Top Stories of The Week
‘Bitcoin smells trouble’ as banks are stressed and ‘yields are puking’ – Strike CEO
Several regional banks in the United States are facing renewed stress despite strengthening their finances after the 2023 banking crisis, and Bitcoin could benefit from any liquidity crisis that follows.
Strike CEO Jack Mallers sees the banking stress as validation that Bitcoin is correctly pricing in an impending liquidity crisis, opining that the Federal Reserve’s inevitable response will drive BTC prices higher.
“Bitcoin is accurately smelling trouble right now,” he said on the Primal social media platform on Friday. “The US is going to have to inject some of that sweet, sweet liquidity soon and print a ton of money or else their fiat empire goes kaboom.”
‘Ethereum could flip Bitcoin’ like Wall Street flipped gold: Tom Lee
Ethereum could eventually surpass Bitcoin’s market share in a similar manner to how US equities overtook gold 54 years ago, when the US abandoned the gold standard, according to BitMine chair Tom Lee.
“Ethereum could flip Bitcoin similar to how Wall Street and equities flipped gold post-71,” Lee said in an interview with ARK Invest CEO Cathie Wood on Thursday.
Bitcoin’s market capitalization is about 4.6 times larger than Ethereum’s, standing at roughly $2.17 trillion compared to $476.33 billion, according to CoinMarketCap. Lee, who oversees BitMine’s Ethereum accumulation strategy, suggested Ethereum could rise in the same way the US dollar rose to dominance after 1971, when US President Richard Nixon made the US dollar “fully synthetic” and no longer backed by gold.
Ripple seeks to buy $1 billion XRP tokens for new treasury: Report
Ripple Labs is reportedly on the cusp of launching a fundraising effort to purchase $1 billion worth of its XRP token to hold in a digital asset treasury, according to Bloomberg.
The fundraiser is being organized through a special purpose acquisition company or SPAC, Bloomberg reported on Friday, citing anonymous people with knowledge of the matter.
The digital asset treasury will consist of the freshly bought XRP and Ripple will also throw in some of its own stockpile, but the exact terms of the transaction are still being hashed out and could change before the deal is inked, according to Bloomberg’s sources.
95% of corporate ETH buys happened in Q3 — start of Ether supercycle?
Nearly all of the Ethereum accumulated by public companies to date occurred within a three-month window between July and September, according to recent data.
This comes as several crypto executives predict the price of Ether will rise by as much as 200% before the end of the year.
“95% of all ETH held by public companies was purchased in the past quarter alone,” Bitwise Invest said on Wednesday, referring to the $19.13 billion held in public treasuries, equivalent to roughly 4% of Ether’s total supply.
Ether set to go ‘nuclear’ with 3 active ‘supply vacuums’ — Analyst
The price of Ether (ETH) has nowhere to go but up, according to an analyst, with 40% of Ether now out of circulation amid record institutional demand.
“Ethereum has never experienced a market cycle with all three supply vacuums active at once,” said pseudonymous analyst Crypto Gucci on Tuesday.
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Crypto Gucci noted that digital asset treasuries (DATs) did not exist in the last market cycle. Over the past few months, DATs have amassed a whopping 5.9 million ETH, worth around $24 billion and equivalent to 4.9% of the total supply, according to StrategicEthReserve.
These entities will hold the asset for long-term yields.
Crypto Gucci stated that Ether has entered this cycle with record institutional demand and the smallest liquid float in its history:
“When demand meets a shrinking supply like this, price doesn’t just go up, it goes nuclear.”
Most Memorable Quotations
“Ethereum could flip Bitcoin similar to how Wall Street and equities flipped gold post 71.”
Tom Lee, chair of BitMine
“I like to say that we’re the securities and innovation commission now.”
Paul Atkins, chair of the US Securities and Exchange Commission
“I think there’s a very high chance this is the start of the bull market.”
Alex Becker, crypto trader
“That is why Bitcoin is based on energy: you can issue fake fiat currency, and every government in history has done so, but it is…
cointelegraph.com