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Bitcoin Needs to Continue Standing above $19,200 to Dilute Downward Pressure, Analyst Says

by Blockchain NewsOctober 14, 2022

Bitcoin (BTC) has gained momentum to surge past $19K after dropping to lows of $18.3K after the U.S. inflation data was released on October 13.

Market analyst Ali Martinez believes the leading cryptocurrency should stay above $19,200 to reduce selling pressure because this is a significant level. He pointed out:

“Roughly 2.5 million addresses bought nearly 1.5 million BTC at $19,200. The longer Bitcoin continues trading below $19,000, the higher the pressure these investors will feel to exit their long BTC positions to cut losses short. Consequently accelerating the downward pressure.”

The United States Bureau of Labor Statistics (BLS) published the latest inflation figures with the Consumer Price Index (CPI) for all urban consumers growing by 0.4% in September, Blockchain.News reported.

As a result, a broad market reaction emerged, sending shivers down the crypto market, with Bitcoin dropping to lows of $18,319.

Crypto insight provider Santiment stated:

“Thursday has been an expectedly volatile day after inflation data was released. Bitcoin dropped to $18.3k, its lowest price level since September 21st. However, as traders were in the midst of stopping the bleeding, BTC & the SP500 rapidly recovered.”

Source: Santiment

Even though Bitcoin’s social dominance has dropped based on the back-and-forth experienced in the market, the leading cryptocurrency was up by 3.38% in the last 24 hours to hit $19,623 during intraday trading, according to CoinMarketCap.

Since some traders have been eyeing short-term pumps, this has also caused BTC’s social dominance to decrease. Santiment explained:

“Traders are chasing short-term pumps right now to salvage losses. Weak hands dropped out of crypto in 2022, & long-term traders are waiting for Bitcoin to begin receiving the spotlight again. When BTC social dominance is high, prices typically rise.”

Source: Santiment

The U.S. Federal System has resorted to interest rate hikes to tame runaway inflation, which has been detrimental to the crypto market. With the latest CPI data being higher than expected, it remains to be seen what move the Fed will take next month.

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Tagged : #BTC / Bitcoin / Crypto / Cryptocurrencies / Inflation / Interest Rate / Market Analysis / PRICE ACTION

One-third of Staff Laid Off in Digital Investment Group NYDIG: WSJ

by Blockchain NewsOctober 14, 2022

New York-based digital investment group NYDIG laid off nearly a third of its workforce, about 110 people in total, according to the Wall Street Journal, citing sources with the matter on Thursday.

The layoffs have been conducted for about “a few weeks,” according to three people familiar with the matter, with company executives issuing formal notices of layoffs on September 22.

Bitcoin trading and banking firm NYDIG said the layoffs were part of a quest to cut spending and narrow its focus to more promising businesses.

NYDIG is a full-service, vertically integrated Bitcoin-only financial services company.

On October 3, NYDIG announced that CEO Robert Gutman and President Zhao Yan had stepped down, and NYDIG executives Tejas Shah and Nate Conrad took over as CEO and President, respectively.

Retiring Robert Gutman and Zhao Yan will return to Stone Ridge Holdings Group, the parent company of NYDIG.

Stone Ridge was founded in 2012 by current CEO Ross Stevens. In 2017, the founder launched the Bitcoin-driven New York Digital Investment Group (NYDIG), where he serves as executive chairman.

“The firm’s balance sheet is the strongest it’s ever been, and now we’re investing aggressively into a capital-starved market,” said Stevens.

On September 13, Stone Ridge Asset Management, a global asset management firm based in New York, announced plans to liquidate and dissolve its Stone Ridge Bitcoin Strategy Fund with the Securities and Exchange Commission (SEC).

As of October 3, New York-based digital investment group NYDIG said it had raised $720 million for its institutional bitcoin fund, according to filings with the U.S. Securities and Exchange Commission.

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Tagged : #BTC / Enterprise / LAYOFF / Nydig / Stone Ridge

BTC Mining Hardware Startup Fabric Systems Raises $13M

by Blockchain NewsOctober 14, 2022

Fabric Systems, a bitcoin mining hardware startup, has raised $13 million in a seed round fund.

Participants in the funding round were bitcoin miner TeraWulf, Skype co-founder Jaan Tallinn’s fund Metaplanet, Blockchain.com and 8090 Partners.

The company has said that the funds will be used to fund the development of two core launch products, including a liquid immersion-cooled ASIC machine.

Fabric Systems claims these products will achieve an energy efficiency of 20 watts per terahash (watts/TH).

According to the company, their launch product, an immersion-cooling ASIC, is a type of machine which is submerged in liquid of a certain type instead of being cooled via air with traditional fans.

Although immersion-cooling ASIC machine types of cooling technology have been around for a long time, they have been used more recently in the crypto industry by companies like Argo and Riot at a large scale in Texas.

These cooling machines guarantee to “outperform every existing bitcoin miner in today’s existing marketplace” in terms of energy efficiency. They are also engineered to achieve an energy efficiency of 20 watts/TH.

According to bitcoin mining firm Luxor, these machines are divided into three efficiency tiers: “Old-generation” ASICs are classified as over 68 J/TH, “mid-generation” as 38-to-68 J/TH and “latest generation” as under 38 J/TH. The measure of joules is interchangeable with watts.

Fabric Systems also said their machine will enter production in the latter half of 2023, while the shipments will start in the third quarter.

Co-founder and CEO Michael Gao said the software and hardware products are “a culmination of years of R&D since 2019.”

Previously, Gao founded Luminous Computing, a photonic AI supercomputing startup backed by Bill Gates, which got over $130 million in funding.

At the early age of 15, Gao discovered bitcoin in 2011 and founded a bitcoin mining operation from his dorm room.

The other co-founder of Fabrics Systems, Sagar Reddy, is the chief technology officer. He has 22 years of technical leadership in full-custom chip design and systems architecture.

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Tagged : #BTC / Bitcoin / Blockchain / FABRICSSYSTEMS / Finance / Mining

Tether Eliminates All Commercial Paper Holdings to Zero

by Blockchain NewsOctober 14, 2022

Tether Limited Inc., the company behind USDT stablecoin, announced on Thursday that it has reduced its commercial paper holdings to zero, replacing them with U.S. Treasury bills.

Commercial paper is a short-term, unsecured debt issued by companies, whereby the value of the paper depends on the issuing company. Commercial papers are normally considered less reliable or less stable than other debt instruments like U.S. Treasury bonds.

On Thursday, Tether disclosed that it has now eliminated all commercial paper from its reserves. The firm said it has cut down more than $30 billion of commercial paper without any losses and increased its direct exposure to U.S. Treasuries by more than $10 billion in the last quarter.

The USDT stablecoin issuer said the move is part of the company’s “ongoing efforts to increase transparency” and back its tokens with “the most secure reserves in the market” — in hopes to ensure investor protection. “Reducing commercial papers to zero demonstrates Tether’s commitment to backing its tokens with the most secure reserves in the market,” Tether tweeted on Thursday.

The tweet noted that zeroing out the balance of its commercial paper holdings was not only made to be a step toward greater transparency and trust for the company but also for the entire stablecoin industry.

Currently, there are about 68.4 billion tether tokens in circulation, meaning that USDT has a market capitalization of $68.4 billion.

Earlier this month, as reported by Blockchain.News, Tether reported that it reduced its commercial paper holdings to less than $50 million. As of September 30, the firm announced that it increased its U.S. Treasury holdings to 58.1% of its total portfolio from 43.5% of its total portfolio as of June 30.

In the past, the company said that it would cut down its commercial paper holdings to zero by the end of the year due to rising concerns over the stability of the Tether ecosystem and its stablecoin, USDT.

Last year, New York regulators fined a multimillion-dollar against firm over concerns associated with the composition of its reserves. Since then, Tether has been committed to improving the quality of its reserves, in part by eliminating the amount of commercial paper it holds.

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Tagged : Commercial Paper / Stablecoin / Tether / US TREASURY HOLDINGS / USDT

CoinShares Launches Twitter Bot for NFT Investors

by Blockchain NewsOctober 14, 2022

Crypto asset manager CoinShares has launched a helpful Twitter bot for NFT investors.

On Thursday, CoinShares announced the launch of a Twitter bot called the ‘CoinSharesNFTAI.’ According to the functionality of the Twitter bot, CoinSharesNFTAI would help NFT investors predict a ‘fair price’ for any NFT listed on Opensea.

The Twitter bot would assist NFT investors on Twitter to filter the uncertainties in the NFT space and know how much an NFT might be worth with just a single tweet. To activate the bot, users would have to make a tweet with an Opensea link of the NFT they would like to check and then mention the bot (@CoinSharesNFTAI) in the tweet.

In the announcement, CoinShares stated that Pricing NFTs could be a difficult task, especially as their value is volatile and millions of them are available on the market.

“Building on our crypto and quantitative expertise, we came up with an experimental project to price NFTs, whether you own them already or not. This model relies on tested mathematical concepts to predict a fair price for any NFT currently listed on @opensea,” said CoinShares in the announcement.

The bot predictions are based on identified factors such as hype, rarity, utilities, content, and products, as well as transaction volume and history of an NFT project.

CEO Jean-Marie Mognetti said in a release, noting: NFTs are one of the newly discovered digital assets in the crypto industry today, and it’s essential that everyone should feel comfortable while buying and selling them. He added, “To this end, we made our proprietary NFT pricing algorithm available to the public through our CoinSharesNFTAI Twitter bot.”

CoinShares is a Europe-based digital asset investment and trading group pioneered in innovative financial products and services for the crypto industry.

In the firm’s recent news, CoinShares announced its intention to launch an algorithmic trading platform, HAL, for retail traders. The platform will provide retail traders access to a range of algorithmic trading strategies for $20 per month.

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Tagged : Bitcoin / Blockchain / Bot / Coinshares / Enterprise / NFT / Twitter

Kevin O’Leary Says ‘No Choice with Crypto’ After as US Inflation Burns Hot

by Blockchain NewsOctober 14, 2022

After a release of key U.S. inflation data published on Thursday, the market saw Bitcoin dropping its price below $19,000 per coin. However, that did not move well-known investor and “Shark Tank” star Kevin O’Leary as he appeared shrugging it off and focusing on the long game.

In his LinkedIn post on Thursday, O’Leary said the crypto opportunity is more like a take-it-or-leave-it offer. “You can’t stop it, you either join the wave or get lost!” he stated on popular social media. He said people have no choice but to get along with cryptocurrency irrespective of the criticism.

“There are people that criticize me on this, but this is one of the reasons I feel so strongly about the future of crypto and NFTs. When you have new technology emerging that can drastically boost our level of productivity and improve how we process transactions globally, you have no choice but to get with it,” O’Leary further elaborated on his conviction about the new asset class.

His comments came after crypto prices plunged to new October lows on Thursday after fresh US data showing global inflation climbed higher – a macro event that further eroded slowing demand for risky assets. Bitcoin dropped as much as 5.1% on Thursday to $18,201, its lowest in about three weeks, while Ether declined as much as 8.2%.

Bitcoin dropped below $19,000 on Thursday as traders anxiously awaited the latest figures of the consumer price index (CPI). The cryptocurrency dropped more sharply after the report came in, indicating a slightly larger-than-expected rise in inflation, despite the aggressive rate hikes the Federal Reserve has introduced to fight rising prices.

In recent years, O’Leary has become a big crypto advocate after buying his first Bitcoin in 2017 – since then, he’s fully embraced the world of blockchain. Despite the ongoing market downturn, the “Shark Tank” star is not ready to call a bottom in the digital asset industry a kind of a major negative occurrence.

In June, O’Leary shared his market outlook and investment strategy during this bear market. He was not sweating the bear market as he believed the winter will end up lifting up the entire sector in the long run.

O’Leary who is a strategic investor at crypto-trading platform WonderFi Technologies Inc., explained that he has been doubling down on digital assets, including Bitcoin and ether, as well as various Web3 projects even though he knows that not every investment will be a winning bet.

O’Leary approaches cryptocurrency like he would any other investment. This means crypto is part of a balanced portfolio with a mix of sectors and specific assets. His portfolio reflects his bullishness for blockchain technologies. He currently holds 32 positions in the crypto space, including Solana and blockchain firm Polygon.

The crypto bear market has slammed valuations of his digital assets, currently, the new asset class makes up 16% of his holdings, down from 20% in March.

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Tagged : Cpi / Cryptocurrency / Industry Expert / Inflation / Kevin O'Leary