“It appears selling pressure is starting to wane after a rough start to the year. In the bitcoin options market, the put-call open interest ratio rose to a six-month high of 0.62 on Sunday suggesting bearish sentiment is near a peak. Investors also put money into cryptocurrency funds for a second straight week as the bitcoin market stabilized.
We see a short-term setup forming for a bounce, especially on a close back above $40K BTC and $3K ETH.
The firm also expects market expectations for a U.S. Federal Reserve rate hike to moderate over the next two months, which could benefit equities and cryptocurrencies.
Over the past nine years, bitcoin produced an average return of 12% in February, and ended the month with a gain 86% of the time. Generally, equities also perform well during the second quarter, which means investors could start to increase their exposure to speculative assets.”
“A controversial proposed rule that would enforce know-your-customer rules on unhosted or self-hosted crypto wallets may again be under consideration by the U.S. federal government. If enacted, crypto exchanges would be required to collect names and home addresses, among other personal details, from anyone hoping to transfer cryptocurrencies to their own private wallets.
The Treasury Department, which is now overseen by Secretary Janet Yellen, revealed the rule might be considered. The agenda is a tool that signals things Treasury will work on over the next six months.
A timetable in the section suggests FinCEN aims to finalize the rule by the end of August, if it chooses to finalize it.”
“The Diem Association is shutting down. Silvergate announced in a press release late Monday that it is acquiring Diem’s development, deployment and operations tools, as well as tools “for running a blockchain-based payment network” for remittances and other applications.
CEO Alan Lane said his bank found a need for a dollar-backed stablecoin that is both “regulated and highly scalable.” Silvergate intends to launch such a stablecoin by the end of the year.
It became clear from the group’s conversations with federal regulators that they would not be able to launch Diem.
Silvergate is committed to continuing to foster the open-source community that supports the technology, and we believe that existing contributors will be excited about our vision going forward.”
“After two years of development, Litecoin (LTC) has finally launched its highly anticipated Mimblewimble upgrade, opening the door to more privacy-oriented transactions on the network.
Mimblewimble’s integration into Litecoin came by way of the Mimblewimble Extension Block, also known as MWEB, which allows the network’s users to opt-in to confidential transactions. Burkett said the upgrade improves Litecoin’s viability as a fungible currency that can be used for everyday transactions.
Despite being one of the earliest cryptocurrencies to hit the market, Litecoin has struggled to stay relevant over the years.”
“On Sunday, Wonderland co-founder Daniele Sestagalli tweeted that the Avalanche-based reserve currency experiment is coming to an end.
The vote to save or wind down the project came after Sestagalli had asked former partner and Wonderland treasury head Michael Patryn (who goes by the pseudonym 0xSifu) to step down late last week.
As the vote is so close to 50/50 there is only one path forward, it is to reimburse/unwind.
LUNA prices are currently down 13% over the past 24 hours, as investors have been liquidating. Meanwhile, Wonderland’s native TIME token has crashed nearly 60% since the debacle began last week and is now languishing 96% down from its Nov. 7 all-time high of just over $10,000.”
“Though athletes and support staff arriving for the Beijing 2022 Olympics still have the option of using digital currency for payments at many venues, the international test run of China’s CBDC is reportedly facing hurdles due to the pandemic.
The Olympic Games would have been the first real chance for tourists and Chinese nationals alike to familiarize themselves with the digital yuan, but that door slammed shut when the Chinese government decided to severely restrict the number of Olympic spectators. That decision alone, more than anything else, will likely further delay the mass adoption of the digital currency.
Even if the games were operating outside restrictions due to a pandemic, U.S. lawmakers have urged Olympic officials to bar athletes from using the digital yuan during the events. In July, Senators Marsha Blackburn, Roger Wicker and Cynthia Lummis penned a letter to the U.S. Olympic and Paralympic Committee claiming that the Chinese Communist Party could use the CBDC to surveil visiting athletes both while in China and upon their return to the United States.”