Paul Ryan, a former speaker of the House of Representatives, has assessed the possible role that stablecoins will play in fighting an upcoming U.S. debt crisis. According to Ryan, the demand derived from the increasing relevance of dollar-backed stablecoins, which use U.S. treasuries as backing, will help keep a healthy demand on U.S. debt and […]
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Meme Stocks GME, AMC and Related Meme Coins Take a Hit as Roaring Kitty’s Influence Wanes
The Roaring Kitty craze appears to be dwindling at a swift pace, as evidenced by Gamestop’s stock, GME, which has dipped between 3-5% against the U.S. dollar during Tuesday’s mid-day trading sessions. Similarly, the meme stock AMC Entertainment Holdings, or AMC, has also experienced a decrease of approximately 1.87%. According to the cryptocurrency market cap […]
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Analyst Says Bitcoin Halving Influence Is No Longer Driving Price, Here’s What Is
Analysts from CryptoQuant have revealed that the influence of the 2024 Bitcoin halving on the price of BTC has notably diminished. According to the crypto analytics firm, the highly anticipated halving event is no longer the key driver for a bullish momentum in BTC.
Bitcoin Halving Effects On Prices Is Fading
CryptoQuant wrote in a recent research report that the upcoming Bitcoin halving event scheduled this April may not deliver the desired price shock expected by most crypto analysts and investors in the space.
According to the analytics firm, the influence of the Bitcoin halving event has been dwindling over time, with the price of the cryptocurrency and a potential bullish rally being driven by a new change in market dynamics.
Notably, CryptoQuant disclosed that the demand from long-term and large-scale investors, whales, has become one of the primary factors pushing the price of BTC upward. The Head of Research at CryptoQuant, Julio Monero disclosed on Tuesday, April 9, that the demand for Bitcoin from permanent holders has recently outpaced issuance for the first time in history.
In its report, CryptoQuant also highlighted an 11% month-on-month increase in large-scale Bitcoin investors holding between 1,000 to 10,000 BTC, reaching unprecedented levels. This elevated demand is in sharp contrast with BTC’s supply dynamics and is poised to increase further after the halving event concludes.
Currently, long-term Bitcoin holders are accumulating more tokens than the new investors entering the market. CryptoQuant revealed that permanent holders have also been adding as much as 200,000 BTC to their portfolio every month while long-term holders are amassing seven times more BTC per month.
“We argue that the effect of the halving has been diminishing, as the new issuance of Bitcoin gets smaller relative to the amount of Bitcoin selling from long-term holders,” the analytics firm wrote.
Analysts Remain Optimistic About Halving Influence
Despite CryptoQuant’s report on Bitcoin’s supply and demand dynamics, numerous analysts still expect a significant uptick in Bitcoin’s price following the halving event. Analysts like Joe Consorti have predicted BTC’s price to rise to 0,000 following the Bitcoin halving. Additionally, he has expressed optimism about a potential bullish rally for the cryptocurrency during this period.
Moreover, due to historical trends revealing a correlation between the Bitcoin halving event and a price surge for the cryptocurrency, various crypto investors have predicted a similar bullish outlook for the cryptocurrency this year.
Recently, open interest in Bitcoin surged to new all-time highs above billion. This increase suggests that traders and investors are still bullish on Bitcoin’s future value, seeing any price dips as buying opportunities before a potential rally.
Charles Hoskinson Signals Alert of Legacy Finance’s Creeping Influence in Crypto
In a video address, Charles Hoskinson casts a spotlight on the advance of traditional financial mechanisms into the realm of cryptocurrency, warning that the essence of digital currencies is at stake. Charles Hoskinson Warns of Crypto’s Creeping Centralization In a recent video titled “Legacy is Eating Crypto,” Charles Hoskinson, the co-founder of Ethereum and Cardano, […]
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Binance’s American VIPs: A Revealing Look at High-Net-Worth Influence Amid DOJ Settlement
On Tuesday, charges against crypto exchange titan Binance Holdings Limited were revealed by the U.S. Department of Justice (DOJ), which reached a significant .316 billion settlement with the world’s largest crypto exchange for noncompliance with anti-money laundering (AML) laws. Despite Binance’s 2019 claims to bar U.S. users, prosecutors asserted the firm persisted in providing market access to elite, VIP American patrons, who supplied roughly “one-third” of company trading revenue.
The Whales of Binance Decoded in DOJ Court Filing
Shockwaves continue rippling through the crypto sphere following the seismic DOJ, U.S. Treasury and Commodity Futures Trading Commission (CFTC) .3 billion settlement with Binance over allegations of knowingly shirking registration as a money services business. As alleged within the unsealed court documents, Binance and ex-CEO Changpeng Zhao (CZ) violated AML laws and the Bank Secrecy Act among other agency regulations.
The charges also highlighted Binance’s practice of maintaining a steady stream of very important people (VIPs) from the U.S., even after claiming to no longer serve U.S. customers following the establishment of Binance US. The unsealed document delved into Binance’s VIP clientele, revealing that high-net-worth individuals had contributed significantly to the exchange’s revenue.
“Although Binance announced it would block U.S. users and establish a separate exchange that would serve the U.S. market, Binance retained a substantial portion of its user base on Binance.com, with a particular focus on U.S.-based VIPs, including trading firms that made markets on Binance.com,” the court filing details.
11,000 VIP Whales Accounted for 70% of Binance’s Revenue in 2019
Per the court documents originally sealed on November 14, 2023, upon learning the formidable roster of 3,500 American VIP users in June 2019, CZ was briefed that 11,000 whale clients represented 70% of Binance’s trading volume, with U.S. VIPs comprising “about one-third” of this highly-lucrative bracket. By June 25th, CZ and three Binance brass began sketching strategies to clandestinely retain U.S.-based VIP users through direct phone communication.
An unnamed informant mentioned in the court filing revealed that Binance executives labeled American patrons “miscategorized,” with an internal “VIP handling” guidebook coaching employee management of these elite spenders. For example, this document reportedly demanded that privileged users open accounts sans any “U.S. documentation,” to ensure the confidentiality of the user. By 2020, the DOJ said that Binance still had a substantial amount of U.S.-based clientele but these customers were referred to as “unknown.”
In August 2021, Binance publicly explained that all users complied with know-your-customer (KYC) regulations, but the DOJ said that a higher tier of customers who did not submit KYC documentation were grandfathered until May 2022. During that time, the DOJ claims that Binance did not “systematically monitor transactions” on the platform. While none of the VIPs or market makers were mentioned in the court document, the filing gives a glimpse at how much power and impact crypto whales have in the industry.
What do you think about the details about Binance’s VIP customers? Share your thoughts and opinions about this subject in the comments section below.
Asian Economies Could Benefit From Reduced Dollar Influence, Says Devere CEO
The CEO of asset management firm Devere Group says the world is shifting “away from a dollar-dominated financial system.” Emphasizing that a shift away from U.S. dollar influence “could have positive implications for Asian economies,” he described: “With the dollar losing its stranglehold, Asian economies would also likely experience a diversification of reserve currencies, paving the way for greater regional trade and investment opportunities.”
How Reducing Dollar Dependence Could Benefit Asian Countries
Nigel Green, CEO of asset management firm Devere Group, published an opinion piece in Asia Times on Friday arguing that the decline of the U.S. dollar could benefit Asian economies. The executive began:
I believe that we are witnessing in real time the world beginning to shift away from a dollar-dominated financial system.
“Among other reasons, this is because astronomic levels of debt, and the enormous amount of desperate money-printing to monetize these debts, have caused a considerable drop in the long-term value of the currency,” he detailed.
Reiterating his warning earlier this year that the U.S. dollar’s dominance is under threat as Russia and Saudi Arabia eye the Chinese yuan for oil trade, the Devere boss emphasized:
A shift away from dollar influence could have positive implications for Asian economies.
He explained that reduced reliance on the greenback would allow Asian countries to “implement policies that are more tailored to their domestic economic conditions, potentially boosting stability and growth.”
Green further detailed: “With the dollar losing its stranglehold, Asian economies would also likely experience a diversification of reserve currencies, paving the way for greater regional trade and investment opportunities.” He continued: “A multilateral currency system would promote more extensive use of regional currencies like the Japanese yen, Chinese yuan and Indian rupee, making trade within Asia more accessible and efficient.”
Moreover, “A diminished dollar dominance would lead to more stable exchange rates, reducing volatility and uncertainty in cross-border transactions,” he noted. The Devere executive concluded:
A decline in dollar dominance would encourage Asian countries to diversify their reserve holdings, leading to better allocation of resources and increased investment in productive sectors.
Do you agree with Devere CEO Nigel Green about the decline of the U.S. dollar benefiting Asian economies? Let us know in the comments section below.
Blackrock’s Influence Fuels Soaring Bitcoin Interest, Google Trends Data Shows
Over the past 30 days, the popularity of the term “bitcoin” has surged significantly, as indicated by Google Trends metrics. On June 21, 2023, the search term bitcoin achieved a perfect score of 100. Notably, the curiosity surrounding bitcoin-related news has also experienced a notable uptick this past month. In particular, topics such as Blackrock’s exchange-traded fund (ETF) have contributed to the heightened interest in the subject matter.
Blackrock Sparks Bitcoin Interest Boom, According to Google Trends
Over the course of the past month, bitcoin (BTC) has witnessed a notable 9% increase in its price, captivating the attention of many. This surge in interest is depicted through Google Trends statistics, revealing a significant upswing in searches for the term “bitcoin.”
As of June 28, 2023, the data from Google Trends clearly demonstrates a significant rise in search activity since May 28, 2023. On that day, the search term bitcoin achieved a score of 61 out of 100. However, its popularity began to soar during the initial week of June, reaching an impressive score of 81.
By June 21, the search term bitcoin achieved a perfect score, just a few days after Blackrock filed its spot bitcoin ETF. The most recent date recorded in the data from Google Trends for the preceding 30 days was June 24, reflecting a score of 82.
Regarding regional interest, it is noteworthy that El Salvador displays the highest level of interest in searching for the term bitcoin. Following El Salvador, the countries that exhibit notable interest in bitcoin are Nigeria, Brazil, the Netherlands, and Slovenia, respectively.
The top five associated topics linked to web searches for bitcoin encompass “Blackrock,” “Blackrock Investment Management Company,” “SEC,” “U.S. Securities and Exchange Commission,” and “exchange-traded fund.” According to Google Trends metrics, the most prevalent query is “Blackrock Bitcoin ETF.”
Alongside the surge in basic web searches for the term bitcoin, there has also been a significant increase in interest regarding bitcoin-related news. On June 21, 2023, searches for news related to bitcoin reached a flawless score of 100.
The top five associated topics linked to both bitcoin and news encompass an “exchange-traded fund,” “Blackrock Investment Management Company,” “Blackrock,” “Bitcoin Mining,” and the “U.S. dollar.” According to data from Google Trends, the regions displaying the highest level of interest in bitcoin news worldwide over the last 30 days are Greenland, Western Sahara, Iceland, Mauritania, and Guinea.
What are your thoughts on Bitcoin’s surging popularity and its connection to the Blackrock spot bitcoin ETF? Share your thoughts and opinions about this subject in the comments section below.
Chinese State-Owned Banks Cut Dollar Deposit Rates — Dismiss Government Influence Claims
Major Chinese state-owned banks have lowered interest rates on U.S. dollar deposits. However, they reportedly dismissed claims that the moves were influenced by the Chinese government, stating that the rate cuts were market-driven.
Chinese Banks Reduce Dollar Deposit Rates
Major Chinese state-owned banks reportedly cut the maximum interest rates they offer on U.S. dollar deposits this week.
They explained that the moves were market-driven, dismissing recent reports by some news outlets that their decisions were influenced by the Chinese government. Reuters, for example, reported Tuesday that “In a rare attempt to bolster China’s yuan, a self-regulatory body overseen by the country’s central bank has told major state-owned banks to lower dollar deposit interest rates.” The publication cited four people with direct knowledge of the matter.
According to a Wednesday report by the Global Times, “some bank insiders” described the reductions in dollar deposit rates as a self-regulatory measure aimed at preserving stability in the dollar-yuan exchange rate. The yuan has weakened more than 6% against the USD since January.
A manager at a Bank of China branch in Shanghai detailed that the bank’s one-year dollar deposit rate has been reduced from 5% to 4.3% for deposits exceeding ,000 starting from Monday, and 2.8% for deposits below ,000. She anticipated that the deposit rate would remain unchanged for the foreseeable future but gradually decline over the long term. Citing several market factors as the reason behind the rate reductions, including the volatility of global interest rates and a rise in dollar deposits held by the banks, she insisted:
The fluctuation of bank interest rates is normal and relatively frequent.
A manager at an Industrial and Commercial Bank of China (ICBC) branch in downtown Beijing confirmed to the publication that dollar deposit rates have been significantly cut amid expectations of the U.S. Federal Reserve pausing interest rate hikes. For example, for deposits of ,000, the rate was reduced from 4.8% on Sunday to 2.8% on Monday.
Some Chinese lenders also cut rates on yuan deposits, the news outlet noted. A manager at a Shanghai branch of Ping An Bank said that the bank is considering reducing the current three-year yuan deposit rate of 3.25% to below 3%, with the change expected to take effect next week. On Thursday, Reuters reported that China’s biggest banks have lowered interest rates on yuan deposits.
Xi Junyang, a professor at the Shanghai University of Finance and Economics, explained that Chinese banks have sufficient dollar reserves so they do not need to offer high-interest rates to attract deposits. Xi further explained that the anticipation of a decrease in U.S. interest rates allowed Chinese banks the flexibility to make this adjustment, emphasizing that the decision is market-driven.
An economist at Oversea-Chinese Banking Corp., Tommy Xie, characterized the reduction in dollar deposit rates as a creative strategy to mitigate the effects of lower yuan interest rates. However, he noted that this measure alone is “probably not enough” to discourage carry trades that use cheaper yuan borrowings to fund dollar purchases.
Nomura Holdings’ strategists wrote in a note this week that “lowering onshore USD deposit rates may drive key accumulators of foreign currency to keep even more of their FX earnings offshore,” emphasizing that it may only add to the current negative balance of payment pressures for China.
What do you think about Chinese state-owned banks cutting U.S. dollar deposit rates? Let us know in the comments section below.
BRICS Nations Push to Expand Global Influence to Counter the West’s ‘Destructive Actions’
The BRICS nations are focusing on increasing their international roles and “enhancing coordination on key multilateral platforms,” Russia’s Minister of Foreign Affairs reportedly revealed after a meeting with BRICS ambassadors. He stressed “the need for joint efforts to counter destructive actions aimed at destroying the established security architecture.”
BRICS Seeks Expand Global Influence
Russia’s Minister of Foreign Affairs, Sergey Lavrov, stressed the need for joint efforts to counter Western countries’ “destructive actions” on Monday at a meeting with ambassadors from the BRICS countries, Russian news agency Tass reported. The BRICS nations consist of Brazil, Russia, India, China, and South Africa.
According to a statement released by the Russian Foreign Ministry at the conclusion of the meeting:
Lavrov stressed the need for joint efforts to counter destructive actions aimed at destroying the established security architecture, being undertaken in line with the Western countries’ neo-colonial policies.
During the meeting, the ambassadors discussed the development and strengthening of strategic partnerships within the BRICS framework, the statement details. “Current issues on the global agenda were examined with an emphasis on the inadmissibility of eroding the central role of the United Nations,” the Russian ministry explained, adding:
There was a general focus on increasing the international role of BRICS and enhancing coordination on key multilateral platforms.
Furthermore, Lavrov updated the BRICS ambassadors on the key points of Russia’s new Foreign Policy Concept, which highlights the desire for expanded interaction within the BRICS and a vision of a multipolar world order. The BRICS ambassadors then reaffirmed their commitment to a multipolar world order that is based on respect for international law and recognizes the sovereign right to choose one’s own path of development.
The Russian Foreign Ministry’s statement adds:
The growing interest was noted of a wide range of countries in cooperation with BRICS, which is now seen as the safeguard of true multilateralism.
The BRICS nations are reportedly working on creating a new form of currency, a topic that is expected to be discussed at the next leaders’ summit. “The transition to settlements in national currencies is the first step. The next one is to provide the circulation of digital or any other form of a fundamentally new currency in the nearest future,” said State Duma Deputy Chairman Alexander Babakov. Several other countries have expressed interest in joining the economic bloc, including Argentina, Iran, Indonesia, Turkey, Saudi Arabia, and Egypt. South Africa will host the next BRICS summit in August.
Many people believe that the introduction of a BRICS currency could jeopardize the USD’s status as the world’s reserve currency. Economist Jim Rickards said last week that the U.S. dollar’s greatest enemy as the world’s reserve currency is the Treasury which has weaponized the dollar and frozen the reserves of Russia’s central bank. Citing a similar reason, investment manager Larry Lepard predicted that the U.S. dollar could lose most of its value in five years.
What do you think about the BRICS nations seeking more influence and uniting against the U.S. dollar? Let us know in the comments section below.
Can Elon Musk Influence The Next US Election?
The Elon Musk Twitter deal is almost at its end. A Bloomberg report stated that the plan was to finalize the deal by Fri. 28 October, transferring ownership to the billionaire. As the social media platform is about to switch hands, it has raised multiple questions regarding Musk’s plans for it and its impacts. Since Twitter’s influence spans every sphere of everyday life, could Musk’s acquisition influence the next US election?
Twitter’s Influence On US Election
Over the years, there have been multiple bans placed on political figures by Twitter. One of the most notable is the ban of former US president Donald Trump – a move that saw calls for ‘freedom of free speech’ on the platform, which Elon Musk himself has highlighted.
Musk has previously made it known that when he took over the social media platform, he plans to ‘clean it up.’ His idea of a ‘clean up’ included making Twitter a platform that supports free speech. So it begs the question of how he intends to go about it.
Once Musk takes control of Twitter, he will have the power to unban important political figures such as Donald Trump and Senator Ron Johnson. If the Tesla CEO does choose to do this, it may have a profound influence on the next US elections as it reinstates the access of these political figures to a wide audience once more. However, there is no telling if it is possible to further influence beyond lifting the bans on political figures in pursuit of free speech.
The next US election will happen in 2024, and by then — assuming the deal goes through as planned, Musk will have had control of the social media platform for at least a year. This is enough time for some significant changes to the platform.
Musk, Bitcoin, And Social Media
Elon Musk has always been one of the biggest evangelists of Bitcoin and cryptocurrencies in general. Back in 2021, his electric vehicle company Tesla had briefly accepted Bitcoin payments before halting it due to environmental concerns. However, Musk has not stopped showing support for Bitcoin. Tesla still holds about 0 million worth of BTC on its balance as of the time of this writing.
It is therefore not a long shot to expect that the use of Bitcoin could be promoted on Twitter once Musk takes over. Twitter already has the “Tip Jar” feature that allows users to tip content creators using Bitcoin and other cryptos. Musk’s previous idea was to expand this to include Dogecoin. So the billionaire’s takeover of Twitter could lead to an even larger presence of the crypto community on the platform. He could use his new position to promote Bitcoin as he has done in the past.
As for the Twitter deal, Musk does not seem too fazed about the court order to complete the deal by Oct. 28. “I think it’s an asset that has just sort of languished for a long time but has incredible potential,” Musk said during a Tesla earnings call. “Although obviously myself and the other investors are overpaying for Twitter right now.”
Elon Musk visited the Twitter headquarters on Wednesday where he said he met “a lot of cool people.” He is expected to speak to Twitter workers on Friday about the future of the platform. While there are no public details on what this would entail, there have been reports that he plans to cut 75% of the 7,500 workers, leaving a skeleton staff of 2,000.
BTC recovers above ,700 | Source: BTCUSD on TradingView.com
Featured image from Ekonomist, chart from TradingView.com
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