Strengthens
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Conflux, which rose 123.05%.
- The Central Bank of the UAE and the Reserve Bank of India signed a memorandum of understanding to collaborate on central bank digital currencies and explore interoperability between the two currencies, Bloomberg reports. The bank’s activities will include jointly conducting “proof-of-concept and pilot(s) of bilateral CBDC bridge to facilitate cross-border CBDC transactions of remittances and trade,” the announcement said.
- Bitcoin is on course for one of its biggest weekly gains in recent years, boosted by bets on any interest rate cuts, as the token shakes off spasms in the banking sector. Bitcoin is up 21% since Monday. It has had a weekly jump of at least that much only 10 times in the past five years, writes Bloomberg.
Weaknesses
- Of the cryptocurrencies tracked by CoinMarketCap, Maker was the worst performer this week, down 4.84%.
- The Blockchain Association, a prominent crypto trade group that boasts members such as Circle Internet Financial LLC and Kraken, said it digs into claims that the digital asset firms are being booted out of the US banking system. This includes cases of banks allegedly closing existing accounts or refusing to open new ones, writes Bloomberg.
- A clash involving disgruntled Coinbase Global customers will give the US Supreme Court its first taste of the world of cryptocurrency, heralding future cases that could help define the industry. The justices will hear arguments from Coinbase’s efforts to push two lawsuits into arbitration. The joint cases come as battles with higher stakes work their way to court, shaping the rights of both customers and companies, writes Bloomberg.
Possibilities
- A group of investors has set out to raise $100 million for a Bitcoin-focused fund, even as implosions and scandals rock the crypto world. The investment vehicle, called the Bitcoin Opportunity Fund, is aimed at high-net-worth investors who want to diversify into the world’s largest cryptocurrency, writes Bloomberg.
- Deribit, the largest options exchange for Bitcoin and Ether, plans to launch futures contracts to facilitate trading of Bitcoin volatility, writes Bloomberg. Futures can help traders with portfolio hedging, risk management, alpha generation and exploiting market volatility.
- Institutional customers of Coinbase have been contacted by the firm about plans to potentially set up a new crypto trading platform overseas. The talks with market makers and investment firms touched on the possibility of establishing an alternative meeting place for global customers, writes Bloomberg.
Threats
- Circle’s stablecoin needed about 36 hours to repair its link to the dollar amid a liquidity panic, Bloomberg reports. Anxious crypto traders began selling USDC so quickly that it lost its link to the dollar, falling below 85 cents. By Sunday evening, the token had largely recovered as the market reacted to Circle’s statement that it would cover any potential shortfalls and the government’s promise to make all bank depositors whole, writes Bloomberg.
- Binance Holdings is suspending deposit and withdrawal services via bank transfers and card payments for UK customers after its local banking partner stopped supporting transactions in British pounds. Paysafe said it would stop offering one of its products to Binance customers in the UK citing local regulators’ approach to crypto-assets, writes Bloomberg.
- Crypto miner Marathon Digital Holdings said it posted a loss of $687 million in 2022 due to a more than 60% drop in the price of Bitcoin and skyrocketing energy costs. The company found accounting errors in the annual report after the firm received comments from the US SEC, writes Bloomberg.
