Binance Bitcoin Futures Skyrockets to $48,000 in a Monster Wick

OI on Binance BTC futures is currently at 78.89k BTC, down from 101.37k BTC from last week, while being the only exchange to have a negative change in ETH futures’ OI in the past 24 hours but still sitting at the highest 627k ETH.

The textbook short squeeze that took place this weekend saw the price of bitcoin going as high as $48,000 on the leading cryptocurrency exchange.

On other crypto exchanges, this short squeeze sent the price of bitcoin to nearly $40,000 and Ether to almost $2,400, with Binance an anomaly.

On Binance itself, while Bitcoin wicked to about $39,800 on spot and on futures, it went as high as $48,168. In response, Binance has reportedly said that “API user place wrong orders, the liquidation price is the marked price, the extreme price will be automatically removed, and the user will not be affected.”

In the past 24 hours, more than 100,000 traders were liquidated for about $1.14 billion, with nearly $950 million being the short positions.

Bybit accounted for a majority of these liquidations at about $440 million, followed by OKEx and Huobi for just under $220 million, according to Bybt.

Binance, meanwhile, is accounting for a mere 11.4% of these liquidations at $129.5 million. However, the leading crypto exchange has stopped showing accurate liquidation for some time now, and these figures are expected to be much higher. Previously, Binance used to lead the market in liquidations.

This can be seen in the second-biggest drop of over 12% in OI on Binance’s Bitcoin futures in the past 24 hours.

Currently, at 78.89k BTC, it is down from 101.37k BTC on June 20, which was an increase of 78% in nearly a month as new short positions were opened. Still, it is the highest OI, accounting for 22.7% of the total BTC futures open interest.

“Binance straight up under-reports liq data, but OI down by ~12k BTC following that move and net buying on that 1m candle was ~12k BTC. Good ol cascade,” commented trader Hsaka. “Around ~$600m of forced buying in under 60 seconds.”

When it comes to Ether futures, only Binance has a negative change of 4.45% in the past 24 hours, now sitting at the highest 627k ETH while others had an increase in OI.

Amidst all this, Binance CEO Changpeng Zhao announced that they have started limiting new users to a maximum of 20x leverage a week ago on Monday.

“In the interest of Consumer Protection, we will apply this to existing users progressively over the next few weeks,” he added.

Meanwhile, several hedge funds have curbed their trading on Binance as the regulatory crackdown on it intensifies, the Financial Times reported.

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Author: AnTy

BUNNY Down Over 97% from its April Peak, Project Enhances Security Protocol After the 2nd Exploit

BUNNY Down Over 97% from its April Peak, Project Enhances Security Protocol After the 2nd Exploit

PancakeBunny, BSC-based decentralized finance (DeFi) yield farming aggregator and optimizer, has been hacked yet again.

Two months ago, PancakeBunny got rekt on Binance Smart Chain, and this time, the same happened on Ethereum sidechain Polygon. In May’s flash loan attack, $45 million was lost; this time, only $2.5 million was lost.

There has been growing speculation that it could be an inside job while the team assures a plan to compensate the victims.

For now, the total value locked (TVL) in the project is at $602 million, up from $593.65 million last week after the hack.

According to Defi Llama, in early May, the project boasted a whopping $7.54 billion in TVL.

The “economic exploit” occurred on July 16, resulting in the minting of 2.1 million polyBUNNY leading to a drop in its price.

As of writing, BUNNY is trading $14.64, down 21% in the past week and more than 97% from its all-time high of $512.75 three months back, as per CoinGecko.

According to the post-mortem, the attacker made a small deposit in one of the Bunny Vaults and, at the same time, made a considerable deposit directly to MiniChefV2 (SushiSwap). They then called for the function “withdrawAll” to execute the attack with the amount deposited in the MiniChefV2 as interest.

The same week, the same exploit occurred on PancakeBuny fork, ApeRocketFi, which lost $260k on BSC and $1 million on Polygon.

Now, the PancakeBunny team has ensured that they are “directly compensating everyone who possessed polyBUNNY at the time of the exploit in the amount of $2.4M.”

Those who held polyBUNNY, including polyBUNNY-ETH and polyBUNNY-QUICK at the time of the exploit, are eligible for compensation in the form of MND tokens from the Team’s share of MND.

MND is the fixed-volume utility token associated with the Mound (MND) Vault to which the Bunny Community has contributed nearly 2 million BUNNY. The Team has/will contribute(d) 1 million BUNNY, 1 million polyBUNNY, 100 million QBT, a portion of all future project tokens, and a share of all future fees from fee-based products. It said,

“The final price of MND will be set at the close of the Community commitment period in a little over 1 week and will be determined by the total value of the assets committed to the Mound (MND) Vault.”

In light of the recent exploit, the team has also revised its protocols to maximize security for the launch of new products with lending platform Qubit to be the first product to launch under this enhanced security protocol.

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Author: AnTy

Bitcoin Mining Difficulty Sees 4th Downward Adjustment in a Row; Also Occured At the End 2018 Bear Market

After the latest negative adjustment, the difficulty is now down 45.6% from ATH, and the market is getting the “same vibes” as of December 2018. Meanwhile, the record downward adjustment of 11 times in a row was in 2011, which was a 51.4% drop.

This past weekend, Bitcoin mining difficulty had yet another downward adjustment of just under 5% to 13.673 trillion, last seen in early January 2020, following the most significant drop in Bitcoin’s history two weeks ago.

At the end of May, the mining difficulty was at its all-time high of just above 25 trillion. Since then, four downward adjustments have been recorded in a row, representing a drop of 45.6% due to a decline in hash rate caused by China’s crackdown on cryptocurrency mining.

These downward adjustments in difficulty are helping the hash rate recover from its 68 Th/s low at the end of June to now around 100 Th/s, with Viabtc, Antpool, Poolin, F2pool, and Btc.com being the top mining pools accounting for 59.4% of global hash rate followed by Binance, Foundry, and Slushpool which has captured nearly 22% hash power.

Bitcoin hash rate surged to its peak at 197.6 TH/s in mid-May after miners increased the overall hash power to capitalize on the booming market. Though orders for the new ASIC machines soared at the time, the total capacity was not installed due to supply chain disruption and semiconductor shortage.

“The hash rate about doubled in the past year. But if all the machines on order had been installed, it would have gone up a lot more,” said Alex de Vries of Digiconomist, which tracks Bitcoin’s energy usage.

“Same vibes” as of December 2018

The downward adjustment in difficulty made a record drop in 2011 between August to November when it dropped 11 times in a row. At the time, the fall was 51.4%.

Back in 2018, at the end of the bear market, we recorded four consecutive difficulty drops between October and December; during this time, the BTC price found its bottom. At the time, the drop was only 31% to a six-month low.

Price-wise, trader Loomdart of eGirl Capital is also getting the “same vibes” as of December 2018.

BitcoinMiningDifficulty

The drop in difficulty means mining Bitcoin has become much more manageable. Mining Bitcoin has already been profitable and became more of a windfall for miners in the US, Canada, and Russia after China’s crackdown.

These Chinese are now moving to other parts of the world where production is more active such as Kazakhstan, Russia, Malaysia, and Texas, and Tennessee in the US.

“At $28,000 per coin, electrical usage could rise by 30% above the level before China shut down, and the miners would still make good money,” said de Vries. “If it goes back to $65,000, the miners would double their power usage from before China unplugged.”

Bitcoin mining operations like Bitfarms in Quebec are particularly enjoying the abrupt shutdown in Chinese mining operations. The BTC price above $31k and hash rate needed to capture/mine new coins down by 51% from two months back.

According to Bitfarms’ public disclosures, its “mining costs” per BTC in Q1 2021, consisting of the cost of supplies, labor, and electricity, was $8,500. It mined 598 BTC in Q1, amassing $28 million with the production cost of just $6 million.

“On July 3, the Bitcoin network experienced the largest difficulty drop in history due to recent macro developments in China. This has resulted in Bitfarms producing significantly higher quantities of Bitcoin at a lower cost per Bitcoin.” founder and CEO Emiliano Grodzki explained in the company’s production-update report. “Bitfarms has nearly doubled its market share,” he added.

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Author: AnTy

Bitcoin Unaffected by Macro, is Driven by Idiosyncratic Variables But Still Facing A Major Headwind

Crypto assets are in the red this week.

Bitcoin price keeps down around $31,500, and in tandem, Ether has fallen under $1,900. Altcoins are getting hammered except for selective ones like Axie Infinity, with the total market cap now at $1.35 trillion, down 48.5% from the mid-May peak. ETH -3.92% Ethereum / USD ETHUSD $ 1,916.60
-$75.13-3.92%
Volume 15.72 b Change -$75.13 Open $1,916.60 Circulating 116.71 m Market Cap 223.68 b
8 h SEC Extends Decision On WisdomTree’s Bitcoin ETF Application 9 h Bitcoin Unaffected by Macro, is Driven by Idiosyncratic Variables But Still Facing A Major Headwind 9 h Solana Based Crypto Wallet Phantom Raises $9M to Scale Operations
AXS 2.74% Axie Infinity / USD AXSUSD $ 23.96
$0.662.74%
Volume 2.07 b Change $0.66 Open $23.96 Circulating 60.91 m Market Cap 1.46 b
9 h Bitcoin Unaffected by Macro, is Driven by Idiosyncratic Variables But Still Facing A Major Headwind 2 d SLP Farming Is Turning Out to Be Very Lucrative, While Axie Infinity (AXS) Has the Lowest P/E Ratio 3 d KuCoin (KCS) Rallies as Degens Turn to KuCoin Community Chain (KCC)

Meanwhile, the stock market is keeping around its all-time highs hit just this week. The US dollar shows strength around 92.55, with gold recording some gains at $1,825.

The latest price action in the stock market is after Federal Reserve Chairman Jerome Powell’s comments on inflation to remain high for some time and assuring that tapering is not coming just yet.

While Bitcoin sometimes responds to macro events like the last FOMC meeting and the latest CPI data, which showed the highest inflation in 13-years, it does so on rare occasions.

image1

The leading cryptocurrency remains an uncorrelated asset, for the most part. For Bitcoin, the dominant factor contributing to risk measures, basically the percentage of volatility due to factor exposure, is “residual.”

This means the cryptocurrency is mainly driven by bitcoin-specific (i.e., idiosyncratic) variables. And for Bitcoin, these idiosyncratic drivers have been money flows lately.

“Equities, rates, inflation, gold, the dollar, these all matter as everything is interconnected, yet most of the time are of secondary importance when it comes to BTC,” said trader and economist Alex Kruger. “Don’t need to have an explanation for every time the price goes up or down.”

This week, the data showed that the price of food, energy, travel and primarily used cars increased dramatically, the most since 2008, which makes sense given that the costs of these things also fell sharply when the lockdowns were implemented last year.

A significant increase in the prices of everyday items makes crypto assets more attractive as in the past year, compared to other investments, crypto has provided much higher returns and more money to spend.

“When it comes down to inflation, most of it is, in fact, transitory,” Kruger noted.

“Inflation is a rate of change. Prices are supposed to increase in aggregate. Price increases are indeed not transitory. High inflation likely is” because central banks’ reserves creation is slowing down, supply-side bottlenecks are temporary, the population is aging, household savings will mean revert leading to fewer dollars to spend, and employers will hire less than before due to limited wage pressures, he added.

In a fireside chat, American economist Ben Bernanke said that the central bank wants to see some modest inflation. The Fed’s target inflation rate is 2%.

According to him, the Fed will be successful in getting it in low 2% for a time before getting it down to 2.0% while noting that in the 1990s, inflation averaged 3% over that whole decade.

Persistent 3% inflation, however, would produce anxiety this time as it would question credibility, given the 2% target, according to him.

Bernanke, who served two terms as the Federal Reserve Chairman from 2006 to 2014, believes the tapering of the current $120 billion per month bonds buying will be a year-long process, $10 billion per meeting was how it was down in 2013. An increase in its rate won’t happen until the end of tapering, which pushes into 2023.

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Author: AnTy

Bitcoin Block Time Soars to Highest Level Since 2010 After Hash Rate Crashes to 2-Year Low

Bitcoin hash rate has taken a drop and is now down about 70% from its all-time high in mid-May. With this latest drop, the hash rate has fallen to a two-year low last seen in July 2019.

However, it’s just a short-term block-interval inferred hash rate, and the actual drop is about 47%.

Still, this drop resulted in an average block time of more than 23 minutes, up from the regular 10 minutes, to mine a single bitcoin block, “the largest daily mean block interval since the very early Bitcoin days,” in 2010, noted Glassnode.

Only 58 Bitcoin blocks were mined throughout Sunday, representing a drop of 60% from the baseline of 144 blocks per day.

This, of course, led to daily bitcoin miner revenue falling 80% from $70 million in May to about $12.8 million yesterday. Miners were earning the same level of revenue in early November when the price of bitcoin was around $13,000.

The largest drop in hash rate is causing a significant decline in Bitcoin network activity, with the number of active addresses also falling off a cliff, reaching levels not seen since early 2019.

Even fee is extremely low, with average fees now 0.00021 BTC ($7.12), down from over $62 in late April, and able to keep stable during this whole ordeal.

As a result, the difficulty is expected to have a negative adjustment, which reached an all-time high on May 13 and has seen two downward adjustments since.

While one wants a quick difficulty adjustment after such a harsh drop in hash rate, the fact is when the hash rate drops a lot, blocks take longer to mine, so difficulty adjustment takes longer to come.

Adjustments are supposed to happen every 14 days, but the last adjustment was 16 days ago, and there are still 453 blocks to go. The difficulty adjustment is expected to be the largest downward ever, which should lower the block times.

This drop follows China’s crackdown on cryptocurrency mining. Such a big drop means China might have gone “almost entirely off grid already.” As we reported, Chinese miners are moving overseas, but this definitely provides a great opportunity for those with access to cheap energy.

Even JPMorgan strategies can feel the bullishness of it, saying, “the crackdown on mining operations in China should be considered as positive for bitcoin over the medium term as it accelerates a shift away from China’s high share in bitcoin’s hash rate, reducing concentration.”

While a real annoyance, 60-80% drop is “not fatal,” said Balaji S. Srinivasan, former Coinbase CTO, and General Partner at Andreessen Horowitz.

“In general, the global decentralization of Bitcoin mining shows a way to robustify against the famous Thanksgiving Turkey Chart. Even the Chinese state going after mining (not really a surprise) is only causing a temporary rise in block times. So far, pretty antifragile!”

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Author: AnTy

Bitcoin’s Weekend Weakness: Yields Crash and Go Negative, OI Is Still Halved From Peak

While gold is getting crushed down 8.14% this month while the US dollar has soared to 92.4, aiming for a 2021 high of 93.43.

Right before the weekend, Bitcoin has dropped under $35,000 and is now aiming for $36,000.

Earlier this week, BTC’s price surged above $41,000, an increase of more than 30% from the previous week’s low of $30,000. But before even the week is over, the price has already lost 15.7% of its value.

Ever since the deep sell-off on May 19, the cryptocurrency has been trading sideways and remains in a crab market.

This week’s weakness came after the Federal Reserve started talking about tapering earlier than expected, with two hikes in interest rates coming in by 2023. Central bank turning hawkish has sent the prices in stocks crashing as well along with the yield on 10-year bonds.

The dollar is the only winner as it soared to 92.4, up from 89.5 late last month. 93.43 is greenback’s 2021 high set in late March.

Commodities are also getting crushed, with gold falling to $1,760 per ounce. The bullion is now down 8.14% this month after rallying 14.3% for two months straight in April and May.

For the past few months, we have been seeing the price of gold, the traditional store of value, and digital gold, bitcoin, moving in opposite directions. This actually started towards the end of 2020 when gold funds reported an outflow while the leading cryptocurrency saw increased interest from investors and inflows.

Bitcoin is basically gaining traction as the latest store of value and trying to capture precious metal’s market share.

This week, a German national weekly newspaper described bitcoin as “The Clever Gold.” One of the most popular news sources in the country, Die Zeit, said Bitcoin “is a new political movement of radical decentralization.”

In the meantime, the latest weakness in price has funding rates on Bitcoin perpetual contracts going negative on most of the cryptocurrency exchange with 0.01% the highest.

Back in February, 7-day APY went as high as just over 46% on Binance and above 128% on Bybit. In March, this spike again to 32% and 89% on Binance and Bybit respectively, and then 40.7% and 60.13% in April. As of writing, it is -0.06% on Bybit and -1.04% on Binance.

This is healthy for the market after experiencing high rates and yields for a long time. Spiking yields is actually a sign of lack of money, as they represent an “insane amount of leverage demand,” with billions of dollars sitting in quarterlies with *locked in* high annual rates, explained trade CL of eGirl Capital.

“When the most liquid interest rate market (huobi’s quarterlies) starts moving up aggressively as more open interest rush in, you can tell there’s no more money left on the sidelines because literally no one even had money left to even get the 30% or 40% for free.”

According to CL, Moreover, with yields on centralized exchanges already in negative, soon on-chain yields will be negative too, and “all defi protocol token holders will actually have to pay the protocol every year to continue bag holding their negative revenue bags.”

Meanwhile, open interest in the market has a long way to go, currently at just $12.61 billion, down from a $27.68 billion peak in mid-April. But the good thing is Grayscale Bitcoin Trust unlock is soon coming to an end. Discount on GBTC is currently around 14.44%, recovering from a 21.23% low last month, albeit slowly.

Amidst this, Michael Burry of “the Big Short” fame warned about losses “the size of countries” in the event of crypto and meme-stock declines.

“All hype/speculation is doing is drawing in retail before the mother of all crashes,” Burry wrote in now-deleted tweets.

“When crypto falls from trillions, or meme stocks fall from tens of billions, #MainStreet losses will approach the size of countries. History ain’t changed.”

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Author: AnTy

Chinese Bitcoin Mining Hub Sichuan Shutting Down Over Two Dozen Operators

Chinese Bitcoin Mining Hub Sichuan Shutting Down Over Two Dozen Operators

While good for the decentralization of bitcoin mining, China shutting down bitcoin mining operations is “not healthy” for the cryptocurrency because it lowers the historic price floor for BTC.

Amidst the ongoing crackdown on crypto trading and mining in China, Bitcoin mining in Sichuan is being shut down.

One after another, mining operations in Sichuan are shutting down due to regulatory pressure, with some miners expecting restrictive policies to be introduced soon, as per local publication Wu Blockchain.

The Sichuan Energy Bureau and the Sichuan Development and Reformation Commission jointly issued a document on Friday to state-owned power generators and distributors ordering them to close down local bitcoin miners.

This measure is expected to impact about 26 mining operators directly.

“What’s messed up is many of the 26 embraced the reg in 2020. Filed their names, paid fees, and allowed to operate in gov-sanctioned hydro consumption parks. Now they get thrown under the bus, while many smaller farms may actually get away by staying under the radar,” said journalist Wolfie Zhao.

In China, Sichuan accounts for the second-largest Bitcoin hash rate share at 9.66%, as of April 2020, after Xinjinag’s 35.76%, according to CBECI.

So far, this has resulted in a decline of 7% in the Ethereum hash rate, while Bitcoin’s hash rate is temporarily not reflecting the effect.

Interestingly, the province is China’s biggest producer of hydropower and offers cheaper electricity tariffs.

“There is a large amount of abandoned hydropower in Sichuan in summer. If it is not used for bit mining, it can only be wasted. The implementation of this policy is currently uncertain,” noted Wu Blockchain.

Sichuan actually sees a lot of activity during the rainy season, which lasts from May to September. Every year, at the end of the rainy season, miners start migrating to other regions.

So, it is possible, another big bitcoin miner exodus out of China may happen.

“The Chinese crackdown on mining is a tragedy for China, a nuisance for Bitcoin, and a windfall for North American Bitcoin miners,” said Michael Saylor, CEO of MicroStrategy.

Amidst this, Toronto-based Bitfarms is getting listed on Nasdaq to become the largest publicly traded Bitcoin miner in North America using more than 99% hydroelectric renewable electricity.

While good for the decentralization of bitcoin mining, Charles Edwards of Capriole Investments says China mining FUD is not healthy for Bitcoin because

“It lowers the bitcoin electrical cost, the historic price floor for Bitcoin. This is the price Bitcoin almost never goes below, and it’s been falling.”

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Author: AnTy

Cryptocurrency Mining Bill Dies Down After New York Union ‘Opposes’

Cryptocurrency Mining Bill Dies Down After New York Union ‘Opposes’

In its memorandum of opposition, the union said New York “should be embracing” crypto as it is “likely to be adopted” by traditional financial institutions and national governments in the near future.

A bill from New York that would have put a three-year moratorium on cryptocurrency mining in the state has come to its end in the lower house of the US state’s legislature due to the union.

The International Brotherhood of Electrical Workers wrote a memorandum of opposition that argued that the bill unfairly “targets the use of a specific technology.”

While the union “strongly support(s)” the goals of the Climate Leadership and Community Protection Act, the proposed law would prohibit a business simply based on whether it obtains the power from a generator behind the meter or from the grid, they said.

Not to mention, there are already sufficient and rigorous processes in place that are required for the approval of energy generators and centers before their construction, operation, and expansion, it added.

“The bill singles out a specific business model — actually it would stop the operation and expansion of a specific facility — and would allow other very similar models in the game industry to continue.”

The memorandum further states that the bill also “fails to take into account the valid benefits of the technology behind the industry.”

The officials may fail to actually see the benefits the crypto industry provides and the speed at which it is growing, but the construction locals pointed it out to them very clearly.

“While relatively new, cryptocurrency is becoming increasingly mainstream as a payment method and financial investment,” they said while noting that mining centers are the key element of cryptocurrencies’ security.

The union then goes on to point out that the technology here is “likely to be adopted” by traditional financial institutions and even national governments in the near future due to its inherent security.

Instead of singling out and treating one business differently than the others because of their end-user, “New York should be embracing emerging technology” and all the opportunities this new technology brings in terms of jobs and financial security.

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Author: AnTy

The May Crypto Sell-off Predominantly Occurred in the US Session

Bitcoin continues to chop.

Currently, in a ‘crab’ pattern, the price of Bitcoin is constantly going up and down by a few thousand dollars but remains range-bound within $30k-$40k.

Having a drawdown of 50% after rallying 1,610% from March low to mid-April all-time high, the sideways trading is expected to continue for months and trend up if the bull market is intact and down if we are in fact in a bear market.

With new retail, institutions, corporations, and even countries involved in Bitcoin this time, it’s to be seen just how this cycle will play out.

But for now, activity is dying down this month.

May was a record month in terms of many factors, such as volume and fees. But the month ended up wiping out more than a trillion dollars from the market as BTC dropped to $30,000 and $28k on some exchanges. Ether meanwhile ended up falling to $1,725 from the high of $4,375 that occurred just over ten days before. ETH 0.80% Ethereum / USD ETHUSD $ 2,372.48
$18.980.80%
Volume 25.72 b Change $18.98 Open $2,372.48 Circulating 116.27 m Market Cap 275.84 b
11 h The May Crypto Sell-off Predominantly Occurred in the US Session 1 d Best Cryptocurrencies with Growth Potential to Buy In June 1 d Polygon And 0x Team Up to Devote $10.5 Million Into Attracting New Users & Developers

During this May sell-off, the most selling actually occurred during the US session.

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Now, with most of the gains made in 2021 wiped out, people aren’t really getting back into the market yet, which according to some, could be a ‘sell in May and go away’ phenomenon in work.

This has the volume on exchanges dropping substantially in recent weeks. Daily exchange volume (7DMA) has gone down to $41.44 billion on June 12th from the ATH of $89.69 billion on May 26th.

Even the new follower count of big exchanges has been recording a big drop. Trading in NFTs has also come down a lot, but it remains a much bigger space than last year.

Much like the spot market, in the futures market, so far in nearly two weeks, the total volume is $670 billion; last month, the total futures volume reached 2.56 trillion.

At its height in April, the aggregate open interest of Bitcoin futures was $27.68 bln, which fell to May’s highest $20.91 only to drop even further in June, currently at $12.30 bln. Aggregate OI for Ether futures is currently $6.05 bln, down from $11.6 bln last month.

The premium in the futures market has also gone down massively. Funding rates have fallen into the negative territory; just last month, the annualized basis was 40.71%.

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Author: AnTy

“Impossible” to Shut Down: Ark Invest’s CEO Sees Emerging Market Central Banks Accumulating Bitcoin

“Impossible” to Shut Crypto Down: Ark Invest’s Cathie Wood Sees Emerging Market Central Banks Accumulating Bitcoin

She expects regulators to be “more friendly over time” while expanding her focus to include Ethereum and expects central banks to do that with BTC and other currencies.

Cathie Wood of Ark Investment shrugged any worries of harsher regulations as the cryptocurrency is “already on its way, and it’ll be impossible to shut it down.”

In fact, regulators “will be a little more friendly over time” toward cryptocurrencies out of fear of missing out (FOMO) on the innovation provided by the sector, Wood said at the Consensus 2021 conference organized by CoinDesk.

Talking about the environmental concerns, Wood said, “Half of the solution is understanding the problem.”

“This auditing of what miners, certainly in North America, are willing to do around how much of their electricity usage is generated by renewables is going to bring that topic into stark relief, and will encourage an acceleration in the adoption of renewables beyond which otherwise would have taken the place.”

This could also make the solar industry more attractive, she said. Ark doesn’t invest in solar stocks because it isn’t clear if the industry could be profitable in the next five years without subsidies, but “this dynamic might change that. So I’m actually quite excited about it,” Wood added.

Ark Investment Management published a report last month saying Bitcoin mining can drive investment in solar power and make more renewable energy available to the grid.

Expanding the Focus

During the recent sell-off that sent BTC prices crashing just over 53%, as we reported, a record amount of outflows from bitcoin funds were recorded, though it was only 0.2% of the assets under management.

Wood said the focus on green factors likely led to a pause in institutional buying of Bitcoin.

A crypto bull, Wood recently said that she is confident of her Bitcoin price prediction of $500,000.

As we reported, Ark is moving beyond Bitcoin; in the quarter of 2021, Ark bought Grayscale Ethereum Trust (ETHE) shares as well as the second-largest cryptocurrency gaining traction. She is already heavily invested in Coinabase’s COIN shares.

Ark has now hired an Ether miner on its analyst team as part of an expanding focus on cryptocurrencies, said Wood while predicting that deflation will push the value of bitcoin up by putting pressure on the currencies of emerging market countries that are commodity-dependent.

“I wouldn’t be surprised if some of these emerging market central banks start accumulating Bitcoin and other currencies because if they know their currencies are going down … they will be under attack as reserves go down.”

As for the stock market woes, concerns about higher US capital gain taxes are hurting “high-volatility, high-multiple stocks,” she said.

Wood, whose Ark Innovation ETF was the best-performing US equity fund in 2020 for her outsized bets on stocks that thrived during the pandemic, has her flagship fund down nearly 30% from its peak in early February.

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Author: AnTy