One week in review:
June 27–July 3 We've selected the hottest materials of the past week for you to stay up to date with the latest crypto news: | | #1. Bitcoin mining difficulty just fell by a record 28% — but will this help prices recover? | | | Bitcoin has recorded its biggest mining difficulty drop of nearly 28%, but one model suggests prices will not bottom until October. | | | The drop is in response to the ongoing miner migration out of China and the subsequent loss of hash rate — and this could deliver a profit boost for the miners still at work. | | | Bitcoin has now closed its third red monthly candle in a row, meaning BTC/USD is now the furthest away from its stock-to-flow model estimates in more than two years. Data shows the world's biggest cryptocurrency fell 40.36% in Q2… the biggest quarterly plunge in over three years. | | | Plan B said the next six months will be "make or break" for the stock-to-flow model, adding: "Even for me it is always a bit uneasy when Bitcoin price is at the lower bound of the stock-to-flow model." | | #2. Binance faces regulatory upheaval as lawmakers target 'global' exchanges | | | Regulatory woes are piling up for Binance. Japan has accused the exchange of operating without proper registration, and toughened measures in the Canadian province of Ontario have prompted Binance to announce that it plans to cease all operations there. | | | Monday saw Binance suspend the use of Faster Payments in the U.K., meaning that it would take longer for British customers to withdraw pounds from the exchange. This came days after the Financial Conduct Authority told the exchange to cease all regulated activities in the country. However, this was later reinstated. | | | Thailand's Securities and Exchange Commission and the Cayman Islands Monetary Authority are the latest financial regulators to announce a regulatory crackdown on Binance. | | | As a major global exchange, the exchange has been struggling to find the right jurisdiction for operating its business. | | #3. Strike to offer 'no fee' Bitcoin trading, taking aim at Coinbase and Square | | | Payments platform Strike has announced that it will allow U.S. customers to buy and sell Bitcoin with almost no trading fees — taking on the likes of Coinbase, Square and PayPal. | | | Strike's founder and CEO Jack Mallers says his platform is setting out to be the "cheapest and easiest place on the planet to acquire BTC." | | | Mallers has taken aim directly at Coinbase too, describing Coinbase's fees as "asinine." He added: "Make no mistake, when you buy Bitcoin on Coinbase, you are supporting shitcoins." | | | In other developments, Coinbase has revealed that it plans to list digital assets on its exchange faster than it does now. And as the exchange seeks to bolster its global presence, it's going to launch a crypto app store offering products developed by third parties. | | | Meanwhile, Robinhood has filed an application with the U.S. Securities and Exchange Commission for an initial public offering. That application came a day after regulators ordered the company to pay a $70 million penalty, amid allegations it caused "widespread and significant harm" to thousands of users. | | #4. Prediction of the week: 44% of investors expect Bitcoin to drop below $30K in 2021: CNBC survey | | | A recent CNBC survey suggests 44% of portfolio managers and equity strategists think Bitcoin will be below $30,000 by the end of this year. | | | Out of the remaining 56%, 25% predicted the price to shoot up and settle at $45,000 — while another 25% projected that we could see $55,000. | | | A small minority of 6% said Bitcoin could return back to $60,000, near the $65,000 all-time high seen in April 2021. | | #5. FUD of the week: Bitcoin has failed miserably as currency, says NYU's 'dean of valuation' | | | Aswash Damodaran has launched another blistering attack on Bitcoin. | | | The professor of finance at New York University said: "A good currency, in my view, is one that's used to buy coffee, buy your house, buy a car, and on that count, Bitcoin has failed, and not just failed, it's failed miserably." | | | He added that Bitcoin's only claim to fame is in the returns earned by early investors, adding: "When I run into Bitcoin enthusiasts, they seem to push this notion that Bitcoin is a great currency because they've made a lot of money on it." | | | Back in May, Damodaran claimed Ether stands a better chance of becoming a commodity than Bitcoin. | | #6. FUD of the week: UK's NatWest bank limits transactions to crypto exchanges | | | As the crypto crackdown continues in Britain, another high street bank has intensified its efforts to curtail its customers' use of digital assets. | | | Natwest Group has reportedly capped the daily amount its customers can send to cryptocurrency exchanges due to concerns over investment scams and fraud. However, the new limits on fiat currency transfers have not been revealed. | | | NatWest said the restrictions are designed to be temporary — and, in some cases, payments to specific crypto asset firms where there have been "particularly significant levels of fraud-related harm" will be blocked altogether. | | | Feel free to explore the most important news with Hodler's Digest: | | | |
