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March 2009

Bitcoin (BTC) Drops Below $5K Despite US Fed Slashing Interest Rates

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Bitcoin

Bitcoin

The outbreak of the coronavirus has had a significant impact on markets, and cryptocurrencies have not been spared either. Over the weekend, the US Federal Reserve was forced to slash interest rates to almost zero, but that didn’t help Bitcoin (BTC), which dropped below $5,000.

Bitcoin (BTC) Drops Below $5,000

The largest crypto by market cap plunged below $5,000 on Tuesday as the European session got underway. After it breached the psychological milestone, it almost came close to dropping past $4,500, having shed 16% in a day. Similarly, other cryptocurrencies also experienced double-digit drops, with XRP, Litecoin (LTC), and Ether (ETH) dropping 15%, 16%, and 18%, respectively.

Before the Fed’s announcement over the weekend, BTC price was rallying and had gained 14.33%, hitting a daily high of $5,940. This strong upside movement allowed BTC to break out of the $5,070 to $5,520 range before starting to pull back following the announcement of the stimulus package. The central bank cut interest rates and said that it will buy treasury bonds worth $700 billion to help markets from crashing.

The move aims to combat the ongoing chaos in the markets resulting from the impact of the coronavirus. However, following the announcement, Dow Jones futures fell 1,000 points, which triggered a limit down. This was an indication that as the week began, major indices such as the Dow and S&P 500, could shed the gains accrued last week.

Concerns About Whether Central Banks Can Prevent a Recession

Other central banks, such as that of Japan, New Zealand, and Australia, also announced their stimulus packages to mitigate the potential of a recession. However, these interventions were unable to stop mass sell-off across markets as concerns continue growing about the long-term economic impact of lockdowns in various countries. Investors are not confident that the central banks can prevent the economy from plunging into a recession despite all these interventions.

>> Bitcoin Drops on Economic Damage from the Coronavirus

The movement of BTC has been mirroring traditional markets, thus raising concerns about the safe-haven notion. After surging following the announcement, the coin shortly corrected and dropped significantly.

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Bitcoin Soars As Bakkt is All Set to Launch Bitcoin Futures in September

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Bitcoin

Bitcoin

Since the infamous day of 2017, when Bitcoin went on its incredible run, there has been talk of the introduction of a financial exchange backed by the world’s biggest cryptocurrency. One of the instruments that have been spoken about by crypto experts for many years are crypto futures from Bakkt, but delay after delay stopped this from happening—until now.

Positive News For Bitcoin

Over the past few years, nothing came to fruition despite several rounds of talks among regulators in the United States, and so, the product was not introduced. However, it seems that the wait is over since the crypto exchange Bakkt has now announced that it has been cleared to launch Bitcoin futures as early as September this year.

This past Friday, Bakkt announced that the New York State Department of Financial Services has awarded the exchange a New York state charter to start offering Bitcoin futures. Bakkt has spoken about the product for a long time, and naturally, it created its fair share of buzz for more than a year. The BTC futures contracts offered by Bakkt are going to be physically settled and have been a subject of excitement among crypto users for a long time. According to the announcement made on Friday, the Bitcoin futures will be available for purchase from September 23 this year.

>> Japan’s Rakuten Introduces New Crypto Exchange

Bitcoin is up over 10% since the announcement.

The Chief Executive Officer of Bakkt, Kelly Loefler, made the announcement in a blog post yesterday. She stated, “With approval by the New York State Department of Financial Services to create Bakkt Trust Company, a qualified custodian, the Bakkt Warehouse will custody bitcoin for physically delivered futures.” This is a significant development, not only for Bakkt but also for the wider crypto community as more and more tokens vie for such derivative products. It is a market that may be at the nascent stages, but the potential for growth is huge, and it remains to be seen what sort of attention the Bitcoin futures contracts on Bakkt could attract.

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Wells Fargo to Launch USD-Pegged Stablecoin for Internal Settlements

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Wells Fargo

Wells Fargo

US multinational megabank Wells Fargo & Co. (NYSE:WFC) has revealed plans to launch a US dollar-linked stablecoin that will run on the company’s first blockchain platform.

The “Wells Fargo Digital Cash”

The service, dubbed “Wells Fargo Digital Cash,” is a tokenized dollar that will be used in internal settlement across the firm’s business. The stablecoin will be piloted first and will debut next year. It’s initially targeting USD transfers, but there is a wider plan to accommodate transfers in other currencies within the company’s blockchain network.

On Tuesday, the company said that the stablecoin will enable settlement of internal cross border payments on the Wells Fargo network. Also, international locations will be able to transfer funds between each other through the token.

Lisa Frazier, Wells Fargo’s head of innovation, said that with banking services increasingly becoming digital, the company sees a growing demand for minimizing challenges that come with traditional borders. She added that with technological advancement, Wells Fargo is in a strong position to reduce the friction that traditional borders present.

The Solution Will Enable the Seamless Transfer of Funds

The company has indicated that its proprietary blockchain network will enable it to transfer money in real-time. This will be seamless without impacting the underlying account, reconcilement infrastructure, or the transaction postings. It will also make it possible for international locations to transfer funds outside normal operating hours. This will do away with the need of third party payment intermediaries as well as reduce time and costs associated with the transactions.

>> Binance Makes Investment in Chinese Crypto Media Firm Mars Finance

Wells Fargo has indicated that its blockchain is built on Corda Enterprise, which is a version of R3’s DTL. A spokesman said that R3 Corda Enterprise is a solution that enables banks to scale transaction volumes and throughput and data confidentiality controls. The system that Wells Fargo is piloting is synonymous to JPMorgan’s JPM Coin and its Interbank Information Network.

The pilot will begin next year with transfers starting in US dollars before expanding to include other currencies. The company hopes to scale the solution to all its branches worldwide.

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Samsung Blockchain? Tech Giant Developing Blockchain Network

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Samsung blockchain

Samsung blockchain

South Korean tech giant Samsung is reportedly developing its own blockchain network. It’s expected the venture will lead to a Samsung token in the near future.

Samsung Blockchain

According to an internal sourcefamiliar with Samsung’s internal situation,” the company’s wireless division is building a mainnet based on the Ethereum blockchain.

Led by its blockchain task force, the new network is still at the “internal experimental” stage.

According to the source:

“Currently, we are thinking of private blockchain, though it is not yet confirmed. It could also be public blockchain in the future, but I think it will be hybrid – that is, a combination of public and private blockchains.”

Once the Samsung blockchain is up and running, the company is expected to launch a “Samsung Coin” token.

“The market expects Samsung Coin to come out, but the direction has not yet been decided.”

Public Blockchain

If the Samsung blockchain becomes a public blockchain, then the Samsung Coin could be traded on crypto exchanges just as regular cryptocurrencies are.

The technology may also be adapted to work on its payments app Samsung Pay—a move that makes sense but isn’t yet certain.

Much remains unknown about the Samsung blockchain task force, but Samsung has been developing its technology for some time.

>> Is TD Ameritrade Working to Enter the Crypto Industry?

Samsung Blockchain and Cryptocurrency

Two months ago, it unveiled its first venture into the cryptocurrency space via its Galaxy S10 smartphone. The flagship device has the ability to store cryptocurrency private keys and was developed with “various crypto and blockchain related projects” as standard on the device.

Its first dApp partner is COSMEE, a blockchain-based beauty social media platform.

The Galaxy S10 also supports South Korean cryptocurrency wallet Enjin. Capable of sending and receiving ERC-20 tokens and ERC-1155 crypto game assets, the wallet comes pre-installed on the phone.

What do you think of the Samsung blockchain?

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