countries are showing interest in joining the BRICS economic group. Earlier in January, BRICS expanded its membership by welcoming five new countries including Egypt, Iran, the UAE, Saudi Arabia, and Ethiopia. Meanwhile, Bolivian President Luis Arce has recognized the importance of BRICS in moving towards a fairer world order and challenging U.S. dominance.
The Paraguayan Ministry of Industry and Commerce, led by Javier Gimenez, plans to sell the country's energy surplus to legal Bitcoin mining operations as part of an industrial transitional strategy. In a meeting with Brazilian officials, Gimenez explained that this move aims to utilize the energy that currently powers only a few industries, while the ultimate goal is to attract more labor-intensive industries to create jobs. The plan is set to unfold over three years, transitioning from cryptocurrency mining to other industries, despite some expected backlash.
In Nigeria, despite a crackdown on cryptocurrency exchange platforms, interest in digital currencies remains strong with dogecoin popular in conservative northern states and bitcoin in Delta State. Nigerians in states with underdeveloped banking infrastructure show a preference for the stablecoin USDT, while Ethereum is most searched in the southeast. A Nigerian lawyer suggests the adoption of operational risk-based regulation instead of driving out cryptocurrency trading to exert influence over the crypto industry.
Mexican billionaire Ricardo Salinas has actively advocated for purchasing Bitcoin as a method to counteract inflation, particularly in countries like Argentina and Venezuela where currency devaluation is significant. He acknowledges Bitcoin's capped supply at 21 million as a strength, contrasting it with the unpredictable printing of fiat money by governments, which can lead to inflation. Salinas recently encouraged his social media followers to invest in Bitcoin, presenting it as a viable savings option in the face of decreasing national currency values.
Ripple and Archax have expanded their partnership to tokenize hundreds of millions of dollars of real-world assets on the XRP Ledger, aiming to make it a leading blockchain for such tokenization. This collaboration will allow financial institutions to tokenize assets, paving the way for various new applications. The announcement was made during the XRP Ledger APEX 2024 summit in Amsterdam, building on a previous 2022 partnership between Archax and Metaco, which is now owned by Ripple.
Robert Kiyosaki, the author of "Rich Dad Poor Dad," believes bitcoin is the simplest path to millionaire status, contrasting it with the challenges of entrepreneurship. He maintains that bitcoin 'does the hard work' for him whereas becoming a millionaire through business demands intelligence, dedication, and luck. Kiyosaki, who has consistently supported bitcoin, predicts that its value could surge to $350,000 and views it as 'people's money' alongside gold and silver, which he considers 'God's money.'