Kimchi Premium Turns into A Discount, Binance Removes Korean Won Trading Pairs & Trading Options

The good thing is that spikes in Kimchi premium are the ones that mark the market top. As for Binance, it just wants to “proactively comply with local regulations.”

Kimchi premium, which reached above 18% at one point in April, has now gone down to sub-zero.

Kimchi premium is the gap in the prices of crypto on South Korean exchanges compared to other exchanges globally. As of writing, Bitcoin is trading at $46,316 on Coinbase but $46,003 on the biggest South Korean exchange Upbit, as per Coinmarketcap. The same is the case for Ether, which as of writing, is at roughly $3,209 on Upbit while trading at just above $3,230 on Coinbase.

Currently, the Korean premium has turned into a discount, running in the -0.5-1.5% range.

Interestingly, much like always, while investors on other exchanges are interested in top assets like Ethereum (ETH), Bitcoin (BTC), Cardano (ADA), Polygon (MATIC), and Dogecoin (DOGE), in this order, for example on Coinbase, Upbit users are busy buying Axie Infinity (AXS), Dogecoin, XRP, Cardano, Bitcoin, Ethereum Classic (ETC), Ethereum, and BitTorrent (BTT), in this order.

Back in June, when the crypto market experienced a drawdown from its all-time highs, the premium started going down to zero. While the rest of the market was making moves to buy the bottom, it looked like the Koreans were busy selling their crypto assets.

Spikes in the Korean premium have actually marked the end of the bull runs, historically, which peaked at 47% in January 2018 and 63% in May 2017.

So, this Kimchi discount can be seen as a positive sign for the crypto market trend.

Binance Being Proactive

Amidst this, the leading cryptocurrency exchange Binance announced on Friday that it would remove Korean Won (KRW) trading pairs and discontinue Korean language support, effective immediately.

The exchange also discontinued P2P merchant application “to proactively comply with local regulations,” it said.

Binance P2P will remove KRW trading pairs on August 13 at 11:00 UTC (20:00 UTC+9), and users are advised to complete all the related trades and remove related trade advertisements to avoid potential trading disputes.

Back in December 2020, the exchange closed its South Korean affiliate citing low usage and volume.

“Binance welcomes developments to our industry’s regulatory framework as they pose opportunities for the market players to have greater collaboration with the regulators. We are committed to working constructively in policy-making that seeks to benefit every user,” said the exchange.

South Korean financial watchdogs, however, haven’t issued warnings or notices against Bitcoin operating in the country, unlike many countries around the globe. The country’s Financial Intelligence actually told foreign exchange last month that they until the end of September to register in line with new anti-money laundering (AML) rules.

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Author: AnTy

It’s Not About Taxes, Congress is Coming After the Entire US Crypto Industry

The unreleased infrastructure bill is the talk of the crypto town, and for a good reason, as it aims to generate $28 billion in tax revenue from the current $1.67 trillion cryptocurrency industry to help fund the nearly $1 trillion bill.

The bipartisan Senate proposal aims to amp up IRS surveillance over cryptocurrency transactions. The bill broadens the Tax Code’s definition of “broker” to cover nearly everyone in crypto, including non-custodial actors like miners, forcing them all to KYC users, explained Jake Chervinksy, General Counsel at Compound Finance. Adam Cochran of Cinneamhain Ventures commented,

“Politicians need to stop taking the paternalistic approach of trying to ban all risks and invest in the underlying problems that make people disproportionately abuse those risks.”

The definition of a “broker” is expanded in the bill to include “any person who (for consideration) is responsible for and regularly provides any service effectuating transfers of digital assets.”

Earlier drafts even covered non-custodians, including PoW miners & PoS validators. They explicitly included DEX & P2P markets covering DEX LPs, liquidators, protocol governors, and maybe even node operators or wallet developers.

The tax code requires brokers to comply with IRS reporting requirements, as per which they have to give Form 1099s to their customers & file them with the agency. To fill the form, brokers have to collect customer data, including name, address, phone number, and other information.

“As those who understand crypto already know, users are pseudonymous & access is permissionless,” said Chervinksy.

Non-custodial actors like miners have no way to get the information they need to fill the form, which in practice “could mean a de facto ban on mining in the USA,” he added.

“This sounds insane, but it really might happen. Most crypto legislation goes nowhere, so it’s easy to ignore. Not this time. This provision is part of the bipartisan & otherwise popular infrastructure bill, which is moving quickly through Congress & is highly likely to pass,” Chervinksy wrote.

He further explains that the bill can raise revenue by adding new taxes or making people pay taxes they owe, and Congress thinks crypto is all tax evaders.

“This is no way to handle major new regulations,” said Chervinsky, noting that it would either kill the crypto industry, and the policy may end up a substantial foreign policy failure as China did by cracking down on crypto mining and ended up forcing the miners out of the country.

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“The crypto provisions in the new US infrastructure bill are a disaster,” said Avichal Garg of Electric Capital. According to him, this bill would result in the departure of crypto companies from the US en masse. Garg added,

“You can’t KYC autonomous code that lives in the cloud that happens to custody crypto. The right strategy is to KYC at the fiat off ramps.”

So, what could a crypto user do here? With the provision not final yet, US citizens can reach out to their Members of Congress.

Crypto supporter Representative Warren Davidson (R-OH) also came against this bill, saying it is a departure from America’s role as someone that spearheads innovation.

“America led in the Industrial Revolution, the advent of the automobile, and the development of the internet,” Davidson said in an interview, “and now America is about to forfeit that leadership with this new technology.”

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A petition to “Stop the Senate from sneaking through total surveillance of the crypto-economy” has already been started. Chervinksy said,

“Things are moving fast, which can feel scary. But as it was with FinCEN’s proposed rule, it’s been amazing to see the entire industry come together this week to fight against this. We really do have some of the best & brightest on our side.”

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Author: AnTy

Bitcoin and Gold “Inversely Correlated,” One is a Risk Asset and Other Safe Asset: BofA Head

According to Francisco Blanch, bitcoin is good for “creating a new ecosystem of value transfer” and a new economic organization based on the stakeholder economy as opposed to the current shareholder economy.

For the last few months, Bitcoin price has been moving in the opposite direction of gold as people turn to digital gold as a store of value rather than the traditional safe-haven asset.

But to Francisco Blanch, head of global commodities and derivatives research at Bank of America Securities, Bitcoin is more of a risk-on asset.

Back in March, Blanch argued that Bitcoin had serious environmental issues and that it was completely uncorrelated to the asset classes.

But it “became more of a risk asset in the past twelve months,” which was “highly correlated to equities to Mexican peso to copper,” he said.

Meanwhile, gold as a safe asset is typically correlated to 10-year Treasuries and the Japanese yen.

So, when it comes to whether bitcoin and gold are linked, “in a way they are because one is a risk asset and the other is a safe asset,” said Blanch in an interview with Bloomberg, adding, they have very different characteristics.

According to him, “gold’s been a safe asset for a very very long period of time” as such, he’s pretty confident that precious metal stays that way while bitcoin can keep on changing, “but for now, they’re inversely correlated, quite inversely correlated.”

Bitcoin Is A Better Version

Meanwhile, Michael Novogratz, founder, CEO, and chairman at Galaxy Digital, continues to see the leading cryptocurrency as a better bet than the bullion.

With central banks all over the world printing more and more money, Novogratz said one needs to be long hard assets which are real estate, gold, stocks, and crypto. In a separate Bloomberg interview, he said,

“So, I look at bitcoin in particular as digital gold, and so if you’re going to be long gold, bitcoin is a better version because it’s got the same macro tailwinds, but it’s also very early in the adoption curve.”

While people were scared of bitcoin a few years ago, now from hedge funds to real money managers and insurance companies, they all are ok with it.

“So you’re playing an adoption game, and you’re playing a macro game. And so I’m still a big buyer of Bitcoin.”

Meanwhile, according to Blanch, what bitcoin is good for is “creating a new ecosystem of value transfer.” As opposed to the shareholder economy that we have today, it is creating a new economic organization based on the stakeholder economy, he added.

Bitcoin is the base on which all the other coins are built, and that’s what is ultimately going to shape up — basically, communities of people that transfer value using these cryptocurrencies, said Blanch.

“This is why the IRS is so interested in taxing this because they realize there is a lot of economic activity, real economic activity, not just criminal gangs.”

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Author: AnTy

“The Timing is Never Good,” says Billionaire Steve Cohen as He Goes Full Crypto

“The Timing is Never Good,” says Billionaire Steve Cohen as He Goes Full Crypto

Billionaire Steve Cohen has gone full crypto because he doesn’t want to miss the boat.

In an interview with Jawad Mian, Founder of Stray Reflections, Cohen talked about being fully converted to Bitcoin and crypto.

“I’m fully converted to crypto. You have to pay to learn; there’s no way around it. You can talk all you want, but you’ve got to get in the game.”

“The timing is never good…. I’m not going to miss this. I missed the first part, but I still feel like I’m early,” said the chairman and CEO of Point 72 Asset Management.

While he may look “foolish initially,” it’s all about learning the game, and “when you’re confident, take it to the next level,” he added.

Cohen isn’t concerned about the price, which has recently crashed in a deep market-wide sell-off.

“Who knows if it’s going to go up? I don’t care about the bitcoin price. I care more about blockchain technology and how disruptive it could be. The way those markets are developing could be a real interesting adjacency to what we do.”

During his interview, Cohen shared further insights and on some of the biggest issues in trading; he named liquidity, too much leverage, and too much concentration.

Back in May, there were reports that the company Point72 is planning to make a major entrance into the crypto market. While planning to “get big in crypto,” the firm started hiring people for the same.

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Author: AnTy

A Net Inflow of $93 Million Pushes the Price of Bitcoin 1% Says Bank of America Report

“No good reason” to own Bitcoin except wealth preference, says bank’s report on cryptocurrency filled with bad takes.

There is no limit to bad takes on cryptocurrencies, especially from the mainstream financial service providers. And this week, the crypto market experienced a few.

To start with, Europe’s top markets regulator warned investors of “significant risks” involved in investing in crypto. Using its twice-yearly report on Wednesday, the European Securities and Markets Authority cautioned that “crypto-assets are highly risky and speculative” and that “consumers must be alert to the high risks of buying and/or holding these instruments, including the possibility of losing all their money.”

This week, Bank of America also released its research note, calling Bitcoin “exceptionally volatile” that makes it “impractical” as a store of wealth or payment mechanism.

As a matter of fact, according to the bank’s analysts, there’s “no good reason to own bitcoin unless you see prices going up.” So, according to them, if you prefer wealth, then do invest.

“The main portfolio argument for holding bitcoin is not diversification, stable returns, or inflation protection, but rather sheer price appreciation, a factor that depends on bitcoin demand outpacing supply,” the note said.

The report clung to bitcoin’s anonymity utilized by terrorists and its environmental impact, saying Bitcoin’s network emits about 60 million tons of CO2 per year, apparently the same as Greece.

The bank failed to make an effort to even understand the data, saying 95% of supply is controlled by the top 2.4% of addresses, which isn’t true, and compared it with the top 1% of Americans controlling 30.4% of the nation’s household wealth.

While Morgan Stanley, JPMorgan, BNY Mellon, Goldman Sachs, and others are working on their crypto strategy, Bank of America is busy with its report titled “Bitcoin’s Dirty Little Secrets.”

While talking about the leading cryptocurrency being correlated to risk assets and not at all tied to inflation, it says Bitcoin is “sensitive” to increased dollar demand.

The report further argues that “a net inflow into Bitcoin of $93 mn may result in a 1% price rise, while the analogue for gold is more than 20 times higher.”

Well, it has been just this year that, just over a decade old, Bitcoin became a trillion-dollar crypto asset, up more than 14x from March 2020 low and 2x from its last bull run ATH. As of writing, BTC/USD is trading just under $58,000, down 6.4% from its $62k peak from this past weekend.

As for the precious metal, the hundreds of years old bullion has a $10 trillion market whose spot price is $1,725 per ounce, 12% down from its $2,075 ATH in August, beating the August 2011 high of $1,920, a mere 8% outperformance.

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Author: AnTy

Rising Treasury Yields are a Danger to Bitcoin & They Are Soaring Right Now

The ongoing yield debacle is not good for risky assets and gold, and the leading digital currency is still struggling to recover from the losses.

Risky assets are back on the incline as Treasury yields ease off after hitting multi-year highs on Thursday. Also, the Federal Reserve Chairman calmed the nerves by committing to keeping the interest rates low and that it will continue to pump money into the economy.

In the early hours of Thursday, 10-Treasury yields jumped to 1.427%, last seen in March 2020, but ended the day lower at 1.3740%. Yields on 30-year Treasury soared to 2.888%, Dec. 2019 high to end lower at 2.226%. Bond prices and yields have an inverse relationship.

Today, they both are back on the rise by about 0.059%.

“Bonds puking, again… Need this to stop going down (i.e., rates going up) to have nice things,” said trader and economist Alex Kruger.

The 30-year German yield has also turned positive, rising to 0.2% from -0.2% in three short months. German 10-year yields are still negative though at -0.3%.

This spooked the central bank, and now “the ECB is closely monitoring the evolution of longer-term nominal bond yields,” said European Central Bank President Christine Lagarde this week.

Fed, however, is not that concerned when asked about the rise in yields; Jerome Powell said, “It’s a statement of confidence on the part of markets that we will have a robust and complete recovery.”

Rates going up is negative for stock valuations, particularly tech, and assets that benefited from negative real yields the most, gold and bitcoin, Kruger said,

“The thesis is the Fed will intervene to bring rates down.”

“If that trend is not stopped hold on to your horses because risk assets, gold and highly likely bitcoin as well are all in for a very rough ride down. You want to watch interest rates like a hawk.”

Risk On or Off?

This fall in yields, meanwhile, has sparked a rally in stocks. S&P 500 is yet again reaching its peak at nearly 3,935 from Feb. 12.

Tech-heavy Nasdaq, which slid 5.6% this week, is back at 13,600, still in need of a pump to hit its 14,095 all-time high from Feb. 12.

“In institutional circles, corporate treasuries are often looked down on as dumb money,” notes Kruger.

While stocks are clearly enjoying this fall in Treasury yields, the same is not the case for the traditional safe-haven asset.

Gold is not having a good week, and today the spot gold went under $1,790 per ounce. The precious metal is on a downtrend ever since it hit a new high in August at about $2,075.

The US dollar is also not enjoying the increase in yields and is back under 90, aiming to go for fresh multi-year lows at 89.2 in early January.

Coming to digital gold, Bitcoin had a brutal week, losing 23% of its value with a drop under $45k. For now, the market struggles to recover completely despite the price of Bitcoin going above $50,000. Trader Cantering Clark said,

“Rates are rising. Risk-on assets don’t really benefit in that situation. All assets would get hurt with a rapid rise. Saylor purchase and Tether news came out, and we don’t have a very obvious response. Would not get overly bullish.”

However, according to him, this is all just short-term as “Bitcoin has already cleared the runway and is now on its way to further appreciation and adoption.”

Alex Kruger is of a similar opinion as he notes that there’s a chance Bitcoin will do its thing as “institutional penetration remains very low.” This means the institutional inflow may continue, and retail will be busy stacking regardless. Also, corporates may join in and “be more focused on inflation or digitalization than rates.”

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Author: AnTy

Nvidia Looks to Fire Up Its Crypto Mining GPU Production; If Demand is Good Enough

Nvidia Looks to Fire Up Its Crypto Mining GPU Production; If Demand is Good Enough

While known for its prowess in the gaming industry for its powerful line of graphics cards, the Chipmaking powerhouse Nvidia has hinted at a possible restart in the production of Graphics Processing Units (GPUs) specifically for cryptocurrency miners.

During her time attending an event on Jan. 12, Nvidia Chief Financial Officer Colette Kress alluded to the company’s continued interest in providing its famous line of CMPs for the crypto mining community – providing the market picks up to what she refers to as a “meaningful level.”

CMPs, in contrast to GPUs, are effectively the same kind of graphics card. By removing certain features from GPUs – such as video outputs – CMPs could be manufactured at a reduced cost and on a larger scale for the crypto mining community.

While Kress’s comments have picked up considerable traction among crypto mining circles, the entire prospect hinges on a very sizeable ‘but.’ Of course, that is the possibility that the crypto mining market proves a lucrative one for Nvidia; something that Kress doesn’t hold much hope for. During the event, Kress added that “we don’t believe [mining demand is] a big part of our business today.”

To put this response into context, Kress referred to Nvidia’s RTX 30-Series of GPUs and how many interested parties may also be in the mining community. However, that isn’t to say that there is no market for them, especially when considering Ether miners. For example, an RBC analyst found that $175m in GPU sales came from Ether miners, more than $25m above what Nvidia speculated.

Miners of Ethereum appear to be a more lucrative consumer-base of Nvidia’s GPUs, as they rely upon more than ASIC-using Bitcoin miners.

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Author: James Fox

Janet Yellen and the Fed Will Continue to Push Bitcoin to New Highs in the Next 5 Years

US Treasury Secretary Steven Mnuchin hasn’t been really good for cryptocurrencies. As we reported, the Treasury said in a statement on Monday, “There is strong support across the G7 on the need to regulate digital currencies.”

The G7 finance officials discussed the responses to the evolving landscape of cryptocurrencies to prevent their use for “malign purposes and illicit activities,” Treasury said.

Just last month, Coinbase CEO Brian Armstrong said that Mnuchin is planning to “rush out some new regulation regarding self-hosted crypto wallets before the end of his term,” although exchange’s former employer Brian Brooks, the acting Comptroller of the Currency, said there is no plan on killing cryptos.

However, Munchin hasn’t much time left in his term with Janet Yellen chosen as the new Treasury Secretary by President-elect Joe Biden.

Yellen’s views on crypto aren’t positive; she has called Bitcoin a “highly speculative asset” in the past and expressed concerns about its volatility when she should have shown more concern about the decreasing value of the US dollar.

However, Yellen won’t be bearish for Bitcoin price rather the opposite, wrote Alex Mashinsky, founder & CEO of Celsius Network, in an article on Monday.

According to him, Yellen’s track record as an economist and a civil servant is unimpeachable, but her ability to manage the current economic crisis and mounting debt is something to be worried about.

MMT FIAT maximalists in the House

Coming from a long line of Keynesian believers in MMT, Yellen advocates for creating endless amounts for fiat to grow the economy, said Mashinksy.

The Fed has already been printing money like crazy, with over 20% of dollar supply created in 2020 alone.

“Joe Biden along with Janet Yellen and J-Pow are gonna drive the Dollar into the ground,” said analyst Mati Greenspan.

Mashinksy argues that MMT is a dangerous ideology that injects boatloads of cash into the market, pushing the asset prices up, which only benefits large corporations and billionaires.

Although Yellen’s appointment can lead to Bitcoin restrictions and regulating DeFi but the fact that Yellen and Biden Administration need to ensure that the US Dollar remains the reserve currency, it would involve “funding new businesses and technologies in future industries such as Blockchain, Machine Learning, and AI.”

Mashinsky said it is “overdue” for the Fed and Treasury to give up their old ways and start taking advantage of crypto.

“The FED and the White House will be filled with Keynesian MMT FIAT maximalists in 2021. This guarantees that Bitcoin continues to hit new highs during the 2021–2025,” he wrote.

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Author: AnTy

YFI Continues to Tank, Wiping Out All the Gains It Made Since August

YFI is not having a good day.

As a matter of fact, the popular DeFi token didn’t have a good week or month either.

Falling out of the top 50 coins, YFI is currently trading around $8,500 down 12.50%, slightly up after falling under $8,445 today.

In the past seven days, YFI has actually been the biggest loser among the DeFi tokens with 32% losses. Meanwhile, in the past 30 days, YF’s price went down 55%.

“YFI is the worst performing coin of the last 7 days among the top 100 coins. That’s quite an achievement,” commented trader Alex Kruger on this downslide.

YFI is the same coin that leveled the price of Bitcoin in mid-August only to hit $20,000 before BTC, which is currently under $14,000.

This is the same coin that surged past $44,000 in mid-September to its all-time high, and since then, it has only been going down.

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Some are still calling for more pain ahead for this DeFi darling, with one trader saying “capitulation around the corner,” targeting $7,500.

When it comes to the Yearn.Finance protocol, the amount of funds locked in it is also on a decline, which started around the same time the price of the token started crashing.

From about $952 million on Sept. 1st, the TVL in Yearn.Finance went down to almost $330 million on Oct. 28. Currently, it is trying to make it back to $400 million, as per DeFi Pulse.

The amount of Ether locked in the project has also fallen to a mere 55.4k ETH from over 323k in early Sept. besides 51 million DAI and less than 2 BTC.

Amidst this, today, its team announced the integration of Yearn yVaults into Frontier’s interface, which means “users can now seamlessly Track and Manage their vault positions with Frontier Mobile interface.”

Meanwhile, the project creator Andre Cronje is busy with the latest project, Keep3r Network, whose token KP3R is currently trading around $130, down 27% in the past 24 hours. The token hit its ATH the day after its launch at $366.

After all, last month, he had explained that Yearn is more than just him. The project now has its own team, which is “far more skilled and capable than I am,” he had said.

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Author: AnTy