BitDigest April 24 · Issue #644
- Crypto prices jump overnight with the total market capitalization of all digital currencies gaining 5.6%.
- Portugal has announced its development of Technology Free Zones to promote innovative technologies like blockchain.
- Coinbase introduces a pricing oracle for DeFi applications
The End of Crypto as We Know It
For years we have been saying institutional traders will come to crypto. News last weekend that Renaissance Technologies’ Medallion Fund is now able to start trading bitcoin futures has both positive and negative connotations. Positive in that it shows further acceptance of bitcoin as an asset class, and negative in that the market that was developed by retail traders may have officially come to an end as we know it. As Fundstrat Global Advisor’s Tom Lee advised yesterday, do not attempt to trade against machines.
Several years ago I joked that even I could arb bitcoin across international exchanges and time delays did not really matter. That time is over. Joining Renaissance and other quant funds will be more professional algorithmic and high-frequency traders. The market built by Japanese and Korean housewives is over as we know it.
Fortunately I have always just considered myself a hodler and I am still long bitcoin.
Crypto Applications Showing Wave of the Future
Last week Bank of Finland Governor Olli Rehn responded to questions about digital currencies by saying we need to be “more practically focused and … support real time mobile payments.” Several announcements this week show how this suggestion is already coming to fruition. Dharma’s announcement that it can send USD to any Twitter handle, 2Key’s paywall for Zoom, and Draper Horen Holm’s crypto plugin for WordPress are examples of the ongoing evolution of digital payments. The future is already here.
Is Something Going On with Telegram?
Telegram has always been one of my primary portals into the digital currency ecosystem, and I am suddenly concerned about news out of Russia and the future of the social messaging app. Telegram was developed by Russian brothers and blocked by the Russian government for failing to disclose encryption keys. Against the orders of the Russian government, people continued to use the platform and it is believed that several of the larger investors in the SEC blocked Telegram token offering were Russian oligarchs and politically connected individuals.
Now there has been a sudden change of heart and Russia’s parliament is reviewing a bill to overturn the ban. Russian authorities are looking to use the messaging app to share information about coronavirus. My fear is that there is more to this story than we are being told and the next news will be US agency warnings that the Russian government is using Telegram to spy on us. I really hope I am wrong.
The Headlines
Market Data
Exchange, Custody and Product News
Reports you may have missed
Crypto Receives a Boost from Strong Jobs Print, WULF Sells Hash Rate to Expand AI Capabilities
CRYPTO MARKET UPDATE The crypto market is moving higher today, lifted by stronger-than-expected jobs numbers. The BLS reported 254k jobs added last month, far exceeding the market estimate of 140k, while August's figures were revised up from 142k to 159k. The unemployment rate also dropped to 4.1% from 4.2%. In response, rates rallied, the DXY spiked, and the futures market largely priced out the possibility of a 50 bps rate...
MARKET UPDATE Crypto is broadly lower today as geopolitical conflict continues to weigh on risk assets, with BTC 2.24% falling to $60k and ETH -0.94% approaching the low $2,300s. Aptos (APT N/A% ) is one of the few gainers in the top 100 tokens as they have strengthened their presence in Japan via an acquisition of HashPalette, a Japanese NFT service provider and developer of Palette Chain. AAVE -3.87% is also showing slight gains following...
CRYPTO MARKET UPDATE Crypto prices have rebounded slightly following yesterday's sharp selloff, with BTC 2.24% climbing back above $61,000 and SOL 0.38% moving above $145, while ETH -0.94% is lagging, trading around $2,400. Among today's outperformers is SUI 1.34% , which appears resilient despite a $115 million token unlock yesterday. Oil is partially retracing its early rally, gold is lower on the day, and yields are moving higher, suggesting at least a temporary reversal of...
MARKET UPDATE Markets are selling off in the first day of Q4, fueled by geopolitical fears as tensions rise in the mid-east. The SPY -0.74% and QQQ 0.19% have dropped 1.14% and 1.92%, respectively, while the VIX has surged over 17%. XAU and DXY are gaining as investors move towards safe-havens. Crypto assets have also sold off, with BTC 2.24% briefly dropping below $62k and ETH -0.94% below $2.5k. Among altcoins, SUI 1.34% is showing...