17 November

A senior analyst at U.S.-based financial giant Citibank has penned a report drawing on similarities between the 1970s gold market and bitcoin. The whole of bitcoin’s existence has been characterized by major price swings, ‘exactly the kind of thing that sustains a long-term trend.’

A decoupling of gold from fiat currencies, the COVID-19 pandemic and the desire for central banks to pursue aggressive quantitative easing policies could lead to future explosive price growth in bitcoin, according to Fitzpatrick.

Fitzpatrick pointed to bitcoin’s weekly chart and used technical analysis (TA) of prior highs and lows to determine a target of $318,000 by December 2021.”

See Also: $1T market cap is ‘next big resistance’ for Bitcoin — Bloomberg analyst
See Also: Coinbase Goes Down as Bitcoin Nears $17K

“The value of the Global Negative-Yielding Debt Index from Bloomberg and Barclays is now at a record level of $17.05 trillion, surpassing the previous lifetime high of $17.04 trillion reached in 2019. The figure has more than doubled in the past eight months.

A negative-yielding bond offers less money at maturity than the original buying price. The sharp rise in volume is the result of the massive liquidity-boosting bond purchases by the U.S. Federal Reserve and other major central banks.

The towering stockpile of bonds yielding negative returns is said to be an incentive for investors and corporations to pour money into inflation-resistant assets such as bitcoin.

The more central banks print money and push bond yields lower to contend with ongoing stress in the global economy, the more compelling the economics around bitcoin become.

John Ng Pangilinan, a managing partner at Singapore-based Signum Capital, expects yield-hungry investors to pour money into bitcoin. ‘On our end, we are seeing an uptick in the number of investors looking at earning yield from lending out bitcoin.'”

“In a series of filings with the U.S. Securities and Exchange Commission published Friday and Monday, the $9.2 billion asset manager helmed by the one-time spokesman of U.S. President Trump signaled that two of its funds ‘may seek exposure to digital assets.’

According to the filing, SkyBridge seeks exposure to all forms of “digital assets” – even the riskiest.

Investment Funds may invest in digital assets without restriction as to market capitalization or technological features or attributes (including lesser-known or novel digital assets known as ‘altcoins’) and may invest in initial coin offerings, which have historically been subject to fraud.”

“Lewis told conference attendees that the majority of jurisdictions have now transposed the guidelines into domestic law.

However, when it comes to crypto businesses—known formally as “virtual asset service providers,” or VASPs—Lewis said that their adaptation to the travel rule and wider FATF framework remains “relatively nascent.” The travel rule is ‘not yet being implemented globally or effectively.’

Lewis indicated that the FATF plans to publish a second review of the implementation of its guidelines worldwide in June 2021.”

See Also: Why FinCEN Wants Details on All Cross-Border Transactions Over $250
See Also: SEC Chairman Jay Clayton Stepping Down at End of Year

Blockchain gaming platform Enjin is launching a bid to attract more enterprise business, and it has hired an executive with two decades of experience at Microsoft to lead the effort.

Solomon will work with corporate clients looking to create digital experiences using blockchain tech to improve customer retention, acquisition and engagement.

The aim is to offer a full-service stack enabling businesses to create token projects through a template-driven experience.”

See Also: Yearn Finance formalizes operations budget as YFI rallies
See Also: MakerDAO Loans Can Be Gamed to Hold Out Funds From Liquidation, Startup Finds

At press time, Bitcoin Cash ABC (BCH ABC) has received no hashpower, meaning that it is possible Bitcoin Cash Node (BCHN) will become the dominant software of the Bitcoin Cash network.

To recap, a group of Bitcoin Cash developers led by Amaury Sechet, known as BCH ABC, proposed an update on the Bitcoin Cash network, which has included a controversial new “Coinbase Rule,” which requires 8% of mined bitcoin cash to be redistributed to BCH ABC as a means of financing protocol development.

The upgrade is opposed by another group from the Bitcoin Cash community, known as Bitcoin Cash Node, who removed this so-called “miner tax” from their source code.

Before the fork, 80% of miners were signaling support for BCHN. Most major crypto exchanges have announced that they are likely to support BCHN and it will inherit the “BCH” ticker.

See Also: Coin.Dance

As Chinese authorities make it harder than ever to exchange cryptocurrency into fiat, miners may be forced to move to other jurisdictions, local sources say.

On Monday, crypto industry blogger Colin Wu tweeted that miners in China have been struggling to pay for electricity after the authorities started cracking down on over-the-counter (OTC) brokers in the country.

It’s currently a “challenge” for Chinese miners to convert bitcoin or tether into yuan because ‘many people have had their bank accounts frozen when exchanging crypto for [renminbi] on OTC platforms.'”

“In late 2015, Ethereum co-founder Vitalik Buterin sold half a million Ethereum (ETH) to Galaxy Digital CEO Mike Novogratz in an over-the-counter transaction. He sold each ETH for just $0.99. Today that nest egg would have been worth $229 million.

When buying a stake in ConsenSys became more complicated than Novogratz initially thought, he figured he should at least buy some Ethereum. ‘I was at least intelligent enough to say I’m not leaving until I buy some of the ethers.’

I called him [Ethereum cofounder, Vitalik Buterin] up; I had met him once at a dinner. He remembered me but didn’t know me. He thought it was good for the community to have a Wall Street guy buying, so I bought half a million ether at $0.99 maybe, $0.98. He changed the price on me at the last minute from 98 to 99 because I had waited too long, and the price went up.

And then I really became much more of a crypto maniac.”