Review of the latest news of the crypto space 08.03.2021
The outgoing week was filled with both positive and negative news. Bitcoin, which can not stay at the level of 50K, but is still alluring for institutions, new SEC lawsuits and much more are attracting the attention of the world community.
News digest of the past week
Today, only the natives of the lost captives of the Amazon basin do not know about cryptocurrencies, and therefore the news of the industry does not leave the pages of the world media. Let’s take a look at the most interesting ones that happened in the past week.
- Ethereum is up 10%
Ethereum is in a positive trend, as according to CoinMarketRate,
On Sunday, ETH rose by 10.01% for the day. This is the biggest increase since March 1.
This promotion increased the total market capitalization of Ethereum to $ 192.88 billion, or 12.66% of the total cryptocurrency market capitalization. At an all-time high, the market capitalization of Ethereum reached $ 225.07 billion.
Ethereum has been trading in the range of $ 1,650. 94 to $ 1,683. 78 in the last 24 hours.
Over the past 7 days, ETH has shown an increase of + 15.5%. The trading volume for the last 24 hours reached 22.89 billion rubles. $ or 24.63% of the total trading volume for all cryptocurrencies. It was held in the range of $ 1,411. 5470 to $ 1,683. 7832 over the same period.
At the current price, Ethereum is down 17.51% below the historical high of February 20, which reached $ 2040.79.
As for other cryptocurrencies, Bitcoin is trading at $ 49,122. 7, while Tether fell to $ 0.9999 (down 0.11%).
Bitcoin’s capitalization currently stands at $ 915.42 billion, or 60.10% of the total cryptocurrency market capitalization, while Tether’s capitalization is $ 36.47 billion, or 2.39% of the total cryptocurrency market.
- Will Twitter follow the MicroStrategy strategy?
After Tesla’s recent $ 1.5 billion investment in the purchase of BTC, all eyes are on every move by major US corporations. Twitter attracted attention by announcing that it was considering offering $ 1.25 billion in senior convertible bonds, with 2026 as the maturity date.
If such an operation is causing speculation in the crypto sphere, it is because MicroStrategy has used it to increase its exposure to Bitcoin. The connection between the two cases becomes even more obvious when you consider that the CEO of Twitter is none other than Jack Dorsey.
The transaction is expected to involve institutional buyers who meet the requirements of the Securities Act of 1933. These buyers will also be able to take advantage of the 13-day extension to purchase additional notes worth up to $ 187.5 million. Depending on the choice made by Twitter, the bonds sold in this way can be converted into cash, ordinary shares of the company, or both. In addition, part of the proceeds from the sale will be used by the social network to pay for the cost of hedging operations of convertible bonds.
Anthony Pompliano thinks it has something to do with something else. A strongman at Morgan Creek Digital suspects that the Twitter CEO wants to add Bitcoin to his company’s balance sheet. Pompliano stated that “few people understand the power of Bitcoin like Jack Dorsey,” and he bet that his prediction will come true. While it is true that this man is a staunch supporter of Bitcoin and securities, there is another fact that seems to support his point. This is a method already used by MicroStragtegy.
A prominent figure in the intrusion of institutions into the crypto market, MicroStrategy continues to increase its presence in the Bitcoin market. To finance this large-scale transaction, the company recently launched a senior convertible bond offering. Thus, the proceeds from the offer were used by MicroStrategy to buy more BTC.
However, some observers believe that Twitter does not necessarily have to go down this path, especially since it has billions of dollars of liquidity on its balance sheet. Another element that supports this version: Mr. Dorsey has already invested in Bitcoin through his other company, namely Square. Thus, a double investment may seem superfluous in the eyes of some analysts.
In any case, US companies are more interested in crypto assets, including Bitcoin, to diversify their cash flow.
- Why Elon Musk Hates Crypto Services
Elon Musk, CEO of Tesla and SpaceX, via Twitter urged people to avoid hosting services, no matter what. At first, Musk mentioned the cryptocurrency wallet storage service Freewallet favorably on Twitter.
The Tesla CEO then responded to their tweet, “Your app sucks, ” and later added that”any crypto wallet that doesn’t provide you with your private keys should be avoided.” This is not the first time someone has criticized centralized security solutions.
The principle of “not your keys, not your coins” has always been popular in the cryptocurrency community. However, the popularity of this opinion has not reduced the number of hosted solutions and does not seem to have reduced their popularity.
Crypto wallets that “won’t give you your private keys” are examples of hosted solutions – services that provide security for accounts receivable, funds, and so on. It is believed that these services can provide the highest security of servers, facilities and data, as well as a secure connection. Hosted services are also responsible for backups. If the client has forgotten their password or PIN, they can restore access by contacting the platform representatives.
Some people have enough resources to do all this work without the professional help of others. For example, they use cryptocurrency wallet applications that do not store users ‘ private keys, and store these backup keys and codes by themselves, in the hope of not losing them. Those who have lost their keys cannot access their funds or data.
Even IT professionals sometimes lose the private keys to their cryptocurrency wallets. A recent study found that for this reason, 20% of the entire BTC supply is permanently unavailable. This is one of the main reasons for hosting solutions coming to the market, despite the fact that some people, including Musk, think that they “suck”. Some people trust paid professionals more than their memory.
- Digital Chinese Yuan-the way to eradicate cryptocurrencies?
China’s decision to introduce a digital currency is not entirely unexpected. This has long been an official rumor. However, China’s move to a digital currency could overwhelm the cryptocurrency market.
The yuan, unlike crypto, is a real currency. It is supported and regulated by the state. This is the virtual opposite of the original idea of cryptocurrency moving away from major central banks, and it is antimatter in the cryptocurrency market. According to Philip Gillespie, an expert interviewed by Bloomberg, the most likely scenario for crypto assets is a panic sale. And there are good reasons for this.
The cryptocurrency market is quite volatile without the arrival of a new major player. There is an irony here that is costly. China’s unfathomable political and trade positions, because they are out of control. China’s deliberate attempts to disrupt the financial world will not help the digital yuan gain momentum, even if they insist on being used by trading partners.1 Alternative cryptocurrencies are inevitable, and the hostile Chinese market is as good an incentive for them as any other. However, in the short term, this is unlikely to help cryptocurrencies.
Alternative digital currencies do not appear overnight. Existing cryptocurrencies will become the equivalent of speculative commodities, and any trader in any financial market can tell you that this is not good for further trading. The consequences are likely to be brutal at best. But time will tell.
- Jim Rogers Regrets Not Buying Bitcoin, But Warns That Governments May Ban Cryptocurrencies
Jim Rogers still believes that governments will not allow cryptocurrency to flourish if it is successful as ordinary currencies.
In an interview with Real Vision this week, veteran investor Jim Rogers reportedly said:
“If Bitcoin ever becomes a viable currency instead of a trading instrument, they will ban it. Governments don’t want to lose control. They love their monopoly. Do you think they’ll say, ” Okay, here’s a few US dollars, and you have it in your computer. Oh, yes: if you want to use something else-then please”? In fact, my experience with governments says that this will never happen.”
Max Keyser, a popular TV host and cryptocurrency advocate, predicted that when the price of BTC reaches $ 50,000, Rogers will look differently at Bitcoin, as will Mark Cuban of Shark Tank, and gold bug Peter Schiff.
While Rogers regrets his decision not to invest in the Cue Ball earlier, Schiff still insists that the value of the cryptocurrency is capable of falling to zero. However, he admitted that the asset is also capable of reaching $ 100,000. Rogers is also unsure about the US dollar. Last September, he predicted the end of the dollar’s dominance.
Rogers isn’t the only person who has warned that governments aren’t stopping cryptocurrency just yet. Harvard professor Kenneth Rogoff has repeatedly stated that governments and central banks will never allow Bitcoin to become mainstream, and he believes they will win. Dan Nathan, founder of Risk Reversal Advisors, noted that the US authorities will not continue to allow companies such as Elon Musk’s Tesla to replace dollars on their balance sheets with crypto. And now it becomes clear the claim of the SEC to his company and to him personally.
Kevin O’Leary, also known as Mr. Wonderful, is another investor who strongly warns against tough regulatory measures against cryptocurrencies. “Grown men will cry when this happens. You will never see such a loss of capital in your life. It will be cruel, ” he said. However, he changed his mind after approving two Bitcoin exchange-traded funds (ETFs) in Canada. O’Leary now invests in Bitcoin, and believes that cryptocurrencies are not going anywhere.