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Crypto news roundup: From backroom bets to FBI searches

Updated: Aug 23, 2024
Published: Jul 7, 2023
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This week in crypto looks like the classic still waters running deep  – nothing seemed to be happening, yet, everything was happening all at once. 

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From institutions sneaking into crypto conversations, the FBI searching the home of crypto bosses, and governments making backroom bets on crypto, here are the stories some people don’t want you to read. 

Welcome to the wildest ride in the crypto.

Disclaimer: Not financial nor investment advice. Any capital-related decisions you make are your full responsibility.

Bitcoin takes centre stage ₿

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In the spotlight, Bitcoin continues to dominate the charts, attracting institutions like moths to a flame. With BTC dominance at a staggering 51%, the highest it has been in two years, it's clear that institutional players are ready to ride the crypto wave. 

In the news 📰 

  • First off, Fidelity, BlackRock, and others all refiled their spot Bitcoin ETF applications, naming Coinbase as their partner to address the SEC's complaints of being "inadequate".
  • BlackRock’s CEO, Larry Fink, doubles down on his position, stating that 'crypto is digitising gold.'
  • But that’s not all. Michael Saylor's MicroStrategy has purchased $347 million worth of Bitcoin; he is betting on BTC’s dominance rising to 80%.
  • If you’d like to zoom in: we saw the strongest global monthly BTC ETP flows since October 2021.
  • There are also reports that CME Group plans to launch Ether and Bitcoin ratio futures this month.

Predictions 🔮 

We predict the Grayscale lawsuit will become a significant signal between August and September, potentially impacting Bitcoin's price. Read our latest BTC digest for more details.

Cryptonary’s take 🧠  

We consider this year the year of Bitcoin and recommend closely monitoring the ETF situation. The SEC engaging in a dialogue with these providers is a positive sign that increases the likelihood of acceptance.

There’s more to crypto than Bitcoin 🧮

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But the unfolding drama in crypto this week didn’t end with Bitcoin. Enter the game-changing phenomenon of liquid staking, where investors are chasing yields on their Ether.

In the news 📰 

  • By the numbers, deposits of Ether into protocols that offer liquid staking have surpassed $20 billion.
  • Also, the total amount of Ether staked by investors has reached nearly $44 billion. 
  • DAOs are entering the game: Aave will vote on converting 1,600 Ether (equivalent to $2.98 million) into wstETH and rETH
  • Additionally, Lido has proposed to BitDAO that they deposit 40k ETH or about $74.47 million into stETH.
  • Lido also teases its institutional product on Twitter.
  • However, some DAOs are not as pleased with Rocket Pool. Origin DAO, for instance, has decided to swap one-third of its $rETH for $wETH due to disappointing returns.

Predictions 🔮 

LSD-Fi will be the next significant wave in the crypto industry. You can read why we are sticking our neck out for the sector here.

Cryptonary’s take 🧠 

Liquid staking is one of the most promising sectors in crypto right now, and there is fierce competition among providers to onboard DAOs and prominent players. Frax stands out as a promising winner with its higher ETH yield, and V2 upgrade in the pipeline.

Institutions embrace crypto, but do governments feel the same way? 🏛️

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As the crypto scene sizzles, governments around the world are caught in a love-hate relationship with this disruptive technology.

In the news 📰  

The tensions in the United States continue to rise:

  • Binance faces a crisis as senior executives resign over CEO Changpeng Zhao's response to the Justice Department investigation.
  • According to a New York Times report, the FBI searched the home of former Kraken CEO Jesse Powell.
  • DeFi protocol BarnBridge is under investigation by the SEC.

On the other hand, other countries support crypto and view it as an opportunity, with three key players standing out.

  • The U.K. passed crypto regulations accepting crypto assets and stablecoins into the financial system. 
  • UK Prime Minister divulges London’s plan to become a crypto hub.
  • Hong Kong throws its hat into the ring, aspiring to become an international crypto hub.
  • Surprisingly, the United Arab Emirates (UAE) is gradually solidifying its status as a go-to Bitcoin mining destination in the Middle East.

Predictions 🔮 

We predict that Binance will be expelled from the United States, but it will be able to continue its operations internationally. Learn why!

Cryptonary’s take 🧠 

While the United States maintains a seemingly hostile stance towards crypto, the UK, Hong Kong, and the UAE, among others, are attracting companies and high-net-worth individuals. 

Crypto is the future of money. These countries are placing bets that might shift the global balance on finance at the expense of Washington.

And until we bring you another crypto news round-up next Friday, stay winning!

Cryptonary, out!

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