Crypto News Headlines (12-Jul-2022)

Bitcoin dropped through a major support level Tuesday, falling below $19,700 amid a sell-off in broader markets that saw equity indexes decline and the euro approach parity with the U.S. dollar.

Price-charts show bitcoin saw rejection at last week’s $21,800 level. It experienced some support at $20,500 over the weekend and dropped to the $19,700 mark in early Asian hours today. A brief bump up to almost $20,000 was followed a return to the lower level in the European morning.

Bitcoin could drop to as low as $18,700, a level it reached earlier this month, technical analysis shows. A recovery from current levels, on the other hand, could see bitcoin climbing as high as the $21,300 zone in coming weeks.

The declines came as Singapore state-owned Temasek Holdings, which manages more than $287 billion of assets, cautioned of more downturns across financial markets, citing the likelihood of a “recession in developed markets.”

Temasek said it forecast a “mild recession” in the U.S. next year, adding that China faces “challenges” and the global economy “is in a fragile state.” “Rising inflation, surging commodity prices, and severe supply chain bottlenecks have uncovered further fault lines in the global marketplace,” it said in a statement.

The Financial Stability Board (FSB), an international body that monitors and makes recommendations about the global financial system, released a statement Monday on the “international regulation and supervision of crypto asset activities.”

The G20 watchdog stated that it is committed to promoting “international consistency of regulatory and supervisory approaches amongst national authorities and international standard-setters as they work towards developing risk-based, technology-neutral policy for the wide spectrum of crypto-assets, grounded in the principle of ‘same, activity, same risk, same regulation.’”

Noting that crypto assets, including stablecoins, are fast evolving, the FSB explained that the recent turmoil in crypto markets “may have spill-over effects on important parts of traditional finance such as short-term funding markets.” The organization detailed:

An effective regulatory framework must ensure that crypto-asset activities posing risks similar to traditional financial activities are subject to the same regulatory outcomes, while taking account of novel features of crypto-assets and harnessing potential benefits of the technology behind them

Bitcoin (BTC) tumbled overnight, with the leading cryptocurrency dropping to levels as low as $19,621, according to data from CoinMarketCap.

Last week was a bullish one for cryptocurrencies, as most ended up in the green territory. BTC had also managed to stay above its $20,000 support after weeks of waffling above and below this price.

Bitcoin has this morning, however, shed 3.72% over the past 24 hours and is trading closely near its seven-day low of $19,341.23, indicates CoinMarketCap.

The market capitalization of the largest cryptocurrency, Bitcoin, has crashed from a whopping $1.27 trillion in November 2021 to under $377 billion today.

As for Ethereum (ETH), the second-largest cryptocurrency with a market capitalization of $129 billion, it too has slipped to around $1,068, a 6.7% decline over the past 24 hours.

This marks a drop of 78.14% from its all-time high of $4,891.70.

Digital asset investment products saw inflows of $15M last week, according to a weekly report published by CoinShares.

Assets under management recovered from their year and a half lows to $36.2B, Coinshares said.

Bitcoin saw minor outflows of $1.7M, while inflows into short-Bitcoin products totalled $6.3M last week.

Ethereum saw inflows for a third consecutive week, with a total of $7.6M. CoinShares said the inflows suggest “a modest turn-around in sentiment”, having endured 11 consecutive weeks of outflows.

CoinShares said the altcoin market has remained “remarkably inactive” this month so far, with minor outflows of $0.3M.

In a fresh episode of the longstanding battle between the Central Bank of Russia (CBR) and the country’s Ministry of Finance, representatives of the former have criticized the latter’s idea of supporting the stablecoins, which some private investors have sought to launch in the country. 

According to local media, an unnamed representative of the central bank dismissed talk of Russia-based stablecoins, started last week by the Ministry of Finance’s director of financial policy department Ivan Chebeskov.

Back then, Chebeskov voiced his ministry’s support for creating stablecoins tied to assets like “the ruble, gold, oil or grain”. He called it “the right path for developing new technology” and urged private companies to try this kind of financial tool if they find it necessary.

Popular Brazilian mobile payment app PicPay announced Monday that it plans to start supporting cryptocurrency payments, as well as launch its own cryptocurrency exchange and a stablecoin pegged to the Brazilian real.

In a company blog post, PicPay said it plans to offer an exchange through the app so that people can buy and store cryptocurrencies. It will initially support bitcoin, ether and Paxos’s Pax Dollar (USDP) stablecoin. 

According to Brazilian news website NeoFeed, which first reported the story, PicPay could start offering this exchange component within its app as early as next month. Furthermore, PicPay hopes to support 100 different cryptocurrencies through the app by the end of the year, the report said. 

The firm also plans to launch its own stablecoin pegged to the Brazilian real, which will be called the Brazilian Real Coin (BRC).

Bitcoin’s fortunes are more closely tied to the U.S. real or inflation-adjusted bond yield than ever, with the two increasingly moving in opposite directions.

At press time, the 90-day correlation coefficient between bitcoin and the yield on the 10-year U.S. inflation-indexed security stood just shy of the record -0.95 reached at the end of June.

The record inverse or negative correlation means bitcoin is moving in the opposite direction of the inflation-adjusted yield. A correlation coefficient is a number between +1 and -1, representing the linear interdependence of two variables or sets of data. If the correlation coefficient is -1, it means relationship between the two variables is negative 100% of the time. If the number is at +1, the two securities move in the same direction.

A positive real yield means the bond payout is exceeding the market-based measures of inflation expectations. Therefore, the higher the real yield, the lesser the incentive to chase returns from other assets like cryptocurrencies, stocks and gold.

A luxury British Jeweler, Graff, has sued its insurer, The Travelers Companies, for refusing to cover a ransom bitcoin payment, Bloomberg reported last week.

The jeweler paid a bitcoin ransom of $7.5 million to the Russian hacking gang Conti after the group threatened to leak data of the company’s big clients, including Middle East royalty. Graff negotiated the ransom payment amount with the hackers and managed to reduce it from $15 million.

Conti attacked Graff in September last year and leaked data about the royal families from Saudi Arabia, the United Arab Emirates (UAE), and Qatar. The hackers apologized to the families but said that they may need to leak more of Graff’s data.

“Our goal is to publish as much of Graff’s information as possible regarding the financial declarations made by the US-UK-EU neo-liberal plutocracy, which engages in obnoxiously expensive purchases when their nations are crumbling under economic duress,” the hacking group reportedly said.

Nearly all industrial-level Bitcoin miners in Texas have fulfilled their promise to suspend operations while the state waits out a heat wave that’s expected to push its electricity grid to its limits.

The Electric Reliability Council of Texas (ERCOT), which is responsible for managing the Texas grid, made a request yesterday that residents of the state make an attempt to conserve as much energy as they can to avoid the type of rolling blackouts that have plagued the state in summers and winters past. For example, power outages in 2021 during a harsh winter storm contributed to several hundred deaths state-wide.

Texas set an all-time peak record for energy use on Friday, consuming 78,206 megawatts of electricity, as reported by Bloomberg. The previous, unofficial record was set on July 5, clocking in at 77,460 megawatts.

Decentralized finance (DeFi) giant Aave has unveiled plans to launch an overcollateralized stablecoin The European Central Bank (ECB) has released a report analyzing the growth of the cryptocurrency market over the past decade and the risks it poses to the existing financial system.

The bear market won’t scuttle Bitcoin’s (BTC) adoption plans in the United Kingdom. From Oct. 21–22 this year, internationally recognized Bitcoin experts, authors and content creators will take part in the United Kingdom’s largest Bitcoin conference to date.

Organized by the Bitcoin Collective, a newly formed Bitcoin company, and in partnership with Bitcoin and crypto exchange OKX, the event takes place at the Assembly Rooms on Edinburgh’s George Street.

Jordan Walker, CEO of the Bitcoin Collective, told Cointelegraph, “the conference is solely Bitcoin related, as this is our focus as we aim to inform and educate the collective.” In the press release, Walker added: 

“However, it’s not about buying or investing in Bitcoin, that’s a whole different discussion. Our focus is on education, so make sure to bring a notebook and pen!”