Notes 9/27: Bitcoin Price, Ethereum PoW Hash Rate

Bitcoin price rose in tandem with equities this morning. The cryptocurrency, which had traded below $20,000 most of last week, breached that mark and climbed to a high of $20,356.87 at 8:57 EDT. It has retrenched those gains, since, and is currently trading at $18,878, down almost 1.47% from its price the same time a day ago. In explaining the price movements of cryptocurrencies, analysts … Continue reading Notes 9/27: Bitcoin Price, Ethereum PoW Hash Rate

Notes 9/21: FOMC and Bitcoin Price, Retail CBDCs, and Tether In Trouble Again

It was unthinkable some years ago. Fed Day – a day when the Federal Reserve Open Markets Committee (FOMC) meets – is fast becoming an important ritual in bitcoin’s calendar because it determines the cryptocurrency’s future price trajectory. Cryptocurrency markets are poised in anticipation of Fed Chairman Jerome Powell’s announcement his afternoon regarding interest rate hikes. Last month, Chairman Powell indicated that consumers should be … Continue reading Notes 9/21: FOMC and Bitcoin Price, Retail CBDCs, and Tether In Trouble Again

Notes 9/16: ETHW Crash, ETH As a Security

The effect of Ethereum’s transition from Proof of Work (PoW) to Proof of Stake (PoS) on the price of its native token ether has receded. Investors bid up ether’s price in the weeks leading up to the merge. It remained flat during the actual event. And now, it is in decline. After reaching a high of $2,007 slightly more than a month ago, ether prices … Continue reading Notes 9/16: ETHW Crash, ETH As a Security

Notes 9/15: The Merge, Ether As Wall Street Asset, and Payments Industry Regulation

Ethereum’s Merge – a transition from the Proof of Work consensus mechanism to Proof of Stake – was finalized at 6:59 AM this morning. The Merge has been in the making for many years and was implemented by nine teams and more than 100 developers spread out across the globe. As has been repeated many times across multiple media platforms, the event cuts down the … Continue reading Notes 9/15: The Merge, Ether As Wall Street Asset, and Payments Industry Regulation

Notes 9/13: Bitcoin Falls On Weak CPI Data, ETHW Sputters to Life, and the Max Pain of Mining Crypto

Crypto markets were awash in a sea of red after the release of unexpected figures for the Consumer Price Inflation (CPI) index. Bitcoin was down by almost 6% from its price 24 hours ago and trading at $20,964.21. Ethereum tumbled by 9% and is changing hands at $1,583.35. The overall market capitalization of cryptocurrency markets 5.1% to $1 trillion. CPI rose by 0.1% and declined … Continue reading Notes 9/13: Bitcoin Falls On Weak CPI Data, ETHW Sputters to Life, and the Max Pain of Mining Crypto

SEC Chief Gensler Will Work With Congress to Ensure CFTC Regulates “Non-Security” Crypto Tokens

There were no surprises in the Securities and Exchange Commission (SEC) chief Gary Gensler’s conversation with Coindesk this morning. He hammered his main talking points – most crypto tokens are securities and crypto services should register with his agency – throughout the interview. In a later industry conference, however, he said that he was looking forward to working with Congress to pave the way for … Continue reading SEC Chief Gensler Will Work With Congress to Ensure CFTC Regulates “Non-Security” Crypto Tokens

Notes 9/8: Ethereum’s Merge and Democratization, Ethereum’s Trends

One of the benefits being touted about Ethereum’s Merge is that it will “democratize” the blockchain by making it possible for anyone to participate in its network. That claim about the event, which will transition the blockchain from an energy-intensive Proof of Work (PoW) mining to the Proof of Stake (PoS) consensus mechanism, is similar to the one made about Bitcoin when it was first … Continue reading Notes 9/8: Ethereum’s Merge and Democratization, Ethereum’s Trends

Notes 9/6: The Merge Boosts Ethereum, Binance Provides A Leg Up To USDC

The Merge – Ethereum’s anticipated transition from an energy-intensive Proof-of-Work (PoW) consensus mechanism to Proof-of-Stake (PoS) continues to move markets in cryptocurrency. The Bellatrix Upgrade, initiated on the Ethereum chain this morning, pushed the price of ether, Ethereum’s native token, up by 5% to $164.37 from its price 24 hours ago. On a weekly basis, the price of ether is up by 10%. Momentum for … Continue reading Notes 9/6: The Merge Boosts Ethereum, Binance Provides A Leg Up To USDC

MakerDAO’s Unlikely Evolution

The fun never stops in cryptocurrencies. When they are not tilting at the windmills of a surveillance state, crypto purists are devising methods to escape it. The latest attempt comes from MakerDAO, a lending platform that is also home to Dai, the world’s fourth biggest stablecoin by market capitalization. Rune Christensen, one of its founders, proposed an “endgame” for the stablecoin to convert it into … Continue reading MakerDAO’s Unlikely Evolution

What Will September Bring for Bitcoin and Crypto Markets?

For Bitcoin and the larger crypto ecosystem, this summer wasn’t a particularly warm one. In fact, a series of bankruptcies and scandals by major players crashed the ecosystem and prices plummeted. Bitcoin price has fallen by roughly 13% from the start of August and the overall market cap for cryptocurrencies declined by 8.1% to $992 billion in the same period, based on data from Coinmarketcap. … Continue reading What Will September Bring for Bitcoin and Crypto Markets?

Powell Reaffirms Aggressive Stance To Rate Hikes. What Does it Mean For Crypto?

Equities fell and crypto markets plummeted after Federal Reserve Chairman Jerome Powell reiterated his agency’s aggressive stance towards future interest rate hikes. The Dow Jones Industrial Average fell by 1.85% while the S&P 500 and Nasdaq Composite witnessed declines of 2.18% and 2.71% respectively immediately after the Fed’s speech. Bitcoin price fell by almost 5% following Powell’s speech before recovering. As of this writing, it … Continue reading Powell Reaffirms Aggressive Stance To Rate Hikes. What Does it Mean For Crypto?

Tether’s Misrepresentations Continue In Its Latest Reserves Report

Controversial stablecoin Tether’s holdings of commercial paper fell and its cash and bank deposit holdings rose, according to “reasonable engagement report” released yesterday. The report provides a breakdown of the reserves backing tokens circulating in the market. Tether claims that its holdings of commercial paper and cash and bank deposits increased by 58% and 32% respectively. [Commercial paper is considered a risky investment because its … Continue reading Tether’s Misrepresentations Continue In Its Latest Reserves Report

Tornado Cash Sanctions Become Rallying Cry For Crypto Privacy Activists

The fallout from the Treasury Department’s sanctions on Tornado Cash continued this week. The department’s Office of Foreign Assets Control (OFAC) claims that the crypto-mixing service, which is a decentralized application (dApp) running off Ethereum’s blockchain, was used by hackers in North Korea to launder more than $7 billion worth of cryptocurrencies. Privacy activists in crypto are decrying the sanctions as an assault on “free … Continue reading Tornado Cash Sanctions Become Rallying Cry For Crypto Privacy Activists

Tether Hires New Accounting Firm 

The world’s biggest stablecoin has switched accounting firms again. In an announcement this morning, Tether said it had hired BDO Italia, a subsidiary of BDO Inc., one of the world’s biggest accounting firms, to produce attestations about its reserve holdings – a basket of assets that is used to back up and facilitate quick redemption of Tether tokens. It also said that it was planning … Continue reading Tether Hires New Accounting Firm 

How Are Bitcoin Miners Handling The Crypto Winter?

One of the constituencies affected by the slump in bitcoin prices is its mining community. A decline in bitcoin’s price makes the cryptocurrency less profitable to mine because revenues fall. Bitcoin mining is a capital-intensive business. It requires significant investments in real estate, mining rigs, electricity, and, in some instances, energy sources. The main source of revenues for miners, after making these investments, are transaction … Continue reading How Are Bitcoin Miners Handling The Crypto Winter?

Notes 8/16: Crypto Banks

Establishing an interface with banks has been one of the biggest problems for cryptocurrency businesses in the last ten years. Bitcoin’s dubious utility, an absence of regulatory guidance and volatility in crypto markets has made mainstream banks wary of processing transactions that involve cryptocurrencies. Crypto companies have, instead, turned towards smaller institutions. Three banks – Silvergate Bank, Signature Bank, and Customers’ Bank – have garnered … Continue reading Notes 8/16: Crypto Banks

Notes 8/12: Chandler Guo’s Crusade, the Tornado Cash Circus

Chandler Guo is what is known as an OG (Original Gangster, for the uninitiated) in crypto circles. A former beef salesman, Guo made his cryptocurrency millions by setting up a mining farm in Inner Mongolia and selling it for a massive payday during the asset class’s early days. He reportedly lives in a California mansion now and owns an estate, where he grows vegetables and … Continue reading Notes 8/12: Chandler Guo’s Crusade, the Tornado Cash Circus

Notes 8/11: Blackrock Launches Bitcoin Trust And Ethereum’s Merge

The world’s biggest asset manager is launching a private trust for Bitcoin. The Blackrock Bitcoin Private Trust will track the cryptocurrency’s price at spot exchanges and is open to the firm’s institutional clients in the United States. In a statement on its website, the asset manager said it had witnessed “substantial interest” from institutional clients interested in investing in cryptocurrency using its products. Blackrock had … Continue reading Notes 8/11: Blackrock Launches Bitcoin Trust And Ethereum’s Merge

SEC Wants More Information About Digital Assets Holdings From Hedge Funds

The Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC) want to know more about trading strategies employed by hedge funds and their digital asset holdings, according to multiple reports this morning. The two agencies have approved a proposal that will change Form PF – filed by private funds – to require more disclosures about these holdings. Currently, digital asset holdings are reported … Continue reading SEC Wants More Information About Digital Assets Holdings From Hedge Funds

Coinbase Reports Disappointing Earnings, Reflecting Crypto Winter

There was not much to cheer about in Coinbase’s first quarter earnings for 2022 yesterday. If anything, they provided more proof of the pain in crypto markets. North America’s biggest cryptocurrency exchange by trading volume reported losses and a revenue decline of more than a billion dollars in its latest earnings period. The exchange, among the pioneers of crypto industry, has previously benefitted from a … Continue reading Coinbase Reports Disappointing Earnings, Reflecting Crypto Winter

Notes 8/9: Tornado Cash Gets Sanctioned, Ether Price Surges As Gas Prices Fall

The Office of Foreign Assets Control (OFAC), a unit of the Treasury Department, has sanctioned crypto mixing service Tornado Cash. This means that it cannot be used on American soil. Tornado Cash is a decentralized app on the Ethereum blockchain that enables anonymization of transaction data. According to the Treasury department, it has been used by hackers, notably the North Korea-linked Lazarus group, to launder … Continue reading Notes 8/9: Tornado Cash Gets Sanctioned, Ether Price Surges As Gas Prices Fall