The recent news that SpaceX will buy a large stake in the world’s largest bitcoin exchange Btc-e (and that there will be a new bitcoin ETF on the market soon) has made the bitcoin price jump already. On the bit-coin subreddit, /r/dogecoin, the daily average dogecoin trade volume in the last 24 hours is now $72.5 million, up from $56.8 million on July 16. That’s for the whole dogecoin market, and not just the Dogecoin backed by the litecoin mining Farmhash project.
Dogecoin has seen a surge in transaction volume in recent weeks, which could indicate that the altcoin is in the midst of a resurgence. The altcoin has been on a rollercoaster of a ride, with its price spiking from a low of $0.000243 on June 5 to a high of $0.000579 on July 9, before dipping back to $0.000403 where it currently sits at press time.
A month ago, Elon Musk announced that his SpaceX would be launching a novelty internet satellite that would provide access to the global internet to places which lack existing networks. The internet satellite, called Starlink, would be providing high speed internet to citizens of developing countries. But is this a good idea? The internet is a powerful tool for people who live in developed countries, who can afford to spend money on high-speed internet. But in countries without this technology, access to the internet is very expensive, and often unaffordable, which means that it is very difficult for people to access it.. Read more about elon musk invest in dogecoin and let us know what you think.
Every Saturday, Hodler’s Digest will keep you up to date on all of the major news stories from the previous week. A week on Cointelegraph in one link: the greatest (and worse) comments, adoption and regulatory highlights, top currencies, forecasts, and much more.
This Week’s Top Stories
Bitcoin is owned by SpaceX, and Elon Musk and Nic Carter think it is becoming more environmentally friendly.
On July 21, Elon Musk, a proponent of Dogecoin (DOGE) and a sporadic supporter of Bitcoin (BTC), announced for the first time that his aerospace company SpaceX holds an unknown quantity of Bitcoin.
He said, “I own Bitcoin; Tesla owns Bitcoin; SpaceX owns Bitcoin.”
Musk was speaking alongside Twitter CEO Jack Dorsey and Ark Invest CEO Cathie Wood at “The Word” — a virtual event dedicated to Bitcoin — and the erratic tech billionaire suggested Tesla was on the verge of accepting the cryptocurrency again, citing promising signs that the percentage of renewable energy used for mining was increasing.
Tesla’s $1.5 billion investment in Bitcoin earlier this year triggered a massive surge in the cryptocurrency’s price. However, in May, Tesla suspended Bitcoin as a payment option due to environmental concerns, causing the price of Bitcoin to plummet by approximately 40% in the last two months.
Musk seems to be warming up to digital gold again now that China’s coal-powered hash rate is dwindling as a result of the mining ban. Tesla may re-enter the market after doing additional “due diligence” on mining sustainability and confirming it is supported by 50% renewables or more, according to Musk.
One may ask what this due diligence involves, and why he didn’t do it before buying Tesla BTC for $1.5 billion.
Musk also disclosed that he owns Ethereum (ETH) for the first time, and reiterated his support for the meme-inspired Dogecoin.
“I myself hold a little amount of Ethereum and, of course, Dogecoin,” he added.
During the second quarter, daily Dogecoin volume surpassed $1 billion.
Trading volume for Musk’s preferred cryptocurrency, Dogecoin, rose by more than 13 times in the second quarter of 2023, approaching $1 billion each day.
According to data compiled by Coinbase and reported by Business Insider, Dogecoin trading volumes soared 1,250% between April and June, with $995 million worth of DOGE changing hands daily on average during the quarter.
In the first quarter of 2023, Dogecoin had an average daily volume of $74 million.
While such statistics are likely to excite the Dogecoin enthusiasts, the topic of the top canine currency may be a sensitive one for Coinbase.
Because of an allegedly deceptive Dogecoin campaign, a Coinbase user has launched a class-action lawsuit demanding $5 million in damages.
Plaintiff David Suski said he was duped into exchanging $100 of Dogecoin for a chance to win $1.2 million in a Coinbase contest, according to court papers. According to the complaint, Coinbase neglected to inform customers that they may join the contest without buying $100 in Dogecoin.
For DeFi degens, Ethereum must think beyond DApps: Buterin, Vitalik
Vitalik Buterin, Ethereum’s co-founder and main developer, has encouraged the Ethereum community to think outside the box when it comes to decentralized finance, or DeFi.
Buterin characterized non-financial utilities as “the most fascinating aspect of the concept of general-purpose blockchains” during his keynote at the Ethereum Community Conference in Paris on July 21.
Decentralized social media, identity verification and attestation, and retroactive public goods financing are among the non-financial uses for Ethereum, according to the 27-year-old.
After presenting at the Ethereum conference, the Ethereum co-founder also made an appearance at Ashton Kutcher and Mila Kunis’ living room. Of course, he wasn’t trespassing; he was there to promote Kunis’ NFT initiative, “Stoner Cats.”
Buterin went on to provide a detailed description of Ethereum’s core components, as well as how the smart contract protocol differs from “single-purpose” networks like Bitcoin.
Grayscale has set its eyes on a DeFi fund for institutions.
While Buterin is going outside the decentralized boundaries of banking, Grayscale, a digital asset management company, is seeking to get into the space.
Grayscale’s CEO, Michael Sonnenshein, launched a new investment vehicle targeted towards DeFi assets on July 19.
Grayscale’s CEO spoke out in an interview with CNBC’s Squawk Box to reveal the company’s intentions for a DeFi Fund and index. The fund would provide institutional investors with exposure to DeFi assets such as Uniswap and Aave, according to the Grayscale CEO.
Sonnenshein said the same week that he believes the United States is just a “couple of maturity points” away from its first Bitcoin exchange-traded fund, or ETF.
After many rejections of BTC ETFs in the past, as well as 13 ETF applications pending, Sonnenshein remains undaunted, stating that the company is “100% committed” to converting its Bitcoin product, the Grayscale Bitcoin Trust, into an ETF whenever the circumstances are perfect.
Congress in the United States does not want Olympic competitors to utilize digital yuan at the 2023 games.
Despite reports that the majority of Japanese people want the Olympics canceled due to pandemic fears, the event will go on.
The US government, on the other hand, has its sights set on the 2023 Winter Olympics in Beijing, and three US senators signed a letter earlier this week asking Olympic organizers to prohibit American athletes from using the digital yuan at the next tournament.
Republican Senators Marsha Blackburn, Roger Wicker, and Cynthia Lummis, who is also a proponent of the BTC, wrote to USOC board chair Susanne Lyons on July 19 requesting that authorities prohibit US athletes from using or receiving the digital yuan.
The senators said that the People’s Bank of China can “monitor and trace” the athletes’ usage of the central bank’s digital money.
According to the senators, the Chinese government recently implemented new capabilities for the digital yuan, allowing authorities to “know the precise details of what someone bought and where they acquired it.”
If Olympic authorities accept the request, China will be forced to use alternative ways to monitor and trace any American athletes who enter the nation.
Losers and Winners
Bitcoin is now trading at $32,580, Ether is trading at $2,070, and XRP is trading at $0.60 at the conclusion of the week. According to CoinMarketCap, the overall market cap is $1.35 trillion.
The top three altcoin gainers of the week are Telcoin (TEL) with a gain of 26.82 percent, SushiSwap (SUSHI) with a gain of 26.17 percent, and Axie Infinity (AXS) with a gain of 23.12 percent among the top 100 cryptocurrencies.
Mdex (MDX), THORChain (RUNE), and Theta (XDC) are the top three cryptocurrency losers this week, with losses of -25.55 percent, -18.98 percent, and -11.26 percent, respectively.
Read Cointelegraph’s market analysis for more information on crypto pricing.
The Most Memorable Quotes
“I may pump, but I never dump.” I don’t believe in inflating the price and then selling it or anything like that.”
Tesla CEO Elon Musk
“Moving beyond DeFi does not mean opposing DeFi. The most intriguing Ethereum applications, in my opinion, will mix aspects of financial and non-finance.”
Ethereum co-founder Vitalik Buterin
“Neither USDC nor Tether are regulated digital assets since neither coin is governed by a regulator. In reality, other from the name, neither USDC nor Tether tokens are ‘stablecoins.’”
Paxos is a supplier of stablecoins.
“I believe that digital art will outlast galleries by a significant margin. You won’t be visiting galleries, for example. We’ll be sitting in bars showing each other what we’ve just purchased on our phones, which is something we do now.”
Damien Hirst is a well-known modern artist from the United Kingdom.
“Make no mistake: A stock token, a stable value token backed by stocks, or any other virtual commodity that offers synthetic exposure to underlying assets is all the same. The securities rules apply to these platforms, whether they are in the decentralized or centralized financial sector, and they must operate within our securities regime.”
SEC Chair Gary Gensler
“Now, more than ever, we must seize and harness the promise of these new technologies to guarantee that we are more prepared and more unified in the future to make our world a more habitable, equitable home for all.”
Irakli Beridze, director of the UN Interregional Crime and Justice Research Institute’s Centre for Artificial Intelligence and Robotics
“If a Bitcoin ETF comes through the Gensler administration, I don’t think it’ll happen this year,” he says. […] There is also a substantial corpus of language and rhetoric, as well as issues raised by the staff in prior applications, that must be addressed. As a result, it’s not a slam dunk.”
Osprey Funds’ CEO, Greg King
“Since the Ripple lawsuit was filed, recent demands to create a more suitable norm for technologically sophisticated digital assets have erupted into a firestorm. Some tech policy professionals who have been following the issue carefully have suggested that Howey be replaced with a “Ripple Test.”
Former member of the United States Congress, George Nethercutt Jr.
The Week’s Prediction
Bitcoin price forecasts of $13,000 have surfaced, with BTC sliding below a historic trendline.
The bears have been out in force since the crypto slump started around May 12th, predicting doom and gloom for the future price of BTC.
Bitcoin Master, a pseudonymous chartist who goes by the moniker “Bitcoin Master,” expressed worries about Bitcoin’s potential for an 80% average price drop if it breaks negative on its 50-day simple moving average this week, according to Cointelegraph (SMA). BTC/USD exchange rates may fall to as low as $13,000 if the fractal plays out, according to the expert.
The 50-week SMA shows the average price paid for Bitcoin by traders over the last 50 weeks. Its invalidation as a price floor has pushed the Bitcoin market into severe negative cycles throughout the years, culminating in 2023.
Previous market cycles, on the other hand, haven’t been affected by Elon Musk’s proclivity for causing havoc in crypto through his tweets, thus a 50-week Musk tweeting average may become the standard technique for BTC price forecasting in the future.
The Week’s FUD
The chairman of the Securities and Exchange Commission claims that bitcoin is subject to security-based swaps regulations.
The Securities and Exchange Commission, or SEC, in the United States, is expected to release new regulations for the regulation and registration of security-based swaps, including cryptocurrencies, in the near future.
SEC Chairman Gary Gensler stated in a speech to the American Bar Association’s Derivatives and Futures Law Committee that new requirements will take effect in November, including internal risk management, supervision and chief compliance officers, trade acknowledgment and confirmation, and recordkeeping and reporting procedures, to name a few.
“Make no mistake: A stock token, a stable value token backed by stocks, or any other virtual commodity that offers synthetic exposure to underlying assets is all the same. The securities rules apply to these platforms, whether they are in the decentralized or centralized financial sector, and they must operate within our securities system, according to Gensler.
As Jim Cramer warns about Tether’s crazy money, auditors disclose USDC support.
Jim Cramer, presenter of CNBC’s Mad Money, questioned Tether’s lack of openness in a July 20 interview with TheStreet, asking why the company hasn’t revealed the makeup of its commercial paper, which makes for a significant portion of its assets.
According to Tether’s brief reserve breakdown in May, three-quarters of its reserves were kept in cash, cash equivalents, other short-term deposits, and commercial paper as of March 31. Commercial paper made for 65.39 percent of that category, while cash accounted for just 3.87 percent.
“I’m worried about Tether, and I’m not going to stop warning people about it until I know what Tether has. They have about $60 billion in commercial paper on hand. What commercial paper do you possess, Tether, open up the kimono?” Cramer explained.
According to UBS CEO Ralph Hamers, cryptocurrency is a “untested asset category.”
On July 20, Ralph Hamers, CEO of Swiss bank UBS, said that he is not concerned about losing out on cryptocurrency since it is an unproven and unpredictable asset.
“Clients are looking at other options, and they hear about crypto, and there is a bit of a fear of losing out,” Hamers told Bloomberg. They read about it in the news, but they are also aware of the volatility.”
The UBS CEO, speaking on the bank’s strategy to giving crypto exposure to its wealth management customers, said that he had no FOMO towards crypto, adding, “We don’t provide it actively.” […] We believe that cryptocurrency is still a new asset class.”
Of course, Hamers operates within the constraints of the conventional finance and banking system, which is a tried-and-true business that has been responsible for numerous global financial catastrophes.
Cointelegraph’s Best Features
As Bitcoin’s price drops by $30K, the stock-to-flow concept may be invalidated.
As Bitcoin is stuck in the $30,000 area, Plan B’s stock-to-flow model is the closest it’s ever been to being invalidated.
With Bitcoin, China is pouring money out of the United States.
Instead of declaring war on cryptocurrency and further weakening the US economy, Chinese authorities seem to be putting things in order.
It is past time for the United States to establish a ‘Ripple test’ for cryptocurrency.
The SEC’s approach to cryptocurrency has to be modified to make it clearer how securities rules should be applied to digital assets.
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