The ‘Crypto’ market has started to recuperate with $BTC rising back above the 20k level. The cryptocurrency business is thriving, but there are a lot of things happening, including ECBs raising the rates by 75 basis points to tackle rising Inflation, Dogecoin being mentioned multiple times in a recent White House Report, Terra Classic ($Lunc) price pumping and much more!
In this issue:
- Bitcoin Holds firmly as European Central Bank raises rates by 75 basis points to tackle soaring inflation.
- Dogecoin Mentioned 20 Times in Recent White House Report.
- Terra Classic ($Lunc) price has soared by 250% in September.
- Fidelity to launch Bitcoin retail trading in November.
- MicroStrategy plans to reinvest $500M stock sales into Bitcoin: SEC filing.
- SEBA Bank Enables Ether Staking as Ethereum merge nears.
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Bitcoin Holds firmly as European Central Bank raises rates by 75 basis points to tackle soaring inflation.
The European Central Bank on September 6th announced a 75 basis point interest rate rise, taking its benchmark deposit rate to 0.75%.
This major step frontloads the transition from the prevailing highly accommodative level of policy rates towards levels that will ensure the timely return of inflation to the ECB’s 2% medium-term target,” it said in a statement. The Central Bank added it “expects to raise interest rates further because inflation remains far too high and is likely to stay above target for an extended period.
“It revised its inflation expectations, forecasting an average of 8.1% in 2022, 5.5% in 2023, and 2.3% in 2024.”
The market appeared unruffled as $BTC saw a 1% swing to the downside. Meanwhile, European Indices witnessed slight sell-offs.
Dogecoin Mentioned 20 Times in Recent White House Report.
Dogecoin($DOGE), which originally started as a joke cryptocurrency, has continued to grow in popularity among investors and top government officials.
In a recent report, ‘Crypto Assets And Climate’ published by the White House Office of Science and Technology Policy, Dogecoin appeared a total of 20 times, suggesting that government officials are fully aware of the meme coin. Although the report was published to curtail the impact of cryptocurrency mining on the environment, it is still commendable that Dogecoin is recognized among the top mining crypto assets with the largest market capitalization.
“According to a published study, in 2021, U.S. electricity generation for mining crypto-assets with the largest market capitalizations (Bitcoin, Ethereum, and Dogecoin) generated GHGs at a rate of approximately 15 Mt CO2/year,” an excerpt of the report reads.”
$DOGE is currently trading at $0.63.
Terra Classic ($Lunc) price has soared by 250% in September.
$LUNC surged more than 250% to reach $0.000594 on September 8, its best level on record.
A new staking service went live on the Terra Classic chain on August 27, serving as the first major cue behind the ongoing $LUNC price rally.
According to LuncStaking_Bot (LuncStaking_Bot), users have staked more than 610 billion LUNC with Terra Classic against its net supply of 6.9 trillion units. In other words, nearly 9% of the total LUNC supply has been removed from circulation.
Data from Staking Rewards show that staking Terra Classic is returning users with an annualized yield of 37.8%, among the highest payout in the crypto industry. The higher returns could have played a key role in boosting LUNC demand, prompting the token’s price to rise by more than 450% since the staking service launch, as shown in the chart below.
In addition to staking, Terra Classic developers have also introduced a token-burning mechanism to boost LUNC’s scarcity.
Terra Classic community suggested a recent proposal to ‘BURN’ 1.2% of all $LUNC transactions. This proposal has been successfully passed with an overwhelming 83% ‘Yes’ vote. (Burning coins essentially takes them out of circulation, which reduces supply. This can increase the value of the remaining coins or tokens.)
Major centralized exchanges have accepted the 1.2% tax burn proposal, including Binance.
Fidelity to launch Bitcoin retail trading in November.
Fidelity Investments plans to launch bitcoin trading for retail customers on its brokerage platform, according to a report from the Wall Street Journal.
Fidelity has offered institutional clients Bitcoin services since 2018, but the investment manager is now bringing retail on board. Fidelity Investment Managers will offer retail customers Bitcoin trading from November.
Fidelity is set to launch bitcoin trading for retail investors through its brokerage customers, according to reports.
The investment firm already offers exchange-traded products geared towards crypto, digital payments, and the metaverse.
The trillion-dollar asset manager will make its latest play in crypto by allowing users to buy bitcoin through its platform, sources with familiarity with the matter told WSJ. The firm launched its bitcoin-trading business for institutional investors and hedge funds in 2018, and just over two years ago, Fidelity launched its bitcoin index fund, which crossed $125 million in investments in May.
MicroStrategy plans to reinvest $500M stock sales into Bitcoin: SEC filing.
Buying the dip is essential for MicroStrategy as the company’s reserve of nearly 129,699 BTC currently suffers an aggregated value loss of over $1 billion.
MicroStrategy, the largest institutional Bitcoin (BTC) buyer, entered an agreement with two agents: Cowen and Company and BTIG to sell its aggregated class A common stock worth $500,000,000, reveals United States Securities and Exchange Commission (SEC) filing.
MicroStrategy co-founded by Michael Saylor, amassed approximately 129,699 BTC over several years at an aggregate purchase price of $3.977 billion. Despite market uncertainties, the business analytics software firm continues to pursue its goal of acquiring more BTC by selling company stocks.
The filing confirmed:
“We intend to use the net proceeds from the sale of any class A common stock offered under this prospectus for general corporate purposes, including the acquisition of Bitcoin, unless otherwise indicated in the applicable prospectus supplement.”
SEBA Bank Enables Ether Staking as Ethereum Merge Nears.
“The launch of our Ethereum staking services will enable institutional investors to play a key role in securing the future of the network,” Mathias Schutz, the bank’s head of technology and client solutions, said in the statement.”
Swiss-regulated crypto platform SEBA Bank has implemented Ether staking services for large clients ahead of the network’s anticipated Merge event later this month. The touted institutional-grade offering allows its users to generate rewards on their ether holdings monthly, the bank said in a statement.
Variable lock-up periods will be instituted post-merge. No staked ether can be withdrawn from Ethereum’s Beacon Chain until after a subsequent network upgrade, dubbed Shanghai, expected in the second quarter of 2023.
The Beacon Chain merging with its Mainnet, on track to trigger around September 15, is one of the most hotly anticipated and significant developments in the project’s history. The event lays the groundwork to increase network scalability and security while reducing its carbon footprint by transitioning to Proof-of-Stake believed to cut energy consumption by more than 99%. A transition to PoS will do away with miners securing the network, instead replaced by validators who put at stake ether for the privilege. Currently, there are around 422,000 validators worldwide, staking 13.5 million ether (or around $20.5 billion at today’s prices).
Those depositing more than 32 ETH (about $48,500) to SEBA will have a validator activated on their behalf, in this case, managed by the bank itself.
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