Tether (USDT) Market Cap Surpasses $70 Billion, Majority Issued on Tron Blockchain

As the price of Bitcoin hits a new all-time high of $67,000, the market cap of the largest stablecoin, Tether (USDT), has gone to surpass $70 billion in market cap.

The majority of Tether’s 70 billion supply, 51.42%, is issued on Tron (TRX) blockchain at almost 36 billion, followed by Ether which has 33.85 billion USDT supply circulating on its blockchain.

The rest of the USDT supply is scattered on other blockchains, including Omni, Solana, Algorand, EOS, Liquid, and SLP.

After growing 41.7 billion in the first half of this year to nearly 63 billion, Tether supply had a pause until early August. After adding 8 billion in the next month, Tether supply growth has been resting yet again since early last month, only to come back into action in October as traders and investors try to chase the bulls.

USDT’s dominance, however, has been on a decline ever since June last year when it was just above 86%. In the last 17 months, Tether’s stablecoin dominance has lost 30% of its share to now sit at 56.8%. Much of this has been lost to Circle’s USDC, whose market share went from 8% to 25.7%.

Amidst this growth, short-seller Hindenburg Research has launched a $1 million “bounty” program for information on the stablecoin company.

“We feel strongly that Tether should fully and thoroughly disclose its holdings to the public.”

“In the absence of that disclosure, we are offering a $1m bounty to anyone who can provide us exclusive detail on Tether’s supposed reserves.”

Nathan Anderson Hindenburg Founder

Hindenburg also said that it did not hold any long or short positions on Tether, Bitcoin, or any other cryptocurrency.

“This stunt from Hindenburg Research is a pathetic bid for attention,” Tether responded in a statement.

“Tether abhors and denounces their actions and transparent motives.”

Days before Hindenburg’s announcement, the US commodities regulator charged Tether with a fine of $41 million over falsely representing that USDT was fully backed by fiat currency. Tether did not admit or deny the wrongdoing.

Recently, crypto lender Celsius Network also said that Tether issues new stablecoins in exchange for collateral in the form of crypto, such as bitcoin, as part of its lending program.

“If you give them enough collateral, liquid collateral, Bitcoin, Ethereum and so on . . . they will mint tether against it,” said CEO Alex Mashinsky. “New USDT is issued for such loans,” and later destroyed when the loan is paid “so it does not permanently increase USDT in circulation.”

Earlier this month, Bloomberg reported that Celsius had borrowed $1 billion worth of USDT from Tether.

Mashinsky, meanwhile, further clarified that the loans of USDT are typically at least 30% overcollateralized.

“We have a select, small group of customers that borrow USDTs in exchange for posting security. These loans are secured by collateral in Tether’s possession of well in excess of 100% of the loan proceeds and earn monthly interest,” Tether told FT, adding:

“This practice is common to other stablecoin issuers. This lending is undertaken narrowly, efficiently, securely, and profitably.”

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Author: AnTy

Over $2 Billion in New Money Has Flowed into CME Bitcoin Futures This Month

Bitcoin price is ready to pounce at its almost $65,000 all-time high after seeing a mild case of volatility in the past 24 hours.

Late on Sunday, the Bitcoin price dropped just under $59k only to climb back above $62,700 on Monday. Currently hovering around $61k, the leading cryptocurrency is awaiting approval on a US exchange-traded fund (ETF).

Ethereum and much of the cryptocurrency market behaved the same way, with the total market cap at $2.55 trillion, down from a high of $2.62 trillion earlier in the day, according to CoinGecko.

While whales continue to accumulate BTC with Bitcoin “Supply Per Whale” basically never dropping since 2017, retail is also just as interested in BTC along with Ethereum, Cardano, and Solana. ETH -2.74% Ethereum / USD ETHUSD $ 3,752.44
-$102.82-2.74%
Volume 17.24 b Change -$102.82 Open $3,752.44 Circulating 117.98 m Market Cap 442.72 b
7 h Over 160 Projects Are Launching on Terra by Early Next Year to ‘Amplify Demand for UST’ and Send it to $10 Bln, says Founder 11 h Over $2 Billion in New Money Has Flowed into CME Bitcoin Futures This Month 2 d Euphoria is Back Ahead of ETF Listings: Bitcoin Hits $63k and Ether Nearly $4k as NYSE Certifies “Approval for Listing”
ADA -1.42% Cardano / USD ADAUSD $ 2.13
-$0.03-1.42%
Volume 2.59 b Change -$0.03 Open $2.13 Circulating 32.9 b Market Cap 70.08 b
11 h Over $2 Billion in New Money Has Flowed into CME Bitcoin Futures This Month 4 d Polkadot Sets Launch Date for Initial Parachain Auctions, DOT Soars 17% Ahead of Crypto Market 6 d Institutions Are Back to Pouring Money into Bitcoin as a “Perfect Storm” Brews for the King
SOL -2.02% Solana / USD SOLUSD $ 157.26
-$3.18-2.02%
Volume 1.68 b Change -$3.18 Open $157.26 Circulating 300.54 m Market Cap 47.26 b
7 h Over 160 Projects Are Launching on Terra by Early Next Year to ‘Amplify Demand for UST’ and Send it to $10 Bln, says Founder 11 h Over $2 Billion in New Money Has Flowed into CME Bitcoin Futures This Month 3 d Decentralized Smart Contract Platform, Cypherium, Joins China’s BSN to Boost Blockchain Development

According to a Bloomberg report, the Indian crypto exchange CoinSwitch Kuber, which launched just a year and a half ago, has 11 million users whose average age is 25. Interestingly, the majority (55%) of this user base is from outside large metropolises like New Delhi or Mumbai and from a generation with no experience with stocks and bonds.

All eyes are currently on the first futures ETF to make its debut which is expected to come on Tuesday. It could easily see us hitting a new all-time high.

While some feel this could result in some profit-taking as traders sell the news, others are pretty clear that it won’t be the case.

Crypto trader Light, who shorted CME launch in December 2017 and then shorted Coinbase listing in April 2021 that marked the top for Bitcoin, says, “it’s not a sell the news event when a large part of the market is worried it may be a sell the news event.”

But no matter the bulls or bears, volatility is expected going into this week, which we already saw last week.

“Overall the volatility on Bitcoin is going to be high irrespective of how the decision plays out,” said Pankaj Balani, chief executive officer of crypto-derivatives exchange Delta Exchange, in a note.

So far this month, Bitcoin has increased more than 43% in value. The technical setups for the cryptocurrency, however, is a concern for Risk Bensignor, the president of Bensignor Investment Strategies and a former strategist at Morgan Stanley, to whom the price action might “make me think twice about buying Bitcoin now, especially as it’s against all-time highs,” he said in a note Monday.

Bensignor further said that open interest (OI) rose dramatically during this rally which means that “there are lots of new shorts on this up move that are badly under water — that still may need to get fully squeezed out before the buying might dry up.”

As we reported, OI has risen significantly since Sept. 29 low of $13.11 bln. On Monday, it went to hit $23.11 bln, as per Bybt.

Binance is leading this race with OI at a new high of $5.5 bln, followed by CME and FTX sitting at second place with new highs at $3.97 bln in notional OI. At the beginning of this month, CME’s OI was sitting at $1.7 bln and just two days before that at $1.4 bln, while today, it is ready to surpass $4 bln.

With the Bitcoin Futures ETF involving the contracts from CME, traders on the regulated exchange are making a lot of purchases as CME Bitcoin futures’ market share rose to nearly 20% from just 13% a week back.

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Author: AnTy

US Dollar Hits One-Year High But Bitcoin No Longer Holds an Inverse Correlation with it

The crypto market is feeling some blues as the Bitcoin price gets back under $55,000.

The week started on a bullish note as Bitcoin went to nearly $58,000, recording a 32.5% uptrend in October. Late on Tuesday, the price dipped to $53,700 only to recover back above $56,600 in the next few hours.

“We believe the market is healthy, and these are, in fact, normal pullbacks that are to be expected,” said Philippe Bekhazi, CEO and co-founder of crypto trading platform XBTO.

“The market is seemingly pricing in the probability of an ETF approval this month. So profit-taking is natural.”

Bitcoin going red has the total market cap also sliding by 4% in the past 24-hours but still keeping well above $2.34 trillion.

Much like in the Q4 of 2020 when Bitcoin gradually made its way to 2017 all-time high of $20,000, after the lacking performance in the second half of Q2 and the Q3, the leading cryptocurrency is flirting with a run towards its ATH of nearly $65,000.

This, however, has been happening while the dollar is near its one-year high. The US dollar index dropped on Wednesday to 94.3 after making a new 2021 high at 94.56 just the day before, a level last seen in late September.

However, Bitcoin no longer holds an inverse correlation with the USD, according to Kaiko’s latest report.

image1

Historically, BTC has moved in the opposite direction to the US dollar, but this trend seems to have dissipated this year. Both the currencies have been experiencing an upward trajectory in contrast to traditional equities, which closed in September with their worst performance since the start of the pandemic.

“Bitcoin’s rising correlation with the DXY suggests that despite a growing risk-off environment, both fiat and crypto assets are treated similarly by investors,” wrote Kaiko.

The Bullish and the Bearish

Meanwhile, the crypto community has started to get bullish yet again, with many calling for new peaks for the trillion-dollar crypto asset in the historically bullish Q4.

While Vijay Ayyar, head of Asia Pacific with crypto exchange Luno sees a record high for Bitcoin at around $80k and $85k possible, others are seeing $100k getting breached this time.

Technically, Bitcoin’s run-up has activated an inverted head and shoulders chart pattern that can see the cryptocurrency climbing to $79k.

As we have reported for the past couple of days, the open interest for Bitcoin derivatives contracts has also been increasing rapidly, now sitting around $20 billion, the level last seen in mid-May. The funding rate has also started to increase, with the highest currently on Deribit at 0.0363%.

In the options market, open positions for the $80k strike call for December 2021 expiry now vastly surpass those for the $40k strike put, according to data from options exchange Deribit.

Not to mention, optimism that the first Bitcoin futures exchange-traded fund (ETF) may be approved by the SEC as soon as this month has traders and investors jumping back into Bitcoin.

That’s why this week’s decline is “not cause for concern,” according to James Butterfill, an investment strategist at CoinShares.

“It hasn’t broken trend and the fundamentals of increase chances of an SEC approval and increasing institutional adoption are likely to be supportive of price in the coming weeks.”

However, not everyone thinks the approval is coming. “The market is over-emphasizing (SEC Chairman) Gary Gensler’s public comments about support for the (CME) and futures,” said Jeff Dorman, CIO at digital asset management firm Arca.

“We believe the concerns the SEC has raised historically regarding market manipulation of bitcoin and unregulated exchanges have not been solved.”

Besides CME’s future basis rising fast, signaling a lot of buying, the Rothschild Investment Corp. disclosed an increase in their GBTC and ETHE holdings. It now owns 138,790 shares of GBTC and 303,554 ETHE, up from 141,405 GBTC and 13,817 ETHE shares, respectively.

However, the Crypto Fear and Greed Index is back to flashing “greed” at a reading of 70 when just last month it was 44 and in “fear” territory. Just yesterday, the index showed “extreme greed” in the market at a reading of 78, so market sentiments are fast-changing and led by price.

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Author: AnTy

“We’re In A New Bull Market,” says Pantera Capital CEO But Warns Of A Bitcoin Bear Trigger

Pantera Capital CEO Dan Morehead is now calling for a new bull cycle as Bitcoin price moves towards $60,000 after recovering from the June low that was just under $29,000.

“​​We had a period of temporary insanity,” wrote Morehead in this month’s note to investors, pointing to China banning cryptocurrency mining and trading that had a negative impact along with the debate on the environmental impact of Proof-of-Work consensus mechanism, adding, “now we’re in a new bull market.”

Already up more than 30% in October, Bitcoin price is currently only 13% away from its all-time high of nearly $65,000. The market is hopeful of a strong performance this quarter, with Q4 being historically a bullish month.

According to Morehead, the deep bear markets where we experienced drawdowns of over 80% may be a thing of the past, and future bear markets will now be “shallower.”

“As the market becomes broader, more valuable, and more institutional, the amplitude of price swings will moderate.”

But at the same time, we won’t be seeing any more of the 100x-in-a-year rallies either, he added.

The Bear Catalyst

While Morehead is confident in the second round of the bull cycle, he warned of a potential bear catalyst in the form of the launch of the Bitcoin exchange-traded fund (ETF).

As we reported, the market is highly hopeful that the US Securities and Exchange Commission (SEC) will finally approve a Bitcoin Futures ETF this month. SEC Chair Gensler has also been hinting at a possible futures-based ETF for months.

This could be why Bitcoin futures on the regulated exchange CME is trading at a much higher price than other exchanges. The CME bitcoin futures basis increasing at a faster rate suggests that institutional investors are buying BTC futures that can further put upward pressure on the crypto asset and lead to an even steeper curve.

Interestingly, as NYDIG pointed out, the number of contracts that a participant such as an ETF can own on the CME is also raised to a total of 6,000 starting October 18th. The decision on the first ETF filed by ProShares falls on the same day.

If SEC says nothing on this, the ETF “will be free to launch on 10/18 as the 75 days req will have passed,” said Eric Balchunas, Senior ETF Analyst for Bloomberg. “No news is prob good news at this point,” he added.

Meanwhile, to Morehead, this approval could turn out to be a ‘Buy the rumor, sell the fact’ much like two other past events.

Will History Repeat Itself?

The Pantera Capital CEO pointed to the launch of Bitcoin futures on CME in December 2017 and Coinbase going public via a direct listing in April this year as examples. The market rallied 2,440% the first time and 822% the second time but resulted in an 83% and 53% bear market, respectively.

The same can happen when Bitcoin ETF gets approved, said Morehead as he concluded:

“Will someone please remind the day before the Bitcoin ETF officially launches? I might want to take some chips off the table.”

Trader @SplitCapital, however, is not of the same opinion as he argued that the CME futures launch came at a time when the market was “coming off of the most frothy period in crypto history,” and funding rates were at 30% for short-dated futures. Similarly, during Coinbase’s IPO, there was the most amount of bitcoin openly traded in history.

This time, however, financing rates are averaging below 15%, open value is at record lows, and we have a renewed macro tailwind in the form of fiscal and monetary policy, which means this is not a classic ‘sell the news’ event, and “this time really is different.”

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Author: AnTy

Bullish Week: Overwhelming Bitcoin Buying Sends OI to May Level while Net Dollar Longs Surging

The bullish start of October continues this week as the price of Bitcoin went from $48,250 to as high as $56,645 on Friday. As of writing, BTC/USD is hovering around $55k.

With this latest pump in price, Bitcoin has yet again become a trillion-dollar asset class.

According to Chainalysis, ever since Bitcoin hit it’s low late in July, those holding at least 1k BTC have increased their holdings by 172k BTC. Meanwhile, institutional traders have acquired an additional 68k BTC.

Much like the leading cryptocurrency, Ether moved in tandem to start the week at $3,400 to hit $3,675 and is now trading around $ 3565. The overall crypto market cap also grew by more than 9.5% to above $2.4 trillion.

This past week, the biggest gainer in the crypto market has been SHIB which is up by 232%. Other big gainers include FTM (44%), ONE (37%), OHM (25%), BTT (21%), XRP (18%), DCR (16%), AXS 16%), and EOS (15%).

Q4 is looking primed for a significant price-performance with it being historically a bullish quarter combined with the possible upcoming approvals for BTC ETFs in the US, the stabilization of the Evergrande situation, and traditional giants like Soros Fund Management turning crypto-positive.

Institutional Demand

Despite the 14% uptrend in Bitcoin price, the funding rate is still not heavy, with the highest currently on OKEx at 0.0453%, as per Bybt.

Open Interest is also surging, having climbed to $19.15 billion, a level last seen in early May. In just over ten days, the OI has increased by about $6 billion. As reported, CME is particularly enjoying a heightened activity with OI on Bitcoin contracts sitting at $3.12 billion, the same as FTX and just behind Binance at $4.35 billion, as per Skew.

On Sept. 29, OI on the regulated platform CME was $1.47 billion. For Ether contracts, OI on CME currently at $830 mln is reaching for early Sept. ATH of $860.75 mln — but ranks at 6th place.

This significant increase in OI suggests “institutional demand has been the underlying driver of this move higher,” according to QCP Capital. Additionally, the “unusually large premium on CME indicates an overwhelming amount of outright buying.”

Premium on CME futures has been highest among the major exchanges when typically it is compressed due to the cash-and-carry spread trades that institutional players like to put on — buy spot vs. sell CME future.

This week, Senator Cynthia Lummis R-Wyo. also disclosed buying between $50,001 to $100,000 worth of BTC in mid-August, according to a filing. This, however, isn’t her first Bitcoin purchase, as she first bought it in 2013. She also disclosed buying Bitcoin worth between $100k-$250k in April this year.

Dollar Longs at 2-Year High

While crypto is euphoric, S&P 500 is merely up 2.14% this month and 17.14% YTD compared to Bitcoin’s 90% uptrend in 2021 so far. Gold is also green this month by 1.60% but still down by 7.27% year to date.

When it comes to the US dollar index, it is up 0.56% and 2.74% in this month and year, respectively.

US dollar net longs meanwhile have surged to their highest level in over two years. In the week ended Oct. 5, the value of the net long dollar position jumped to $22.89 billion, versus $16.37 billion in the previous week.

Traders are net-long on US dollar for 12 straight weeks after being short for 16 months, thanks to the Federal Reserve suggesting a possible tapering of its asset purchases starting November this year.

However, before the weekend, the dollar pushed back after data showed US non-farm payrolls increased by just 194,000 jobs last month, compared to the expected 500,000 new jobs.

“U.S. inflation data released next Wednesday may add to evidence that inflationary pressures are proving less ‘transitory’ than generally anticipated,” wrote Jonathan Petersen, markets economist at Capital Economics.

“Our view remains that this will push U.S. yields and the dollar a bit higher in the coming months.”

Bitcoin net shorts meanwhile increased to 1,518 contracts — largest since late July — from 883 the previous week.

Developing Countries Leading In Adoption

El Salvador, which continues to see growing bitcoin adoption, is now planning to invest some of the $4 million gains obtained from its Bitcoin operations to build a veterinary hospital, President Nayib Bukele said this week.

The Bitcoin Trust, which was authorized by Congress in August to facilitate BTC and USD transfers, now has a “surplus” of $4 million to its original balance of $150 million, said Bukele.

“So we decided to invest a part of that money in this: a veterinary hospital for our furry friends,” Bukele wrote on Twitter. The veterinary hospital would provide basic and emergency care services along with rehabilitation, he added.

Earlier last week, El Salvador became the world’s first nation to adopt Bitcoin as legal tender. According to BitMEX CEO Alex Hoeptner, Salvador is just the first one as he predicts at least five countries accepting the cryptocurrency as legal tender by the end of next year and all of them will be developing countries.

“Faced with an inherently unequal financial system, those who have the most to lose by continuing the status quo are acting in their self-interest to explore alternative options like Bitcoin.”

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Author: AnTy

Shift to Risk-on: Bitcoin Is Up 12% Already in Uptober Amidst Stock Market Weakness

Starting the month around $44,000, Bitcoin price went as high as $49,300 late on Sunday. As of writing, BTC/USD is trading around $47,650 with $26 billion in trading volume.

Last week Friday’s uptrend in Bitcoin’s price was the biggest daily gain since July, which was also seen in other crypto assets as well. After rising as high as $3,490, Ether is currently around $3,330.

In the past week, the biggest gainers include AXS, leading the gains with 137%, then OMG 100%, OHM 52%, QTUM 48%, XTZ 38%, OKB 38%, dYdX 37%, and LUNA 35%. Some other decent gainers in the past 24 hours include ALGO 14%, SHIB 9%, ENJ 8.5%, and HOT 7%.

The total market cap is now back around $2.2 trillion.

The fact that Bitcoin is holding on to the 12% spike in the price of the leading cryptocurrency may have significantly changed its technical setup, said Tom Lee’s Fundstrat. According to strategists at Fundstrat, the breakout “looks important technically.”

“Prices have eclipsed weekly highs as well as one-month downtrends,” they said. While trends turned negative last month, “Friday’s move is a big positive in helping to resolve this consolidation.”

So, it makes sense that Fundstrat is bullish and looking upward for its next key levels. “The first upside target lies at September highs at $52,956, then $64,895,” the strategists said.

The Micro and Macro Effect

This latest increase in Bitcoin’s price may be fueled by a short squeeze in part of the market, as per JST Capital co-founder Todd Morakis and Jonathan Cheesman, head of OTC and institutional sales at crypto derivatives exchange FTX.

According to Joseph Edwards, Enigma Securities’ head of research, the spike in volume on crypto derivatives exchange was a possible driver for the moves. In the futures market, Bitcoin had a net short position of -883, the smallest since mid-August.

After the brutal September — which has been historically expected and the value of Bitcoin dropped 7.2% — amid concern about increasing regulatory pressure in China and the U.S, October is looking more and more like Uptober.

Technically, “the rally has also preserved positive intermediate-term momentum” through the moving average convergence/divergence indicator, said Fairlead Strategies LLC’s Katie Stockton in a note. But at the same time, she sees a counter-trend signal coming from another technical framework, DeMark indicators, that could prevent follow-through on the move.

“We would feel more comfortable moving to a bullish short-term bias once this signal is invalidated — which in our work would require two closes above $48,800,” she said.

After trading sideways for weeks, the market was particularly excited last week, with Federal Reserve Jerome Powell saying they have no intention to ban cryptocurrencies.

This “combined with weakness in the stock market, and the month of October being a typically bullish time for crypto markets, could signal a shift to risk-on trading in crypto markets for the next several weeks, as investors seek returns in non-traditional assets,” said Leah Wald, chief executive of crypto asset manager Valkyrie Investments.

However, the dollar has been showing strength, hitting a new 2021 high at 94.5 on Sept 30 and currently at 93.84. USD is headed for its best week since June, which could spell some trouble for crypto prices.

Overall, seasonality and positive market fundamentals see the crypto market primed for substantial gains in Q4, which has often seen strong performances.

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Author: AnTy

Bitcoin & Gold Spike and Stocks Hit Record High while Dollar Weakens on Powell’s Dovish Speech

While the Fed governor isn’t concerned about the “eye-popping price increases” in the housing market, saying, “I don’t think any of this is financial excess,” Christopher Waller sees crypto as odd assets. He’s “not going to bet Financial Stability Policy on crypto assets.”

Federal Reserve Chair Jerome Powell didn’t disappoint investors at the much-awaited event of the month as he delivered a dovish speech at the Jackson Hole Symposium on Friday.

Powell did say that he would like the central bank to start reducing its $120 billion a month asset purchases from “this year,” but only to add that investors should not read it as a signal to an imminent hike in interest rates.

“The timing and pace of the coming reduction in asset purchases will not be intended to carry a direct signal regarding the timing of interest rate liftoff, for which we have articulated a different and substantially more stringent test,” Powell said in his speech.

In response, both the S&P 500 and Nasdaq hit record highs indicating investors were happy with the Fed chief’s speech. While investors would have some time to adjust to the absence of more liquidity in the coming month, Powell was pretty clear in signaling that there was no rush to tighten policy.

“Powell understands that tapering will happen, but it’s not going to happen sooner than later,” said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.

Treasury bond yields edged lower, and the dollar weakened to fall to 92.68, while a week back, it was at a nine-month high at 93.57.

Gold, labeled as a safe haven, meanwhile hit 3-weeks highs on Friday, having its best weekly gain since May on the back of no clear timetable for tapering US stimulus spending.

Much like other risky assets, including commodities and oil, cryptocurrencies also went higher.

Bitcoin went past $49,400 thanks to Powell and is currently hovering around $49k, while Ether is also hovering around $3,250.

SOL, which has a market cap of $27 bln, hit new ATH at $94.36 a few hours back has climbed above Polkadot to claim 8th spot. DOT, a 26.7 bln coin, is meanwhile trading at just above $26, down 47% from its mid-May peak.

The total cryptocurrency market cap is now back at $2.17 trillion.

Tapering has been a hotly debated topic in recent months with a lack of consensus among Fed officials. Robert Kaplan of Dallas, James Bullard of St Louis, and Esther George of Kansas City, and Philadelphia’s Patrick Harker are in favor of “sooner rather than later,” unlike Raphael Bostic of Atlanta division who is concerned about the Delta variant’s impact.

On Friday, Fed Governor Christopher Waller also spoke in favor of moving with paring the purchase “this fall” if there’s one more good job report in the 850,000 to 1 million range.

While concerned about the “eye-popping price increases” in the housing market, Waller said a lot of it is fundamentals with millennials coming off the sidelines for the first time in a decade, adding, “I don’t think any of this is financial excess.”

While “the financial system works fine. There’s gonna be the odd assets of people employed to look at, particularly crypto assets, but I’m not going to bet Financial Stability Policy on crypto assets.”

During the speech, Powell also noted that “more progress” has been seen in the jobs market, but this is now coinciding with “the further spread of the Delta variant,” and also there’s much ground to cover to reach maximum employment.

“If a central bank tightens policy in response to factors that turn out to be temporary … the ill-timed policy move unnecessarily slows hiring and other economic activity and pushes inflation lower than desired. Today, with substantial slack remaining in the labor market and the pandemic continuing, such a mistake could be particularly harmful,” he said.

Overall, the policy is well-positioned, Powell said, adding, the Fed, as always, is prepared to adjust.

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Author: AnTy

It Is The “Largest Wealth Transfer In History” As The 99% Supports The 1% Of Crypto

After falling under $44k this week, Bitcoin price went back towards $50k to mark the start of the weekend. Currently trading around $49k, the leading cryptocurrency is now just 24.6% away from its all-time high.

Ether (ETH) is also back to hovering at $3,300 while the total market cap is now at nearly $2.19 trillion, getting all that much closer to the mid-May peak just above $2.6 trillion.

This week, Avalanche is leading the market with its 7-days gains of 165% along with Arweave, Audius, Solana, and Terra, which are up 50% to 80% during the same period. AR -9.24% Arweave / USD ARUSD $ 28.24
-$2.61-9.24%
Volume 36.71 m Change -$2.61 Open $28.24 Circulating 33.39 m Market Cap 943.17 m
9 h It Is The “Largest Wealth Transfer In History” As The 99% Supports The 1% Of Crypto 2 d South Koreans Turn to Serum (SRM) As Solana (SOL) Ecosystem Pumps 4 d Open Interest & Funding Rates Indicate “Lack of FOMO” in Cryptocurrency Market
AUDIO -9.12% Audius / USD AUDIOUSD $ 2.87
-$0.26-9.12%
Volume 110.25 m Change -$0.26 Open $2.87 Circulating 400.24 m Market Cap 1.15 b
9 h It Is The “Largest Wealth Transfer In History” As The 99% Supports The 1% Of Crypto 2 d South Koreans Turn to Serum (SRM) As Solana (SOL) Ecosystem Pumps 4 d Open Interest & Funding Rates Indicate “Lack of FOMO” in Cryptocurrency Market
SOL -6.31% Solana / USD SOLUSD $ 73.76
-$4.65-6.31%
Volume 1.51 b Change -$4.65 Open $73.76 Circulating 286.58 m Market Cap 21.14 b
9 h It Is The “Largest Wealth Transfer In History” As The 99% Supports The 1% Of Crypto 1 d BlockFi Signs NBA #1 Draft Pick Cade Cunningham As An Ambassador 1 d Solana Based DeFi Protocol, Luna Yield, Goes Dark as Customers Fear An Exit Scam: Report
LUNA -0.84% Luna Coin / USD LUNAUSD $ 0.01
$0.00-0.84%
Volume 0 Change $0.00 Open $0.01 Circulating 1.71 m Market Cap 14.19 K
9 h It Is The “Largest Wealth Transfer In History” As The 99% Supports The 1% Of Crypto 2 d South Koreans Turn to Serum (SRM) As Solana (SOL) Ecosystem Pumps 4 d Open Interest & Funding Rates Indicate “Lack of FOMO” in Cryptocurrency Market

With Bitcoin (BTC) eyeing the psychological level of $50,000 and hoping for a strong break, central banks officials set to get together at Jackson Hole, Wyoming, where Fed Chair Jerome Powell will deliver the highly anticipated speech to lay out his plans to normalize monetary policy, can affect the market sentiments negatively.

Titled “Macroeconomic Policy in an Uneven Economy,” the speech will be streamed live next week on Friday, August 27.

With discussions around tapering already started, heavy volatility is expected next week, which could affect crypto markets as well.

On Friday, the US dollar index went above 93.7, a level last seen in early November, and is currently trading at 93.458.

Gold meanwhile is currently at $1,780 per ounce, up from an over four-month low at $1,687 on August 9th.

In the crypto market, meanwhile, “the largest wealth transfer in history … from nocoiners and boomers to crypto enthusiasts” is happening, noted trade and economist Alex Kruger.

According to SpartanBlack, a partner at crypto fund The Spartan Group, it’s the other 99%, “everyone else who is not in crypto” supporting the 1% of crypto, “and the funny thing is that they have no idea they are doing it.”

He goes on to explain how the thousands of new millionaires and many billionaires as well minted in crypto are going to cash out a portion of their newfound wealth to buy houses, cars, yachts, jewelry, club memberships, etc.

This, in turn, drives up asset prices that result in real-world inflation, but it is a slow and organic process, and as such, “you don’t see that inflation happening.”

“The people who are not in crypto also happen to be the ones who are less tech-savvy and tend to have a set view of how the world works. They made their mark in the old world order, and they think all of this is a massive bubble or ponzi that will crash spectacularly. That view keeps them away, and they keep subsidizing us year after year unknowingly until at some point it becomes clear that crypto is the new new thing, and it isn’t going away,” said Spartan Black.

Overall, it is a generational wealth transfer from the old to the young, from the clueless to the tech-savvy, from the risk-averse folks to the risk-takers, and from the establishment to the guys who dare to dream up a new world order, he added.

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Author: AnTy

Coinbase Gets a ‘Buy’ Rating With A $400 Target Price as COIN Follows Bitcoin & Ether

With the initial negativity “flushed out,” COIN shares price is expected to rally as it moves in a “strong correlation” to the top crypto asset. Amidst this, the company’s head of the capital-markets group has left within just four months of taking the role.

DA Davidson analyst Christopher Brendler has given cryptocurrency exchange Coinbase a ‘Buy’ rating and a $400 target price.

As of writing, COIN shares have been trading at $280.58, up 24% from earlier last week. However, it is still down about 35% from its $429.54 peak, briefly hit on its debut day on Nasdaq on April 14, marking the top for Bitcoin price at the time.

Coinbase will be reporting its earnings this week, and this is expected to give it a further boost, now that the initial negativity has “flushed out,” according to Blue Line Capital founder and President Bill Baruch, who expects the platform’s verified users to exceed 60 million.

As COIN share price comes off of a good turn line support and having broken out of a wedge of resistance, Baruch expects the price to rally to $290-$300.

Correlation with Bitcoin & Ether

Coinbase basically continues to act as a beta play on the Bitcoin and cryptocurrency market.

“It’s a very rough proxy” based on the fact that, historically, “strong correlation” has been seen between Bitcoin and some of Coinbase’s most important operating metrics such as monthly transacting users, said BTIG’s Mark Palmer, who has a buy rating on Coinbase and a $500 price target.

BTC, along with Ether and the broad crypto market, has been trending up since July 21st. In the past two weeks, BTC has gone up 23%, Ether 42%, and the total crypto market cap has jumped over 26% during this period.

However, unlike Coinbase, which is bound to the trading pattern of the traditional markets, crypto trades 24/7.

According to Jerry Braakman, CIO of First American Trust, which manages $2 billion, it makes sense that Coinbase is correlated to the price of Bitcoin and Ethereum because the platform’s business model is “leveraging that value for revenue.”

However, Coinbase’s dependency on the leading cryptocurrency as a source of revenue has been declining, noted BTIG’s Palmer. Bitcoin represented about 44% of the exchange’s transaction revenue last year, down from 60% in 2019. He said,

“What we fully anticipate is that as Coinbase continues to diversify its platform by adding additional coins, which it’s been doing at a much quicker pace of late, and builds out its institutional prime brokerage platform, that correlation should recede.”

Capital-Markets Head has Left

Amidst all this, Brett Redfearn has left Coinbase within just four months of taking the role of the head of the platform’s capital-markets group.

Redfearn, a former official at the SEC who joined the exchange earlier this year, resigned from the firm in late July after Coinbase decided to shift its priorities away from digital-asset securities, according to the people familiar with the matter.

Just last week, Brian Brooks stepped down as the CEO of competing exchange Binance.US, the US-based entity of leading cryptocurrency exchange Binance Holdings, just three months after taking up the role due to “differences over strategic direction.”

Before becoming the head of OCC from May 2020 to January 2021, where he led efforts to provide regulatory clarity for stablecoin and digital asset custody, Brooks was the Chief Legal Officer at Coinbase.

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Author: AnTy

Gold Flash Crashes to A 4-Month Low, Bitcoin Rallies Past $46,000

In less than a week, the price of the yellow metal has fallen 7.86% to a four-month low.

The price of gold started declining last week when it was just above $1,830 to as low as $1,687 on Monday, on a day when liquidity is low due to holidays in Japan and Singapore.

But since then, bullion’s price has recovered $1,743 per ounce. However, it remains under pressure as bets mount that the US Federal Reserve may soon start paring back its massive monetary stimulus.

While the dollar held near four-month highs following an upbeat US jobs report that lifted bond yields, gold and oil prices failed to keep up and went down hard.

In the wake of the better than expected US jobs report, yields on US 10-year notes are up at 1.30%, following their lowest level since February last week at 1.177%.

Much like bullion, Brent sank almost 2%, adding to its worst weekly slump since October, on the concerns that the spread of the Delta variant would temper travel demand.

With the payrolls report coming on strong on Friday, investors continue to assess whether the Fed would now take a step towards winding back its stimulus.

In complete contrast to gold, bitcoin, the digital gold, has been recovering ever since July 21st, when BTC’s price went down to about $29,000. After surging past $45k on Sunday, BTC went further on Monday to nearly $46,120, a level that was last seen on May 17.

As of writing, BTC/USD has been trading just above $46k and may go higher, up 56% YTD and down 29.3% from its all-time high in April.

The entire cryptocurrency market is enjoying recovery, with the market cap now past $1.9 trillion. Ether is particularly enjoying much wilder price action thanks to the London upgrade with EIP 1559. Since the upgrade on Thursday, about 17,150 ETH worth more than $53.5 million have been burned.

This helped ETH rally to about $3,185 on Sunday amidst the uncertainty over crypto rules in the US infrastructure plan.

Currently, ETH is trading near $3,125, up 328.57% YTD and still 27.79% off of its May peak.

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Author: AnTy