Banking giant Goldman Sachs says that China is weathering the biggest capital flight since 2016 amid struggling equities markets. In a report seen by the South China Morning Post (SCMP), Goldman says foreign investors sold off a net total of $3.3 billion in domestic Chinese stocks, bringing the total outflows for October to $5.1 billion. […]
The post China Sees Biggest Capital Flight in Seven Years As $5,100,000,000 Exits Struggling Stock Market: Report appeared first on The Daily Hodl.
Stablecoin activity has been increasingly occurring through entities that aren’t licensed in the United States, according to Chainalysis.
The United States government may be losing regulatory oversight of the stablecoin market, according to a new report by blockchain research firm Chainalysis.
Stablecoin activity has been increasingly occurring through entities that aren’t licensed in the United States, Chainalysis stated in its latest North America cryptocurrency report released on Oct. 23.
According to Chainalysis’ findings, the majority of stablecoin inflows to the 50 biggest cryptocurrency services have shifted from U.S.-licensed services to non-U.S.-licensed services since spring 2023.
As of June 2023, about 55% of stablecoin inflows to the top 50 services were going to non-U.S.-licensed exchanges, the report stated.
The study suggested that the U.S. government has been increasingly losing its ability to oversee the stablecoin market, while U.S. consumers have been missing opportunities to engage with regulated stablecoins.
Related: CoinShares says US not lagging in crypto adoption and regulation
“Though U.S. entities originally helped legitimize and seed the stablecoin market, more crypto users are pursuing stablecoin-related activity with trading platforms and issuers headquartered abroad,” Chainalysis wrote. The firm stated that U.S. lawmakers have yet to pass stablecoin regulations as Congress is still considering related bills like the Clarity for Payment Stablecoins Act and the Responsible Financial Innovation Act.
Despite a drop in licensed stablecoin activity in the United States, North America has emerged as the largest cryptocurrency market, with an estimated $1.2 trillion received between July 2022 and June 2023. The region accounted for 24.4% of global transaction volume during the period, beating the regions of Central, Northern and Western Europe, which received an estimated $1 trillion, according to Chainalysis.
Magazine: The truth behind Cuba’s Bitcoin revolution: An on-the-ground report
Bitcoin is back near its year-to-date highs, but BTC price moves belie an underlying lack of support, analysis fears.
Bitcoin (BTC) starts the last week of October in classic style as 3% BTC price gains take cryptocurrency markets higher.
In what could yet turn out to be a classic “Uptober” for Bitcoin and altcoins, BTC/USD is back near 2023 highs as a resistance battle brews. Can bulls win?
That is the key question for traders and market observers going into the week’s first Wall Street open as Asia sets the tone for a crypto comeback.
Given the extent of resistance to overcome, however, traders are playing it safe — lofty BTC price predictions are less evident than might be expected, and few believe that the road beyond $32,000 will open up quickly or easily.
Bitcoin must also dodge potential headwinds in the form of macroeconomic data prints at a time when inflation continues to beat expectations.
Ahead of the United States Federal Reserve’s interest rate decision on Nov. 1, the month’s final prints will be all the more significant. Geopolitical events meanwhile add another element to market unpredictability.
With much at stake for crypto and risk assets, the week thus looks to be a rollercoaster in the making as Bitcoin bulls seek to effect a major trend change via a breakout from a multi-month trading range.
As Cointelegraph reported, these three-month highs are being treated with suspicion by some traders, who see breaking through $32,000 as a difficult challenge.
“Well on it's way towards the top of the 2023 range,” popular trader Daan Crypto Trades summarized on X on the day.
“$31K-32K won't be easy to break through but upon doing so I would be targeting $38K next. Remains range-bound until then.”
With hours to go until the Wall Street open, BTC/USD is now retreating from the highs, on the way back toward the $30,000 mark.
Analyzing the odds of a deeper drawdown, popular trader Ali drew attention to relative strength index (RSI) readings.
“An impending price correction appears to be on the horizon unless BTC manages to clock a daily candlestick close above $31,560,” part of his comments warned.
At 77 on Oct. 23, RSI was already at levels which Ali noted had triggered “sharp corrections” since March this year. As a rule, anything above 70 is considered "overbought."
Others were freely optimistic, among the Philip Swift, co-founder of trading suite DecenTrader and creator of statistics resource Look Into Bitcoin.
#bitcoin +$30k.
— Philip Swift (@PositiveCrypto) October 23, 2023
Goodbye bears.
Popular trader CredibleCrypto meanwhile described a Bitcoin breakout as “almost there.” Updating an idea originally from late August, he suggested that $30,000 was the key level to break for a trend change.
Almost there... $BTC https://t.co/13X3yX7Bib
— CrediBULL Crypto (@CredibleCrypto) October 23, 2023
Bitcoin saw a strong start to the last week of “Uptober” with a trip to near $31,000, data from Cointelegraph Markets Pro and TradingView shows.
Personal Consumption Expenditures (PCE) Index data headlines the U.S. macro diary this week — and the timing is conspicuous.
The Fed is due to meet to decide on interest rate policy on Nov. 1, and as one of its preferred inflation metrics, PCE is being keenly eyed for cues by markets. Q3 GDP is also due.
Despite previous recent data prints persistently coming in higher than expected, underscoring sticky inflation, the odds of further rate hikes remain negligible. Per data from CME Group’s FedWatch Tool, there is even a 1.6% chance of a rate cut by the Federal Open Market Committee (FOMC) next week.
“Meanwhile, earnings season is in full swing and Fed speculation continues. Volatility is great for traders,” financial commentary resource The Kobeissi Letter wrote in part of commentary on the week’s macro diary.
Key Events This Week:
— The Kobeissi Letter (@KobeissiLetter) October 22, 2023
1. Building Permits - Wednesday
2. New Home Sales - Wednesday
3. Fed Chair Powell Speaks - Wednesday
4. Q3 2023 GDP - Thursday
5. Pending Home Sales - Thursday
6. September PCE Inflation data - Friday
We are 1 week out from the November Fed meeting.
Skew and others are meanwhile eyeing U.S. dollar strength, with the U.S. dollar index (DXY) cooling the rampant uptrend which began in mid-July.
“Looking for trend continuation or clear break of 1D trend some time this week or into November,” part of comments stated.
Skew added that a “major move” should come soon.
The trend of declining BTC balances on exchanges is frequently reported on as it hits levels not seen since 2018.
According to the latest data from on-chain analytics platform CryptoQuant, the major trading platforms now have a combined BTC balance of 2.024 million BTC.
The FTX meltdown in November 2022 hastened the pace of balance reduction, and despite the BTC price recovery this year, the trend has yet to reverse direction in step.
Now, exchange deposits are at year-to-date lows, James Straten, research and data analyst at crypto insights firm CryptoSlate, notes.
“Since Bitcoin started, deposits consistently outpaced withdrawals. However, with the FTX collapse in Nov '22 and the SVB crisis in Mar '23, the trend flipped for the first time,” part of an X post at the weekend read.
“Now, with deposits hitting YTD lows and withdrawals stable yet high, a clear trend emerges: coins are steadily leaving exchanges.”
An accompanying chart showed the proportion of BTC transactions involving exchanges, these accounting for 36% of the total.
BTC price action, while advantageous for market sentiment, is displaying “artificial” characteristics, CryptoQuant research warns.
In one of its Quicktake market updates on Oct. 22, contributor SignalQuant revealed low numbers of new market entrants over the past month.
SignalQuant used the Sum Coin Age Distribution metric — a method of separating newer and older unspent transaction output (UTXO) data.
“Interestingly when this indicator spikes, it is a turning point for BTC’s price in the long term,” he wrote about outputs between one week and month old, corresponding to market “newbies.”
“In fact, the 1w~1m entry trend indicator was above the baseline when BTC’s price hit its low in late '18, when it hit its low in late '22, and after Mar '20 Covid crash. But now, instead of heading towards the baseline, it's staying low.”
SignalQuant concluded that while no single indicator can provide an overall explanation of market behavior, the Coin Sum data was “too significant to ignore.”
Previously, Cointelegraph noted that long-term holders now control more of the BTC supply than ever before.
After an extended period of barely any movement, the Crypto Fear & Greed Index is beginning to show signs of volatility.
Over the weekend, the classic crypto sentiment gauge spiked into “greed” territory, reaching 63/100 — its highest reading since July 12.
The increase coincided with Bitcoin’s attempts to break through $30,000 over the weekend, reinforcing the significance of that price level in traders’ minds.
On that topic, popular trader Altcoin Sherpa described $30,000 as a “scary area.”
“I still see this next high as extremely important when seeing where price goes,” he told X subscribers on the day, adding that “we're about to see if we're going to see 20k or 40k in the midterm.”
Like others, Altcoin Sherpa highlighted $32,000 as the ultimate line in the sand for bulls to charge through.
“Basically if we break 32k strongly, we go to 40k,” he continued.
“If we form a lower high around here or reject around 32k strongly, I think we're going to go to low 20ks. Gut says 40k but 32k is a super strong level overall and I don't feel strong about it.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Binance.US users “may convert” their U.S. dollar holdings to stablecoins or other digital assets to withdraw the funds from their accounts, the firm said.
Cryptocurrency exchange Binance.US has updated its terms of service, hinting that direct withdrawals in United States dollars are no longer supported on the platform.
Binance.US updated its terms of service on Oct. 16, modifying the section about the “BAM Fiat Wallet,” referring to Binance.US services related to U.S. dollar custody.
In the updated terms, Binance.US wrote that users “may convert” their U.S. dollar holdings to stablecoins or other digital assets to withdraw the funds from their accounts.
Some cryptocurrency enthusiasts took to X (formerly Twitter) to confirm the terms of service’s change on Binance.US. “Binance seizes USD. Don’t worry you can buy Tethers printed out of thin air or shitcoins,” one crypto observer wrote on X.
Binance US seizes USD.
— Bitfinex'ed Κασσάνδρα (@Bitfinexed) October 17, 2023
Don’t worry you can buy Tethers printed out of thin air or shitcoins. pic.twitter.com/BPh7SY3qTM
Similarly to previous terms of service updates, Binance.US stressed that digital assets are not eligible for insurance protection by the Federal Deposit Insurance Corporation (FDIC).
“In the event we terminate our relationship with a USD custodian and we are unable to find another USD custodian, we will provide notice and time to withdraw your U.S. dollar deposits,” Binance.US wrote in an update on May 5, 2023. The firm added:
“Any U.S. dollar deposits that are not withdrawn by the deadline provided in the notice will be converted to stablecoin digital assets and transferred to your digital assets account.”
The latest updates to Binance.US’ terms of service notably differ from a version posted in May 2023. At the time, the page included now-removed information that BAM — Binance.US’ operator — is not a member of FDIC and is not a bank but has “worked with the USD custodians” to ensure U.S. dollar deposits are held by custodians in omnibus accounts at FDIC-insured banks.
Subject to BAM‘s and the U.S. dollar custodian‘s compliance, it’s BAM’s intention that the funds be eligible for FDIC insurance coverage limit at $250,000 per eligible individual, “which would only be applicable if a bank were to fail,” the terms of use from May 2023 read, adding:
“In the event the bank does fail [...]it is possible that your account(s) with the bank and the fiat [...] will be aggregated for purposes of determining your eligibility for FDIC deposit insurance. FDIC insurance does not protect against the failure of BAM or malfeasance by any BAM employee.”
Binance.US did not immediately respond to Cointelegraph’s request for comment.
Related: Binance.US taps MoonPay as banking alternative to regain USD ramps
The news is another example of Binance.US struggling to maintain its fiat on-ramps and off-ramps as the exchange has halted some U.S. dollar operations over the past year.
In June 2023, Binance.US suspended U.S. dollar deposits and notified its customers of an incoming pause to fiat withdrawal channels. The firm subsequently said it resolved U.S. dollar withdrawal issues but warned it could be a temporary solution.
Magazine: The Truth Behind Cuba’s Bitcoin Revolution: An on-the-ground report
Famed American investor Jim Rogers believes the long reign of the US dollar is drawing to a close. In a new interview with the YouTube channel Nomad Capitalist, Rogers says the heydays of the American currency are shifting to the rear view mirror. According to Rogers, one currency that may take the place of the […]
The post Legendary Investor Jim Rogers Warns Era of US Dollar Dominance Is Coming to an End appeared first on The Daily Hodl.
The change in leadership at Tether reflects its commitment to actively exploring new business operations, the company said.
Tether, the issuer of the world’s largest stablecoin by market capitalization, is replacing its CEO as the company works to expand its areas of focus.
Paolo Ardoino, who has been serving as Tether’s chief technology officer since 2017, will become the new CEO of the firm in December 2023, Tether announced on Oct. 13.
Ardoino will replace Jean-Louis van der Velde, who will transition to an advisory role for Tether while retaining his position as CEO of Tether’s sister company, Bitfinex. Ardoino will continue in his roles as chief technology officer for Bitfinex and chief strategy officer for the Bitcoin layer-2 solution Holepunch.
Ardoino will also “continue to oversee the technology department for the time being” at Tether, a spokesperson for the firm told Cointelegraph.
Tether said the change in leadership reflects the company’s commitment to actively exploring new business operations, including peer-to-peer communications, renewable energy, resilient data storage and Bitcoin (BTC) mining.
As Ardoino has been leading Tether’s expansion strategy over the last couple of years, the transition should be seen as a “natural progression,” a representative of the firm told Cointelegraph.
The firm said Ardoino is the ideal choice for Tether’s CEO due to his significant impact beyond his organizational roles, including his involvement and understanding of Holepunch, Bitcoin mining, hardware and artificial intelligence. Ardoino's efforts toward enhancing freedom and fostering innovation have also established the exec as one of the most influential figures in the community, Tether noted.
Related: USDR stablecoin depegs to $0.53, but team vows to provide solutions
“Under Paolo’s leadership, Tether will continue to work towards delivering financial services to those in need, reshaping the landscape of global finance,” the Tether spokesperson said, adding:
“Paolo [Ardoino] envisions Tether as a tech powerhouse poised to revolutionize the industry and serve as an infrastructure partner in the development of resilient cities and countries. Tether’s mission also includes expanding the influence of the USD and Bitcoin in global trade and exchange [...]”
As previously reported, Tether has been actively developing Bitcoin mining operations in 2023, launching a mining operation in Uruguay in May. The firm has continued its aggressive entry into the Bitcoin mining industry, introducing Tether BTC mining software to enhance the management of mining capacity in August 2023.
In September 2023, Tether invested in German crypto miner Northern Data Group in a move backing artificial intelligence initiatives.
Magazine: Unstablecoins: Depegging, bank runs and other risks loom
The payments platform said PayPal USD will be “rolling out fully in the coming weeks” after announcing its launch on Venmo.
Major United States-based payment processor PayPal has announced its PYUSD stablecoin is now available on Venmo.
In a Sept. 20 blog post, the payments firm said PayPal USD (PYUSD) — the company’s stablecoin pegged to the U.S. dollar — is already available to Venmo users and will be “rolling out fully in the coming weeks”. The news came roughly six weeks after PayPal announced the launch of the stablecoin, saying at the time it would be issued by Paxos Trust and fully backed by U.S. dollar deposits, short-term Treasuries and similar cash equivalents.
“PYUSD is already present in native crypto experiences, and continues to be made more broadly available as the ecosystem grows,” said PayPal. “In the few weeks since its launch in the open market, PYUSD is already present on select exchanges including Crypto.com, Bitstamp, Coinbase, and Kraken."
PayPal USD issued by Paxos is now available on @Venmo to select users and will be rolling out fully in the coming weeks!@PayPal USD is unlocking the future of money movement. Learn more here: https://t.co/qgDagf5kB5 pic.twitter.com/9yEszDNJQG
— Paxos (@Paxos) September 20, 2023
Related: PayPal’s new PYUSD stablecoin faces legal headwinds and ‘less functionality’
Blockchain analytics firm Nansen reported in August that roughly 90% of PYUSD was held in wallets controlled by Paxos Trust. Crypto firm BitPay announced on Sept. 12 that it would be adding support for PYUSD, citing “payment utility and community involvement.”
PayPal has been making steady inroads into the crypto space, accepting digital assets payments in 2021 and establishing on- and off-ramps for Web3 payments in 2023. The New York State Department of Financial Services included PYUSD on its greenlist of coins approved by the regulator.
Magazine: Deposit risk: What do crypto exchanges really do with your money?
This week, The Market Report discusses Bitcoin’s recent dip below $25,000 and what it means for the near future. Was it a discount or a disaster?
In the latest episode of The Market Report, Cointelegraph analyst Marcel Pechman delves into Bitcoin’s (BTC) latest bounce at $25,000, which some analysts and influencers argue represents a short-term buying opportunity. Pechman explains that Bitcoin’s inverse correlation with the U.S. Dollar Index has only held for 40% of the previous 20 months, meaning it is likely not a good metric to anticipate price movements.
The show then shifts focus to a recent Glassnode report revealing that the amount of BTC changing hands is at its lowest since October 2020, citing investors’ “apathy” and “exhaustion.” Pechman argues that bulls got tired after the United States Securities and Exchange Commission’s relentless action to pursue Coinbase and Binance. Ultimately, Pechman disagrees that Bitcoin’s recent movement to $25,000 presents an opportunity for buyers, given that the short-term risk-reward ratio near the current price level is around 50:50.
For the show’s next segment, Pechman analyzes the prediction made by Davis Hui, vice president of Bitcoin miner Canaan, that BTC will hit $100,000 in 2024 based on the halving and a spot exchange-traded fund (ETF) approval. First, Pechman explains that BlackRock’s $10 trillion in assets is merely a mirage, as 55% is stuck in fixed-income investments and $2.8 trillion is already invested in other ETFs such as commodities, the S&P 500 index, global emerging markets and alternative investments.
Furthermore, Pechman raises the risk of current holders deciding to flip their positions previously bought at $60,000, $50,000 or even $40,000 if Bitcoin’s price were to shoot up, meaning the offer side is never predictable regardless of miners’ incentives. Lastly, Pechman explains that a spot Bitcoin ETF has been a dream for the past eight years, and nothing has changed to refute the SEC’s reasons for dismissal, namely stablecoin trading volumes and unregulated offshore exchanges.
Check out the latest episode of The Market Report, available exclusively on the Cointelegraph Markets & Research YouTube channel.
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This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Palau's USD-backed stablecoin build on XRP Ledger will be frozen on Sept. 15 as the government will be collecting feedback from users to shape the way ahead.
Palau, a country in the western Pacific Ocean, is wrapping up its U.S. dollar stablecoin project after launching the pilot in August.
Jay Hunter, Palau Ministry of Finance member and head of digital residency program, took to X (formerly Twitter) to announce that the government will cease the distribution of the Palau Stablecoin (PSC) on Sept. 8.
Following the distribution halt, the Palau Stablecoin will also be frozen after Sept. 15, becoming unavailable for spending by users, Hunter said, noting:
“After Sept. 15 you will no longer be able to spend the PSC. This will give us time to process retailer redemptions before the pilot’s official termination at the end of the month.”
In the announcement, Hunter didn’t provide exact reasons for freezing the stablecoin, only noting that the government will send a survey to pilot participants next week. The move came weeks after the government launched the PSC in late July.
“If we are authorized to move forward with the next phase of the stablecoin program, our collective lessons learned will shape the way ahead,” the official said. He added that users' feedback would be critical to developing the final report to the Palau Congress and the president.
Related: Visa taps into Solana to widen USDC payment capability
The news comes shortly after Hunter posted a study devoted to stablecoin technology and related security considerations from the National Institute of Standards and Technology. Issued in September, the study evaluated some of the necessary properties of security and stability and identified “18 potential issues in stablecoin implementations.”
Stablecoins are a type of cryptocurrency that aim to maintain a stable price relative to a specified asset (usually a fiat currency).
— Jay Hunter Anson (@JHX_1138) September 5, 2023
Much has been written about how to use stablecoins and about the economic implications of doing so, specifically price variability. However,… pic.twitter.com/Hek7tUqXZR
Nicknamed the Kluk, the Palau Stablecoin is designed to reduce transaction costs and enhance the speed of transfers for citizens, merchants and the government of Palau. The stablecoin was built on Ripple’s XRP Ledger, a platform focused on the issuance of central bank digital currencies (CBDC).
The XRP ledger CBDC platform also serves as the foundation for similar pilot projects in countries like Hong Kong, Bhutan, Colombia and Montenegro.
Magazine: Magazine: How to protect your crypto in a volatile market — Bitcoin OGs and experts weigh in
This week, The Market Report discusses why $22,000 is the next logical step for Bitcoin and why BitMEX co-founder Arthur Hayes claims the bull market started back in March.
In the latest episode of Cointelegraph’s The Market Report, analyst Marcel Pechman explores the drivers that point to Bitcoin heading to $22,000, with investor sentiment worsening after Grayscale Investment’s much-hyped legal victory against the United States Securities and Exchange Commission (SEC) on Aug. 29 and its postponement of multiple spot Bitcoin (BTC) exchange-traded fund applications.
According to Pechman, on the side of the bears are multiple lawsuits from the SEC against Binance and Coinbase, including a potential indictment from the U.S. Department of Justice regarding money laundering and facilitating trades from Russian entities. But, more importantly, U.S. inflation has come down to 3.2%, and the U.S. Federal Reserve is draining liquidity from the markets.
Pechman also analyzes BitMEX founder Arthur Hayes’s claims that the Bitcoin bull market began in March. Hayes pinpoints the Silicon Valley Bank fallout and the subsequent intervention by the U.S. Treasury Department as the turning points for the crypto market.
Pechman agrees with Hayes but raises the issue of the U.S. Dollar Index, which measures the U.S. dollar against other major foreign currencies, such as the euro or the Swiss franc, and now sits at the same level as six months prior. Pechman says investors have realized that other countries would likely collapse before the U.S. in the event of a global economic recession.
Ultimately, Pechman believes it doesn’t matter to the Federal Reserve if salvaging the banks could trigger economic turmoil, given that U.S. Treasurys and the U.S. dollar are still considered the safest options.
Listen to the full episode of The Market Report on the new Cointelegraph Markets & Research YouTube channel, and don’t forget to click “Like” and “Subscribe” to keep up-to-date with all our latest content.
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