Author: Linda Mckinney

Bitcoin Tumbles To 3-Month Low As Dollar Extends Gains, Highlighting Risk Aversion

As global markets retreat from risky assets, Bitcoin prices fell to an overnight low of $33 million. This was ahead of a week of central bank rate decisions and a move higher for U.S. dollars.

The Federal Reserve is expected to increase its key Fed Funds Rate by 75 base points on Wednesday. This marks its third significant hike in succession. Policymakers at the Bank of England and Swiss National Bank are expected to either continue with increases or echo the hawkish rhetoric. As markets become more risk-averse, crypto gains outpace those of fiat currencies.

There have been reports that FTX is under increased scrutiny. The Financial Times in London reported that the Financial Conduct Authority of the United Kingdom has warned the crypto exchange operator against providing services without authorization.

The FCA stated in a statement that almost all individuals and firms offering or promoting financial products or services in the UK must be registered or authorised by them. “This company is not authorized by us and is targeting UK citizens.

Bitcoin prices dropped 5.2% on the session to $18,407.20 per coin, an increase that brings its year-to date decline to just 61.4%.

Both prices fell 3.3% to $1,2910.18 per month after last week’s’merge’ of two blockchains which underpin the second-largest global digital token.

In early Monday trading, the U.S. dollar index rose 0.25% to 110.095, a close match of its recent 20 year high. This was against six global peer currencies. The greenback’s year-to date gain is around 14.7%.

Pre-market trading saw Coinbase Global (( COIN) share prices fall 5.66% to $69.81 each, while Robinhood Markets HOO ($10.19 each) shares fell 0.6% to $10.19.

Leading Japanese Online Broker SBI to Pull Out of Russia’s Crypto Mining Sector

When China clamped down on the cryptocurrency mining industry in May 2021, Russia was a popular destination because of its low-cost electricity and favorable climate. However, bitcoin mining and other Russian industries have been affected by sanctions that were imposed in response to Moscow’s attack on Ukraine.

The U.S. Treasury Department targeted Bitriver, a Switzerland-based mining data-center operator with a significant presence in Russia this spring. In order to avoid Western sanctions, the U.S.-based company Compass Mining attempted to liquidate $30M worth of mining hardware in Siberia.

Russia’s invasion in Ukraine has created uncertainty about the future prospects for the mining industry in the energy-rich area, while the cryptocurrency market’s downturn has made digital currencies less profitable, according to a representative from SBI, Japan’s largest online broker. Hideyuki Katsuchi, the chief financial officer of the company, revealed that it plans to sell its equipment in order to withdraw from Russia.

SBI was one of the first Japanese financial institutions to enter the digital asset market. However, this year’s negative developments led to a loss of 9.7 Billion yen ($72 Million) in pretaxes from its crypto business. The group also recorded a net loss of 2.4 Billion yen (over $15.8 M), which is the first time in a decade.

Katsuchi stated that the Japanese brokerage had suspended mining operations in Siberia after the conflict in Ukraine. However, it has yet to decide when it will withdraw from Siberia. According to the executive, although there is no other cryptocurrency business in Russia, this financial company intends to operate its Moscow-based commercial bank unit, SBI Bank. This follows a July U.S. diplomats asking Tokyo’s authorities to press Japanese crypto miners and exchanges to end ties with Russia.

The International Monetary Fund ( IMF), warned that crypto mining could offer Russia and other sanctioned countries, such as Iran, a way out of the economic and financial restrictions imposed on the United States and its allies. These countries have the ability to use their energy resources for mining and can generate revenue from the extraction and payment of cryptocurrencies.

A recent study shows that electricity consumption in Russia’s crypto-mining sector has increased almost 20 percent in the five years since 2017. Siberia’s Irkutsk has some of the best electricity rates in the country. It is also close to the capital Moscow, where miners can benefit from well-developed infrastructure and energy.

Tesla cashes out $936 million in Bitcoin, after a year of crypto turbulence

 

It’s amazing how a year can make a big difference. Tesla sold $936 million of Bitcoin worth in 2021 after making major investments in it in 2022. This was in order to reduce its Bitcoin holdings by 75%.

Tesla aggressively supported Bitcoin in 2021. They invested $1.5 billion in it as CEO Elon Musk praised Bitcoin’s benefits over fiat currency. Tesla customers could purchase cars with Bitcoin for a portion of the year.

However, Tesla’s profitability has been affected by Bitcoin impairment in the last few months, it stated in its financial summary for the second quarter.

Bitcoin reached delirious heights in 2021

Bitcoin saw record-breaking growth in 2021 thanks to the closely watched actions of Tesla. directly benefitted from Tesla’s crypto investments, which netted it more than $100,000,000 in profits.

Bitcoin, which is known for being volatile, was already on an upswing when Tesla announced its plans in February 2021. The cryptocurrency’s price quickly rose by tens or thousands of dollars.

Tesla stopped selling Bitcoin vehicles in May 2021 due to the negative environmental effects of using coal and other fossil fuels for mining the cryptocurrency. According to Coindesk, Bitcoin rose to $68,990.90 in autumn after a mid-summer slump.

Since last fall, markets have undergone a reorganization.

Since its inception, cryptocurrency has been a part of the attraction of digital currencies. Its independence from governments and promise of inflation and political independence were key factors.

However, a rising inflation and a deflated stock exchange have made Bitcoin more vulnerable to traditional market pressures. The U.S. central banks raises interest rates, and investors adjust their cryptocurrency holdings.

Tesla is one example of such investors, but one with huge resources and a CEO that can move markets with a tweet.

Before Tesla’s sale, a single Bitcoin was worth more than $24,000. Its value was well below $23,000 as of Thursday morning.

Almost all large-scale bitcoin miners in Texas pause activity as state braces for possible rolling blackouts

 

As the Texas energy grid collapses and officials warn of rolling blackouts Bloomberg reported that Bitcoin mining heavyweights have halted operations.

The state is experiencing a heatwave that has caused its power grid to break down and raised conservation concerns. Riot Blockchain Inc. and Argo Blockchain Plc are just a few of the companies that have moved to Texas to benefit from its low energy costs, which is favorable for bitcoin miners. These companies operate millions of computers across Texas to solve complex coding issues, which in turn awards bitcoin miners.

This cutback comes after peak usage Friday when miners reached 78,206 megawatts, breaking the July 5 record of 77.460. As Texas works out its energy crisis, companies could see additional revenue losses as computers are still off-line.

Miners already had to deal with increasing debt. currently has $4 billion in loans. Cryptocurrencies are suffering huge losses this year. Bitcoin, the most popular cryptocurrency, is still far from its record high of $69,000 in November 2021 and is currently trading at just over $20,000. Core Scientific sold 2,000 bitcoins to pay operating costs in June.

The volatility that cryptocurrencies are well-known for has driven rates for bitcoin miners’ loans higher as banks and other institutions flock to support ventures. As they run out cash, crypto firms are feeling the pinch and turning to , including FTX’s Sam Bankman Fried, for a source of financial assistance.

Investment Firm Cypherpunk Holdings Sells All of Its Bitcoin and Ether

Cypherpunk Holdings, a Canadian investment firm, has sold all its bitcoin and ether assets to take advantage of the current market risks.

C$293,000 ($227,000) was the price paid by the company for 205.8209 Ethereum (ETH), and 214.7203 Bitcoin (BTC) at C$6.09million ($4.7million). According to a Tuesday announcement, the company earned a total C$6.38million ($5,000,000) from sales.

According to the company, it has C$18.16million ($14.1 Million) in cash and stablecoins. It also has approximately C$1.93million ($1.5 Million) for structured products that have a redemption notice of 30 days.

Cypherpunk CEO Jeff Gao stated that the firm decided to sell all its bitcoin and ether holdings due to rising market volatility, which has made asset tokens more risky for investors.

Bitcoin and ether both lost more than half of their value over the past year. They fell to 52-week lows earlier in this month. Canadian stock exchanges have seen shares fall 50%.

Gao stated that he believes it is prudent to wait for volatility and illiquidity contagion’s conclusion to take place. He said that he sees weaker price action opening up the possibility of lower levels. Also, he mentioned reports about chains placing a temporary suspension on withdrawals.

Gao stated that Cypherpunk will have a long-term bullish outlook on cryptocurrency and will seek to capitalize on future investment opportunities in this space.

Winter

The cryptocurrency market has been plunged into an especially icy cryptocurrency winter because investors reacted to decades of high inflation by selling riskier assets, leading markets and markets to fall.

analysis of Arcane Research showed that bitcoin mining companies such as Riot Blockchain (RIOT), and Bitfarmss (BITF), collectively sold more than 100% off their total output in May, when the bitcoin price fell 45%.

Investors will likely continue to sell off cryptocurrency assets as economic headwinds continue to cause solvency problems for cryptocurrency lending and to spur large industry-wide layoffs. Until the market recovers, they will move their money into safer, more volatile store of value.

Moe Adham, Chief Investment Officer at Cypherpunk Holdings, stated that until the market turns the risks for cryptocurrency investors will remain’significant’.

Adham stated that “Crypto markets are still in a very risky environment.” He also said that there is still the possibility of significant price drops in crypto assets.

Nubank Now Allows 53 Million Brazilians To Buy Bitcoin

Nubank, Brazil’s biggest digital bank, has made it possible to buy bitcoins for all of its 53.9 millions customers.

, the Warren Buffett-backed fintech, announced the feature in May via a blog post. It explained how the feature would be implemented in phases. The company also allocated bitcoin treasury funds at that time.

Monday’s update to the blog post reflects the new status. All Nubank customers have now access to the Nubank Crypto tab, where you can negotiate bitcoin.

All customers now have the option to purchase cryptocurrencies through Nubank. The blog post has been updated.

Nubank Crypto section allows users to instantly buy and sell bitcoins. This is the most popular banking platform in Brazil for 2021. Customers can now acquire Bitcoin, but they cannot withdraw the coins purchased to an external wallet.

Bitcoin Magazine tried the new feature Tuesday.

Nubank charges a small commission for every buy or sale operation. This fee, although it can vary, is usually around 0.02%. Additionally, the app offers educational content in the Crypto section that explains bitcoin to novice investors.

As the user navigates to the page to purchase Bitcoin, Nubank’s app declares that it is the “first cryptocurrency to exist.” “Bitcoin was founded with the intent to decentralize financial systems and has influenced all other cryptocurrencies ever since. People often compare Bitcoin to gold, and they tend to store it in the future.

Nubank, a Unicorn-backed digital bank, is Brazil’s most popular. Warren Buffett’s Berkshire Hathaway has backed the fintech and it went public on Nasdaq in recent days.

According to a report, Nubank was acquired by the holding company for $500 million. It also purchased 30 million shares at $250 million. In December, it went public. The company recently doubled down with a $1 billion Brazilian fintech investment.

Nubank joins the race for Brazilian bitcoin investors. Banks compete to offer the best services in cryptocurrency. With their plans to offer Bitcoin services for consumers, investment banks like XP Investmentos and TG Pactual have increased their focus on this sector.

Brazil’s cryptocurrency market is preparing for a new set of rules that will govern the activities of custodians and exchanges in the country. In the next few weeks, the overhaul cryptocurrency bill will be up for vote in the House of Representatives.

Billionaire Stan Druckenmiller Prefers Bitcoin Over Gold in ‘Inflationary Bull Market’

Stanley Druckenmiller, the billionaire hedge fund manager, says that bitcoin is more valuable than gold in an inflationary bullish market. However, he said that gold would be better in a bearish market.

Stanley Druckenmiller: Crypto, Bitcoin, Blockchain

Stan Druckenmiller spoke out about cryptocurrency and bitcoin investing in a Saturday interview with the Sohn Conference Foundation.

Druckenmiller is the chairman and CEO at Duquesne Family Office LLC. Druckenmiller was previously a managing Director at Soros Fund Management, where he was responsible for funds with a peak assets value of $22 trillion. Forbes lists his net worth at $6.8 billion.

He stated, “If you think we will have an irresponsible monetary policy and inflation going forward,” adding that bitcoin is a good investment. However, gold should be avoided if it’s in the bear phase for other assets.

He stressed that he believes it to be true because he has been watching the markets for a long time. Druckenmiller stated, “I’m beginning to believe what I see.”

If we have an inflationary bullmarket, then I will definitely want bitcoin to be my primary investment.

He stated, “If I believed we will have a bear-market — you know, stagflation-type stuff — I would like to own gold.”

The billionaire said, “That’s my assumption going forward from here,” noting that his assumption of 85% is based on what he had observed.

The famous hedge fund manager, who spoke out about cryptocurrency investing, said that he uses “high-frequency signals” to make his decisions.

It seems that crypto and the Nasdaq have a strong connection.

He said that cryptocurrency’s future was uncertain. “It will surprise me if it isn’t a real force within our economy, say five years from now to ten years from now. And not a major disruptor.”

Druckenmiller said: “So, crypto is interesting.” But, the billionaire noted that Druckenmiller’s 69th birthday will be in a few weeks.

Although I am probably too old to be intellectually competitive with the young people in this area, I am certainly keeping an eye on it.

Goldman Sachs Reportedly In Talks With FTX For Bitcoin, Crypto Derivatives

According to a report by, Goldman Sachs is looking into derivatives trading using bitcoin and other cryptocurrencies as part of a possible partnership.

In an interview with Barron’s, Brett Harrison, president of FTX’s U.S. Division, stated that’multiple FCMs [futures Commission Merchants] have already committed to integrating technologically,’. “There are many large ones that you can probably name.

FTX is reportedly seeking a modification to its license from the Commodities Futures Trading Commission, which would permit the exchange to operate as both a cryptocurrency exchange (CryptoX) and as an intermediary for leveraged derivatives trade (FCM). This role is currently held, interestingly enough, by institutions like Goldman Sachs.

This is a clear sign of a dramatic wind change in institutions that would normally handle counterparty transactions with leverage. They are now switching to more experienced services. The report stated that FTX appears to be absorbing some market share from those who were historically considered direct competitors on Wall Street.

If FTX succeeds in this endeavor, it could threaten the removal of intermediaries like Goldman. FTX will provide derivatives in-house and not require the cooperation of any other financial institution. The Futures Industry Association has been a source of friction as it represents many intermediaries that would be affected by FTX. They fear that FTX will expand beyond cryptocurrencies to other markets.

According to reports, the FTX integration might include direct trading of futures contracts, intermingling clientele, a possible on ramp being provided to Goldman for access to the exchange or capital topping ups (stock options that increase equity positions for clients).

 

El Salvador Debt Risk Looms as Bitcoin Bond Has Yet to Launch

According to Moody’s, El Salvador is the nation that first tried Bitcoin as a national currency. It may not be able to pay the debt due to the country’s anticipated ‘Bitcoin Bond,’ which is still in development.

There are many sources that contradict each other regarding the number of investors who are interested in this bond. It has received no support while it is 50% oversubscribed by the nation’s finance minister. The clock is ticking, even though the government has yet to pass legislation that would allow the bond to be approved.

The bond was announced by Nayib Bukele, El Salvador’s President, in November. This comes just two months after Bitcoin became legal tender throughout the country. It is intended to raise $1billion: $500m in Bitcoin to finance the Treasury and $500m to support development of a ‘Bitcoin City,’ which will be powered by geothermal Bitcoin miner technology. The country currently holds just over 1,800 bitcoin, which is worth approximately $70 million.

The bond was originally supposed to go live in March but it has been delayed until September. It was the inopportune moment to launch the product because Russia’s war against Ukraine had already affected the price of Bitcoin. This was the nation’s finance minister at that time. Bukele suggested that the delay could be attributed to internal pension reform.

The delay, regardless of the reason, means that the Salvadoran government cannot access the much-needed funds they need. The worst national drop was in Ukraine, when the prices for its debt fell by 15.1%. Its benchmark bond 2032 yields 24%, a level that raises concerns about buyers defaulting.

It’s not surprising that El Salvador has a very strained relationship with the International Monetary Fund. It lends money to member countries that have balance-of-payment problems. The country ended talks with the IMF. They disapproved of El Salvador’s and the Central African Republic adoptions of Bitcoin. The former president of El Salvador’s central bank has stated that El Salvador’s relationship to the IMF is now ‘practically dead’.

According to, the president and the finance minister both maintain that there is no risk of default. These words are in direct contradiction to the views of Fitch and other institutions, who have both reduced El Salvador’s credit rating over recent months. Bukele for his part isn’t listening. The president has been well-versed in both the IMF and Fitch opinions.

Microbt Reveals Latest Bitcoin Mining Rigs – Machines Produce up to 126 TH/s With Custom 5nm Chip Design

The latest machines from Bitmain and Microbt show that Bitcoin miners are becoming more sophisticated. Bitcoin.com News previously reported on Bitmain’s new mining machines, which offer hashrate speeds of up to 255 TH/s.

The first was the S19 XP, which was revealed in November 2021. It boasts a hashrate rate of 140 TH/s and the second was S19 Pro+ Hyd., with up to 198 THP of computing power. Bitmain also revealed the Antminer XP Hyd. hydro ASIC unit. This unit produces a staggering 255 TH/s, according to the company.

The company has revealed new Microbt-brand Howsminer ASIC Bitcoin mining rigs. It expects to ship its latest series in the third quarter 2022. Although the devices aren’t as powerful as Bitmains new mining machines, Microbt’s rigs are still more powerful than those currently in production.

Microbt’s latest Whatsminer M50 series was unveiled at the Bitcoin 22 conference. The top-of-the-line machine features a fully custom chip design and 126 T/s computational processing power. Further, the Whatsminer M50S boasts a power efficiency rating (26 joules per trillion hash (J/TH)) and runs on 3,276 Watts (W).

This full-custom chip design was made using a 5nm process. It is an improvement on the M30S++’s 110 TH/s. Microbt announced a hydro-cooling mining system that can produce ‘240 THP of computing power at 29 J/TH power efficiency’. The Whatsminer M53 machine has not been shown or is not available for purchase on the Whatsminer website.

The M50S (126 T/s) rig currently costs $10.924.20 per unit, while the M50 (114 T/s rig) is $8,857.80. Referring to today’s BTC exchange rates, $0.12 per kilowatt hour (kWh) in electricity, a 110-TH/s mining machine will generate an estimated $10.48 per daily in BTC profits.

According to current data, the Whatsminer M50 series machines are more profitable at today’s Bitcoin prices. Microbt stated that it is available to support new bitcoin mining areas like North America. According to Microbt’s press release, “Microbt can produce and ship more than 30,000 pieces per months from its production site in Southeast Asia this fiscal year,” the company states.

Microbt’s COO Jianbing Chen stated that the M50 series will allow customers to enter the 2X J/T mining age and remain in power for ESG-friendly mining. Microbt’s machines will start shipping in Q3 2022, while Bitmain’s Antminer S19 XP Series is expected to be available to the public by July 2022.