El Salvador president Nayib Bukele, who recently began a six-month leave from office in order to focus on his reelection campaign, has stated that El Salvador’s Bitcoin (BTC) investment has turned profitable due to Bitcoin’s recent surge past $41,000.

Bukele wrote.

“El Salvador’s Bitcoin investments are in the black. With the current Bitcoin market price, if we were to sell our Bitcoin, we would not only recover 100% of our investment but also make a profit of $3,620,277.13 (as of this moment).”

However, data from NayibTracker, a data aggregator monitoring El Salvador’s Bitcoin holdings, contradicts Bukele’s statement, showing the Central American country’s BTC holdings at an unrealized loss of $2.15 million.

Per the site, the country’s average BTC purchase price is $42,434, while the top cryptocurrency traded for $41,623 as of press time.

Still, the data marks a significant turnaround for a country whose BTC holdings had recorded nearly $20 million in unrealized losses in October amid the flagship asset’s spike to $35,000.

Over the weekend, BTC’s price broke $41,000 amid continued market optimism surrounding a possible approval for a spot exchange-traded fund (ETF) in the U.S.

El Salvador won’t sell

Bukele stated that El Salvador has no intentions of selling its BTC holdings, reaffirming a long-term strategy regardless of future price fluctuations. He said:

“We have no intention of selling; that has never been our objective. We are fully aware that the price will continue to fluctuate in the future, this doesn’t affect our long-term strategy.”

The Central American country has emerged as one of the most pro-BTC jurisdictions in the world since it made the flagship digital asset a legal tender in 2021. Since then, several crypto companies, including Binance, and major industry stakeholders have touted the country’s pro-crypto legislation.

However, El Salvador’s BTC move has attracted detractors whom Bukele described as “naysayers,” who have written “thousands of articles and hit pieces that ridiculed [the country’s] supposed losses.”

The post Nayib Bukele claims profit on El Salvador’s Bitcoin despite data showing losses appeared first on CryptoSlate.

The total value of assets under management for crypto-related investment products surged 107% to $46.2 billion on the heels of the tenth consecutive week of inflows recorded by these products.

Per CoinShares’ weekly report, crypto products recorded a robust inflow of $176 million during the past week, bringing its total for the 10-week influx to an impressive $1.76 billion. The asset manager noted this sustained influx is the most substantial since Oct.2021, coinciding with the launch of a futures-based ETF in the United States.

Notably, these inflows have amplified Exchange Traded Products (ETP) trading volumes to around $2.6 billion, constituting 12% of Bitcoin’s (BTC) overall trading volumes.

The run of inflows can be attributed to the market optimism surrounding the potential approval of a spot Bitcoin ETF in the U.S. During the past months, several established financial institutions, including BlackRock, applied for a spot Bitcoin ETF with the Securities and Exchange Commission (SEC).

This unfolding scenario and the SEC’s active interactions with the applicants have heightened market anticipation about a possible approval for the numerous applications.

Bitcoin dominates inflows

Bitcoin remains a major beneficiary of the interest in the market, recording a substantial inflow of $133 million last week. Short-Bitcoin products reversed their three-week outflow trend to register a $3.6 million influx.

The inflow into short BTC products could be linked to the recent bullish performance of the top cryptocurrency, breaking the $41,000 barrier earlier today, Dec. 4, amid a persisting strong market performance.

Similarly, Ethereum (ETH) observed a notable inflow of $31 million last week, marking a five-week streak of $134 million. Consequently, Ethereum has reversed its prolonged negative sentiment, achieving a net inflow of $10 million for the year.

In contrast to the positive trends, Litecoin (LTC) stood as the only asset to experience an outflow last week, tallying around $0.2 million in negative movement amidst the overall surge in digital asset investments.

Across regions, last week’s influx was primarily fueled by investors from Canada, Germany, and the U.S., contributing $79 million, $57 million, and $54 million, respectively.

Conversely, investors from Hong Kong caused a $15 million outflow from the market. While the Asian market remains relatively small, it is the only region witnessing a year-to-date net outflow.

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Quick Take

The year 2023 has marked a shift in the Ethereum to Bitcoin ratio. Despite Ethereum’s substantial dollar value growth of 88%, it has significantly underperformed compared to Bitcoin, being down by 25% against the lead digital asset. The ratio currently sits at a precarious 0.053, teetering near year-to-date lows.

This trend invites speculation as to whether the crypto landscape may soon witness a further dip in Ethereum’s performance. The BTC-ETH Dominance metric, an oscillator that tracks the macro outperformance trends between Bitcoin and Ethereum, provides some relevant insights. It gauges the Bitcoin Market Cap’s dominance over the combined market cap of Bitcoin and Ethereum, normalized around a long-term mean using a 0.765 factor.

Higher values and uptrends point towards Bitcoin outperforming Ethereum, while lower values and downtrends signal Ethereum’s superior performance. Currently, we are technically in an era of Ethereum dominance, with the metric at -0.016, which is the lowest level since Ethereum dominance began in May 2021. Traditionally, Ethereum tends to outperform Bitcoin during bull markets, raising the question: Could this be the first bull market where Bitcoin outpaces Ethereum?

The post Bitcoin primed to outpace Ethereum during bull market for first time next cycle appeared first on CryptoSlate.

The U.K. Treasury Committee is unsure if the benefits of a retail Central Bank Digital Currency (CBDC), or digital pound, will outweigh its risks as its introduction could pose significant challenges and risks to the economy.

Concerns about retail digital pounds

The lawmakers argued that the introduction of retail digital pounds could make the U.K. economy more susceptible to bank runs if people can quickly switch large amounts of bank deposits into digital pounds in times of market turmoil.

According to the authorities, this would increase the risk of bank failures and could lead to some banks increasing their loan interest rates by 0.8 percentage points or more. The Bank of England noted that interest rates on loans could rise by 20 basis points if 20% of bank deposits turned digital.

Besides that, the lawmakers furthered that an introduction of a digital currency poses strong privacy and data concerns and strongly advised that “any primary legislation used to introduce a digital pound [must] not allow the Government or Bank of England to use the data from a digital pound for any purposes beyond those already permitted for law enforcement.”

Lawmakers recommendations

The U.K. lawmakers suggested that the project should proceed if the authorities could amplify the currency’s benefits while effectively mitigating associated risks.

The lawmakers also rejected the Bank of England and Treasury’s proposed  £10,000-£20,000 (between $12,000 and $25,000) holding limit. Instead, they suggested a lower limit that could be increased over time to “reduce the risk of large-scale outflows from bank deposits into digital pounds.”

“It must be clearly evidenced that a retail digital pound will provide benefits to the U.K. economy without increasing risks or leading to unmanageable costs before any decision is taken to introduce it into our financial system,” said the committee’s chair, Harriett Baldwin.

When will the U.K. launch the digital pound?

The U.K.’s CBDC development journey began in 2020 when the Bank of England introduced a discussion paper and subsequently established a joint task force with H.M. Treasury in 2021, achieving several milestones, including publishing a consultation paper.

A final decision regarding the project’s launch might not be made until the latter half of this decade. However, the authorities are currently in the “design phase” regarding a potential digital pound.

“While we support the Bank of England’s plan to continue working on the design of a potential retail digital pound, I would urge them to proceed cautiously and maintain a genuinely open mind as to whether one is actually needed,” Baldwin concluded.

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Mantle, the DAO-led web3 ecosystem, today unveiled its Mantle Liquid Staking Protocol (LSP) as a key addition to the Mantle Ecosystem, offering users a novel way to engage with Ethereum’s proof-of-stake (PoS) validator network, according to a statement shared with CryptoSlate.

The Mantle LSP is a permissionless and non-custodial Ethereum (ETH) liquid staking protocol, functioning on Ethereum L1 and governed by Mantle. It stands as the second core product of the Mantle Ecosystem, following the Mantle Network L2. Mantle posits that the introduction of Mantle Staked Ether (mETH), a value-accumulating receipt token, is a pivotal step in their protocol.

Mantle detailed that the genesis of Mantle LSP began with a proposal in a Mantle forum on July 14, 2023. Following the acceptance of the Mantle Governance Proposal MIP-25, the staking of Mantle Treasury ETH was sanctioned, leading to the phased deployment of Mantle LSP. This process culminated in the protocol’s full operational launch on Dec. 4, transitioning it into a Permissionless Mode.

Mantle LSP distinguishes itself by offering instant and sustainable rewards. Users staking ETH receive mETH, a token embodying their staked value and accumulated rewards, while also unlocking additional yield opportunities within the Mantle Ecosystem. Mantle states that the ETH to mETH exchange rate is deterministically calculated, thus mitigating the impact of stake size on slippage. Furthermore, mETH is available for trade on various exchanges, with its pricing governed by market dynamics.

Mantle emphasizes that their protocol underscores a commitment to user experience, security, and yield optimization. Mantle states its LSP features a streamlined architecture, focusing on the ETH to mETH conversion process on L1, and avoids complexities associated with other PoS tokens and chains. The protocol’s design incorporates robust risk management strategies, including non-custodial core smart contracts and off-chain services that impose strict risk limits. Additionally, Mantle LSP’s security framework involves dividing responsibilities among various roles, ensuring the safeguarding of staked ETH within smart contract addresses.

With the launch of Mantle LSP, Mantle intends to enhance its DeFi offerings by exploring the adoption of mETH across various applications within its ecosystem and beyond. This expansion aims to bolster the utility and efficiency of mETH, contributing significantly to Mantle’s growth in the DeFi space.

The broader Mantle ecosystem, anchored in Ethereum technology, now includes the Mantle Network, an Ethereum layer 2 (L2) solution, Mantle Governance, a decentralized autonomous organization (DAO), and Mantle Treasury, one of the largest on-chain treasuries. The ecosystem is facilitated by the Mantle token (MNT), which serves as a product and governance token.

The post Mantle introduces mETH liquid staking protocol, expanding its Ethereum-based DeFi ecosystem appeared first on CryptoSlate.

Quick Take

Data from Deribit paints a compelling picture of Bitcoin’s potential by the end of Q1 2024. Based on strike price, options open interest pinpoints a possible value of $50,000 for Bitcoin by March 29. The call wall at this price is robust, exhibiting a notional value of $275 million, which dwarfs the notional values of put options.

This imbalance is reflected in the put/call ratio (0.32), indicating a significantly higher call options volume. It is important to note that the total notional value set to expire is a staggering $2 billion, with a max pain price of $31,000.

The undercurrent of these data suggests a potential gamma squeeze, which, given the low levels of put options (all below $30,000), is likely to orient towards the upside rather than the downside.

This analysis proposes a potentially bullish scenario for Bitcoin as we edge closer to Q1 2024.

The post Deribit data hints at $50,000 Bitcoin value by March 2024 amid potential gamma squeeze appeared first on CryptoSlate.

Standard Chartered-backed Zodia Custody has integrated with Ripple-owned Metaco to streamline institutional crypto custody services, according to a Dec. 4 statement.

The integration allows institutions to access Zodia Custody’s high-security solutions through Metaco’s platform. Institutions can leverage both platforms to enhance security measures, risk management, and solvency protection.

The announcement stated that institutions connected to Metaco’s network, serving as an initial use case for sub-custody networks, can now leverage Zodia Custody’s bank-grade solutions. This includes access to off-exchange settlement services like Interchange.

“This collaboration strengthens the global digital asset infrastructure by improving connectivity to the foundational Layers 0 and 1 on the blockchain — creating a robust settlement network built on blockchain rails,” Zodia said.

Zodia Custody stated that the collaboration is part of its plan to become the most connected custodian in the digital asset ecosystem. The partnership also furthers its plans to develop and launch its network during the fourth quarter of this year.

James Harris, Zodia Custody’s chief commercial officer, described the move as an “important step” to “building [a] truly rigorous digital asset infrastructure, globally.” He added that the company is “focused on expanding the options available to our clients via our financial network, thus ensuring Zodia Custody can become a truly comprehensive digital asset solutions provider.”

Additionally, Zodia Custody said the collaboration is further evidence of its commitment to keeping its client assets safe at rest and in transit across the Interchange network. This includes trades connected to exchanges, transferred assets to institutions aligned on KYC and AML practices, and used as collateral in protocols to meet regulatory requirements.

Adrien Treccani, the founder and CEO of Metaco, added:

“As the industry undergoes a pivotal transformation, our networked infrastructure is dedicated to standardise, govern and connect institutional digital asset flows — an essential step in forging use cases that transcend individual companies.”

Since its launch in 2020, Zodia Custody has experienced significant growth, expanding its operations into Hong Kong and Singapore, following earlier expansions into Japan and Australia.

The post Standard Chartered-backed Zodia Custody partners with Ripple institutional network Metaco appeared first on CryptoSlate.

Quick Take

Bitcoin is witnessing a significant surge in its hash rate, with the recent figures setting new single-day records. On Dec. 1, the hash rate reached a high of 578 eh/s, followed by another notable surge on Nov. 3, where it achieved 558 eh/s.

Amid this surge, the Bitcoin network is less than a week from its next difficulty adjustment. This adjustment, currently in the positive territory by just over 1%, is poised to be the seventh consecutive positive adjustment. This sequence of positive adjustments mirrors a similar trend observed after the China mining ban in Summer 2021, which led to a steep % drop in the hash rate by 50%.

Despite the parallels, the present context differs significantly as it is marked by a marked increase in the hash rate rather than a decline. This expansion in the Bitcoin mining network’s computational power demonstrates its resilience and adaptability, critical factors in its long-term viability.

The post Bitcoin hash rate sets new records ahead of difficulty adjustment appeared first on CryptoSlate.

Coinbase CEO Brian Armstrong recently discussed Bitcoin’s (BTC) potential role in advancing Western civilization through currency innovation in a Nov. 4 post on social media platform X (formerly Twitter).

Armstrong highlighted Bitcoin’s capacity to combat inflation, a prevalent issue linked to traditional fiat currencies. He emphasized that the prevailing trend allows countries with reserve currency status, such as the U.S. Dollar, to inflate their money supply and escalate deficit spending while exerting significant global influence.

The Coinbase CEO argued that BTC now presents a viable alternative that addresses this inflation dilemma associated with fiat currencies like the Dollars, Yuan, and Euros.

“What I think many haven’t considered is that people have an alternative now with crypto. They may start moving fiat into crypto, as an antidote to inflation,” Armstrong said. 

Meanwhile, Armstrong dismissed notions that the shift to crypto directly threatens the U.S. Dollar. Instead, he envisioned it as a natural mechanism to balance and support the dollar, potentially safeguarding long-term American interests.

He articulated that migrating assets from dollars to cryptocurrencies is preferable to relocating them to another country’s fiat currency.

“I don’t think this be a threat to the dollar and the U.S., I think it will be a natural check and balance that will complement the dollar, and be the best defender of long term American interests (and western civilization more broadly). It’s better to move from dollars to crypto than to another country or region’s fiat.”

Armstrong further advocated for the coexistence of fiat and crypto, asserting that they complement rather than substitute each other. He also highlighted the role of dollar-backed stablecoins like USDC in facilitating this transition.

Additionally, Armstrong underscored Bitcoin’s advantage over fiat currencies, emphasizing its ability to uphold the fundamental principles of economic freedom, which he believes the West is currently at risk of losing.

Coinbase ‘Break The Cycle’ BTC ad melts heart.

Over the weekend, Coinbase’s ‘Break The Cycle‘ ad wowed the crypto community by explaining how the current traditional financial system prevented people from achieving their lifelong dreams.

As of press time, the advert had generated more than 4 million views on social media platform X and drew praises from major stakeholders who hailed its approach of explaining why people must break out of the current system.

For context, Dogecoin co-founder Billy Markus explained that the ad showed why people were increasingly choosing crypto.

“[The ad] shows why a lot of people got into crypto, especially relatively recently – the system is failing for them and they look for alternatives framing it this way, Elizabeth Warren and her ilk are the enemies of the people,” Markus said.

The post Coinbase CEO Brian Armstrong advocates for Bitcoin as ‘check and balance’ to the US financial system appeared first on CryptoSlate.

Quick Take

The digital asset market has just witnessed a significant financial reset as over $214 million was liquidated in just 24 hours, with $166 million pertaining to short positions.

The major player in this shakeout is none other than Bitcoin, shouldering the brunt with $84 million. Simultaneously, Binance has found itself at the heart of these liquidations, counting a substantial $82 million, according to Coinglass.

A closer look at the Binance BTC:USDT pair reveals a pressure point of leverage perched precariously above the $42,000 mark, representing approximately $50 million. This sizable overhang of leverage could trigger further price volatility and subsequent liquidations if the market breaches the $42,000 threshold, a scenario that market watchers should monitor closely.

In addition, the total value of funds tied up in open futures contracts, also known as ‘open interest,’ has seen a notable surge, increasing 7% in the past 24 hours. This equates to 467,000 Bitcoin tied up in these contracts. However, despite this recent spike, it falls short when compared to the open interest figures from August, where the open interest was at 480,000 BTC when Bitcoin was trading at around $26,000.

The post Over $200 million liquidated in crypto market as shorts takes the hit appeared first on CryptoSlate.

Quick Take

Over the past weekend, Bitcoin achieved a significant financial milestone, reaching a new year-to-date high of $41,700.

This surge propelled Bitcoin into the top ten assets by market cap globally, a testament to the digital assets growing influence in the financial sphere. With a market capitalization of $813 billion, Bitcoin managed to surpass Berkshire Hathaway and even Tesla, the first of the so-called “magnificent seven” tech stocks.

In a telling sign of the times, Meta, formerly known as Facebook, is now in ninth place with a market cap of $834 billion. The remaining stocks and commodities that have a higher market cap than Meta are in the trillion-dollar club.

In the precious metals market, Gold marked the start of its trading day with a record peak, nearly touching the $2,150 mark. However, it subsequently pulled back to $2,068. Year-to-date, Gold has appreciated by 12%. In stark contrast, Bitcoin has shown a much more dramatic surge with a year-to-date increase of 150%. This highlights a growing divergence in the performance of traditional and digital assets.

The post Bitcoin vaults into global top ten assets, surpassing Berkshire Hathaway and Tesla appeared first on CryptoSlate.

Swiss banks, Cantons of Basel-City, and Zurich have successfully issued digital bonds using real CHF wholesale central bank digital currency (wCBDC) on SIX Digital Exchange (SDX). This marks the first-ever issuance of this kind, leveraging the Swiss National Bank’s (SNB) wCBDC.

The digital bonds issued by Basel-City (ISIN: CH1265890678) and Zurich (ISIN: CH1306117073) represent a bold step in the utilization of distributed ledger technology (DLT) in mainstream financial operations.

This move is a part of Project Helvetia Phase III, launched by the SNB on Nov. 2, 2023, aimed at facilitating pilot wCBDC transactions for financial institutions from Dec. 2023 until mid-2024. As part of this ambitious project, Basler Kantonalbank and Zürcher Kantonalbank served as the issuer agents for the cantons.

The use of DLT in this financial market infrastructure is a pivotal moment, as David Newns, Head of SIX Digital Exchange, notes. He said,

“The settlement of the first securities transactions in wCBDC in a developed economy on regulated blockchain-based infrastructure in a production environment represents a major milestone for the entire industry,”

SIX Digital Exchange, a fully regulated financial market infrastructure for digital assets, is licensed by Switzerland’s financial market regulator, FINMA, and operates both as a stock exchange and a central security depository.

The implications of this development extend beyond the Swiss financial markets. It highlights the potential for efficiency gains and increased transparency in global financial transactions. Moreover, it showcases the evolving role of tokenized, DLT-based financial markets infrastructure, possibly setting a new standard in the industry.

As emphasized by Thomas J. Jordan, Chairman of the Swiss National Bank’s Governing Board,

“With this pilot project, we are now, for the first time, making it possible to securely and efficiently settle transactions with tokenized assets on a regulated and productive DLT platform using real wholesale CBDC.”

It’s important to note that while all blockchains are a form of DLT, not all DLTs are blockchains. Blockchain is a specific type of DLT that uses cryptography to control new units, distinguished by its data structure being bundled into blocks and then chained together sequentially. However, DLT can also include other structures that don’t necessarily organize data into blocks or chain them.

The pilot highlights explicitly the use of DLT over blockchain, indicating that the Swiss financial sector is exploring a broader range of distributed ledger technologies beyond the traditional blockchain model.

The post Swiss banks issue first digital bonds using real CHF wholesale wCBDC on regulated DLT platform appeared first on CryptoSlate.

Bitcoin’s (BTC) price zipped past $41,000 for the first time in the last 19 months earlier today, Dec. 4, fueled by the unending optimism surrounding a possible spot exchange-traded fund (ETF) approval in the U.S.

The top digital asset gained more than 5% during the last 24 hours to trade at $41,448 as of press time, continuing an upward price movement that emerged over the weekend, according to CryptoSlate’s data.

Data from Coinglass shows that BTC’s price action liquidated more than $70 million from short traders during the reporting period, with the single largest liquidation occurring on Bitmex, valued at $6.01 million.

BTC’s rally follows a recent revelation that the Securities and Exchange Commission (SEC) met with several asset managers, including Grayscale, BlackRock, and others, towards the end of November regarding their proposed spot Bitcoin ETFs.

Meanwhile, the price increase has made BTC one of the world’s top 10 assets by market capitalization, ahead of Warren Buffet’s Berkshire Hathaway and Elon Musk’s electric car maker Tesla. However, it remains a few billion behind social media behemoth Meta, according to data from CompaniesMarketCap.

BTC’s market capitalization stands at $811.89 billion as of press time, according to CryptoSlate’s data.

Ethereum, others surge.

BTC’s upward movement also lifted the value of several alternative cryptocurrencies, including Ethereum, Solana, and Cardano, which posted significant gains during the reporting period.

ETH, the second-largest digital asset by market cap, increased by more than 4% to break $2,200 for the first time since May 2022. Its ascent could also be attributed to the optimism surrounding the spot Ethereum ETF applications filed by several traditional financial giants, including BlackRock.

On the other hand, Solana continues its year-long positive momentum, breaching the $65 mark during the weekend before mildly retreating to $64 as of press time, according to CryptoSlate’s data.

Others like Cardano, Dogecoin, BNB, and XRP saw more than 2% gains during the reporting period. Notably, Terra-related coins—Terra Classic and Terra Luna– are among CryptoSlate’s top gainers list today.

The post Bitcoin zips past $41,000 amid unending ETF optimism appeared first on CryptoSlate.

Blockstream CEO Adam Back said on social media that he believes Bitcoin (BTC) will likely hit $100,000 before its next halving, causing a blend of excitement and skepticism within the cryptocurrency community.

Back also believes that Bitcoin could potentially reach between $750,000 to $1 million per token under a bullish scenario. While some enthusiasts align with Back’s bullish outlook, others criticize what they see as speculative guessing in an unpredictable market.

$100K BTC

The conversation began with a tweet from Bitcoin analyst and author Vijay Boyapati, asking if Bitcoin could hit an all-time high (ATH) before the halving. Back boldly responded with an affirmative, saying:

“That’s what I’ve been saying, my bet is $100k before the halving.”

Back’s prediction goes against the flagship crypto’s historic price trend, which has never broken above a previous cycle’s all-time high before the halving. In the past two cycles, BTC price began its breakout movements months after the halving as supply and demand settled at new levels.

Bitcoin’s current all-time high is roughly $69,000, and many believe that a monumental move above the previous high is unlikely.

However, some in the community argue that the next bull run will entail vast amounts of institutional money as spot exchange-traded funds (ETFs) related to Bitcoin finally secure regulatory approval in the U.S.

One X (formerly Twitter) user pointed out that the most recent bear cycle took BTC below its previous all-time high — something that had also been unprecedented until last year.

Many community members echoed Back’s sentiment of a bull run magnitudes greater than any that have come before due to factors like institutional investors and the mainstream acceptance of Bitcoin. Additionally, the flagship crypto enjoys a regulatory status akin to commodities like gold, even in the U.S., where watchdogs have been cracking down on the industry.

Optimistic speculation

While Back’s predictions align with optimistic market sentiments and the historical tendency for Bitcoin to surge post-halving, some community members are wary — calling the prediction optimistic speculation at best.

Critics of his statement pointed out the inherent uncertainty of cryptocurrency markets, emphasizing that even expert opinions should be taken with caution. They argued that making high-stakes predictions can be misleading, especially for less experienced investors who might interpret them as guarantees.

Meanwhile, some argued that the unprecedented move would not be a positive one, with some making parodical claims of Bitcoin falling to $3,000 in the coming years.

The debate reflects the broader dichotomy within the cryptocurrency community: a clash between cautious realism and optimistic speculation. As the halving nears, these divergent views underscore the unpredictable nature of the market.

Whether Bitcoin reaches the $100k mark pre-halving as Back predicts remains to be seen, but the discussion it has spurred is a testament to the dynamic and ever-evolving narrative of Bitcoin and the wider cryptocurrency landscape.

The post Blockstream CEO bets Bitcoin will hit $100K before the halving appeared first on CryptoSlate.

Bitcoin has broken the $40,000 barrier, a significant milestone energizing the crypto space. In the past 24 hours alone, $23 billion in trading volume was recorded, showcasing the intense market activity surrounding the world’s premier cryptocurrency.

This rally was further bolstered by a $15 million in short liquidations, indicating a strong bullish sentiment among investors.

The ETF expectation: A Turning Point

The U.S. Securities and Exchange Commission (SEC) engaged in pivotal discussions with Grayscale and seven other applicants for spot Bitcoin ETFs to fuel this optimism.

These meetings, particularly the ones involving Grayscale’s CEO Michael Sonnenshein and its custody partner, Coinbase, indicate a heightened interest and potential shift in the regulatory stance towards cryptocurrency ETFs.

Notably, the SEC’s interactions weren’t limited to Grayscale. Conversations with giants like BlackRock and Hashdex and other notable asset managers like Bitwise, VanEck, Fidelity, and Invesco signal a comprehensive review of the crypto ETF landscape.

The discussions varied from technicalities like in-kind versus cash redemption models to broader regulatory implications.

MicroStrategy’s strategic Bitcoin accumulation

MicroStrategy, under the visionary guidance of CEO Michael Saylor, has further cemented its position as a major Bitcoin proponent by acquiring an additional 16,130 BTC.

This latest purchase elevates the company’s total Bitcoin holdings to a staggering 174,530 BTC, marking it as their third-largest acquisition since adopting a Bitcoin-focused strategy.

Halving countdown adds to enthusiasm

Further fueling the market’s bullish outlook is the anticipation of Bitcoin’s halving event, slated to occur in 141 days. Historically, halving events, which reduce the rate of new Bitcoin creation, have been precursors to significant price rallies.

This upcoming halving is increasingly a catalyst for sustained growth and long-term value appreciation in Bitcoin.

Despite the SEC’s reticence in outright approving a spot Bitcoin ETF, these recent developments, coupled with the trading fervor and the upcoming halving, paint a picture of a crypto market on the cusp of a transformative era.

As the world of finance watches closely, Bitcoin’s latest leap beyond $40,000 could very well be the harbinger of a new chapter in the crypto narrative.

The post Bitcoin price hits $40k amid ETF discussions and BTC halving anticipation appeared first on CryptoSlate.

U.S. Space Force Major Jason Lowery has brought a novel perspective on Bitcoin to light, extending its significance far beyond finance and into national defense and cybersecurity.

In a detailed letter to the Defense of Defense’s (DoD) Innovation Board, Lowery argued that Bitcoin and similar proof-of-work (PoW) protocols hold substantial strategic importance, urging the government to delve deeper into their potential applications.

Macrochip

The major’s letter contextualized Bitcoin within the military strategy of an offset approach. The concept historically involves leveraging technological advancements to counterbalance adversaries’ strengths.

Lowery suggested that Bitcoin and its underlying technology could serve as contemporary tools in this regard, potentially redefining the landscape of cyber warfare and defense.

Lowery described Bitcoin as a pioneering “macrochip,” a concept that transforms the global electric power grid into a vast, resource-intensive computer. This innovative approach, he argued, introduces physical costs into the digital domain, offering a new method of securing a wide array of data across the internet.

According to Lowery, this strategy challenges the conventional paradigms of cybersecurity and could mark a significant shift in protecting national interests in the digital age.

Lowery also addressed the ongoing challenges in cybersecurity, highlighting the inadequacies of existing software-based solutions. He proposed that the proof-of-work protocol, as exemplified by Bitcoin, represents a significant innovation in this field.

By introducing the notion of real-world physical costs as deterrents in cyberspace, this approach could revolutionize the way digital security is enforced.

Recommendations to DoD

The letter further explored the implications of this technology for cyber warfare and defense strategies. Lowery emphasized the need for the United States to recognize and quickly adapt to Bitcoin’s potential as a strategic offset in cybersecurity.

He warned that failure to do so could impact the global balance of power, especially in an era where digital and interconnected systems are increasingly vulnerable to security breaches.

In his role as the U.S. National Defense Fellow and Deputy Director of Technology & Innovation at Space Launch Delta 45, Lowery brings a nuanced understanding of both national defense and digital technology. His perspective underscores the urgency for the U.S. to explore and potentially integrate these technologies into its defense strategies.

Lowery strongly recommended that the Defense Innovation Board advise the Office of the Secretary of Defense to prioritize the investigation of Bitcoin and similar technologies.

He highlighted that this proactive approach is critical to understanding and effectively utilizing these technologies for national defense and cybersecurity, ensuring that the U.S.S. maintains its position as a global superpower in an evolving digital landscape.

The post US Space Force Major urges Defense Department to adopt Bitcoin as an ‘offset strategy’ appeared first on CryptoSlate.

Do you want to build a successful Web3 marketing campaign? Or maybe you’re just wondering what fuels the success of crypto projects in the bustling realm of Web3 marketing. Well, then, you better start with X.

If you’re an entrepreneur, or a marketer, or even just a casual enthusiast in the blockchain space, you’re likely familiar with the buzz around the social media platform formerly known as Twitter. But what exactly makes it so pivotal to effective Web3 marketing? Let’s dive right into the heart of the matter.

The Core of a Vibrant Web3 Community

Clearly, a thriving community is the heart and soul of any crypto project. But it poses a logistical challenge that has baffled legions of entrepreneurs, tossing a proverbial wrench into the most solid business blueprints. So, how do you go about building such a community from scratch?

X is more of a launchpad than a social media application for crypto projects. Like a digital town square, it offers a spotlight and ample opportunities to catch the eye of a global audience. Here, they take their first steps towards forging a buzzing, active community by gaining much-needed visibility.

Whether through a trending hashtag, an on-chain token ticker, or a viral post with millions of impressions, crypto projects can leverage the power of X to achieve massive publicity. By showcasing new projects and placing them squarely on people’s radar in Web3, X becomes the most effective catalyst for organic and sustainable community building.

X’s Role in Modern Marketing Funnels

Observe closely enough, and you’ll notice that modern marketing funnels in the crypto sphere all have a critical starting point — X. But it’s not just about the initial contact; it goes several steps further. X is where crypto projects forge meaningful connections with potential community members.

It’s where the curious come to explore, where the enthusiasts find their home, and where marketers craft their stories. X doesn’t just spark community engagement; it fans the flames of community growth. Every click and interaction bolsters the crypto community, keeping them engaged, informed, and connected.

Nurturing Communities on Dedicated Channels

Dedicated communication channels are essential for nurturing and growing online communities. In the Web3 ecosystem, Discord and Telegram have emerged as go-to platforms for this purpose. They are quasi-private spaces where subject-matter-specific information is communicated, ideas are exchanged, and closer connections are forged among community members. And guess what? X is the key that unlocks these doors.

X is the gateway to these dedicated platforms, enabling marketers to guide potential community members into “closed circuit” spaces where the communal zeitgeist is nurtured. Its efficacy at bridging the gap between discovery and immersion ensures that this transition is smooth and that every member feels at home within their newly discovered community.

Fostering Collaborative Growth

In the interconnected Web3 arena, collaboration is the name of the game. Crypto projects don’t operate in isolation; they thrive by forming alliances and partnerships. In the past year, X has rapidly evolved to accommodate this collaborative spirit.

By introducing new features like the “Affiliates” tab and user profile badges, X has become a hub for collaboration and cross-promotion. These tools create an intuitive network effect that allows users to seamlessly identify pages officially associated with companies, enhancing discoverability, transparency and trust.

Furthermore, these features safeguard against social engineering attacks on members of the Web3 community. They help marketing campaigns flourish with ambassadors while keeping the community safe from misleading attempts by unscrupulous actors.

Conclusion: The Linchpin of Web3 Marketing

X is the cornerstone of an entire marketing ecosystem in the crypto space. Recognizing its crucial role in the Web3 space is not just a choice but a necessity for every crypto project aiming to make a mark in the contemporary age of digital marketing.

As the platform continually evolves to accommodate advanced marketing strategies, X provides the best playing field for creating effective marketing funnels, flourishing communities, intuitive and seamless collaborations, and more.

Looking to learn more about leveraging X to build an effective Web3 marketing campaign? Let’s connect and have a conversation.

The post Why X is the foundation of all web3 marketing appeared first on CryptoSlate.

The Lightning Network, introduced in 2016, is a second-layer scaling solution for Bitcoin to address its scalability issues. Built upon a network of payment channels, this off-chain protocol enables instant and low-cost transactions. It bypasses the need for every transaction to be recorded on the Bitcoin blockchain.

Users establish direct payment channels with one another and conduct multiple transactions without involving the main blockchain through a network of interconnected channels.

In recent years, the Lightning Network has worked to increase liquidity channels and improve user experience. Lightning Network nodes have become more reliable for peer-to-peer micropayments. Innovations like Atomic Multipath Payments further optimized routing capabilities.

Scaling Solutions And Improvements In 2023

Lightning Network has benefitted from adopting channel factories, whereby users create multiple payment channels within a single transaction, improving network capacity and reducing on-chain transaction fees.

Developers have also made substantial progress in implementing a proposed enforcement layer for LN that allows any later channel state to replace any earlier channel state. This upgrade simplifies channel management by allowing users to revise outdated channel states without broadcasting the entire history on the blockchain. This could potentially allow users to resolve disputes and minimize transaction costs efficiently.

Challenges Faced By The Lightning Network In 2023

The network must grapple with increased transaction volumes and potential congestion. Whether or not the Lightning Network can handle many transactions without compromising its speed and efficiency remains to be seen. The network must address concerns related to privacy, routing inefficiencies, channel liquidity management, and interoperability with other blockchain networks.

Although Lightning Network’s reliability has improved over the years, it should certainly remain the focus on the development team. The network’s reliability will be one of the first things new users experience. The network’s success rate is close to 50%, though Lightning Network apps abstract away the failures. The success rate in either case must be closer to 99.9%. Lightning Network expert Christian Decker said improved routing algorithms, heuristics, etc. could improve reliability.

Currently, Lightning Network sends out onions, which are lightweight, flexible messages sent between peers on the Lightning Network. They are essentially payment attempts. When they fail, the network makes another attempt. Statistically, the payment eventually gets paid. Therefore, Lightning Network could theoretically send five payments concurrently and hope at least one arrives.

In the current protocol, however, this scenario could lead to someone claiming two payments, resulting in an overpay. To do parallel attempts to speed up payments drastically, Lightning Network needs Point Time Locked Contracts (PTLCs), which can be done now that Taproot is added to the Bitcoin protocol.

Lightning Network tends to be centralized around a few big hubs, which is good from a routing perspective. The more centralized the network, the easier it is for the network to find a path. The problem with centralized networks is everyone is reliant on a few big nodes. Also, considering the ethos of Bitcoin, Lightning Network shouldn’t be centralized.

In short, liquidity procurement and allocation on Lightning Network can prove inefficient.

If you misallocate your liquidity, you might have to close the channel again and pay some on-chain fees. If Lightning is used en masse, the liquidity must be repeatedly reallocated. Eventually, the blocks might become full, and the system becomes problematic because liquidity has dried up.

Also, the blocks might become full. Then the Lightning Network has a problem because you have a system with little liquidity. Although certain methods can alleviate the problem, such as transaction batching, block space remains limited at the end of the day.

It is by no means the case that the Lightning Network can get Bitcoin to ten billion users or even one billion users. From a developer’s standpoint, that is exciting. Nonetheless, brilliant minds are working to make the best use of the block space available to the Bitcoin network, and many other cryptocurrency options could alleviate the burden on digital gold.

The post The State Of Lightning Network In 2023 appeared first on CryptoSlate.

The U.K. Parliamentary Treasury Committee issued a stern warning about the development of a retail central bank digital currency (CBDC), or ‘digital pound,’ and its potential hazards to financial stability.

Lawmakers urged the Bank of England and H.M. Treasury to thoroughly consider data privacy and financial stability issues before advancing with the implementation of this new form of currency.

The proposed retail digital pound, designed to be distinct from the wholesale CBDC used for financial institution transactions, was envisioned as an electronic equivalent of fiat money that would be accessible to both individuals and businesses for payment purposes.

While the Bank of England and H.M. Treasury have both acknowledged the future need for a digital pound, members of the parliament remain cautious.

Key Concerns

Key concerns centered on the risks a retail CBDC might pose to the U.K.’s financial stability. The Committee highlighted fears of increased bank runs, where rapid transfers from bank deposits to digital pounds during market turmoil could amplify the risk of bank failures.

Additionally, concerns were raised about the potential rise in interest rates on bank loans, possibly by 0.8 percentage points or more, due to a gradual shift from bank deposits to digital pounds.

To mitigate these risks, the Committee suggested implementing a smaller holding limit on retail digital pounds per individual than the initially proposed £10,000 to £20,000 range.

The M.P.s also urged the government to “alleviate privacy concerns” and ensure that regulators and other entities would not be able to misuse personal and financial data generated by the introduction of a CBDC.

The lawmakers also highlighted that the government should not be able to control how people spend their money.

Cost-benefit analysis

The Committee recommended the establishment of stringent regulations and legislated protections for data access. It emphasized the importance of ensuring that introducing a digital pound did not hasten the decline of physical cash.

According to the lawmakers, cash remains a vital financial resource for many in the U.K., and replacing it would exacerbate financial exclusion.

The Committee raised concerns about the significant cost of developing and introducing a CBDC. It urged the Bank of England and Treasury to maintain transparency regarding these costs through annual reporting.

The Treasury Committee said it supports the Bank of England’s ongoing efforts to design a potential retail CBDC. Still, it stressed that the project should not detract from the institution’s primary objectives of controlling inflation and maintaining financial stability.

The lawmakers added that introducing a retail digital pound should not be seen as inevitable, and a detailed cost-benefit analysis must back its development.

The post UK lawmakers wary of launching retail CBDC due to privacy, financial stability concerns appeared first on CryptoSlate.

U.S. District Judge Robert Shelby issued a stern warning to Securities and Exchange Commission (SEC) attorneys regarding possible sanctions for “misleading” court proceedings in a lawsuit against the cryptocurrency firm Debt Box, according to court filings.

The SEC secured a temporary restraining order against Debt Box via statements that were later proven to be false.

Judge Shelby, presiding over the case in the Utah District Court, expressed concerns about the SEC’s representation of Debt Box’s activities and ordered the watchdog to provide an explanation to the court in the coming days.

SEC vs. Debt Box

The SEC had accused the firm of illicitly transferring assets and investors’ funds overseas and used that statement to secure an initial freeze of Debt Box’s bank accounts as part of its case against the firm.

However, these claims were subsequently found to be exaggerated, prompting the judge to consider sanctions against the SEC attorneys for their role in presenting these misleading arguments.

As defined by the U.S. legal framework, sanctions typically involve monetary fines and are imposed on parties that knowingly submit false statements or violate court procedures. This measure comes in light of Debt Box proving that it did not move funds outside the U.S. or close its bank accounts as previously alleged by the SEC.

The SEC filed a lawsuit against Debt Box in July, claiming the company sold unregistered securities known as “node licenses” starting in 2021. These licenses were purportedly presented as a means to mine cryptocurrency, which the SEC alleges was a facade for self-minting crypto using computer code.

Judge Shelby’s recent order requests the SEC lawyers to address his findings regarding their inaccurate and context-lacking arguments about Debt Box’s supposed overseas fund transfer. The SEC has been given a two-week deadline to respond to the judge’s inquiries.

Calls for subpoena

Crypto lawyer John E. Deaton remarked on the situation on social media, saying there is a need for greater scrutiny of the SEC’s approach to cryptocurrency-related cases.

Deaton accused the SEC of consistently deceiving the court in crypto cases over the past three years, suggesting a personal vendetta against the industry. He specifically named SEC lawyers Jorge Tenreiro and Gurbir Grewal for intentionally misleading the court.

Deaton’s tweet highlighted broader issues, including judges’ criticisms of the SEC lawyers’ commitment to the law and the SEC’s disregard for Congressional inquiries. He urged Congressman Patrick McHenry and other committee members to uphold their oath and conduct rigorous oversight of SEC Chair Gary Gensler and the SEC.

Deaton called on the lawmakers to issue a Congressional subpoena against the SEC — an unprecedented move. He argued that despite the potential for litigation, it is necessary to challenge the SEC’s overreach and set a precedent against the administrative state’s excessive power.

The post Judge threatens to sanction SEC over ‘misleading’ statements in crypto case appeared first on CryptoSlate.