The Number of Bitcoin Owners Continues to Grow – Crypto Weekly Update

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This week, the total market capitalization exceeded 859 billion EUR. The decrease at the 7-day interval is 4.76%. Bitcoin decreased by 7.56% during the week to a current value of over 19,400 EUR. Bitcoin dominance is 43.1%.

Source: Coinmarketcap

The Number of Bitcoin Owners Continues to Grow

One of the biggest advantages of Bitcoin and blockchain technology is transparency. It makes it possible to track various metrics related to network activity to help investors in their investment decisions. One of the metrics often sought by investors is wealth distribution – an analysis of addresses based on the amount of bitcoins held.

Earlier this week, a very interesting trend was noted in the metrics of bitcoins distribution. The number of addresses with balance greater than 1 bitcoin rose by 13,091 just in the last week. Moreover, the total number of such addresses has reached new ATH at 865,000. This phenomenon signals that a number of investors have decided to expand their exposure to Bitcoin during the price correction.

Christian Ander, the founder of the Swedish Bitcoin exchange BT.CX told Cointelegraph that „this is good for the ecosystem that it’s growing from the ground up because want the economy to be bottom up.” His statement is related to the fact that the distribution of bitcoins among more and more users gives it a chance for wider adoption and fewer price fluctuations. If the number of small and medium-sized investors increases globally, the likelihood that the amount of whales that can manipulate the market will gradually decrease.

In addition, there has also been a sharp increase in the number of addresses holding more than 0.01 BTC over the past week, suggesting that retail investors are accumulating Bitcoin in a significant way at current price levels. On the other hand, the number of addresses holding more than 100 BTC has decreased by 136, indicating that some of the larger investors decided to get rid of some of their bitcoin during the downturns. Source

Deloitte Joins Forces With NYDIG

Deloitte, a global audit, tax, and financial advisory services giant is launching a new initiative to promote the global adoption of Bitcoin during the cryptocurrency market slump.

In the new initiative, Deloitte is joining forces with crypto company New York Digital Investment Group (NYDIG) to jointly help small, medium and large businesses with the implementation and adoption of digital assets. In their joint statement, the two firms say that businesses from different parts of the world are increasingly looking for ways to access digital assets. Thus, the alliance between Deloitte and NYDIG will aim to accelerate bitcoin adoption in companies while ensuring regulatory compliance.

According to a joint announcement on Monday, NYDIG and Deloitte are launching a strategic alliance to create a centralized approach for clients looking to adopt bitcoin products and services, which include things like loyalty and rewards programs, paying a portion of wages in bitcoin or various other employee benefits.

“The future of financial services will center around the use of digital assets, and we are focused on advising our clients on ways to engage in a regulated and compliant way,“ said Richard Rosenthal, Deloitte’s digital assets banking regulatory practice lead and principal. Source

Circle Launches Euro Stablecoin

Circle, the company behind the issuance of the second largest stablecoin on the market, USDC, is launching a new fiat reserve-backed stablecoin called Euro Coin.

The new Euro Coin, whose value will be pegged to the euro at a 1:1 ratio, will be launched on the Ethereum blockchain network as an ERC-20 token later this month, with support for other networks likely to be available in the coming months.

Circle said in an accompanying press release that the Euro Coin is fully backed by euro-denominated reserves, which are „conservatively held in the custody of leading financial institutions in accordance within the U.S. regulatory perimeter.“

Circle CEO Jeremy Allaire said on Twitter that the Euro Coin will be issued under the same regulatory rules and will be as safe, liquid and transparent as the USDC stablecoin. According to his tweet, the Euro Coin expands opportunities for payments, finance, international trades and broader use cases for digital asset markets. Source

Cardano Delays Vasil Hard Fork

Input Output Hong Kong (IOHK), the blockchain company behind the Cardano blockchain, has released a report earlier this week announcing a one-month delay to the long-awaited Vasil upgrade.

The Vasil upgrade is set to provide a “massive performance improvement to Cardano” and its smart contract capabilities, according to Cardano co-founder Charles Hoskinson. The update was originally scheduled to take place on June 29, but according to news, it will most likely take place during the last week of July.

In a Monday blog post, IOHK’s head of delivery and project Nigel Hemsley noted that the Input Output Global (IOG) team working on the update „is extremely close to finalizing the core work,“ but there are still seven bugs that remain unresolved and require work. Fortunately, none of them are categorized as “severe”.

The hard fork, named after Bulgarian mathematician Vasil Dabov, is one of the most complex development programs to date, according to the developers. It is expected to dramatically improve the scalability of the network, which should boost adoption and increase interest in using Cardano. Source

Terraform Labs Employees Can’t Leave South Korea

According to a Monday report by the JTBC news channel, top employees of Terraform Labs have been banned from leaving South Korea.

The Financial and Securities Crimes Investigation Unit in the southern Seoul district, which is in charge of the investigation into the collapse of stablecoin UST and cryptocurrency LUNA, blocked certain key Terraform Labs employees from leaving Korea to stop them from abruptly fleeing the country amid the ongoing investigation

Daniel Hong, a former Terraform Labs developer, independently confirmed the JTBC report on Twitter on Monday, adding that he could not leave the country because „the Korean government has imposed an exit ban for all ex-Terraform Labs employees.“

According to multiple reports, the special unit is investigating Terraform Labs and its co-founders Do Kwon and Daniel Shin in connection with several allegations, including tax evasion and possible money laundering. Source

Fed Raises Interest Rates

The Federal Reserve raised its benchmark interest rate by 75 basis points last week in an effort to combat the ever-growing threat of double-digit inflation.

The 75 basis point rate hike is the most aggressive interest rate increase since 1994, and it is the third rate hike this year. As a result, the key interest rate in the US is currently in the range of 1.5-1.75%.

“Clearly, today’s 75 basis point increase is an unusually large one, and I do not expect moves of this size to be common,” Powell said. He added, though, that he expects the July meeting to see an increase of 50 or 75 basis points, depending on the path of inflation.

The Fed is expected to continue its aggressive policy in the coming months, with estimates suggesting that the interest rate could move up to a range of 3.25% to 3.5% by the end of the year. Source

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Bitcoin Has Reached its New Low for This Year

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This week, the total market capitalization exceeded 902 billion EUR. The decrease at the 7-day interval is 22.41%. Bitcoin decreased by 29.3% during the week to a current value of over 20,100 EUR. Bitcoin dominance is 44.4%.

Source: Coinmarketcap

Bitcoin Has Reached its New Low for This Year

The cryptocurrency market plunged into a massive sell-off earlier this week. Tensions in global financial markets as well as macroeconomic uncertainty wiped several hundred billion dollars of wealth from the market in the past 72 hours.

Bitcoin, the most popular cryptocurrency, has seen a loss of -24% in the last three days, and its value has plummeted to $20,100, its lowest price since December 2020. The sell-off has not escaped the market number two Ethereum, which has plunged as much as 29% in the last three days and is slowly approaching the psychologically important price support at $1,000.

The trigger for the sell-off not only in the cryptocurrency market, but also in the stock market, was negative news and ongoing concerns about rising inflation. Based on last week’s data, the Consumer Price Index in the United States accelerated to 8.6% YOY in May from 8.3% in April, while experts were expecting inflation to be around 8.3%. Investors are now worried that belt-tightening in the form of anti-inflationary policy by the Fed may be even more aggressive, which does not play into the hands of risk assets.

Investors have less and less appetite for risk in uncertainty and are therefore shifting their capital into safer forms of investment, such as bonds. This has been reflected in recent days, for example, in the rise in yield on 10-year Treasury rate, which has risen from 3.04% to 3.40% over the past five days.

In the current situation in the cryptocurrency market, the market can be expected to be volatile for some time to come and volatility will be higher than it has been in recent weeks. However, the downturns in the financial markets offer investors a unique opportunity to create or expand their investment portfolio. Source

Celsius in Troubles

The current difficult situation on the cryptocurrency market was not helped by the latest news regarding the lending platform Celsius, which suspended all withdrawals from its platform last Sunday.

Celsius Network is a centralized platform that offers returns on various cryptocurrencies including Bitcoin, Ethereum or many other crypto assets. In a way, the platform resembles a kind of „crypto bank“ but functions more like a hedge fund. 

The whole system of the platform works very simply. Users deposit their crypto assets on the platform, and based on their assets, they can earn interest of up to 10% APY. The platform on-lends the assets it receives to other entities and institutions at a higher interest rate. 

The suspension of withdrawals immediately triggered speculation as to whether Celsius was sufficiently liquid and able to meet its obligations to clients. The power of blockchain technology lies precisely in its transparency, which allows companies‘ clients to directly monitor open positions.

Members of the crypto community immediately drew attention to one of Celsius‘ open positions on the Oasis platform, where Celsius borrowed a huge amount of DAI stablecoin in exchange for crypto collateral. With the price of Bitcoin falling, the position was fast approaching liquidation, which would mean that the company’s collateral could be „liquidated“ when the Bitcoin price fell even further.

Fortunately, over the past two days, Celsius has repeatedly added collateral to the WBTC-A vault 25977 position, moving its liquidation price from the original $22,000 to the current $14,000. Thus, Celsius continues to keep its position open, allowing it to gradually pay back its DAI loan and increase their Collateralization Ratio.

How the situation will develop further is still questionable. However, Celsius has significantly damaged its reputation by suspending withdrawals, and if withdrawals are resumed, a huge outflow of capital from the platform to users‘ private wallets can be expected. Source

Ethereum Launches Proof-of-Stake on Testnet

On Wednesday, June 8, a long-awaited transition from the  Proof-of-Work algorithm to a new model called Proof-of-Stake was made in an Ethereum testnet called Ropsten.

The Ropsten testnet is considered to be the oldest and most popular testnet on the Ethereum blockchain, allowing developers to test and optimize the blockchain before putting various improvements on the mainnet. Ropsten is almost identical to the mainnet, with the key difference that no “real” funds are at risk if any technical issues occur.

Several leading decentralized applications responded immediately to the launch of the new consensus algorithm on the testnet and decided to deploy their applications on the Ropsten, in order to support development and also to test the performance of their applications on the new PoS model. 

Ethereum network developers are also planning to transition PoS to two other public test networks, Sepolia and Goerli, in the near future for optimization and testing before putting Proof-of-Stake on the main network. Source

Survey: 90% of Americans Plan to Buy Crypto in 2022

Despite several bearish signals in the cryptocurrency market, the majority of people remain positive and see the downturns in the cryptocurrency market as the new opportunity.

The latest survey from Bank of America, the largest commercial bank in the US in terms of deposits and one of the largest companies of its kind in the world, showed that the majority of retail investors plan to buy cryptocurrencies later this year.

The survey, conducted in early June on a sample of 1,000 respondents, found that 90% of respondents were preparing to buy cryptocurrencies within the next six months. The survey further noted that the number of users who owned cryptocurrencies was similar to the number who wanted to buy.

According to Bank of America, 30% of respondents said they had no intentions of selling their cryptocurrencies during the next six months despite the massive decline that the crypto market has suffered.

Another interesting statistic is that 39% of respondents noted that they used cryptocurrencies as a means of payment for online purchases. This number is a positive surprise, as most investors see cryptocurrencies as just an investment or speculation tool. However, the survey shows that the popularity of crypto-to-fiat products continues to grow. Source

Gary Gensler Worries About New Crypto Bill

In last week’s market overview, we informed you about a bipartisan bill that was introduced in the Senate of the United States, aimed to create a regulatory framework for cryptocurrencies in the US.

One of the requirements in the bill was that priority oversight of the cryptocurrency market would no longer be conducted by the US Securities and Exchange Commission (SEC), but that oversight of the cryptocurrency market would fall under the US Commodity Futures Trading Commission (CFTC).

However, SEC chairman, Gary Gensler, is not very enthusiastic about this proposal. Gensler is concerned that the bill could weaken investor protections in traditional financial markets.

At Tuesday’s CFO Network Summit, The Wall Street Journal asked Gensler what he thought of the new bill. „We don’t want to undermine the protections we have in a $100 trillion capital market. We don’t want our current stock exchanges, mutual funds, or public companies to, sort of inadvertently by a stroke of a pen, say ‘you know what, I want to be non-compliant as well, I want to be outside of this regime that I think has been quite a benefit to investors and economic growth over the last 90 years,“ said Gensler.

At the summit, Gensler said the SEC wasn’t looking to extend its jurisdiction and that some cryptocurrencies are already under the jurisdiction of the agency since they qualify as being a security. Senators mostly agreed with Gensler’s view that some altcoins would likely be considered securities, while Bitcoin and Ethereum should be classified as commodities. Source

Interesting Fact: Microstrategy and Tesla at a Loss

The two largest companies, Microstrategy and Tesla, which have added Bitcoin to their balance sheets over the past few years, are in unrealized loss at current price levels.

According to data from Bitcointreasuries.net, Microstrategy, led by Michael Saylor, spent a total of $3,965,863,658 to purchase 129,218 BTC. Although the company has been in profit most of the time on its bitcoin investments, recent events and price corrections in the cryptocurrency market have caused the value of bitcoins under Microstrategy’s management to currently stand at just $2,689,427,156, which means that the company is at an unrealized loss of nearly $1.3 billion on its investments. However, Michael Saylor has declared that his company will continue to pursue its bitcoin policy.

Tesla is in a similar position, having surprised the general public with its purchase of 43,200 bitcoins worth $1.5 billion in February 2021. However, the current value of bitcoins under Tesla’s management is only $899 million, 5which means Tesla is at an unrealized loss of $600 million on its investment. Source

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Institutional Interest in Cryptocurrencies is Trending Again – Crypto Weekly Update

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This week, the total market capitalization exceeded 1.16 trillion EUR. The increase at the 7-day interval is 0.86%. Bitcoin decreased by 0.4% during the week to a current value of over 28,200 EUR. Bitcoin dominance is 46.5%.

Source: Coinmarketcap

Institutional Interest in Cryptocurrencies is Trending Again

A recent report from CoinShares, which tracks various funds focused on investing in digital assets, shows that many institutions are showing renewed interest in allocating their capital to cryptocurrencies at current price levels.

According to the report, institutional investors poured 99.5 million dollars into crypto funds over the past week, marking the second consecutive week in which the funds have seen net positive capital inflows.

Funds based on the most popular cryptocurrency, Bitcoin, fared best during the past week, with inflows of $125.9 million. Bitcoin-based funds have seen net inflows of $506.2 million year-to-date.

However, the second largest cryptocurrency Ethereum did not fare too well during last week. Institutional investors withdrew $32.3 million from funds, with Ethereum-based funds seeing net capital outflows of as much as $357 million year-to-date.

Multi-asset funds and Solana cryptocurrency-based funds also saw modest capital inflows last week, gaining $4.3 million and $0.1 million, respectively.

Thanks to Fumbi, cryptocurrency investing can also be carried out by institutions operating in Slovakia. The Fumbi Business Account allows companies to conveniently purchase cryptocurrencies and, with our comprehensive solution and multi-layered security, store them securely. Simply choose from our range of cryptocurrencies and we’ll take care of the rest. Source

A Bill to Regulate Cryptocurrencies in the US

The long-awaited bill regarding the regulation of cryptocurrencies in the United States, called as „Responsible Financial Innovation Act“, which aims to create an effective regulatory framework for cryptocurrencies, was introduced in the United States Senate on Tuesday.

The bipartisan bill, coming from Republican Senator Cynthia Lummis and Democratic Representative Kirsten Gillibrand, addresses various challenges related to cryptocurrencies, including the oversight of the cryptocurrency market, the regulation of stablecoins, and the tax treatment of digital assets.

The first and very important requirement included in the bill is that the regulation of cryptocurrencies in the US should be covered primarily by the US Commodity Futures Trading Commission (CFTC) rather than the US Securities and Exchange Commission (SEC). The SEC is a well-known institution in the cryptocurrency field that is very keen to interfere in cryptocurrency-related activities and has long opposed the launch of a bitcoin spot ETF fund.

Part of the proposal is focused to exempt crypto transactions of up to $200 from income tax. In practice, this would mean that payments for coffee, lunch or ordinary purchases paid for with cryptocurrencies would be exempt from cryptocurrency tax, so that the originator of the transaction would not have to investigate the difference between the purchase price and the price at the time of sale and pay capital gain tax.

In addition, the bill also includes a study on the environmental impact of digital assets, the creation of an advisory committee on innovation or the development of guidelines for cybersecurity.

However, the vote and potential approval of this bill is still a matter for the future. The bill will first go through votes in the Senate Banking, Agriculture, Intelligence, and Financial Services Committees to make it to the final approval process. Source

Bitcoin Standard Can Be a Reality

The fact that institutions around the world are showing increasing interest in cryptocurrencies is no surprise. However, one global internet company has decided to implement a full Bitcoin standard.

Octagon Networks, a cybersecurity company with more than 20 employees, announced on its website on Monday that it has finished the process of converting its liquid assets and entire balance sheet into Bitcoin.

The group will also start accepting Bitcoin payments for all of our services, with a 50% discount when paid in Bitcoin.

Web portal Cointelegraph interviewed the Ethiopian co-founders of Octagon Networks, who explained that the adoption of bitcoin was driven largely by a belief in bitcoin and in the future of decentralized money that will not be managed by any central authority.

Octagon Network thus became the first cyber-sector institution with transition to the full Bitcoin standard. Source

Paypal to Allow Withdrawal of Cryptocurrencies

After two years of waiting, the online payment system Paypal will allow its users to send cryptocurrencies to external addresses.

Users who have purchased and hold Bitcoin and Ethereum cryptocurrencies on the platform will soon be able to transfer the cryptoassets to their private wallets. This is an important functionality that will allow investors to hold assets on their own software or hardware wallets.

“Starting today, PayPal supports the native transfer of cryptocurrencies between PayPal and other wallets and exchanges,” a PayPal representative said in a statement.

The cryptocurrency withdrawal will initially only be available to users in the United States and will launch within the next two weeks.

The company’s senior management is particularly bullish on crypto assets. PayPal began allowing users to buy, sell, and hold cryptocurrencies within the platform starting in 2020 in the US, bringing this functionality to UK users a few months later. Source

New York is Considering Bitcoin Mining Ban

Proof-of-Work cryptocurrency mining has been a very divisive topic in New York in recent years, with several environmental groups publicly speaking out and protesting against Bitcoin mining companies in the past.

It is widely acknowledged that the PoW consensus algorithm is the most secure and decentralized method reaching consensus, but it comes with the oft-repeated burden of its high energy consumption.

Last Friday, the New York State Senate passed a controversial bill to ban PoW cryptocurrency mining, which would completely restrict and ban all mining in the state. This proposal would have not only prevented the influx of new miners into the state, but also denied the renewal of licenses to those already operating in the state. The only exception would be companies that use 100% renewable resources for mining.

This Tuesday, however, New York State Leader Kathy Hochul said she has not yet committed to signing this bill into law. Instead, she noted that her team will be looking very closely at the proposal over the next few months. So it appears that Hochul does not want to rush into her decision, as New York’s Senate elections will be held on June 28. Source

Kazakhstan Plans to Launch Initiative to Investigate Cryptocurrencies

Kazakhstan has become one of the major players in the crypto industry in recent years, currently known as one of the leaders in cryptocurrency mining. However, that’s not all. Last summer, the government empowered local banks to offer customers the ability to purchase digital assets.

Galymzhan Pirmatov, the governor of the National Bank of Kazakhstan, said in his latest statement that the national bank is actively interested in the crypto industry and plans to launch an initiative to explore its potential in the near future.

“We are interested in the opportunities for innovation that these new technologies give us. Therefore, we will conduct these discussions so that our decisions do not negatively affect macro-stability and the interests of consumers of financial services.“ Said the Governor.

Asked whether digital assets urgently need to be put under the government’s supervision, the central banker answered, “it’s too early” for such a move. He disclosed that the authorities have yet to discuss the matter and decide how to address it.

In addition, Pirmatov revealed that Kazakhstan is actively working to launch a digital form of its national currency (CBDC). The National Bank is expected to announce the methodology behind the project by the end of June, while a final decision will follow in Q4, 2022. Source

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JP Morgan Predicts Bitcoin Price Growth – Crypto Weekly Update

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This week, the total market capitalization exceeded 1.15 trillion EUR. The decrease at the 7-day interval is 1.71%. Bitcoin decreased by 0.52% during the week to a current value of over 28 000 EUR. Bitcoin dominance is 46.1%.

Source: Coinmarketcap

JP Morgan Predicts Bitcoin Price Growth

The latest report from one of the largest investment banks in the world shows that JP Morgan expects Bitcoin price to increase to its fair value in the short-term horizon.

According to the report, Bitcoin is trading at a discount of up to 28% at the current price level, as the investment giant set bitcoin’s fair value at $38,000, based on its analysis. The figure was based on the premise that BTC is around four times more volatile than gold. Meanwhile, it increased its long-term price target to $150,000 from $146,000.

Moreover, the bank believes BTC could recover stronger than other beaten-down assets because it had fallen far deeper amid the correction period.

JP Morgan further states in its report that cryptocurrencies are now among their preferred alternative assets over real estate in the ranking of alternative investments. However, these assets do not fall into the same category as stocks and bonds.

With bitcoin down more than 60% from its ATH last November and the total capitalization of the crypto market down from $3 trillion to $1.3 trillion, the bank sees an opportunity in this fast-growing asset class. Source

Back Above $30,000

After weeks of bleak price correction, Bitcoin finally started to show signs of recovery and capital inflows from investors during this week.

On Monday, the leading cryptocurrency surpassed the $30,000 price level, which market analysts consider a critical psychological threshold. Currently, the volatility of bitcoin and altcoins is highly correlated with the stock market, which amid rising macroeconomic uncertainty, is experiencing similar declines as the crypto market. Silicon Valley technology stocks have been among the hardest hit this year, with giants like Amazon and Tesla posting heavy double-digit losses (34.8% and 36.6%, respectively).

Although Bitcoin has had a couple of really tough and uncertain weeks, it rose over 5% as global stocks and U.S. futures rallied. European and Asia-Pacific stocks surged as traders have started to place bets on Fed adopting a less aggressive tightening policy over the coming months.

Nevertheless, Bitcoin is still a long way from its all-time high reached in November 2021, when it traded for an astronomical $69,000. The cryptocurrency market now has a long and uneasy road ahead, but patience is key to success in investing. Source

Russia’s Central Bank is Considering Using Bitcoin

First Deputy Governor of the Russian Central Bank, Ksenia Yudaeva, said in a statement to Russian media on Tuesday that the bank is open to the idea of using cryptocurrencies for cross-border settlements.

“In principle, we do not object to the use of cryptocurrency in international transactions,” Yudaeva said. Yudaeva then went on to clarify that the Central Bank still believed cryptocurrencies created “great risks” for Russian citizens and Russia’s financial infrastructure.

The Central Bank’s announcement comes as legislators prepare a new version of a digital currency law. Government departments and lawmakers have struggled to reach a consensus on the acceptance and usage of cryptocurrencies within the Russian Federation since the beginning of the war with Ukraine and the ensuing sanctions.

This statement is not the first attempt regarding the use of cryptocurrencies in the Russian Federation. A few weeks ago, the Minister of Industry and Trade Denis Manturov stated that crypto payments in Russia will be legalized sooner or later. In addition, Ivan Chebeskov, the Ministry of Finance’s Financial Policy Department, also stated last week that the ministry was actively discussing using cryptocurrencies for international settlements. Source

Terra Launches New Chain

Over the past week, supporters of the Terra blockchain project voted to launch a new „Terra 2.0“ chain without the algorithmic stablecoin UST.

The proposal labeled „Proposal 1623 – Terra Builders Alliance: Rebirth Terra Network“ garnered the support of 65.5% of the community, while only 13.5% were opposed, and 21% abstained. The proposal aimed to create a new network, rename the original blockchain to „Terra Classic“, and change the ticker of the native token from LUNA to LUNC. The proposal also included the redistribution of new LUNA tokens between LUNC and UST holders based on different redistribution terms and the linear release of tokens.

The new Terra chain was launched on Saturday, 28 May at 8:00 CET. However, only 21% of the total supply has entered circulation so far, with the rest to be released linearly over the next 4-5 years. Source

Bitcoin Network Difficulty has Significantly Dropped

Less than a month ago, the Bitcoin network witnessed a crucial moment in which the Network Difficulty parameter reached an all-time high of 31.251 trillion units.

The difficulty parameter measures how hard it is to mine a Bitcoin block, or how hard it is to find a hash below a certain target value. If the difficulty parameter grows, it means that more computing power is needed to mine new blocks, which ultimately makes the network more secure.

The last adjustment of this parameter, which is regularly updated once in 2016 blocks, has brought slightly negative news. As of May 26, 2022, this parameter has fallen by as much as 4.33%, from 31.251 trillion to 29.897 trillion, breaking a 10-month streak of growth in the network difficulty.

Despite a decline of more than 4%, the Bitcoin network is still the most secure blockchain network in the entire crypto space. The more secure the network is, the less likely it is that one entity could take control of the network. If someone controlled 51% of the network’s total computing power, they could carry out a so-called double-spending attack. Source

Curiosity: The SEC Continues to Reject Spot ETFs

The U.S. Securities and Exchange Commission (SEC) continues its streak of denying applications related to the launch of the first bitcoin spot ETF.

The latest entity to be rejected was hedge fund One River Digital, which was denied a rule change by the SEC that would have allowed the company to list a fund called the „One River Carbon Neutral Bitcoin Trust“ on the NYSE’s New York Stock Exchange.

The SEC said that in considering the proposed rule change, One River used „the same standard that the company has used in its previous applications relating to the listing of bitcoin-based commodity trust.“ According to the SEC, the proposed rule change does not comply with the U.S. Commission’s fraud prevention rules.

Thus, whether investors will ever see a spot ETF remains questionable. However, companies such as Fidelity Investments, Global X, New York Digital Investment Group and Grayscale will continue to fight for the launch of a spot ETF in the United States, according to their statements. Source

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eBay Launches Its Own NFT Collection – Crypto Weekly Update

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This week, the total market capitalization exceeded 1.17 trillion EUR. The decrease at the 7-day interval is 0.84%. Bitcoin decreased by 0.51% during the week to a current value of over 27,700 EUR. Bitcoin dominance is 45.1%.

Souce: Coinmarketcap

eBay Launches Its Own NFT Collection

US multinational e-commerce company eBay is the latest company to enter the NFT business. The global market leader in online marketplace sales, which connects millions of buyers and sellers worldwide, has announced the launch of a series of exclusive NFTs through a strategic partnership with OneOf, a platform that targets NFT communities in the music, sports and healthy lifestyle industries.

“Through our partnership with OneOf, eBay is now making coveted NFTs more accessible to a new generation of collectors everywhere,” said Dawn Block, the Vice President of Collectibles, Electronics and Home at eBay.

The NFT collection of 13 limited-edition digital collectibles, dubbed “Genesis,” will have four tiers – green, gold, platinum, and diamond. The first-ever NFT collection from eBay will feature 3D and animated visualizations of iconic athletes who have appeared on Sports Illustrated covers over the years. The first NFTs to go on sale Monday were those of legendary Canadian hockey player Wayne Gretzky.

„Forty years ago I was grateful to be on the cover of Sports Illustrated, it was a monumental moment in my life,“ said Wayne Gretzky. „I’m honored to bring this collectible to my hockey fans who have followed my career for decades.“

eBay has thus officially joined the ever-growing number of companies that want to implement NFT in their platforms. For example, Instagram recently announced that it would begin testing NFT with select creators in the United States. Spotify is also a major player in this field, confirming last week that it is testing a new feature that will allow artists to promote their NFTs on profiles. Source 

Bitcoin Extends Record Streak of Weekly Losses

The most popular cryptocurrency, Bitcoin, has set a new historical record, which, however, will go down in history as „negative“. Bitcoin has already formed the eighth red weekly candle (1W Candle) in a row. This means that the price of bitcoin has closed the week at a lower level than at the beginning of the week for the eighth time in a row.

This year’s negative streak began in late March at $46,900, around the time Terra announced plans to buy $10 billion in bitcoin to back its UST stablecoin. The steps taken by the Federal Reserve (Fed) to tighten monetary policy and the collapse of Terra’s platform have caused bitcoin to plummet by nearly 38% since March 28. The market situation was not helped much by the quarterly reports of Block or Coinbase, which saw a significant drop in revenue during the first quarter.

Other coins have been slammed as well. Besides LUNA’s collapse, Ethereum and Cardano went down by 33% and 41%, respectively.

The previous record for weekly red candles was set back in 2014 when bitcoin recorded six red weekly candles in a row. Back then, its price steadily declined from $507 on August 25 to $323 on October 6.

Market cycles are very important for investors in all financial markets. Market cycles can tell investors when to invest aggressively and when to switch to a defensive strategy. Market downturns are an ideal time for additional asset accumulation and investment portfolio expansion, as the long-term trend in financial markets has historically proven to be upward. Source

Shift in ETH 2.0 Development

Developers on the Ethereum network are close to reaching another major milestone. According to published information, the Ropsten testnet will undergo an update in the first half of June that will ensure the testnet’s transition to the Proof-of-Stake (POS) consensus algorithm.

Last month, the developers working on The Merge, an upgrade to the Ethereum network to switch it from a Proof-of-Work (POW) to POS consensus model, began testing how the switch would work on a shadow fork. Two days later, things seemed less rosy as Ethereum Foundation developer Tim Beiko said on Twitter that the upgrade had been pushed to the second half of 2022.

The transition from the consensus POW algorithm to POS will mean the end of POW mining on the Ethereum network. Mining is the process through which new ETH coins are put into circulation and transactions are verified.

The new model will replace miners with so-called validators, who do not guarantee the security and uniqueness of transactions with computing power but directly with their staked ETH coins. The migration of the network to the new consensus model is expected to reduce the energy costs of running the blockchain by up to 99.9%, as well as reduce the issuance of new ETH into circulation. Source

ECB Survey Shows Interesting Results

The European Central Bank (ECB) released the results of a survey on cryptocurrencies on Tuesday in an effort to gauge the ownership sentiment among residents from six eurozone countries.

Participants were aged between 18 and 70 from the Netherlands, Spain, Italy, Germany, Belgium and France. The results show that around 10% of respondents own cryptocurrencies. Of this group, only 6% of respondents reported owning more than €30,000 worth of digital assets, while up to 37% of respondents reported owning more than €999 worth of cryptoassets.

Across all countries, investors from the TOP 20% of the income-richest population had the highest share of cryptocurrency ownership compared to other income groups.

The survey was included in a new report published by the ECB the same day regarding the growing adoption of crypto assets despite their risk factors. As cited by the ECB, 56% of respondents in a recent Fidelity survey said they had some exposure to cryptoassets, up from 45% in 2020.

Increased availability of crypto-based derivatives and securities on regulated exchanges, such as futures, exchange-traded notes, exchange-traded funds, and OTC-traded trusts, have contributed to the momentum. Source

Stablecoin USDT Passed the Audit

The most popular stablecoin on the market, USDT, has passed a successful audit. In a Thursday blog post, Tether announced that the USDT stablecoin is „fully backed“ by reserves. The release of the audit results comes just as stablecoins are being targeted for criticism, in an attempt to assuage the fears of users of the USDT stablecoin, whose price briefly depegged from the value of one dollar on May 12.

According to the stablecoin issuer, its commercial paper holdings over Q1 2022 decreased 17% from roughly $24 billion to $20 billion, with an additional 20% reduction to be reflected in the firm’s next quarterly report.

On the other hand, Tether increased its equity investments in money market funds and US Treasury bills by 13% in the first quarter, from roughly $34.5 billion to $39 billion.

In total, the company has reported $82 billion in reserves to cover stablecoin, with USDT’s current market capitalization at $73 billion. This means that Tether has enough cash to cover every single USDT in circulation.

As part of an $18.5 million settlement with the New York Attorney General’s Office in February 2021, in which authorities alleged that the firm misrepresented the extent to which its USDT stablecoins were backed by fiat collateral, Tether is required to publish reserve-related reports on a quarterly basis. Source

Interesting Fact: Bitcoin Pizza Day

The crypto community around the world celebrated one of the most important days in bitcoin history this Sunday.

May 22nd is forever etched in history as „Bitcoin Pizza Day“. On this very day twelve years ago, László Hanyecz, an American programmer born in Hungary, ordered two pizzas for a whopping 10,000 bitcoins. Historically, this is the first-ever commercial transaction in which someone purchased goods using cryptocurrency.

„I’ll pay 10,000 #bitcoins for a couple of pizzas.. like maybe 2 large ones so I have some leftover for the next day. If anyone is interested please let me know.” Hanyecz wrote on Tuesday, May 18, on the Bitcoin.org forum.

Even so, he didn’t end up getting his pizza until Saturday. By Friday, some were even led to reach out about Hanyecz’s health, with user BitcoinFX asking if he was “getting hungry.” The price per bitcoin at the time was $0.004

Hanyecz has stated several times that he has no regrets about exchanging pizzas for bitcoins. With his transaction, Lászlo confirmed that bitcoin has all the important characteristics of traditional currencies and can be used to easily pay for goods and services. Source 

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Chinese Miners Are Back in the Game – Crypto Weekly Update

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This week, the total market capitalization exceeded 1.18 trillion EUR. The increase at the 7-day interval is 9.29%. Bitcoin increased by 4.54% during the week to a current value of over 27,800 EUR. Bitcoin dominance is 44.7%.

Chinese Miners Are Back in The Game

China’s ban on the mining and use of cryptocurrencies is ultimately not as effective as it might first appear. The latest data from the Cambridge Bitcoin Electricity Consumption Index (CBECI) shows that China is still the second top mining hub despite the crypto ban.

According to published data, miners from China represented up to 21.1% of the total global distribution of bitcoin network computing power in January 2022. According to the statistics, this puts China in second place in the ranking of countries sorted by share of total hashrate, just behind the United States, whose share was about 37.8% as of January 2022.

China was once the world’s largest Bitcoin mining country, with the local BTC hash rate power accounting for more than 75% in August 2019. However, its dominance has been declining over time, falling to 0% in July and August 2021, according to the CBECI visualization.

However, the actual data show something different. According to CBECI project leader Alexander Neumueller, despite the bans, China’s share of the total hashrate has never dropped below 18%, even though the visualization on the CBECI web portal showed China’s hashrate at zero for several months. 

“Our data empirically confirms the claims of industry insiders that Bitcoin mining is still ongoing within the country. Although mining in China is far from its former heights, the country still seems to host about one-fifth of the total hash rate,“ said Neumueller.

The latest CBECI update also signals a slight drop in the hash rate share in Kazakhstan, the world’s third-largest BTC mining hub. Kazakhstan’s BTC hash rate share dropped from 18% in August to 13.2% in January. Russia, which fell out of the TOP 3 countries focused on bitcoin mining, also saw a significant drop in its mining power. Source

Terra Still in Troubles

Terra co-founder and its central figure Do Kwon announced on Monday a revised plan aimed to restore the Terra ecosystem after the algorithmic stablecoin UST fell victim to a well-coordinated attack that practically devalued the two main cryptocurrencies used on the network – the stablecoin UST as well as the Terra network’s native token, LUNA.

More than a week after the attack, the TerraUSD (UST) stablecoin, whose value is pegged to the U.S. dollar at a 1:1 ratio, is trading for just a whopping $0.09. Similarly, the LUNA token, whose value has plummeted from the April ATH of $120 to its current value of $0.00018.

The collapse of both currencies was caused by an attack that depegged the UST stablecoin and triggered a so-called death spiral that continuously burned UST tokens and issued new LUNA tokens into circulation. In a matter of days, the supply of the LUNA token rose from 300 million to 6.9 trillion.

The LFG foundation used up to 80,000 bitcoin from its reserves to buy USTs to stabilize the price of USTs and push its price up. However, this plan did not work, and the organization lost almost all of its reserves.

Do Kwon has now come up with a new hard fork proposal that will split the network into two separate blockchains. The gist of his proposal is to split the Terra blockchain into a new, separate blockchain that will operate without the UST stablecoin. The current blockchain will change its name to Terra Classic and will have a token called LUNC, while the new blockchain will be called Terra and will have its own token called LUNA.

Kwon also outlined the redistribution of new tokens to the community and UST holders who have lost almost all of their funds. 

However, his proposal was met with strong opposition from the community. According to a preliminary poll, up to 90% of the community is against his proposal, with the majority voting to keep only one chain and to start the process of burning tokens, either through buybacks or by introducing percentage tax fees on the purchase and sale of LUNA tokens.

The entire community is now waiting in suspense to see how Kwon and Terra Labs will react to the negative feedback. Source

Bitcoin Meeting in El Salvador

The Central American state of El Salvador welcomed 44 central bankers from developing countries around the world to discuss financial inclusion, SME finance and Bitcoin.

Delegates of central banks from Ghana, Burundi, Jordan, Maldives, Pakistan, Costa Rica and the other countries arrived in Salvador following an invitation from President Nayib Bukele.

Organized by the Alliance for Financial Inclusion, a global policy leadership alliance, and in partnership with El Salvador’s central bank, the conference will run for three days.

“El Salvador is proud to receive representatives from 44 central banks and financial authorities to learn about the implementation of Bitcoin and policies to promote Financial Inclusion.” Douglas Rodríguez, head of El Salvador’s central bank, said on Twitter.

The team behind the Bitcoin Beach project is also part of the conference, which aims to educate delegates about Bitcoin and cryptocurrencies.

Although currently, only two countries in the world, El Salvador and the Central African Republic, have recognized Bitcoin as their legal tender, it can be expected that more countries will soon follow them. Source

Digital Euro a Reality by 2027

Fabio Panetta, a member of the EU Central Bank board of directors, said that the European Union could begin developing a digital euro by the end of next year. It will take approximately three years to create it. The new digital currency will likely be available for users by the start of 2027. 

“At the end of 2023, we may decide to start implementing the development and testing phase of suitable technical solutions and commercial agreements necessary to enable the circulation of the digital euro. This phase can take three years,“ said Panetta.

Panetta expressed concern about the cryptocurrency market in its current form. He thinks that this market is an identical bubble to the one that burst in 2007 and caused the crisis. He believes that stricter regulation is needed to solve this problem. In the same breath, he added that central banks need to use modern technologies to manage payment systems quickly and prepare for the introduction of CBDC. Source

Musk Delays Twitter Acquisition

Tesla CEO Elon Musk is shelving his planned $44 billion acquisition of social network Twitter. In his words, the acquisition „cannot move forward“ until Twitter is able to provide Musk with more information about how many fake accounts and bots exist on Twitter.

According to Musk, up to 20% of accounts on the social network are fake or used only for spamming purposes. However, Twitter’s current CEO, Parag Agrawal, said that internal estimates based on the methodology they use to identify fake accounts are less than 5%.

During a conference in Miami on Monday, Musk said that renegotiating the acquisition of Twitter is not out of the question, adding that it is very important for him to know how many fake accounts and bots are actually on Twitter. Musk is reportedly trying to negotiate a lower price for the acquisition of the social platform.

Putting the deal on hold seemed to have a much more bearish effect on Twitter’s stock price. At that time, TWTR sunk by 19% following Musk’s comments. Source

Curiosity: Fear & Greed Index at Record Lows

The Cryptocurrency Fear & Greed Index, tracking the current sentiment in the cryptocurrency market, fell from 60/100 points in March to 12/100 points this Wednesday.

On Tuesday, the index even dropped to just 8/100 points, its lowest level since March 28, 2020, when the COVID-19 pandemic brought a huge wave of uncertainty to the market. Bitcoin was trading at a whopping $6,000 at this time.

Low index values can be a good indicator for buying cryptocurrencies at a discount. Historically, it has been shown many times that when the value of the index dropped to values below 10, there was a huge rebound in the market a few days to weeks later, which increased the values of many cryptocurrencies by tens to hundreds of percent. Don’t miss this opportunity and buy cryptocurrencies quickly and safely with Fumbi. Source

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Bitcoin Drops by 60% From Its All-Time High – Crypto Weekly Update

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This week, the total market capitalization exceeded 1.08 trillion EUR. The decrease at the 7-day interval is 36%. Bitcoin decreased by 33% during the week to a current value of over 25,700 EUR. Bitcoin dominance is 44.7%.

Source: Coinmarketcap

Bitcoin Drops by 60% From its All-Time High 

The dynamics of risk markets, which undoubtedly include the cryptocurrency market, are very high and often unpredictable.

The Fed’s base rate hike brought a momentary positive sentiment to the market last week, as experts focused on financial markets expected this step. Bitcoin tried to test the $40,000 resistance level after the news was announced but unfortunately failed to hold it.

The short-term optimism in the market quickly turned into uncertainty, which caused a huge capital outflow from the crypto market.

Bitcoin, a well-known and the most popular cryptocurrency, is currently trading for just $27,000, its lowest value since July 2021. Bitcoin’s spot price is currently down by 60% from its all-time high of $68,789 reached in November.

There are several events responsible for capital outflows from the market. First and foremost is investors’ delayed and more mature reaction to a base rate hike, given that inflation in the US is at 40-year highs and investors remain concerned about whether the US Federal Reserve can reduce inflationary pressures without driving the US economy into an outright recession.

Furthermore, a base rate hike makes money inherently more expensive. Bank loans and mortgages are more expensive and less available, which, on the one hand, helps to slow down inflation, but, on the other hand, it weakens consumer demand and slows down economic growth.

10 Year Treasury Rate has also reacted to the current situation, reaching its highest level since 2018. When government bond rates rise, investors are motivated to invest their capital in „almost risk-free“ assets, which in turn causes capital to flow out of risk markets.

The mood in the cryptocurrency market has not been helped by the recent unpleasantness related to the likely coordinated attack on the stablecoin UST, whose price has lost its peg to the US dollar.

Although market sentiment does not look favourable, for investors, it is the period of fear and uncertainty that is the best opportunity to expand their investment portfolios. Source

El Salvador buys the dip

El Salvador’s President Nayib Bukele announced on Monday via Twitter that the country under his leadership has decided to take advantage of the current slump in the cryptocurrency market and has purchased an additional 500 bitcoins worth $15.3 million.

“El Salvador just bought the dip!” Bukele tweeted, adding that his government purchased at an average price of $30,744.

El Salvador is historically the first country to ever adopt Bitcoin as its legal tender. Although Bitcoin enthusiasts rejoiced at the news, the public and the International Monetary Fund had rather mixed feelings about Bitcoin’s adoption. Source

Terra Blockchain Platform in Trouble

TerraUSD (UST), until recently the third-largest stablecoin, is in huge trouble. An elaborate and well-coordinated attack on this algorithmic stablecoin caused the price of UST to plummet from its dollar value to a whopping 22 cents.

TerraUSD (UST) is the best known and most popular stablecoin built on the Terra blockchain. After a successful launch, UST issuance started back in September 2020. The UST stablecoin is pegged in value to the US dollar at a 1:1 ratio. There is no specific entity or company behind its issuance, as the monetary supply of UST is algorithmically controlled. The market supply of the UST stablecoin is determined by the issuance or burning of the LUNA token.

About 10 minutes after LFG (Luna Foundation Guard), a non-profit organization focused on supporting the Terra ecosystem and the UST stablecoin, pulled out $150 million worth of liquidity from Curve Finance’s decentralized protocol in preparation for the so-called 4pool (a pool consisting of USDT, USDC, FRAX, and UST on Curve Finance), an attacker decided to take advantage of the situation.

The attacker initially accumulated $3 billion in bitcoin through so-called OTC trades, exchanging one billion bitcoins for $UST stablecoin. In this way, he set the stage to liquidate the UST on Curve Finance while simultaneously shorting bitcoins, knowing that the LFG organization would sell its bitcoins to protect the stablecoin peg. The action could have begun.

The attacker first withdrew all UST liquidity from Curve Finance and then sold the accumulated USTs on Binance. The supply shock caused the price of stablecoin to deviate slightly from one dollar, causing a slight panic in the market. However, that was just the beginning.

The fact that the LFG organization began selling its bitcoin reserves to maintain the UST peg was grist for the mill for the attackers. In fact, the attackers had likely already opened short positions on Bitcoin in advance and immediately began profiting from them. In addition, they used the remaining 650 million raised from the OTC to massively sell off $UST, which started the price of the stablecoin to fluctuate significantly.

The more BTC was sold, the more panic grew in the market, causing an uncomfortable situation during which investors wanted to get rid of their $UST as soon as possible. The sell-off of BTC reserves failed to stabilize and bring the price of $UST back to one dollar, which in turn brought even more uncertainty to the market. 

The panic in the market about the problems of $UST and $LUNA caused some centralized exchanges, including Binance, to suspend withdrawals of LUNA and UST tokens after a few hours.

Stablecoin $UST is currently still in huge problems. Its value is currently around $0.40, while the value of $LUNA has dropped from $80 to around $0.2. The value of $UST is likely to return to its equilibrium value over time through Terra Modules and arbitrage trades, but its credibility is already very significantly eroded. Source

Microstrategy Has no Plans to Sell Bitcoins

Microstrategy CEO Michael Saylor took to Twitter on Tuesday morning aimed to alleviate fears that Microstrategy would face liquidation risks in its bitcoin-backed loans if the price of Bitcoin continues to fall.

“MicroStrategy has a $205 million term loan and needs to maintain $410 million as collateral,” Saylor said, linking to his company’s Q1 2022 investor presentation.

Although MicroStrategy owns 129,218 BTC, 115,109 BTC are unencumbered and available to be put as additional collateral if needed. With a $410 million collateral requirement in its loan, this amount of bitcoin would be enough to avoid a margin call if the bitcoin price sustained above $3,562. However, Saylor added that the company wouldn’t sell even if that level got breached.

Microstrategy acquired its bitcoins at an average price of $30,700, meaning that at the current price of $31,800 per bitcoin, the company is still roughly $142 million in profit. Source

Australia Will Have Crypto Spot ETFs

Crypto enthusiasts from Australia will soon have three new crypto ETFs.

The latest update came late on Monday as Cboe Australia issued a round of market notices that three funds previously delayed are expected to begin trading on May 12. They include a Bitcoin ETF from Cosmos Asset Management, plus BTC and Ether spot ETFs from 21Shares.

The ETFs were originally scheduled to launch on April 26, but the CBOE Australia exchange postponed the launch due to a lack of approvals.

The spot ETFs will offer retail and institutional investors in Australia an easy opportunity to invest in Bitcoin and Ethereum cryptocurrencies at favorable fees and without having to worry about custody. 

Spot ETFs are already operating in several countries, including Canada and Brazil, but government authorities in the United States continue to reject this type of ETF. Source

Instagram Plans to Implement NFTs

Mark Zuckerberg, CEO of Meta (formerly known as Facebook), announced that the company would begin testing non-fungible tokens (NFTs) on its social network Instagram as early as this week.

In an interview with Impact Theory’s Tom Bilyeu published to Facebook on Monday, Zuckerberg said the move to test digital collectibles on Instagram was the first step toward allowing creators and collectors to display NFTs on other apps under Meta’s control, including WhatsApp or Facebook Messenger.

With this move, Instagram follows social network Twitter, which announced and later launched the NFT profile photos feature in September last year.

Although it is not yet clear how NFTs will be implemented in Instagram, it is expected that Instagram’s NFT model will be built on a similar principle to how Twitter works. That is, users will be able to use their NFTs as profile photos, which is possible on Twitter through the paid TwitterBlue app. At the same time, it seems that Meta will start implementing NFTs only for verified people at first- so mostly influencers. Source

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Bitcoin as Legal Tender in Another Country – Crypto Weekly Update

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This week, the total market capitalization exceeded 1.69 trillion EUR. The decrease at the 7-day interval is 1.16%. Bitcoin decreased by 1.2% during the week to a current value of over 37,300 EUR. Bitcoin dominance is 41.9%.

Source: Coinmarketcap

Bitcoin as Legal Tender in Another Country

The Central American state of El Salvador is no longer the only country to adopt Bitcoin as its legal tender.

Last week, the Central African Republic (CAR) was added to the still short but growing list of countries that have adopted Bitcoin as legal tender. According to an official announcement from the President’s office on Wednesday, the Central African Republic has officially become the world’s second country to adopt Bitcoin as legal tender in addition to the hitherto used national currency.

However, there was uncertainty around whether the legislation in question – which the National Assembly passed unanimously – was a legal tender bill or if it simply provided a legal framework for cryptocurrencies.

The announcement, made by the President’s office, was confirmed a few hours later by the French news agency AFP, which stated that crypto adoption would help spur the nation’s economic recovery and peacebuilding initiatives. It means that Bitcoin will be made legal tender in the CAR, alongside the CFA franc.

As in the case of El Salvador, the International Monetary Fund (IMF) has heavily criticized the decision. It reportedly warned of “large risks associated with the use of bitcoin on financial stability, financial integrity, and consumer protection.“

The nation’s existing currency is not currently recognized by the IMF, which makes it very difficult for the country to conduct international trade. This is one of the main reasons why the country has decided to adopt Bitcoin. Source

German Giant Applies for Crypto License

Germany’s second-largest bank, Commerzbank (CBK), applied for a local crypto license earlier this year. Commerzbank will become the first major bank in Germany to open its doors to cryptocurrencies.

A spokesman for the bank said Commerzbank wants to help shape the emerging digital ecosystem, particularly when it comes to custody and trading of digital assets.

Germany introduced a new licensing regime for crypto services in 2020 along with an amendment to the EU’s Money Laundering Directive, in order to encourage regulated firms to enter the crypto market. The law required any business seeking to offer crypto services in Germany to seek a license from BaFin, Germany’s Federal Financial Supervisory Authority.

The license application comes a year after a partnership was struck between Commerzbank, Deutsche Börse and fintech 360X to develop a digital asset trading platform. Source

Wikipedia Stops Accepting Cryptocurrencies

The Wikimedia Foundation, the foundation behind the open-content online encyclopedia, will shut down its BitPay account and has announced it will stop accepting cryptocurrency donations based on community feedback.

The decision to end crypto donations was made after 232 members (71%) of the Wikimedia Foundation (WMF) community voted in favor of a proposal that cited energy consumption, exposure to crypto scams and environmental sustainability as reasons to stop it.

In a Sunday update to the original proposal from the WMF, chief advancement officer Lisa Seitz-Gruwell stated that “The Wikimedia Foundation has decided to discontinue direct acceptance of cryptocurrency as a means of donating. Specifically, we will be closing our BitPay account, which will remove our ability to directly accept cryptocurrency as a method of donating.”

The Mozilla Foundation, the company behind the Mozilla Firefox web browser, made a similar move a few months ago. Mozilla banned crypto donations via cryptocurrencies in January but partially reversed the decision in April and began only accepting crypto over the proof-of-stake (PoS) algorithm. Source

Goldman Sachs Offers Bitcoin-Backed Loans

US multinational investment bank Goldman Sachs has made its first bitcoin-backed loan, meaning institutional adoption of cryptocurrencies on Wall Street continues to grow.

In an interview with Bloomberg, a Goldman Sachs spokeswoman said that the multinational investment bank had lent a client money collateralized by bitcoins owned by the borrower for the first time in Goldman Sachs‘ history. According to a spokeswoman from Goldman Sachs, the deal was particularly interesting because of its structure and 24-hour risk management.

Information later revealed that the company that took out the first bitcoin-backed loan was crypto exchange Coinbase. Although the dollar value of the loan was not disclosed, the loan was collateralized by a portion of Coinbase’s total holdings of 4,487 BTC, worth around $170 million.

Bitcoin-collateralized loans allow bitcoin owners to borrow traditional fiat currency such as the US dollar by providing their bitcoins to a bank as collateral. Due to bitcoin’s high volatility, if the price of bitcoin drops too low, the borrower may be required to increase the collateral to avoid liquidating their position. Source

Institutional Funds With Capital Outflows

CoinShares, which reports on the performance of the largest cryptocurrency funds every Monday, including Grayscale, CoinShares, 3iQ and ProShares, released data showing that crypto funds saw a total capital outflow of $120 million over the past week.

Capital has flowed out of major cryptoasset funds for four weeks in a row, with total capital outflows of up to $339 million during April.

The majority of those outflows were from Bitcoin-based funds resulting in the largest single week of outflows since June 2021, with $133 million exiting BTC funds. Ethereum-based funds also saw outflows, totaling $25.1 million.

Slightly better were funds based on cryptocurrencies Solana, Cardano and Polkadot, which collectively saw capital outflows totaling $2.7 million.

Funds focused on the exchange token FTX did particularly well last week, with measurable inflows totaling $38 million. There were also minor inflows for Terra and Fantom-based products.

Year-to-date total fund flows are still in positive territory, but year-to-date institutional capital inflows are now only $270 million. Source

Algorand Sponsors FIFA

Blockchain network Algorand has partnered with FIFA, inking a sponsorship and technical partner deal. Algorand will thus become the first official blockchain platform of the world’s largest football association.

According to the agreement, Algorand will be a „regional supporter“ for North America and Europe at the World Cup and an official sponsor of the Women’s World Cup in Australia and New Zealand next year.

Algorand will provide the official blockchain-supported wallet for FIFA in what is a sponsorship and technical partnership deal. FIFA will get assistance from Algorand to „further develop its digital assets strategy,“ and Algorand will have the opportunity for promotions, advertising and media exposure through FIFA. Source

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Elon Musk Bought Twitter  – Crypto Weekly Update

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This week, the total market capitalization exceeded 1.71 trillion EUR. The decrease at the 7-day interval is 2.84%. Bitcoin increased by 6.59% during the week to a current value of over 37,400 EUR. Bitcoin dominance is 41.6%.

Zdroj: Coinmarketcap

Elon Musk Bought Twitter

Visionary and big crypto enthusiast Elon Musk bought social network Twitter on Monday for an astounding $44 billion. The founder of Tesla, which bought Bitcoin worth $1.5 billion last year, plans to turn the publicly traded company into a private company that will adhere much more closely to the principles of free speech, which Elon Musk considers “ the bedrock of a functioning democracy“.

Under the terms of the deal, shareholders will receive $54.20 in cash for each share of Twitter stock ($TWTR) they own, matching Musk’s original offer and marking a 38% premium over the stock price the day before Musk revealed his stake in the company.

The deal, which was unanimously approved by Twitter’s board, is expected to close this year. Twitter stock was up nearly 6% following the announcement of the deal, hovering around $51.84, just shy of the offer price. The deal is pending approval from shareholders and regulators.

Well-known cryptocurrencies also reacted to this deal. Market leader Bitcoin gained 3.78% within four hours of the announcement, while meme cryptocurrency Dogecoin, supported by Elon Musk, was up 24% within four hours.

In his statement Monday, Musk said he wants to „make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust and defeating the spam bots“. Source

Green Energy is Trendy

Interest in mining Bitcoin using green energy is constantly growing. 

The Bitcoin Mining Council (BMC), a group of 44 Bitcoin mining companies, claiming to represent 50% of the global Bitcoin network, has released a report focused on Bitcoin mining power consumption.

The BMC estimates the global mining industry’s sustainable electricity mix for the top crypto is now 58.4%, a fall of 0.1% from last quarter. Perhaps more importantly, it’s significant growth from the 36.8% renewables estimated in Q1 2021.

However, the sustainable energy mix of BMC members is even slightly higher, according to the survey. The survey showed that BMC member companies use, on average, up to 64.6% of resources from the sustainable energy mix.

Bitcoin is often the target of criticism because of its high energy consumption. The Bitcoin network currently consumes about the same amount of energy as the countries like Malaysia or Poland. If it were an independent country, it would rank 24th in countries ranked by electricity consumption. However, the increasing amount of renewable resources used in mining means that Bitcoin is becoming greener and more environmentally friendly day by day. Source

Binance Limits Services in Russia

Binance, the largest cryptocurrency exchange by trading volume, is adopting new restrictions on users from Russia. The adoption and deployment of new restrictions on Russian traders are coming in response to following the European Union’s fifth package of sanctions against Russia.

Last week, Binance announced new trading restrictions for Russian nationals and residents holding more than €10,000 (approximately US$10,800) in their Binance accounts.

Restricted individuals and entities with open futures or derivatives positions will have 90 days to close their positions.

The notice further states that “Accounts for Russian nationals residing outside Russia, as verified with proof of address, and accounts for Russian nationals or natural persons residing in Russia, or legal entities established in Russia, that remain below a total value of 10,000 EUR, will remain unaffected and active.”

Binance CEO Changpeng Zhao previously declared that crypto exchanges, including Binance, must respect and comply with sanctions in a similar way to traditional financial institutions. However, Zhao further added that Binance has no plans to freeze the accounts of millions of innocent users due to Western sanctions against Russia. Source 

Fidelity Investment Adds Bitcoin to Retirement Accounts

Fidelity Investments, one of the largest asset managers in the world, will allow investors to add Bitcoin to their retirement 401(k) plans.

In the United States, 401(k) retirement plans are employer-sponsored retirement savings plans offered by U.S. employers that have certain tax advantages for the saver. Employees who are part of this plan pay a few percent of their wages directly to their retirement investment accounts. Employees can directly choose which funds they want to invest in. 

A report published by Fidelity revealed that some of the 401(k) plans that Fidelity administers plan to offer employees means of investing in Bitcoin through dedicated “digital asset accounts“ in the near future.

The report further revealed that Microstrategy would be the first consumer of the new product. This doesn’t come as a surprise, as the company currently holds up to 130,000 bitcoins on its balance sheet.

It’s a big move given that Fidelity is the largest 401(k) plan provider in the United States, acting as custodian for 23,000 plans, which have 20.4 million participants. In total, those plans represent $2.7 trillion in assets under management. Source

The First Non-Collateralized Crypto Mortgages Taken Out

With the growth of the cryptocurrency ecosystem and the merging of the traditional and decentralized financial system, loans made directly in cryptocurrencies are slowly but surely coming to the fore.

USDC.homes, a company that partners with mortgage lenders and brokers to provide non-collateralized crypto mortgages based on credit scores to facilitate crypto home loans, has completed its first sale via DeFi lending protocol Teller.

An investor from Texas, whose identity has not been revealed, took out the first-ever crypto mortgage of 500,000 USDC to purchase a condo valued at $680,000.

Teller’s DeFi protocol is calling it the „first unsecured DeFi mortgage“ in which the borrower didn’t put up collateral, and the mortgage was based solely on the client’s credit score. All loan transactions were settled on-chain via Polygon, a layer two solution on the Ethereum network.

The main benefit of crypto uncollateralized mortgages is that investors who own cryptoassets do not have to sell off their assets in order to purchase real estate. In addition, the divestment of assets would be a taxable event on which the investor would have to pay a tax. Source

Interesting fact: Is it the Right Time to Buy the Dip?

According to Google Trends, searches targeting the keyword „Bitcoin“ have plummeted to lows not seen in over a year. While this may look scary at first glance, the opposite tends to be true.

Although retail investor interest and demand for Bitcoin, based on statistics from Google Trends or the Fear & Greed Index, has declined compared to previous months, according to an analytics report published by the Cryptopotato platform, there has been a decent spike in activity from large investors, who have been quietly accumulating Bitcoin in recent days.

Don’t miss this opportunity either. As the world’s most famous investor Warren Buffett said, „Be greedy when others are fearful“. Cryptocurrency market crashes are not uncommon, quite the contrary. Smart investors in all financial markets, including the cryptocurrency market, use dips to buy assets and expand their investment portfolios. At Fumbi, we offer you the opportunity to invest in a bundle of 24 cryptocurrencies in just a few clicks. Source

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Juraj Forgacs

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Investors show renewed interest in “digital silver”  – Crypto Weekly Update

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This week, the total market capitalization exceeded 1.76 trillion EUR. The increase at the 7-day interval is 0.57%. Bitcoin decreased by 0.81% during the week to a current value of over 38,100 EUR. Bitcoin dominance is 41.2%.

Source: Coinmarketcap

Investors Show Renewed Interest in Digital Silver  

In addition to Bitcoin, investors seem to be taking a renewed interest in an asset that has been considered a „digital silver“ in the past. The Litecoin network has seen a massive increase in transactions by whales (large investors) around its local price low of $105. The news was shared by Santiment, which released data showing that Litecoin reached its highest number of daily transactions worth above $100,000 in 11 months on April 14, with 5,508 transactions worth over $100,000.

The number of transactions on Litecoin has risen just as cryptocurrencies have entered a period of mild downturn and asset prices are mostly falling or consolidating between strong price supports and resistances. However, whales‘ growing number of transactions indicates that they are quietly accumulating the asset at the current price level.

Although the price of Litecoin and other assets has fallen in recent days, the accumulation is a bullish sign in the long term. Another significant milestone has been recorded in the Litecoin network in addition to rising accumulation. The hash rate, or the computational power available on the network for processing transactions, is very close to its all-time high. Usually, when the hash rate of a PoW network goes up, it means the network is very healthy and secure. Source

The Number of Bitcoins on Exchanges Continues to Decline

Data provided by blockchain analytics firm Glassnode shows that the number of coins held on exchanges declined by more than 20,000 BTC to 2,449,785 BTC last week, hitting the lowest levels since August 2018. The number of bitcoins held on exchanges has decreased by 138,266 BTC (almost 5%) since the beginning of the year. Data suggests that buying and holding bitcoins for the long term is still the preferred and most widely used investment strategy.

The decline of bitcoins on exchanges is primarily due to investors sending their bitcoins from exchanges to their private wallets to hold them for the long term. A continued decline in BTC available on exchanges means fewer coins available for sale and the potential for an extended rally.

Additionally, alternative metrics also show certain bullish signals. For example, the percentage of bitcoin inactive for at least a year recently reached a record high of 63.7%. The growing number of inactive bitcoins means that investors are unwilling to sell the asset at current prices and therefore are not transacting with them. Potential bitcoin price growth in the coming weeks is also signalled by renewed interest from whales, which accumulated more than 1,000 BTC last week. Source

UST Becomes Third-Largest Stablecoin

The TerraUSD (UST), an algorithmic stablecoin from the Terra ecosystem, has hit another key milestone. With a market capitalization of more than $17 billion, the UST stablecoin has become the third-largest stablecoin in the entire crypto sector.

The UST stablecoin overtook Binance USD (BUSD) to grab the third place, with the current gap in market capitalization of approximately $250 million.

Tether (USDT) remains the leading stablecoin, whose market capitalization recently surpassed $80 billion. USD Coin (USDC) is second at $49 billion.

In contrast to the other stablecoins, UST is designed quite differently. While USDC or USDT stablecoins are built on the premise that issuers hold assets worth the total market capitalization of those stablecoins, TerraUSD is designed to keep its peg to the greenback via a mint-and-burn mechanism and market arbitrageurs. You can read about how stablecoin UST works on our blog. Source

Ethereum Foundation Holds 0.3 % of All ETH

The Ethereum Foundation’s latest financial report for 2021 showed that the foundation’s treasury holds $1.3 billion Ethereum. Based on Ethereum’s current market capitalization of $368.8 billion, the Ethereum Foundation owns approximately 0.3% of all ETH in circulation.

„We believe that more decentralized funding is important for the future of the Ethereum ecosystem,“ stated Aya Miyaguchi, Executive Director at Ethereum Foundation. “We continuously try to allocate resources to third parties that we believe can make better decisions than us within certain domains.”

Last year, the foundation spent a total of $48 million. Layer-one research and development accounted for $21.8 million, including the Ethereum mainnet upgrade and external grants for network stress testing.  Source

Beanstalk Becomes a Victim of Flash Loan Attack

An Ethereum-based stablecoin protocol called Beanstalk Farms was exploited during the weekend. Hackers stole almost $180 million from the decentralized finance protocol, causing the value of the protocol’s native currency BEAN to drop by 80%.

The team behind Beanstalk said that the funds were siphoned off via flash loan, which allows you to borrow any available amount of assets without putting up any collateral, as long as the liquidity is returned to the protocol within one block transaction.

Blockchain security company PeckShield further reported that the attacker deposited most of the stolen assets to TornadoCash. According to an analysis by CertiK, the attacker used a flash loan obtained through the decentralized protocol Aave to borrow close to $1 billion in cryptocurrency assets and exchanged these for enough BEANs to gain a 67 percent voting stake in the project. With this supermajority stake, they were able to approve the execution of code that transferred the assets to their own wallet. Based on the duration of an Aave flash loan, the entire process took place in less than 13 seconds.

Interestingly, it appears that the perpetrator donated 250,000 USDC to the Ukraine Crypto Donation wallet. Source

Curiosity: Jack Dorsey’s First Tweet Sale

Crypto entrepreneur Sina Estavi bought Twitter founder Jack Dorsey’s first-ever tweet as an NFT for $2.9 million last year. He listed the NFT for sale again at $48 million last week. 

However, the NFT auction did not go as he had hoped. He received only seven bids for his NFT, ranging from $6 to $277, a miles away from his expectations.

„The deadline I set was over, but if I get a good offer, I might accept it, I might never sell it,“ Estavi told the Coindesk on Wednesday. Source

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Juraj Forgacs

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