Bitcoin
Reddit’s Crypto Stash, Bitcoin Reaches $53,000
Key Takeaways
- Bitcoin recovered $53,000 after more than two years on Monday.
- Reddit revealed that it has Bitcoin and Ether on regulatory filings ahead of its initial public offering.
- Former US President Donald Trump has apparently softened his stance on cryptocurrencies.
- The Federal Reserve has released an analysis of the US dollar-denominated stablecoin market.
- The US Department of Energy has temporarily suspended a survey of bitcoin miners’ energy consumption following a lawsuit.
What happened in the crypto markets last week?
Bitcoin (Bitcoin) started the week on a strong note, rising 3% on Monday afternoon to $53,000, its highest level since December 2021. Reddit’s disclosure of its cryptocurrency holdings and the former’s seemingly softer stance -President Donald Trump in relation to bitcoin last week may have increased the price. boost for the biggest cryptocurrency.
Reddit Cryptocurrency Stash
As you prepare for a initial public offering (IPO), social media platform Reddit revealed your ownership of bitcoin and ether (ETH) in a filing with the U.S. Securities and Exchange Commission last week. This adds to the list of mainstream companies such as MicroStrategy (MSTR) and Tesla (TSLA) who own bitcoin.
But that’s not all of Reddit’s crypto exposure. The company also owns some of Polygon’s Matic (MATIC) for use in specific virtual goods transactions. Although the exact number of tokens has not yet been released, Reddit clarified in the document that the net value of these digital assets is considered “immaterial”. This strategic move underscores Reddit’s long-standing involvement with cryptocurrencies and blockchain technology, which began in 2014.
Trump Softens Bitcoin Stance
Former president and Republican candidate Donald Trump apparently softened his stance on cryptocurrency last week. In a recent interview with Fox News, Trump admitted that bitcoin has gained popularity, although he still expressed his preference for the US dollar.
This seems like a step back from the hardline anti-crypto stance he posted on Twitter (now X) in 2019.
USDC drops Tron
Stablecoin issuer Circle will stop supporting its USD currency (USDC) stablecoin on the Tron blockchain network, citing alignment with its commitment to maintaining the reliability, transparency, and security of USDC.
New Fed report on stablecoins
On Friday, the Federal Reserve released a report on stablecoins, which particularly focused on how the market functions in times of stress. Notably, the report found that despite the supposed similarities, USDC and Tether (USDT) stablecoins operate as their own distinct markets.
“Even stablecoins that may appear to operate similarly on paper – fiat-backed stablecoins like USDT and USDC, for example – are distributed across primary markets with distinct characteristics in terms of frequency, number of participants, and response to external shocks,” the report said.
The report, which also covered BUSD and DAI, indicated that further study of the stablecoin market is needed as these assets maintain a key role in decentralized finance (DeFi).
Bitcoin Miners Cause Department of Energy to Pause Research
The US Department of Energy (DOE) has agreed to temporarily suspend its emergency research into energy consumption by cryptocurrency miners following a lawsuit filed by bitcoin mining company Riot Platforms (REBELLION) and the Texas Blockchain Council.
DOE’s statistical arm — the U.S. Energy Information Administration (EIA) — has suspended its mandatory survey for a month and will protect data already collected since February 5. sensitive information.
What to expect from crypto markets this week
So far this week, it’s been a mixed bag. While bitcoin continues its march, there are some pockets of not-so-good news.
Cryptocurrency exchange BitForex has been plunged into darkness amid reports of a $57 million outflow. According to reports, customers are currently unable to access the exchange because withdrawals have ceased processing. The abrupt disappearance of the exchange’s online presence follows the departure of former CEO Jason Luo in January. Previously, the exchange faced allegations of falsifying trading volume and regulatory scrutiny for operating without a license in Japan.
Analysts will also be tracking bitcoin exchange-traded fund (ETF) flows this week, as the drop in activity last week coincided with the crypto asset’s recent price rise stalling. Despite the relative drop in activity, last week was the fourth consecutive week of positive net inflows for digital asset investment products, according to CoinShares.