Crypto Guides, Knowledge & Insights

Bitcoin Just $3K Away from Trillion Dollar Market Cap

In its week on-chain report this week, analytics provider Glassnode has delved into the spending habits of holders and investors.　　It stated that the week had seen some minor profit realization on-chain by long-term holders, “although so far it does not appear to be of significant coin volume to put the brakes on.”　　The report added that the key level to break is $53K for Bitcoin to return to the “12-zeros club” – meaning a trillion-dollar market capitalization.　　Bitcoin on Exchanges Plateaus　　One metric that has been visible over the past week or so is that the massive outflow of crypto assets from exchanges has abated as levels begin to plateau. Glassnode noted:　　“This week saw a very slight uptick in BTC held on exchanges which follows a month long plateau in coin balances.”　　Throughout August, exchange balances have stalled at around 2.5 million BTC or around 13% of the circulating supply. Ethereum balances hit an all-time low of around 15 million ETH last week.　　The report added that the Exchange Net Flow metric showed moderate inflows to exchanges as some traders and investors appeared to be taking profits and capitalizing on market strength. The magnitude of the flows was similar to those seen through the December

2021-08-24Deep Dive

Iran: Legal Bitcoin Mining Can Resume from the End of September

The Iranian government would enable authorized cryptocurrency miners to resume their endeavors from September 22nd.　　Tavanir – Iran‘s Power Generation, Distribution, and Transmission Company – revealed that the ban on cryptocurrency mining would be lifted as early as September 22nd. The country’s authorities would allow digital asset miners to restart their operations legally, hoping to see a decline in energy consumption by the end of summer.　　Crypto Mining Is Back from The End of Summer　　Citing Irans Power Generation, Distribution, and Transmission Company, a recent report said the country will remove its temporary ban on cryptocurrency mining. Meaning that after September 22nd every legal company in the field can resume its activities.　　Back in May, the Iranian government imposed strict restrictions. The officials claimed that its electricity network is under huge pressure and its sustainability is at risk. As such, they blamed cryptocurrency mining for it and implemented a total ban on all mining endeavors until September 22nd.　　The spokesman of Tavanir – Mostafa Rajabi Mashhadi – informed that the months with high power consumption are almost over. With that said, cooler temperatures from the start of autumn would make legal virtual asset mining possible again.　　During the last few months, the government of Iran took

2021-08-24Deep Dive

Bloomberg strategist explains why 30-year US bonds have 'bullish implications' for Bitcoin

Despite Bitcoin (BTC) slipping back below $50,000, more and more investors are likely to move their capital into Bitcoin and gold markets in the second half of 2021 (H2), asserted Mike McGlone, senior commodity strategist at Bloomberg Intelligence, on Aug. 23.　　The financial analyst cited the consistently lower yields offered by the 30-year U.S. Treasury note to explain his upside prediction. He noted that if its rate of return persists below 2%, it could enhance the price discovery stage for Bitcoin while posing a competitive advantage for traditional safe-haven assets like gold.　　“Unlike the stock market, the old analog store-of-value and new digital version share substantial corrections,” McGlone added, referring to the little reversion in the Ss unprecedented interference in the bond market after the March 2020 market crash drove rates down. Institutional investors that ideally look for 5% annual yields from the bond market to curb inflationary pressures now grappled with short-term bonds, some of them offering yields below zero.　　Meanwhile, yields on the longer-dated Treasury also fell to record lows. That forced investors to look for alternatives in the riskiest parts of the financial markets — higher-returning, non-debt investments like Bitcoin.　　“It was the breach of [the 2%] threshold in 2020 that

2021-08-24Deep Dive

Circle Changes USDC Reserve Composition To Cash and Treasury Bonds

Boston-based digital currency company Circle, with the support of Centre and Coinbase, has announced that it will change the composition of USDC reserves to cash and short-term US Treasury Bonds.　　Per Grant Thorntons attestation, Circle expanded beyond cash and cash equivalents already in May 2021, However, witnessing the evolving regulatory landscape and scrutiny in the ecosystem, the company has provided a detailed breakdown of its reserve composition. Previously, the USD coin was backed 1:1 by dollar and cash made up over 60% of its entire reserves. The remaining 40% was backed by various short-term treasury bonds.　　 Circles call to abide by the regulations　　Amid increased regulatory scrutiny from authorities, stablecoin issuers are instructed to regularly provide detailed breakdowns of their reserve composition. To tackle this evolving regulatory landscape, Circle also announced its USDC reserve composition on Sunday. However, the companys announcement seemed more of a revelation.　　Coinbase and Center, a consortium formed by Circle noted that “with the communitys belief, commitment to transparency, and seeing the evolving regulatory environment, Circle will hold USDC reserves entirely in cash and short-term US Treasuries with the support of Center and Coinbase.” As per the company, the changes will be executed expeditiously and will be indicated in

2021-08-24Deep Dive

Dituduh Manipulasi Pasaran, Ini Penjelasan Binance...

Tidak pasti apa yang mencetuskan ‘emosi’ Binance, namun ada segelintir pihak berpendapat ia mungkin berkaitan dengan kenyataan yang dimuatnaik oleh seorang individu yang mengaku dirinya sebagai bekas pekerja Binance.　　Pada 21 Ogos, pengguna twit dengan username @RealFulltimeApe telah menuduh Binance mempergunakan penggunanya: “Sebagai bekas jurutera data Binance (Eropah), saya boleh beritahu anda: Anda telah ditipu. Binance sentiasa countertrading dan liquidating anda. Binance ada menyimpan gambaran keseluruhan liquid besar dan sengaja pump/dump harga untuk mendapatkan keuntungan. Bukti akan menyusul.”　　Menyedari keadaan ini menyukarkan lagi pasaran Binance, pihak mereka tidak teragak-agak untuk mengambil tindakan undang-undang demi melindungi kepentingannya.　　Sementara itu, akaun @RealFulltimeApe didapati telah dipadam ketika artikel ini ditulis.　　Kedudukan Binance boleh dikatakan semakin meruncing.　　Sebelum ini firma itu telah berhadapan dengan isu pengoperasian secara haram dan menjadi sasaran pihak berkuasa beberapa negara termasuk Italy, Malaysia, Poland, Jerman, United Kingdom (UK), Thailand, Kanada, Jepun, Singapura, Korea Selatan, dan Netherland

2021-08-24Deep Dive

Visa Umum Pembelian NFT CryptoPunk!

Visa dilaporkan telah membeli salah satu CryptoPunk NFT yang telah berjaya meraih jutaan dolar dalam lelongan. Syarikat gergasi Visa telah membelanjakan $150,000 untuk CryptoPunk 7610. Visa tidak melakukan pembayaran secara langsung namun melakukannya dengan kerjasama Anchorage. Dalam merealisasikan proses itu, Anchorage menjadi bank A.S pertama yang menguruskan NFT tersebut.　　CryptoPunk dianggap sebagai koleksi pelaburan NFT blue-chip kerana jumlah penjualan telah mencapai $ 752 juta.　　Daripada Sheffield, pengurus kripto di Visa,　　Kami berpendapat bahawa NFT akan memainkan peranan yang sangat penting pada masa akan datang dalam industri peruncitan, hiburan dan perdagangan. Justeru, pihak Visa ingin memahami secara langsung apa yang diperlukan untuk memperoleh, menjaga, dan berinteraksi dengan NFT. Visa telah bekerjasama dengan Anchorage bagi merealisasikan hal ini dengan harapan dapat melatih kepakaran dan membantu pelanggan.　　Koleksi CryptoPunk terdiri daripada 10,000 gambar 24 × 24 piksel avatar yang dihasilkan secara automatik. Avatar CryptoPunk Visa dicirikan oleh seorang wanita dengan mohawk dan mata hijau yang besar.　　NFT sejak akhir-akhir ini menjadi ‘trend’ kerana jenama-jenama terkenal dan selebriti menerbitkan dan membuat pembelian NFT.Visa juga merancang untuk memainkan peranan penting dalam Metaverse. Dalam masa yang sama, menzahirkan bahawa ingin menjadi pemain penting dalam Metaverse dan merancang untuk membeli lebih banyak NFT.

2021-08-24Deep Dive

Not banks, not memecoins: Is crypto’s biggest hurdle a political one?

It is not a secret that cryptocurrency has been struggling to find its place in the world. The problem is not that it does not have any value, as many people are happy to use it for transactions without conversions into fiat currency. The issue is with governments and regulations.　　Some believe cryptocurrency needs regulation, while others feel like regulating said financial disruptor will only stifle innovation and make things worse for everyone involved, from the miners to the investors. This article seeks to explore this idea of what lies at the heart of this debate – politics or economics？　　 Cryptocurrency Around the World　　Despite its uses, some countries have accepted cryptocurrency as a legitimate form of payment while others have tried to ban it outright.　　For example, the Chinese government has enforced a complete ban on bitcoin, prohibiting banks from transacting or dealing in virtual currency. The crackdown targets miners who make more money for themselves by mining bitcoins and then using it to buy goods online without using traditional payment methods like credit cards or the Chinese Yuan.　　Meanwhile, El Salvador is the only country in the world to allow bitcoin as legal tender. In June 2021, President Nayib Bukele proposed, and

2021-08-24Deep Dive

Tether Starts Printing Again After 2-Month Pause

Tether, issuer of the world‘s largest stablecoin, USDT (-0.03%), has started printing again after a roughly two-month halt that sparked investors’ concerns and speculation. 　　Tether has minted at least 2.3 billion USDT since Aug. 1, pushing the tokens market cap to $65 billion, a Tether representative told CoinDesk via email. USDT, which is pegged to U.S. dollars, usually trades at $1. 　　In June and July, USDT‘s market cap stagnated around $62 billion despite small fluctuations. Industry experts attributed the reduced demand to China’s crackdown on crypto, the rise of the competing stablecoin USDC (+0.01%) and investor concerns over Tethers own vulnerability. 　　Demand for USDT has recently rebounded, according to Tether and industry experts, as crypto market sentiment has turned increasingly positive. The largest cryptocurrency by market cap, bitcoin (BTC, -1.75%), has rebounded from its July low of around $29,600, trading at $49,540 as of press time, up 1.8% over the past 24 hours.　　“From a supply/demand perspective, as crypto prices go up, more stablecoins and fiat are needed to buy the assets and expand the total market cap of crypto,” Gary Pike, director of sales and trading at crypto services firm B2C2, told CoinDesk. 　　“We are seeing increased trading activity across

2021-08-24Deep Dive

VISA Buys CryptoPunk For $150K, What This Means For The Ethereum Ecosystem

Payment giant VISA has made another bet on the Ethereum ecosystem. The company recently announced the purchase of an item from the popular non-fungible token (NFT) collection CryptoPunk.　　Item 7610, one of 3840 “Female” punks with a Mohawk, Clown Eyes Green, and “Hot” Lipstick, VISA purchased this Ethereum-based NFT on August 18th, 2021. The company paid around 49.50 ETH or $150,000, at the time. The company said:　　Over the last 60 years, Visa has built a collection of historic commerce artifacts – from early paper credit cards to the zip-zap machine. Today, as we enter a new era of NFT-commerce, Visa welcomes CryptoPunk #7610 to our collection.　　Additionally, Cuy Sheffield head of VISAs crypto division said that the company has and continues to have a “pivotal role” in commerce transformation. Thus, the payment giant made a bet on NFTs because they consider these assets to “represent the intersection of culture and commerce”.　　Therefore, the company expects NFTs, such as the Ethereum based CryptoPunks, to gain more relevance in the social media, online retail, and entertainment sector. Sheffield said:　　Over the past year, we‘ve built a lot of momentum in bridging the crypto ecosystem and Visa’s global network of 70M+ merchants and we are excited to

2021-08-24Deep Dive

Digital Assets Regulations: Does the CFTC Have Broad Enforcement Authority over Crypto Derivatives?

As it relates to regulating the digital currency ecosystem, the conflicting position of the Securities and Exchange Commission (SEC), the Financial Crimes Enforcement Network (FINCEN), and the Commodity Futures Trading Commission (CFTC) have often confused crypto stakeholders. Drawing on its core roles, CFTC Commissioner Dawn D. Stump has issued a set of guidelines targeted at making the public understand the aspects of crypto that the commission regulates.　　According to her, the CFTC does not regulate commodities irrespective of the forms in which they take such as cash, cattle, gas or digital currencies. However, the agency has a sweeping authority to regulate futures contracts and all forms of derivatives products on each of these commodities.　　“The CFTC does regulate derivatives on digital assets, just like it regulates other derivatives. That includes the regulation of trading, clearing, etc., of futures contracts and swaps on digital assets (such as the futures contracts on Bitcoin and Ether listed for trading on various CFTC-regulated exchanges),” the commissioner said.　　Regulations on Securities and Enforcement Actions　　According to Stump, the agency does not also interfere with assets that have been classified as securities – these she said fall under the jurisdiction of the SEC. Just like commodities, derivatives or futures trading

2021-08-24Deep Dive

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