Welcome to this week’s Crypto market update on The Daily Chain. We are collaborating with NKB Group – a full-service investment bank focused on blockchain technology. These updates will include the top news stories of the week, charts, data and more.
The digital assets market is continuing to grow at a significant pace, with the total market cap last week rising by almost 20%. Bitcoin continued its parabolic move towards $7,550, which is a 9-month high, as BTC’s price grows by 130% since the December lows. The bitcoin rally caused a total of $380m liquidation just on BitMEX, with a new record for daily trading volume of $10bn. Bitcoin is currently hovering around $7k and further consolidation is expected before another leg to test $8k. The rest of the market is following the trend, most notably BCH (+23%), ETH (+16%), and LTC (+16%).
Top News Stories of the Week
Binance Lost 7,000 BTC in Security Breach
Hackers stole $40m (7,000BTC) from the largest crypto exchange Binance, making it the sixth largest hack in crypto exchange history. Binance will use its SAFU fund to cover the hack and all deposits and withdrawals will be suspended for one week.
Bitfinex Reportedly Sold Out its IEO
Bitfinex’s parent company has received $1 billion in hard and soft commitments for its exchange token sale, according to Dong Zhao, founder of DGroup and an OTC trader in China who owns equity in Bitfinex, and who said in a WeChat post on Thursday that “there’s a high possibility Bitfinex will not conduct a public sale” for its token offering called LEO. Zhao told CoinDesk that the exchange has received both hard and soft commitments of $1 billion worth of USDT, the U.S. dollar-pegged cryptocurrency issued by Tether, a company that shares owners and management with Bitfinex.
Facebook Reverses its Policy Banning Crypto Ads
As Facebook continues to ramp up its crypto efforts, the social media giant is rolling back its 2018 banishment of cryptocurrency-related ads from its platform. In a blog post on Wednesday, Facebook said that after listening to feedback and assessing the policy’s effectiveness, the company will “no longer require pre-approval for ads related to blockchain technology, industry news, education or events related to cryptocurrency.” Users are still required to get pre-approval for ads promoting cryptocurrencies, however.
Bitcoin Miners’ Earnings Up 30% in April
Bitcoin miners earned $291m in April, which is an almost 30% increase on March numbers. $14m earnings from fees alone represent a 250% increase, according to Diar Research.
Medici Bank Opens Crypto-Friendly Bank in Puerto Rico
Prince Lorenzo de’ Medici, a descendant of the famed Renaissance-era Italian Medici banking family, has opened a bank in Puerto Rico, which aims to serve traditional clients as well as compliant crypto businesses.
WeChat Bans Crypto Transactions in its Payment Channels
Chinese social-media and payments app WeChat has updated its payment policy, stating that users who engage in crypto trading will have their accounts terminated. The new rule comes into effect at the end of the month, on May 31st. WeChat is supposedly a dominant crypto OTC channel in China, and this policy-change could strain the liquidity pool in the country.
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