The first week of June is typically when many long-term holders tend to cash out with a sigh and exclaim that the top cryptocurrencies are finally starting to dip. But no, Hodler’s Digest says! This year has been one for the record books so far, even though sentiment has reached an all-time low.
Every Saturday, Hodler’s Digest will keep you up to date on all of the major news stories from the previous week. A week on Cointelegraph in one link: the finest (and worse) remarks, adoption and regulatory highlights, top currencies, forecasts, and much more.
This Week’s Top Stories
What does it imply for crypto if the Fed’s money printer goes backwards?
The US Federal Reserve has inundated the financial system with extra liquidity in the past two years or so, benefitting equities, crypto, and other sectors. In order to prevent inflation, the Fed is now moving in the other direction. The central bank has initiated the process of quantitative tightening in addition to hiking interest rates (QT). It’s unclear how the crypto markets will react to the Fed’s QT measures, but the short-term prognosis for risk assets isn’t promising.
The CFTC has filed a lawsuit against Gemini, alleging that the cryptocurrency exchange misrepresented during the examination of futures contracts.
Gemini, a cryptocurrency exchange based in the United States, is being investigated by the Commodity Futures Trading Commission (CFTC) for suspected conduct going back to 2017. The CFTC claims that Gemini behaved dishonestly in 2017 when it attempted to add Bitcoin futures trading contracts to its portfolio. According to the commission, Gemini was dishonest throughout the assessment process.
In reaction to the complaint, Gemini told Cointelegraph, “Gemini has been a pioneer and proponent of sensible regulation from day one.” “We’ve had an eight-year track record of requesting permission rather than forgiveness and always doing the right thing.” We are looking forward to establishing this in court.”
Shenzhen distributes $30 million in free digital yuan to encourage consumer spending.
As part of an airdrop, residents of Shenzhen might get some of China’s central bank’s digital money, the e-CNY. Shenzhen is collaborating with one of China’s most popular food delivery apps to provide 30 million e-CNY in a lottery-style promotion to app users. The e-CNY is accepted as a means of payment by at least 15,000 in-app merchant portals. China has followed a severe COVID limitation strategy, which has resulted in economic issues. The goal of the airdrop is to increase consumer spending and re-energize the economy.
The South Korean government joins the Metaverse as an early investor.
In recent weeks, South Korea has generated multiple crypto-related headlines, ranging from its interest in crypto legislation to its recent investment in the Metaverse. As part of its “Digital New Deal” policy, the nation wants to invest $177 million in the Metaverse. The funds will be used to create a Metaverse platform that promotes government services for residents, as well as other Metaverse initiatives. In terms of government Metaverse interest, this investment establishes South Korea as a worldwide leader.
Japan introduces legislation restricting the issue of stablecoins to banks and trust corporations.
Only licensed banks and registered money transfer providers will be permitted to create stablecoins, according to a new Japanese law set to take effect in 2023. Given the rising popularity of stablecoins, the law attempts to offer further safety. Japan’s intention to regulate stablecoins comes during a crypto bear market that has seen asset values tumble and a prominent stablecoin, TerraUSD Classic, go down in flames (USTC).
Losers and Winners
Bitcoin (BTC) is at $29,540, Ether (ETH) is at $1,750, and XRP is at At the end of the week, Bitcoin (BTC) is at $29,540, Ether (ETH) at $1,750 and XRP at $0.38. The total market cap is at $1.21 trillion, according to CoinMarketCap..38 at the conclusion of the week. According to CoinMarketCap, the overall market cap is $1.21 trillion.
Waves (WAVES), Cardano (ADA), and Helium (HNT) are the top three altcoin gainers this week among the top 100 cryptocurrencies, with gains of 114.63 percent, 24.19 percent, and 22.49 percent, respectively.
Convex Finance (CVX), Solana (SOL), and 1inch Network (1INCH) are the top three cryptocurrency losses this week, with -7.51 percent, -6.93 percent, and -3.40 percent, respectively.
Read Cointelegraph’s market analysis for more information on crypto pricing.
The Most Memorable Quotes
“In 30 or 50 years, we may literally see the whole global economy functioning on the blockchain.”
Andreessen Horowitz co-founder Marc Andreessen (a16z)
“If correctly maintained, algorithmic stablecoins should theoretically function,” says the author.
Binance CEO Changpeng “CZ” Zhao
“How are we going to minimize wealth disparity when our regulatory structure is based on financial discrimination?” It’s time to end advisers’ exploitation of the ‘Sophisticated Investor’ discriminatory standards and provide everyone access to financial advice and services.”
Blockchain Assets’ CEO and founder, Ian Love
“We’ve altered our minds on mining and now allow Bitcoin to be used in international commerce and outside the country.”
Ksenia Yudaeva is the first deputy governor of the Russian Central Bank.
“I don’t believe we live in a world with just one chain.”
Ripple Labs CEO Brad Garlinghouse
“There are far too many general-purpose blockchains that are basically competing with Ethereum (and each other) in a fee war.” There are only so many of them that can live.”
Koinos Group CEO Andrew Levine
The Week’s Prediction
Bitcoin may reach $14,500 in 2022, but purchasing BTC today is “as good as it gets”: Analyst
According to Cointelegraph’s BTC price index, Bitcoin charts saw some good swings throughout the earlier part of this week to wrap out May, but June brought back sub-$30,000 price activity.
The commodity might experience a macro price bottom in the next half-year, according to pseudonymous Twitter user and CryptoQuant contributor Venturefounder, who used previous BTC price data as a background in keeping with Bitcoin’s halving cycle (approximately four years). The expert said in a Twitter thread that Bitcoin might reach a depth of $14,000 to $21,000. The research includes comparisons to 2018, the peak year of the last crypto bear market. The present price activity corresponds to previous Bitcoin cycles.
The Week’s FUD
Investors are fleeing Terra as the price of LUNA 2 plummets 70% in two days.
Terra 2.0 and its linked LUNA 2.0 asset were issued on May 28 in the wake of the Terra ecosystem’s collapse, with the token’s price plummeting dramatically following the announcement. The distribution of LUNA 2.0 to specific members of the former Terra ecosystem was part of Terraform Labs CEO Do Kwon’s recovery strategy. Binance stated a day later that it had completed its maiden airdrop of the new LUNA coins to a select group of users. LUNA 2.0 surged in price from $5.71 to $9.25 between the time of Cointelegraph’s Monday post (mentioned above) and the publication of the Binance airdrop piece on Tuesday.
The New York State Senate has passed a ban on Bitcoin mining.
Additional proof-of-work (PoW) mining activities in New York may be halted for two years awaiting clearance from the state’s governor. The New York State Senate enacted a law temporarily barring new PoW mining operations as well as license renewals for present players. The measure does include an exemption for new PoW mining players that solely utilize sustainable energy for their operations.
Insider trading charges have been filed against a former product manager at OpenSea.
Nathaniel Chastain, a former employee of OpenSea, has been charged with insider trading, wire fraud, and money laundering. Chastain reportedly traded multiple NFTs based on non-public information while working as a product manager for the NFT exchange. His role allegedly enabled him to influence which NFTs were highlighted on the platform’s main page, which he subsequently exploited to his advantage. According to OpenSea, Chastain resigned from his position at the company after the company demanded his departure after uncovering the wrongdoing. The discovery increases the possibility of NFTs being classified as securities.
Cointelegraph’s Best Features
NFTs may now be cloned as ‘Mimics’: This is what it means:
“I believe I’ve just shattered the NFT market.”
Scott Melker on overcoming the odds with cryptocurrency trading
“It’s a numbers game where you take modest loses in exchange for enormous winnings.”
Cryptography’s anonymous culture may be dwindling.
Despite the fact that anonymous teams have constructed some of the most advanced crypto infrastructure, many newcomers to the ecosystem are utilizing their actual names.