Weekly News Digest for May 1-7
Market Update
Last week, the cryptocurrency market saw fluctuations amid various bearish and bullish trends. Bitcoin's two-month streak above $60K was threatened as it dipped below that level before rebounding, amidst $271M in liquidations and a bearish technical pattern suggesting potential further declines. Ethereum and NFT sales also faced sharp declines, echoing broader market uncertainties. Amid these conditions, JPMorgan noted a selloff driven by retail investors, and Standard Chartered warned of a possible further drop to $50K for Bitcoin due to macroeconomic pressures. Despite these challenges, Bitcoin showed resilience with a rally above $63,000, causing a significant short squeeze. The week wrapped up with mixed signals, as Bitcoin continued to test resistance levels, and Ethereum maintained its position despite market fluctuations, all while analysts remained optimistic about Bitcoin's long-term prospects.
News of the Week
Cobra, the owner of Bitcoin.org, has expressed concerns over the U.S. government potentially banning the self-custody of bitcoin, comparing the situation to the historical illegalization of private gold ownership. While skeptics question the enforceability of such a ban, Cobra's warning has been echoed by others, like Dennis Porter of the Satoshi Action Fund, who is working to protect cryptocurrency rights, including self-custody, at the state level. Despite this, some in the community have responded to Cobra's concerns by noting bitcoin was designed to enable secure private ownership, casting doubt on the practicality of enforcing a self-custody ban.
US Lawmaker Slams SEC’s Investigation of Ethereum — Says Chair Gensler Intentionally Misled Congress
U.S. House Financial Services Committee Chairman Patrick McHenry criticized the SEC and its Chair Gary Gensler for the investigation into Ethereum, suggesting that Gensler intentionally misled Congress regarding whether ether should be classified as a security. McHenry accused the SEC of inconsistent and arbitrary regulation in the digital asset space, contradicting its previous positions. He also highlighted the need for clear regulatory frameworks like the FIT for the 21st Century Act to protect consumers and foster innovation within the American digital asset markets.
Tether announced a record $4.52 billion profit for Q1 2024, bolstered by direct operations and investment appreciations, including U.S. Treasuries, gold, and bitcoin. The cryptocurrency giant disclosed a net equity of $11.37 billion and revealed that $12.5 billion USDT was issued during this period. Additionally, Tether holds over $90 billion in U.S. Treasuries, providing a strong liquidity backing for the USDT issued.
领英推荐
Raoul Pal, a British financial expert, has predicted an upcoming "Crypto Summer," a period of euphoria in the digital asset market leading to increased excitement and valuations. Despite the current decline in cryptocurrency values, with bitcoin down 13% from the previous month, Pal remains optimistic, anticipating a significant rally he refers to as the "Banana Zone." Pal warns, however, that the market may experience "another 2 or so nasty corrections due to excess leverage," advising patience for those invested in cryptocurrencies.
Since USDT's launch on the TON blockchain two weeks ago, its supply has increased by over 70 million, totaling 130 million, making it the eighth-largest blockchain by USDT issuance. There are currently 34,438 USDT owners on the TON network, with the Ston.fi decentralized exchange holding the most significant portion. This growth spike follows a promotional earn campaign by the TON wallet offering high APY incentives for depositors, boosting its standing despite being a minor player compared to other networks.
Animoca Brands is collaborating with the Opal Foundation to create a vast Web3 ecosystem on Bitcoin, focusing on gaming, DeFi, entertainment, education, and culture. This move seeks to shift Bitcoin's role from just a store of value to a "store of culture" for the Web3 generation, underpinned by the BLIF token and the recent enablement of NFTs through ordinals on Bitcoin. The Opal Protocol, with Animoca Brands as the initial partner, is designed to foster a unified digital space merging finance, entertainment, education, and decentralized governance, marking a stride towards an open metaverse with improved digital property rights.
A study by Fidelity Digital Assets has found that bitcoin's volatility is declining as the cryptocurrency matures, positioning it as less volatile than some S&P 500 stocks. The study highlights that bitcoin's recent volatility levels were lower than that of 33 S&P 500 stocks and even some mega-cap stocks like Netflix over the last two years. This decreased volatility trend is akin to historical patterns seen in assets like gold, and it could make bitcoin more attractive to a broader range of investors.
David Marcus, CEO of Lightspark and former president of Paypal, predicts that Bitcoin will be the primary currency for artificial intelligence-related transactions due to its neutrality and digital nativity. He believes Bitcoin can overcome the inefficiencies present in fiat currencies and envisions it as the universal medium for AI value exchange, foreseeing its adoption once it matches AI speed requirements. Supporting this view, other industry figures like Joe Lonsdale of Palantir and Arthur Hayes of Bitmex have also linked Bitcoin with future AI technology advancements.