Crypto Daily News from ZBG Exchange
1. Market Wrap: Bitcoin Near $58K on Fed Pledge to Keep Loose Policy
Bitcoin’s price has doubled this year, partly because of demand from institutional investors who are looking for an asset that might hold its worth if the dollar’s purchasing power declines.
Bitcoin (BTC) trading around $57,745.58 as of 20:00 UTC (4 p.m. ET). Climbing 3.68% over the previous 24 hours.
Bitcoin’s 24-hour range: $54,201.70-$58,078.51
BTC trades above its 10-hour and 50-hour averages on the hourly chart, a bullish signal for market technicians.
Bitcoin’s price flipped to green after Federal Reserve officials on Wednesday reaffirmed their expectations to keep interest rates close to zero at least through 2023, potentially bolstering the cryptocurrency’s appeal as a hedge against faster inflation.
As of press time, bitcoin was changing hands around $58,000, up from about $55,500 just before the Fed announced its decision around 18:00 coordinated universal time (2 p.m. ET).
The price has doubled this year, partly because of demand from institutional investors who are looking for an asset that might hold its worth if the dollar’s purchasing power declines. Central banks around the world have pumped trillions of dollars of freshly created money into global financial markets to stimulate their coronavirus-wrecked economies.
2. Grayscale Offers New Trusts to Invest in 5 More Cryptos Including Filecoin, Chainlink
The firm had filed for the trusts in Delaware in late January.
Grayscale Investments, the world’s largest digital asset manager, is digging into the world of decentralized finance (DeFi) with five new new trust offerings Wednesday, including Chainlink’s link token, Brave Browser’s brave token and MANA, the money for virtual world Decentraland.
The two remaining trusts will offer exposure to decentralized data storage provider Filecoin’s file (FILE) and decentralized video streaming network Livepeer (LPT). All five cryptocurrencies are up on the news. LPT is up over 100% in 24 hours, according to CoinGecko.
The newest Grayscale trusts follows a slate of similar products from other digital asset managers looking to draw in institutional money to the red hot DeFi market. For example, CoinShares released its DeFi Index Token last month, as did Bitwise with its Bitwise DeFi Crypto Index Fund.
The firm had filed for the trusts in Delaware in late January, as reported at the time.
We may soon see trusts for Aave, Cosmos, Polkadot, monero and Cardano if other filings are followed through.
“At any one time, we’re probably maintaining a list of what could be 30 products, could be 40 products that we’re interested in bringing to market,” Grayscale CEO Michael Sonnenshein told Bloomberg.
The new trusts are the firm’s first additions since 2019, and come after Grayscale assessed both potential demand and did due diligence on the underlying protocols, per the report.
While the five cryptocurrencies now supported for investment are not mainstream yet, Sonnenshein said many of Grayscale’s trusts “have historically been a little bit before their time.”
3. Bitcoin Pares Losses as Fed’s Powell Sees No Rate Hike Anytime Soon
Federal Reserve Chair Jerome Powell assures markets that monetary policy will stay loose “as long as it takes.”
Top Federal Reserve officials see inflation rising above 2% this year, but their median expectation is still for interest rates to stay close to zero at least through 2023, based on the “Summary of Economic Projections” released Wednesday.
Bitcoin prices pared earlier losses as Fed Chair Jerome Powell said during a televised press conference that the U.S. central bank expects to keep monetary policy loose “for as long as it takes” to heal the coronavirus-wounded economy. The largest cryptocurrency is seen by many investors as a hedge against inflation, and a dovish monetary policy stance could allow faster price increases.
Prices for bitcoin rose to about $56,500 after the meeting, from about $55,500 just prior to the 18:00 UTC (2 p.m. ET) release.
4. Ethermine Adds Front-Running Software to Help Miners Offset EIP 1559 Revenue Losses
Maximal Extracted Value (MEV) has netted traders and miners some $1.7 million in profit in the last 24 hours alone.
Ethereum mining pool Ethermine introduced new software that could mollify miners upset by a coming steep cut in mining fees by allowing them to eke out greater profit from each block mined.
The Austria-based pool — which comprises some 20% of the Ethereum network’s hash power — became the first majority pool to introduce a Maximal Extracted Value (MEV) software strategy in order to compensate the “upcoming mining reward reduction caused by the adoption of EIP-1559,” according to a tweet Wednesday. MEV automates transaction sequencing in blockchains based on possible arbitrage opportunities, which Ethermine expects to increase mining rewards between 1%-10%. Ethermine plans to distribute 80% of MEV profits to the pool.
That EIP is slated for inclusion in the Ethereum network in July with the London hard fork. The proposal burns network transaction fees instead of giving them to miners, who process transactions. Miners are not very pleased with the proposal — even going as far as to threaten a 51% attack against Ethereum — but have few options on the table given Ethereum’s governance structure. So, many mining pools are adding MEV to supplement lost income, such as Flexpool.
5. Lessons From the Nifty Gateway NFT Heist: Not Your Keys, Not Your Art
Nifty Gateway, the popular non-fungible token marketplace, issued a statement Monday that a small group of its users experienced “account takeovers.” Victims claimed they either had their NFT art stolen or NFTs purchased and then stolen, using their credit card information. The NFTs were then sold again.
Today, however, a victim was tweeting that Nifty was able to return the stolen NFTs.
Nifty Gateway has not responded to a request for comment on how it was able to return the NFTs, but it appears the thief did not move them from the centralized marketplace.
The news of the NFT art heist marked what appears to have been the first digital NFT theft of this new era for art. But with the artist Beeple selling an NFT for a cool $69.3 million on Friday, perhaps it shouldn’t be surprising. The art heist highlights not just the security steps and understanding of decentralization that users new to the scene might be lacking. It also raises interesting questions about the realities and future of NFT custody as the market continues to grow.
In the case of the Nifty theft, the perpetrator, it seems, also lacked an understanding of decentralization vs. centralization.
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March 18, 2021