Connect with us

Crypto

Yellen’s Positive Remarks About Biden’s Crypto EO Push Bitcoin Past $41,000

Published

on

It only took an unintentionally flattering remark from a high-ranking US official to propel Bitcoin above the $41,000 level.

Bitcoin (BTC) advanced early on Wednesday, boosting the entire crypto market, as US Treasury Secretary Janet Yellen’s inadvertently disclosed remarks indicated that US President Joe Biden’s long-awaited crypto directive will take a constructive approach to regulating the digital asset sector.

The crypto order requires steps to foster innovation while managing industry risks. The secretary’s statement appeared in print a day early, reportedly because of a an error, and was promptly removed, but was retained on a web cache.

Bitcoin, which has been trading below $40,000 for the last seven days, rebounded more than 8% Wednesday, hitting $41,000 once more.

Related Article | Leading News Outlets In Ukraine Aim To Secure $1 Million By Selling NFTs

Crypto EO Detailed Report

According to Yellen, the US Treasury will collaborate with interagency partners to develop a detailed report on the future of money and related payment systems in accordance with Biden’s EO.

Since early January, Biden’s White House team of financial experts has been working on an executive order on digital assets, which an unnamed source said will help bring “coherence to what the US government is trying to accomplish in this arena.”

Bitcoin was trading around $38,135 at this time Tuesday, prior to Yellen’s comments. Nonetheless, BTC quickly recovered to surpass $41,500 shortly after the statement was delivered.

BTC total market cap at $795.45 billion on the daily chart | Source: TradingView.com

Yellen Remarks Lift Bitcoin, Other Cryptos

Notably, Bitcoin is not the only cryptocurrency that has experienced a rally. Evidently, Yellen’s partial disclosure favors all cryptos in the top ten global crypto rankings.

According to Coingecko data, Ethereum (ETH) has increased by more than 7% in the previous 24 hours and is presently selling at roughly $2,715 per coin.

Similarly, Binance Coin (BNB) is up 4.5%, while Cardano (ADA), Terra (LUNA), Ripple (XRP), Solana (SOL), and Avalanche (AVAX) are up 8.5%, 18.4%, 5.6%, and 3%, respectively.

“Based on Yellen’s words, the crypto EO is a welcome development that calls for a coordinated and comprehensive approach to digital asset regulation that promotes responsible innovation,” Cameron Winklevoss of Gemini Trust wrote on Twitter.

Related Article | Billionaire Investor Says Crypto Outlook Is ‘Very Bullish’ For Bitcoin

Mixed Reactions

Thus far, notable members of the industry have had a mixed reaction. Evan Van Ness, founder of Week In Ethereum, described the speech as a “nothingburger of a statement.”

However, Altered State Machine founder Aaron McDonald expressed a more somber reaction to the announcement.

McDonald stated in a tweet that Yellen’s remarks demonstrate her want to “ensure we keep the most potent weapon in our arsenal – the USD as global settlement.”

Traders anticipate that the Biden administration will enact stricter cryptocurrency laws as part of its efforts to prevent Russia from escaping the mountain of sanctions put on the country for its ongoing invasion on Ukraine.

However, Yellen’s favorable comments appear to indicate that the law will certainly benefit the new asset class.

Featured image from Decrypt, chart from TradingView.com

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

Crypto

Why Gold Is Beating Bitcoin In 2022

Published

on

Bitcoin continues to underperform as a general “risk-off” sentiment has investors driving toward gold as a safe haven asset.

Not Risking It

Concerns about the Russo-Ukrainian war continue. The U.S. inflation struggles at a four-decade high and Fed rate hike fears prevail. The uncertainty extends to the world economy as a recession is expected instead of a recovery. The IMF’s managing director Kristalina Georgieva called it “a crisis on top of a crisis.”

“The war is a supply shock that reduces economic output and raises prices. Indeed, we forecast inflation will accelerate to 5.5 percent in advanced economies and to 9.3 percent in emerging European economies excluding Russia, Turkey, and Ukraine. ” The IMF stated last week.

Reuters recently quoted Commerzbank analyst Daniel Briesemann, who talked in a note about the factors that have “lent buoyancy to gold in recent days,” mentioning the “strong buying interest on the part of ETF (Exchange Traded Fund) investors” and news about the Ukraine war.

“Russia appears to be preparing to launch a major offensive in the east of the country – that is generating considerable demand for gold as a safe haven,” the analyst said.

This summarizes the “risk-off” sentiment at the moment. As expected, equities suffer as investors are selling risky assets and purchasing the ones negatively correlated to the traditional market. Thus, the crypto space is struggling alongside de stocks market and gold is rising.

Bitcoin Outperformed By Gold

Data from Arcane Research’s latest weekly report notes that it has been a gloomy year for the “digital gold.” In the first three weeks of 2022, Bitcoin sank 25% and it is still down by 18% in the year despite its slight recovery.

Similarly, Nasdaq records a 19% decline in the year, having underperformed against bitcoin “by a small margin,” notes the report, adding that “This is surprising given that bitcoin has tended to follow Nasdaq, albeit with higher volatility.”

The general fear over geopolitical and macroeconomic uncertainty has given gold the safe-haven asset spotlight once more. The asset outperformed all the other indexes seen below with a 4% gain.

Physical gold outperforming “digital gold” in 2022 | Source: Arcane Research

Meanwhile, the currency market is performing with “the same risk-off patterns.” The Dollar has been proving its “risk-off” dominance as the US Dollar Index (DXY) is up 7%. The Chinese yuan has taken a hit over concerns about the country’s “zero-covid” policy –which creates issues for the global supply chain– and the slowing down Chinese economy. In contrast, investors have been running to the US Dollar for safety.

Bitcoin supporters usually refer to the coin as “digital gold” alleging it is a safe haven asset, and this narrative had held well while BTC had been “uncorrelated with most other major asset classes,” but the tide is shifting with the 2022 scenario as investors are rather placing the coin “into the risk-on basket”.

A previous Arcane Research report indicated that bitcoin’s 30 -day correlation with the Nasdaq is revisiting July 2020 highs while its correlation with gold has reached all-time lows.

A pseudonym traded noted that “As Bitcoin adoption goes on and more institutional investors enter the market, the correlation of BTC and stocks becomes more and more tight. That is a paradigm that the crypto world struggled to come to terms with in the past but is now more real than ever. A healthy stock market is good for Bitcoin.”

Meanwhile, the general sentiment of traders seems to be bearish, with many saying that the coin could visit the $30k level soon.

Bitcoin
Bitcoin trading at $39k in the daily chart | BTCUSD on TradingView.com

Source link

Continue Reading

Crypto

Attendees talk the future of NFTs

Published

on

The crypto community headed to Nassau in the Bahamas this week for the inaugural Crypto Bahamas conference.

Like most conferences, panels fill up the agenda and on Wednesday the topics at Crypto Bahamas ranged from NFTs to crypto in sports and to asset allocation in Web3. During one particular conversation, titled Evolution of NFTs: Culture, Utility and Regulation, panelists had some insightful musings on the NFT market.

To put the Crypto Bahamas conference into context, Sam Bankman-Fried’s cryptocurrency exchange FTX moved its headquarters from Hong Kong to the Bahamas in Sept. 2021. It recently inked a multi-year partnership with Anthony Scaramucci’s investment firm SkyBridge Capital, and its events arm SkyBridge Alternatives, or SALT. They jointly presented the conference.

That’s why the NFT panel consisted of multiple perspectives from Tristan Yver, head of strategy at FTX U.S., Joseph Doll, attorney at Fenwick law firm, Roham Gharegozlou, the chief executive officer at Dapper Labs, and Sarah Hammer, the managing director of The Stevens Center for Innovation in Finance at The Wharton School. Zack Guzman, writer for the Meta-owned newsletter platform Bulletin, moderated.

Gharegozlou pointed out how new the NFT market truly is when “most people have only been thinking about it for a year and a half,” making valuations “very immature.” As the CEO of Dapper Labs, the company behind NBA Top Shot,  Gharegozlou recognized that “utility, rewards and the how you value and NFT is primarily based on the strength of that of the community.”

He added that a good way for an NFT collection to build a strong community is to have multiple tiers of scarcity. In the case of NBA Top Shot, at the higher price end there is extreme scarcity, but there are also millions of “common” moments so that people can “get their first NFT and see how it feels without breaking the bank.” 

Tristan Yver echoed that the current valuation and pricing model for NFTs is based on a collective perception on value based on the amount of people willing to buy an asset for a certain amount. He anticipated a “movement away from this consensus view to a more unique singular view where people buy things that resonate with them rather than what resonates with a larger community.”

Joseph Doll chimed in to say that “communities need to be thoughtful about democratizing access.” There are some “massive” barriers to entry to certain projects, he said, including not being early enough or not having enough capital at the time. He questioned, “That’s not what crypto is about, right? It’s kind of about the exact opposite of that.” Democratization, he suggested, can come in the form of derivative projects at better price points.

Another important point brought up by Yver was the reality of scams, especially on Discord and Twitter. He said that “we need to move past security aspects to be able to really bring in the next large mass of users.” He recommended talking among family and friends or asking a Discord moderator to make sure “you click the right link when minting that NFT” because “wallet security sucks right now.”

Gharegozlou even said that Elon Musk, the new owner of Twitter, should use Web3 to fix Twitter’s fraud problem, just as Discord should use Web3 authentication and verification as well. “Once NFT’s are the sort of identity bridge across all these different social networks, identity and assets, authenticity, provenance,” then the system can be more resilient he added.

When asked what “main alpha” the audience should bear in mind, Doll said to engage with and be part of these NFT communities even if it’s “scary,” because getting scammed is a “part of the journey.”

Sarah Hammer, who leads the Cypher Accelerator at Wharton business school, said that the school is launching an incubator specifically for NFT projects in partnership with Dapper Labs because the “NFT model is a business model for the future.” She emphasized that the greatest way to grow and innovate in the space is to increase education efforts in order to get more people learning and working together.

Related: Goldman Sachs reportedly eyes FTX alliance with regulatory and public listing assistance

Recently the Bahamian government allowed residents to use digital assets, including the world’s first central bank digital currency, or CBDC, to pay for taxes in 2022.