Bitcoin has stumbled under $20,000 after several backtracks in the crypto market, just after a massive surge in prices across 2023.
Thursday saw Bitcoin’s market capitalisation fall 7.7 percent compared to the previous day, data from Trading View showed.
Similar trends took place in November 2021, when Bitcoin plummeted from $69,000 USD to $16,600 up to early 2023. External influences included the collapse of FTX, Voyager Digital, Genesis, and Terra/Luna.
Despite this, Bitcoin and numerous cryptocurrencies surged in February this year, with the former topping $25,000. However, later in the month, the United States Federal Reserve revealed high levels of inflation that would require greater-than-anticipated efforts.
Fed Reserve chair Jerome Powell aimed to reduce inflation to 2 percent to stabilise the economy.
Recently Silvergate Bank also collapsed due to its ties to disgraced cryptocurrency exchange FTX and its subsidy, Alameda Research. The former facilitated the latter’s payments despite filing for Chapter 11 bankruptcy on 11 November, just days after receiving assistance from Silvergate Bank.
Numerous cryptocurrency exchanges such as Coinbase, Gemini, and others have severed ties with the troubled bank. The Biden administration said that it was aware of the situation and would continue monitoring the Silvergate collapse closely.
United States Federal Reserve chairman Jerome Powell offered his thoughts on the cryptocurrency industry at a Tuesday Senate Banking Committee meeting.
He hoped the Web3 technology could feature “productive innovation that makes lives better” and that the Fed did not want to “stifle innovation.”
In his statement, he said,
“We have to be open to the idea that – somewhere in there – there is technology that can be featured in productive innovation that makes people’s lives better […] We don’t want to stifle innovation.”
Powell and the Crypto Space
The news comes after Powell discussed concerns over the cryptocurrency industry in his two-day testimony, which is set to continue up to Wednesday.
He added that the Fed had seen a “remarkable set of events in the crypto space” and “quite a lot of turmoil” over the last year due to multiple fraud and bankruptcy cases.
He added: “We see in crypto activity lots of things that suggest that regulated financial institutions should be quite cautious in doing things in the crypto space.”
The news comes as banking regulators in the US have cracked down on cryptocurrency firms such as now-defunct crypto exchange FTX, Voyager Digital, Genesis, and Terra/Luna, among others.
Additionally, Silvergate Bank proved risky to the crypto and banking industries after regulators found it had facilitated transactions for FTX days before the latter collapsed into bankruptcy.
A Workable Framework?
Speaking further, Powell called for a “workable legal framework” for US digital assets, adding,
“People are going to assume when they deal with something that looks like a money market fund that that has the same regulation as a money market fund or a bank deposit. So stablecoins need some attention in that respect.”
Concluding, he said that stablecoins could continue in the financial sector with “appropriate regulation.” Ha added that there were “real concerns about permissionless public blockchain” which were “so susceptible to fraud, to money laundering and all of those things.”
The United States’ first nuclear Bitcoin mining plant, the Nautilus Cryptomine, is now home to TeraWulf (WULF) cryptocurrency mining operations.
It currently has 8,000 functioning mining rigs operating at 1.0 exahashes per second (EH/s), it said in a press release on Monday.
TeraWulf hopes to have a further 8,000 machines over the next few weeks to boost capacity to 1.9 EH/s, it added.
The company added it had energised around half of its 50-megawatt stake in the Cryptomine facility in a joint venture with Cumulus Coin LLC.
The Nautilus Cryptomine is set to slash TeraWulf energy costs. According to the statement, the latter secured a 2 cents per kilowatt hour (kWh) deal with the facility for five years.
This aims to cut energy consumption costs to around 4 cents per kWh at its two locations. TeraWulf typically pays 5 cents per kWh at its New York site.
Nuclear-Backed Bitcoin?
The news comes as the mining enterprise faced several issues in recent months such as plummeting crypto prices and higher energy costs.
TeraWulf chairman and chief executive Paul Prager said that roughly 16,000 company miners representing 1.9 EH/s of self-mining capacity were “onsite and being brought online daily.
He concluded,
“The Nautilus nuclear-powered mining facility benefits from what is arguably the lowest cost power in the sector, just $0.02/kWh for a term of five years […] We look forward to continuing to work alongside Cumulus Coin as the Nautilus facility increases operational hash rate in the coming weeks.”
Cryptocurrency automatic teller machines (ATMs) have plummeted in numbers since the start of the year. Fresh reports have found that the number of functioning ATMs has been slashed by 412 units.
The news comes amid an uptake of new crypto ATM machines across the world, with nearly 1,000 new units installed each month globally from December 2020 to January 2022. However, these numbers have declined significantly due to the ongoing bear market.
In September last year, crypto cashpoints nosedived, followed by record lows in January and February. January saw a drop of 289 ATM machines and an additional fall of 123 machines last month.
Other factors such as BitAccess software are competing with crypto ATM machines. This works by reducing operating costs of physical devices and software licencing fees, saving roughly $3 million USD each year.
The news comes after numerous countries began deploying ATMs nationwide, with the United States, Canada, and Spain topping the global list. The three nations have installed 33952, 2649, and 273 machines, respectively.
Despite regulatory crackdowns on cryptocurrency platforms, authorities have also begun cracking down on ATMs operating illegally. In the United Kingdom, police have tackled ATMs operating without licencing across Leeds and Yorkshire. This has also reduced the number of operational ATMs in the country as the nation pushes for central bank digital currencies (CBDCs) and regulatory frameworks.
Bitcoin watchers have seen the cryptocurrency jump to roughly $25,000 after the crypto market capitalisation reached $1.17 trillion, reports showed.
The price of the cryptocurrency king hit $24,500, a 12.4 percent increase from last week. Ethereum, the second-biggest digital currency by market capitalisation, topped $1,689 USD, an 11.7 percent spike from last week.
Additional virtual currencies rose along with BTC, with Solana, Polkadot, and Polygon gaining 20 percent, 19 percent, and 18.5 percent, respectively.
One user stated that BTC could potentially reach $27,000 USD shortly with a candle formation.
Degen Ape Trader said at the time: WIf this red line get smashed. We may see a $btc god candle to 27k area in a short time. Basically no resistance till 27-28k for #btcusdt after 25250.”
Crypto Market Triggers
The news comes after massive fluctuations took place due to US Federal Reserve and Securities and Exchange Commission disruptions in the crypto economy.
According to reports, Bitcoin hovered earlier this month around $23,000 USD after the Fed launched several interest rate hikes to tackle ongoing monetary inflation.
Additional concerns with the SEC lawsuit against cryptocurrency giant Binance, whom the regulatory body accused of selling crypto-related securities. News of the litigation, linked to Paxos-minted Binance USD (BUSD), triggered massive net outflows of roughly $831 million USD at the time.
Dubai, UAE, 17th February, 2023, Chainwire
The 10th Global Forum on blockchain, cryptocurrencies and mining – Blockchain Life 2023 takes place on February 27–28 in Dubai.
The event is attended by key industry players, government representatives, heads of international companies and funds, investors, promising startups teams and beginners. It’s noteworthy that the Forum is a meeting point for a premium crypto audience including world Crypto Whales.
What to expect?
- Whales of the crypto industry at one place
- Top speakers with world-changing insights and analytics
- Global expo of the latest Web 3.0 technologies
- Breakthrough smart networking app
- The legendary AfterParty on the luxury yacht trip
Top speakers:
- Yat Siu – Co-Founder and Executive Chairman of Animoca Brands, Founder and CEO of Outblaze
- Sergei Khitrov – Founder of Listing.Help and Jets.Capital
- Ben Zhou – Co-founder and CEO of Bybit
- Dr. Marwan Alzarouni – CEO of Dubai Blockchain Center
- Carl Runefelt – Crypto Entrepreneur, Founder Of CryptoJobs.com
- Chris MMCrypto – Cryptocurrency Expert, Co-Founder of MMCrypto
- Gabriel Abed – Ambassador of Barbados to the UAE
- Dr. Mohamed Al Hemairy – Director of Technology Transfer Office at University of Sharjah, Blockchain & Crypto Advisor
- Manan Shah – Founder and CEO of Avalance Global Solutions and CyBirb
- Gracy Chen – Managing Director of Bitget
Where and when?
February 27 – 28, Dubai, Atlantis the Palm.
Buy a ticket with a 10% discount now using promo code 2023 here.
Contact
Media manager
Andrey Tretyakov
Blockchain Life
infopartners@blockchain-life.com
The Financial Conduct Authority has launched a crackdown on suspected illegal cryptocurrency cashpoints across Leeds.
The crypto machines are not registered with the FCA to operate in the country, it said in a recent press statement. It added that it worked with authorities such as the local police to remove the machines.
Despite this, the FCA does register services for buying digital assets on an app or bank transfer service, where customers can withdraw funds from cashpoint ATMs.
According to a Whitehall report, cybercriminals used the machines as “money mules” to launder money.
Comments on Crypto Cash Machines
Det Sgt Lindsey Brants, Head of the West Yorkshire Police Force Cyber Team, said in a statement:
“Having conducted intelligence-gathering work across West Yorkshire, we soon established the locations of several live crypto ATMs […] We are pleased to be able to work in partnership with the FCA in what we believe is a national first here in West Yorkshire.”
Authorities warned crypto machine operators to stop using the devices, adding that money laundering breaches would trigger investigations, with the FCA receiving updates. Crypto operators facing charges could receive up to two years in prison.
Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, said:
‘Unregistered Crypto ATMs operating in the UK are doing so illegally. We will continue to identify and disrupt unregistered crypto businesses operating in the UK. Crypto businesses operating in the UK need to be registered with the FCA for anti-money laundering purposes.
Steward added that crypto products were “currently unregulated and high-risk, and you should be prepared to lose all of your money if you invest in them.”
A key exec from the US Federal Reserve warned investors this week that cryptocurrency prices could plummet to zero in the future.
Fed governor Christopher J Waller said in a recent speech at the Global Interdependence Center:
“To me, a crypto asset is nothing more than a speculative asset, like a baseball card. If people believe others will buy it from them in the future at a positive price, then it will trade at a positive price today. If not, its price will go to zero.”
He continued: “If people want to hold such an asset, then go for it. I wouldn’t do it, but I don’t collect baseball cards, either […] If you buy crypto assets and the price goes to zero at some point, please don’t be surprised and don’t expect taxpayers to socialize your losses.”
Waller continued, explaining that several major “crypto-related firms,” which included “payment platforms, exchanges, crypto lenders, and hedge funds” had filed for bankruptcy. He added that retail and institutional investors faced difficulties due to the ongoing crypto winter.
He also criticised banks and other financial institutions facilitating cryptocurrency trading. He stated such organisations backing crypto transactions presented “a heightened risk of fraud and scams, legal uncertainties, and the prevalence of inaccurate and misleading financial disclosures.”
Waller later urged that banks joining cryptocurrency trading programmes should meet Know Your Customer (KYC) and anti-money laundering obligations.
He concluded that “spillovers” across the financial system had been “minimal.”
Fed Comments on Bank-Crypto Collaborations
The news comes after Michael Barr, Federal Reserve vice chairman of supervision, warned banks accepting cryptocurrency deposits should remain aware of increased liquidity risks.
In a speech in October, he said the Fed was working with regulatory groups to note risks to crypto-backing banks across the financial industry.
Barr stated at the time: “The recent volatility in crypto markets has demonstrated the extent of centralization and interconnectedness among crypto-asset companies, which contributes to amplified stress. While banks were not directly exposed to losses from these events, these episodes have highlighted potential risks for banking organizations.”
Swanage, United Kingdom, 14th February, 2023, Chainwire
UK-based PEGA Pool announces the official launch of its eco-friendly Bitcoin mining pool that enables clients to offset their carbon footprint and incentivizes them to use renewable energy. By allowing clients to connect their ASIC miners to its platform and mine together, it provides them with a more consistent and attractive income than mining alone.
PEGA Pool is one of the world’s top 10 largest Bitcoin mining pools, according to BTC.com. With the growing adoption of Bitcoin, the Proof-of-Work mining operations have received a lot of criticism from individuals, corporations, and governments over the industry’s fossil fuel consumption. Countries such as China have banned crypto mining due to its negative environmental impacts. As a result, the industry is witnessing a spike in demand for sustainable mining options.
PEGA Pool’s mission to create a more sustainable industry began with its parent company PEGA Mining Ltd, which uses only renewable energy for its mining operations, demonstrating that large-scale Bitcoin mining with green energy alone is absolutely possible.
David Bungay, CEO of PEGA Pool, said, “I am very excited to announce the official launch of PEGA Pool, our British Eco-Friendly Bitcoin Mining Pool. Our journey began with PEGA Mining which gave us the desire to build PEGA Pool and provide the world with what was missing in our industry. We built PEGA Pool so that we could not only offer our clients a top-performing trustworthy mining pool but also provide them with an incentive to change the industry for the better and follow in our green footsteps.”
PEGA Pool offers an aggressive payout structure with a competitive Full-Pay-Per-Share (FPPS) model that incentivizes miners to switch to renewable energy sources. It is one of the highest paying Bitcoin mining pools for revenue per TH (Terahash). The platform is open to all Bitcoin mining clients, irrespective of what energy source they use.
Clients mining with renewable energy pay 50% lower pool fees. It not only rewards miners making a positive impact on the environment, but also encourages others to use renewable energy.
For those mining with fossil fuel sources, PEGA Pool uses a portion of their pool fees to plant trees in order to partially offset their carbon footprint. It has already planted over 148,000 trees, resulting in a yearly offset of 3,967 tons of CO2. This initiative gives miners the peace of mind that PEGA Pool is planting trees on their behalf to help offset their carbon emissions.
Currently, with the Bitcoin price low and mining difficulty rising, miners are finding it difficult to generate profits. With PEGA Pool, they benefit from the reduced pool fees, which can make a noticeable difference in their profitability. It ensures that miners can stay afloat even during the bear market.
PEGA Pool’s unique Global Pool Infrastructure ensures that it is resilient to outages and equipment issues, including those caused by natural disasters. Established and operating in the UK, the platform offers the world a trustworthy and reliable mining pool that was built by miners themselves.
About PEGA Pool
PEGA Pool is a UK-based, eco-friendly Bitcoin mining pool which enables clients to obtain a more consistent, stable income than they would mining alone whilst offsetting their carbon emissions. The platform is open to all Bitcoin miners, regardless of whether they use renewable or non-renewable energy.
For more information, visit: Website | Twitter | LinkedIn
Contact
Magda Lesniowska
marketing@pega-pool.com
A prominent cryptocurrency investor has stated that Bitcoin (BTC) and rising altcoins are sound purchases.
Arthur Hayes wrote in a blog post that his previous risk-averse position on cryptocurrency investments had changed and he had become more bullish on some BTC purchases.
JAYPOW is up to speak today. He ain’t ready to stop the bull market. “Be Present” is my essay on why I have started to buy $BTC. Yaaaarrrr!!!!https://t.co/SzwusFRSI5 pic.twitter.com/2iZtuAFU19
— Arthur Hayes (@CryptoHayes) February 7, 2023
He stated that ongoing economic issues at the United States Federal Reserve forced him to avoid risky assets. Federal rate hikes aimed at slowing rampant inflation have triggered rises in cryptocurrency investment activity, he stated.
The BitMEX co-founder said in his post,
“My concerns about this potential outcome, which I handicapped would most likely happen later in 2023, has led me to keep my spare capital in money market funds and short-dated U.S. Treasury bills. As such, the portion of my liquid capital that I intend to eventually use to purchase crypto is missing out on the current monster rally we’re seeing off of the local lows. Bitcoin has rallied close to 50% from the $16,000 lows we saw around the FTX fallout.”
He also predicted that Bitcoin would see additional rises in valuation after 40 percent climb in January.
Liquidity Returns, Debt Ceiling Looms
Despite this, Federal Reserve measures come amid quantitative tightening to remove liquidity from US markets and diminished risk assets. However, the first fiscal half of 2023 will see liquidity return to markets to avoid triggering a debt ceiling crisis, which lawmakers will vote on in the summer, he explained
Treasury General Account (TGA) will eliminate roughly $500 billion USD in cash, which will effectively counteract the Fed’s $100 billion monthly liquidity removals.
He continued: “The TGA will be exhausted sometime in the middle of the year. Immediately following its exhaustion, there will be a political circus in the U.S. around raising the debt limit. Given that the Western-led fiat financial system would collapse overnight if the US government decided to forgo raising the debt ceiling and instead defaulted on the assets that underpin said system, it’s safe to assume the debt ceiling will be raised.”
Time to (Macro) Unwind
Hayes added that he would mostly invest in USD and Bitcoin but would require sufficient timing.
He added: “I’ll deploy over the coming days. I wish my size actually mattered, but it doesn’t — so please don’t think that when this happens, it will have any discernible effect on the price of the orange coin.”
Additionally, altcoins offered opportunities, relying on optimal timing to receive the highest returns.
He concluded: “The key to shitcoining is understanding they go up and down in waves. First, the crypto reserve assets rally — that is, Bitcoin and Ether. The rally in these stalwarts eventually stalls, and then prices fall slightly […] “At the same time, the shitcoin complex stages an aggressive rally. Then shitcoins rediscover gravity, and interest shifts back to Bitcoin and Ether. And this stair-stepping process continues until the secular bull market ends.”
The news comes amid a tumultuous February as Bitcoin surged after the US revealed strong jobs data and modest growth for 2022.
The digital coin skyrocketed past $23,000, indicating the first massive rally since 2020. It also retained its value of around $23,000 amid several interest rate hikes at 25 base-points interest each.