On March 18th, Bitget Wallet, the leading Web3 wallet in Asia, proudly announced the launch of its official ecosystem token, BWB, along with an innovative BWB Points airdrop event. This marks a significant milestone in the platform’s commitment to enhancing user engagement and fostering a vibrant community ecosystem.
According to the announcement, the total supply of BWB tokens is set at 1 billion, with a generous allocation of 5% dedicated to community airdrops. These airdrops will be distributed as BWB points, offering users the future opportunity to exchange points for actual BWB tokens. This strategic move aims to energise the community and boost participation.
To engage its diverse user base, Bitget Wallet has rolled out a six-week airdrop campaign from March 18th to April 28th. This initiative is divided into two main parts: the “Initial Airdrop”, rewarding loyal users, and the “Task Airdrop”, designed for users who complete certain activities. This streamlined approach aims to enhance participation across the board.
For the “Initial Airdrop”, Bitget Wallet looked back and rewarded existing users based on their previous use of the wallet, such as how many assets they held, their swap transactions, and their participation in various activities. It also gave bonus airdrops to users who had used the Swap feature in other well-known Web3 wallets such as MetaMask, Trust Wallet, and Coinbase Wallet. Additionally, new users who download the Bitget Wallet App during the campaign will receive an airdrop of 50 BWB points.
On the “Task Airdrop”, all Bitget Wallet users have the opportunity to earn BWB points by completing specific tasks. These include keeping assets in the wallet, conducting swap transactions, and inviting friends. Each task offers a different number of points, allowing users to gather points every day.
Speaking about BWB’s future, Bitget Wallet’s COO, Alvin Kan shared, “We are eagerly anticipating the official release of BWB tokens in the second quarter of 2024, which will empower users to convert their accrued BWB points into tokens. It’s important to us that BWB serves as a key to unlocking exclusive benefits for its holders, offering them a voice in community governance, access to ecosystem airdrops, and a dividend in the rewards driven by the growth of Bitget Wallet.”
With over five years under its belt, Bitget Wallet has navigated through several market cycles, capitalising on the rise of DeFi and the mainstreaming of Web3. This strategic navigation has spurred rapid growth in its user base, now exceeding 19 million globally, positioning Bitget Wallet as the largest Web3 wallet in Asia and one of the top five globally.
The wallet’s journey of innovation and growth was further propelled by a US$15 million Series A financing round led by Dragonfly. This milestone was followed by a significant acquisition in 2023 by Bitget, one of the top ten global centralised exchanges and top five derivatives exchanges, at a valuation of US$300 million. This acquisition not only came with a US$30 million investment but also marked a pivotal brand upgrade for Bitget Wallet. Today, anchored in the Bitget Group’s ecosystem, Bitget Wallet plays a crucial role as the gateway to decentralised ecosystems. The upcoming BWB token will thus serve not only as Bitget Wallet’s core asset but also as a fundamental asset and Web3 equity certificate across the Bitget decentralised ecosystem, bridging practical use cases within Bitget Wallet and broader ecosystem engagement.
As the industry shifts towards decentralised asset management and trading, the narrative is also evolving towards a focus on community-driven stories, with Web3 wallets emerging as leaders in this space. Over the years, Bitget Wallet has refined the standards for Web3 wallet products, being the first to offer a full-chain perspective, aggregate DEX prices across all-chains, facilitate seamless cross-chain transactions, and launch an NFT marketplace and Launchpad platform.
Bitget Wallet has evolved beyond a multifunctional Web3 wallet to become a comprehensive platform encompassing a DEX aggregator, NFT marketplace, market analytics tool, Launchpad platform, inscription portal, and a Web3 task platform. This breadth of features and exemplary user experience are the pillars of Bitget Wallet’s competitive edge.
Another cornerstone of Bitget Wallet’s success is its ability to unveil the latest assets and investment opportunities, enabling users to maximise their earnings through innovative product features and strategic operations.
Focusing on new assets and earning opportunities, Bitget Wallet has consistently centered its development around these themes, embedding them into nearly every key feature to ensure users have access to fresh opportunities and enhanced wealth potential.
Bitget Wallet’s unmatched support spans more than 100 major blockchains and numerous EVM-compatible networks, facilitating a seamless Web3 experience. Users can effortlessly manage assets, trade tokens, engage with NFTs, and explore DApps.
At the heart of the wallet, Bitget Swap stands out by supporting multi-chain transactions across more than 40 networks, aggregating data from hundreds of DEXs and cross-chain bridges, and offering an extensive selection of tokens paired with innovative features like gas-free transactions and automatic slippage adjustments. Additionally, its intelligent market analysis tools provide users with real-time insights, helping them make informed trading decisions.
To further enhance user earnings, Bitget Wallet has introduced a comprehensive portal featuring Task2Get, Fair Launchpool, and Invite2Get, among others, providing users with a rich array of rewarding tasks and airdrop activities.
Security is paramount for Bitget Wallet, which has established the GetShield security system to safeguard every transaction and interaction. This system addresses a range of security challenges, including on-chain phishing and fraud, through comprehensive measures such as risk token detection, contract analysis, and more. Additionally, Bitget Wallet benefits from a shared $300 million risk protection fund with Bitget, bolstering its risk mitigation capabilities.
Looking ahead, Alvin elaborated, “The launch of BWB marks a new beginning for us. As we enter this new phase, we’re excited to introduce more innovative products and expand our ecosystem. Our goal with BWB is to bring a billion users into Web3, uncovering new assets and opportunities, and accelerating our journey towards a more community-driven governance model. We want our users to be an integral part of our growth and to share in the successes of Bitget Wallet’s development.”
Learn More At Bitget Academy
Bitget Wallet Ecosystem Token (BWB) Airdrop
From March 18th, 18:00 to April 28th, 2024, 18:00 (UTC+8), you’re invited to participate in our campaign and earn BWB Points. This is your chance to celebrate the launch of BWB with us and discover more ecosystem opportunities.
Securing Your Assets: Bitget Is a Fortress in Crypto Security
Ever wonder how Bitget keeps its platform so secure, especially when we hear about security breaches in the crypto world? Well, it’s all in our savvy use of hot and cold wallets. Dive into what makes Bitget a safe haven for your digital assets.
Multi-Party Computation (MPC), also referred to as secure computation, secure multi-party computation (SMPC), or privacy-preserved computation, is a cryptographic protocol developed in the late 1970s to facilitate secure computational processes without relying on third-party entities for enhanced security measures.
About Bitget Wallet
Bitget Wallet is Asia’s largest and leading global Web3 trading wallet with over 19 million users worldwide. It offers a comprehensive range of features, including asset management, intelligent market data, swap trading, launchpad, inscribing, and DApp browsing. Currently, it supports more than 100 major blockchains, hundreds of EVM-compatible chains, and over 250,000 cryptocurrencies. Bitget Wallet enhances liquidity by aggregating it across hundreds of top DEXs and cross-chain bridges, facilitating seamless trading on over 40 blockchains.
For more information, visit: Website | Twitter | Telegram | Discord
Established in 2018, Bitget is the world’s leading cryptocurrency exchange and Web3 company. Serving over 20 million users in 100+ countries and regions, the Bitget exchange is committed to helping users trade smarter with its pioneering copy trading feature and other trading solutions. Formerly known as BitKeep, Bitget Wallet is a world-class multi-chain crypto wallet that offers an array of comprehensive Web3 solutions and features including wallet functionality, swap, NFT Marketplace, DApp browser, and more. Bitget inspires individuals to embrace crypto through collaborations with credible partners, including legendary Argentinian footballer Lionel Messi and official eSports events organiser PGL.
For more information, visit: Website | Twitter | Telegram | LinkedIn | Discord | Bitget Wallet
For media inquiries, please contact: [email protected]
]]>BITFLEX is a leading cryptocurrency exchange platform and is excited to announce a new update for iOS users-BITFLEX’s iOS app is now accessible through TestFlight!
TestFlight is Apple’s reliable beta app testing platform which lets you test the newest BITFLEX updates directly from source. The reason BITFLEX chose to use TestFlight is because of the recent restrictions placed by Apple Store that makes direct updates impossible. You can be confident that this strategy aims to give platform users flexibility while their hardworking team strives to deliver improved user experience and smooth updates. You need to keep an eye out for the formal release as BITFLEX works to improve your trading experience.
This is an easy to follow guide to help you download and install the BITFLEX iOS app through TestFlight:
See the complete article here for a more thorough explanation and illustrated rundown of the installation procedures.
TestFlight allows you to experience the power and convenience of BITFLEX iOS app. With BITFLEX app at your fingertips, you can stay ahead in the quick paced world of cryptocurrency trading whether you are an experienced trader or are just getting started.
Through TestFlight you can access BITFLEX globally, offering a streamlined download experience. Restrictions, however, might exist in some nations because of legal and compliance obligations. However, the great majority of BITFLEX’s customers worldwide are able to use the iOS app’s full potential without any difficulties. Go here for more information about BITFLEX Platform Access Restricted Territories.
BITFLEX stands as a pioneering force in the cryptocurrency exchange industry, offering a comprehensive platform for traders worldwide. With a focus on security, innovation, and user satisfaction, BITFLEX continues to redefine the standards of crypto trading platforms, empowering users to navigate the dynamic crypto market with confidence.
Experience the enhanced features and tools on the BITFLEX Android app today and join us in shaping the future of cryptocurrency trading.
Website: https://www.bitflex.com
Email: [email protected]
Twitter: https://twitter.com/BITFLEX
LinkedIn: https://www.linkedin.com/company/bitflex
Telegram: https://t.me/Bitflex_Global
Bitcoin has led the crypto market’s move into bull market territory, but it is meme coins that have captured the altcoin zeitgeist, with many investors ignoring the fundamentals in favor of the memes. Welcome to Financial Nihilism.
Memecoins are blockchain-based tokens that are based on popular pieces of internet culture. They are generally characterized by having minimal utility and extreme volatility. If you identify with cute dogs, the edgy Pepe frog, or President Trump, there is a memecoin for your tribe.
Memecoins have been popular with retail crypto investors who see the more affordable unit prices and lower market caps as an opportunity. The lack of fundamentals or a pretense at seriousness is a feature, not a bug. The vast majority of crypto retail investors have no desire to learn about composable privacy, and the esoteric differences between five different layer 2 solutions. But a meme? If there is one thing today’s extremely online retail traders understand, it is the power of a meme.
In past cycles, memecoin rallies have tended to take place at the market top, some analysts say this time is different, and it’s due to a rise in financial nihilism, according to a thesis by Ikigai Fund Manager Travis Kling.
Kling argued that this crypto bull cycle will see an altcoin rally driven by the concept of “financial nihilism” – the idea that cost of living is strangling most Americans; that upward mobility opportunity is out of reach for increasingly more people; that the American Dream is mostly a thing of the past; and that median home prices divided by median income is at a completely untenable level. As a result, the younger generation have turned to gambling, from sports betting to memecoin investing in an attempt to win big.
Bitget VIP Link with BONUS 1000 USDT
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Bitget, the world’s leading cryptocurrency exchange and Web3 company, today unveiled its Monthly Report for February 2024. Demonstrating remarkable growth and resilience, Bitget announced that its user base exceeded 25 million and its platform token BGB breached the US$1 mark in February 2024, amidst a thriving cryptocurrency market, particularly noted for the significant momentum in the crypto market.
In its continuous effort to diversify and enrich trading options, Bitget added 39 new tokens to its platform in February, drawing significant trading interest. This expansion led to exceptional performance among the top five tokens, each seeing price surges of over 1000%. Meanwhile, its platform token BGB increased by 64% and breached the US$1 mark in February, reaching an all-time high of US$1.15.
February also witnessed substantial growth in the AI sector, particularly fueled by the launch of OpenAI’s Sora model, which has significantly advanced AI creativity and captivated the market’s interest. This enthusiasm contributed to a remarkable 400% increase in trading volume in Bitget’s AI zone, reflecting the market’s keen interest in AI-driven advancements.
The appointment of Alvin Kan as Chief Operating Officer (COO) of Bitget Wallet is a strategic move to enhance Bitget’s global growth and innovation. With a rich history of leadership roles at high-profile organisations, Kan is ideally positioned to guide Bitget through its next growth phase.
A Bitget study on investor sentiment revealed strong confidence in the future of the cryptocurrency market, especially in light of the anticipated Bitcoin halving. A significant majority of investors are poised to increase their investments, expecting Bitcoin to reach new all-time highs.
Gracy Chen, Managing Director of Bitget, states: “We are thrilled to witness Bitget’s unprecedented growth of surpassing 25 million users, a clear testament to the trust and confidence the global crypto community places in us. This milestone, coupled with our strategic expansions and innovations underscores our commitment to providing the most dynamic and secure trading environment for our users. As we celebrate this achievement, we remain focused on paving new paths in the crypto and Web3 spaces, driven by our unwavering dedication to market leadership and service excellence. The future looks incredibly bright, and we’re just getting started.”
Established in 2018, Bitget is the world’s leading cryptocurrency exchange and Web3 company. Serving over 25 million users in 100+ countries and regions, the Bitget exchange is committed to helping users trade smarter with its pioneering copy trading feature and other trading solutions. Formerly known as BitKeep, Bitget Wallet is a world-class multi-chain crypto wallet that offers an array of comprehensive Web3 solutions and features including wallet functionality, swap, NFT Marketplace, DApp browser, and more. Bitget inspires individuals to embrace crypto through collaborations with credible partners, including legendary Argentinian footballer Lionel Messi and official eSports events organiser PGL.
For more information, visit: Website | Twitter | Telegram | LinkedIn | Discord | Bitget Wallet
For media inquiries, please contact: [email protected]
]]>
During week 11 BTC turned red for the first time in two weeks, while main stock indices, except the Nasdaq, managed to close in green. This comes despite inflation rising unexpectedly to 3.2% and traders being jittery about the outcome of the FOMC’s meeting next week. On world markets, oil, gold, and silver prices rose despite the dollar index edging above 103.
Overall, traders behaved more rationally this week compared to the previous two weeks, when major stocks and crypto markets continually reached new all-time highs (ATHs). Investors factored in the slow but sure deterioration of economies worldwide as energy and food prices began to appreciate again. Additionally, despite the ongoing rally in “big name” tech stocks, smaller and mid-sized stocks underperformed, leading many analysts to question the validity of the recent bull market.
A similar trend is occurring in the crypto markets, where major coins outperform and reach ATHs, while the vast majority of coins and tokens remain in bear market territory. This situation characterizes the 2024 market as a “golden bull run” driven by hyper-rich institutional and private investors aiming to make the most profitable assets across all markets out of reach for the average capital holder.
Monday
On Monday, the stock market sees mixed performance. The Dow ticks up slightly, while the S&P 500 and Nasdaq dip. A tech sell-off hits Nvidia, AMD, and other tech stocks. However, materials, energy, and consumer stocks rose. Investors anticipate key inflation data before the Fed meeting on March 20. Internationally, Japan managed to avoid entering a recession, and steel prices reached a 9-month low. BTC reached a new ATH at $72.4K, leading the rest of the market, with ETH closing above $4K again. Many altcoins, including XRP (+20%), Litecoin (+17%), Avalanche (+15%), and Algorand (+14%), significantly outperformed the two leading coins.
Details
Consumers inflation expectations stay put at 3% for next year, matching a 3-year low. Gas prices expected to rise slightly, while some sectors like medical care, education, and rent see inflation dip. Long-term inflation outlooks inch up slightly.
Crypto
Bitcoin price skyrockets to a new high above $72K, jumping over 70% this year with its total market cap above $.14 trillion. This surge pushed BTC’s total value above silver’s $1.382 trillion for the first time.
World Markets
Japan barely avoided a recession. GDP grew slightly (0.1%) in Q4, revising previous estimates. Capital spending surged, exports rose, and net trade helped offset weak consumer spending and government cutbacks. Japanese big manufacturers turn gloomy. Business sentiment tumbles (survey index -6.7%) despite economic growth. Concerns over global issues and potential rate hikes weigh on sentiment. Germany’s inflation dips to 2.5% (lowest in 2 years), beating expectations. Food and energy slow down, core inflation steady. Monthly price increase falls short of forecast.
Currencies
China’s currency strengthens (past 7.2 yuan/dollar) on inflation data. Consumer prices unexpectedly rose in February, sparking mixed signals for future stimulus. Producer prices remain low, suggesting economic recovery may be fragile.
Commodities
Steel prices in China drop to a 9-month low (CNY 3.5K/tonne) on worries about weak demand. Imports fall 8.1% year-on-year, while steelmakers ramp up iron ore purchases. Investors wait for China’s loan data to gauge future demand.
Tuesday
On Tuesday, major stock indices rose despite an unexpected inflation increase and a decline in business activity. Internationally, manufacturing output decreased in Brazil and India, while Mexico registered an increase. BTC, ETH, and most of the crypto market corrected, while XRP surged by 20%. MicroStrategy bought 12,000 BTC.
Details
Inflation rose unexpectedly to 3.2% YoY in February (above predictions). Energy slowdown weaker than expected. Food, used cars, and apparel price increases eased compared to January. Transportation costs continued to surge. Monthly inflation ticked up slightly (0.4%).
Core inflation dipped slightly to 3.8% YoY in February (a near 3-year low), but remained above expectations. Shelter costs, a major contributor, slowed down. Prices for recreation and personal care eased, while medical care and auto insurance kept rising. Monthly core inflation stayed flat at 0.4%. Small business confidence dips to a 9-month low (89.4) in February. Inflation replaces labor quality (down to lowest since early 2020) as the top concern for owners.
Crypto
MicroStrategy buys more Bitcoin (12,000) as its price hits a new high. Their total holdings now stand at 205,000 BTC, worth over $14.8 billion. BlackRock’s new Bitcoin ETF (iShares Bitcoin Trust) also holds a significant amount (197,943.2 BTC).
World Markets
Brazil’s inflation slows down for the 5th month straight, reaching 4.5% in February (lowest in 7 months). Food and transportation costs rose, but housing, clothing, and healthcare saw some relief. Monthly prices ticked up (0.83%, highest in a year) due to school year expenses and fuel tax increase.
India’s industrial output grew 3.8% year-on-year in January 2024, lower than expected (4.1%). Manufacturing, making up most (78%) of production, slowed to 3.2% growth compared to December’s 4.5%. However, mining and electricity sectors saw faster expansion (5.9% and 5.6%, respectively). This follows an upward revision for December’s growth (4.2%).
Mexico’s industrial output jumped 2.9% in Jan (exceeding expectations). Construction boomed (17.9%), while manufacturing recovered (0.1%). Mining dipped further, and utilities grew slower. Monthly production also rose slightly (0.4%).
Currencies
The Brazilian real weakens (4.98 per USD) on inflation concerns. Higher than expected inflation in Brazil (4.5%) and potential Fed rate cut delay weigh on the real. China’s economic slowdown further weakens foreign demand for Brazilian exports.
Commodities
Oil prices jump past $78/barrel on OPEC’s upbeat demand forecast. They predict 2.25 million bpd growth in 2024 and a raised 2023 economic outlook (+2.8%). Despite the production increase (led by Nigeria and Libya), OPEC cuts and Middle East tensions support prices.
Wednesday
The stock markets dip after record highs. The S&P 500 and Nasdaq fell slightly, while the Dow Jones gained. Nvidia, Tesla, and Intel dropped, while Amazon rose. On world markets, silver, soybean, and copper prices surged due to a combined effect of a lower dollar, bad weather, and monopolistic manipulation of pricing. BTC shot above 73K, stimulating the rest of the crypto market with BNB (+10%) and MATIC (+8%) leading the way.
Crypto and AI
MicroStrategy raises $500 million through convertible notes to buy more Bitcoin. These notes mature in 2031 and pay interest twice a year.
The EU passed a law regulating AI. It bans harmful applications like facial recognition databases used for mass surveillance and social scoring. “Deepfakes” must be clearly labeled. High-risk AI in areas like law enforcement and education requires strict oversight, transparency, and human involvement. Citizens have the right to challenge AI-based decisions.
World Markets
Russia’s inflation surges to 7.7% in Feb, exceeding forecasts (7.4%) and the central bank’s target (4%). Food and services prices contribute most. Monthly inflation slows slightly.
Currencies
The Mexican peso strengthens (near 16.66/USD) on hawkish central bank signals. Policymakers prioritize inflation control and advocate for gradual interest rate adjustments. Strong industrial production growth (2.9%) and lower-than-expected inflation (4.4%) support their stance.
Commodities
Silver surges to $24.7/oz (highest since Dec 2023), mirroring gains in other metals. Expectation of central banks easing rates (Fed, ECB in June, BoE in Aug) fuels the rise. However, Bank of Japan is predicted to tighten policy soon. Soybean prices climb near 3-week highs (~$11.8/bushel) due to lower supply concerns. Brazil revised production estimates downward due to bad weather in key regions like Argentina. However, prices remain down over 9% for the year due to a 2023 surplus.
Copper prices soar above $4/pound (7-month high). Chinese smelters cut production due to low concentrate prices affecting profitability. Specific limits not set, but adjustments planned. Exploring alternatives like using more copper blister to reduce reliance on concentrate.
Thursday
On Thursday, stocks fall after inflation data raises concerns. Higher yields and mixed economic data (strong producer prices, weak retail sales) cause investor jitters. The energy sector rises with strong oil prices. Internationally, the South African manufacturing sector is experiencing slow growth due to rising energy prices. BTC corrected sharply following stocks, bringing down the rest of the crypto market, while some coins such as Polygon and Stellar dropped more than 5%.
Details
Producer prices (PPI) jump 0.6% in Feb, the highest since Aug 2023. Exceeds expectations (0.3%). Goods surge 1.2% (energy +4.4%, food +1.0%). Services rise 0.3% (transportation +0.9%, trade -0.3%). Core inflation slows to 0.3% (Jan: 0.5%) but tops estimates (0.2%). Yearly inflation hits 1.6% (Jan: 0.9%), exceeding forecasts. Jobless claims drop below expectations: 209,000 in the week ending March 8th (vs. expected 218,000).
Crypto
Major banks are creating digital tokens (crypto) for real-world assets like bonds and deposits ($108 trillion+). This tokenization is being explored cautiously. Regulators in the US and Hong Kong are involved, with the Fed allowing some exploration by member banks. Banks are primarily using private, permissioned blockchains endorsed by regulators, not fully public ones.
Blockchain gaming surges: daily active wallets jump 20% in February. Play-to-airdrop campaigns and rising crypto game token prices are seen as key drivers. This trend suggests growing interest in this sector.
World Markets
South Africa’s manufacturing sector surges 2.6% YoY in January, exceeding expectations. This marks the fourth month of consecutive growth, driven by chemicals, wood products, textiles, and others.
Currencies
Stronger dollar (above 103) reflects persistent inflation. Higher producer prices, lower jobless claims, and weaker retail sales data raise concerns. Reduced hope for Fed rate cuts in 2024 (56.7% chance for June cut, down from 58.2%).
Commodities
Oil prices surge to highest since November ($81.26/barrel) due to several factors: IEA predicts higher global oil demand in 2024; oil inventories unexpectedly declined last week; attacks on Russian refineries and ongoing conflicts add uncertainty; OPEC+ decision to limit supply strengthens prices.
Friday
Stocks fell on the triple witching expiration due to a tech sell-off and concerns over a Fed rate hike. Amazon and Microsoft led the decline. Despite the daily drop, the market saw small weekly gains. On the world’s markets, the central bank of China kept its key rate unchanged at 2.5%. The crypto market was in the deep red as BTC plunged below 70K on traders’ following stocks. Among major alts, only Solana (+5%), Avalanche (+5%), and Binance (+1%) showed a positive dynamic.
Details
Manufacturing activity in New York State plunged in March, with the Empire State Index reaching a much worse than expected -20.9 (down from -2.4 in February). This reflects a significant decline in demand, new orders, shipments, and unfilled orders. Employment and working hours also weakened. Despite some hope for future improvement, overall sentiment among firms is cautious. Consumer confidence dips slightly to 76.5 in March, a 3-month low. Mixed signals: modest decline in business condition expectations, flat current conditions. Inflation expectations remain unchanged. Consumers cautious about long-term outlook due to upcoming elections.
Crypto
The Dubai International Financial Centre (DIFC) recently passed a new Digital Assets Law, aiming to: clearly define regulations for those using and investing in digital assets; modernize the DIFC to attract international investment; establish the DIFC as a hub for innovation in digital assets and blockchain technology. However, it’s unlikely that any of the bureaucrat’s ‘regulatory initiatives’ will really improve anything except for the bureaucrats themselves.
Bank of America reports record investments: the groundbreaking inflow in stocks of $56.1 billion, the highest ever for a single week; a significant milestone with $3.4 billion in crypto-investments.
World Markets
India’s trade gap widens to $18.7 billion despite strong export growth (11.9% YoY). Imports surged even faster (12.2% YoY) due to robust domestic demand and higher oil prices. Officials remain optimistic about exports holding steady. French inflation dipped slightly to 3% annually in February (down from 3.1%). This is the lowest level since early 2022, driven by slower price increases in food, manufactured goods, and services. However, energy costs, particularly electricity and fuel, are rising faster, causing a 0.8% jump in monthly consumer prices. While a slight improvement is seen, rising energy prices remain a concern.
Currencies
Japanese yen weakens against the dollar (below 148.5) as traders anticipate the Bank of Japan’s policy decision. Rumors suggest the bank might end negative rates due to wage growth, but the market seems to expect this already. Governor Ueda acknowledges a moderate economic recovery with some data showing weakness.
On Week 12 it gets busy: Fed meeting on 20th of March: Economic forecasts, interest rate projections in focus Macro data: Manufacturing, services activity, housing market on watch. Global focus: Interest rate decisions in several countries (Japan, UK, etc.). Inflation: Data releases from Canada, UK, South Africa, Japan. Purchasing Managers’ Indexes (PMIs): Flash updates from various regions. China: Key economic indicators like industrial production, retail sales, and investment monitored.
We have a lot of self-congratulatory comments coming from mainstream media on how “brilliantly” the Boomer-led Fed managed to keep rates at an astronomically high level without hurting economic growth. Let’s look at this.
They claim that unemployment is low. It’s wrong. It’s low among low-paid employees in government, transportation, manufacturing, and healthcare. This is supported at an unsustainable level by corporations, which have pushed SMBs — incapable of financing their businesses with such overpriced loans — out of the markets. Unemployment is high and rising among the most valuable and productive parts of the workforce in technology, finance, and high-value-added services. This is especially true for new, fledgling, and the most innovative businesses.
They claim that stock market highs increase the wealth of consumers, who then spend it in retail shops. It’s not true, too. In the USA, institutional investors, which include both active and passive funds, own ~80% of all stocks. So, private investors only hold USD ~$8 trillion of the ~$40 trillion worth of the local stock market.
Moreover, for an “average” asset holder, real estate makes up ~50% of holdings (including primary residence) and stocks & investments only ~25%. The rest is cash & savings (15%) and other (10%, including vehicles, retirement accounts, and valuables). With that, only 40% of homes in the USA are mortgage-free, according to various sources.
You might not be a genius to see that a positive impact on private asset holdings from rising stock prices (~30% YoY, or +5% (15%*0.3) to individuals’ wealth) can’t beat the combined effect of almost doubled prices on food, shelter, or -7% (15%*0.5) and cosmically high mortgage rates (~10%), or -3% (50%*0.1*0.6).
So, we have a combined effect of -5% yearly decrease in private wealth or -8.2% if you count the +3.2% inflation. Only brain-empty Boomer politicians can’t see this obvious fact and continue to preach the great “success of economic policies”.
That’s not all. If the present political trends of establishing a “strong government” with high taxes, high rates, and increasing regulatory burden continue, the economy might enter a Japanese-style stagnation. Here’s how it plays out.
The decades-long economic stagnation in Japan can be attributed to various factors, including a surplus in corporate savings (check), policy mismanagement (check), structural impediments (check), and the close ties between economic bureaucracies and corporations (double check).
Policy mistakes, such as the consumption tax hike in 1997 (check) and slow disposal of nonperforming loans (check), exacerbated the economic challenges. The complex structure of Japan’s political economy, characterized by symbiotic relationships between economic bureaucracies and corporations (check), also played a role in impeding progress.
The link between Japan’s economic stagnation, high asset prices (check), and low levels of innovation and entrepreneurship is multifaceted. The prolonged economic slowdown has hindered innovation and entrepreneurial activities due to risk aversion (rapidly growing with Millennial and Gen Z generations) and limited opportunities for growth (almost check).
The aging population (check, if immigration channels are closed) impacted the labor force and innovation landscape. Moreover, the dominance of large corporations and conglomerates in Japan’s economy (check) has created barriers for small businesses and startups to thrive (check), contributing to a lack of dynamism in the entrepreneurial ecosystem.
So, as you can see, we are on a straight road into the classical economic dystopia, where the current abyss between the haves and have-nots will widen for the next 20–30 years before the current system collapses and the new free-market, supplemented by UBI and politically decentralized system is built.
SVET Markets Weekly Update – March 4th–8th, 2024
On Week 10, BTC reached 70K and ETH reached 4K. The Dow, S&P, and Nasdaq all hit new ATHs. Faced with unexpectedly high unemployment and easing inflation, gold rose to a record high of 2.2K, while the dollar fell by 1.4%.
Monday
On Monday, stocks indices closed lower as investors awaited economic data releases and Powell’s congressional testimony for insights. Meanwhile, on world markets, gold hit a record high, while Japanese manufacturing continued to expand and Chinese production slowed down slightly. Bitcoin almost reached an ATH but retreated due to spontaneous profit-taking. The rest of the crypto market also performed well, with some major coins such as Dogecoin (+12%) seeing double-digit percentage increases.
Crypto
The second milestone for the Ethereum ETF application passed the Sunday. Analysts predict a 70% chance of approval by May. BlackRock filed for an Ethereum ETF. Futures-based products exist but lack attention.
World Markets
South Korea’s GDP grew 2.2% in Q4 2023, up from 1.4% in Q3, with an average annual growth of 6.95% from 1961–2023, peaking at 20.8% in 1969 and hitting a low of -7.3% in 1998.(BOK) The Jibun Bank Japan Services PMI rose to 52.9 in February 2024, marking 18 months of sector growth, driven by a significant increase in new business from tourism and product launches. Employment surged, but growth was mainly domestic as foreign demand stagnated. Input cost inflation eased, while output cost inflation grew. Business sentiment dipped but stayed optimistic about future investment and expansion.
The Caixin China General Service PMI fell to 52.5 in February 2024, marking the slowest expansion since November. Despite increased export orders, overall new work and employment dropped. Higher input prices led to increasing output prices, and business sentiment hit a four-month low. Turkey’s 10-year bond yield reached 26% amid rising inflation and upcoming elections. Annual inflation hit 67% in February, with expectations of it surpassing 70% in May. Concerns persist about potential lira depreciation and looser fiscal policies post-elections.
Currencies
The euro surged to 1.085, the highest since February, as investors anticipate the ECB meeting for clues on future interest rates. Inflation eases but core rate remains high, suggesting a cautious approach from the ECB.
Commodities
Gold hit a record $2,115 per ounce as investors predicted FED interest rate cuts. This follows data showing a 16-month contraction in US manufacturing and weak consumer morale.
Tuesday
The Dow, S&P, and Nasdaq dropped more than 1%. Tesla, Microsoft, and Meta led the decline due to concerns over China and the tech sector’s health. Gold reached a new all-time high on weak PMI and expectations of rate cuts. BTC crashed spectacularly to $59K after touching an ATH at $69K as a result of a massive Wall Street bear attack, taking down the rest of the crypto market with it. Some major coins, such as Bitcoin Cash (-14%), Cardano (-11%), Polygon (-11%), and Algorand (-10%), depreciated by ten percent or more within a few hours.
Details
Services sector growth slowed in February (to 52.6 from 53.4), despite rising business activity and new orders. Employment and supplier deliveries contracted, while inflation pressures eased, concerns remain regarding inflation, employment, and geopolitical conflicts.
Crypto
Solana DEXs smash weekly trading volume record, exceeding $11 billion (154% increase) and surpassing the previous high of $9.88 billion. Orca and Raydium (DEXs) on the Solana network saw $4.5B and $3.52B in trade.
World Markets
The Eurozone Composite PMI rose to 49.2 in February, indicating near-stabilization of the economy. Growth in service sector activity and contractions in manufacturing output continued. France and Germany experienced modest growth, while Ireland and Spain observed solid expansions. Industrial producer prices in the Eurozone decreased in January, marking a moderation from the previous month.
Commodities
Gold hits a new record high ($2,130) on weak PMI and factory orders, fueling expectations of rate cuts (55% chance priced in for June). Geopolitical tensions and recession fears add support. Investors eyeing jobs report and Powell’s speech for further clues.
Wednesday
On Wednesday, stocks rebound after Powell’s comments and data. Fed not rushing to cut rates, labor market strong, Nvidia, Meta, Broadcom up and Apple fall for 6th day. On world’s markets, gold surged to the new ATH on Powell’s comments and weak job reports, while wheat dropped on oversupply and oil continued to rise. The crypto market was in deep green as all major coins recovered from Monday’s crash to their 2 years height. BTC kept above 65K.
Details
Private businesses added 140K jobs in February, below expectations of 150K. Most new jobs were in service sectors, especially leisure and hospitality. Most jobs shed were in mining (-4K) and information (-2K). Job openings fell to 8.86 million in January, the lowest in 3 months and below expectations. The decline was broad-based across most sectors except nondurable goods manufacturing. Job openings also decreased in most regions except the Northeast.
Crypto
El Salvador’s BTC holdings surpass $150 million, reflecting a $50M profit since adopting it as legal tender in 2022. President Bukele’s daily 1 BTC buying strategy has grown their stash to 2,380 BTC, currently valued at $164.7 million.
World Markets
In February 2024, the HCOB Eurozone Construction PM increased slightly to 42.9, indicating a continued but softer decline in activity, with housing remaining weak. New orders fell sharply, affecting purchasing, while employment declines slowed, and future outlook slightly improved. Input costs rose at a slower rate.
Euro area retail sales fall further in Jan 2024, down 1.0% YoY (1.3% expected) after -0.5% decline in Dec. This marks the 16th consecutive month of contraction. Brazil’s industrial output surges 3.6% YoY in Jan 2024, exceeding expectations (2.8%) and marking the 6th straight month of growth. Egyptian stocks surge to record high (32150) on surprise central bank move: 600bps rate hike, currency floatation. Loan rates hit record highs (28.25%), pound weakens towards 50/$1.
Hong Kong’s Hang Seng rebounds 1.7% to 16,438 after a drop, driven by hopes of China’s stimulus measures (5% GDP target, support by during the annual National People’s Congress) and rising US futures. Tencent, JD.com, and other tech giants lead gains.
Commodities
Wheat prices plummet 5% to 3.5-year low on falling global prices, abundant supply from major exporters like Russia and Ukraine, and slightly increased global wheat production. US oil prices jump over 2.5% to near 4-month high as lower-than-expected inventory rise, Fed’s wait-and-see stance, and OPEC+ cuts support demand. Geopolitical tensions add further pressure.
Thursday
Major indices climbed, with the S&P 500 and Nasdaq hitting new highs. Powell hinted at the Fed cutting rates this year, while jobless claims edged up slightly, and labor costs were revised lower. In the world markets, the ECB held the rate at the record high of 4.5%. BTC hovered under 68K, while the rest of the crypto market continued to outperform, with Solana (+14%), Binance (+10%), and Algorand (+8%) leading the surge.
Details
Employers announced most Feb job cuts (84,638) in 11 months, led by tech (12,412) and transportation (13,573). YTD cuts down 7.6% YoY, with tech leading industry cuts (28,218).
Crypto
Tether partners with Uzbekistan to make it a blockchain hub. This aims to boost the country’s economy and innovation through crypto and stablecoins.
World Markets
ECB holds interest rates at record highs (4.5%) to fight inflation (projected at 2.3% in 2024), despite revising down growth forecast to 0.6% for 2024. They anticipate a rebound in growth (1.5% in 2025, 1.6% in 2026).
Currencies
Dollar falls to 1-month low on rate cut bets. Fed sees inflation nearing 2% target, jobless claims rise, layoffs highest since 2009. Euro surges despite lower ECB forecasts.
Commodities
Sugar futures near 2.5-month low (21 cents/lb) on weak demand, Thailand output optimism. Potential cane planting decline in India and lower production expected in Brazil’s center-south (40.8 million tons).
Friday
On Friday the Nasdaq, S&P and Dow hit new ATHs but then stocks retreat after chip a selloff. The unemployment rate went up unexpectedly. Fed rate cut bets in June stay. On the world’s markets, Eurozone GDP is flat. BTC reached 70K and then retreated to 66K in a second wave of profiteering. ETH reached over 4K. The rest of the crypto market went down after BTC with most coins correcting 1–3%.
Details
Feb unemployment at 3.9%, highest since Jan 2022 (up from 3.7% expected). Unemployed rose by 334k to 6.5 million.
Crypto
Retail crypto interest is rising (website traffic, Google searches) but not at peak levels (compared to 2022). Bitcoin searches up, “how to buy” less so. Ethereum searches are stronger. Crypto app usage climbs (Coinbase) but isn’t near peak. Retail seems hesitant to make a full commitment.
World Markets
Eurozone GDP flat (0.1% yoy) in Q4 2023, matching Q3. France, Italy, Spain grew, Germany shrank.
Currencies
Dollar tumbles to mid-January low (102.5) on cooling US jobs data. Strong Feb payroll hides revisions down, unemployment up, wage growth slows. 57% chance of Fed rate cut in June. Greenback falls most vs. yen, pound, and Aussie dollar. Weekly: -1.4%.
Commodities
Gold hits record high at $2,200 on rate cut bets. Feb jobs strong, revisions lower, unemployment up. Wage growth slows. 60% chance of Fed rate cut in June expected.
On Week 11: market analysts will focus on: inflation, retail sales, and consumer sentiment. The UK watches jobs, GDP, and trade. China’s loans, car sales, and housing market are in focus. Brazil, India, and Russia’s inflation rates key. Eurozone and India’s production along with Australia’s business confidence round out the global economic data picture.
So, the story of this week (and of many previous ones) is a paradoxical one. While assets like BTC, domestic and international stocks, and gold are all rallying, the underlying state of the world seems to be deteriorating rapidly. Economies are struggling, with unemployment rising and GDP slowing or stalling. Many ridicule Powell and his political friends for celebrating a non-existent victory over inflation. Despite Powell’s attempt to appear confident during his Congressional testimony, it contrasted sharply with polls showing growing consumer unease.
The question remains: where are we headed? Everyone seems to be expecting rate cuts in June, hence the current stock and BTC rally. But what if the Fed doesn’t cut rates, or if FOMC members make more hawkish comments, leading to a sudden shift in investor sentiment and renewed focus on the troubled economy?
SVET Markets Weekly Update February 26 — March 1st, 2024
On Week 9, BTC almost reached its ATH, and the crypto markets rallied as stocks continued to outperform worldwide. This was driven by easing inflation and slowing economies, with traders betting on central banks implementing rate easing policies sooner this year.
Monday
The Dow, S&P 500, and Nasdaq closed slightly down, with utilities, communication services, and real estate leading the decline. Amazon joined the Dow, replacing Walgreens Boots Alliance. On the world stage, Xi Jinping supported dwindling Chinese markets by encouraging consumer’ goods producers. Oil rebounded on Lebanon’s supply cuts. The dollar was steady as traders waited for new macroeconomic data. Crypto markets were in deep green as BTC rose over 54K, entering its Oct 2021-Jan 2022 range, and ETH shot above 3.1K. The market was led by Monero (+6%), Solana (+5%), Polygon (+5%), and Cosmos (+5%).
Details
Building permits in January fell by 0.3% to 1.489 million. Approvals for buildings with five or more units decreased, while single-family authorizations increased. Declines in the South, increases in the West, Midwest, and Northeast regions. The Federal Reserve Bank of Dallas manufacturing index improved to -11.3 in February 2024, from -27.4 in the previous month. Production, new orders, capacity utilization, and shipments increased, while employment and future indices also improved. Wage and input costs rose, while selling prices were unchanged.
Crypto
Japan’s cabinet, led by PM Kishida, approved a bill to allow more flexibility for venture capital firms and investment funds in dealing with cryptocurrencies. This aligns with Kishida’s focus on supporting Web3 firms and marks a shift from strict regulations, reflecting Japan’s aim to stay competitive in the digital landscape.
World Markets
The Hang Seng fell 0.54% on Monday, led by financials, consumers, and tech, as uncertainties persisted both at home and abroad. Chinese President Xi Jinping’s remarks on boosting consumer product sales capped the decline.
Japan’s January inflation rate fell to 2.2% from 2.6% YoY, the lowest since March 2022, mainly due to slower food price increases. Core inflation dropped to 2.0%, exceeding expectations but remaining within the Bank of Japan’s 2% target. Prices fell for fuel and certain services, while transport and education costs rose. On a monthly basis, prices remained stable. Despite this, Japan’s economy entered a technical recession in Q4, losing its third-largest global ranking to Germany.
European stocks were lower, with the STOXX 50 and STOXX 600 declining after reaching record highs. Traders await key economic indicators and Fed policymaker appearances, while the energy sector underperformed and basic materials outperformed. Russian stocks surged 2% on Monday as sanctions on Russian companies and individuals were less severe than expected, with key commodity exporters escaping penalties.
Currencies
The dollar index held steady near 104 as investors await key inflation data, including the personal consumption expenditures price index, which could guide Fed monetary policy.
Commodities
WTI crude futures rebounded to $77/barrel after a 2.5% drop, driven by strengthening US markets, Libyan export disruptions, and high refinery margins. Foreign buyers are turning to American crude due to shipping issues in the Red Sea.
Tuesday
Stock indexes were flat to lower, as traders await key economic data and Fed comments. Durable goods orders contracted by 6.1%, while the home price index is up. In global markets, the Nigerian central bank hiked its rate to a record 22%. Cotton prices are up on speculative buying. The crypto market continued to grow, with BTC shooting above 57K (+10%) and reaching Nov 2021 levels, now aiming at ATH. ETH closed over 3.2K, and major coins such as BCH (+7%), Uniswap (+3%), and Cosmos (+2%) followed suit.
Details
In January, orders for manufactured durable goods fell by 6.1%, surpassing market predictions of a 4.5% drop. This was the largest monthly decline since April 2020, mainly due to a 16.2% decrease in transportation equipment orders. Excluding transportation, new orders decreased by 0.3%. Orders for non-defense capital goods excluding aircraft, a key indicator of business spending plans, increased by 0.1%.
The S&P CoreLogic Case-Shiller 20-city home price index increased 6.1% year-on-year in December 2023, the greatest rise since November 2022. San Diego, Los Angeles, and Detroit saw the highest gains. Despite increased financing costs leading to price declines in 15 markets in Q4, 2023 exceeded average annual home price gains over the past 35 years.
Crypto
Ethereum’s Dencun upgrade is live on testnets, leading to mainnet activation on March 13, 2024. Features “protodanksharding” with EIP-4844 to reduce Layer 2 transaction costs. Builds upon Shapella upgrade with new features.
World Markets
In January 2024, lending to companies in the Euro Area increased by 0.2% to EUR 5.136 trillion, following a 0.5% increase in December. Bank lending to households rose by 0.3% to EUR 6.870 trillion, below market expectations, indicating a slowdown in the Eurozone economy. Overall private sector credit growth remained unchanged at 0.4%.
The Central Bank of Nigeria raised its benchmark interest rate to a record high of 22.75% to combat inflation, which reached a near 28-year high of 29.9%. The naira has plunged 70% against the dollar in 2024, and the central bank has taken measures to support it and boost local dollar liquidity, including relaxing the foreign exchange regime.
Russia’s central bank kept its key policy rate at 16% in February, pausing hiking campaign after an 850bps increase since July 2023. Inflation pressures eased compared to late 2023, but upside risks remain. GDP grew 3.6% in 2023, surpassing estimates amid capacity and labor challenges due to sanctions and mobilization.
Currencies
The Brazilian real strengthened towards 4.98/USD, becoming an attractive option in emerging markets due to low volatility and high-interest rates (currently at 11.25%). However, the mid-month CPI for February at 4.49% tempered the upward momentum, as inflation is expected to ease to 3.9% by year-end.
Commodities
Cotton futures reached a high of 95 cents per pound, driven by speculative buying and sustained demand. USDA reported exports of 276,100 running bales, up 11% from the previous week. China, Vietnam, and Pakistan were the primary destinations. World consumption for 2023/24 is expected to remain unchanged, while production is projected to decrease by 355,000 bales.
Wednesday
On Wednesday, major stock indices decreased as investors awaited the PCE inflation report and digested contradictory comments from Fed officials. The US economy showed 3.2% annualized growth in Q4 2023. In the world’s markets, economic sentiments lowered in the Euro Area, and sugar prices rose due to dry weather conditions. The crypto market heated up, with BTC reaching 64K, then suddenly crashed due to massive profit-taking, with BTC hitting 59K. The value of BTC ETFs has surpassed the 50% of gold ETFs’ market.
Details
The economy grew at an annualized rate of 3.2% in Q4 2023, slightly below the initial estimate of 3.3%, due to a downward revision in private inventories. Consumer spending was revised higher, led by services, while government spending and exports also increased more than anticipated. Non-residential investment was revised higher, except for investment in equipment, while residential investment continued to grow.
For the full year 2023, the US economy grew 2.5%, up from 1.9% in 2022. The core personal consumption expenditure price index in the US rose by 2.1% in the Q4 2023, up from 2% in the third quarter and exceeding initial estimates of 2%. The average mortgage rate decreased to 7.04% in February 2024. Mortgage loan application volume, decreased 5.6% from the previous week. The Refinance Index decreased 7% and was 1% lower than the same week one year ago.
Crypto
BTC has reached new all-time highs in 14 countries facing economic and financial challenges: Japan, Argentina, Laos, Congo, Ghana, Turkey, Burundi, Sudan, Lebanon, Malawi, Egypt, Pakistan, Sierra Leone, and Nigeria leading the way. BlackRock recommended a 28% allocation of one’s portfolio to Bitcoin.
World Markets
The economic sentiment indicator in the Euro Area slightly decreased to 95.4 in February, missing expectations and driven by declining confidence among businesses and consumers.
Commodities
US natural gas prices have recovered to above $1.8/MMBtu after falling to a low of $1.54 on February 19, the lowest level since June 2020. This rebound is despite a mild winter that has left stockpiles well above normal levels (+22.3%), and record-high production levels, which have contributed to an oversupply in the market. To address this issue, some producers have reduced their production plans.
Raw sugar futures reached a one-month high as dry weather affected key producers, threatening global supply and raising concerns over low sugar production in India and Thailand.
Thursday
Stock indicators closed higher as traders disregarded the PCI increase. On the world’s markets, German and French inflation fell as a result of lower food and energy prices. Uranium fell below 100 due to weaker sanctions. The crypto market was in the green again, after BTC’s (61K) sharp correction, with traders turning their attention to major alts, leading to a rally in Litecoin (+8%), Solana (+8%), and Cardano (+5%). In February, stocks showed positivity with the Nasdaq gaining +6%, the S&P increasing by +4%, and the Dow rising by +1%. BTC added +45% over the same time period.
Details
Core PCE prices increased by 0.4% MoM in January, the most significant increase since February 2023 but in line with market expectations. It follows a downwardly revised 0.1% increase in December. Core PCE prices rose by 2.8% YoY, indicating the least growth since March 2021 and slowing from 2.9% in December.
Crypto
FATF has downgraded Russia’s compliance rating due to inadequate regulation of virtual assets and cryptocurrencies. At the same time, the Russian Central Bank, which is pushing a digital ruble project, wants to ban crypto altogether. However, many Russian firms use crypto as a cross-border payment tool. “According to Rosfinmonitoring, the number of transactions conducted in Russia using crypto tripled from the beginning of last year to November 2023”.
World Markets
Germany’s consumer inflation fell to 2.5% in February 2024, the lowest since June 2021, driven by slowing food and declining energy prices. The annual rate edged closer to the ECB’s 2% target, while services and core inflation held steady. Monthly prices rose 0.4%, below expectations. Germany’s unemployment remained unchanged at 5.9% in February 2024, the highest since May 2021, with jobless rising for the 14th straight month by 11,000 to 2.713 million and up 190,000 year-over-year. Regional disparities persist with the highest rates in Bremen and Berlin and the lowest in Bayern and Baden-Württemberg. Spain’s consumer price inflation fell to a 6-month low of 2.8% in February 2024, largely due to decreased electricity prices and stable food costs, with the core inflation rate dropping to 3.4%.
Currencies
The dollar index rose above 104, recovering from a recent low amid mixed economic signals. Core PCE prices increased significantly, hinting at persistent inflation and affecting expectations of a Federal Reserve rate cut. Meanwhile, rising unemployment claims suggest a softening labor market.
Commodities
Uranium prices dropped below $100 per pound for the first time in seven weeks after the government didn’t ban Russian nuclear fuel imports. Despite this, uranium prices remain high year-to-date due to supply risks and robust demand, with global nuclear power set to triple by 2050.
For a very long time, since the fall of the Berlin Wall in 1989, business has been the matter of first priority both in the private and public sectors. Stock markets boomed. All governments’ pipe dreams were to lure as many wealthy investors into their countries as possible. The only goal was to buy cheap and sell expensive. Business and financial moguls were given the status of new saints. As a result, Gen X and Millennial generations’ skill sets were tailored to fit that reality. The dream was to be first in the classroom, then university, get an MBA, land a cushy corporate job or start your own company, start more companies, cash out and become an angel investor or VC — that was the dream life story for billions for more than three decades in a row.
That epoch has ended. The Boomers grew old and tired of making money, having had more than enough. Now they want real power, the kind that eclipses that of pharaohs of the past. Moreover, a few very powerful Boomers at the very top, with their fingers on the nuclear button, suddenly became zealots. That’s when things got very messy very quickly. Suddenly, business is no longer the priority. Suddenly, we all have to choose sides whether we want to or not. Taking sides is extremely bad for business. So the Boomers decided business must be sacrificed. From now on, “Les grands bataillons ont toujours raison” (the biggest armies are always right).
Now Gen Z and Millennials have to learn a new skill set — how to survive under increasing state pressure, which will require more and more taxes and life resources to feed the Boomers’ war machines. What about the economy? There will still be an economy, but an entirely new type — the Permanent War Economy. No one really knows what that is. This is an unprecedented episode in human history with two superpowers, economically interdependent yet both with the power to destroy the Earth, facing each other in an uncompromising war for absolute global dominance led by chronically deranged septuagenarian and even nonagenarian Boomers.
We are not quite there yet, but we will be sooner or later, just wait. No wonder our markets are crazy. What do we have to lose at this point?
Friday
The main indices hit new record highs as tech stocks rallied. Factory activity contracted more than expected, and inflation data eased concerns. The S&P 500 and Nasdaq had positive weeks, while the Dow lagged. In the world markets, Euro stocks reached all-time highs due to low inflation, a slowing economy, and increased employment. Gold reached ATH, while oil rose again due to geopolitics and OPEC cuts. The crypto market is on the rise, with Cardano (+7%), Algorand (+6%), and Bitcoin Cash (+5%) leading the way. ETH edged above 3.4K, while BTC is slowly recovering from a profit-taking event, reaching 62.5K.
Details
The US ISM Manufacturing PMI fell to 47.8 in February, below expectations, indicating 16 consecutive months of declining manufacturing activity. New orders and production levels also contracted, while prices rose at a slower pace. Employment levels declined for the fifth straight month. (PMI)
In February, the Global Manufacturing PMI rose to 52.2, marking the fastest sector expansion since July 2022. Output and new orders surged, export orders grew for the first time in three months, and job creation hit a five-month peak. However, business confidence dipped from a 21-month high.
UBI News: Tacoma, Washington, launches GRIT 2.0, a guaranteed income project offering 175 families $500 monthly for a year. Eligible families must earn between 100% and 200% of the Federal Poverty Line.
The University of Michigan Consumer sentiment was revised lower in February, with expectations and current conditions subindexes both dropping. Inflation expectations for the year ahead increased slightly, while the five-year outlook remained the same.
Crypto
Nigeria fined Binance $10B, accusing it of causing a 70% depreciation of the Naira through speculative exchange rate manipulations, reports BBC.
World Markets
European equities ended the week positively, with the Stoxx 50 reaching a 23-year high and the Stoxx 600 hitting a record high. Disinflation in the Eurozone and lower Treasury yields supported the market, with gains seen in tech shares and banks. Daimler Truck exceeded earnings expectations. In February, the HCOB Eurozone Manufacturing PMI was revised to 46.5, indicating a slight improvement but still showing a contraction in the sector. Germany’s decline was notable, while Spain grew and Greece and Ireland saw significant expansions. Employment fell, and prices dropped, but business confidence remained stable.
Also in February, Euro Area inflation decreased to 2.6% YoY, slightly above expectations and above the ECB’s 2% target. Energy prices fell less sharply, and while the pace of increase in other categories slowed, the core inflation rate also declined (to 3.1%) but remained above forecasts. Monthly, consumer prices rose by 0.6%.
In January, the Euro Area unemployment rate dropped to a record low of 6.4%, with the number of unemployed decreasing to 11.009 million. Youth unemployment remained steady at 14.5%. Spain had the highest unemployment rate at 11.6%, while Germany boasted the lowest at 3.1%.
Currencies
The dollar index fell below 104 as poor economic data and central bank officials’ remarks weighed on sentiment. Fed officials had differing views on rate cuts and inflation concerns.
Commodities
Gold reached a record high of over $2,080 per ounce, driven by a weak dollar and lower Treasury yields, as US economic data showed a decline in manufacturing and weak consumer surveys. US inflation for January was the lowest in three years. New York Fed President expects an interest rate cut later this year. WTI crude futures reached $80 per barrel, the highest in four months, due to speculation of extended supply cuts by OPEC+ and tensions in the Middle East. Uncertainty around ceasefire talks and increased US crude stocks influenced prices. Weekly oil prices are up over 5%.
On Week 10 investors will monitor the labor report, speeches by Fed officials, and key indicators like the ISM Services PMI. Internationally, the focus will be on central bank decisions, inflation rates, GDP growth rates, trade data, and services PMIs in various countries.
The news today has Nigerian bureaucrats pointing fingers at cryptocurrency for their blunders. Blaming Binance for their own economic mess. Meanwhile, a city in Texas is taking a bold step towards Universal Basic Income (UBI), something crypto enthusiasts have been advocating for years. This is a small step forward towards a decentralized governance system, just like many of us have been preaching.
This news perfectly highlights the divide in our world. It is an unending battle between generations. The older folks just can’t seem to let go of the reins and are desperate to control us, even if it means crippling progress.
So, crypto brothers and sisters, hold onto your coins tight. In this uncertain world, they might just be your lifeline to freedom.
SVET Markets Weekly Update – February 19–23, 2024
On Week 8, Wall Street rallied on hopes for AI, with major world indexes following. Chinese markets were re-energized after the Lunar New Year break. Cocoa continued its unprecedented price rally. The crypto market was mostly flat, with BTC and ETH holding their two-year high levels.
As markets remained closed for the national holiday, EU stocks were steady due to an absence of directional signals for investors. Chinese traders returned from the Lunar New Year break energized by strong tourism activity data (+47.3% YoY), leading to a strengthened yuan. Still, aluminum prices fell on expected weaker Chinese demand for commodities. The crypto market was mostly in the green. ETH led the charge with a +3% increase, preparing to test the crucial 3K resistance level. BTC fluctuated around 52K, allowing traders to re-focus on major alts, leading to larger growth in Algorand (+3%), Stellar (+2%) and Cardano (+1%).
Crypto
The Bitcoin ETFs had a strong week, with net inflows exceeding £2.2 billion from February 12–16. BlackRock’s iShares Bitcoin Trust led with £1.6 billion, accounting for 50% of BlackRock’s ETF flows this year. Fidelity’s Wise Origin Bitcoin Fund and the Ark 21Shares Bitcoin ETF also saw notable inflows, while the Grayscale Bitcoin Trust experienced outflows.
World Markets
Equity markets in Europe were steady with the STOXX 50 index closing at a 23-year high. Investors are looking ahead to a busy week of economic data and central bank minutes. Positive tourism data from China also buoyed global investors. Temenos stock rebounded after falling Friday on a critical report.
The IBC-Br Index of Economic Activity in Brazil increased by 0.82% in December 2023, exceeding market expectations and signaling the strongest growth since April. This news suggests that the central bank may not need to cut interest rates as urgently and that industrial production, services output, and retail sales are all performing well, except for a slight contraction in retail sales.
Israel’s economy contracted 19.4% annually in Q4 2023, the steepest fall since Q2 2020 and the 2nd lowest in this century, as the conflict with Hamas severely disrupted business activity (displacement of citizens, military mobilization and restrictions on the entry of Palestinian workers), consumption (-26.9%), investment (-67.8%), and trade (export -18.3% / import -42%). Government spending surged on war expenses (+88.1%). For the full year 2023, GDP grew 2% versus 6.5% in 2022.
Currencies
The offshore yuan strengthened past 7.20 per dollar as traders returned from the Lunar New Year break. The currency was buoyed by a weaker dollar and positive Chinese tourism data during the holiday (+ 47.3% YoY). The PBOC left its policy rate unchanged at 2.5%. Markets now await the monthly loan prime rate fixing on Tuesday.
Commodities
Aluminum prices fell to a one-month low near $2.2K per tonne in February amid weak demand outlook. Weak data from top consumer China and uncertainty over EU sanctions on Russian aluminum weighed on prices. The UAE helped restore Guinea’s bauxite exports after an explosion disrupted logistics. Broader EU bans on Russian aluminum are called for as current restrictions only impact a small portion of imports.
On Tuesday, the CB economic index dropped, and stock followed suit with large tech companies leading the decline due to concerns over high valuations. Major retailers reported mixed earnings. In foreign markets, the CAC in France hit ATH, cocoa prices continued their rally reaching ATH due to poor weather conditions, while steel futures dropped on China’s economic slowdown. With Bitcoin still oscillating around 52K and Ethereum lingering just under 3K, the larger crypto market entered a short-term correction mode with Polkadot (-5%), Cosmos (-4%), and Solana (-4%) leading the retreat. In other news, 10 Autoglyphs were sold for 5K ETH.
Details
The Conference Board Leading Economic Index (LEI) decreased by 0.4% in January 2024, following a 0.2% decline in December 2023. Despite the decline, only four out of ten components were negative contributors over the previous six months, and the index does not currently signal a recession. However, real GDP growth is expected to slow to near zero percent in Q2 and Q3 of 2024.
Crypto
Coinbase International Exchange (launched in May 2023) hit a record $1 billion in daily trading volume for the first time, with the bulk of trades in Ethereum and Bitcoin. However, this figure is separate from the company’s main US exchange, which reported $3.2 billion in spot trading volume on the same day.
A complete set of 10 Autoglyphs has sold for 5,000 ETH, or about $14.6 million, marking the highest NFT sale in two years and the fifth-largest on-chain purchase. Autoglyphs have gained acclaim, being exhibited at prestigious venues and even donated to Europe’s largest modern art museum, Centre Pompidou.
World Markets
The CAC 40 hit ATH, rising 0.34% due to positive corporate news. Air Liquide and Veolia saw significant gains, while losses from Renault and ArcelorMittal moderated the increase. South Africa’s unemployment rate rose to 32.1% in Q4 2023, with job losses in community & social services, construction, agriculture, trade, and manufacturing. Employment fell, but finance, transport, and mining added jobs. The youth unemployment was 59.4%.
Mozambique’s economy grew by 5.36% YoY in Q4 2023, due to positive contributions from sectors like accommodation & food services, construction, transport & storage, information & communications, finance, agriculture, and fisheries. Despite a slowdown in the extractive industry and poor manufacturing performance, 2023 saw the strongest GDP growth since 2015, reaching 5%.
Currencies
The euro has strengthened (above $1.08) due to a weaker dollar and data indicating slower wage growth in the Eurozone. Despite decelerating wage growth, it remains above a level consistent with 2% inflation. ECB officials have expressed caution about rate cuts, suggesting they are likely this year but without giving a specific timeline.
The Mexican peso reached a one-month high around 17 per USD in February, benefiting from a weaker US dollar and the Bank of Mexico maintaining its record high interest rate. Banxico revised its inflation expectations upwards for most of 2024.
Commodities
Steel rebar futures dropped to CNY 3,750 per tonne in February due to low demand for ferrous metals. New home sales fell by 34% in major Chinese cities, leading to a surge in steel rebar stocks and a 4% increase in iron ore inventories. The PBoC’s loan prime rate cut did little to improve demand optimism.
Cocoa prices have reached a record high of over $6,030 per tonne due to concerns over crop conditions in West Africa, the leading cocoa-producing region. Fears of a fourth consecutive global deficit are growing as unfavorable weather conditions potentially reduce crop yields.
investors disregarded cautious Fed minutes hinting at a possible delay in interest rate cuts, leading to flat stock markets. Gold and oil prices increased due to geopolitical factors. The crypto market experienced a correction, with major altcoins such as Algorand (-4%), Solana (-2%), and Polygon (-2%) in the red, as BTC fell to $51.4K and ETH to $2.9K.
Details
30-year fixed mortgage rates increased to 7.06% in the week ending February 16th, hitting the highest level since early December, driven by rising Treasury yields and higher inflation. This marked a total increase of 28 bps over the previous three weeks. MBA’s chief economist Mike Fratantoni noted that potential homebuyers are sensitive to these rate changes as affordability remains strained due to limited supply and increased home values.
Crypto
VanEck’s HODL Bitcoin ETF witnessed a massive surge in trading volumes, surpassing its daily average by over 2,200%, as individual traders drove the activity. This comes on the eve of a fee reduction from 0.25% to 0.20%, positioning HODL as the third-largest Bitcoin ETF in the U.S. The surge reflects growing investor interest in Bitcoin and cryptocurrency markets, coinciding with Galaxy Digital receiving a buy rating and a 30% upside potential price target from an analyst.
World Markets
Nikkei 225 gained 1.1% and Topix Index rose 0.7%, approaching 34-year highs, as technology stocks surged following Nvidia’s positive earnings report. However, Japan’s private sector activity slowed in February, with services growth easing and manufacturing activity contracting further. Tokyo Electron, Advantest, SoftBank Group, Screen Holdings, and Disco Corp led the technology sector’s advance with significant gains.
In December 2023, Mexico’s retail sales declined 0.2% YoY, underperforming expectations, due to lower sales in auto vehicles (-9.9%), hardware & glass (-7.8%), and health items (-5.4%). However, e-commerce (+31.2%), self-service and department stores (+7.4%), and household goods (+5.7%) saw improvements. Month-on-month, retail sales fell by 0.9%, missing the consensus of a 0.2% rise.
Commodities
Gold prices rose to $2,024, marking the fifth straight session of gains, after the FOMC minutes indicated policymakers’ caution in easing policy. The Fed is expected to maintain rates in March and May but may cut borrowing costs by 25 basis points in June. Safe-haven demand for gold increased due to geopolitical tensions in the Middle East, as Houthi militants targeted US ships in the Gulf of Aden, disrupting shipping routes.
Wall Street rallied on Nvidia’s strong earnings. The S&P 500 hits a new high, and the Nasdaq records its biggest gain since 2023. The Dow Jones breaches 39K for the first time. Nvidia’s stock soars 16.4%, and its market cap surpasses $1.9 trillion.
World markets are also fueled by AI optimism, with German DAX hitting ATH and China’s stock markets rising on a weekly basis after almost a year of continuous downfall. Nickel prices surged due to geopolitics.
The crypto market was mixed, with BTC and ETH slightly in the red but still holding their record 2-year levels. Some major altcoins, like Polygon, added more than 5%, while others, like Polkadot or Avalanche, closed flat.
Details
The number of people claiming unemployment benefits has decreased, with a low claim count of 201K, below market expectations but with sharp declines in California (-8,584), Kentucky (-3,655), and Michigan (-1,907). Overall, this suggests a strong labor market with low unemployment, giving the Federal Reserve leeway to hold interest rates higher if inflation remains high.
The Chicago Fed National Activity Index decreased in January, indicating contraction. Three of four broad categories of indicators decreased, with production-related indicators contributing the most to the decline.
The DAX 40 hits a record high at 17,370, boosted by tech rally post Nvidia forecasts. Mercedes-Benz raises dividend despite a sales decline, and lower earnings outlook. Delivery Hero drops 6% after terminating Foodpanda sale talks. Germany’s private sector contracts in February, led by a manufacturing output decline.
Crypto
BlackRock rapidly acquired 122,600 BTC, worth $6.31 billion in six weeks, becoming the 11th largest holder. This strategic move demonstrates broader acceptance of Bitcoin as an asset class.
World Markets
Shanghai Composite flat around 2,988, set for over 4% weekly gain. China’s policy measures and monetary easing boost investor confidence. Beijing implements market stabilization measures, PBOC cuts bank reserves and mortgage rates. Chinese tech stocks benefit from AI excitement. Gains from COL Group, Chengdu Hi-Tech, ChongQing Changan. Losses from Wuxi Apptec, PetroChina, Luxshare Precision.
February 2024 HCOB Eurozone Composite PMI increased to 48.9, signaling a slower decline in output. New orders fell as inflation rates rose but employment increased and business confidence improved on expectations of lower living costs and interest rates. Euro Area inflation rate stable at 2.8%; core rate at 3.3%. Inflation slowed for food and goods, while energy prices declined less. Monthly CPI dropped 0.4%.
February’s HCOB Flash Germany Manufacturing PMI fell to 42.3, the lowest in four months, showing lower output and new orders. Job losses were high, input prices down, and business sentiment turned pessimistic.
Currencies
Russian ruble steady near 2-month low (92 r/usd) as EU sanctions and US energy trade restrictions weigh. Tankers pause loading, Ukrainian attacks on refineries impact fuel production. Central Bank slashes current account forecast, key interest rate at 16%. Possible pause in rate hikes due to easing inflation risks.
Commodities
Nickel futures surged above $16,500 per tonne due to sanctions on Russia, boosting supply concerns. However, oversupply projections for 2024 and weak EV adoption dampened the bullish sentiment. Australia introduced stimulus measures to support local nickel producers amid mining plant shutdowns.
On Friday, stocks indexes closed near record highs, with the S&P 500 and the Dow Jones rising. Nvidia surpassed a $2 trillion valuation. Crypto market was mixed with BTC and ETH edging down about one percent while some major alts such as Bitcoin Cash, Polkadot, Cosmos and Cardano showing a positive dynamic with Uniswap rocketing up by more than 53% and closing above 11 at its 2-years highs.
Crypto
Uniswap’s $UNI token price surged by 50% due to a governance proposal rewarding token holders for staking. Uniswap’s Protocol emphasized efficiency in token swapping with minimal governance.
World Markets
Foreign investments into China decreased by 11.7% YoY in January 2024 but rose by 20.4% from the previous month. According to CPC 4,588 new foreign-invested enterprises were established, showing a 74.4% increase from the previous year. The FGV-IBRE Consumer Confidence Index in Brazil dropped to 89.7 in Feb, the lowest level since May 2023, driven by declining future expectations due to high interest rates and private debt. While lower-income households experienced a sharper decline, current conditions slightly improved.
Argentina’s Leading Economic Index fell by 6.79% in December 2023 compared to the same time the year before. The average index from 1993–2023 was 0.19%, with a peak of 14.39% in May 2020 and a low of -9.98% in March 2020.
Commodities
Gold above $2,020/ounce, supported by a weaker dollar and safe-haven demand. Uncertainty on Fed rate cuts. Waller suggests delay, citing inflation concerns. Geopolitical tensions in the Middle East also increase gold demand.
Week 9 focus: PCE price indexes, income & spending data, Fed speeches, ISM Manufacturing PMI, GDP, durable goods orders, consumer sentiment, home sales. International: inflation rates, GDP growth rates, manufacturing PMIs, interest rate decision from New Zealand, and unemployment rates for key countries.
SVET Markets Weekly Update February 12th–16th, 2024
On Week 7, monthly inflation rose higher than expected, but the economy continued to show signs of slowing down, confusing traders and leading to a sideways move on stock markets. The Euro Area economy stagnated, while Japan entered a recession. Oil prices increased due to geopolitical tensions and the OPEC+ response. In the crypto markets, BTC hovered around 52K, and traders’ attention switched to ETH after Templeton filed for a spot Ethereum ETF.
Monday
On Monday, stocks were mostly flat near record highs ahead of the CPI release, as earnings season continued. The S&P 500 and Nasdaq 100 hit ATH again and then slightly declined. Investors awaited remarks from Fed officials for signs of potential interest rate cuts. On global markets, EU stocks reached record highs, following North American indexes, while oil and gold prices held steady, awaiting Fed comments and inflation data. The cryptocurrency market saw significant gains, with Bitcoin adding 4% and surpassing $50K for the first time since December 2021. Major altcoins followed suit, with Polygon and Ethereum leading the charge, each increasing by about 5%.
Details
The budget deficit decreased to $22 billion in January 2024, compared to $39 billion the previous year, due to record-high receipts and lower tax refunds. Outlays grew by 3% to $499 billion, while receipts increased by 7% to $477 billion. The deficit for the first four months of the fiscal year rose by 16% to $532 billion.
Crypto
Franklin Templeton files for spot Ethereum ETF, joining other asset managers seeking SEC approval. The ETF will reflect the price of ether, with Coinbase and Bank of New York Mellon as custodians. ERC-404 token market cap experiences high volatility, plunging 30% before partially recovering. The ERC-404 standard combines ERC-20 (fungible) and ERC-721 (non-fungible) token standards, linking tokens to NFTs.
Torrevieja, a coastal city in Spain, has initiated a plan to become Europe’s first “crypto-friendly” city. The Association of Small and Medium-sized Merchants of Torrevieja (APYMECO) and the Torrevieja City Council aim to transform the city into a blockchain hub through a three-phased plan, focusing on cryptocurrency trade, sustainability, and job creation.
World Markets
European stocks closed higher on Monday as markets evaluated new corporate earnings and anticipated macroeconomic data. The Eurozone’s Stoxx 50 and Stoxx 600 reached record highs. Financial companies led the gains, with Axa and UniCredit advancing close to 2%. Consumer goods also advanced, with strong performances by LVMH and L’Oreal. Saab jumped nearly 6%, while Siemens Energy advanced 5.7%.
India’s industrial production grew by 3.8% in December 2023, exceeding expectations, with manufacturing output increasing by 3.9%. Mining and electricity output slowed compared to the previous month. From April to December, industrial production rose by 6.1%. Manufacturing production averaged 5.82% growth from 2006 to 2023.
The Philippines saw a 27.8% year-on-year increase in net foreign direct investment (FDI) to a near two-year high of USD 1.05 billion in November 2023, driven by an expansion of net inflows for net debt instruments. Inflows dropped for equity capital (-52.5% to USD 0.09B). Equity capital mainly came from Japan and the United States, channeled to manufacturing, real estate, and construction industries.
Russia’s trade surplus in 2023 plunged by 2.4 times to USD 140 billion, with exports down 28.3% to USD 425.1 billion and the share of mineral products declining to 61.2%. Destinations shifted, with decreases to European (-68%) and South/North American (-40.4%) countries, but increases to Asian (5.6%) and African countries (42.9%). Imports rose by 11.7% to USD 285.1 billion. Among imports, machinery, equipment, and vehicles increased by 5.1 percentage points to 51.1%, and chemical products by 2.8 percentage points to 19.5%.
Currencies
The dollar index (DXY) rose slightly above 104 as investors awaited consumer inflation data, which may indicate interest rate trends. January’s headline inflation is expected to fall to 3%, while the core rate may reach 3.8%.
Commodities
WTI crude at $76.92/bbl, supported by Middle East tensions, but global supply and demand concerns limit further gains. Gold prices were subdued around $2,020 an ounce on Monday as many Asian markets were closed for holidays. Investors are awaiting key US inflation data that could impact interest rate expectations. Despite a smaller than expected increase in December CPI, gold did not gain ground. Markets still expect a possible Fed rate cut in May.
Tuesday
Yearly inflation continued to decrease (3.1%), but monthly core inflation rose higher than expected, coupled with technical indicators showing over-bought levels, causing markets to overreact, leading to all major stock indexes dropping sharply. Economic sentiments in the EU improved but the Euro hit a 3-month low due to lower chances of early rate cuts by the Fed. The crypto market was also in red, with BTC correcting more than 1% and ETH remaining flat. Litecoin (-6%), BCH (-4%), and Chainlink (-3%) declined more than the rest of the altcoin market. Additionally, CoinBase reported that 8.2 million residents (27% of all adults) in CA own crypto.
Details
Core consumer prices rose by 0.4% in January 2024, the highest increase since April 2023, driven by higher costs in shelter and transportation services. This challenges disinflation trends and supports FOMC hawks. The acceleration in costs of shelter and transportation services drove the increase, offsetting slowing inflation for goods such as used cars and trucks, apparel, and medical care commodities.
The annual inflation rate in the US decreased to 3.1% in January 2024 from 3.4% in December, although it was higher than market forecasts of 2.9%. Energy costs notably dropped, with gasoline declining by 6.4%, utility (piped) gas service falling by 11.8%, and fuel oil sinking by 14.2%. However, prices increased at a softer pace for food, shelter, new vehicles, apparel, medical care commodities, and transportation services, while the decline for used cars and trucks continued.
The NFIB Small Business Optimism Index dropped to 89.9 in January 2024, the lowest in eight months, due to labor quality and inflation concerns. Twenty percent of owners cited inflation as their top problem, while 39% reported unfilled job openings. Plans to create new jobs also softened, with a net 14% planning to hire in the next three months.
Crypto
The Blockchain Association (BA) opposes Senator Elizabeth Warren’s proposed Digital Asset Anti-Money Laundering Act (DAAMLA). A letter from 80 individuals, including former U.S. government and military officials, argues that digital assets are vital for the nation’s strategic advantage. The letter suggests DAAMLA would be ineffective against foreign illicit actors and could hinder innovation and economic growth in the digital asset industry. Additionally, it refutes Senator Warren’s claim that former defense, national security, and law enforcement officials were attempting to obstruct digital asset regulation.
Spot Bitcoin exchange-traded funds (ETFs) have experienced daily net inflows of approximately $125M during their first month. Grayscale’s Bitcoin Trust (GBTC) has seen significant outflows, but it remains a prominent player in the new product offerings. According to a 2023 research report 8.2M residents in California, accounting for 27% of the state’s adult population, own digital assets. Nearly 80% of these digital asset holders would be more likely to support pro-crypto political candidates. 40% of California crypto owners were aged between 18 and 34. Nationally, a majority (51%) of Millennials and Gen Z adults say they are likely to support crypto-friendly candidates in 2024.
Coinbase reported a 12% decline in its third quarter transaction revenue, amounting to $289 million. Despite this decrease, the company’s adjusted EBITDA, which represents earnings before interest, taxes, depreciation, and amortization, remained positive for the third consecutive quarter, totaling $181M. Some analysts predicted a 16% increase in Coinbase’s quarterly revenue, projecting it to rise from $674M to $784M YoY.
World Markets
The ZEW Indicator of Economic Sentiment for the Euro Area rose to 25 in February 2024, exceeding expectations. Analysts were split on economic activity forecasts, while the current economic situation improved. Inflation expectations decreased.
Currencies
The euro weakened to $1.07, its lowest since November 13th, as investors opted for the strong dollar after hotter-than-expected US inflation data reduced expectations of early Federal Reserve interest rate cuts.
Commodities
Mining production in South Africa increased by 0.6% YoY in December 2023, with growth in PGMs, coal, chromium, nickel, and non-metallic minerals. However, output declined for iron ore, metallic minerals, manganese ore, and gold. Monthly production decreased by 4.2% in December. Tin futures rose to around $25,500 per tonne due to supply risks. Delays in mine approvals in Indonesia and uncertain production in Myanmar led to reduced exports. Partial mining activities in Wa State may resume after the Chinese New Year, impacting the world’s 3rd largest tin producer.
Wednesday
The PPI came in lower than expected, and stocks rebounded with the Nasdaq climbing more than 1%. Semiconductors and crypto-related stocks, like Nvidia (+2.5%) and Coinbase (+14%), led gains. In the world’s markets, the Euro Area reported stagnation, as palladium prices rebounded from a low base. Crypto continued to surge as BTC increased by +4%, surpassing 52K and the $1T market cap mark. On the altcoins side, Avalanche (6%), Cardano (+6%), ETH (+5%), and Polygon (+5%) are leading the pack. In other news, the BlackRock ETF received an additional $0.5B in just one day.
Details
Producer prices (PPI) decreased 0.2% monthly in December 2023, more than initially estimated, while core PPI dropped 0.1%. Excluding food, energy, and trade, producer prices rose 0.2%. The BLS adjusts its seasonal factor annually to account for price movements. November and October figures were unrevised. Job openings rates fluctuated in several states in December, with some increasing and others decreasing. Nationally, the job market remained relatively stable with little change in job openings, hires, and separations rates.
Crypto
Bitcoin ETFs are seeing strong demand, with BlackRock’s iShares Bitcoin Trust receiving $493 million in inflows on a single day — this Tuesday — and now managing $5.1 billion in assets. This suggests strong investor interest in gaining exposure to Bitcoin through traditional investment vehicles.
World Markets
Luis de Guindos (ECB VP) speech summary: Economic activity stagnated in Q4 2023, with inflation driven by energy effects. Underlying inflation indicators are declining, reflecting a disinflationary trend. Financial stability concerns arise, especially for highly indebted corporates and real estate sectors. The Euro area banking system remains resilient, but vigilance is needed.
In Q4 2023, the Euro Area economy stagnated due to high inflation, borrowing costs, and weak demand. Germany contracted by 0.3%, while France’s GDP stalled. Spain and Italy saw growth, and the Dutch economy ended its three-quarter contraction. The Eurozone economy advanced by 0.1% year-over-year, and full-year GDP growth in 2023 was 0.5%, a significant decline from previous years.
Industrial production in the Euro Area rose 2.6% monthly in December 2023, exceeding expectations and marking the largest gain since August 2022. Durable consumer and capital goods output rebounded, but energy, non-durable consumer, and intermediate goods production decreased. Annual industrial activity increased 1.2%, the first yearly rise in ten months.
Commodities
Palladium prices rose above $900/ounce due to bargain buying amid recent price declines. Support also came from Eurozone avoiding recession and industrial production rebounding. Despite a surplus expected this year, major producers — South Africa (80th metric tons), Russia (74th mt.), Canada (17th mt.) and the US (14th mt.) — are maintaining output levels. Declining demand for catalytic converters due to EVs has impacted the market on the downside.
Thursday
On Thursday, stocks rose, with 10 out of 11 S&P sectors finishing higher, led by energy, real estate, and materials. Silver prices also rose. Treasury yields declined, and traders assessed weak retail sales data. The crypto market is mostly flat, with BTC at $52K and ETH at $2.8K, both slightly in the green.
Details
Retail sales fell 0.8% in January 2024, the largest drop since March, surpassing forecasted declines. Several sectors, including building materials and gasoline stations, saw significant decreases, while furniture stores and food services saw increases. The NY Empire State Manufacturing Index improved to -2.4 in February 2024 but remained in contraction territory. New orders and unfilled orders declined, while shipments rose. Employment was steady, and input price increases accelerated. Businesses were cautiously optimistic about the next six months.
The Philadelphia Fed Manufacturing Index rose to 5.2 in February 2024, surpassing forecasts. New orders remained negative, while shipments turned positive. Employment fell to its lowest since May 2020. Price increases were reported but remained below long-term averages. Indicators suggest optimism for growth in the next six months.
Crypto
Chainalysis reported 29.5% drop in crypto sent to launder-friendly services from $31.5 billion in 2022 to $22.2 billion. The decline in laundering outpaced the overall transaction decrease, indicating a potentially cleaner crypto landscape. Gibran Rakabuming Raka, son of Indonesia’s president, won the local elections with 60% of the vote, indicating the public’s growing embrace of digital technologies. His campaign promoted blockchain, crypto, AI, and cybersecurity, aligning with Indonesia’s goals to become a digital leader and bridge the divide.
World Markets
Peru’s GDP contracted by 0.74% in December 2023, against expectations. Declines were seen in fishing, financial & insurance, and manufacturing. Growth slowed in agriculture and mining, while utilities and accommodation & restaurants grew faster. The GDP for 2023 decreased by 0.55%. Tunisia’s economy contracted for a second straight quarter entering a technical recession, with declines in oil refining, manufacturing and agriculture offset slightly by growth in services like hotels, restaurants and finance; quarterly GDP rose slightly but annual growth was just 0.4% in 2023.
Commodities
Silver prices rose to $23/ounce due to Fed rate cut possibility. Retail sales fell, while jobless claims dropped. Chicago Fed Goolsbee expressed caution about waiting too long before cutting rates, citing inflation data and 2% target.
Friday
The PPI unexpectedly increased, and major stock indexes fell on concerns about delayed Fed rate cuts. The real estate, tech, and consumer discretionary sectors underperformed. The Japanese economy entered a technical recession, while oil prices increased on OPEC+ decision. Soybean prices hit a 2-month low after an increased stocks forecast. The crypto market continued its sideways movement, with BTC (+52K) and ETH (+2.8K) wavering at their 2-year highs. At the same time, altcoins’ bulls used that pause to push major coins higher, with BNB, Algorand, and Polygon continuing their 2-day surge by adding another +2.5%.
Details
Producer prices (PPI) rose 0.3% in January, the largest monthly increase in five months, driven by a 0.6% surge in service costs. Goods prices fell 0.2%, with gasoline dropping 3.6%. Year-on-year, PPI increased 0.9%, while core PPI rose 0.5% monthly and 2% annually, both above estimates. Housing starts dropped 14.8% in January 2024 to 1.331 million, the lowest since August, missing forecasts. Single-family starts fell 4.7%, and multi-unit starts plunged 35.8%. All regions experienced declines.
The University of Michigan consumer sentiment rose to 79.6 in February, a fresh high since July 2021 but below forecasts. Expectations improved, while current conditions dipped slightly. Inflation expectations for the year ahead increased to 3% and remained at 2.9% for the five-year outlook.
World Markets
European stocks close higher, with the Eurozone’s Stoxx 50 reaching a 23-year high and the broader Stoxx 600 jumping to ATH. Tech shares, led by ASML, and industrial companies, including Safran, BASF, and Air Liquide, fueled the gains. Additionally, ECB member de Galhau emphasized the rationale for an initial interest rate cut, while NatWest surged over 7% following strong results and a new CEO appointment.
Japan’s Q4 2023 GDP unexpectedly shrank by 0.1%, missing forecasts and leading to a recession. Private consumption declined for the third consecutive quarter, capital expenditures were muted, and public investment decreased. However, net trade contributed positively due to stronger export growth.
The CBR kept its key rate at 16% in February, halting a series of hikes. Inflation has eased to 6.6% annually, and the CBR predicts it will fall below 4.5% by year-end, nearing the 4% target. Despite this, inflation risks remain, and the economy, impacted by sanctions and labor shortages due to mobilization, grew by 3.6%, above expectations.
Commodities
WTI crude futures hit a 3-month high at $79.19, supported by Middle East tensions, OPEC+ supply cuts, and a weaker dollar. However, the IEA warned of slowing global oil demand, revising its 2024 forecast downward, and anticipating a larger supply increase.
Soybean futures are bearish at $11.7 per bushel, near the lowest levels since December 2020, due to increased US grain stocks forecast. Weakened Chinese demand, strong South American competition, and favorable rainfall in Argentina and Brazil contribute to the negative outlook.
On Week 8, investors will focus on FOMC minutes and global flash PMIs, including the US, Eurozone, Germany, France, UK, Japan, and India. Germany’s Ifo Business Climate, Turkey’s interest rate decision, and Canada’s inflation rate will also be closely watched.
SVET Markets Weekly Update (February 5–9, 2024)
Summary: During Week 6, major stock indexes reached ATH with the S&P 500 marking 14 consecutive weeks of gains, a 50-year unprecedented record. Commodities, including oil, gold, and coffee, were on the rise due to the developing Middle East situation. Crypto markets rebounded with major alts leading the charge, and BTC shot over $47K, again.
Monday
Stock indexes closed lower as upbeat PMI data and Fed comments dampened hopes of a March rate cut. Meta declined on profit taking, Boeing dropped due to weaker outlooks after reworking 50 737 Max jets, Nvidia hit ATH while Tesla dropped to a 10-month low. On the global scene, Eurozone PMI rose while PPI dropped 10% YoY. Cocoa continues to reach record highs on lower crops. The crypto market is mostly in red, with BTC declining 1% and ETH remaining flat. Only ChainLink continued to gain, adding another 5%, and Polkadot followed with a 1% increase. Additionally, data showed that the Web3 industry funding rebounded in 2023, with a total of $9 billion.
Details
The January Composite PMI was confirmed at 52.0, up from 50.9 in December, signaling the fastest expansion since July 2023. Growth was driven by services as manufacturing contracted again. New orders increased at the fastest pace in 7 months despite falling export orders. Input price inflation eased to the lowest level since May 2020, while business confidence hit a 20-month high.
Vehicle sales declined by 6.9% to 15.00 million annualized units in January, down from December’s revised figure of 16.12 million. This follows an average of 14.79 million units from 1976 to 2024, with a record high of 21.71 million in October 2001 and a low of 8.48 million in April 2020.
Crypto
The Web3 industry rebounded strongly in 2023. Total funding reached $9.043 billion, with enterprise infrastructure and wallets favored. Ethereum’s developer numbers grew by 66%, and compliance and social sectors gained importance. HashKey Capital led investments in infrastructure, DeFi, and other sectors in the Asia-Pacific region.
World Markets
The Eurozone Composite PMI rose in January to a 6-month high but still below 50, indicating a slower decline in business activity. Still, France and Germany’s PMI are below 50 and degrading. New orders fell at the slowest rate in 7 months, helping stabilize employment in the Eurozone. Both input costs and output prices increased at their fastest pace in 8 months while future growth expectations improved to their strongest in 9 months.
Brazil’s Composite PMI rose to 53.2 in January 2024, marking the fastest expansion in 15 months. Both services and manufacturing activity accelerated, leading to a sharp increase in sales. Job creation also picked up pace, with manufacturing companies hiring more than service providers. Input cost pressures eased while charge inflation quickened, with services seeing higher inflation rates.
Commodities
Cocoa futures hit record highs above $5,100 per tonne amid worries that harsh Harmattan winds are severely damaging crops in top producer Ivory Coast, potentially reducing yields for the April mid-crop. Ivory Coast has halted 2024/25 forward sales as shipments so far this season are down 36%. Poor crops in Ivory Coast and Ghana are expected to lead to a large 2023/24 global cocoa deficit.
Tuesday
NY Fed data showed that consumer debt hit a record, stocks were mixed, with the S&P 500 flat, the Nasdaq down, and the Dow Jones up. Investors adjusted their expectations following chairman Powell’s remarks. Earnings season continued, with Palantir surging 30% on profit outlook. Internationally, Euro area retail sales decreased by -1.1%, and Argentina’s industrial production slumped to a 2-year low. The crypto market is mostly on the rise, with BTC showing a small gain, while ETH added 3%. Polygon increased by +2%, and Uniswap jumped +4.5%. Monero crashed by -35% after Binance announced that it was delisting XMR. Also, the Nigerian Naira corrected sharply (-10%) to both BTC and ETH after devaluing almost 40% relative to those currencies during a month, due to the general weakness of the Naira (NGN/USD is up 30% YoY).
Details
Consumer debt hit a record high of $17.50 trillion in Q4 2023, increasing by $212 billion (1.2%) from the previous quarter. Mortgage balances rose to $12.25 trillion, while credit card debt surged by 4.6% to $1.13 trillion. Auto loan balances increased to $1.61 trillion, and other balances (including retail cards) grew by $25 billion. Student loan balances were effectively flat at $1.6 trillion. Non-housing balances grew by $89 billion. Delinquency rates and the transition into troubled status both increased amid the debt surge.
Crypto
Solana, after almost a year of uptime, suffered a major outage halting transactions. This prompted criticism of its scalability. Developers released a patch and requested validator operators to update, but the network restart was still ongoing.
World Markets
In December 2023, Euro area retail sales decreased by 1.1% MoM, surpassing market expectations of a 1% fall. High inflation and borrowing costs negatively impacted demand, causing sales of food, drinks, and tobacco, as well as non-food products, to decline. Online trade also experienced its largest decrease since July 2021. Yearly, retail sales contracted for the 15th consecutive month with a 0.8% decline.
Argentina’s industrial production fell 12.8% YoY in December 2023, the biggest decline since May 2020, with seven straight months of decline. Key sectors like basic metals, machinery, and food and beverages saw significant drops. Monthly, it decreased 5.4%, extending November’s 0.6% fall.
In January 2024, total sales of new cars and light commercial vehicles in Russia reached 65,200 units (83,000 including alternative supply channels). Sales growth compared to January 2023 was 64%. Market dynamics were influenced by factors such as market saturation in the crossover segment and the impact of a significant increase in the key rate, disposal fee, and other factors, including seasonal ones, leading to customers postponing new car purchases.
The Central Bank of Kenya raised its benchmark rate to 13% to anchor inflation expectations and address exchange rate pressures. Inflation climbed to 6.9% in January 2024, nearing the upper end of the target range, while the economy is expected to remain strong in 2024.
Commodities
Gold remained near $2,020 an ounce as economic data and the Fed’s hawkish stance reduced expectations of interest rate cuts. Stronger-than-expected US services sector growth and job additions, along with Jerome Powell’s reaffirmation of no March rate cut, have lowered the odds for rate cuts this year, impacting gold’s price.
Wednesday
US mortgage applications increased, indicating an improving economy and higher Fed rates for longer, but stocks climbed on strong corporate reports, with the S&P 500 hitting ATH and Nvidia, Microsoft, and Meta showing significant gains. Internationally, China’s vehicle sales slowed while Japan’s leading economic index rose. The crypto market was in a mildly positive mood with Algorand increasing 3% and BTC showing less than a 1% rise. Monero recovered 30% of yesterday’s dump, to $133.
Details
Mortgage applications increased 3.7% in the week ending February 2nd, the fourth rise this year, despite a minor 2bps rise in average rates to 6.80%. Refinance applications jumped 12.6%, while home purchase applications fell 0.6%, following a weekly decline.
Crypto
MicroStrategy has consistently bought Bitcoin since 2020, becoming the global leader in corporate Bitcoin holdings. In 2023 and 2024, it added more to its stash, purchasing 850 bitcoins for $37.5 million in January, bringing its total to 190,000 BTC, worth $8.41 billion. Galaxy Digital Holdings holds 17,518 bitcoins in comparison, valued at $775 million.
A study found crypto investors earned $887 on average in 2023, up greatly from 2022 when the market fell and investors lost over $7,000 on average amid crypto firm failures and a bear market.
World Markets
China’s vehicle sales increased 47.9% YoY to 2.44 million units in Jan ’24, with NEV sales making up 29.9% and growing 78.8% YoY. However, both total and NEV sales decreased from Dec ’23. Passenger vehicle sales dropped 37.9% YoY and 40.4% MoM, the worst since the early 2000s, due to a housing slump and market downturn.
Japan’s leading economic index rose to 110.0 in Dec ’23, above forecasts, due to falling unemployment and improved consumer morale. This is the highest reading since Oct ’22, rebounding from a 7-month low of 108.1 in Nov ’23. Consumer confidence also reached a 1-year high in Dec ‘23.
France’s trade deficit expanded to €6.83 billion in Dec ’23, surpassing expectations of €6 billion. Exports increased 1% to €50.2 billion while imports rose 2.5% to €57 billion. The deficit in investment and intermediate goods rose, but the energy shortfall narrowed. The deficit for 2023 decreased by €63.1 billion due to lower imports and higher exports of energy and manufactured goods.
The Reserve Bank of Australia left its cash rate at 4.35% in its 2024 meeting, following a 425bps rate hike to curb inflation. Inflation remains high, but cost pressure is easing. Future tightening depends on data and risks, with a focus on returning inflation to the 2–3% target range by 2025. The board will monitor global and domestic trends, maintaining the Exchange Settlement rate at 4.25%.
Thursday
US unemployment claims dropped, but major indices closed higher from the previous session with the S&P 500 reaching a new ATH at 5,002. Traders seem to be focusing on strong earnings, discounting the higher-for-longer narrative. On the world’s markets, in South Africa, manufacturing production rose, and cocoa continued to soar due to poor harvest expectations. Cryptocurrency-wise, Cardano saw a 5% gain, while BTC remained barely in the green, with ETH hovering near 2,4K in red, following a mini-rally at the start of this week.
Details
Unemployment claims fell slightly to 218K (-9K) after a revise-up, close to expectations, yet still above the past two-month average. Continuing claims dropped by 23K to 1.87m. Despite this, the labor market slowdown is evident with the four-week average up 3,750. States like Oregon, Ohio, and California saw decreases, but Missouri and Texas had increases.
World Markets
South Africa’s manufacturing production rose 0.7% YoY in December 2023, the slowest growth in three months. Major declines from vehicle parts, chemicals, and textiles were offset by increases in beverages, petroleum, and paper. Monthly output decreased by 1.7%, with a 0.4% rise for the full year.
Commodities
Cocoa futures rose for 7% in 24 hrs hitting a record $5,500/ton as supply concerns grow due to low stocks in top producers Ivory Coast and Ghana. Poor weather and crop diseases in the region have led to a 39% drop in shipments from Ivory Coast and a 35% decrease in Ghana’s arrivals, causing prices to soar.
Friday
Stocks closed mixed, with the S&P 500 and Nasdaq reaching ATH once again, driven by gains in megacap companies. The Dow, however, fell due to declines in the energy and industrial sectors. The revised December Consumer Price Index (CPI) showed minimal change, supporting the ongoing disinflation. Earnings results showed significant shifts, with megacap companies like NVIDIA up and PepsiCo, Pinterest, and Expedia down due to disappointing reports. In global markets, European stocks closed near record highs, and oil prices rose due to the worsening situation in the Middle East. The crypto market also saw gains, with Avalanche (+6%) and Bitcoin (+4%) leading the charge. Uniswap and Cosmos increased by 3%, while Ethereum and Cardano added 2%. Monero continued to retreat, decreasing by 5%, after correcting by 30% post-crash. Among major currency pairs, BTC-to-Turkish Lira and BTC-to-Brazilian Real outperformed the rest of the market with a 3% increase.
Details
Core consumer prices, excluding food and energy, remained steady with a 0.3% increase in December 2023, matching November’s figure and market forecasts. Service prices excluding energy services slowed, while shelter and medical care costs rose more. Goods prices saw a rebound in apparel, new vehicles, and alcoholic beverages, but used cars, medical care commodities, and tobacco dropped.
World Markets
European stocks closed near record highs, with the Stoxx 50 hitting a 23-year high and Hermes performing well after strong sales results, but L’Oréal fell after below-forecast sales. Germany’s inflation hit a two-year low of 2.9% in January.
Italian industrial production rose 1.1% MoM in December 2023, beating expectations and recovering from a revised 1.3% fall in November. Output increased for consumer, capital, and intermediate goods, while energy output fell less sharply. Yearly output fell 2.1%, the smallest decline in four quarters, and 2023 saw a 2.5% drop compared to a 0.4% rise in 2022.
Currencies
The Russian ruble traded near 90 per US dollar, its lowest level in a month, pressured by weakening seasonal tax factors and the central bank head signaling interest rate cuts in 2024 while disagreements between the bank and government on capital controls added uncertainty.
Commodities
Wheat futures dropped to $5.9, near three-week lows, due to higher global supply projections and lower US consumption. The USDA’s WASDE report showed increased global wheat production, particularly in the Middle East, reducing imports for the top importer. Russia’s record-high wheat production, near 91 million tons, and near-record exports signal a supply surge. US demand fell due to reduced food demand.
WTI crude futures closed at $76.84, up 6% and 3% from previous days, due to Middle East geopolitical tensions, Israel’s ongoing operations in Gaza, and the US drone strike in Baghdad, affecting oil demand. US gasoline inventories dropped dramatically, while crude stocks rose, contrasting market expectations.
I try to avoid discussing political topics unless they directly impact the price levels of key asset groups such as stocks, commodities, and currencies, including cryptocurrencies, which I monitor daily. However, I sometimes can’t resist sharing my thoughts. Today is one of those days. During the past week, three Boomers (two of whom happen to be in charge of thermonuclear weapons) and the head of a large resource-producing country delivered key speeches. I won’t name them to avoid hurting anyone’s feelings. Use your imagination, pls.
One of these Boomers, who previously demonstrated a strong presence of mind and character, is now showing obvious signs of physical decay, putting everyone, even their most loyal supporters, in a difficult position trying to justify their continued presence in power.
At the same time, separating this relic of the past era (as well as his supporting cohort) from the instruments of power they love to wield is an insurmountable task. This must raise a fundamental observation in most minds: the current, hyper-centralized governance system is no longer adequate for our technological civilization. Instead, it has fueled a strong desire to replace one relic with another.
The second Boomer’s public speech, addressed to a group of journalists, demonstrated a remarkable resolve in following a path that, although substantiated by reasonable assumptions, has already led to the unimaginable suffering of countless innocent people, and surprisingly, no one can do anything about it. I am sure that the majority would argue with me that the overly centralized governance system is not one of the major causes of this.
The third Boomer, by chance does not possess a suitcase with a red button to press, but he is in charge of the economy, which has been in decline for almost two decades, despite this individual holding power all that time. However, his speech delivered in front of a large body of people’s representatives contained nothing but new empty promises to improve people’s lives.
It all raises the question: why still maintain such drastic centralization of power when its possessors cannot do much good for any of us during decades but can do almost unlimited harm to everyone within a few minutes?
Evidently (not to majority, of course), those systems were created to keep us under the control, like animals in a zoo, of a few megalomaniacs. Sure, so-called “social scientists” would give you thousands of reasons why the centralized system of governance is our “natural state”. Otherwise, without that control, we all get crazy and start exterminating each other. It’s just “human nature” they say.
That is what we have heard from them for the past 200 years or so, yet it was governments that started to exterminate us in hundreds of millions using the latest advances in technologies — people by themselves are much less ambitiously bloodthirsty than governing bureaucrats.
Not even the largest crowd of flesh-eating monsters are able to do so much harm as one indistinguishable bureaucrat with a right button to push. After 20th centuries global wars it has become an indisputable fact. Still, people watch thrillers and vote to place new rulers on top to protect them from imaginary threats and to expose them to the very real and momentary extermination.
Until when?
On Week 7, investors will track inflation, retail sales, Fed speeches, and earnings from Coca-Cola, Airbnb, among others. Meanwhile, the UK, Japan, and others report Q4 GDP, inflation, and unemployment. International highlights include UK and India’s inflation, Switzerland’s unemployment, and Germany’s ZEW sentiment.
]]>UPDATED March 16th 2024. Who offers the best crypto interest rates? With the growth of DeFi & CeFi applications, crypto lending, margin exchanges, and stakeable cryptocurrencies over the last few years, it can be difficult to know where the best crypto yields for your idle capital are. Following on from our guide to crypto yield farming, this survey looks into the major crypto lending platforms and examines the different interest rates offered by them.
First, an understanding of the difference between ‘crypto lending’ and ‘crypto borrowing’ in the context of this article is important. If you are lending in the scenarios below you are loaning your assets to the platforms featured with the expectation that you will earn interest on your crypto assets. Your goal is the return of your original sum, with earned interest. This article does not explore crypto borrowing – where you would borrow assets (or fiat in some cases) from a platform, which you would be required to repay – with additional interest. For the best crypto borrowing rates check here.
The question of which is the best crypto lending platform is open to debate – as each has its own approach and processes – but certainly annual interest rates paid are a good place to start. All interest rates were recorded on March 16th 2024 and are subject to change. A rate of zero on a specific platform means the coin is temporarily unavailable there. It does not mean 0% interest. Rates displayed are typically maximums and may come with additional platform terms & conditions.
USDC |
DAI |
USDT |
USDP |
TUSD |
BUSD |
||
12%
|
12%
|
12%
|
0%
|
12%
|
12%
|
||
2.05%
|
1.96%
|
–
|
–
|
–
|
–
|
||
14%
|
14%
|
16%
|
14%
|
14%
|
–
|
||
18.4%
|
–
|
6.4%
|
–
|
–
|
–
|
||
5.52%
|
13.43%
|
15.61%
|
7.56%
|
12.66%
|
–
|
||
9.5%
|
–
|
–
|
–
|
–
|
–
|
||
125.23%
|
6.68%
|
8.49%
|
–
|
–
|
–
|
||
13.83%
|
14.85%
|
4.82%
|
–
|
–
|
–
|
||
8.2%
|
–
|
8.2%
|
–
|
–
|
–
|
||
0%
|
4.5%
|
4.5%
|
2%
|
–
|
–
|
||
5%
|
–
|
5%
|
–
|
–
|
–
|
BTC |
ETH |
WBTC |
LINK |
UNI |
TRX |
YFI |
SOL |
DOT |
ADA |
||
7%
|
7%
|
–
|
9%
|
9%
|
7%
|
7%
|
–
|
–
|
7%
|
||
–
|
3.14%
|
2%
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
||
7%
|
8%
|
–
|
7%
|
–
|
–
|
–
|
8%
|
15%
|
8%
|
||
3.2%
|
6%
|
–
|
0.88%
|
0.88%
|
0.88%
|
–
|
0.88%
|
0.88%
|
0.88%
|
||
–
|
0.05%
|
0.01%
|
0.11%
|
0.72%
|
–
|
0.01%
|
–
|
–
|
–
|
||
1%
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
||
–
|
0.01%
|
0.25%
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
||
–
|
1.75%
|
0.08%
|
0.01%
|
0.01%
|
–
|
–
|
–
|
–
|
–
|
||
6.5%
|
6.5%
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
||
4%
|
4%
|
–
|
–
|
–
|
–
|
–
|
5.5%
|
9%
|
3.5%
|
The other side of lending is of course borrowing. If you are interested in taking a loan out (for USD for example) many of the providers above also provide that service. Check here for the latest borrowing rates.
Most major Lending and borrowing protocols across both CeFi and DeFi require borrowers to lock up an asset in order to take out a loan. These types of loans are called collateralized loans.
Collateralization is a borrower’s commitment to pledge a number of assets as a means for a lender to recoup their capital in the instance that the borrower defaults on the loan. If a borrower continually missed payments on a loan obligation then the lender has the right to possess the collateral pledged in the case that the loan defaults.
Collateralized, or more specifically ‘overcollaterized loans’, are at the core of efficiently operating DeFi lending markers. DeFi lending protocols enable open, permissionless, and pseudo-anonymous financial services. There are no credit score requirements for borrowers and generally no formal KYC or AML requirements.
In order to maintain a balance between open access and systemic stability the value of the collateral that needs to be pledged for DeFi loans has to exceed the value of the loans. If for example, a DeFi user wants to directly take out a USD100 DAI loan on Makerdao, they need to put up at least USD150 worth of Ethereum.
Borrowing from DeFi protocols can often be a precarious and time-intensive process that goes beyond simply paying back interest in installments.
The loan-to-value ratio (LTV) needs to be carefully monitored to ensure that the collateralization requirement that was agreed upon before the loan was executed is maintained. Maintaining this LTV ratio is made more difficult if borrowers put up volatile assets like ETH as collateral. If the value of ETH changes suddenly in US dollar terms, loans can be liquidated very quickly and borrowers are not protected by mechanisms that exist like loan insurance.
For these reasons, due to the complex nature of unique specific DeFi protocol agreements that go beyond interest rate payments, BNC has chosen not to include details around DeFi protocol borrowing rates.
These days yield optimization platforms like Yearn.finance exist. They use the Ethereum blockchain’s capabilities to facilitate programmable money to make it easier for users to find optimal interest rates automatically. Before Yearn, users seeking to maximize their yields needed to manually move their stablecoins between lending protocols. A slow, labor-intensive process that Yearn aims to avoid.
The protocol works by creating pools for each asset that is deposited. When a user deposits their stablecoins into one of these pools, they receive yTokens that are yield-bearing equivalents of the coin that was deposited. If for example, a user deposits DAI into the protocol it will issue back yDAI.
Assets are automatically shifted between lending platforms in the DeFi ecosystem like Compound and Aave, where interest rates for deposited assets change dynamically. Every time a new user deposits assets into a pool on Yearn, the protocol checks whether there are opportunities for higher yield and rebalances the entire pool if necessary. At any time a user can burn their yDAI and withdraw their initial deposits and accrued interest in the form of the original deposit asset.
The protocol has evolved to offer more complex solutions that can efficiently maximize yields on user deposits. The yCRV liquidity pool built by Yearn on the Curve finance platform contains the following yTokens: yDAI, yUSDC, yUSDT, yTUSD and pays back a yCRV token that represents the index. Users can deposit any of the four native stablecoins into the pool and earn interest back from yield-bearing yCRV tokens. Depositors also earn trading fees from Curve for providing liquidity to other users of the platform.
]]>News of the first ICO on the Bitcoin Blockchain have been circulating online, resulting in extensive coverage in the media, and with both the game beta and the 10,000-strong NFT collection due for release in Q2, the team behind the project has set a rapid pace.
The final token price is $0.0404 and reflects the last pricing tranche, which is 169% higher for those who bought in stage 1 of the presale.
Put simply, Bitcoin Dogs is an NFT collection and a PVP game, with a carefully thought of unique concept.
Not only does it take inspiration from some of the most successful gaming projects we’ve seen (Axie Infinity, Xpet, and Bitcoin Cats), but it has also similar characteristics that saw historic prices from NFT collections like BAYC and CryptoPunks.
The 0DOG utility token is on BRC-20: a brand-new type of cryptocurrency tech built on Bitcoin. BRC-20 introduces an experimental fungible token standard using ordinal inscriptions on the Bitcoin blockchain, pushing the boundaries of digital asset tokenization.
Bitcoin Dogs has demonstrated the evident appetite with which new projects embracing the latest blockchain technologies can capture the imagination.
According to the company, token holders will be looking forward to the opportunity to see a second movement, given that the 10,000-strong Bitcoin Dogs NFT collection will be exclusively available for those holding 0DOG tokens and is due to launch in Q2 this year, effectively doubling down on the Q1 launch of the token.
According to the company, owning 0DOG tokens is a chance to own a piece of blockchain history as the first ICO of its kind. Immutable and unique, this can’t be replicated.
The traction and tongue-in-cheek power of the brand, as well as its long-term potential to influence both the blockchain gaming space and possibly revitalize the NFT market, have seen an outpouring of attention from the crypto community.
Invezz.com captured this sentiment by saying, “all of this makes Bitcoin Dogs our highest-rated token this year. The first BRC-20 presale won’t be the last, and the BTC blockchain could become the preeminent crypto ecosystem. Bitcoin Dogs is a great way to get in on the ground floor of this new wave of altcoins built on Bitcoin.”
Bitcoin Dogs boasts a 110,000+ strong X community and the team hopes that the project has captured enough attention from the ecosystem to start it’s journey.
Bitcoin Dogs is breaking new ground in the Bitcoin ecosystem. For the first time ever, NFTs, gaming, and new token types come together to offer the first ICO on the original Bitcoin blockchain. The truly permissionless immutability of Bitcoin is being harnessed to create the 0DOG token, while a play-to-earn (P2E) gaming experience and NFT collection are being developed exclusively for 0DOG holders.
0DOG is available to buy on the Bitcoin Dogs Website
Official Website | Whitepaper | Socials
Bitcoin Dogs
Bitcoin Dogs Team
[email protected]
Randcast is ARPA’s first product, an on-chain verifiable random number generation service with an easy-to-use Smart Contract SDK that can be directly integrated into DApps to provide out-of-the-box functionalities like rolling dice, shuffling an array, generating in-game item attributes based on probability, generating random in-game maps or dungeons, and deciding the probability outcomes of a lottery.
Using a random number in a smart contract is a common requirement. For example, a game may need to generate a random number to determine the lottery winner. However, the blockchain is deterministic, and the result of a smart contract is determined by the input. That is to say, a blockchain is a decentralized and trustless environment where the random number generation can be easily manipulated by any party in the network. e.g., if we use a block hash or timestamp as the source of randomness, the miners can manipulate it to their advantage by either withholding the block or manipulating the timestamp.
The solution is to use an external source of randomness. Randcast is a service that generates random numbers through a decentralized network and provides them to smart contracts. The process of generating randomness is both transparent and verifiable. It is facilitated by a group of nodes that utilize the threshold BLS signature scheme. Before returning the requested random number to the user’s smart contract, the randomness is verified on-chain by the Randcast Adapter smart contract.
Randcast and the ARPA Network solve another major issue with random number generation. Randomness generated by a single off-chain entity could potentially be tampered with or manipulated by that entity. Randcast solves this issue by using multiple nodes in the ARPA Network to generate randomness through BLS Threshold signature tasks, which means that no single node has the ability to manipulate the final randomness result.
Bitget VIP Link with BONUS 1000 USDT
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]]>
Craig Wright is not Satoshi.
Following the conclusion of closing arguments in the Crypto Open Patent Alliance (COPA) trial, Judge Mellor declared that Wright is not the author of the Bitcoin whitepaper nor the individual behind the pseudonym Satoshi Nakamoto.
The month-long trial presented “overwhelming” evidence against Wright’s assertions, according to the judge. He announced his intention to issue a detailed ruling outlining his conclusions, which refute Wright’s claims to have created the Bitcoin system or authored its initial software versions.
“I will make certain declarations, which I am satisfied are useful and are necessary to do justice between the parties. First, that Dr. Wright is not the author of the Bitcoin white paper. Second, Dr. Wright is not the person who adopted or operated under the pseudonym Satoshi Nakamoto in the period 2008 to 2011. Third, Dr. Wright is not the person who created the Bitcoin System. And, fourth, he is not the author of the initial versions of the Bitcoin software. Any further relief will be dealt with in my written judgment,” stated Judge Mellor.
The trial, which commenced in London on March 12, stemmed from a lawsuit filed by COPA against Wright, an Australian computer scientist who has claimed to be Nakamoto since 2016. COPA sought injunctive relief to prevent Wright from perpetuating his claims of being Nakamoto, citing allegations of document forgery in support of his assertions.
Founded in 2020, COPA aims to promote the adoption and advancement of cryptocurrency technologies while eliminating patents as barriers to growth and innovation. Its membership includes industry giants such as Coinbase, Block, Meta, MicroStrategy, Kraken, Paradigm, Uniswap, and Worldcoin.
The ruling marks a significant victory for COPA and its supporters, including Twitter founder Jack Dorsey and Coinbase. Justice Mellor’s decision also has implications for two other cases involving Wright, including one against Coinbase and Dorsey’s Block, which hinged on the outcome of this trial.
Wright declined to provide comment following the ruling.
Fascinating correspondence between Satoshi Nakamoto and his earliest known collaborator, Martti Malmi, was released as part of the COPA trial.
The unearthed emails offer fresh insight into the intentions of the mysterious Bitcoin creator. It seems that Satoshi was aware from the very beginning that the proof-of-work consensus algorithm was energy-intensive, and would be controversial. He wrote to Malmi that it would be “ironic if we end up having to choose between economic liberty and conservation.” Satoshi further wrote that Bitcoin can only be peer-to-peer “without a trusted third party. If it did grow to consume significant energy, I think it would still be less wasteful than the labor and resource-intensive conventional banking activity it would replace.”
The new Satoshi emails also revealed why the developer chose to cap Bitcoin’s supply at 21,000,000. “My choice for the number of coins and distribution schedule was an educated guess. It was a difficult choice, because once the network is going it’s locked in and we’re stuck with it. I wanted to pick something that would make prices similar to existing currencies, but without knowing the future, that’s very hard,” Nakamoto said.
“If you imagine it being used for some fraction of world commerce, then there’s only going to be 21 million coins for the whole world, so it would be worth much more per unit. Values are 64-bit integers with 8 decimal places, so 1 coin is represented internally as 100000000. There’s plenty of granularity if typical prices become small. For example, if 0.001 is worth 1 Euro, then it might be easier to change where the decimal point is displayed, so if you had 1 Bitcoin it’s now displayed as 1000, and 0.001 is displayed as 1,” Nakamoto wrote.
In the COPA trial, the identity of Bitcoin’s creator, Satoshi Nakamoto, was under scrutiny. Craig Wright, an Australian computer scientist, has long claimed to be Satoshi, a claim that has sparked widespread debate and legal action.
Wright’s assertion has led him to file lawsuits against developers and others in the Bitcoin community, aiming to establish intellectual property rights over the cryptocurrency. If successful, Wright could have potentially controled the development of Bitcoin’s codebase and dictated its usage terms.
The trial, initiated by the Crypto Open Patent Alliance (COPA), sought to refute Wright’s claim to being Satoshi. COPA’s challenge involves calling upon early Bitcoin collaborators, now prominent figures in the crypto world, to testify against Wright.
Witnesses included Adam Back, Mike Hearn, Martti Malmi, and Zooko Wilcox-O’Hearn, each an early contributor to Bitcoin’s development. Their testimonies dismantled Wright’s narrative by highlighting inconsistencies and disputing his account of Bitcoin’s early days. The trial also delved into the technical and philosophical underpinnings of Bitcoin, with discussions on its creation, the intentions of its founder, and the implications of Wright’s claims on the cryptocurrency’s future.
Wright’s loss protects the decentralized ethos of Bitcoin. An alternative outcome would have had far-reaching consequences for the cryptocurrency community, potentially reshaping the governance and development of Bitcoin.
Luckily sanity has prevailed, Craig Wright is not Satoshi.
The reason why Craig Wright has been able to claim he is Satoshi for years is that one of the many intriguing ideas behind the best-known and most decentralized cryptocurrency is the fact that nobody really knows for sure who created Bitcoin – and speculation continues to this day.
Bitcoin (BTC) first entered the public domain in October 2008 when someone calling themselves Satoshi Nakamoto sent a paper called “Bitcoin: A Peer-To-Peer Electronic Cash System” to an obscure Cypherpunk email list. A small group of cryptographers debated the paper but few believed it had any chance of success.
Then, on January 3, 2009, Nakamoto brought the Bitcoin network into existence by mining the first block of the ledger.
The abstract from Satoshi Nakamoto’s Bitcoin Whitepaper
Within the first block, he embedded the text, “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.” This was a reference to the global financial crisis of the time, and juxtaposes the hard-coded, unchangeable economic system of Bitcoin, against the legacy banking system and its inflation-ridden fiat currencies.
In the months to follow, Nakamoto and a coder named Hal Finney began to iron out the kinks, and fix the bugs in what was a revolutionary idea – the first decentralized digital currency – Bitcoin.
Bitcoin is an amalgamation of ideas that originate from the cypherpunk movement. One of the reasons that Bitcoin can be difficult for newcomers to understand is that it intersects with concepts from money, technology, philosophy, computing, politics, and more. Or as John Oliver once quipped, Bitcoin is “Everything you don’t understand about money combined with everything you don’t understand about computers.”
In the early days of Bitcoin, Nakamoto was a prolific online author. He wrote about Bitcoin online, answering questions, via email and on the same cryptography mailing list. These writings have been preserved and they make it clear that one of Nakamoto’s primary motivations was to create a decentralized digital currency outside of the control of a central bank.
In 2011, he wrote, “The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve.”
The invention of the Bitcoin blockchain as outlined in the original Bitcoin whitepaper was a groundbreaking achievement in computer science. Asked the question ‘who invented cryptocurrency?’, many people will name Nakamoto, but as he himself acknowledged in the Bitcoin whitepaper’s concise reference section, Bitcoin was deftly built on top of the work of many others in the field.
Nonetheless, it was Nakamoto’s invention of the proof-of-work consensus algorithm that solved the computational issue called the “Byzantine Generals problem” which prevents double-spends and makes a decentralized digital currency possible. This suggests that either Nakamoto was adept in both economics and computer programming — or it points to a collaborative effort.
It is important to note that there is no record of a programmer by the name of Satoshi Nakamoto before 2008. In addition, both the email address and website used by Nakamoto could not be tracked back to any one source. Thus, it is curious why a person possessing such a wide array of knowledge would choose to remain anonymous and go to such lengths to preserve his privacy.
In April 2011, presumably satisfied that the Bitcoin project was successfully underway, Nakamoto sent a final email to the cryptography list, stating “I’ve moved on to other things. It’s in good hands with Gavin (Gavin Andresen) and everyone.” Satoshi then handed over the source code and disappeared for good.
Today, 12 years later, the Bitcoin blockchain has a market cap of around 1.2 trillion dollars. This means that the mysterious Satoshi Nakamoto effectively appeared out of nowhere, invented a new form of currency that is 100% digital, not under the control of any government or bank, is worth over a trillion dollars, and then vanished. Strange but true.
What makes the story even more intriguing is the fact that because Satoshi mined the first Bitcoins back in 2009 when it was trivial to mine bitcoins quickly and easily, it’s estimated that Satoshi Nakamoto owns approximately 1 million Bitcoins. How do we know? Because the Bitcoin blockchain is a public ledger, it is possible to see these Bitcoins on the Bitcoin blockchain and they have never been moved, despite being worth over 60 billion dollars.
Nakamoto appears to have had the foresight to know that if Bitcoin was to succeed as a decentralized currency, it would need to grow organically, with no leader or figurehead. Therefore, likely for the following reasons, the Nakamoto identity went dark and will remain so.
Equal Influence: By not revealing their identity, Nakamoto ensured that no individual or group could exert undue influence or control over Bitcoin. The focus was placed on the decentralized nature of the technology itself, rather than on the personality or reputation of a Bitcoin creator. Nakamoto knew that if Bitcoin was to succeed as a decentralized currency, it would need to grow organically, with no leader or figurehead. Any announcement or commentary by Nakamoto could be misunderstood or interpreted as investment advice leading to price movements. A similar scenario led to the creator of Litecoin, Charlie Lee, deciding to sell all his LTC holdings. In a Reddit post, Lee explained his decision saying, “Whenever I tweet about the Litecoin price or even just good or bad news, I get accused of doing it for personal benefit. Some people even think I short LTC! So in a sense, it is a conflict of interest for me to hold LTC and tweet about it because I have so much influence.”
Community-Driven Project: Satoshi Nakamoto wanted Bitcoin to be a community-driven project where decisions were made based on consensus among participants rather than being influenced by a single authority figure. Remaining anonymous allowed Nakamoto to step back from the spotlight and encourage others to take ownership of the project’s development and direction. Satoshi Nakamoto emphasized the importance of the technology itself, rather than his (or their) personal identity. By not revealing himself, Nakamoto redirected attention to the innovative aspects of Bitcoin, such as the decentralized ledger, proof-of-work consensus mechanism, and the potential for financial empowerment.
Legal and Regulatory Considerations: Anonymity may have also been a way for Nakamoto to avoid legal and regulatory complications that could arise from being associated with the creation of a disruptive technology like Bitcoin. By remaining anonymous, Bitcoin’s inventors were shielded from potential legal issues or conflicts of interest.
Privacy and Security Concerns: By remaining anonymous, Satoshi Nakamoto protected his personal privacy and reduced the risk of being targeted by hackers, criminals, or government authorities. Bitcoin was designed to be decentralized and resistant to censorship, and Nakamoto’s anonymity helped maintain that ethos.
Let’s drill down a little into the idea that the creators of alternative currencies are likely to attract the attention of authorities and criminals.
A resident of Hawaii named Bernard Von NotHaus created a private currency in 1998, which he named the Liberty Dollar. The currency flourished for a while but its minting operation was eventually raided by the FBI and the Secret Service in 2007. Following criminal proceedings in 2009, the currency was shut down with NotHaus found guilty of creating a “private coin or currency system to compete with the official coinage and currency of the United States.”
Additionally, in 2007, a digital currency named e-Gold was accused of fostering illegal activity because it did not have enough information on its customers. Its owner was sentenced to house arrest and the company was shut down. It is likely that this enthusiasm by government agencies to arrest entrepreneurs in the alternative currency space was a factor in Nakamoto’s strategy.
Lastly, Bitcoin is available to all to use. This means that it can be used to pay for both legal and illegal services, as is the case with fiat currency. However, it has been a popular payment method on darknet marketplaces and initially gained notoriety from its use on the now-defunct Silk Road. The creator and operator of the infamous dark web marketplace, Ross Ulbricht, was sentenced to life in prison for his role in facilitating the trade of drugs and other prohibited materials.
Ulbricht appealed his sentence to the United States Supreme Court in December 2017, and there was much hope that he would make it onto President Trump’s pardon list – but he remains in federal prison at this time. Nakamoto may have faced a similar fate had he revealed his true identity.
In 2023, under the leadership of Gary Gensler, the United States SEC is actively targeting crypto exchanges Coinbase, Binance and others, alleging that they are selling unregistered securities. These moves appear to be part of a concerted effort to discourage Americans from adopting cryptocurrencies – and to punish the founders of organisations that promote the use and exchange of cryptocurrencies.
Nakamoto seems to have understood that it is only when separated from their creator can new concepts, inventions, and content be open to interpretation. Blockchain investor and technologist Jill Carlson says this is why Bitcoin represents different things to different people. This is why forks happen and why, with every debate, there is a vocal faction asking the question “What would Satoshi do?”
Carlson says that “this inefficiency is also one of the main value propositions of Bitcoin. It does not have a leader who can answer that question, who can decide on forks, or can steer the community in one direction or another. So the purpose of the network and the value of the asset remain uncorrupted by intent. Often cited as a problem, this may be the feature that will ensure Bitcoin’s staying power.”
Nakamoto realized that for Bitcoin to remain decentralized, it could not have a leader or a central point of failure that could be compromised. Faith in the technology needed to be based on objective assessment, not the pronouncements of a charismatic leader or an organization. By remaining anonymous, Nakamoto has given individuals the freedom to make their own judgments of the technology and determine the value of the asset independent of its creator.
Over the years there has been intense speculation over who created Bitcoin and who Satoshi might be. A man, a woman, an intelligence agency or a small group of dedicated cypherpunks? Here are some of the leading candidates.
Craig Wright, an Australian programmer, and businessman, first claimed to be Satoshi Nakamoto in 2016. He provided some pieces of evidence which were later found to be inconclusive as they were publicly available from the ledger. He has also been accused of faking announcements and blog posts in order to appear as the real Satoshi. Most believe his claim to be a fabrication. For instance, Ethereum founder Vitalik Buterin has voiced his opinion calling Wright crazy and accusing him of being a fraud. Aside from the current UK High Court case, Wright has been embroiled in much legal conflict over his claims to be Satoshi and has already lost several cases. It is generally accepted that Wright is a fantasist.
Another candidate is Hal Finney. Finney was a well-known cypherpunk and cryptographer who created the first iteration of a reusable proof-of-work system. Finney was the first person to download the Bitcoin client and the first person to receive Bitcoin sent by Nakamoto in 2009. Finney refuted the claims that he was Nakamoto before his death in 2014. Following his death Finney was cryogenically frozen by the Alcor Life Extension Foundation.
Some consider cryptographer Nick Szabo to be a credible candidate. He designed the architecture for a decentralized digital currency called Bitgold prior to the launch of Bitcoin. Though the architecture was never set in motion, there are similarities to Bitcoin’s design. This has led to speculation that Szabo is Nakamoto. However, he has repeatedly denied these allegations.
Finally, another possible candidate is Blockstream CEO Adam Back. A cryptographer and cypherpunk, Back corresponded with Nakamoto and was cited in the Bitcoin whitepaper. Back has denied being Nakamoto, but others have suggested that Back had previously claimed to have met Nakamoto. Back denies this.
In a 2020 Bloomberg article, Back again denied being Nakamoto and suggested it was better for Nakamoto’s true identity to remain unknown. “It’s generally viewed at this point as better that the founder of Bitcoin is not known,” he says. “Because Bitcoin is more like digital gold, you wouldn’t want gold to have a founder. For Bitcoin to keep a commodity-like perception, I think it’s a very good thing that Satoshi stays out of the public eye.”
While the real identity of Bitcoin founder Satoshi Nakamoto may never be definitively uncovered, the important thing is that the technology works without his involvement. Further, Bitcoin is strengthened by the fact that its creator is anonymous as people can focus on the technology without the distractions of its creator.
From this perspective, the enigma of Satoshi Nakamoto is what gives Bitcoin its mystical origin – a necessary precondition for the creation of a new form of money, and the birth of a new asset class. Nakamoto’s decision to remain anonymous has contributed to the mystique and enduring fascination surrounding Bitcoin and blockchain technology. It has allowed the focus to remain on the decentralized and revolutionary aspects of the technology, rather than on the identity or motivations of its creator.
With crypto often appearing to be under attack from regulators around the world, for Bitcoin to continue to attract new users, and for politicians to be prepared to fight for Bitcoin, it is vital that the true identity of Satoshi Nakamoto remains unknown.
]]>Lif3 (LIF3/USD)(LIF3/USDt), the revolutionary multi-chain DeFi Layer-1 ecosystem that operates on Ethereum, Polygon, BNB Chain, and Fantom, is thrilled to announce its strategic partnership with BitGo, the industry’s leading secure qualified institutional custodian.
This collaboration marks a significant leap forward in securing and democratizing access to blockchain technologies for users worldwide as Lif3.com leverages BitGo’s pioneering, multi-signature technology for custodial transactions, cold storage of Lif3 tokens, LSHARE tokens, and L3USD.
“We are pleased to support Lif3’s aim of increasing access to DeFi with our industry-leading, secure custody solutions. This partnership will provide Lif3 users peace of mind to confidently engage in the DeFi ecosystem,” says Mike Belshe, CEO of BitGo.
“This strategic collaboration not only enhances the safety of digital assets for institutional clients, but also instills a newfound confidence in the secure storage and transaction capabilities within the Lif3 ecosystem, setting a new gold standard for asset protection in the DeFi space. As an advocate for the LIF3 ecosystem, I’m most excited to harness BitGo’s renowned multi-signature institutional custodial solutions for the impeccable safeguarding of its core assets. Joining forces with BitGo, recognized as the industry standard in security, will help provide an innovative, unparalleled layer of security for Lif3 tokens, LSHARE tokens, and L3USD – utilizing BitGo’s cutting-edge cold storage technology. The relationship with BitGo spans over a decade as I have been using their products since 2013, where their product offerings have evolved from securing Bitcoin to creating Wrapped Bitcoin (WBTC), for example. It was an easy decision to help choose BitGo to secure Lif3’s ecosystem,” says Harry Yeh, Managing Director of Quantum FinTech Group.
This partnership supports Lif3’s vision for a more simplified, safer and interactive user experience and facilitates seamless acquisition for consumer DeFi through the “Lif3 Wallet” available for download on the App Store and Google Play.
This BitGo announcement coincides with Lif3’s recent Ethereum Migration announcement and its strategic partnership with Layer Zero, an alliance designed to address the challenges associated with token bridging, for a more secure and efficient blockchain experience.
Lif3.com and the “Lif3 Wallet” continue to be a platform of interest for those invested in the future of decentralized finance and blockchain technology. The commitment to continuous improvement and innovation positions Lif3 as a frontrunner in shaping the future landscape of the digital economy and its vision towards breaking down barriers to cryptocurrency adoption through the Lif3 Mobile App, a one-stop solution for on-ramping, investing, trading, earning, gaming, and off-ramping.
About Lif3.com
Lif3.com is a complete, omni-chain DeFi ecosystem, that includes a Curated Layer-1 Blockchain, and a self-custody wallet. “Lif3 Wallet” is available on the App Store and Google Play – unlocking the potential of Web3 through consumer DeFi, iGaming and the Entertainment Sectors
LIF3
LIF3 (LIF3) is an ERC-20 token that powers the LIF3 ecosystem and provides a comprehensive suite of features to manage digital assets across multiple blockchains while allowing users to benefit from staking. To obtain access to $LIF3 on Bitfinex, customers can visit: https://trading.bitfinex.com/t/LIF3:UST – API symbol for LIF3 is LIFIII on Bitfinex
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For official LIF3 logos and branding please users can visit:
https://docs.lif3.com/brand-assets
About BitGo
BitGo, founded in 2013, is a leading provider of secure digital asset wallet solutions, offering institutional-grade custody, staking, trading, and core wallet infrastructure. Notably, it pioneered the multi-signature wallet and launched BitGo Trust Company in 2018, the first qualified custodian for digital assets. With a $250 million insurance policy, SOC 1 Type 2 and SOC 2 Type 2 certifications, and rigorous regulatory compliance, BitGo ensures high standards of security and confidentiality. Expanding its services, BitGo introduced institutional-grade DeFi, NFT, web3 offerings, and the Go Network. In 2023, it secured $100M Series C financing, valuing the company at $1.75B. BitGo supports 700+ digital assets, processes 20% of on-chain Bitcoin transactions, and serves over 1,500 institutional clients across 50 countries.
Disclaimer
Custody services are offered through BitGo Trust Company, a South Dakota chartered trust company. BitGo is not registered with the SEC, and does not offer legal, tax, investment, or other advice. Please consult your legal/tax/investment professional for questions about your specific circumstances.
About Quantum Fintech Group
Quantum Fintech Group is a private investment group founded in 2020, and is focused on providing superior returns in the alternative asset space focusing specifically on blockchain investments.
Twitter: https://twitter.com/quantumftg
Media Relations
Chantel Elloway
Lif3 Labs Limited
[email protected]