News Headlines (16th FEB 2024)

Bitcoin (BTC) has jumped over 35% to over $52,000 since Jan. 23, consistent with its reputation of chalking double-digit gains in a matter of weeks. The latest move, however, stands out because it has materialized alongside a resurgent U.S. dollar index (DXY) and Treasury yields.

The DXY, which gauges the greenback’s exchange rate against major fiat currencies, has gained 3% this year, with the index gaining around 1% since Jan. 23.

London-headquartered asset manager Jupiter Asset Management canceled its investment in an  XRP +4.17% exchange-traded product due to compliance issues, the Financial Times reported Friday.

Jupiter’s Ireland-based Gold & Silver fund purchased $2.57 million in 21Shares’ Ripple XRP ETP in the first half of 2023, according to the news report. The investment was then detected by the company’s routine “oversight process,” after which the compliance team ordered the fund to withdraw its holdings. This resulted in a loss of $834, which Jupiter reportedly stated was fully recovered.

America’s biggest cryptocurrency exchange Coinbase reported a successful final quarter of 2023.

The San Francisco-based company’s Q4 2023 results showed that the company reported a profit of $273.4 million, compared with a loss of $557 million the same quarter one year ago. In Q3 2023, the exchange had reported a loss of $2 million in profit.

Coinbase also makes money from interest earned on its USD Coin (USDC) stablecoin. This product helped the exchange swing to profit because it jumped nearly 18% to $171.6 million.

It is no longer viable for nation-states to destroy the Bitcoin and Ethereum network via 51% attacks due to the astronomical costs required to do so, according to the latest research from crypto intelligence firm Coin Metrics.

A 51% attacks refer to a malicious actor owning more than 51% of the mining hash rate in a proof-of-work system (such as Bitcoin) or 51% of staked crypto in a proof-of-stake network (like Ethereum). Attackers could theoretically use this power to alter the blockchain like preventing new transactions from gaining confirmations, or reverse transactions to double spend tokens for example.

According to CryptoPotato, the latest Q4 report from Messari has revealed significant growth in Cardano’s total value locked (TVL) and ecosystem developments throughout the fourth quarter of 2023. The State of Cardano Q4 2023 report indicates that Cardano’s TVL has increased by 166% quarter-over-quarter (QoQ) and 693% year-over-year (YoY), elevating Cardano’s ranking from 34th to 14th on DefiLlama. The DeFi ecosystem in Cardano has expanded steadily, with 33 protocols amassing over $330M in TVL.

Mexican billionaire Ricardo Salinas, a well-known bitcoin advocate and chairman of Grupo Salinas, commented on the recent cryptocurrency surge on social media platform X on Monday. He offered insights on investing in bitcoin and listed four reasons why he believes investors should consider buying BTC.

“Imagine you just received your first paycheck after graduating from college. You have several options on how to spend or invest that money,” he wrote on X (translated by Google). The first option is to “Spend it now on any stupid thing,” he described. The second is to “Save it in a traditional bank like Banco Azteca,” and the third is to “Learn to invest” in “something like bitcoin,” which he said is “easy to buy, store, and with no minimum required to start investing.”

Jupiter Asset Management (JUN), the London-listed firm with assets under management of over $65.8 billion, had to scrap an investment in one of the crypto exchange-traded products (ETP) due to a compliance issue, the FT reported on Friday.

Jupiter’s Gold & Silver fund had invested $2.58 million in 21Shares’ Ripple XRP ETP during the first half of 2023. However, the investment was flagged by the company’s “regular oversight process” and was later canceled at a loss of $834, according to the report.

The Financial Conduct Authority (FCA) — an independent financial regulatory body in the United Kingdom — has published a report detailing its actions against financial promotions, including its findings and actions against crypto-related advertisements.

On Feb. 14, the FCA reported that it found “significant levels of non-compliance” on crypto promotion rules that came into effect on Oct. 8, 2023. According to the regulator, i reviewed both registered and unregistered crypto firms and identified common issues.

This includes the use of generic risk summaries without any amendments for product-specific risks, such as stablecoins or asset-backed coins, and using the regulated status in a promotional manner. Furthermore, the FCA also said that firms are making claims about the safety, security and ease of use of crypto services without supporting evidence or highlighting risks.

According to CoinDesk, Tether’s (USDT) dominant position as the largest stablecoin is vulnerable due to its dependence on the American market and pending regulations, JPMorgan said in a research report. Despite Tether not being based in the U.S., regulators can exert some control on the stablecoin issuer’s offshore usage through the Office of Foreign Assets Control (OFAC). The stablecoin’s association with Tornado Cash, a crypto-mixer blacklisted by OFAC for facilitating money laundering, is one such example.

John Deaton, a pro-crypto U.S. lawyer and Republican, is reportedly contemplating a run against Massachusetts Senator Elizabeth Warren in this year’s Senate race. Jim Conroy, a Republican political strategist, suggests that the Swansea-based attorney is likely to decide in the coming days.

The potential of Deaton squaring off against Warren, a staunch critic of the crypto industry, could add a new dynamic to the Massachusetts Senate race. Warren announced her reelection bid in March 2023. As per a Boston Globe report, the race for the seat was considered “sleepy.”