Alongside Bitcoin’s drop under $25,000, it is important to recall MicroStrategy’s CFO’s comments. The comments were regarding the possibility of getting a margin call at $21,000 on the company’s huge BTC holdings.
On the May 3 earnings call, Phon Le, the firm’s new Chief Financial Officer, described the collateralization method on MicroStrategy’s Bitcoin position. He assured that they need not put extra cash into their holdings. As MicroStrategy prepares its first margin call, investors are at ease. This is due to the large liquidity collateral at the company. The company’s current capital is more than sufficient to support the present position and begin a fresh one.
Coin Center takes US Treasury to court over alleged financial spying
Coin Center filed a lawsuit against the Treasury Department in federal district court — challenging the enforcement of Section 6050I’s reporting mandate. Coin Center, a Washingon, DC-based non-profit blockchain advocacy group, filed a lawsuit against the United States Department of the Treasury for allegedly provisioning an unconstitutional amendment in the controversial infrastructure bill.
The 6050I amendment requires individuals and businesses to report information related to all incoming transactions worth $10,000 or more, which includes the sender’s name, date of birth and Social Security number. Coin Center, in its announcement, highlighted how the amendment affects the entire crypto community, including the NGOs that receive anonymous donations and nonfungible token (NFT) artists who will have to reveal their client’s personal information to the government.
True Global Ventures doubles down on Web3 with $146M ‘follow-on’ fund
The TGV4 Plus Follow On Fund was led by a group of 15 general partners who committed over $4 million on average (over 40%) into the fund.
Twitter and Stripe roll out USDC payout program for creators via Polygon
On Friday, Twitter (NYSE:TWTR) and Stripe announced the rollout of crypto payouts for Stripe Connect. As told by the two companies, a select group of creators on Twitter will soon be able to receive their earnings on the platform in the form of the USD Coin (USDC) stablecoin.
Crypto exchange Kraken is set to launch in UAE as regional competition heats up
Kraken will open an office in Abu Dhabi and become the first exchange to offer UAE dirham trading after receiving a full license to operate in the country, Curtis Ting, Kraken’s managing director for Europe, the Middle East and Africa, told CNBC.
A sense of “greater regulatory clarity” is the reason for the influx of cryptocurrency businesses in Dubai and Abu Dhabi, according to Citi.
The Middle East is one of the fastest-growing cryptocurrency markets in the world, making up 7% of global trading volumes, according to Chainalysis.
US Treasury Dept sanctions 3 Ethereum addresses allegedly linked to North Korea
The United States Treasury Department has added three Ethereum wallet addresses to sanctions allegedly linked to the hacker group responsible for the theft of more than $600 million in crypto from nonfungible token game Axie Infinity’s Ronin sidechain.
The new HM Treasury regulations: The good, the bad and the ugly
As the 2021-2022 United Kingdom tax year finished on April 5, 2022, Her Majesty’s Treasury announced they were paving the way for the U.K. to become a global crypto asset technology hub. This could mean that the previously not particularly crypto-friendly U.K. is changing its strategy and trying its hand at making crypto investments more attractive. But what are the potential scenarios at play?
The world’s largest investment company BlackRock will allow clients to invest in cryptocurrencies
The world’s largest financial asset management company BlackRock is preparing to offer customers products for trading cryptocurrencies. This writes CoinDesk, citing sources.
📌 The company, which manages more than $10 trillion in assets for institutional investors, intends to enter the cryptocurrency space with the addition of “trading support for clients and then its own lending institution.” In other words, customers will be able to borrow from BlackRock against cryptocurrency collateral.
📌 One source said that BlackRock, whose customers include pension, trust and government funds, plans to organize cryptocurrency trading through its Aladdin (from “Asset, Liability, Debt and Derivative Investment Network,” meaning Asset, Liability, Debt and Derivative Investment Network) investment platform. The timing of the initiative’s launch remains unknown.
McDonald’s plans to open a meta-universe with a virtual restaurant
McDonalds plans to offer a virtual restaurant with real and virtual goods, as well as home delivery of virtual goods.
This is evidenced by the new trademark applications that the company has filed. What’s interesting is that McDonald’s often trolls the cryptocurrency community, urging them to take their jobs after every Bitcoin drop.
Tesla made $627 million on bitcoin investments
In 2021, world-renowned electric car maker Tesla earned $627 million from its bitcoin investments.
📌 According to the company’s financial report for the last year, the company spent $1.5 billion buying bitcoins. Tesla sold $128 million worth of coins during 2021, and as of December 1, the value of coins on the company’s balance sheet reached $1.99 billion.
📌 Thus, the investment in the digital asset generated a profit of $627 million, while the profit of $499 million remained unrealized.
“We will continue to follow our investment strategy to meet our liquidity and risk reduction objectives. It includes purchases of U.S. Treasury securities, equities and digital assets.”
“We believe in the long-term potential of cryptocurrencies as an investment vehicle and a liquid alternative to cash,” Tesla said in the report.
The trading volume on decentralized Ethereum exchanges exceeded $1 trillion in 2021. The segment leader Uniswap accounted for more than 64% ($686 billion). SushiSwap exceeded $156 billion, Curve – $84 billion.
The year 2021 opened a lot of L2 solutions to the cryptocurrency community to scale Ethereum. The total blocked liquidity in such protocols exceeded $5.5 billion by the end of the year. Arbitrum remains the segment leader ($2.4 billion). The top three are dYdX and Loopring with almost $1 billion and more than $550 million, respectively.
Bitcoin is ‘integral part of digital asset revolution’, says IMF
IMF economist Tara Iyer said that “Crypto assets such as Bitcoin have matured from an obscure asset class with few users to an integral part of the digital asset revolution”, adding this transition comes along with financial stability concerns.
In absolute terms, the overspills from Bitcoin to global equity markets are significant, explaining about 14% to 18% of the variation in equity price volatility and eight to 10% of the variation in equity returns.
Pakistan’s central bank reportedly wants to ban crypto
Pakistan’s finance and law ministries are yet to make a decision on a potential blanket ban on crypto in the country. The State Bank of Pakistan (SBP) is reportedly seeking to ban all cryptocurrency transactions in Pakistan.
Pakistan’s Sindh High Court reportedly held a hearing related to the legal status of cryptocurrencies in the country, in which several Pakistani authorities, including the SBP, submitted a document to the court, arguing that cryptocurrencies like Bitcoin (BTC) are illegal and cannot be used for trade.
Tether has blocked 160 million USDT
According to Etherscan, stabelcoin issuer Tether recently froze three addresses containing over $160 million worth of USDT.
A company spokesperson stated that, Tether has blocked 3 addresses with a total of $160 million at the request of law enforcement, and at this time they can’t disclose details.
Recall: Tether has previously stated on multiple occasions that it regularly cooperates with regulators to oversee suspicious accounts, perhaps this is just the beginning
Visa survey finds 25% of firms willing to accept cryptocurrency payments
About 25 percent of small businesses in nine countries would accept cryptocurrencies as a form of payment, according to the latest Visa Inc. survey.
📌 The survey was conducted among 2,250 small business owners from the United States, Canada, Brazil, Singapore, Hong Kong, the United Arab Emirates, Germany, Ireland and Russia.
📌 The researchers found out that digital money can become a universal means of payment. In addition, Visa surveyed 1,000 other adults in the U.S. and 500 adults in nine countries.
“I think people feel safer with cryptocurrencies,” said Visa global director of commercial sales and acquisitions Janie Mundy.
📌 While the use of bitcoin and other cryptocurrencies has increased globally over the past two years, and digital assets are popular with investors of all levels, they are still not a payment instrument.
The number of U.S. cryptoinvestors increased by 70% in 2021
According to the latest survey conducted by cryptocurrency exchange Huobi, the majority of cryptocurrency owners from the United States made their first crypto investments in 2021.
📌 The survey covered 3,100 U.S. adults and was designed to gauge respondents’ knowledge of cryptocurrencies, their sentiments and attitudes toward the crypto market. The study found that 68% of respondents first learned about crypto and started buying it in 2021. 21% of respondents started investing more than two years ago. 12% of Americans surveyed made their first crypto investments in the last four years, and 9% got into digital currencies more than four years ago.
📌 However, according to the survey results, Americans are not investing too much in crypto. 46% of those surveyed have invested $1,000 or less in cryptocurrency. 25% reported owning between $1,000 and $10,000 in digital currencies.
On-Chain Data Shows Number of ETH Holders At All-Time High
There are now over 68 million Ethereum addresses holding a balance, showing steady growth despite a declining price.
The number of Ethereum addresses holding ETH is at an all-time high. Transactions are also trending upward, with the number of daily ETH transactions at approximately 1.2 million.
Coinbase partners with Mastercard
Coinbase has partnered with Mastercard to simplify the NFT buying process for regular users.
Coinbase believes that: “Just as we first helped millions of people access Bitcoin in an easy and reliable way, we want to do the same with NFT.”
To recap: Coinbase recently launched a peer-to-peer NFT marketplace called Coinbase NFT. And the aggregate trading volume of NFT has grown almost 400 times in a year.
UK will tighten the terms of cryptocurrency advertising
📌 The U.K. Treasury Departmentannounced that it will take tough action against “misleading cryptocurrency advertising. Such campaigns will be brought in line with the rules applicable to traditional finance, “ensuring their honesty and clarity.
📌 Only organizations already regulated by the Financial Conduct Authority (FCA) or the Bank of England will now be able to carry out crypto-advertising campaigns.
📌 The statement notes that while about 2.3 million Britons own cryptocurrencies, awareness of the asset class is declining. In this regard, most advertising is aimed at retail investors with low knowledge, which makes them bear significant financial risks.
📌 The agency emphasizes that strengthening consumer protection will not be accompanied by any risks for innovation.
The owner of exchanges don’t really care the price. THey are doing business to print profit/revenue in every month/quarter. Binance is a big player in all exchanges. The last crash at last Saturday was definitely created by Binance.
Open Interest was swept out bigly. In the eyes of traders, this was crash/market bloody/nightmare/Fear but in the eyes of exchanges, this was harvest after long time accumulation of overleverage of long positions. That happened one time per month no matter where/how price btc is going
Ethereum (ETH), the second cryptocurrency, is often criticized for high transactional fees (gas). At the same time, on average, transactional fees are plunging for six weeks in a row.
Ethereum average gas fee lost 50% in less than two months. According to data shared by third-party trackers, Ethereum (ETH) gas, i.e., the dynamic commissions all Ether and ERC-20 transactions are charged with, have plunged since late October.
The volume of destroyed ethers as commissions exceeded the equivalent of $ 4.5 billion. Recall that ETH coins are burned with each transaction, and this has been happening since August 5, 2021.
Florida governor to allow businesses to pay state fees in cryptocurrency
📌 Florida Governor Ron DeSantis has unveiled a plan that would allow businesses in the state to pay state fees in cryptocurrency. The cryptocurrency-related proposals, the official has included in the state’s 2022 budget, Bloomberg reports.
📌 DeSantis also said that the state will launch pilot programs to explore the use of blockchain technology in Medicaid (state Medicaid program) payments and vehicle registration. The latter will be run with the participation of the Florida Department of Highway Safety and Motor Vehicles.
📌 The governor said crypto-enthusiasts are moving to South Florida, where officials and businesses have supported the blockchain industry. For example, the Miami Heat club’s basketball stadium has been renamed FTX Arena. FTX is a cryptocurrency exchange owned by billionaire Sam Bankman-Fried.
As a result of the collapse of bitcoin to 42,000, liquidations of ~ $ 2.4 billion were recorded. In total, the positions of more than 380 thousand traders were taken out. This is not a record yet, of course, but in history, such powerful plums often led to a rapid reversal.