SVB’s Failure Impacting Markets: Coinbase Research Reveals Risks Ahead

• The failure of Silicon Valley Bank (SVB) and Silvergate had caused a potential system-wide bank run among mid-tier banks.
• To prevent the contagion, the U.S. government introduced the Bank Term Financing Program (BTFP), offering a 1-year OIS+10bps fixed-rate loan to banks that will be secured by bonds purchased before March 12.
• Coinbase research suggests that there are still several liquidity risks posed by BTFP and other factors, such as reluctance to lend, depositors shifting their money from minor to larger banks and an increase in money market funds which could decrease banks‘ reserves.

The Failure of Silicon Valley Bank

The failure of Silicon Valley Bank (SVB) and Silvergate has caused a potential system-wide bank run among mid-tier banks. In order to avert this contagion, the U.S. government has taken swift steps by introducing the Bank Term Financing Program (BTFP). This program is offering a 1-year OIS+10bps fixed-rate loan to banks that will be secured by bonds purchased before March 12.

Coinbase Research on Liquidity Risks

Coinbase research suggests that there are still several liquidity risks posed by BTFP as well as other factors such as reluctance to lend, depositors shifting their money from minor to larger banks and an increase in money market funds which could decrease banks‘ reserves. Furthermore, JP Morgan estimates that the maximum consumption might be close to $2 trillion outside the five biggest banks due to this program alone.

Impact on Credit Suisse and First Republic Bank

The study also highlights how concerns about Credit Suisse and First Republic Bank suggest that the Fed may be changing its mind about whether or not these events at SVB are systemic in nature. This further implies that even if the predicted terminal rate is lower today – potentially in the 5.25-5.50% range – it is likely for them to take up third route since core inflation still seems stable and economic data elsewhere indicates strength too.

Medium – Long Term Forecast for Cryptocurrency

The positive medium – long term forecast for cryptocurrency is also highlighted in Coinbase’s paper . While inadequate risk management procedures contributed to volatility seen in U.S financial industry, Coinbase believes cryptocurrencies will emerge unscathed from this situation due its decentralised nature compared with traditional finance systems..

Conclusion

To conclude, although there are potential threats posed by liquidity risks such as those mentioned above, it appears like US financial markets have been able avert disaster so far due swift actions taken including introduction of BTFP program backed by US Treasury Bonds etc., In addition while traditional finance systems were hit hard after SVB’s failure cryptocurrencies looks set benefit from this situation due its decentralised nature & lack of central control over it..

BNB Soars 13% as Binance Adapts to Cryptocurrency Landscape

• Binance Coin (BNB) has recently experienced a significant surge in value, trading at $309.83 with a 24-hour trading volume of $1,448,739,161.
• In response to recent changes in the stablecoin and banking industry, Binance is converting its remaining $1 billion Industry Recovery Initiative funds from BUSD to native cryptocurrencies such as BTC, BNB, and ETH.
• Binance CEO Zhao has hinted at the possibility of buying a bank in order to remain integrated with traditional financial systems.

BNB Surges 13% As Cryptos Rally

The value of Binance Coin (BNB) has recently surged by more than 13%, currently trading at $309.83 with a 24-hour trading volume of $1,448,739,161. The market capitalization of BNB is currently valued at $49,282,559,059 based on its circulating supply of 160 million BNB. This highlights the growing demand for this cryptocurrency among investors and traders in the crypto market.

Binance Adapts To Evolving Crypto Landscape

In light of recent developments in the stablecoin and banking industries, Binance has decided to convert its remaining $1 billion Industry Recovery Initiative funds from BUSD to native cryptocurrencies such as BTC, BNB and ETH. This conversion will involve some on-chain fund movements to ensure complete transparency and allow the exchange to adapt while staying committed to providing full transparency to its users.

Binance Considering Bank Acquisition

Binance CEO Zhao has hinted at the possibility of purchasing banks due to recent issues faced by crypto-friendly banks like Silvergate and SVB. He shared an old news story that suggested that they were considering buying one back in 2022 but mentioned that he was still determining if it was suitable timing for them move forward with such an acquisition. This could be an indication of their efforts to expand their services beyond the crypto industry while integrating more into traditional financial systems.

Crypto Market Remains Volatile

Despite these positive developments for BNB holders there remains volatility in the crypto markets as a whole which means further price swings are likely going forward . Therefore it is important for investors and traders alike keep up with current events and make sure they do their own research before making any decisions about investing or trading cryptocurrencies .

Conclusion

Overall it seems like there have been some positive developments for those who have invested or traded in BNB recently , however as always it is important for investors to stay informed about current events and do their own research before taking any action . With banks facing challenges due to regulatory concerns , it will be interesting to see how exchanges like Binace respond going forward .

Rent Luxury Electric Cars with NFTs – CAR BAR Launches in Dubai

• CAR BAR, an electric car rental platform powered by non-fungible tokens (NFTs), has been launched in Dubai.
• The platform will provide users with access to luxury electric cars at 30-40% cheaper daily rates than traditional car rental services.
• CAR BAR NFT holders will be able to rent Tesla Model 3 Standard, Tesla Model 3 Performance, or Tesla Model Y and can also sell their rights to third parties in Polygon-based marketplaces.

CAR BAR Launches in Dubai

CAR BAR, an electric car rental platform using non-fungible tokens (NFTs), has been launched in Dubai. A press release from Yard Hub, a Web3 venture studio that developed the platform, revealed that it would integrate NFTs and allow people in Dubai to rent luxury electric cars at cut prices. Rates for daily rentals will be between 30 and 40% cheaper than traditional car rental services. Moreover, the solution will empower fleet owners to tokenize and track their cars in real-time.

Benefits of Using CAR BAR

The launch of CAR BAR gives users premium access to rental services not available before. Yaroslav Shakula, the CEO of Yard Hub noted that their platform showcases a novel use case of NFTs which could contribute to the mass adoption of web3 technologies. This pilot program will release its first NFT collection on Polygon using USDT as payment method; however users must be over 23 years old and hold a UAE or international driving license to purchase them.

Renting Luxury Electric Cars With CAR BAR NFTs

From Mar 6th until May 31st , holders of CAR BAR NFTs can rent any one of three Tesla varieties from one of their rental partners located in Dubai free of charge . Three types of NFTs are available for purchase; depending on which type is bought , user can choose from either a Tesla Model 3 Standard ,Tesla Model 3 Performance or a Tesla Model Y vehicle . Before booking these vehicles , they must reserve them three days prior while submitting relevant documents such as their driving licenses . All vehicles rented through CAR BAR come fully insured .

Preserving The Environment With Car Sharing Solutions

There have been increasing calls for preserving the environment due to unsustainable levels of car ownership especially within big cities like Dubai . As such ,car sharing solutions have become more popular providing convenient travel options while conserving natural resources at the same time .

Conclusion

CAR BAR’s launch presents yet another example of how blockchain technology can be used innovatively address real world issues with sustainable solutions . By tokenizing car rentals , individuals now have access to premium services at reduced costs while preserving natural resources simultaneously .

SEC Wells Notice Puts Stablecoins USDC and BUSD in Trouble

• The US Securities and Exchange Commission (SEC) issued a Wells notice to the BUSD issuer Paxos earlier this month.
• The second and third-largest stablecoins have witnessed diverse movements since the news broke by Binance CEO, Changpeng Zhao (CZ).
• According to data provided by Glassnode, the number of USDC sending addresses and BUSD transfers have both dropped to lows while the Mean Transaction Volume (MTV) for BUSD surged to an eight-month high.

SEC’s Pressure on Stablecoins

The US Securities and Exchange Commission (SEC) issued a Wells notice to the BUSD issuer Paxos earlier this month. This news broke by the Binance CEO, Changpeng Zhao (CZ), has caused some diverse movements in the second and third-largest stablecoins.

USDC Sending Addresses Decreased

According to data provided by Glassnode, the number of USDC sending addresses seven-day median average has dropped to 1,384.976 – almost a two-month low. As a result, USDC’s total market cap fell to roughly $40.8 billion on Valentine’s Day following CZ’s tweet about the Wells notice. At present, CoinMarketCap data shows that USDC’s market cap is sitting at around $42.7 billion.

BUSD Transfers Dropped

Glassnode data also reveal that quite similarly, the number of BUSD transfers seven-day median average has plunged to five-month lows; roughly 85.720 was observed on Oct 25 2022 as its previous five-month low. Consequently, according to CoinMarketCap data, BUSD’s market cap has fallen from around $16 billion on February 11th when CZ initially tweeted about SEC’s pressure down to around $10.8 billion currently – a decrease of nearly $6 billion over two weeks ago .

Mean Transaction Volume Increased

On positive note however, Glassnode show that mean transaction volume (MTV) for BUSD surged 8 months high; reaching up till 880 million dollars when compared with its Aug 23 2022 eight months high record which stood at 886 million dollars as per Feb 24th .

Circle CEO Jeremy Allaire’s Views

Jeremy Allaire, CEO of Circle which is responsible for issuing USD Coin said that SEC “is not right regulator” for observing stablecoins , he further added banking regulators could be better option for observing asset class like these due their inherent nature & need for additional compliance requirements .

Ordinals Boost BTC Mining Profits: Bitcoin Tries to Cross $25K

• The bitcoin miner reserve has remained stable in February, with miners still making a profit due to the appearance of Ordinals, NFTs on the Bitcoin blockchain.
• BTC had a good past few days and surpassed the $24,000 mark.
• In January 2023, BTC miners were in difficult financial situations after the prolonged crypto winter of 2022, but Ordinals have made mining profitable again.

Bitcoin Miner Reserve Balances Stable Despite Difficulties

The bitcoin miner reserve has remained stable in February despite challenging conditions for miners during much of 2021. This stability is largely attributed to the appearance of Ordinals, NFTs on the Bitcoin blockchain which have made mining more profitable again. In addition, BTC has seen an increase in price over the past few days and recently passed $24,000 mark.

Mining Profitability Low During Crypto Winter

In January 2023 most miners were facing significant difficulties due to the prolonged crypto winter of 2022. As a result some BTC miners sold some of their coins when cryptocurrency markets began to rally again. Consequently miner reserves decreased substantially at this time according to CryptoQuant data. Additionally BTC difficulty levels also increased by 32% compared to July 2022 further reducing mining profitability.

Ordinals Make Mining Profitable Again

The arrival of Ordinals on Bitcoin’s blockchain has allowed block size to increase with additional videos and images – resulting in higher transaction fees for miners as well as more effort needed to process blocks on the network. With block rewards remaining relatively unchanged this extra income from transaction fees is helping keep mining profitable again for many miners.

BTC Attempting To Cross $25k Level

At present time BTC is attempting to cross resistance at $25,000 level with current trading prices at $24,862 – 14% up from last week’s figures showing positive gains for cryptocurrency overall. If successful then it could pave way for another surge with next major resistance level being set at $26,200 however could go lower if not able to clear current resistance point at $24,550 .

Conclusion

Overall it appears that Ordinal’s have been beneficial for mining profitability allowing miners to maintain steady reserves even during difficult times such as those experienced during crypto winter earlier this year. Although there are still obstacles ahead for BTC regarding its attempt at crossing $25K level its recent price rise shows that cryptocurrency remains attractive investment option currently and may continue doing so going forward into 2021-2022 period

Ancient Bitcoin Whale Nets $10.6 Million Profit with Massive BTC Sale

• An ancient Bitcoin address of the Satoshi era has sold 514 BTC, making a profit of $10.6 million.
• Dormant addresses are resurfacing and cashing out their BTC for large profits.
• Bitcoin’s price is currently trading above $21,800 and could potentially reach higher levels if it clears key resistance levels.

Ancient Bitcoin Whale Sells All Coins

An ancient BTC address from the Satoshi era recently sold all 514 BTC that had been held since 2017, earning a staggering $10.6 million profit in the process. This move serves as a reminder of how dormant Bitcoin whales can suddenly return to reward themselves with immense gains by selling their coins when the market starts to heat up.

Dormant Addresses Resurfacing

The whale’s sale has sparked a new market cycle which could further cause bitcoin prices to rise away from bearish trends. Long-term holders are now circulating capital to new buyers who are willing to acquire the digital currency at its current prices. Another dormant whale also cashed out 412 bitcoins worth approximately $9.5 million recently, having last used the address back in 2012 when bitcoin was trading at around $12.50 each – indicating significant gains over an extended period of time as well.

Bitcoin Price Rising

Bitcoin has seen its value surge significantly since mid-January, reaching an all-time high of over $24,000 – before facing correction and going lower again since then but remaining above the $21k mark currently.. Analysts suggest that should bitcoin manage to break through critical resistance levels such as near $22,400 or even at trend line zones, this could lead to further increases in its price in the short-term future too.

Key Resistance Levels

Significant resistances exist just past the near-$22,400 area with main resistance being close to $22,500; should this be broken through successfully then this could result in a decent increase in price soon enough while support levels exist towards the mid-$20k region should there be any further drops instead.

Conclusion

In conclusion, we can see that old wallets from years ago are still resurfacing and cashing out on significant profits due to the recent bull run while bitcoin continues to stay above certain key resistance points which may help push up its values even more soon enough – resulting in potentially more rewards for those who invested early on or had long held onto their coins until now..

Bitcoin Miners Halt Liquidations, BTC Price Rally Continues

• Bitcoin miners appear to have paused their liquidations, according to CryptoQuant data on Feb. 5.
• The shift in the trend of BTC reserve coincided with the revival of Bitcoin prices from mid-January 2022.
• Trackers show that BTC is trading at $23,135, up 37% in the last month.

Bitcoin Miner Reserve Trend Flattening

Bitcoin miners appear to have paused their liquidations, according to CryptoQuant data on Feb. 5. Per streams, bitcoin miners‘ reserve trend has been flat at around 1.837m BTC from Jan. 19 – the day when bitcoin miners held off from selling their coins.

Prices Reviving Post Mid-January 2021 Selloff

The shift in the trend of BTC reserve coincided with the revival of Bitcoin prices from mid-January 2022. From Jan. 19, BTC prices have rallied from $21,081 to $23,063 on Jan. 25 and reserves remained flat at around 1.837m BTC since then – indicating a pause in miner liquidation activity despite rising difficulty levels and rewards for successful mining operations on the network every 10 minutes (6.25BTC).

What is Bitcoin Mining?

Miners are tasked with confirming transaction blocks and securing the network by investing in modern gear and catering to operation costs such as electricity bills and salaries required for mining operations effectively on the Bitcoin network every 10 minutes regardless of difficulty levels set by protocol rules for block confirmation times (which have increased 4.68% since January 2021).

Analyzing Miner Reserves

Traders track the number of coins held by bitcoin miners which follows the number of coins in addresses affiliated with miners – however it does not reveal individual coin holdings by specific pools or farms operating within the network due to privacy protocols set in place for users performing transactions within networks using this technology stack that make up blockchain networks today like Ethereum or Tron etc..

Conclusion

When reserves increase it could indicate confidence in markets and expectations for further price gains while fast falling reserves could be indicative of fear that markets might post more losses going forward – but presently this is not being seen as consecutive increasing prices are still being seen month over month showing optimism amongst traders as well as higher than average reward allocations given out by the network per miner successfully confirming a block making up part pf its ledger framework; meaning BTC is trading currently at 23135$ up 37% since January 2021

Biden Administration Calls for Increased Crypto Regulations to Protect Financial Stability

1. The Biden administration has asked the US Congress to expand regulators‘ authority in policing the crypto industry to ensure financial stability.
2. The statement suggested strengthening transparency and disclosure requirements for crypto companies and imposing stiffer penalties for those who violate rules.
3. It discouraged green-lighting mainstream financial institutions like pension funds from crypto exposure.

The Biden administration has recently called upon the US Congress to step up its efforts in regulating the crypto industry. In a statement titled ‚The Administration’s Roadmap to Mitigate Cryptocurrencies‘ Risks‘, four senior White House officials have asked for regulators to be given more authority in order to prevent crypto from damaging financial stability.

The statement also emphasized the importance of protecting investors by creating structures to hold bad actors accountable. To this end, it suggested that Congress strengthen disclosure and transparency requirements for crypto companies, and impose tougher penalties for those who violate the rules. It also warned Congress against green-lighting mainstream financial institutions like pension funds from crypto exposure, as this could deepen crypto’s ties with the global financial system.

The officials cited the fall of LUNA’s stablecoin, UST, and the collapse of FTX, a cryptocurrency exchange, as examples of what makes 2022 a „tough year for crypto.“ They also noted that many crypto entities are already subject to existing laws, and that Congress should take this into consideration when crafting new regulations.

The statement concluded by calling on Congress to take the necessary steps to ensure cryptocurrencies don’t undermine financial stability, while also protecting investors from bad actors. It also highlighted the need for clear rules and regulations that will make the crypto industry more transparent, while also preventing it from becoming too closely intertwined with the global financial system.

FTX Scandal Sparks Increase in USDC Activity: Circle’s CEO

• Jeremy Allaire, co-Founder and CEO at Circle, discussed the silver lining of the FTX scandal at the World Economic Forum in Davos, Switzerland.
• He believes the scandal has made investors wary of risks in the crypto market and incentivized them to look for safe investments, leading to an increase in activity on Circle’s USDC stablecoin.
• Daily transactions with USDC have surpassed those of USDT several times over, due to its regulated and transparent nature, allowing users to verify the company’s reserves through an independent monthly audit.

At the World Economic Forum in Davos, Switzerland, Jeremy Allaire, co-Founder and CEO at Circle, shared his thoughts on the state of the market following the FTX scandal. Allaire believes that the bankruptcy of FTX and ensuing scandal has made investors warier of risks in the crypto market and incentivized them to look for safe ways to navigate digital assets. As a result, Circle has seen increased activity on its USDC stablecoin, even as other similar USD-backed stablecoins have seen a reverse trend.

Allaire believes this is due to USDC’s regulated and transparent nature, allowing users to verify the company’s reserves through an independent monthly audit. Daily transactions carried out with Circle’s USDC on the Ethereum network have seen a significant increase in recent times, surpassing those of USDT several times over. The added confidence in the stability and reliability of USDC has been credited to Circle’s focus on transparency and oversight.

When asked about the potential fallout of the FTX scandal in 2023, Jeremy Allaire confirmed that many companies in the crypto space would not survive due to poor risk management and the inability to raise funds. Despite this, Allaire remains optimistic, believing that the scandal has taught investors to be more wary of risks and to look for safer investments. He also believes that the increased activity on USDC is a testament to the trust that investors have in Circle’s regulated and transparent nature.