#Binance stablecoin outflow

[10bmnews]

Bitcoin Warning Signs? Long-Term Holders Exit While Retail Buyers Rush In

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[jeanwong]

[Blockchain trading platform focus today] Geopolitical black swan raid, Trump currency movement, Wall Street plots "stable currency counterattack"

Israeli F-35 fighter jets tore through the night sky of Tehran in the early hours of Friday morning, and the screens of cryptocurrency trading platforms were instantly flooded with blood. Bitcoin plummeted 2.6% to $104,823 on mainstream exchanges such as Binance and Coinbase, Ethereum plummeted 8% to $2,539 on the Kraken platform, and Solana plummeted 9.3% on the FTX legacy ecosystem exchange. The escalation of tensions in the Middle East has made blockchain assets the "number one victim" of risk selling. "Investors are frantically withdrawing from any risk-linked positions," Monica Deng, head of trading at quantitative fund Pantera Capital, warned clients in an emergency conference call, "Once the Strait of Hormuz is blocked, BTC may instantly test the psychological barrier of $100,000." According to data from the Coin World Network, the net outflow of centralized exchanges in the past 24 hours reached $1.8 billion, and the slippage of the ETH/USDC trading pair of XBIT (DEX Exchange) such as Uniswap expanded to a rare 1.5%.

Derivatives betting under Powell's "eagle claws": SOFR futures are a hidden danger. In the dark pool trading of Chicago Mercantile Exchange (CME), a gamble on the power of the Federal Reserve is quietly being laid out. The price difference between March and June SOFR futures contracts plummeted to -15 basis points this week, the largest inversion in history. Traders frantically sold March 2026 contracts and bought June contracts, betting that the power vacuum after Powell's departure will trigger a rate cut. "This is essentially a short on the independence of the Federal Reserve," Goldman Sachs derivatives strategist Mark Wilson pointedly pointed out in the morning report, "The spread inversion has exceeded the level of the 'repo crisis' in 2019." The door of the office of Luis de Guindos, vice president of the European Central Bank, was closed in Frankfurt. It was revealed that he had secretly ordered eurozone banks to submit a stress test report on US dollar liquidity within 72 hours, pointing directly to the fatal weakness of "Trump may weaponize swap agreements." A more covert action is brewing in Basel - in the CEPR think tank proposal, 14 central banks plan to build a $1.9 trillion emergency fund pool under the framework of the Bank for International Settlements (BIS), intending to rebuild the financial lifeline outside the Federal Reserve.

When Trump signed a financial disclosure document at Mar-a-Lago in Palm Beach, his cryptocurrency landscape was exposed for the first time. The document shows that the meme coin \$TRUMP brought it $320 million in revenue, and its 24-hour trading volume on XBIT (DEX Exchange) PancakeSwap soared to $470 million. Even more amazing is the World Liberty Financial project - Trump holds 15.75 billion governance tokens, worth more than $5 billion, which can be freely exchanged on DeFi platforms such as Sushiswap. "This is not only an asset disclosure, but also a political statement," former CFTC Chairman Christopher Giancarlo told CNBC. "When a presidential candidate becomes the largest 'Dogcoin' dealer, regulators are completely speechless." The market reaction was extremely dramatic: the conflict in the Middle East caused the \$TRUMP coin to fall 5.3%, but on-chain whale monitoring showed that an anonymous address was continuously bottom-fishing through the 1inch aggregator, with a single transaction reaching US$12 million.

Wall Street's "Normandy Landing": The four major banks conspire to launch a blitzkrieg of stablecoins. In the underground conference room of JPMorgan Chase's headquarters in Lower Manhattan, a financial counterattack against technology giants is being deployed. It is reported that JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo plan to jointly issue "bank chain stablecoins", with the clearing network provided by Early Warning Services, which operates Zelle payment. "This is no longer a defense, but a nuclear weapon for the fight for payment hegemony," said Sarah Choi, head of Citigroup's blockchain, who participated in the closed-door meeting. "The goal is to seize 30% of the stablecoin market share during Trump's tenure." If Amazon or Apple issues stablecoins based on their user base, small and medium-sized banks across the United States may lose 25% of their deposits (FDIC internal stress test data). The Clearing House payment network has begun to transform the underlying architecture, and the new system can support 2 billion on-chain transactions per day-which is exactly three times Visa's global transaction volume.

The triple game of gold, treasury bonds and on-chain options. Faced with the dramatic restructuring of geopolitical and financial power, top institutions are building unconventional hedging portfolios: COMEX gold futures broke through $2,450, and the 10-year U.S. Treasury yield plummeted to 4.0%; Crypto Alpha: Deribit platform Bitcoin put option open interest surged by 40%, and the premium of the contract with a strike price of $100,000 reached a historical peak; Regulatory arbitrage: Long central bank-related tokens involved in the CEPR proposal (such as BIS's Project Agorá) "Now is not the time to choose sides, but the time to reconstruct financial DNA," Bridgewater Fund Co-Chief Investment Officer Bob Prince warned in a closed-door speech in Davos, "When Trump's meme coin competes with JPMorgan's stablecoin, the old order has collapsed."

History is being written at an accelerated pace on the distributed ledger of blockchains - there is no smoke of war here, but a more brutal struggle for financial power than the battlefield in the Middle East is taking place. As the gold reserve vehicles of central banks of various countries quietly drive to Zurich, and as Wall Street traders bet on Powell's fate on CME's SOFR contracts, the outline of a post-dollar hegemony era is gradually emerging from the chaos of the crypto world.

[blockinsider]

Bitcoin Whales Boost Bullish Outlook as BTC Hovers Near $56K

Key Points

Bitcoin briefly touched $58K before falling to $56,691 amid heightened volatility.

Bitcoin whales have been amassing Bitcoin, reducing selling pressure from short-term traders.

Bitcoin’s price briefly flirted with the $58K mark in the last 24 hours before retreating to $56,691 on Wednesday, during the mid-London trading session. The leading cryptocurrency experienced increased volatility today as the market reacted to the first US presidential debate between Donald Trump and Kamala Harris.

In the past three days, Bitcoin’s price has consistently closed above the crucial support level of around $56k. This has significantly reduced the fear of further crypto capitulation. The fear and greed index for Bitcoin was about 37 percent, up from 23 percent three days ago, indicating extreme fear.

Bitcoin Whales Increase Accumulation

On-chain data analysis reveals that approximately 236,155 Bitcoins, valued around $14.2 billion, have been withdrawn from various crypto exchanges. Whale investors have been offsetting the increasing selling pressure from short-term traders who are leaving the market. Following the recent jump in Bitcoin’s price, short-term Bitcoin holders sold over 14.8k BTCs, valued around $850 million.

In the past few days, a notable increase in the supply of stablecoins in crypto exchanges has boosted the overall buying pressure, presumably from institutional investors. Moreover, US spot Bitcoin ETFs have now recorded two consecutive days of net cash inflows after a period of outflows in the past two weeks.

On Tuesday, the US spot Bitcoin ETFs registered a net cash inflow of about $116 million, led by Fidelity’s FBTC and Grayscale Bitcoin Mini Trust (BTC).

Market Outlook

In the past 24 hours, several whale investors have made significant withdrawals from various crypto exchanges, including Kraken and Binance.

The Bitcoin market, along with the entire altcoin industry, is eagerly awaiting today’s US CPI data from the Bureau of Labor Statistics. This data will provide insights into the Federal Reserve’s decision on the economic outlook next week.

The probability of the Fed reducing rates next week remains high, as Canada and the European Central Banks have already initiated their respective interest rate cuts. The upcoming US general election is expected to trigger the next bullish phase as global liquidity increases.

What’s Next

From a technical perspective, Bitcoin’s price has been forming a weekly bullish flag in the ongoing correction since early March. This could result in a breakout in the fourth quarter. Furthermore, historical data suggests that Bitcoin’s price tends to perform well in the fourth quarter, compared to the third quarter.

However, Bitcoin’s bullish sentiment in the fourth quarter could be invalidated if the coin consistently closes below $50K in the coming weeks. In such a scenario, Bitcoin’s price would be headed towards the support level of around $40K.

[coineagle]

Controversy Sparks Massive Bitcoin Withdrawal: What’s Next for BTC?

Key Points

A significant outflow of 44,808 BTC from Binance coincides with market downturn and allegations against the exchange.

Bitcoin ETFs experience negative net flow and widespread liquidations, raising concerns about BTC’s recovery.

Binance’s Massive Bitcoin Outflow

On the 28th of August, Bitcoin [BTC] faced declines across various markets, including spot trading and Bitcoin ETFs popular in the U.S. Markets. This downturn coincided with a massive outflow of 44,808 BTC, worth over $2.6 billion, withdrawn from Binance in the last 24 hours.

This significant Bitcoin withdrawal came after allegations that Binance seized Palestinian assets at the request of Israeli authorities. Amid backlash, Binance quickly unfroze the accounts.

This massive outflow of Bitcoin could potentially impact the price of BTC, causing it to go in either direction. The Bitcoin may be held for long-term gains, possibly driving the price higher. Alternatively, a large sell-off could lead to a price decline.

Liquidations and Negative NetFlow in Bitcoin ETFs

In addition to the Binance withdrawal, the past 24 hours have seen 66,423 traders liquidated, amounting to $161.12M. The largest single liquidation occurred on Bybit’s BTC/USD pair for $3.52 million, followed by a $12.67 million liquidation on Binance’s ETH/BTC pair the day before.

These events have contributed to over $4.8 billion in liquidations for August 2024, the highest since 2021, with two days still remaining. As the market matures, participants are taking on larger leverage, leading to increased losses during strong market movements.

The massive BTC withdrawal from Binance also affected ETFs, which saw a net outflow of $105.19 million on August 28th. Despite these negative events, there is hope that Bitcoin’s negative correlation with stablecoins could lead to a turnaround.

The last 24 hours have seen over $67 million in USDC minted, $70M in USDC transferred to an unknown wallet and another $100 million USDT being transferred to Bitfinex. This influx of stablecoins into the market could inflate prices and potentially drive Bitcoin higher. With stablecoin graphs near all-time highs, a reversal for Bitcoin and other cryptocurrencies could be on the horizon.

[bitcoincables]

Crypto Markets Rally as Bitcoin ETFs See Daily Inflows of $400M

It has been a good week for the crypto markets, with most of the top 10 tokens seeing solid gains. Bitcoin is currently trading at around $47,600, up 10.7% over the past seven days. Ethereum has also experienced a surge, reaching $2,500 with a 9% gain. The market caps of both these cryptocurrencies have also risen.

Other top tokens, excluding stablecoins, have also seen positive movements. Binance Coin (BNB) is in third place with a 7.4% increase to $322. Among the top 100 digital assets, Solana's memecoin BONK and Layer 1 blockchain Sui are the best performers, gaining 21% and 18% respectively. Bittensor, an AI project, has also shown a 15% increase.

The recent gains in the market are attributed to growing investor interest in spot Bitcoin ETFs. On February 8, the sector saw $403 million in net inflows, the highest since January 17. The demand for Bitcoin from ETF providers reached 9,000 BTC, which is ten times the daily amount of newly issued Bitcoin. Fidelity's FBTC has surpassed $3 billion in assets under management, while Grayscale's GBTC saw an outflow of $101 million.

Read the original article #crypto #bitcoin #ethereum #investment

[cryptofansty]

Digifinex Labs: TrueUSD Depegging Continues: Hits Low Point of $0.97 as Holders Sell Off Millions, Net Outflow Reaches $154.5M

The depegging issue became evident on January 15 when TrueUSD fell below its U.S. dollar peg. Reports indicated that holders were selling off substantial amounts of TUSD, with Binance data revealing that users sold about $238.3 million worth of TrueUSD in the past 24 hours via the TUSD-USDT trading pair. Meanwhile, traders purchased approximately $83.8 million, resulting in a net outflow of around $154.5 million.

Earlier, on January 10, it was reported that TrueUSD had temporarily halted its real-time attestations of reserves. Speculation arose, with some users suspecting the company’s inability to collateralize the tokens. TrueUSD later attributed the incident to internal errors.

In response to these challenges, TrueUSD announced on Wednesday that it had fully upgraded its fiat reserve audit system in collaboration with Hong Kong-based accounting firm MooreHK. The upgraded attestation report provides additional details about the reserve funds held by financial and fiduciary partners.

Justin d’Anethan, Head of APAC Business Development at crypto market maker Keyrock, suggested that the recent announcement of MANTA in Binance’s launchpool program, along with the requirement to stake BNB or FDUSD, has led to a surge in investors selling TUSD in favor of other options.

The TrueUSD depegging situation and the subsequent actions by investors underscore the challenges faced by stablecoins in maintaining their pegs amidst market dynamics and investor sentiment.

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[dencyemily]

True USD (TUSD) Experiences Substantial Devaluation, Falling Below $1 Amid Growing Market Concerns

TrueUSD (TUSD), a major stablecoin, recently faced its most significant depegging event in nearly six years, plummeting to $0.984. The fallout from this event reverberated across the cryptocurrency market, impacting investor confidence and capital allocation. The incident sheds light on the challenges stablecoins face, especially those pegged to fiat currencies like the U.S. dollar. Furthermore, Binance's strategic decisions and the lack of clarity in TUSD's real-time reserve attestations have compounded the instability, prompting investors to reassess their positions.

TUSD's Devaluation and Market Reactions:

The recorded drop to $0.984 on January 15 marked a substantial depegging for TUSD, prompting a surge in sell orders on Binance. The outflows from Binance reached $128 million within 24 hours, indicating a swift reaction from traders. Concurrently, a significant inflow of capital was observed in USDT, as investors sought refuge amid the growing uncertainty surrounding TUSD.

Concerns About Real-Time Attestations:

The lack of clarity regarding TUSD's real-time reserve attestations fueled apprehensions about its stability. Investors raised alarms about the possibility of TUSD being under-collateralized, heightening concerns about redeeming the currency during market downturns. The incident emphasizes the critical importance of transparent and real-time information in maintaining stablecoin pegs and sustaining investor confidence.

Binance's Impact on TUSD:

Binance's strategic decisions played a pivotal role in TUSD's challenges. The exclusion of TUSD from Binance's MANTA launchpad initiative, coupled with the removal of the zero-fee trading benefit, signaled a shift in Binance's focus. The launchpad initiative, designed to reward investors with new tokens for locking up assets, lacked options for TUSD, leading investors to explore alternatives, notably FDUSD, Binance's newly favored stablecoin.

Market Dynamics and TUSD's Current Status:

In the aftermath of the depegging event, TUSD's market capitalization witnessed a significant decline. Meanwhile, FDUSD experienced an upward trajectory, highlighting a strategic realignment of Binance's focus. TUSD's current trading price hovers around $0.9878, with a 24-hour trading volume of $617,495,185. The incident underscores the dynamic nature of stablecoins and the challenges they face in maintaining stability amid market uncertainties.

Conclusion:

The recent devaluation of TUSD serves as a cautionary tale, emphasizing the inherent risks and volatility associated with stablecoins. Transparency and real-time information play a pivotal role in maintaining investor confidence and stablecoin pegs. Binance's strategic decisions further underscore the evolving dynamics in the stablecoin landscape, prompting a reevaluation of stablecoin preferences and risk assessments among investors.

[bennettforster]

Digifinex Labs: Crypto Exchanges Experience Surge in Bitcoin Deposits Amid Ethereum Outflow

As of December 4, 2023, crypto exchanges collectively held 2,058,106 BTC. Over the subsequent month, this figure increased by 1.55%, reaching a current total of 2,090,164 BTC. This represents a net accumulation of 32,058 BTC, valued at approximately $1.4 billion during the observed period.

Binance emerged as the leading custodian of BTC, holding 555,700 BTC, followed by Coinbase with approximately 412,467 BTC, and Bitfinex with 390,050 BTC. Together, these top three platforms safeguard a combined value of $59.71 billion, constituting 64.98% of the total BTC held on exchanges.

In contrast, Ethereum holdings on centralized trading venues declined. A total of 262,904 ETH, valued at $597.42 million, was withdrawn from exchanges. The data indicates a decrease from 14,226,502 ETH on December 4, 2023, to 13,963,598 ETH in the latest count. Additionally, ERC20 stablecoins, which are fiat-pegged tokens built on the Ethereum blockchain, experienced significant inflows into centralized trading platforms during the same period.

This observed shift suggests a dynamic market, with traders and investors potentially reallocating their portfolios between Bitcoin and Ethereum, possibly influenced by market conditions, investment strategies, or other factors impacting the crypto landscape.

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[ailtrahq]

The Bank for International Settlements (BIS) cited the concentration of crypto assets in banks as one of the reasons for the 2023 banking crisis. At the end of June 2022, banks had $4.2 billion in direct exposure to crypto assets. Signature Bank, the BIS argues, failed to perceive the risks of relying on crypto industry deposits, which disadvantaged it during the crypto collapses of 2022. It also did not have enough liquidity to satisfy outflows from non-crypto depositors spooked by the liquidation of Silvergate. BIS ‘Proactive Intervention’ Could Overreach According to the BIS, the failure of Silicon Valley Bank (SVB), which held cash reserves backing Circle’s USDC stablecoin, can be attributed to two factors. Its risk policies failed to match the growth of its asset base, and its management did not notice any problems with how the business ran or its balance sheet strategies. Its management also allegedly treated supervisory interventions as compliance exercises rather than opportunities to self-evaluate. Before failing in March, the bank had 31 open supervisory inquiries looking into different aspects of its business model and risk approach. Signature Bank Shares | Source: BIS Going forward, the BIS recommends regulators embrace a holistic approach that combines rules with proactive intervention when necessary. This approach, however, has legal risks since banks may resist any intervention lacking a legal basis. Read more: 2023 US Banking Crisis Explained: Causes, Impact, and Solutions Signs of legally murky intervention first occurred when the Federal Deposit Insurance Corporation asked the acquirers of Signature Bank to offload its crypto customers and assets worth $4 billion. The House Financial Services Committee during the Obama administration called similar efforts to strangle certain industries an abuse of power. Money Laundering Fears Still Palpable One of the obvious victims of the banking collapse was Circle, whose stablecoin lost $10 billion in market cap two weeks after SVB’s collapse. Many crypto users have since migrated to Tether, a larger but more controversial stablecoin. But a more interesting story is shaping up as the crypto collapse pushes regulators toward clearer crypto regulations. Hong Kong, Japan, South Korea, and some European countries offer licensing regimes for crypto firms that legitimize their operation. A side effect of this legitimacy is the need for registered firms to secure local banking partners. Banks are critical in transferring funds to exchanges and for cashing out holdings. However, many banks still fear poor Know-Your-Customer processes that make exchanges vulnerable to money laundering. Binance, for example, lost banking and payment partners after the US Commodity and Futures Trading Commission hinted it engaged in money laundering. Read more: 14 Best No KYC Crypto Exchanges in 2023 Initially, Asian branches of the HSBC and Standard Chartered banks hesitated to onboard crypto businesses because of money laundering associations. UK consumer banks, NatWest, Chase UK, and TSB Bank, have all placed restrictions on crypto-related transactions. Banks in Progressive Regions Are Being Proactive But the ice age is thawing. Customers of HSBC Hong Kong can invest in Bitcoin and Ethereum exchange-traded funds, provided they confirm their understanding of educational material on virtual asset investments. Before opening its fiat-to-crypto payment rails to licensed Hong Kong exchanges, ZA Bank operated a sandbox that involved 100 firms. It linked its systems to the city’s company register and conducts anti-money laundering procedures to minimize risk. South Korea’s oldest bank, Shinhan, is also testing remittances in a closed sandbox. Stablecoins insulate transfers from currency fluctuations and will benefit from the AML framework within which the bank already operates. Do you have something to say about the BIS report after the collapse of crypto banks or anything else? Please write to us or join the discussion on our Telegram channel.

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[ladookhotnikov]

Since 2019 the Number of People Employed in the Crypto Industry Has Grown by 160%

According to the report of the analytical company K33, as of the middle of this year the number of employees in the cryptocurrency market was about 190 thousand people while in 2019 there were about 73 thousand such employees.

Significantly, the largest number of employees in the crypto sphere – 211,000, falls on the second half of 2021. Be reminded that during this period a serious bull trend was observed on the market and in November bitcoin reached a historic high of $68,000.

After the change in trend and the subsequent crypto winter an outflow of specialists was noted.

The distribution of the labor force across sectors is also heterogeneous. Thousands of specialists work on the largest exchanges but management reacts to the market situation in different ways: Kraken has increased its staff by 150% since 2019 and there are layoffs at Binance, about a thousand people have been laid off this year alone.

Tether’s performance was a surprise. The developer of USDT, the largest stablecoin, has only 60 employees. Moreover, for several years there no staff cuts have been observed, regardless of the situation on the market.

[earningpill]

Binance Observes Largest Stablecoin Net Outflow In History

The cryptocurrency exchange Binance has recently observed its largest stablecoin net outflow in history, as revealed by a report. Binance Has Seen Large Stablecoin Withdrawals Recently Binance has been under some regulatory pressure from the US government this year. The latest example is the CFTC lawsuit against Changpeng Zhao, the exchange’s CEO, over alleged derivative trading violations. In…

[rajeshnews33]

Binance Observes Largest Stablecoin Net Outflow In History

The cryptocurrency exchange Binance has recently observed its largest stablecoin net outflow in history, as revealed by a report. Binance Has Seen Large Stablecoin Withdrawals Recently Binance has been under some regulatory pressure from the US government this year. The latest example is the CFTC lawsuit against Changpeng Zhao, the exchange’s CEO, over alleged derivative trading violations. In…

[blockinsider]

Ethereum Value Plummets as Whales’ On-chain Actions Intensify

Key Points

Ethereum’s price has been negatively impacted by increased on-chain activities of whales.

Despite the bearish outlook, Ethereum remains a popular choice among institutional investors due to its spot Ether ETFs.

The cryptocurrency market, dominated by Bitcoin (BTC) and Ethereum (ETH), has been experiencing a bearish trend in the last 24 hours. The total market cap of cryptocurrencies has decreased to approximately $2.39 trillion, leading to a forced liquidation of over $256 million in the past day, primarily involving long traders.

Latest data indicates that Ethereum’s price has fallen by over 8 percent in the past two weeks, trading around $3,141 on Friday during the mid-London session.

Ethereum’s Falling Trend and Whales’ Activities

The price of Ethereum has slipped below key support levels, including the daily 50 and 200 Moving Averages (MAs). Technically, Ethereum’s price has been in a downward trend for the past five months, even though it has established a solid support range between $2,814 and $2,927.

The Ethereum network has been a preferred choice among institutional investors in the altcoin industry following the approval of several spot Ether ETFs in the United States. These ETFs have provided institutional investors with a way to diversify their crypto portfolios.

Following the approval of the US-based spot Ether ETFs, the third day of net cash inflow was recorded yesterday, with approximately $26.7 million. Grayscale’s ETHE recorded a net cash outflow of about $77.95 million on Thursday, currently holding about $6.27 billion in total assets.

Increased Cash Inflows and Whale Activities

BlackRock’s ETHA and Filedilty’s FETH registered net cash inflows of about $89.66 million and $11.70 million respectively. In total, the US-based spot Ether ETFs have recorded a net cash outflow of about $456.43 million, with total assets under management of about $8.72 billion.

On-chain data analysis indicates that a whale address, associated with Elwood Technologies, deposited 19,500 ETH units, worth about $63.66 million, to the Binance crypto exchange in the past two days.

The Ethereum network continues to lead in the web3 ecosystem, with more than $56 billion in total value locked and over $78 billion in stablecoins market cap. As Ethereum celebrated its 9th anniversary, co-founder and lead developer Vitalik Buterin proposed several upgrades to keep the network competitive.

Despite the growing demand from institutional investors, Ethereum’s price has been consolidating recently, suggesting a sell-the-event narrative. However, Ethereum’s price is expected to reach its all-time high during the fourth quarter, driven by the anticipated interest rate cut and general election in the United States.

From a technical perspective, Ethereum’s price could fall to as low as $2,725 if the support level around $2,927 fails to hold in the coming weeks.

[blockgeni]

In less than a week, two of the banks that were most supportive of the cryptocurrency industry and the largest bank for tech entrepreneurs all failed. The federal government intervening to offer a safety net for depositors at two of the banks caused cryptocurrency prices to rise on Sunday night, but the situation also caused turbulence in the stablecoin market. A major financier for the cryptocurrency sector named Silvergate Capital announced on Wednesday that it will be closing down and liquidating its bank. Major startup lender Silicon Valley Bank failed on Friday after depositors withdrew more than $42 billion in response to the bank's disclosure on Wednesday that it needed to raise $2.25 billion to strengthen its balance sheet. Banking regulators seized Signature on Sunday night; it also had a significant crypto focus but was far bigger than Silvergate. About half of all U.S. venture-backed startups maintained cash with Silicon Valley Bank, along with several digital asset companies and crypto-friendly venture capital funds. Signature and Silvergate were the two primary banks for cryptocurrency companies. On Sunday, the federal government intervened to guarantee all deposits for SVB and Signature depositors. This move boosted confidence and led to a brief uptick in the price of cryptocurrencies. In the previous day, ether and bitcoin have both increased by almost 10%. Nic Carter of Castle Island Ventures claims that the government's readiness to support both banks indicates that it is once again pursuing a loose monetary policy rather than one that is tightening. This has historically been beneficial for cryptocurrencies and other speculative asset classes. Nevertheless, the unpredictability once more exposed the weakness of stablecoins, a segment of the cryptocurrency ecosystem that investors can usually count on to retain a specific price. The value of a real-world object, such as a fiat currency like the US dollar or a commodity like gold, is what stablecoins are meant to be tied to. But, unfavourable financial circumstances could push them below their fixed value. Not-so-stablecoins Since TerraUSD's demise in May of last year, many of crypto's issues over the past year have their roots in the stablecoin industry. In the meanwhile, during the past several weeks, regulators have focused their attention on stablecoins. After pressure from New York regulators and the Securities and Exchange Commission on its issuer, Paxos, Binance's dollar-pegged stablecoin, BUSD, experienced significant outflows. The second-most liquid U.S. dollar-pegged stablecoin, USDC, lost its peg over the weekend, plummeting as low as 87 cents at one point on Saturday after its issuer, Circle, acknowledged having $3.3 billion banked with SVB. As a result, the sector's confidence suffered once more. Circle has a reputation as one of the adults in the room in the ecosystem of digital assets because of its connections to and support from the traditional finance industry. It has long declared its intention to go public and raised $850 million from investors including BlackRock and Fidelity. On Saturday, DAI, another well-liked dollar-pegged virtual currency that is backed in part by USDC, went as low as 90 cents. Conversions from USDC to dollars have been momentarily stopped on Coinbase and Binance. Several traders started exchanging their USDC and DAI for tether, the largest stablecoin in the world with a market cap of more than $72 billion, on Saturday. Though tether's business methods and the condition of its reserves have been questioned, the issuing company did not have any exposure to SVB, and it is currently trading above its $1 peg as traders seek out safer havens. After Circle published a blog post on Sunday night stating that it will fill any gap utilizing company resources, the stablecoin market started to recover. Since then, the USDC and DAI have both turned back towards the dollar. Carter tells that

he anticipates USDC will trade at par now that it is obvious that SVB depositors will be made whole. 'The two most bitcoin-friendly banks' In the long run, bitcoin, the most valuable cryptocurrency in the world with a market value of $422 billion, may experience issues due to the closure of the crypto banking trinity. Customers of cryptocurrencies saw real-time payment platforms like the Silvergate Exchange Network (SEN) and Signature's Signet as essential services. Both companies offered fast settlement services that allowed business clients to make payments whenever they wanted, day or night, seven days a week. Carter stated that "bitcoin liquidity and crypto liquidity generally will be slightly affected" since "Signet and SEN were crucial for firms to get fiat in over the weekend." Carter also expressed hope that "customer banks" will step in to fill the hole left by SEN and Signet. In a post on the social networking platform Damus, Mike Brock stated that these two financial institutions supported the majority of currency settlement for bitcoin deals between trading counterparties in the United States. At Block, a division that concentrates on cryptocurrencies and decentralized finance, Brock is the CEO of TBD. Carter claims that even while the Fed's intervention to protect SVB's depositors would stop a greater bank run on Monday, it is nonetheless distressing to watch the three most crypto-friendly banks shut down in a matter of days. For crypto companies, their alternatives are currently quite limited, and unless new banks enter the market, there won't be enough liquidity. Many in the sector are switching to Mercury and Axos, two other banks that serve startups, according to Mike Bucella, a longstanding investor and executive in the crypto business. Given that Signature Bank is closing, Circle has already made it known publicly that it is transferring its assets to BNY Mellon. Crypto banking in North America is difficult in the short run, according to Bucella. The extended tail of challenger banks, though, could take up that slack. Source link  

[bitcoincables]

Week in Review: Bitcoin ETFs, Terra, and SEC Spark Speculations in Crypto Market

Another exciting week in the crypto market has come to an end, with significant developments taking place globally. Three topics that sparked a lot of speculation among crypto enthusiasts were Bitcoin ETFs, Terra, and the US SEC. Let's dive into the details!

One major news this week was the bankruptcy filing of Terraform Labs (TFL), the company behind the Terra USD stablecoin. This led to the delisting of the LUNC token by popular crypto exchange Crypto.com. Meanwhile, the Terra Luna Classic community had important voting sessions on proposals such as "Consistently set ICA Controller Parameter" and "L1TF Terra Classic core security upgrade package." While there was initial support for these proposals, some community members voted against them, causing a roadblock.

Bitcoin ETFs also made headlines this week, causing volatility in the market. Traders worldwide paid close attention as Bitcoin saw outflows worth $25 million. In Europe, CoinShares reduced its physical Bitcoin fees, intensifying competition with Invesco and WisdomTree. Among the contenders for the U.S. ETF race are BlackRock, Fidelity, and Bitwise, while Grayscale observed significant outflows, although they have been decreasing over time. Bitcoin's price had its share of ups and downs, pulling back to $38K before recovering to $41K.

The US SEC made its presence felt with its response against Ripple, stating that certain discovery requests are procedurally correct while seeking penalties from Ripple. In another legal battle involving Binance, the regulatory body cited Zakinov vs Ripple Labs. Ripple also sent a letter to Magistrate Judge Sarah Netburn, highlighting factual mischaracterizations made by the U.S. SEC. All in all, it was an eventful week with many developments and speculations in the crypto market.

(Read the original article)

[wafact]

CZ Downplays Links to BUSD: But 90% of BUSD Is on Binance

The US’s heavy regulatory hand is rocking crypto exchanges. After a New York regulator ordered Paxos to stop issuing Binance USD stablecoin, markets panicked. Binance has seen hundreds of millions in outflows, while BUSD briefly lost its peg to the dollar.  On Monday, Binance saw $913M in net outflows, according to data from Dune Analytics. That is the largest net outflow from an exchange since…