29 March

“The world’s largest cryptocurrency by market capitalization is up 15% over the past week, compared with a 16% rise in ether (ETH) and a 25% rise in Solana’s SOL token over the same period. The rally in alternative cryptocurrencies (altcoins) relative to BTC reflects a greater appetite for risk among crypto investors.

Meanwhile, the S&P 500 was roughly flat Monday, versus a 6% rise in BTC over the past 24 hours. That suggests the recent rally in bitcoin can be explained by new token accumulation, which is unique to the crypto market. Bitcoin’s recent price bounce appears to be driven by demand in the spot market, which typically occurs around market turning points.

Over the past six days, the Luna Foundation Guard’s (LFG) bitcoin wallet address purchased more than 27,000 BTC worth roughly $1.3 billion. The foundation is delivering on its month-old promise to add BTC as an additional layer of security for UST.”

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“A group of U.S. lawmakers says the U.S. Treasury Department may be the right government entity to create a digital dollar – not the Federal Reserve. A new bill introduced Monday would authorize just that.

Reps. Stephen Lynch (D-Mass.), Jesús Chuy Garcia (D-Ill.), Ayanna Pressley (D-Mass.) and Rashida Tlaib (D-Mich.) introduced the “Electronic Currency And Secure Hardware Act” (ECASH Act) to direct the Treasury Secretary to develop and issue an electronic version of the U.S. dollar, with an eye to preserving privacy and anonymity in transactions.

The electronic dollar, as defined in the bill, would be a bearer instrument that people could hold on their phone or a card. The system would be token-based, not account-based, meaning if someone were to lose their phone or card, they would lose the funds. In other words, it would be like losing a wallet with dollar bills in it.

This electronic dollar would be deemed legal tender and be functionally identical to a physical greenback.

We’re proposing to have a genuine cash-like bearer instrument, a token-based system that doesn’t have either a centralized ledger or distributed ledger because it had no ledger whatsoever. It uses secured hardware software and it’s issued by the Treasury.

This form of e-cash would support peer-to-peer transactions, and given the nature of its setup, it would support fully anonymous transactions.

Thus, it would differ from other proposals for a digital dollar, which are based on stablecoins or other decentralized ledger tools. Blockchains are designed to track every transaction, and any transaction could be therefore tied to the sender and receiver.”

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“The proposal would expand the definition of “dealer” to include people and businesses that use automated and algorithmic trading technology to execute trades and provide liquidity in the market. Crypto lawyers have sounded the alarm on Twitter, calling the proposal an ‘all-out shadow attack on decentralized finance.’

While the proposal is, at least ostensibly, aimed at electronic traders of U.S. Treasurys, a footnote buried in the 200-page text says the proposed rule would also apply to digital assets that have been deemed to be securities.

The proposal would bring all automated market makers (AMMs) and liquidity providers with more than $50 million in total assets under management under the SEC’s regulatory umbrella and thus subject to the SEC’s registration requirements – something that would be impossible for many, if not all, decentralized exchanges.

The inclusion of crypto as a single footnote in the massive proposal has been seen by some lawyers as a deliberate attempt to add confusion and uncertainty into the crypto markets.

In a healthy rulemaking process, we wouldn’t have to guess at the SEC’s intent or its underlying goals.”

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With the agency set to make a decision by July 6, CEO Michael Sonnenshein would consider suing the agency if the application is rejected.

I think all options are on the table.

A Bitcoin ETF is the holy grail for crypto investing firms as it would come with fewer fees for investors, could easily integrate into retirement portfolios, and would still allow everyday users price exposure to Bitcoin without concerning themselves with custody.”

Bringing non-fungible-tokens (NFTs) to Instagram’s large audience has the potential to supercharge the overall market going mainstream, Deutsche Bank said in a research report on Sunday.

Instagram will simplify the process of buying and selling NFTs, thereby lowering the barriers to entry, the bank said, adding that the platform’s strong global brand recognition will ‘lend itself to legitimatize NFTs, which could serve to erode buying hesitancy across the company’s broader audience.’

Deutsche Bank says the market opportunity for NFTs is very large, with the total addressable market (TAM) estimated to be over $1 trillion.”

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The spread between yields on the 30- and five-year government bonds fell under zero for the first time since 2006 – a year before the great financial crisis of 2007-2008. The spread between the 10- and two-year yields, another widely tracked section of the yield curve, was 12 basis points short of inversion at press time.

An inverted yield curve is widely read as a sign of impending economic recession, a significant decline in economic activity that lasts for months or even years. According to the Federal Reserve Bank of San Francisco, the yield curve has inverted before each recession since 1955, with the economy taking a hit between six and 24 months following the inversion.

The latest curve inversion perhaps indicates that bond traders are skeptical about the Fed’s ability to control inflation without causing a recession.

The recession hint provided by the latest curve inversion could have bearish implications for bitcoin. While the cryptocurrency hasn’t developed strong links to economic activity yet, it has evolved as a macro asset since the coronavirus crash of March 2020 and tends to move in line with risk assets, mainly technology stocks, which are sensitive to economic cycles.”