Over 60% of USDT's supply is currently issued on the Tron blockchain, according to Tether data.
On May 31, Tether (USDT) tokens issued on the Tron blockchain reached another all-time high of $46 billion, compared to $36.8 billion for Ethereum, accounting for over 60% of USDT’s circulating supply. The milestone comes on the fifth-anniversary launch of the Tron mainnet.
Over the past five years, Tron developers claim that the blockchain has processed 5.6 billion transactions and currently has a total value locked of $5.7 billion. Tron’s creator, Justin Sun, said his 2023 goals include elevating the network’s on-chain stablecoin market cap to $100 billion and establishing Tron as a preferred choice for stablecoin users by positioning itself as “a more affordable and user-friendly version of Ethereum." Tron developers also said they have “promised full support” for Web3 development in Hong Kong.
Cointelegraph reported that Hong Kong’s Securities and Futures Commission would begin issuing crypto exchange licensing applications for retail trading on June 1. A few days prior, Huobi, a cryptocurrency exchange under the de facto ownership of Sun, said it had begun offering crypto services to retail Hong Kong clients after submitting an application the same day. In April, Sun attended the annual Web3 Festival in Hong Kong, dispelling rumorsthat he had been arrested on arrival.
In March 2023, the United States Securities and Exchange Commission filed a civil lawsuit against Sun for the “orchestration of the unregistered offer and sale, manipulative trading, and unlawful touting of crypto asset securities” relating to Tron (TRX) and BitTorrent (BTT) tokens. The lawsuit iscurrently ongoing.
Binance's chief strategy officer Patrick Hillmann hinted on Twitter the resource reorganization is meant to address growing regulatory pressures targeting the crypto space.
A fresh headcount reduction is coming to crypto exchange Binance, which is reportedly planning to lay off 20% of its workforce in June. The job cuts come after the company said earlier this year it would not lay off any employees.
According to the exchange, the decision is not a downsizing but rather a resource reallocation. "As we prepare for the next major bull cycle, it has become clear that we need to focus on talent density across the organization to ensure we remain nimble and dynamic," a spokesperson told Cointelegraph.
On Twitter, Binance's chief strategy officer Patrick Hillmann hinted the reorganization is meant to address growing regulatory pressures targeting the crypto space:
"Regulators in almost every major market are also working overtime to provide greater clarity for their expectations of the industry and the asset class more broadly, which is putting even more pressure on orgs to adapt or fall by the wayside.”
Also, according to Hillmann, a precise number of layoffs has yet to be determined. "Like previous exercises, this will be done after several teams (including HR, Risk, and Operations) finalize that talent density audit," he continued.
At the time of writing, Binance's career page shows 326 open positions spanning several departments and locations. During the latest bull market, Binance's headcount grew from approximately 3,000 to nearly 8,000, with staff located across Europe, the Americas, the Middle East, Africa and Asia.
In March, a Binance spokesperson told Cointelegraph that the company was seeking to fill over 500 roles by the end of June: “As of today, we are actively hiring for more than 500 roles with the goal of filling them by the end of H1 [...] We are not planning any layoffs.” Moreover, in January Binance CEO Changpeng Zhao said the firm was planning for a hiring spree in 2023, increasing its headcount between 15% and 30%.
Crypto community members quickly reacted to the news, reviving Zhao's previous tweets about crypto exchange layoffs.
Screenshot: Changpeng Zhao, CEO of Binance, warns users on Twitter on Nov. 30, 2022.
To keep its global status in this environment, the exchange has been acquiring locally regulated entities, including deals in Singapore, Thailand, and Japan most recently.
Collectors known as “sat hunters” are collecting satoshis from rare Bitcoin — and those fragments may eventually be worth more than regular Bitcoin.
Since January, there have been over 10 million inscriptions on the largest blockchain in the world, and this number continues to grow exponentially.
To provide some context, the Ordinals Protocol allows for the ordered identification of satoshis, the smallest subdivision of a Bitcoin (BTC), enabling each of them to have an individual identity. From that people can inscribe sats with arbitrary content, creating Bitcoin-native digital artifacts, more commonly known as nonfungible tokens (NFTs).
Among the various narratives resulting from this technique, the existence of an extremely underground group of individuals who identify, track and trade high-value historical satoshis has come to light. They are known as “sat hunters.”
There is no denying that the Bitcoin ecosystem is undergoing a period of tremendous innovation since the advent of the Ordinals Protocol in early 2023.
Their main activity involves transacting millions of BTC in search of satoshis that were present in historical moments of the crypto world.
This practice is known as “sat hunting” and can be compared to continuously withdrawing money from a bank in search of rare coins: You withdraw $10,000, keep $1 of rare coins, deposit the remaining $9,999, and repeat the process of withdrawing another $10,000 in a continuous cycle.
The group that holds the largest amount of rare satoshis is the Rare Satoshi Society, which has already traded more than $1 billion in Bitcoin volume in pursuit of these historical sats.
They are becoming well-known for providing rare satoshis for the majority of Ordinals experiments and even sold a single satoshi for 0.5 BTC.
And it’s fascinating to observe how some Ordinals projects are adopting this narrative. One example is the Nakamoto Whales project, which minted a portion of its collection into rare satoshis from the first thousand mined blocks, including one mined by Satoshi Nakamoto.
Alongside the deployment of NFTs in rare satoshis, there is also an emerging trend of historically inscribed fungible tokens (BRC-20). DAnTer, a member of the Rare Satoshi Society, recently inscribed a collection, FHAL, onto a satoshi that was mined by the legendary Hal Finney on block 78 with the purpose of democratizing access to such a historical asset for more individuals.
Now, according to DAnTer, we have entered an era where one Bitcoin is no longer equal to one Bitcoin — and a satoshi becomes equal to infinity.
And although the narrative of historical satoshis still remains underground, fungible tokens on the Bitcoin network are hotter than ever. OKX, one of the largest exchanges in the world, just announced the listing of ORDI, the largest BRC-20 token in terms of market capitalization, while OXBT, one of the most popular BRC-20 tokens, has surpassed Bored Ape Yacht Club in the seven-day volume chart — just after its launch.
In February, people were trading Ordinals using Excel spreadsheets due to the lack of infrastructure. Today, just a few months later, major exchanges are joining this movement. Big brands like Bugatti have shown interest in the rare sats narrative, and there is even discussion about smart contracts on the Bitcoin network.
Could this be the phase of the greatest innovation and onboarding in the history of Bitcoin?
Lugui Tillier is the chief commercial officer of Lumx Studios, a leading Web3 studio that counts BTG Pactual Bank, the largest investment bank in Latin America, among its investors. Lumx Studios has previous Web3 cases with Coca-Cola, AB InBev, Nestlé and Meta.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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Long-term holder spending is “seeking equilibrium,” Glassnode suggests — but nothing will be quiet for long.
Bitcoin (BTC) is in a “transition,” which should pave the way to the next bull market top, new research has concluded.
In the latest edition of its weekly newsletter, “The Week On-Chain,” analytics firm Glassnode unveiled its latest tool for tracking Bitcoin’s resurgence.
Bitcoin hodlers in “transition”
After the 2022 bear market and signs of recovery in Q1 this year, on-chain metrics have undergone a broad transformation, many suggesting that a long-term BTC price bottom is already in.
With price action stagnating since mid-March, however, doubts have returned — along with downside targets that stretch toward $20,000.
For Glassnode analysts, however, Bitcoin’s long-term investor base is already preparing for better times ahead.
Using existing on-chain tools, analysts unveiled a new way of tracking sentiment among these long-term holders (LTHs) — those hodling BTC for at least 155 days.
The tool, “Long Term Holder Spending & Profitability,” splits LTH behavior patterns into four phases.
After a period of “capitulation” at the end of 2022, LTHs have begun a “transition” toward a state of “equilibrium” before full “euphoria” — the next BTC price cycle top — hits.
Capitulation is defined as a situation in which “spot price is lower than the LTH cost basis,” Glassnode explains, with significant LTH spending thus “likely due to financial pressure and capitulation.”
Transition, meanwhile, is when the “market is trading slightly above the long-term holders cost basis, and occasional light spending is part of day-to-day trade.”
The LTH cost basis, as of May 30, lies at around $20,800, separate data shows.
“Our current market has recently reached the Transition phase, flagging a local uptick in LTH spending this week,” “The Week On-Chain” commented:
“Depending on what direction volatility erupts next, we can employ this tool to locate local periods of overheated conditions, as observed from the lens of Long-Term Holders.”
Bitcoin Long Term Holder Spending & Profitability chart (screenshot). Source: Glassnode
“Seeking equilibrium” — but for how long?
Complementing LTHs, Bitcoin’s short-term holder (STH) cohort, which corresponds to more speculative investors, is already on the radar.
Speculative activity has increased in 2023, Glassnode previously stated, making their cost basis — at around $26,000 — an increasingly important level.
Overall, however, BTC/USD remains in a narrow range, having acted within a $5,000 corridor for almost three months, data from Cointelegraph Markets Pro and TradingView shows.
BTC/USD 1-day candle chart on Bitstamp. Source: TradingView
“The digital asset market continues to outperform major commodities in 2023, however all are currently experiencing a meaningful correction. Having recovered from the depths of the 2022 bear market, Bitcoin investors find themselves in a form of equilibrium, with little gravity in either direction,” the newsletter summarized.
“Given the extremely low volatility, and narrow trading ranges of late, it seems this equilibrium is soon to be disturbed.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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BTC’s historically low volatility could abruptly change in June, with long-term holders making moves and options traders showing an uptick in bearish positions.
Bitcoin’s volatility has dropped to historically low levels thanks to macroeconomic uncertainty and low market liquidity. However, on-chain and options market data allude to incoming volatility in June.
The Bitcoin Volatility Index, which measures the daily fluctuations in Bitcoin’s (BTC) price, shows that the 30-day volatility in Bitcoin’s price was 1.52%, which is less than half of the yearly averages across Bitcoin’s history, with values usually above 4%.
According to Glassnode, the expectation of volatility is a “logical conclusion” based on the fact that low volatility levels were only seen for 19.3% of Bitcoin’s price history.
The latest weekly update from the on-chain analytics firm shows that Glassnode’s monthly realized volatility metric for Bitcoin slipped below the lower bounds of the historical Bollinger Band, suggesting an incoming uptick in volatility.
Bolinger Bands for Bitcoin monthly realized volatility metric. Source: Glassnode
Long-term Bitcoin holders metric points to a price breakout
The on-chain transfer volumes of Bitcoin across cryptocurrency exchanges dropped to historically low levels. The price is also trading near short-term holder bias, indicating a “balanced position of profit and loss for new investors” that bought coins during and after the 2021-2022 bull cycle, according to the report. Currently, 50% of new investors are in profit, with the rest in loss.
However, while the short-term holders reached equilibrium levels, long-term holders were seen making a move in therecent correction, which underpins volatility, according to the analysts.
Glassnode categorizes coins older than 155 days in a single wallet under long-term holder supply.
The gray bars in the image below show the long-term holder (LTH) binary spending indicator, which tracks whether LTH spending averaged over the last seven days is adequate to decrease their total holdings.
It shows previous instances when LTH spending increased, which was usually followed by a volatility uptick.
Bitcoin’s recent correction saw a minor downtick in the indicator, “suggesting 4-of-7 days experienced a net divestment by LTHs, which is a level similar to exit liquidity events seen YTD.”
The analysts expect a bout of volatility to reach an equilibrium level, where the market moves primarily due to the accumulation or distribution of long-term holder supply.
Options markets reaffirm traders’ expectation of volatility
The options market data indicates a similar theory about impending volatility.
The latest options market expiry for May turned out to be a dull event, despite a major expiration of $2.3 billion in notional value. However, prolonged compression of volatility can indicate a big incoming move in terms of price.
Bitfinex’s latest Alpha report shows that the DVOL index, which represents the market’s expectation of 30-day future implied Bitcoin volatility, slipped to 45 from a reading of 50 right before the expiry, which represents a yearly low.
The DVOL index for Bitcoin options. Source:Bitfinex
Implied volatility in options refers to the market’s expectation of the future volatility of the underlying asset, as reflected in the prices of options.
Bitfinex analysts said that low expectations of volatility can occur due to “upcoming events that are expected to move the market” or “increased uncertainty or risk aversion among market participants.”
Currently, the options traders are showing risk aversion and have increased their bearish positions, moving from May to June.
The put-to-call ratio for Bitcoin options increased from 0.38 to 0.50. A higher weight of put options shows that traders are increasingly turning bearish on Bitcoin.
Analysts at Bitfinex currently expect “potential market turbulence and short-term price fluctuations” in June, especially close to the expiry toward the month’s end.
The potential price levels that can act as a magnet according to options market positioning are the maximum pain levels for May and June’s expiration at $27,000 and $24,000, respectively.
Maximum pain, also known as max pain or option pain, is a concept used in options trading and refers to the price at which the buyers incur maximum losses.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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XRP's daily active address count has soared to its second-highest level in May, raising traders' anticipation for a price rally.
The price of XRP (XRP) rose 6% to $0.51 on May 30 as the market's attention turned toward the latest spike in XRP network activity.
XRP/USD hourly price chart. Source: TradingView
XRP's daily active addresses count near record high
The XRP network witnessed a sudden increase in the daily active addresses (DAA) — the number of unique addresses involved in XRP transactions daily.
For instance, on May 27, around 490,000 addresses interacted with the XRP network. That amounted to the second-largest address activity on the XRP blockchain, just three months after establishing the record DAA count of 880,000, according to data resource Santiment.
XRP DAA vs. daily price chart. Source: Santiment
Interestingly, the DAA surge to a record high in March preceded a 45% price rally. This fractal may have prompted traders to speculate on a similar upside move after the latest DAA count rise.
This is primarily because of how the market interprets the DAA indicator. It considers a rise in active addresses as bullish for the concerned token. Conversely, a drop in active addresses is considered bearish.
Nonetheless, history presents the DAA indicator as a flawed one. For instance, the spikes in XRP's DAA count between November 2021 and April 2022 coincides with the token's price decline, as shown in the chart below.
XRP DAA count throughout history. Source: Santiment
As a result, XRP remains at risk of declining, primarily because of an uncertain macroeconomic outlook that could hurt the crypto sector broadly.
XRP eyes a 20% decline in June
From a technical standpoint, XRP could drop in the coming weeks as the token retests its multi-month horizontal trendline resistance for a potential pullback.
XRP/USD weekly price chart. Source: TradingView
If a retreat occurs, XRP price may aim for its multi-month ascending trendline support as its primary downside target. That could theoretically take the price to around $0.40, down 20% from current price levels.
Conversely, a breakout above the horizontal trendline resistance could trigger an ascending triangle reversal breakout, pushing XRP price toward $1, as illustrated below.
XRP/USD weekly price chart. Source: TradingView
A potential Ripple win in the ongoing lawsuit against the U.S. Securities and Exchange Commission (SEC may prompt such a breakout move.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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The platform is part of Air Nippon Airways' ongoing expansion into the intersection of airlines and Web3.
On May 30, Air Nippon Airways (ANA), the largest airline in Japan, launched an aeronautical-themed nonfungible tokens (NFTs) marketplace with its subsidiary ANA Neo.
Dubbed the "ANA GranWhale NFT Marketplace," the platform will feature an inaugural collection created by aerial photographer Luke Ozawa. As told by developers:
"From May 30, aerial photographer Luke Ozawa's first digital photo will be converted to NFT. One of them will be sold with a positive film, which is the source of photo development. The price is 100,000 yen, and the NFT with positive film will be sold at auction."
Meanwhile, the second collection of NFTs will be released on June 7, representing the NFT image conversion of the first Boeing 787 operated by AMA. "Selling as a 3D model airplane. There are 787 items each of the two types, for a total of 1,574 items, and the price is 7,870 yen," ANA wrote.
The ANA GranWhale NFT Marketplace
ANA is Japan's largest airline, with revenues of $12.2 billion in its last fiscal year. The firm said it plans to increase the NFT product line in the future and aims to improve the value of customer experience through NFT commercialization.
The development of ANA Neo's Gran Whale started last August as a virtual travel platform utilizing "technology, including VR, to recreate the destinations and cultures of the world" in the form of metaverse parks. ANA Neo's president, Mitsuo Tomita, previously stated:
"The arrow in the symbol [logo] represents the virtual and the real, respectively, and the fusion of the two symbolizes the ANA GranWhale flying straight into the future with stability and growth, where Web 3.0 and metaverse travel will become more commonplace."
As part of its expansion into mining, Tether cited Uruguay’s capability of generating 94% of its electricity from renewable sources, including wind and solar.
Stablecoin issuer Tether has announced it will be launching Bitcoin mining operations in Uruguay.
In a May 30 announcement, Tether said it planned to start a mining arm in the South American nation “in collaboration with a local licensed company” in addition to investing in Uruguay’s energy production. The stablecoin issuer claimed the venture would utilize renewable energy sources aimed at “sustainable” Bitcoin (BTC) mining and planned to hire additional team members.
"By harnessing the power of Bitcoin and Uruguay's renewable energy capabilities, Tether is leading the way in sustainable and responsible Bitcoin mining," said Tether chief technology officer Paolo Ardoino. "Our unwavering commitment to renewable energy ensures that every Bitcoin we mine leaves a minimal ecological footprint while upholding the security and integrity of the Bitcoin network."
At Tether, we understand the importance of energy in driving progress & enabling thriving communities. That's why we're dedicated to harnessing the power of renewable energy to mine #Bitcoin, the world's most open & secure monetary network.
Tether cited Uruguay’s capability of generating 94% of its electricity from renewable sources including wind, solar, and potentially hydropower, as well as its reliable grid. Job listings on its website at the time of publication also suggested expansion into South Africa and Brazil.
The mining announcement followed Tether saying it planned to “regularly allocate up to 15%” of its profits into BTC purchases. The stablecoin issuer reported it held roughly $1.5 billion in Bitcoin as of the first quarter of 2023 — 2% of its total reserves. Tether kept most of its holdings in cash, cash equivalents and U.S. Treasury bills.
On-chain analytics platform Spot on Chain reported that Wintermute sold the tokens at $1.63 per OP.
Decentralized finance (DeFi) platform Wintermute has transferred its Optimism (OP) tokens to a Binance exchange wallet ahead of the upcoming unlock that’s scheduled to release $587 million worth of tokens into the market.
On May 31, 386 million OP tokens will be unlocked for early contributors and investors. The amount of tokens that will be released into the market accounts for 9% of the total supply. The tokens are worth around $587 million and are expected to increase the circulating supply by over 100%.
Seemingly preparing for what lies ahead, Wintermute’s wallet has been spotted transferring 2.651 million OP – worth $4.31 million – to Binance in the past 2 days. According to the on-chain analytics platform Spot on Chain, the DeFi protocol has already sold the tokens for $1.63 per OP.
Over the past 42 hours, @wintermute_t has moved 2.651M $OP to #Binance at $1.63 on avg ($4.31M).
⚠️ 386.5M $OP ($587.5M) will be unlocked in 18 hours:
- 204M $OP to core contributors
- 182.5M $OP to investors
- Represents 9% of total supply or 53.5% of circulating supply pic.twitter.com/XLSkeaEqHp
According to the analytics platform, the company accumulated a total of 21.31M from crypto exchanges Binance and Coinbase at an average price of $1.01. At the moment, the platform has already sold 5.9 million tokens for a total of $10.6 million. The DeFi platform still holds a total of 15.37 million OP, which is worth around $23.4 million at the time of writing.
Last year, the Ethereum layer-2 scaling solution Optimism raised $150 million in a Series B round, led by Andreessen Horowitz (a16z) and Paradigm, as it saved $1 billion in fees for Ethereum users. According to Crunchbase, Wintermute was one of the investors who participated in this round.
Meanwhile, the platform is set to go through a major upgrade on June 6. On May 16, Optimism announced the date for its "Bedrock" upgrade that's expected to reduce transaction fees and enhance its compatibility with the Ethereum network.
During an interview, Michael Saylor discussed how crypto networks like Bitcoin can promote security and combat digital trust issues.
Bitcoin may be the answer to combat cybersecurity threats driven by artificial intelligence, such as deepfake, said Michael Saylor, executive chairman of MicroStrategy, during a recent interview with Kitco News.
Saylor illustrated his views using social media accounts created by robots as an example. According to him, billions of fake accounts are behind a digital "civil war" in today's society, stirring up hatred among real users of digital platforms.
"The risk in cyberspace is I can spin up a billion fake people, and I can create a civil war by having the fake Republicans hate on the fake Democrats, or the real Democrats. Having the fake Democrats hate on the real Republicans," said the tech executive when discussing how artificial intelligence and other next-generation technologies will make deepfake cheaper and harder to detect.
Michael Saylor during interview at the Bitcoin 2023. Source: Kitco News
According to Saylor, who has over 3 million Twitter followers, he receives nearly 2,000 fake followers every day. "I literally saw in a matter of one hour, 1500 bot accounts got scrubbed off my account, and they were bots. So, we can no longer live with that status quo," he continued. The executive believes the solution for deepfake and other digital trust issues lies in decentralized identities (DIDs).
A decentralized identity is a self-owned, independent identity that enables trusted data exchange. In other words, it is a way to verify and control an online identity and personal information.
"If someone wants to launch a billion Twitter bots, that's going to cost them a billion transactions [...]. By combining the power of cryptography with the power of a decentralized crypto network like Bitcoin, we can bring cost and consequence into cyberspace," he explained.
Saylor's Microstrategy is one of the companies working on encrypted signatures for social users and corporate solutions. The CEO of Open AI, Sam Altman, is also developing technology for proof of personhood with his crypto project, Worldcoin. To build decentralized identification tools, the company closed a $115 million fund round last week.
Similarly, layer-2 protocol Polygon launched a decentralized identity solution in March. Powered by zero-knowledge proofs (ZK proofs), it uses cryptographic techniques to allow users to verify their identity online without having their sensitive information passed or potentially stored with a third party. The product came out nearly a year after announcing its development.
Over the past year, Circle's USD Coin has seen its market share decline from 34.88% to 23.05%. Tether's USDT shows a contrasting picture.
The market dominance of stablecoins pegged to the United States dollar has undergone some changes over the past year. While most of them are in a downward trend, Tether (USDT) has climbed back to its all-time high, data from CoinGecko shows.
In the past 12 months, Circle's USD Coin (USDC) has seen its market share decline from 34.88% to 23.05% at the time of writing. Market participation of Binance USD (BUSD) plunged from 11.68% to 4.18% in the same period, while Dai (DAI) held its participation rate at 3.66%, down from 4.05% in May 2022.
Tether's USDT is moving in a contrasting trend. The stablecoin market dominance currently sits at 65.89% from 47.04% one year ago. Its market capitalization soared to $83.1 billion, while the USDC market cap dropped to $29 billion from its $55 billion peak.
In a recent interview with Bloomberg, Circle CEO Jeremy Allaire blamed the crypto crackdown by the United States regulators for the stablecoin's declining market capitalization. The current environment in the United States appears to be beneficial for Tether.
USD Stablecoins by Market Dominance. Source: CoinGecko.
The U.S. banking crisis led to USDC depegging in March as reserves worth $3.3 billion were stuck at Silicon Valley Bank, one of three crypto-friendly banks shut down by regulators. Despite Circle's assurances, the market quickly responded to the news, causing USDC to depeg from the dollar.
With the growing connection between the crypto space and traditional finance, stablecoins have become increasingly popular. A report released recently by the European Systemic Risk Board highlighted the need for more transparency in the digital assets market, specifically for stablecoin reserves.
Tether has been heavily criticized for lacking transparency over the past years. Owned by Hong Kong-based iFinex, the crypto firm was fined $18.5 million in 2021 by the New York Attorney General’s Office for allegedly misrepresenting the fiat backing for its reserves. As part of the settlement, the stablecoin issuer was also required to provide greater financial transparency.
Tether's leadership has fought back against the negative allegations on Twitter. Additionally, the company is seeking to reduce its exposure to the banking system following the collapse of Silicon Valley Bank. Its latest audit report shows Tether pulled over $4.5 billion out of banks in the first quarter of 2023, leading to a "substantial reduction" in counterparty risk amid the ongoing global economic uncertainty.
The company also boosted its U.S. Treasury bills to a new high of over $53 billion, or 64% of its reserves. Combined with other assets, USDT is now backed by 85% cash, cash equivalents and short-term deposits, according to the report.
A similar move has been made by Circle. The stablecoin operator reportedly adjusted its reserves to mitigate risk in the face of macroeconomic uncertainty, and no longer holds Treasuries maturing beyond early June.
The move follows the acquisition of the regulated crypto exchange Sakura Exchange Bitcoin (SEBC) in November 2022.
After five years out of the Japanese market, crypto exchange Binance has begun the process of establishing a new and fully regulated subsidiary in the country. The move follows the acquisition of the regulated crypto exchange Sakura Exchange Bitcoin (SEBC) in November 2022.
As part of the deal, SEBC will cease its current services by May 31 and reopen as Binance Japan in the coming weeks. Users of the exchange's global platform in the country will have to register with the new entity. The migration will be available after August 1, 2023, and will include a new identity verification process (KYC) to comply with local requirements.
Any remaining funds on the SEBC exchange will be automatically converted to Japanese yen and transferred to users' bank accounts beginning in June, Binance previously disclosed.
With a narrowing regulatory landscape, the exchange's strategy for expanding its global reach has been to acquire local regulated entities. Binance made a similar move in Singapore in 2021, in Malaysia in 2022, and in Thailand most recently. In Japan, it shut down operations in 2018, after failing to obtain an independent license from local regulators.
According to a notice on its website, the exchange will not provide derivative services in Japan. Binance's global version will not accept new derivative accounts from users in the country.
Additionally, residents in Japan using the global platform will not be able to increase or open new options positions after June 9. Pending orders will be canceled, and existing positions must be closed before June 23, said the exchange. Binance Leveraged Tokens will not be available for trade or subscription.
"In the future, we plan to continue to enrich our service offerings in Japan and will work closely with regulators to possibly provide derivatives services in a fully compliant manner," the company wrote.
Japan was one of the first nations to introduce crypto regulations. The local laws contributed to the speedy recovery of funds in February at FTX Japan, a subsidiary of the now-bankrupted crypto exchange FTX. Japan's regulations requires crypto exchanges to separate client funds from other assets.
Cheds shares the story of how he shifted his focus to crypto after being diagnosed with cancer.
Technical analyst Cheds has dreamed of being a trader since his childhood. However, the journey he had to take to fulfill his dream wasn’t very straightforward.
In an episode of Cointelegraph’s Crypto Stories, Cheds shared his humble beginnings. According to the technical analyst, he always dreamed about trading stocks since he was a kid. He said:
“I loved the idea of buying low and selling high. Playing the market seemed like a great way to become rich enough to buy my own island.”
Despite this, life had other plans. He studied psychology in college and eventually decided to get some experience in sales and marketing, working his way to upper management of the company he worked in. Even though he was walking a different path, he never let go of his desire to trade and kept an eye on stocks.
He was then introduced to penny stocks and started trading marijuana stocks. According to Cheds, he was able to grow his portfolio only to find out that the news people were basing their trading decisions on was spurred by holders looking to find a way to sell their shares. He experienced massive losses and decided to take a break from trading.
Eventually, Cheds said he was able to accept his situation, and a fire was lit inside him. “I would have to become a well-rounded trader. The skills I learned from studying psychology and poker were just not enough. I would have to get better at technical analysis,” he said. This sparked the beginnings of his social media account and blog about technical analysis.
Fast forward a few years, and he was finally able to earn enough to quit his day job and realize his childhood dream of being a trader. The next year, Cheds discovered Bitcoin (BTC), Ether (ETH) and Litecoin (LTC) through a friend. He started sharing crypto charts and analysis, rapidly growing his social media.
The trader faced a new challenge not long after when he was diagnosed with cancer. At the time, he embraced his new identity as a crypto trader. “Instead of focusing on being sick and vulnerable all the time, I wanted to focus on being a top-notch technical analyst,” he said.
The highly accessible introductory text mentions all the concepts and names a curious reader would need, along with some assessments.
The Federal Reserve Bank of Atlanta has piqued the interest of the crypto community with a recent publication in its Policy Hub series on the implications of Web3 for financial services. The 17-page paper by Christine Parlour, a professor at the University of California, Berkeley Haas School of Business, is intended as a basic text and is noteworthy for its completeness.
The paper begins with a discussion of blockchains, explaining that “data are sorted and stored in specific locations called ‘wallets’ or ‘addresses.’” After providing the necessary background, Parlour looks at decentralized finance (DeFi) and financial infrastructure.
Parlour mentions the regulatory challenges of decentralized autonomous organizations, which do not have “an obvious legal entity” to engage with. Furthermore:
“The darker side of using tokens as collateral is that it generates interconnectedness among various protocols, which makes estimating or understanding systemic risk more challenging for regulators.”
Parlour’s discussion is rich with brand names of lending protocols and stablecoins.
Web3 financial infrastructure provides advantages over traditional finance in the cost and speed of transacting, Parlour says. Financing trade can be significantly improved through cost reductions along the supply chain, for example.
The paper touches on central bank digital currency (CBDC) as it discusses foreign exchange and looks at the recently launched Project Mariana, which attempts to apply DeFi protocols for foreign exchange. Parlour mentions Stellar and Ripple and describes Ripple’s XRP (XRP) token as “envisioned as an international payment medium or wholesale settlement coin.”
Ripple has garnered much attention for its deals with countries such as Montenegro for the development of CBDCs. There has been much speculation about the United States Federal Reserve’s plans to introduce a CBDC, which the Fed has not confirmed. Parlour gives no indication of any plans of this type or that the Fed is thinking of using XRP for any purpose.
The Atlanta Fed released a report re: Web3 & finance that mentions #Ripple. They describe #XRP as an "international payment medium or wholesale settlement coin." "Wholesale settlement" is interesting context. Also a brief overview of Project Mariana.https://t.co/pzazPU8zvupic.twitter.com/2LAC74RwSR
Ripple is also in a legal dispute with the Securities and Exchange Commission over the status of XRP as a security.
In addition, Parlour discusses tokenized bank deposits, a concept promoted by the USDF Consortium, whose CEO, Robert Morgan, recently described as a “third way” between traditional finance and DeFi to a U.S. House of Representatives subcommittee.
The recovery in the U.S. stock market seems to have acted as a catalyst for the relief rally in Bitcoin and select altcoins.
Bitcoin (BTC) remains pinned below $27,000 and the recent weakness of the past few days has increased calls from analysts for a fall to the low $20,000 levels. While anything is possible, the bulls are unlikely to give up the $25,000 support without putting up a fight.
Glassnode’s lead on-chain analyst Checkmate said in his comments on May 24 that the Sell-side Risk Ratio metric suggests that “sellers are exhausted on both sides” and that indicates big moves “are coming.” The last time the Sell-side Risk Ratio was this low was in late 2015, which started the bull run that reached $20,000 in December 2017.
Another short-term positive is that market observers expect a debt ceiling deal to be reached and that has boosted the price of the United States equities markets on May 26. If the risk-on sentiment sustains, it could increase demand for Bitcoin and select altcoins.
What are the crucial resistance levels in Bitcoin and the major altcoins that need to be crossed for a sustained recovery to begin? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin bounced off $25,871 on May 25, close to the strong support zone of $25,811 to $25,250. The bulls will try to push the price to the 20-day exponential moving average ($27,173).
BTC/USDT daily chart. Source: TradingView
This level may again attract strong selling by the bears. If the price turns down from the 20-day EMA, it will signal a negative sentiment where the bears are selling on rallies.
The crucial level to watch on the downside is $25,250. The bulls are expected to defend this support with all their might because if this level crumbles, the BTC/USDT pair may fall to $24,000 and eventually to $20,000.
On the contrary, if bulls pierce the overhead resistance at the 20-day EMA, the pair could rise to the resistance line. Buyers will have to overcome this barrier to indicate that the correction may be over.
Ether price analysis
Ether (ETH) has been trading inside a falling wedge pattern for the past several days. The bears tried to sink the price to the support line of the wedge on May 25 but the bulls aggressively purchased the dip as seen from the long tail on the candlestick.
ETH/USDT daily chart. Source: TradingView
The bulls are trying to nudge and sustain the price above the 20-day EMA ($1,829). If they succeed, the ETH/USDT pair could rise to the resistance line. This is an important level to keep an eye on because a break above it will increase the possibility of a rally to $2,000.
If the price turns down from the current level or the resistance line, it will suggest that bears remain active at higher levels. That could keep the pair stuck inside the wedge for a few more days.
BNB price analysis
BNB (BNB) descended near the horizontal support of $300 on May 26 but the long tail on the candlestick shows buying by the bulls.
BNB/USDT daily chart. Source: TradingView
The 20-day EMA ($311) remains the key resistance to watch out for on the upside. If the price once again turns down from this level, it will increase the likelihood of a break below $300. If this level gives way, the BNB/USDT pair could slide to the support line of the descending channel pattern.
Contrarily, if the price turns up and breaks above the 20-day EMA, it will suggest solid demand at lower levels. The pair could then attempt a rally to the resistance line. Buyers will have to clear this hurdle to signal the start of a rally to $350.
XRP price analysis
The bears pulled XRP (XRP) below the 20-day EMA ($0.45) on May 24 and 25 but they could not sustain the lower levels. This shows that the sentiment has turned positive and traders are buying the dips to the 20-day EMA.
XRP/USDT daily chart. Source: TradingView
The price remains stuck between the moving averages, indicating indecision among the bulls and the bears. A break and close above the 50-day simple moving average ($0.47) will tilt the advantage in favor of the bulls. The XRP/USDT pair could then start its northward march to $0.54 and subsequently to $0.58.
Alternatively, if the price breaks and sustains below the 20-day EMA, it will indicate that bears are back in the game. The pair could then drop to the crucial support at $0.40.
Cardano price analysis
Cardano (ADA) is witnessing a tough tussle between the bulls and the bears near the uptrend line. The bears are trying to sink the price below the uptrend line but the bulls are fiercely defending the level.
ADA/USDT daily chart. Source: TradingView
The downsloping 20-day EMA ($0.37) and the relative strength index near 42, indicate that bears have the upper hand. Sellers will have to tug the price below $0.35 to start the next leg of the downward move to $0.30.
If bulls want to seize control, they will have to shove and sustain the ADA/USDT pair above the moving averages. That will open the doors for a possible rally to the overhead resistance at $0.44 where the bears may again mount a strong defense.
Dogecoin price analysis
The bears pulled Dogecoin (DOGE) below the $0.07 support on May 25 but the long tail on the candlestick shows that the bulls are trying to protect the level.
DOGE/USDT daily chart. Source: TradingView
The bulls will have to maintain their buying pressure and kick the price above the 20-day EMA ($0.07) if they want to prevent another assault by the bears. There is another hurdle at $0.08 but if that is crossed, the DOGE/USDT pair may start its journey to $0.10.
Instead, if the price turns down from the current level or the 20-day EMA, it will suggest that bears are selling on every minor rally. That will increase the likelihood of a break below $0.07 and the pair may slump to $0.06.
Polygon price analysis
Polygon (MATIC) turned down from the 20-day EMA ($0.89) on May 25 but the bears could not sustain the lower levels. Strong buying by the bulls sent the price above the 20-day EMA on May 26.
MATIC/USDT daily chart. Source: TradingView
Buyers tried to extend the relief rally above the 50-day SMA ($0.98) but the long wick on the day’s candlestick shows that bears are active at higher levels. If buyers can flip the 20-day EMA into support, the MATIC/USDT pair may again try to reach the downtrend line.
On the contrary, if the price turns down and breaks below the 20-day EMA, it will suggest that supply exceeds demand. The pair could then drop to the vital support at $0.82. If this level gives way, a drop to $0.69 cannot be ruled out.
The bulls managed to protect the $18.70 support on May 24 and 25 but they could not start a strong relief rally in Solana (SOL). That indicates a lack of demand at higher levels.
SOL/USDT daily chart. Source: TradingView
Time is running out for the bulls. If they do not start a recovery quickly, the bears will try to strengthen their position further by yanking the price below the $18.70 support. If they do that, the SOL/USDT pair could start its southward journey toward $16.
The first sign of strength will be a break and close above the downtrend line. The pair could then rise to the 50-day SMA ($21.65). If this level is surmounted, it will suggest the start of an up-move toward $27.12.
Polkadot price analysis
Polkadot’s (DOT) shallow bounce off the strong support at $5.15 on May 25 and 26 shows a lack of aggressive buying by the bulls. The bears will try to use this opportunity and build upon their advantage.
DOT/USDT daily chart. Source: TradingView
If the price slips below $5.15, the DOT/USDT pair could pick up momentum and tumble toward the next major support at $4.22.
If bulls want to prevent a decline, they will have to quickly drive the price above the 20-day EMA ($5.40). If they manage to do that, it will suggest that the buyers are trying to form a higher low at $5.15.
The pair could first rise to the 50-day SMA ($5.82) and subsequently dash toward the downtrend line. A break above this level will suggest that the corrective phase may be over.
Litecoin price analysis
Litecoin (LTC) has been range-bound between $96 and $75 for the past few days. The price action inside the range can be random and volatile.
LTC/USDT daily chart. Source: TradingView
The bulls started a recovery on May 25, which has reached the moving averages. If the price turns down from the current level, the next stop could be the uptrend line. If the price turns up from the uptrend line, it will suggest that the LTC/USDT pair is attempting to form a symmetrical triangle pattern.
If the price breaks above the moving averages, it will suggest that the short-term sentiment is turning positive. The pair could then attempt a rally to $96 where the bears may again mount a strong resistance.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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Twitter emailed researchers to let them know they’ll either have to delete their data or pay $42,000 to keep using the platform's API.
Researchers using Twitter’s formerly free Decahose data service will soon be required to pay a fee of $42,000 per month to continue using the service and retain their data.
Decahose, a streaming service that gives scientists unfettered access to around 10% of all tweets in real-time, has been a mainstay for academic research on myriad topics, including emergency response, law enforcement-related activities, political misinformation, and extremism.
Earlier this year, due to Elon Musk’s purchase of the company, Twitter announced it would begin charging for access to its numerous APIs with fees ranging from $100 to $42,000 per month.
For Academia, we are looking at new ways to continue serving this community. In the meantime Free, Basic and Enterprise tiers are available for academics. Stay tuned to @TwitterDev to learn more.
Academics and universities using the Decahose service would be required to pay the “enterprise” fee of $42,000 per month under the new rules and the amount of data available would reportedly drop from 10% of the total live tweets to 0.3%.
According to a report from British publication i news, researchers were recently sent an email explaining that they could either start paying for their access or delete any data they’ve obtained:
“Researchers who don’t sign the new contract ‘will need to expunge all Twitter data stored and cached in your systems.’ Researchers will be required to post screenshots ‘that showcase evidence of removal.’ They have been given 30 days after their agreement expires to complete the process.”
The timing of this change is noteworthy, as it comes mere days after Musk joined Florida Governor Ron DeSantis in announcing the latter’s bid for the White House in the 2024 U.S. presidential election.
If executed as planned, the impending change to Decahose access could stifle global research efforts to study election misinformation and social manipulation ahead of the 2024 election as it occurs on what’s been described as one of the world's most politically-active social media platforms.
Beyond misinformation research, the pricing changes would also limit academia’s ability to study internet-related crimes such as human trafficking and financial scams. Furthermore, Decahose has served as one of the internet’s largest repositories of human sentiment — a data source that drives insights and predictions on nearly every society-related research topic imaginable.
Much of the data used to study cryptocurrency sentiment, for example, comes from Twitter and Reddit data silos. By limiting access to this data, Twitter is potentially hindering both ongoing research and forestalling new efforts.
One explanation for the pricing increase could involve Musk’s ongoing efforts to ensure technology companies aren’t using Twitter’s data to train their AI systems.
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The pair rose unexpectedly after the day’s Personal Consumption Expenditures (PCE) data showed its first rises since October 2022.
Such a reading should present a headwind for risk assets, including crypto, as it implies that inflation remains persistent and that more financial tightening may be required to tame it.
“This is a major setback to the Fed's fight against inflation,” financial commentary resource, The Kobeissi Letter, wrote in part of a response.
Kobeissi noted that expectations for interest rate hikes from the Federal Reserve were “shifting rapidly” thanks to the PCE event.
According to CME Group’s FedWatch Tool, the market now narrowly favors a fresh hike in June, whereas before, it was more than 80% certain that a pause would occur.
Fed target rate probabilities chart. Source: CME Group
Financial commentor Tedtalksmacro meanwhile acknowledged that the PCE gains were relative.
“US PCE data came in hot, above analyst expectations. On a 3-month annualised basis, however, core PCE printed sharply lower... down to 4.2%,” he reacted.
Cause for relief for traders meanwhile came from accompanying news that the Biden administration was nearing a deal on the debt ceiling, with the deadline now just days away.
The S&P 500 and Nasdaq Composite Index were up 1% and 1.65%, respectively, at the time of writing.
DXY hits 10-week highs
Turning to Bitcoin itself, Michaël van de Poppe, founder and CEO of trading firm Eight, flagged the potential for upside continuation.
“That's step one for Bitcoin, as we reclaim $26,600 and are looking for continuation towards the range highs,” he commented on the day’s price action.
“If the recent correction is deviation, we might break to $29,000 next week.”
BTC/USD annotated chart. Source: Michaël van de Poppe/ Twitter
He cautioned that PCE was “not a great sign” for risk assets, noting the knee-jerk reaction for U.S. dollar strength — traditionally inversely correlated with crypto.
The U.S. dollar index (DXY) hit 104.4 on the day, its highest levels since March 17.
“Some consolidation following this month’s rally would be healthy for the dollar,” popular trader Justin Bennett wrote in a dedicated forecast.
“But a daily and weekly close above 104.20 opens up 105.00 early next week. The only thing that would turn me bearish on the DXY is a daily close below 103.50.”
U.S. dollar index (DXY) 1-day candle chart. Source: TradingView
Bitcoin (BTC) made snap gains at the May 26 Wall Street open as United States macroeconomic data delivered a nasty surprise.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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