Strengths
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Conflux, rising 123.05%.
- The central Bank of the UAE and the Reserve Bank of India signed a memorandum of understanding to collaborate on central bank digital currencies and explore interoperability between the two currencies, reports Bloomberg. The bank's activities will include jointly conducting “proof-of-concept and pilot(s) of bilateral CBDC bridge to facilitate cross-border CBDC transactions of remittances and trade,” the announcement said.
- Bitcoin is on course for one of its biggest weekly gains of recent years, bolstered by wagers on eventual cuts in interest rates, as the token rides out convulsion in the banking sector. Bitcoin is up 21% since Monday. It's had a weekly jump of at least that much only 10 times over the past five years, writes Bloomberg.
Weaknesses
- Of the cryptocurrencies tracked by CoinMarketCap, the worst performing for the week was Maker, down 4.84%.
- The Blockchain Association, a prominent crypto trade group that boasts members such as Circle Internet Financial LLC and Kraken, said that it's digging into allegations that the digital-asset firms are being booted from the U.S. banking system. This includes instances of banks supposedly closing existing accounts or refusing to open new ones, writes Bloomberg.
- A clash involving disgruntled Coinbase Global customers will give the U.S. Supreme Court its first taste of the world of cryptocurrency, foreshadowing future cases that could help define the industry. The justices will hear arguments from Coinbase's efforts to push two lawsuits into arbitration. The joint cases come as higher-stakes fights work their way toward the court, shaping the rights of customers and companies alike, writes Bloomberg.
Opportunities
- A group of investors has set out to raise $100 million for a Bitcoin-focused fund, even as implosions and scandals rock the crypto world. Dubbed the Bitcoin Opportunity Fund, the investment vehicle caters to high-net worth investors looking to diversify into the world's largest cryptocurrency, writes Bloomberg.
- Deribit, the largest Bitcoin and Ether options exchange, plans to launch futures contracts to facilitate Bitcoin volatility trading, writes Bloomberg. The futures can help traders with portfolio hedging, risk management, alpha generation and exploiting market volatility.
- Institutional clients of Coinbase have been contacted by the firm about plans to potentially set up a new crypto-trading platform overseas. The talks with market makers and investment firms touched on the possibility of establishing an alternative venue for global clients, writes Bloomberg.
Threats
- Circle's stablecoin needed about 36 hours to repair its peg with the dollar amid a liquidity panic, reports Bloomberg. Anxious crypto traders began selling USDC so quickly that it lost its peg to the dollar, falling below 85 cents. By Sunday night the token had largely recovered as the market reacted to Circle's statement that it would cover any potential shortfalls and the promise by the government to make all bank depositors whole, writes Bloomberg.
- Binance Holdings is suspending deposit and withdrawal services via bank transfers and card payments for UK customers after its local banking partner stopped providing support for transactions in British pounds. Paysafe said it would stop providing one of its products to Binance customers in the UK citing local regulators' approach to crypto assets, writes Bloomberg.
- Crypto miner Marathon Digital Holdings said it posted a $687 million loss in 2022 because of the more than 60% drop in the price of Bitcoin and soaring energy costs. The company found accounting errors in its annual report after the firm received comments from the U.S. SEC, writes Bloomberg.
