Strengths
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Injective, rising 47%.
- The Arkansas House of Representatives and Senate have both passed a bill aimed at protecting the local crypto mining activities. Known as the Arkansas Data Centers Act of 2023, the legislation protects crypto miners from discriminatory regulations and taxes with clearer guidelines.
- Cryptocurrency-exposed stocks rose in U.S. trading on Tuesday as Bitcoin traded above $30,000. Among crypto-exposed stocks moving higher were Riot, up 7.5%, Marathon Digital, up 7.4%, MicroStrategy, up 6.5% and Coinbase, up 4.9%.
Weaknesses
- Of the cryptocurrencies tracked by CoinMarketCap, the worst performing for the week was Enjin coin down 11%.
- Venture capitalists are continuing to pull back from crypto, an industry that’s been plagued by scandals, market turndown and regulatory uncertainty. Global venture capital (VC) funding for the industry fell to $2.4 billion in the quarter, an 80% decline from its all-time high of $12.3 billion during the same period last year, writes Bloomberg.
- Reddit users are complaining about the lack of spam or bot prevention amid the launch of the social media platform’s latest non-fungible token (NFT) collection, writes Bloomberg.
Opportunities
- Bitcoin climbed over $30,000 for the first time since June 2022, bolstered by bets on easier monetary policies that have made cryptocurrencies standout performers this year. Bitcoin is now up 82% since December 31, handily beating the Nasdaq 100 tech index’s 19% gain writes Bloomberg.
- Galaxy Digital founder Mike Novogratz said he expects gold, the euro, Bitcoin and Ether to outperform competing investments as the Federal Reserve moves towards easing its interest-rate increases.
- A key developer of the Ethereum blockchain said a widely anticipated software upgrade of crypto’s most important commercial highway had been implemented and that the network was stable. The so-called Shaghai update enables investors to queue up to withdraw Ether coins that they pledge to help operate the network in return for rewards, a process called staking, writes Bloomberg.
Threats
- Decentralized exchange SushiSwap has fallen victim to an exploit which led to the loss of more than $3.3 million from at least one user. The exploit involves the RouterProcessro2 contract.
- The Texas Senate passed a bill that will cap how much Bitcoin miners can participate in demand response programs, under which they get paid to curtail their operations at times of high energy demand. Bill SB 1751 passed the Senate with only one vote against and is now heading to the House. If approved, it will have to be signed into law by Texas Governor Greg Abbott.
- Bitcoin may be at a nine-month high, but El Salvador’s total holdings are still worth 29% less than what the government paid for, writes Bloomberg.
