Strengths
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was FTT, rising 59.51%.
- PayPal Holdings completed its first business payment using its proprietary stablecoin to demonstrate how digital currencies can be used to improve often-clunky commercial transactions. As reported by Bloomberg, PayPal paid an invoice to Ernst & Young LLP on September 23 using PYUSD, the stablecoin the firm launched last year.
- Bitcoin miner TeraWulf has sold its 25% equity interest in a Nuclear-powered Bitcoin mining facility for approximately $92 million, reports Bloomberg, as it seeks to fund the expansion of high-performance computing and AI data center hosting services.
Weaknesses
- Of the cryptocurrencies tracked by CoinMarketCap, the worst performing for the week was Notcoin, down 27%.
- Bitcoin exchange-traded funds in the U.S. saw outflows of $242.6 million on Tuesday in their worst day since September 3. The outflows snapped an eight-day streak of inflows as BTC lost as much as 6% amid an acute sharpening of tensions in the Middle East, writes Bloomberg.
- Bitcoin mining companies saw a key measure of profitability reach the lowest point in recent record during September, according to JPMorgan Chase. Daily block reward gross profit declined 6% month-over-month in September, writes Bloomberg, reaching the lowest point on recent record.
Opportunities
- Visa is launching a platform for banks to issue fiat-backed tokens such as stablecoins and tokenized deposits, as more financial institutions and businesses express interest in how cryptocurrencies and blockchain technology can improve their operations. The product, which will be known as the Visa Tokenized Asset Platform (VTAP), will allow banks to “mint, burn and transfer” tokens, writes Bloomberg.
- The FTX estate is set to auction 22.3 million locked Worldcoin tokens, currently valued at around $37.7 million, at a significant discount, three sources with direct knowledge of the matter told The Block. The sale is part of the estate’s ongoing effort to recover funds for creditors.
- Geopolitical tensions and the upcoming U.S. presidential election will likely underpin the ‘debasement trade’ and this favors both bitcoin and gold, JPMorgan said in a research report.
Threats
- Futures tied to major tokens saw over $450 million in long liquidations in the past 24 hours as bitcoin plunged, leading to losses among major tokens. CoinGlass data shows that bitcoin traders betting on higher prices lost over $122 million while bets on ether lost nearly $100 million. Smaller alternative tokens recorded over $85 million in liquidations, Bloomberg reports.
- Bitcoin fell by the most in almost a month as riskier assets slumped while the conflict in the Middle East escalated, undercutting the argument that the digital asset is a refuge. Cryptocurrencies slumped alongside equities as investors retreated to safer corners of the market, according to Bloomberg.
- Coinbase will delist all unauthorized stablecoins from its crypto exchange in the European Economic area by year-end. The EU is set to fully implement new rules to oversee the crypto industry, known as MiCA, by the end of this year, Bloomberg reports.
