Bitcoin as a last resort? Murmurs of crypto as reserve currency abound

Reserve currency is money held by central banks or treasuries usually for international transactions. Argentina is not going to be able to purchase a Boeing 737 MAX passenger jet, for example, with its highly inflationary peso; it will have to pay with U.S. dollars, which is why Argentina keeps dollars on hand — i.e., in “reserve.” A second basic function is to support the value of a national currency. If the Brazilian real, for instance, plummets during an economic contraction, Brazil’s central bank could bid it up again by purchasing…

Some Russian officials are being forced to sell their crypto by April 2021

Russia adopted its cryptocurrency law in January, but this legislation does not provide a direct answer to some questions, including how local officials should deal with their crypto holdings. There are at least two other legal initiatives requiring Russian public officials to declare or even get rid of their cryptocurrency holdings entirely in 2021. On Dec. 10, 2020, Russian President Vladimir Putin signed a decree obliging some public officials to disclose their crypto holdings by June 30. The decree was adopted as part of the country’s law “On Digital Financial…

Singapore Exchange to streamline trading processes with blockchain tech

The use of DLT can bring efficiencies to many aspects of the lifecycle of financial products, from listing and issuing, through to settlement of trades. Singapore’s stock exchange, SGX, has announced a joint venture with investment firm, Temasek, to use distributed ledger technology to streamline the issuance and trading of financial products listed on its platform. According to a Jan. 22 report from Nikkei Asia, this will initially consider bonds, funds and sustainable financial products, and may be extended in future to cover other asset classes such as equities. SGX…

The virtuous cycle of social engagement with crypto

One of the tropes that observers commonly invoke to explain the forces behind the crypto markets’ surge at the end of 2020 and in early 2021 is that the process has been mainly driven by the inrush of institutional investment.  While there are many good reasons to believe that the race among the big players of traditional finance to get into digital assets has indeed provided much fodder for the blast, the overwhelming focus on this narrative can make it seem that retail investors had a little role to play.…

Bitcoin price bounces above $32K as MicroStrategy ‘buys the dip’ with $10M

Bitcoin (BTC) showed signs of a resurgence on Jan. 22 after a trip below $30,000 produced fresh buyer support. BTC price seals 8.5% daily bounce Data from Cointelegraph Markets and TradingView showed a stronger trading day for BTC/USD on Friday, with daily gains at 8.5% at the time of writing. The turnaround follows a turbulent 24 hours in which Bitcoin slid to $28,950 — a key level when it comes to support from whales and only its second dip below $30,000 this year. BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView At…

What the Brazilian market can expect for 2021

2020 will be remembered as one of the most difficult years for contemporary societies: Countries and entire populations have faced lockdowns and economic crises, financial markets still suffer from the severe impacts of the economic recession, and more than 2 million lives have been taken by COVID-19. Despite this, other sectors have been impacted in other ways during the severe global health crisis — which still seems far from over, even though vaccines are beginning to be distributed in wealthy countries. Economies have radically digitalized, hedge assets have attracted mistrust,…

Bitcoin miners facing chip shortage amid skyrocketing demand

A chip shortage is significantly affecting the Bitcoin mining hardware distribution chain, according to Reuters on Jan. 22,  Indeed, Bitmain — one of the major Bitcoin miner makers — has seen its inventory sold out until August 2021, according to information on its website. Apart from being out of stock, Bitmain’s mining rigs are now at a massive price premium. For instance, back in November 2020, the Antminer S19 shipped for $1,897 a unit. As of the time of writing, the same miner is priced at $2,767 on the company’s website…

Alleged ‘ghost’ Bitcoin mining firm traded on Nasdaq faces class action lawsuit

Bit Digital (BTBT), a Bitcoin mining company traded on the NASDAQ stock exchange, is the subject of a class-action lawsuit that alleges the company fabricated the extent of its Bitcoin (BTC) mining operations. According to the lawsuit which was filed in the Southern District New York court on Jan. 20 by plaintiff Anthony Pauwels, Bit Digital misled investors and made materially false claims about the extent of their Bitcoin mining business, causing significant financial harm for investors. Specifically, the plaintiffs reference an investigative report by J Capital Research which claims…

3 reasons Bitcoin tumbled below $30,000 in a surprise overnight correction

The price of Bitcoin (BTC) is continuing to reject the $35,000 resistance level, falling below $30,000 briefly overnight on Jan. 22. BTC has pared some losses since, bouncing above $31,500. At these prices, however, BTC/USD is headed for its worst week ever, losing over $5,000 in the past four days, as the bulls attempt to establish $32,000 as new support. BTC/USD 1-week candle chart (Coinbase). Source: Tradingview There are three main reasons why the price of Bitcoin dropped so steeply overnight. First, the options market was overheated with growing put options.…

VanEck files with SEC for ETF that tracks crypto companies’ performance

VanEck, a major American investment management firm, is making another attempt to launch a digital asset-related exchange-traded fund, or ETF. According to a Jan. 21 filing with the United States Securities and Exchange Commission, VanEck’s new ETF is called the Digital Assets ETF. The new fund would track the price and performance of the Global Digital Assets Equity Index run by its subsidiary MV Index Solutions. According to the document, the new Digital Assets ETF “normally invests” at least 80% of its total assets in securities that comprise the Fund’s…