Despite ETH Hitting A New ATH, Ethereum’s DeFi Market Share Drops by 30% in the Past Year

Despite ETH Hitting A New ATH, Ethereum’s DeFi Market Share Drops by 30% in the Past Year

The decentralized finance (DeFi) sector has been seeing some price action since last month, but it is extremely slow compared to the rest of the market.

At a $150.5 bln market cap, DeFi has hit the all-time high from mid-May. But DeFi blue-chips like Uniswap, YFI, and Aave are not leading these gains; the likes of Olympus and Spell that are termed DeFi 2.0 are the ones behind the latest interest in DeFi.

However, the total value locked (TVL) in the DeFi is seeing real growth and hitting new ATHs. Today, it reached yet another one at $244.56 billion, according to DeFi Llama.

The most popular layer 1 blockchain Ethereum also hit a new ATH with the value locked at $162.6 bln, up from $75 bln in late May. MakerDAO is currently the dominant project on Ethereum with $16.62 bln of assets.

But it’s not just Ethereum anymore; over the past year, the multi-chain universe has been expanding, and all of these other layer 1 blockchains together account for 34% of the overall DeFi TVL.

These other blockchains also cover Ethereum layer 2 blockchain Arbitrum, which has also amassed $1.96 bln.

When it comes to other layer 1’s, Binance Smart Chain is at the top with $20.62 bln TVL, finally starting to grow this month after four months of sideways action. Just two weeks back, Binance announced a $1 billion incentive program to attract projects and developers back to BSC.

During the May mania, the TVL on BSC hit its peak at $32.6 bln as it offered a cheaper and faster alternative to Ethereum and is now trying to bring back that action.

Solana is another big competitor to Ethereum, which has the backing of FTX CEO and founder Sam Bankman Fried. At $13.53 bln, its TVL continues to hit new highs as it joins the NFT mania, and investors who missed the ETH train see SOL as their opportunity to have a high-performing asset in their long-term portfolio.

The latest stars of the layer 1 world are Terra and Avalanche with $9.97 bln and $8.2 bln in TVL respectively. With cheaper fees, liquidity programs, and burns, these two are currently ruling the layer 1 blockchain competition.

Their tokens LUNA and AVAX are also enjoying this traction, having hit their ATHs in about the last one month at $50 and $80, respectively.

Fantom (FTM) is another popular one at $4.91 bln, while Polygon (MATIC), which was extremely popular between April to July among the newcomers, has since lost its charm and is now at $4.64 bln has less than half of its TVL ATH.

Other notable mentions include Celo with $1 bln in assets and Harmony (ONE), whose TVL is $325 mln, growing since early July.

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Author: AnTy

Tether Puts the Past Behind Them by Paying $41M to CFTC for Not Having All of Its Reserves in Cash

Tether Puts the Past Behind Them by Paying $41M to CFTC for Not Having All of Its Reserves in Cash

The US Commodity Futures Trading Commission (CFTC) announced that it has settled charges against Tether for “making untrue or misleading statements and omissions of material fact in connection with the U.S. dollar tether token (USDT) stablecoin.”

Tether will pay a $41 million penalty for what the company says is “putting the past behind us so we can move forward and focus on the future.”

CFTC said, while Tether claimed USDT is fully backed by fiat assets, it found that the company failed to disclose that the reserves backing also included unsecured receivables and non-fiat assets in its reserves between June 1, 2016, to February 25, 2019.

“There is no finding that tether tokens were not fully backed at all times — simply that the reserves were not all in cash and all in a bank account titled in Tether’s name, at all times,” said Tether in a statement, noting that not only it always maintained adequate reserves but it also has never failed to satisfy a redemption request.

The agency also settled charges against the cryptocurrency exchange Bitfinex for being engaged in illegal retail commodity transactions in crypto assets with US persons and operating as a futures commission merchant (FCM) without registering as required.

Bitfinex will be paying $1.5 million in penalty and is required by the agency to implement and maintain additional systems reasonably designed to prevent unlawful retail commodity transactions.

Tether said the CFTC’s Order makes no finding of a violation after December 2018.

Acting Director of Enforcement Vincent McGonagle said in a statement that the CFTC will continue to use its anti-fraud enforcement authority over digital assets, when necessary. Additionally, it will act to ensure that margined and leveraged digital asset trading offered to retail US customers must occur on properly registered and regulated exchanges, he added.

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Author: AnTy

dYdX Records $6.5B Volume to Surpass BitMEX & Coinbase Driven by China Crypto Ban & Liquidity Mining

DYDX token surged past $22.50, making its airdrop worth $100k. However, the token holders do not get a share of the trading fees earned on the platform, which goes to dYdX Trading Inc and equity holders.

As China cracks down on crypto declaring virtual currency-related business activities, including the provision of services by overseas exchanges to Chinese residents through the Internet to be “illegal financial activities,” decentralized finance (DeFi) is gaining a lot of traction in the country.

One DeFi project, in particular, is enjoying increased activity; decentralized derivatives exchange dYdX.

“China’s strong regulatory policy may benefit DeFi applications such as MetaMask and dYdX,” said Wu Blockchain as it noted, “A large number of Chinese users will flood into the DeFi world… All Chinese communities are discussing how to learn defi.”

In the last 24 hours, dYdX perpetual recorded more than $6.5 billion in trading volume, according to Coingecko. With these numbers, dYdX has outperformed the popular centralized crypto exchange BitMEX, which saw $1.69 billion in volume and has reached closer to FTX and Bybit, seeing just over $8.5 billion each.

In terms of open interest, dYdX is in 14th place with $483 million in OI compared to Binance Futures’ more than $8.23 billion, which sits in first place and records $56.7 billion in volume.

Late on Sunday, dYdX founder Antonio Juliano shared on Twitter that five years ago, he left leading US crypto exchange Coinbase to eventually found dYdX, and now for the first time, his platform is “doing more trade volume than Coinbase.”

Coinbase, which is a spot exchange, recorded $3.1 billion in volume.

Besides China turning to decentralized exchanges, this growing volume could also be driven by all the hype going around the platform usage, creating a feedback loop and the liquidity mining programs currently underway.

Users who trade on the exchange get to earn tokens through this program. Token rewards are based on the total fees paid and OI on the dYdX exchange. The first epoch of this reward incentive program ends on Sept 28, and there are currently just over 3.8 million DYDX tokens worth more than $86.3 million in this reward pool for distribution.

Given that the value of the DYDX token is on the rise, this further fuels this frenzy of activity on the platform.

Up more than 91.5% since the weekend, the DYDX token today hit a new all-time high at $22.56 thanks to growing usage.

Launched earlier this month, the governance token which was airdropped to its users and for which United States’ users were not eligible is currently worth $100,000.

Currently, DYDX has a market cap of about $1.1 billion based on the circulating supply of 50.855 million DYDX, out of the 1 billion total supply.

Amidst the ongoing dYdX mania, the crypto community got to know that all the trading fees earned on the platform go to the dYdX Trading Inc. Equity holders of the DyDx Foundation actually earn a percentage of the revenues generated by the exchange.

Also, the token holders can’t vote for the fees to be shared among them because, according to the team, “trading fees aren’t part of the smart contracts owned by the token.” And there are no plans to do any token burns either.

In the past 7-days, dYdX earned $12.55 million in revenue, the fourth-largest, and $29 million in the past 30 days.

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Author: AnTy

Axie Infinity Prepares for AXS Staking Launch, Community Treasury Skyrockets Past $1 Billion

Axie Infinity Prepares for AXS Staking Launch, Community Treasury Skyrockets Past $1 Billion

Sky Mavis, the company behind Axie Infinity, is asking its community members to “abide by the laws of their home countries” after the Philippines government started investigating the play-to-earn games.

Popular play-to-earn blockchain game Axie Infinity continues to lead the protocol revenue chart, earning $125.8 million on a weekly basis. In the last three months, the project has generated more than half a billion dollars in revenue, $1.1 bln in the past six months, and $1.4 bln in the past year.

The token AXS also continues to trade above $71 and is within reach for its $82.40 ATH from less than a week back.

Amidst this, Delphi Digital made its report on Axie from the end of June public in which it noted that it was the Ronin launch that was the key catalyst for the NFT game’s explosive growth as its daily active users went to 252,000 from 38,000 in just two months.

The majority of Axie’s new users are from the Philippines and Venezuela, it added.

The community treasury of the project has also grown from less than $1 million to over $14 million at June end. In another two months, the Treasury skyrocketed to surpass the billion-dollar mark as everyone piled into the project.

In November 2020, the Axie team had shared that 100% of all fees and primary sales from the Axie universe will be deposited in the Treasury. It also said that it would also direct a portion of staking issuance, starting at 35%, and gradually taper off over time towards Community Treasury.

“We’re also working with the Axie team on the upcoming launch of AXS staking. There’s a meaningful amount of supply set aside for staking rewards, and the treasury itself is over $1B and growing rapidly,” said Yan Liberman, Co-Founder and Managing Partner at Delphi Digital, on Thursday.

The treasury also saw daily growth increasing from sub-100k in April to a peak of over $600k in June.

Delphi Digital projected in its June-end report that the community treasury is expected to have 15.6 million AXS and 26.6k ETH, equating to roughly $150 million at the time when the price of AXS was a mere $5 and Ether was just above $2k while currently past $3k. This, however, does not include additional AXS deposited once staking incentives go live, scheduled for a Q3 release as such could come by September end.

An estimated 24% of circulating AXS is expected to be held by the treasury by the end of the year.

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AXS token holders are entitled to this treasury and, once staking goes live, will start receiving distributions and further dictate how it’s spent through governance.

“It will be interesting to see how the treasury build-up plays out, given that treasury growth will likely be higher than circulating supply expansion,” the report said.

Amidst this explosive growth, Sky Mavis, the company behind Axie Infinity, posted a statement on Twitter in regards to the reports of the government in the Philippines investigating the play-to-earn games and Axie Infinity in particular regarding the nature of tokens and because officials say the company should pay taxes on their revenue.

The Vietnamese company has asked its community members to “abide by the laws of their home countries.”

“Play-to-earn is an important shift in the nature of work; we look forward to working with physical nations (governments) on a path forward that encourages innovation and empowers gamers.”

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Author: AnTy

Global Crypto Adoption Surges 2,300% in the Past 2 Years, Retail Adoption Growing in Emerging Markets

Global Crypto Adoption Surges 2,300% in the Past 2 Years, Retail Adoption Growing in Emerging Markets: Report

Meanwhile, adoption in North America, Western Europe, and Eastern Asia is powered by institutional investment along with the “explosive growth” of DeFi and centralized services.

Global cryptocurrency adoption among individual investors surged 881% in the past year and over 2300% since Q3 2019, according to crypto analysis firm Chainalysis. Instead of trading and speculating, the firm focused on use cases related to transactions and individual saving.

Based on three factors: peer-to-peer exchange trading volume, the on-chain crypto value received, and on-chain retail value transferred, the firm found that the greatest crypto adoption by retail investors happened in emerging markets, with Vietnam ranking the first followed by India, Pakistan, and Ukraine. Chainalysis said in the report,

“In emerging markets, many turn to cryptocurrency to preserve their savings in the face of currency devaluation, send and receive remittances, and carry out business transactions.”

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It added that unlike the retail adoption in emerging markets, adoption in North America, Western Europe, and Eastern Asia over the last year had been powered largely by institutional investments.

The Chainalysis Global Crypto Adoption Index ranked 154 countries by three main metrics. Both the US and China saw their rankings dropping primarily because peer-to-peer trading volume declined. China ranks 13th, down from 4th last year, while the US is at 8th, from 6th.

This time, the firm took out one factor, the number of deposits by country weighted by the number of internet users, which is found to be skewing the rankings towards countries with comparatively more DeFi users, for which it has now created a completely separate DeFi Adoption Index, to be available in the coming weeks.

It is due to the “explosive growth” of DeFi along with centralized services that are primarily driving the crypto usage in the developed countries where there is already substantial adoption, as per the report. In emerging markets, P2P platforms are the ones driving new adoption.

“Cryptocurrency adoption has skyrocketed in the last twelve months, and the variation in the countries contributing to that show that cryptocurrency is a truly global phenomenon.”

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Author: AnTy

Crypto Market Surpasses $2T, Asset Manager Sees BTC As A “Hedge Against Higher Inflation”

ADA is now leading past $2 and just 15.27% away from its peak, with Bitcoin and Ether still 28% and 25.3% off of their respective ATHs. The dollar is staying firm near its highest level in four months as the Fed sets itself apart from more dovish central banks.

Ahead of the weekend, the crypto market has started pumping yet again.

On Thursday, Bitcoin experienced a small drop in price as it fell to about $43,750. In tandem with BTC, Ether went to $2,972, and the rest of the crypto market went just under $1.89 trillion.

But already, the market is back up and running with Bitcoin past $46,350 and Ether at $3,230 on Friday. The total cryptocurrency market cap is now past $2 trillion, not far from the mid-May all-time high of $2.55 trillion as digital assets started rallying in the past two weeks.

Among the top cryptos, Cardano (ADA) is rallying spectacularly, now past $2 and just 15.27% away from its peak, in anticipation of the Cardano smart contract announcement. IntoTheBlock noted,

“The crypto-asset hits $2 for the first time since May, poised by a strong number of HODLERS. The number of addresses holding ADA +1 year just hit a new ath with 221.49k addresses, aggregating 4.46b.”

BTC & Ether Back in Action

Both Bitcoin and Ether are still 28% and 25.3% away from their respective ATHs.

As prices go upwards, sentiment is recovering, with funding rates turning positive after staying negative for an extended period of time. This implies traders are now leaning towards longs but still, the highest Bitcoin funding rate, as of writing, is 0.0289% on Deribit.

With this, the open interest on Bitcoin futures has risen to $16.18 bln, from $10.62 low on June 26, with the ATH at $27.68 bln, as per Bybt. As for Ether futures, it has nearly doubled to 8.65 bln, from $4.43 ln low, and is fast nearing its peak of $11.6 bln.

When it comes to Ether, the London upgrade last week has kickstarted the bulls into motion as EIP 1550 got activated. So far, in less than ten days, more than 37,000 ETH worth over $114 million have been burned.

This crunch in Ether supply is helping push its prices upwards, aided by the NFT mania. Last year was all about DeFi, but this year is about NFT, which, unlike the complex decentralized finance sector, has managed to take crypto mainstream.

Renewed Mania

NFTs and digital collectibles have experienced massive growth this year, and while the crypto prices were experiencing a drawdown between May and July, NFT activity has made its way back to the peak mania of March. Daily transfers of ERC-721 tokens are currently on their way to breaching ATHs.

CryptoPunks, a pioneering NFT project which is being sold for millions, along with Bored Apes Yacht Club and Meebits, will be auctioned by Christie’s next month. Recently, Three Arrows Capital also went on an NFT buying spree, mostly focused on CryptoPunks and Art Blocks, a platform for creating generative NFT art. CoinMetrics noted,

“With NFTs becoming a mainstay of the burgeoning digital economy on Ethereum, institutional players may be taking notice and contributing to this recent rise in volume and activity.”

Coming Up

Amidst this, firms continue to file for ETFs, with the 21st being an Ether ETF by Kryptoin. After SEC Chair Gary Gensler signaling more openness for futures-backed ETFs, four companies have filed for them in the past two weeks.

Just this week, asset manager giant Neuberger Berman who has $433 billion assets under management, gave its Commodity Strategy Fund the green light to invest in cryptos. The 164.4 million mutual fund, which invests in commodity-linked futures contracts, can now add exposure to Bitcoin and Ether through futures.

The fund’s portfolio managers see cryptos as increasing diversification and providing a hedge against higher inflation, a spokesman for the fund told Reuters. The spokesman added,

“Accessing these markets through exchange-traded instruments is a prudent way to gain exposure, which the portfolio management team will seek to do over the coming weeks and months.”

On the macro front, the dollar is staying firm near its highest level at 92.758 in four months as the US Federal Reserve starts discussing tapering with an announcement by the end of the year seen as a near certainty. While consumer price data indicates that inflation may be peaking, the wholesale price data underscored the strength of inflationary pressure.

As we reported, several Fed officials this week came out in support of reducing monetary stimulus, setting themselves apart from more dovish central banks such as the European Central Bank and the Bank of Japan.

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Author: AnTy

Bitcoin and Gold Correlation Turns Negative, Approaching 3-Year Lows with Tapering Looming Ahead

Bitcoin is keeping above $45k after surging past $46,800 on Wednesday, still up more than 57% YTD. The digital asset hasn’t seen these levels since mid-May, which further gives strength to the 200-day moving average as a potential support level.

BTC has been strong despite the less-than-huge inflation data coming in this week. In July, the Consumer Price Index for All Urban Consumers (CPI-U) rose by 0.5%, on par with the consensus prediction by economists.

Even the core index, which excludes food and energy prices, jumped 4.3% for the 12 months through July compared to 4.5% for the same period through June. Analyst Mati Greenspan wrote in his daily newsletter Quantum Economics,

“The thing is… bitcoin isn’t really a hedge against inflation. Its price doesn’t react to inflation data like the rest of the market does, at least not in real time. However… I can see how people might not want to hold dollars in a bank account right now.”

Much like digital gold, precious metal, the traditional safe haven, also rose over 4% in the last three days to reach almost $1,756 per ounce. However, gold’s gains came after its flash crash to $1,687, from $1,832 on August 4th.

Gold is currently down 7.51% YTD and is in a loss this month and quarter by 3.37% and 0.52%, while bitcoin is up 8.90% and 29%, respectively, per Skew.

Interestingly, with this move, the one-year correlation between gold and bitcoin has fallen into the negative territory and is reaching the lows last seen in 2019.

On the macro front, tapering could affect both the assets and discussion has already started around this. On Wednesday, Dallas Federal Reserve President Robert Kaplan said the central bank should begin paring its purchases in October. Kaplan said,

“It would be my view that if the economy unfolds between now and our September meeting … if it unfolds the way I expect, I would be in favor of announcing a plan at the September meeting and beginning tapering in October.”

Fed Chair Jerome Powell has not yet given a forecast for when they will pull back the economic stimulus, which involves $120 billion worth of monthly purchases of Treasury bonds and mortgage-backed securities to keep banks and other lenders flushed with cash.

According to Kaplan, with economic activity and employment now healthier, he is conformable to “take the foot off the accelerator soon.” He said the tapering process should take about eight months, and the eventual move to raise interest rates to be separate from it.

Meanwhile, Richmond Fed President Thomas Barkin said it might take a few months for the job market to recover enough to reduce the support. “We are closing in … I don’t know exactly when that will be,” said Barkin, who’s not ready to commit to a timetable yet but think, “we will get there in the next few months.”

Just this week, Atlanta Fed President Raphael Bostic said he is eyeing Q4 for the start of tapering. He has already penciled in late 2022 for the start of rate hikes. Factoring in the more progress still needed in the labor market puts the start of trimming purchases between October and December and even earlier.

For Boston Fed President Eric Rosengren as well, tapering standards for employment could potentially be met by September, and he is in “favor of going relatively fast.”

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Author: AnTy

Bitcoin Shorts Get Annihilated, OI Drops by 50k BTC from Last Week

While Bybit Bitcoin’s futures had the biggest drop of 15.59% in OI, followed by Binance’s 12% in the past 24 hours, Bitfinex, FTX, and CME had the biggest increase of 12.81%, 11.54%, and 11.86%, respectively.

Bitcoin price surged to nearly $40,000 in a strong upwards move, late on Sunday or early Monday. This represents a nearly 36% jump in price since the $29,300 low last Tuesday.

While several factors like Alameda Research putting in a bottom by “buying a LOT” at the lows, Tesla CEO Elon Musk announced his bullishness for crypto, and speculation over Amazon’s potential involvement in the cryptocurrency sector contributed to this bullish strength, shorts have a significant part to play in this.

As we have been reporting for the past month, the funding rates on the perpetual contracts have been staying in the negative, with the market extremely short on BTC. At the same time, open interest continued to climb sharply.

And finally, an epic short squeeze happened.

In the past 24 hours, 102,558 traders have been liquidated for $1.14 billion, with nearly $945 million of it belonging to shorts, as per Bybt.

The figure is expected to be much higher given that Binance had stopped showing its real liquidation numbers and is currently accounting for less than 20% of all liquidations when it used to be about half, much like Bybit.

“Bitcoin shorts just got blown out. Quarterly basis popped from 5% to >10% briefly,” noted trader and economist Alex Kruger.

Amidst this, Binance and FTX have reduced their leverage offering from more than 100x previously to now only up to 20x. Andrew Kang, Mechanism Capital, said,

“Usually, big short squeezes like we saw on BTC today bleed out, but this continued upward momentum is pretty indicative of shorts/stables being price-insensitive buyers trying to scoop any liquidity they can.”

The result of this short squeeze can also be seen in open interest. Total OI on Bitcoin futures has crashed by 50k BTC — currently at 349.7k BTC from over 400k BTC less than a week back.

In the past 24 hours, OI on Bybit Bitcoin’s futures had the most significant drop of 15.59%, followed by Binance’s 12%, which leads the futures space. OI on Binance is now at 79.1k BTC, down from 101.37k BTC on June 20, which increased 78% in nearly a month as new short positions were opened.

Meanwhile, Bitfinex, FTX, and CME had the most significant increase of 12.81%, 11.54%, and 11.86%, respectively, as of writing.

In the case of Ether, Binance is the only with a decrease, of only about 3.67%, though, in OI. Total Ether OI is now 2.54 million ETH, down from 2.94 million ETH in less than a week. SplitCapital said,

“Make no mistake, the real pain won’t come from shorts rather the absurd amount of people that are parked all in stablecoins. They won’t chase till 40k breaks.”

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Author: AnTy

Gold-Loving Indians’ Crypto Investments Grew 1,900% to $40 Billion in the Past Year

Gold-Loving Indians’ Crypto Investments Grew 1,900% to $40 Billion in the Past Year

More than 15 million Indians are buying and selling crypto assets, fast catching up with the 23 million cryptocurrency traders in the US and far exceeding 2.3 million in the UK.

Investment in the cryptocurrency market grew from about $200 million to nearly $40 billion in India in the past year, according to Chainalysis.

India is among the world’s biggest holders of bullion, with households owning more than 25,000 tonnes of precious metal.

Now not only gold aficionados’ are increasingly getting interested in cryptocurrencies, but this has also been despite the fact that the country has experienced a ban from the central bank in the past.

This ban has long been lifted by the Supreme Court, and now the country is preparing to make it an asset class.

“I’d rather put my money in crypto than gold. Crypto is more transparent than gold or property, and returns are more in a short period of time,” Richi Sood, a 32-year-old entrepreneur who shifted from gold to crypto, told Bloomberg.

“I am flying blind,” she added. “I have a risk-taking appetite, so I’m willing to take a risk of a ban.”

More than 15 million Indians are buying and selling crypto assets, fast catching up with the 23 million cryptocurrency traders in the US and far exceeding 2.3 million in the UK.

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This growth is coming from the 10-35-year-old age group, according to Sandeep Goenka, co-founder of India’s first cryptocurrency exchange ZebPay.

“You go online, you can buy crypto, you don’t have to verify it, unlike gold.”

The latest World Gold Council data also indicated that Indian adults under age 34 have less appetite for gold than older consumers.

While the value of Indian crypto asset holdings is a tiny part of its gold market, the growth is clear, with the four biggest crypto exchanges seeing daily trading volume jumping to $102 million from $10.6 million a year ago, according to CoinGecko.

India’s $40 billion market now significantly trails China’s $161 billion, according to Chainalysis.

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Author: AnTy

Macro Fireworks: Stock Market Soars to New ATH While Bitcoin Awaits the Breach of An Important Level

  • The price of Bitcoin is trading around $40,000 after surging past $41k on Monday, the highest level in more than two weeks.
  • Early last week, the Bitcoin price had fallen to $31,000, and since then, it has rallied about 30%.

Now that BTC has broken out of its $30k to $40k range, the market wants to first see $42,500, an important level, to be broken. This represents the 200-day moving average and breaching it could see us rallying to $50,000 next.

“Getting back above $40,000 was technically a positive,” said Art Hogan, chief strategist at National Securities.

“The folks who look at this using technical analysis would tell you that when it breached $40,000, that sent a negative signal, and now that it’s recaptured that level, it sends a positive signal.”

This latest rally, as we reported, came amidst a set of bullish news in the form of MicroStrategy completing its $500 million senior notes offering and filing for the sale of $1 billion MSTR shares to buy even more Bitcoin.

Tesla CEO Elon Musk also clarified that the electric car maker would accept BTC once it’s mined by 50% clean energy.

The biggest endorsement for Bitcoin came from Paul Tudor Jones, who wants to invest 5% of his portfolio in Bitcoin, just like cash, gold, and commodities. “I like Bitcoin as a portfolio diversifier,” he said.

The FOMC meeting this week is of significance as well. Not just crypto, but the stock market is also eagerly awaiting Federal Reserve Chairman Jerome Powell’s reaction to recently recorded high inflation.

“In order for Bitcoin to resume that rally, I think you’re going to need to see more widespread legitimate adoption,” said Tom Essaye, a former Merrill Lynch trader.

Already, El Salvador has become the first country to adopt Bitcoin as legal tender. As we reported, the Central American Bank for Economic Integration, which is made up of 17 member states, called it a “really big deal,” adding, “we’re really proud that they’ve made us part of this new policy.”

“BCIE is accompanying El Salvador in this new and innovative policy of adopting the cryptocurrency called Bitcoin for legal use,” said President Dante Mossi.

Besides Bitcoin, the stock market is also enjoying an uptrend, with the S&P 500 hitting a new ATH at 4,255.15. While at 34,393.75, Dow Jones Average is near its May peak, tech-heavy Nasdaq which has been in an uptrend since last month, soared past 14,174 to a new high.

USD also shows strength at 90.634, but gold has taken a slide to $1,863 per ounce.

As for the cryptocurrency market, altcoins are also seeing green since last week, with the total market cap now above $1.7 trillion. However, according to Barry Silber, the founder and chief executive officer of Grayscale’s parent company, Digital Currency Group, 99% of cryptos are “overpriced.”

Silbert also shared he is preparing for “macro fireworks” and, as such going long the VIX which represents the market’s expectations for volatility over the coming 30 days. He added,

“No clue what will be the spark, hence the volatility hedge. but food prices, oil prices, investor complacency, speculative excess, lack of trust in the Fed, interest rate normalization, meme stocks, overpriced cryptos, etc., are all on my mind.”

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Author: AnTy