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Crypto News

To Expand Defi To New Assets, Chainflip Collaborates With Axelar And Squid

Chainflip, a cross-chain decentralised exchange slated to launch in the middle of 2023, has started its partnership programme and announced its plans to establish a two-way interface with Squid, a cross-chain token swapping service that was just introduced. As a result of the collaboration, users of both Chainflip and Squid will have easier access to cross-chain swaps powered by Axelar between an expanded set of blockchains.

 

The initial step in this new collaboration is to discuss the feasibility of integrating both parties’ web interfaces. If this works, swaps to chains that aren’t supported by Chainflip will be aggregated by Squid and vice versa.

 

By channeling at least a portion of the swap through the Chainflip protocol, users of Squid and other companies within the Axelar ecosystem can exchange native BTC through the Squid web interface. To illustrate how this would work in the real world, consider this example. Customers can trade assets on any of the many Ethereum networks supported by Axelar and Squid, all through the same central web interface provided by Chainflip.

 

The collaboration’s goal is to eliminate as much complexity as possible from the process of creating immersive experiences by removing the requirement for builders to learn and implement different standards to gain access to as many chains as possible.

 

This two-way connection between Chainflip and Squid is a tremendous step forward in making cross-chain solutions far more competitive, and it will greatly improve price and access to more assets for users of both platforms. President and CEO of Chainflip, Simon Harman, made the announcement. We think it’s crucial that like-minded partners in the DeFi ecosystem figure out how to work together in this way to replace centralised exchanges.

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Crypto News

Post-Fed Rally in the Cryptocurrency Market Continues as Defi and Smart Contract Platform Sectors Gain Traction

Several decentralized finance tokens and smart contract platform sectors assumed the deepest colors a day after Fed Chair Jerome Powell made unexpectedly less hawkish statements to accompany the US central bank’s moderate interest rate increase.

 

Decentralized exchange Uniswap’s native governance token, UNI, gained approximately 4.5% over the past 24 hours to trade above $7.20, making it one of Thursday’s top winners.

 

The AVAX token from Layer 1 blockchain Avalanche increased by over 3.4% to trade above $22 recently. The rise in altcoin prices results from a general market upturn that has occurred since the Fed’s statement reiterates its commitment to less drastic monetary tightening.

 

The second-largest cryptocurrency by market value, ether, was trading at $1,650 at the time of writing, up a little percentage point from Wednesday at the same time.

Recently, Bitcoin traded above $23,560, unchanged from the previous day, albeit slightly down. Since the Fed’s statement, BTC had been trading in a constrained range between $23,700 and $24,200 before declining late Thursday.

 

After spending most of the day in the green, the CoinDesk Market Index, which gauges the performance of the cryptocurrency market, recently went flat.

 

The performance of the cryptocurrency markets followed the post-rate announcement rise in traditional markets. A day after Powell declared that “the disinflationary process” had “begun,” the tech-heavy Composite and S&P 500 closed up 3.2% and 1.4%, respectively.

 

Stocks exposed to cryptocurrencies also jumped sharply: Exchange Coinbase increased by 24%, and MicroStrategy, a software provider with a sizable bitcoin holding, increased by 9%. Marathon Digital Holdings, a bitcoin miner, increased by 6.3%.

 

 

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Crypto News

As BTC Surges through $23,500 Resistance, here is where BTC is Expected to go Next in Terms of Price

Recently, Bitcoin broke through the $23,500 barrier level and is currently climbing to new heights. Many investors are unsure of Bitcoin’s future direction as its price keeps rising. In this piece, we’ll look at a few things that might have an immediate impact on its price and speculate on where it might go.

 

Bitcoin started trading at $23,746 on January 30 and has experienced considerable volatility over the last day. It is currently traded for $23,238 and has decreased by about 0.92%.

 

In the same time frame, BTC/USD hit a maximum value of $23,784 and a minimum value of $23,110. However, throughout the previous week, it has still seen a general growth of more than 2%.

 

The difficulty of mining bitcoins reached an all-time high on January 29. The total difficulty rose from 37.59 trillion to 39.35 trillion due to this 4.68% rise in difficulty, setting a new record high.

 

The challenges involved in mining bitcoin have significantly increased recently by 48%. This is due to the measurement of difficulty that was recorded on January 21 of last year, which was 26.64 trillion.

 

By raising the level of difficulty, a blockchain becomes more secure since it makes it much more difficult for attackers to be successful in their attacks. Additionally, it is more difficult to mine new blocks as the mining difficulty rises compared to the overall hash rate.

 

Even if miners must put in more effort, the difficulty of mining Bitcoin rises as the network’s security improves. Additionally, anytime the number of miners rises, the network size ultimately increases, improving the long-term value of BTC/USD.

 

At $23,258 right now, the price of Bitcoin has dropped more than 1% in the previous day. Its market cap, which is an impressive $488 billion, puts it in first place in CoinMarketCap’s rankings, with a projected market volume of $26 billion.

 

The BTC/USD price is struggling to surpass the $24,000 resistance level in the 4-hour time frame and has since dropped to retest the $23,000 support level.

 

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Crypto News

Blockfi’s Unfiltered Financials Allegedly Reveal a $1.2 Billion FTX Exposure

By accident, the bankrupt cryptocurrency loan company BlockFi posted unfiltered financial data that showed $1.2 billion in assets linked to the collapsed exchange FTX and its associated trading company Alameda Research.

 

According to reports, the unredacted filings reveal that as of January 14, BlockFi had $831.3 million in loans to Alameda and assets totaling $415.9 million linked to FTX.

 

The previously redacted financials were made public as part of a presentation created by M3 Partners, a creditor committee advisor who apparently acknowledged the form was posted incorrectly.

 

The creditor committee objected that BlockFi wanted to pay key staff $12.3 million in retention payments despite their meager activities and assets. This is addressed in the correctly redacted Nov. 24 declaration.

 

The passages that have been censored ” contained proprietary research, development, or commercial information or trade secrets,” according to a later filing.

 

BlockFi’s attorneys stated that $355 million was locked on FTX and $680 was lent to Alameda on November 29 during the first day of the bankruptcy hearing; however, the cash value has increased as the price of Bitcoin has fallen by $22,660 since then.

 

Although BlockFi has tried to distance itself from FTX and Alameda during its bankruptcy proceedings, the nature of their respective financial liabilities is complicated.

 

After being affected by the contagion brought on by the demise of Terra’s algorithmic stablecoin on May 10, 2022, FTX.US extended a $400 million line of credit to BlockFi on July 1.

 

The loan has a June 30, 2027, maturity date and a 5% interest rate.

 

On November 28, BlockFi filed for bankruptcy, citing the failure of FTX just a few weeks prior as the reason for its financial difficulties.

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Crypto News

Oral Arguments in Grayscale’s Complaint against the SEC will be Heard in Court in March

Oral arguments in Grayscale Investment’s complaint against the Securities and Exchange Commission about the latter’s decision to reject Grayscale’s BTC tickers down $22,668 spot exchange-traded fund are scheduled to be heard by the United States appeals court.

 

On March 7, the District of Columbia Court of Appeals will hear arguments from both sides, per a court motion submitted on January 23.

 

Oral arguments are speeches made by lawyers outlining why their clients should prevail in court. Each side is given equal time to address the judge directly and respond to his or her questions.

 

Craig Salm, the chief legal officer at Grayscale, stated in a tweet on January 24 that the newly filed motion was “good news” as they had previously anticipated oral arguments to be set.

 

According to the motion, the Grayscale case argument panel’s makeup will be made public on February 6- 30 days before the argument’s scheduled date, and the length of the argument will be determined in a subsequent order.

 

Following the SEC’s denial of its request to transform its $12 billion Grayscale Bitcoin Trust into a spot-based ETF, Grayscale filed a lawsuit against the agency in June.

 

Grayscale claimed in a reply brief submitted earlier this month to the D.C. Court of Appeals that the SEC had behaved arbitrarily in treating spot-traded ETFs differently from futures-traded products and that it had overstepped its bounds by rejecting Grayscale’s request for a Bitcoin ETF.

 

In an interview, the CEO of Grayscale emphasized a related topic: “It’s critical to emphasize the importance of the role that regulators like the SEC play in protecting investors. They are not here to advise investors on what to invest in. They are there to ensure that all necessary disclosures are made, so investors know all associated risks. ”

 

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Crypto Featured News

Arizona Politicians want to Exempt Cryptocurrency from Paying Taxes

An initiative to let voters determine whether virtual money should be excluded from property taxes is being considered by lawmakers in the Arizona State Senate.

 

Senators Wendy Rogers, Sonny Borrelli, and Justine Wadsack suggested letting Arizonans vote on whether to change the state’s constitution to include a provision regarding property taxes in legislation submitted in the inaugural session of the Arizona State Senate in 2023.

 

Voters could decide to exempt virtual currency tokens that are not “a representation of the United States dollar or a foreign currency” from taxes in November 2024 if the proposal passes the legislature.

 

Arizona’s constitution exempts from taxation ” inventories of unassembled components, raw or finished materials, works in progress, or finished goods,” a small number of ” stockpiles of unfinished or finished products, raw or finished materials, unassembled parts, or works in progress,” as well as all federal, state, county, and municipal property.

 

More than 4 million people were registered to vote in the general election in November 2022, according to data from the Arizona Secretary of State, with the state leaning slightly Republican.

 

On January 19 and 23, SCR 1007 underwent two readings as part of the state Senate’s agenda. Lawmakers have proposed legislation relating to cryptocurrency and taxes in prior sessions, such as a 2018 bill that would have allowed people to pay their taxes in cryptocurrency but was rejected by the governor at the time, Doug Ducey.

 

In the 2022 Senate’s second regular session, Rogers introduced a measure comparable to SCR 1007.

 

Although Rogers, Borrelli, and Wadsack, all Republicans, have dismissed or questioned the fair and lawful election of some state and federal representatives, the proposed legislation would face a different political environment than 2018 or even 2022. In the 2022 midterm elections, Democrat Katie Hobbs narrowly defeated Republican Kari Lake to win the Arizona governor’s office.

 

 

 

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News

BTC’s $200,000 Projection Flops As Crypto End 2022 Down 60 Percent at $16,500

Other cryptocurrencies also suffered, with Ether falling nearly 70%.

 

Crypto analyst, a year ago, riding high from the victory of 2021. They had a big expectation for BTC, with some seeing the token striking $100,000 or more in 2022.

 

That is far from where Bitcoin ends this annus horribilis: $16,500.

 

Bitcoin lost more than 60% in 2022, its second-worst year performance on record and just its third negative year ever, due to an overly hawkish Federal Reserve, a series of scandals, and the collapse of once-promising ventures in the cryptocurrency field. Ether lost about 70%, while an index of the 100 most significant coins fell by about 65%, along with other cryptocurrencies.

 

In 2020 and 2021, cryptocurrencies were a significant “easy money” asset class, according to Matt Maley, chief market strategist for Miller Tabak + Co. “Some cryptocurrencies will endure and flourish in the future, but they moved too quickly and far after the Fed implemented its enormous QE and zeroed interest rate policy. It will take a lot longer for the crypto asset class to realize its full potential now that these initiatives have vanished.

 

Tom Lee of Fundstrat stated that the coin could easily hit $100,000 in 2022 and that the $200,000 range was reachable towards the end of 2021. He told the interviewer, “I know it sounds ridiculous, but it’s beneficial.

 

In the meantime, Goldman Sachs strategists, at the start of January, indicated that BTC could make $100,000 over 5 years as it took the market share from gold. Mike Novogratz called for the BTC token to reach $500,000 in the same time frame, and later, he dropped it at the start of December.

 

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News

BTC Miners Got Crushed By Crypto Winter. Coming Year Might Bring More Pain

2022 was a challenging year for bitcoin miners, demonstrating “how to not create a mining firm,” However, until markets drastically improve, industry experts do not believe 2023 will be any better.

 

The mining sector appeared to have enough capital to expand at the beginning of 2022. Still, high energy costs, increased competition for Bitcoin blocks, and a bear market struck miners, wiping out those with high leverage.

 

Bankruptcies and loan defaults shook the industry, and as miners work to strengthen their balance sheets and operations, next year will bring much more hardship. However, it will also offer a chance for those who can afford to purchase assets and those who can increase their margins through new inventions.

 

CoinDesk spoke to the top analysts and executives in BTC mining to review the past year and forecast trends for the following year.

 

Industry insiders claim that over the past year, a lot of money was spent to increase hash rate, a metric for computing power on the Bitcoin network, but that many of these investments didn’t pay off because businesses piled on debt to finance the expansion only to see the economics of cryptocurrency mining collapse.

 

According to Juri Bulovic, head of mining at crypto mining and staking company Foundry, which is owned by CoinDesk’s parent company, Digital Currency Group, “many miners acted too deterministically,” projecting bitcoin (BTC) would hit $100,000 and not even considering that the price would drop below $20,000

 

Many businesses struggled to pay their debts due to the declining value of bitcoin.

 

The Head of Research at TheMinerMag said there are few financial ways to materialize those plans. On either sells BTC, borrows debts or issue parity. When selling mined BTC was enough to cover operating expenses, many selected debt financing as the market turned cold.

 

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Crypto

‘If you have gold, you’re dumb as fuck… Just get Bitcoin.’ – says Mark Cuban to Bill Maher

The Dallas Mavericks’ billionaire owner acknowledged to Cointelegraph that he does not personally own any gold, demonstrating his commitment to his principles.

 

There are ongoing debates about whether is a superior store of value: gold or Bitcoin BTC tickers down $16,661 in both the cryptocurrency community and traditional investment circles.

 

The billionaire owner of the Dallas Mavericks, Mark Cuban, argued that Bitcoin is a superior store of value to gold on the most recent episode of Bill Maher’s Club Random podcast, which aired on December 26.

 

Cuban responded with a cheeky agreement, saying, “I want Bitcoin to fall down a lot farther so I can purchase some more,” in response to Maher’s outright admission that he is “rooting against Bitcoin.”

 

Maher was then given a polite reprimand by Cuban, who said, “If you have gold, you’re dumb as fuck,” before advising him to “just acquire Bitcoin.”

 

In their subsequent discussion of the advantages and disadvantages of both asset classes, the billionaire emphasized to Maher that “you don’t own the physical gold, do you?” while asserting that gold “is not a hedge against anything.”

 

Cuban acknowledged to Cointelegraph that he did indeed hold more Bitcoin than gold, even going so far as to say, “Yes. I do not possess any gold. Cuban did, however, disagree with the notion that those who do not own their own cash or gold are necessarily asking for trouble. He did, nevertheless, admit that he personally chose to self-custody. He stated that valuable possessions should be stored safely as follows:

 

Depending on the location. There is a substantially higher risk if the custodial host lends out the gold or cryptocurrency for any purpose. I would make sure it’s a licensed business with necessary controls and liquidity minimum standards if you don’t self-custody.

 

According to a Cointelegraph article from October 25, increasing connections between Bitcoin and gold, the S&P 500, and the Nasdaq 100 showed that more investors are beginning to view BTC as a “relative safe haven.”

 

The increase in the correlation between Bitcoin and gold is one of the key signs reflecting investors’ trust in BTC despite the current economic slump, according to digital strategists at Bank of America.