Former President and Republican Presidential Candidate Donald Trump reportedly inquired about solving the U.S. national debt problem using bitcoin. Audio recorded by the Bitcoin.com News team confirmed that on an X space held on Sunday night, Bitcoin Magazine CEO David Bailey revealed that Trump asked if bitcoin could solve the trillion U.S. national debt […]
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Boomers Interested In Bitcoin, Market Won’t Allow BlackRock To Buy BTC Below $60k
As institutional interest in Bitcoin grows, Fidelity and BlackRock’s proposed spot Bitcoin Exchange-Traded Fund (ETF) faces an unexpected hurdle: the crypto market’s unwillingness to let go of the coin at bargain prices.
Bitcoin To ,000 In Progress?
According to Mike Alfred, who claims to be a value investor and a board director, the market will “unlikely” allow BlackRock to purchase BTC below ,000. Taking to X on December 4, Alfred said BlackRock and other Wall Street players keen on issuing spot Bitcoin ETFs would have to “buy for Boomer’s 401k plans for at least ,000.”
This preview stems from the rapidly growing demand among institutional investors, as seen by the number of Wall Street players willing to issue complex derivatives tailored for, among other investors, “baby boomers,” most of whom are “approaching retirement.” With their substantial retirement savings, baby boomers increasingly recognize BTC’s potential as a hedge against inflation and a store of value.
Following Federal Reserve intervention during the COVID-19 pandemic, inflation rose to multi-year levels in 2021. To preserve purchasing power, the central bank began hiking interest rates. Although inflation has fallen and the economy stabilized, it remains higher than the target of 2%. The Fed continues to track this metric and may further intervene by raising rates to lower inflation. This might impact Bitcoin prices, as seen in the past months.
Nonetheless, the potential influx of boomer money into Bitcoin via a Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) approved derivatives product is a big boost for the coin. Though the SEC has yet to authorize multiple spot Bitcoin ETFs, the crypto and Bitcoin market expects the strict regulator to greenlight the first product in the next few weeks.
BlackRock And Company To Buy BTC At A Premium
Accordingly, ahead of this milestone development for the Bitcoin and crypto market, Alfred thinks BlackRock, Fidelity, and other players won’t secure Bitcoin at spot rates. Instead, the market anticipates that BlackRock, one of the world’s largest digital asset managers, will make their “bi-weekly purchases at prices above ,000.”
The coin is trading at April 2022 levels, ripping above ,000 over the weekend as bulls step up. Looking at the BTC candlestick arrangement on the daily chart, the first clear resistance is around ,000.
The coin trades within a bullish breakout formation following gains above ,000. As buyers step up and investors anticipate the SEC approving the first batch of spot Bitcoin ETFs, the coin will likely continue increasing toward all-time highs of around ,000.
US-Saudi Tensions Escalate as Report Says Crown Prince Is No Longer Interested in Pleasing the United States
After Saudi Arabia and members of the Organization of the Petroleum Exporting Countries (OPEC) surprised the world by announcing cuts to oil production, a spokesperson for U.S. president Biden’s National Security Council stated that reducing production is not advisable. According to a recent report, Saudi Arabia’s crown prince Mohammed bin Salman has told associates that Riyadh is no longer interested in pleasing the United States.
The Growing Shift Away from U.S. Dollar Hegemony in Global Trade and Finance
There has been a lot of focus on OPEC members and the BRICS countries (Brazil, Russia, India, China, and South Africa) recently as several members of these groups are shifting alliances. On Sunday, April 2, several major oil producers, including Saudi Arabia, Russia, the United Arab Emirates (UAE), Iraq, Kuwait, Oman, and Algeria, announced plans to cut oil production in 2023. The cuts will begin in May, and it is estimated that production will be reduced by 1.15 million barrels of oil per day.
After the decision, the White House responded to the news by stating that cutting oil production was not advisable. Despite statements from the Biden administration and various Democratic policymakers vowing consequences the last time major oil producers cut production in October 2022, Saudi Arabia’s leaders do not seem to care. According to a Wall Street Journal (WSJ) report published on April 3, Prince Mohammed “told associates late last year that he was no longer interested in pleasing the [United States].”
According to a report by Summer Said and Stephen Kalin in the WSJ, “people familiar with the conversation” explained that the prince wants “something in return for anything he gives Washington.” The report also claims that the oil production cut “has major political ramifications and could add to Riyadh’s already significant tensions with Washington.” Last October, Saudi government officials reportedly mocks president Joe Biden over his mental acuity. In July, Biden flew to Saudi Arabia to meet with the prince and pressed the Saudis for more oil production.
However, the Saudi government refused his requests, and after Biden left, the U.S. president was ridiculed on a television broadcast aired in Saudi Arabia, calling him “Sleepy Joe.” At that time, people familiar with the matter told the WSJ that unnamed members of the Saudi government say the prince and his team privately make fun of president Biden behind his back. Biden was also mocked when he traveled to see the prince and decided not to shake the prince’s hand, instead offering a pandemic-inspired fist bump.
Amid the Saudi government’s message and America’s tensions with the BRICS nations, the U.S. government’s exceptionalism that inspired the 2004 comedy “Team America: World Police” seems to be fading faster than ever before. This year, after a 48-year relationship solely with the U.S. dollar, Mohammed Al-Jadaan, Saudi Arabia’s finance minister, said the kingdom is open to trading in currencies other than the U.S. dollar.
Many analysts and economists have stressed that the U.S. dollar has been propped up by the petrodollar scheme since 1944. The recent events in 2023 indicate that the greenback’s superiority is taking a back seat, and many officials abroad don’t seem to care what the U.S. thinks these days.
What do you think the long-term implications of these tensions between the U.S. and Saudi Arabia will be on the global oil market and the international relations between these two countries? Share your thoughts about this subject in the comments section below.
80 Crypto Firms Interested in Establishing Presence in Hong Kong, Official Says
Hong Kong’s Secretary for Financial Services and Treasury has revealed that more than 80 crypto companies have expressed interest in establishing a presence in Hong Kong. They include companies across mainland China, Canada, European Union countries, Singapore, the U.K., and the U.S. “We attach great importance to virtual asset (VA) and Web3,” said the government official.
80 Crypto Companies Interested in Hong Kong
Hong Kong Secretary for Financial Services and the Treasury Christopher Hui revealed during a speech at the Aspen Digital Web 3 Investment Summit earlier this week that more than 80 crypto firms have expressed interest in establishing a presence in Hong Kong.
“We attach great importance to virtual asset (VA) and Web3,” Hui stated, emphasizing: “The Government has high-level commitment of developing the sector and providing a comprehensive support system to enterprises which are passionate pioneers and start-ups in this area.”
The official noted that the “Policy Statement on Development of VA,” which the Hong Kong government issued last year, “has been well received by the industry,” elaborating:
As of end-February 2023, Invest Hong Kong has received expressions of interest from over 80 virtual asset-related mainland and foreign companies in establishing their presence in Hong Kong.
Invest Hong Kong (Invest HK) is a government department with a mission to attract and retain foreign direct investment (FDI) to Hong Kong.
“These companies included VA exchanges, blockchain infrastructure companies, blockchain network security companies, virtual currency wallets and payment companies, as well as other projects on building the Web3 ecosystem,” Hui detailed.
Specifically, as of the end of February, Invest Hong Kong has received indications from 23 companies across mainland China, Canada, European Union countries, Singapore, the U.K., and the U.S. that they plan to establish a presence in Hong Kong, the official said.
Hui also mentioned that the Hong Kong government has established a licensing regime for crypto service providers which will go into effect in June, and the Hong Kong Monetary Authority is developing a regulatory regime for stablecoins with the goal of implementing regulations by 2024.
“We have advanced our securities rules to allow regulated intermediaries to offer trading of eligible VA futures ETFs [exchange-traded funds] to retail investors in Hong Kong,” the official further shared, noting:
Within a few months’ time, we are glad to see that three VA futures ETFs have already been listed and traded on the Hong Kong Stock Exchange.
“Hong Kong is well-positioned to be a leading hub for Web3 in Asia and beyond,” Hui claimed, adding: “We have a vibrant fintech ecosystem here in Hong Kong, with over 800 fintech companies offering different kinds of innovative and convenient financial services for members of the public and the business sector.”
Do you think Hong Kong will become a crypto hub? Let us know in the comments section below.
Study Finds El Salvador Remains One of the Countries Most Interested in Bitcoin
A recent study that examined the interest of several countries in bitcoin and crypto ranked El Salvador as second for having the most interest in the issue. While the U.S. was still ranked first, El Salvador’s high rank comes amidst criticism President Nayib Bukele has drawn from Salvadorans for his push for bitcoin adoption.
El Salvador Retains Interest in Bitcoin
El Salvador ranks amongst the countries most interested in learning about bitcoin and its uses, according to a recent study made by Crypto Betting, a decentralized gaming portal. The study, which examined the behavior of the queries using Google Analytics and the number of bitcoin ATMs in each country, found El Salvador was the country with the second highest interest in the subject.
The study gave the country a grade of 46.19 on a scale of 0 to 100, where the most interested countries in bitcoin ranked closer to 100. About the situation of El Salvador, the report stated:
El Salvador is a unique and prominent player in the world of Bitcoin.
The U.S. was ranked as the country most interested in bitcoin worldwide, receiving a grade of 54.95 out of 100. Other countries that ranked high in the report were Vietnam, Canada, Nigeria, Switzerland, Philippines, India, Venezuela, and Austria.
Crypto in the Country
While the country saw the approval of the Bitcoin Law in June 2021, which would make bitcoin legal tender in the country, analysts and studies have criticized the push that President Nayib Bukele is making for bitcoin adoption.
For example, several polls organized by the Simeon Canas university last year have found that most Salvadorans believe that bitcoin has not improved their personal finances, having a negative opinion about bitcoin. Also, another study conducted in May 2022 by the Center for Citizen Studies of the Francisco Gavidia University, found that more than 60% of Salvadorans disagreed with the adoption of bitcoin as a legal tender, embracing the use of the U.S. dollar instead.
Even with this criticism, Bukele has pushed for the construction of Bitcoin City, a city powered by geothermal energy that will be built with funds coming from the so-called Volcano Bonds, which have yet to be issued by the government. The study suggests that there is still interest in the crypto issue in El Salvador, even if the population is not completely convinced about it.
What do you think about the interest that El Salvador has in Bitcoin? Tell us in the comments section below.
Ethereum Whales More Interested In Shiba Inu Than Polygon, Here’s Why
According to data from Whalestats, a tracker for large crypto investors, Ethereum whales have shown more interest in Shiba Inu (SHIB) than Polygon (MATIC). Over the past few days, a large amount of SHIB tokens have been recorded to be stored more than MATIC by Ethereum whales.
Whales are described as the largest investors in an asset. Given their immense buying power and capacity to influence price action, they have always had a significant role in the crypto market.
Ethereum Whales Holds More SHIB Than MATIC
Earlier today, Whalestats revealed that the top 1,000 Ethereum whales hold an average of 9 million, about 0 million higher than their 0 million worth of MATIC. Notably, last month, several reports revealed Ethereum whales massively accumulating MATIC.
On February 8, Whalestats reported ETH whales buying over million of MATIC. A day later, WhaleAlert, another crypto whale tracker, said that huge MATIC transactions were occurring on the blockchain.
According to the tracker, a trade of 38,000,000 MATIC, worth more than ,000,000 at the time, was executed from an unknown wallet to an anonymous wallet. Furthermore, the 9 million worth of SHIB, reported by Whalestats, ETH whales hold represents just 10% of Ethereum whales’ altcoins.
There is a lot of uncertainty about whether the market will see another rally or bearish trend; most investors have their assets stored in stablecoins, a non-volatile type of crypto-backed by real word currency such as the U.S. dollar.
While the top ETH whales hold 9 million worth of SHIB, they hold more stable assets such as USDC worth .06 billion and USDT worth 8 million on average. ETH whales hold more SHIB and MATIC as alternative assets, along with Chainlink (LINK) and Uniswap (UNI).
SHIB And MATIC Price Action
Regardless of the ETH whales’ interest in it, Shiba Inu (SHIB) is currently in a bearish trend, down by 3% in the past 24 hours with a trading price of .00001198 and a 24-hour trading volume of 4 million.
Though the token is in a downtrend, it is still up by over 40% since the beginning of the year after following the ubiquitous plummet last year. Despite its significant spike since 2023, SHIB is still 86% down from its peak of .00008616 in October 2021.
Meanwhile, MATIC is no different; the asset is still 59% down from its all-time high of .92 despite its notable uptrend since the beginning of the year and Polygon’s collaborations with several Web3 and big tech firms.
At the time of writing, MATIC is also in a bearish trend along with the rest of the crypto market, down by 3.6% in the past 24 hours with a trading price of .20 and a 24-hour trading volume of 7 million.
Bank of New York Mellon: ‘Clients Are Absolutely Interested in Digital Assets’
Bank of New York Mellon (BNY Mellon) has revealed that its clients “are absolutely interested in digital assets.” Emphasizing the need for clear crypto regulation, the bank’s head of digital assets noted: “We need responsible actors who can offer reliable services that live up to investors’ trust.”
BNY Mellon’s Clients Are ‘Absolutely’ Interested in Digital Assets
Bank of New York Mellon’s head of digital assets, Michael Demissie, said Wednesday at Afore Consulting’s 7th Annual Fintech and Regulation Conference that digital assets are “here to stay,” Reuters reported. The executive was quoted as saying:
What we see is clients are absolutely interested in digital assets, broadly.
Demissie cited a BNY Mellon client survey conducted in October last year which showed that more than 90% of clients expected to invest in tokenized assets in the near future.
The bank’s head of digital assets added that deeper crypto regulation is required, the publication conveyed. “It’s important that we navigate this space in a responsible way,” he stressed, elaborating:
We absolutely need clear regulation and rules for the road. We need responsible actors who can offer reliable services that live up to investors’ trust.
BNY Mellon was among the first banks to enter the crypto space. The bank announced in February 2021 that it has formed a new digital assets unit to build the industry’s “first multi-asset digital platform.” Roman Regelman, CEO of Asset Servicing and Head of Digital at BNY Mellon, detailed at the time: “BNY Mellon is proud to be the first global bank to announce plans to provide an integrated service for digital assets … Growing client demand for digital assets, maturity of advanced solutions, and improving regulatory clarity present a tremendous opportunity for us to extend our current service offerings to this emerging field.” In September 2021, the bank wrote: “Digital assets have clearly entered the mainstream.”
Last week, the bank appointed Caroline Butler as the CEO of its digital assets division. Regelman commented:
As institutional adoption of digital assets continues to evolve, we are committed to being a trusted provider of services to the broader financial ecosystem.
What do you think about the statement by Bank of New York Mellon’s head of digital assets? Let us know in the comments section below.
Bearish Indicator: Are Big Players No Longer Interested In Bitcoin?
Bitcoin prices are trending higher, but big players appear hesitant to buy into the current rally.
Bitcoin Reserves Dropping
On-chain data shows that exchange, digital asset banks, and miner BTC reserves are relatively lower. Over the past weeks, the spot price of BTC has soared over 40%, bottoming at around ,300 registered in Q4 2022. Bitcoin has now risen to retest ,300, reaching a new Q1 2023 high.
As history shows, the spike in Bitcoin prices should be at the back of solid support, mainly from heavyweights, including miners and digital asset banks.
Bitcoin miners tend to have big reserves of BTC at any point in time since they need to liquidate from time to time, meeting operation costs. In recent months, following the drop in Bitcoin prices coupled with a high hash rate potentially making mining success harder, their reserves have declined.
Looking at Bitcoin Miners’ and Digital Asset Banks’ Reserves
According to streams, BTC reserves fell from 1.847 million on January 12 to 1.836 million on January 2023. During this time, the price of Bitcoin has been on a bullish run, questioning whether the pump is on an empty tank.
It should be noted that miners tend to offload their coins when unsure of the price trajectory in weeks and months ahead.
Their selling deluge punctures the upside momentum and might even push the coin lower. However, when miners are confident about what lies ahead, they accumulate, expecting the shift in trend to result in tidy profits on their end. Therefore, the current divergence between miner reserves and prices could be a bearish signal.
Besides miners, digital asset bank reserves are declining. Digital asset bank reserves refer to BTC held by these regulated institutions. Over the past few months, following the collapse of FTX, Alameda Research, and the effects it had on other players, including DCG and Genesis Global, their activity has been near non-existent.
The contraction means institutions are playing safe and may not be willing to accumulate and store their coins in these ramps. During the last bull cycle, from 2020 to 2021, there was noticeable activity amongst digital asset banks, pointing to possible interest from institutions.
Although traders and optimists might interpret the recent bounce in crypto prices as a net positive for BTC, the absence of leads, judging from institutional activity, may question whether the current rally would last longer.
There might be a regulatory angle affecting digital asset banks’ involvement. Government agencies are asking whether crypto venture capitals and service providers did adequate due diligence before exposure to crypto in the last bull cycle.
At the same time, some digital asset banks are reducing their crypto exposure, affecting activity.
Survey Suggests Institutional Investors Still Interested In Crypto
The crypto market is undergoing one of its lowest cycles since the turn of the year. Some crypto forecasts predicted a more positive outlook for the crypto market for November. However, events changed things negatively.
The U.S. Federal Reserve (Fed) held onto the rates hike, and FTX’s collapse further plunged the market into chaos. After recent events, investors withdrew most of their crypto holdings from FTX and other major exchanges.
Institutional Investors Increase Crypto Holdings
According to a Coinbase report in the Institutional Investor Digital Assets Outlook Survey, professional investors have added to their portfolios. The survey conducted on 140 investors between September 21 and October 27 revealed this information.
The total crypto assets of these investors were .6 trillion. This survey was before the FTX incident, before the latest price downtrend.
Of the survey participants, 62% already in possession of crypto holdings increased the size of their portfolio. This increase took place within a year. Notably, just 12% of the survey participants decreased their assets in the same timeframe.
It implies that institutional investors have taken a long-term stance on crypto assets with optimism for the future. Up to 58% of these investors will likely increase their holdings in the next three years.
Overall, the general sentiment for cryptocurrency was optimistic, with around 72% of the respondents affirming their belief in cryptocurrency. This survey highlights the increasing adoption of cryptocurrencies globally.
The three main reasons for crypto investment noted in this survey are: investing in innovative technology, improved funding, and access to profitable opportunities.
Coinbase Stocks Under The Weather
Coinbase stocks have taken a significant hit in the prevailing bearish market cycle. The stock (COIN) fell to a low of . It is currently up to around .57. COIN is trading at almost less than 90% of its all-time high value of 7, achieved on November 2021.
Binance has now officially surpassed Coinbase Pro as the largest holder of Bitcoin. According to the information from CryptoQuant. With over billion worth of crypto removed from central exchanges, Binance exchange; now has the largest store of BTC holdings.
Coinbase CEO Brian Armstrong has moved to dissuade fears of a possible collapse similar to FTX. In his tweets, he expressed sympathy and stated that Coinbase has no material exposure to FTX and its affiliates.
He blamed the collapse of FTX on risky activity and misuse of investors’ funds. He assured users of the safety of their assets and transparency in dealings.
He stated that the crypto industry should build a better financial system based on DeFi and self-custodial wallets in the future.
Although cryptocurrencies have suffered losses recently, institutional investors’ positions suggest there might be hope for a recovery.
Featured image from Pixabay, chart from TradingView.com
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Crypto Giant Coinbase Not Interested In Buying FTX U.S, COIN Stock Plunges
The crypto market became red with massive losses on Tuesday. Some analysts speculated that the selling pressure on Bitcoin and Ethereum from FTX’s attempt to raise liquidity against impending insolvency caused this cascade of losses.
Some analytics data revealed that FTX liquidated its ETH holdings, which placed selling pressure on Ethereum and extended a sell-off to Bitcoin. However, despite FTX’s actions in the market to withstand the tanking of its token FTT, the asset didn’t recover.
As of November 7, FTT was down by 19% and has dropped further by 73.04%. News of the FTT collapse spread through the entire crypto market like wildfire with accompanying losses. As a result, the crypto market lost nearly 0 billion, slumping by 10% in the last 24 hours, including a 10% drop in the NASDAQ:COIN stock by the end of Tuesday.
The massive loss and sell-offs in the crypto market presented an opportunity for some crypto investors to stuff their wallets with assets. Cathie Woods’ Ark Invest seized an opportunity during COIN stock falls on Tuesday to purchase 420,000 COIN shares worth million. COIN stock is currently trading at an 80% discount.
Status Of Binance Deal With FTX
FTX’s ordeal started with the announcement by Binance to liquidate its FTT holdings. But this applies to FTX businesses outside the United States. Speaking on Bloomberg Television, Coinbase CEO Brian Armstrong commented on Binance’s decision. Armstrong said he would not make the same move as Binance did. According to the Coinbase chief, that move will distance him from chances to acquire FTX U.S.
Meanwhile, Binance has some connection with FTX since its deal with the exchange has not ended. Both firms need to do some settlements. The Coinbase CEO further stated that if the FTX/Binance deal falls through, FTX customers will incur losses, which is not good.
How FTX Ordeal May Affect Crypto Regulation: Coinbase CEO
It appears that FTX’s losses have become gains for Coinbase. According to Armstrong, Coinbase’s customer activities have increased since the news of the FTX issue. He explained that customers who patronize less regulated overseas exchanges are at risk of losses.
The CEO noted that not buying FTX would be okay for Coinbase, but he refused to give more details about his reason for saying so. He added that FTX’s financial crisis might not affect how regulators see the crypto industry. However, the issue would change the regulator’s perception of Sam Bankman-Fried, the FTX CEO.
Recall Bankman-Fried has kept an active presence in the Washington Congress in attempts to lobby for the crypto industry regulation.
Meanwhile, FTX is currently trading at .65, with a live market cap of9,086,494 and a trading volume of ,262,989,678.
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