BitDigest January 11 · Issue #819

Jan 11, 2021
  • Bitcoin falls 19% in weekend trading shaving $60 billion off total marketcap before recovery ensues
  • ECB and UK Treasury looking for stakeholder input on possible CBDC designs
  • China expanding DCEP trials
BitDigest January 11 · Issue #819

🅱️BitDigest will not be published tomorrow, Tuesday January 12th, and return on Wednesday morning.

The Headlines

BitDigest January 11 · Issue #819

ECB Asking for Final Thoughts on CBDC

www.twitter.com
🐦The European Central Bank tweeted that its public consultation period on its central bank digital currency is open until January 12th asking respondents to share “views on the benefits and challenges of issuing a digital euro and on its possible design.”
BitDigest January 11 · Issue #819

UK Treasury Questioning Stakeholders on Crypto Regulations

www.finextra.com
📝 Her Majesty’s Treasury has issued a paper defining a regulatory approach to cryptoassets and stablecoins defining specific questions to the readers and calling for their thoughts and a consultation period from industry stakeholders.
BitDigest January 11 · Issue #819

FCA Warns of High Risks in Crypto Investments

www.fca.org.uk
The UK’s Financial Conduct Authority has issued a consumer warning that investing in cryptoassets “involved taking very high risks” that could result in the loss of “all their money.”
BitDigest January 11 · Issue #819

China Expands Testing of DCEP with Phone-Free Card

www.forkast.news
In its first public non-mobile activity, the People’s Bank of China has issued a physical bank card testing the digital yuan at the Shanghai Jiao Tong University School of Medicine’s Tongren Hospital. Additionally, the Agricultural Bank of China has implemented a new program allowing customers to exchange cash or bank savings into the digital yuan.
BitDigest January 11 · Issue #819

Chile Forces Banks to Re-Open Services to Crypto Exchange

www.coinnounce.com
A court in Chile has ordered two of the country’s largest bank – Banco Itaú and Banco Estado – to re-establish account services to a local digital currency exchange after the court found that the exchange’s activities were not linked to a Ponzi scheme.
BitDigest January 11 · Issue #819

HSBC and Barclays May be Turning From Crypto Investors in UK

www.u.today
Reports claim that both HSBC and Barclays are not allowing UK crypto investors to transfer their fiat gains from crypto exchanges during the recent market rally.
BitDigest January 11 · Issue #819

NYC Barkeep Looking to Sell Neighboring Establishments for Crypto

www.nypost.com
A New York City bar owners is looking to sell his two Hell’s Kitchen watering holes at a price of 25 bitcoin or 800 ethereum with the requirement that the investors must by both.

Mergers & Acquisitions

BitDigest January 11 · Issue #819

NYDIG Acquires Digital Assets Data

www.theblockcrypto.com
Crypto trading firm NYDIG announced it has acquired Digital Assets Data to provide data and analytical capabilities to NYDIG’s existing research, trading, and advisory capabilities.
BitDigest January 11 · Issue #819

Nexon Denies Plans to Acquire Bithumb

www.cointelegraph.com
Nexon has denied last week’s reports that it plans to acquire South Korea’s largest digital currency exchange saying the gaming company “has not invested in Bithumb and has no plans to acquire that company.”

Market Data

BitDigest January 11 · Issue #819

Bitcoin Difficulty Hits New High

www.bitinfocharts.com
As miners continue to flock to bitcoin, BTC’s difficulty adjustment posted a new all-time-high jumping 10.8% to 20607418304385 over the weekend.

Thoughts on the Ecosystem

BitDigest January 11 · Issue #819

JPM Thinks Bitcoin ETF Could Weaken Pricing

www.bloomberg.com
JPMorgan Chase strategists believe the approval of a bitcoin ETF could weaken the short-term price of bitcoin with the potential of investors moving to alternative products could reduce the current premium to NAV of the leading bitcoin investment vehicles like Grayscale’s Bitcoin Trust (OTCQX: GBTC). 🅱️ I actually disagree with part of this thesis. While, I do believe new investment offerings will reduce overall fees and the premium to NAV of the current investment product, I think JP Morgan is overlooking that the development of new products – especially a SEC regulated ETF – will drive adoption in to the asset class resulting in an increase in demand for the underlying currency and subsequent increase in price.
BitDigest January 11 · Issue #819

Bitcoin : the 'Mother of All Bubbles'

www.trustnodes.com
😱Bank of America’s chief investment strategist is repeating a 2018 call, stating that the current bitcoin run-up in price is the “mother of all bubbles.”
BitDigest January 11 · Issue #819

Bitcoin Follows 6 D's into New Period of 'Global Consumer Adoption'

www.diamandis.com
Singularity University founder and exponential investor Peter Diamandis believes bitcoin is entering a “global consumer adoption phase” with the leading digital currency continuing to follow his 6 D’s of Exponential Organizations: bitcoin is digitized as money; initially grew in a deceptive phase but has not evolved into a disruptive phase; it is dematerializing (removing) the use of physical money; eliminating the middlemen (banks, lawyers, exchanges) and demonetizing the cost of transactions; and democratizing the access to capital available to everyone.
BitDigest January 11 · Issue #819

Bitcoin Gets Less Risky the Higher the Price Goes

www.cnbc.com
Billionaire investor Bill Miller believes bitcoin is becoming less risky “the higher it goes” adding that he expects the “over or under” to favor the positive with bitcoin “more likely to be higher than lower” in the future.
BitDigest January 11 · Issue #819

Gold Investors Could be Moving to Crypto

www.twitter.com
COM 🐦 In response to a question on the recent performance of gold, CNBC host Jim Cramer tweeted that either investors do not believe “it is as chaotic [in the market]…or [gold investors are] all going to crypto.”
BitDigest January 11 · Issue #819

Elon Musk Would be Happy to Have Been Paid in Bitcoin

www.twitter.com
🐦 Elon Musk responded to a tweet agreeing with Bitcoin Billionaires author Ben Mezrich when he said he will never turn down getting paid in bitcoin again by stating “Me neither.”

Reports you may have missed

Crypto markets are declining following news that most of the SEC’s lawsuit against Coinbase will proceed (more below). BTC (-1.27%) reached intraday highs of $71.8k before declining to $69k after the news. Rumors have circulated that Morgan Stanley and PNC will soon approve access to Bitcoin ETFs on their wealth management platforms. Together, Morgan Stanley and PNC hold over $1.5 trillion in client assets and likely will provide a tailwind...

Following the worst week of ETF flows since inception, BTC (+3.89%) is rebounding, rising to $69.6k, and ETH (+4.09%) has reclaimed the $3,500 mark. Last week’s outflows totaled $888 million, representing about a fifth of the inflows seen in the previous two weeks. ONDO, an institutional RWA protocol, is one of the top performers today, rising 7.61% as investors remain optimistic about the future of tokenized assets and their ability...

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