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Showing posts from April 18, 2021

Did a massive Chinese power outage cause Bitcoin’s crash down to $50k?

On-chain analyst Willy Woo argues a massive power outage in Chinese mining hub Xinjiang drove Bitcoin’s violent crash down to $50,000. Woo noted reports identifying the blackouts were published late last week, with the power outages occurring to facilitate safety inspections in response to a recent flooding accident at a local coal mine that saw 21 miners temporarily trapped underground after power and communications went down. According to the Cambridge Bitcoin Energy Consumption Index, or BECI , Xinjiang represents nearly one-quarter of the global hash rate. The analyst notes yesterday saw the largest daily drop in total Bitcoin network hash rate since November 2017, with hash rate plummeting from 172 million terahashes per second, or TH/s, to less roughly 154 million TH/s, according to Ycharts. Popular crypto market analyst, Willy Woo, has attributed the violent April 18 cryptocurrency crash to a sudden drop in hash rate resulting from a power outage in the Chinese region of X...

Coalition of US Senators Press President Biden for a Fourth Round of Stimulus Checks

While Americans are still getting their third stimulus payments, discussions of tacking on a fourth round of direct payments to Joe Biden’s trillion-dollar infrastructure proposal have started trending. Just recently, a coalition led by Senate Finance Chair Ron Wyden and over a dozen Democratic leaders wrote a letter to President Biden asking to get “much-needed relief to American families.” A Coalition of American Bureaucrats Want More Stimulus Payments Distributed Senate Finance Chair Ron Wyden and 21 Democratic senators want U.S. President Joe Biden to initiate a fourth round of stimulus payments. The last stimulus payments of $1,400 per individual and more funding for Americans with dependents are still being distributed. The U.S. senators have sent a letter to Biden requesting more “recurring, smartly-targeted, auto-stabilized direct payments” for American citizens. The coalition highlights that they want the direct payments “to be included in President Biden’s next economic ...

OIN Staking On AscendEX

PRESS RELEASE. AscendEX, formerly BitMax, an industry-leading digital asset trading platform built by Wall Street quant trading veterans, has announced the launch of its staking service for OIN token (OIN) on Apr 16 at 1:00 p.m. UTC. AscendEX’s innovative staking product allows users to participate in staking and earn rewards directly on the platform. OIN joins a growing portfolio of notable tokens including DOT, ATOM , and XTZ . AscendEX will be receiving validator rewards by running an OIN node which will then be passed along to staking users. OIN is the first DeFi platform that provides liquidity mining through their decentralized exchange and a loan platform starting with the Ontology platform and ultimately expanding to other top platforms through cross-chain functionality. OIN will build the bridge technology to seamlessly integrate Ethereum into its ecosystem, opening up to all of the current DeFi space players. OIN’s dedication to DeFi is reflected in its three-pronged m...

ASIC calls for closer engagement, but crypto industry says rules are unclear

Australia’s securities regulator wants crypto firms to work closely with it, but industry executives are unsure of their obligations. The Australia Securities and Investments Commission, or ASIC, is urging local blockchain and crypto firms to engage with regulators to help them foster innovation in the region. Speaking at the Australia Blockchain conference on Monday, April 19, senior advisor of strategic intelligence at ASIC, Jonathan Hatch, emphasized the regulator is trying to build trust and collaborate with the crypto economy. Panelist Kevin Saunders, the CIO of Monochrome Asset Management, stated that while the blockchain sector could do more to understand the ASIC regulatory framework, the commission needs to provide greater clarity as to the industry’s compliance obligations. Saunders took aim at the opacity of existing regulations, characterizing the industry’s oversight as “too ephemeral for large institutions to engage with it”. Commenting on the challenges in the...

US SEC Expected to Impose ‘Fair Amount’ of Regulation on Cryptocurrencies, Says Former Chairman

Former SEC Chairman Harvey Pitt says that he expects a “fair amount” of crypto regulation coming from the U.S. Securities and Exchange Commission (SEC) following the confirmation of the new chairman. Former SEC Chair Expects ‘Fair Amount’ of New Crypto Regulation Harvey Pitt talked about the future of cryptocurrency regulation under the new chairman, Gary Gensler, in an interview with Bloomberg Friday. Pitt is the American lawyer who served as the 26th chairman of the U.S. Securities and Exchange Commission (SEC), from 2001 to 2003. With the market debut of Coinbase via a direct listing on Nasdaq, Pitt was asked what he expects to happen with the regulation of cryptocurrencies and cryptocurrency exchanges. The former SEC chair said: I expect to see a fair amount of regulation of cryptocurrencies. Right now, I think the rules are unclear. “Whether or not certain offerings involve securities or not is unclear. There is a definite likelihood that the SEC will move forward. Gary G...

Bank of America Survey: 74% of Fund Managers See Bitcoin as a Bubble

The most recent Bank of America Fund Manager Survey shows that about three out of four professional investors think that bitcoin is a bubble. The fund managers also rated bitcoin second on the list of the most crowded trades. Recently, investment bank JPMorgan also warned that cryptocurrency as a sector is in a bubble. Bank of America Survey Shows Most Fund Managers Think Bitcoin Is a Bubble The Bank of America Fund Manager Survey for April shows that the majority of fund managers see bitcoin as a bubble. The survey asks 200 fund managers with $533 billion in assets under management. Answering the question of whether bitcoin is a bubble, 74% of investors replied “yes.” Just 16% said “no” to the question and 10% said they either did not know or did not want to answer the question. In comparison, only 7% of investors think that the U.S. equity market is in a bubble. Most respondents think that the equity market is in “a late-stage bull market.” Chart showing 74% of investors who re...

US Lawmaker Warns Treasury Secretary and Fed Chair Not to Ignore Bitcoin or America Will Fall Behind

Congressman Kevin McCarthy has urged Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell not to ignore bitcoin like they have been trying to do. He believes it is the future, emphasizing, “I do not want America to fall behind” other countries. Government and the Fed Should Not Ignore Bitcoin GOP leader Kevin McCarthy talked about bitcoin in an interview with CNBC last week. Congressman McCarthy serves California’s 23rd district and is currently the Republican leader in the U.S. House of Representatives. He was asked specifically if he thinks that Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell have a good understanding of digital currencies or bitcoin given their recent comments and what advice he has for them. A longtime proponent of bitcoin, McCarthy said in July 2019, “I like bitcoin” and the security of the blockchain technology behind it. Reiterating his view on bitcoin back in 2019, the congressman replied, “I was right then ...

Crypto users demand reinstatement of Pakistani government adviser following sudden resignation

Zia Ullah Bangash's potential departure from an important role in facilitating Pakistan's regulatory environment for crypto had many threatening to withhold votes and demanding answers. Many users on social media have started an online campaign for Pakistan Prime Minister Imran Khan to bring back pro-crypto adviser Zia Ullah Bangash. On Saturday, Bangash, the science, technology, and information technology adviser to Mahmood Khan, the chief minister of the Khyber Pakhtunkhwa province, announced he would resign his position. Bangash cited “unavoidable circumstances” in his decision to leave his advisory role in addition to responsibilities in his constituency — he previously served as a member of the provincial assembly of Khyber Pakhtunkhwa, or KP. Khan reportedly has not yet officially accepted his resignation. The sudden departure of a figure many crypto users in Pakistan seemingly considered a proponent for blockchain and digital currency projects prompted a swift bac...

Dogecoin, CryptoCurrency Reddit communities surge as crypto euphoria heats up

The subreddits for Dogecoin and CryptoCurrency added a combined 232,697 subscribers last week, far outpacing the growth of all other communities. With much of the market fixated on Bitcoin’s ( BTC ) sudden price correction over the weekend, retail interest in digital assets appears to be on the rise, according to the latest statistics from Reddit. The r/dogecoin community added 145,859 weekly subscribers, according to Subreddit Stats. The gains are hardly surprising given DOGE’s dramatic rally over the past week. The meme-based cryptocurrency skyrocketed 400% during that period, bringing its yearly returns to an eye-watering 5,000% . DOGE’s parabolic rally moderated over the weekend , with social media sentiment data from The TIE and Cointelegraph indicating more pain in the short term. That’s because price action is often correlated with social media engagement; a decline in the latter is sometimes a precursor to bearish price action in the near term. Meanwhile, the r/Cry...

Hedge Fund Investment Firm Brevan Howard to Start Investing in Cryptocurrencies

Brevan Howard, one of Europe’s largest hedge funds with $13.7 billion in assets under management, is reportedly set to start buying cryptocurrencies. The investment firm previously bought a 25% stake in One River Asset Management, which runs a number of cryptocurrency funds. Major Hedge Fund to Start Investing in Cryptocurrencies Investment management firm Brevan Howard is reportedly preparing to start buying cryptocurrencies, Bloomberg reported, citing a person familiar with the matter. The firm’s cryptocurrency investments will be overseen by Distributed Global’s co-founders Johnny Steindorff and Tucker Waterman. Distributed Global is an asset management company that focuses on digital assets. Founded in 2002, Brevan Howard describes itself as “one of the world’s leading global macro absolute return managers.” The firm manages assets for institutional investors around the globe including sovereign wealth funds, corporate and public pension plans, foundations, and endowments. The ...

Top 5 cryptocurrencies to watch this week: BTC, VET, SOL, EOS, FTT

The bulls are trying to stabilize Bitcoin price and if they succeed, VET, SOL, EOS and FTT could quickly bounce back to their local highs. Bitcoin ( BTC ) price witnessed a sharp dump to $50,900 on April 18, which some analysts attribute to a drop in hash rate and rumors of possible action by United States regulators against unnamed “financial institutions” alleging crypto-related money laundering. While it is difficult to pinpoint a single reason, the sale of roughly $5 billion worth of COIN stock by Coinbase executives could have also played a major role in the fall. Insider selling, especially just a few days after a high-profile listing is considered a bearish sign. Crypto market data daily view. Source: Coin360 After this most recent pullback, investors will be on the fence on whether they should buy the dips or close their positions in anticipation of further decline? Traders should keep a close watch on the strength in the recovery as that will provide an insi...

China is studying crypto as an investment tool, says PBoC deputy governor

The central bank official said stablecoins issued by private companies may require "stronger regulatory rules" than Bitcoin. Li Bo, recently appointed deputy governor of the People’s Bank of China, or PBoC, reportedly spoke on the benefits of crypto as an investment tool while highlighting regulatory uncertainty in the country surrounding digital assets. According to Chinese journalist Colin Wu, Li made the comments at the Boao Forum in southern China on Sunday. The PBoC head said there are still regulatory risks for the central bank, citing its previous ban on initial coin offerings and cryptocurrency exchanges. Li reportedly said the PBoC will “continue to maintain the current measures and practices” as it explores any potential change in regulation, but seemed to recognize the investment potential of crypto. “We believe that Bitcoin and stablecoins are encrypted assets,” said Li. “Encrypted assets are an investment option, not currency itself. It is an alternative inv...

Peak fear? Bitcoin funding rates crash to lowest levels in 7 months

The funding rate of Bitcoin dropped to a level unseen since September 2020, signaling fear in the market. The funding rate of Bitcoin ( BTC ) has dropped to levels not seen since September 2020 as the price of Bitcoin plummeted below $52,000 on April 18. Quant trader and analyst Lex Moskovski says it shows fear has returned to the market. According to the data from Glassnode, the average Bitcoin futures funding rate across all exchange dropped to as low as around -0.03% on Sunday What is funding rate and why does it dropping matter? Bitcoin futures exchanges use a mechanism called "funding" to achieve balance in the market. The way the mechanism works is simple: if there are more longs or buyers in the market, the funding rate rises, and vice versa. As such, when the funding rate turns negative, it means the majority of the market is short-selling Bitcoin, indicating fear in the market. Moskovski said : "Wow, it's been a long time since we've seen fundi...

More IRS summonses for crypto exchange account holders

The recent John Doe summons developments indicate that the IRS is seriously interested in crypto — better to report than to be audited. The United States Internal Revenue Service has been hunting crypto vigorously for more than five years now, and the pace is getting faster. A couple of decades ago, the IRS was after offshore accounts, and that effort was among the most successful in the IRS’ history. Now, it’s crypto the IRS is after, and there’s no suggestion that the IRS intends to fail. The IRS wants crypto tax data in a big way, from asking about crypto on each tax return to its latest Hidden Treasure initiative and more. The collective efforts of the IRS are impressive, and it is unlikely that the IRS will stop anytime soon. They are going to court as well, going after the exchanges that have customer data. First, there was Coinbase, and now, a federal court in Massachusetts has entered an order authorizing the IRS to serve a “John Doe summons” on Circle Internet Financial ...

OFAC Escalates Russian Sanctions Listing Bitcoin Addresses, US Treasury Crypto Crackdown Rumors Spread

Rumors concerning the U.S. Treasury cracking down on several financial institutions over money laundering has been spreading like wildfire on social media and forums. There’s been no formal announcement from the U.S. entity and at this stage, the news is widely considered FUD. However, some are assuming the hearsay stems from the recent Russian sanctions announcement last Thursday. On April 15, the U.S. Treasury published a press release explaining government escalated sanctions against the Russian government and the announcement touches upon the use of cryptocurrency addresses for illicit transactions. U.S. Treasury Rumors Flood Social Media, OFAC Cracks Down on 16 Groups That Allegedly Leveraged Crypto Assets On social media and cryptocurrency forums, rumors have spread about the U.S. government cracking down on the crypto industry. For instance, a Twitter account called “Fxhedge” tweeted about the U.S. Treasury on Sunday, April 17. “U.S. Treasury to charge several financial i...

SEC loses a battle to win the war? Ripple dissociates from pumping XRP

While the defendants may have gained an edge in pre-trial rulings in SEC v. Ripple Labs, are Ripple’s legal troubles now over? When the United States Securities and Exchange Commission filed legal action against Ripple Labs and its top-two executives in December, alleging that its XRP coin was in fact a security and that the firm had raised over $1.38 billion through an unregistered securities offering in 2013, many wondered if XRP would even survive . Some exchanges delisted XRP ; some asset managers sold their XRP tokens. XRP had lost its place as the top 3 currency by market capitalization and was even looking like it could drop from the top 10. But reports of Ripple’s demise were spectacularly exaggerated. As of mid-April, XRP had increased 532% over the previous 12 months, and things also took a favorable turn recently in the SEC lawsuit, with the defendants prevailing in two discovery rulings — even turning the tables on the regulatory agency by winning access to the ...