Pa Simon Peters, Crypto Asset Analyst at trading and investment platform e Toro.
Bitcoin continued its slide last week, falling 11% to its lowest price since late February amid fears it will die out. exchange cryptoassets Mt.Gox pays your creditors.
Bitcoin is currently trading at $57,050. We await to see if the sell-off will continue or if investors will see this situation as an opportunity to “buy the dip” given recent US economic data that points to a greater likelihood of interest rate cuts and financial easing in the near future. More information below.
WHAT TO EXPECT FROM THE WEEK
Following last week’s non-farm payrolls and unemployment data, which fueled expectations of a rate cut, this week’s focus will be on the latest US CPI and CPI inflation data, due out on Thursday and Friday, respectively.
According to CME’s FedWatch tool, markets currently expect two Fed rate cuts in 2024, the first of which will take place in September.
Inflation numbers that are in line with or below expectations could further increase the chances of a rate cut and in turn bode well for crypto asset prices as well as stocks.
EXCELLENT NEWS
Bitcoin falls due to Mt.Gox payment and German government sale
On Friday, arbitrage manager Mt.Gox said it had begun paying creditors for returned bitcoins and cash bitcoins. About $9 billion in assets are expected to be returned to creditors by the end of the year.
In addition to Mt.Gox, recent Bitcoin transactions by the German Federal Criminal Police Bundeskriminalamt (BKA) are also shaking up the crypto-asset market. In January, the BKA was reported to have seized nearly 50,000 bitcoins from the operators of Movie2k.to, a movie piracy website that was shut down in 2013.
Arkham Intelligence on-chain data shows that since mid-June, more than 25,000 bitcoins have been moved to other BKA addresses, as well as exchanges crypto assets such as Coinbase, Kraken and Bitstamp. This suggests that the seized bitcoins may have already been sold, if not sold soon.
Bitcoin spot ETFs see biggest inflows since early June
U.S.-based spot bitcoin ETFs posted net inflows of more than $140 million on Friday, the biggest one-day net inflow since early June, suggesting institutional investors are “buying the dip.”
Bitcoin fell to $53,500 on Friday, its lowest level since late February.
Most of the proceeds came from Fidelity’s FBTC – just over $117 million. BITB Bitwise, HODL VanEck, and ARK/21Shares ARKB recorded inflows of $30.2 million, $12.8 million, and $11.3 million, respectively. GBTC Grayscale recorded an outflow of $28.6 million.
Interestingly, BlackRock’s IBIT recorded no inflows or outflows on Friday. However, it remains the largest spot bitcoin ETF in the US with more than $17 billion in AUM.
Chainlink Announces Collaboration with Fidelity International and Sygnum to Bring NAV Data to Supply Chain
Decentralized oracle blockchain network Chainlink last week announced a collaboration with Fidelity International and digital asset bank Sygnum to bring net asset value (NAV) data to the chain.
Net asset value is the value of an investment fund’s assets minus its liabilities. By adding NAV data to the chain, it can be accessed in real-time, unlike current methods that typically update NAV after each trading day.
The collaboration provides transparency and availability of key asset data for Sygnum’s on-chain holdings at the $6.9 billion Fidelity International Institutional Liquidity Fund, where it tokenized $50 million of Matter Labs’ treasury reserves on the zkSync blockchain.
Metaplanet buys another 400 million yen ($2.3 million) worth of bitcoins.
Publicly traded Japanese company Metaplanet bought another 42,266 bitcoins, roughly 400 million yen ($2.3 million).
With this latest acquisition, his total assets are 203,734 Bitcoins ($11,640,000).
This move can be considered optimistic as more and more public companies follow a long-term strategy of buying and holding bitcoins as a reserve asset.