Read in the Digest
- Crypto Traders Wait While Fed Ponders, Bitcoin Downtrend to Continue – Novogratz, Market Fear Worsens
- Crypto Prices Reach Quintillions Due to Bug in Coinmarketcap & Coinbase
- Elon Musk Announces Tesla Will Accept Dogecoin, DOGE Surges
- Robinhood Acquires Cove Markets, Nuvei Partners With Visa, Cash App to Allow Users Send Bitcoin
- Anchorage Raises $350 Million, FTX Signs $10M Deal With Golden State Warriors
Crypto Traders Wait While Fed Ponders, Bitcoin Downtrend to Continue – Novogratz, Market Fear Worsens
After months of waiting, the Federal Reserve of the United States is expected to announce a policy shift on Wednesday. The Fed will reportedly decide to move faster to wind down its bond purchases and signal if it will start raising interest rates next year.
Venture capitalists and crypto investors are waiting to see if the Fed will change its bond end date from June to March. If that happens, the central bank will start raising interest rates to 2 or 3 in 2022 and another 3 to 4% in 2023.
Cryptocurrency billionaire, Mike Novogratz, doesn’t see the light in the short-term for Bitcoin. Novogratz says the downtrend could continue until Bitcoin drops to $42,000. Then, he believes Bitcoin would be ready to rally after finding support at the important $40k level.
The prolonged crypto downtrend has created the longest stretch of fear in the crypto market. The market has been in extreme fear for one straight month – the longest stretch since April 2021, when the market was in extreme fear for two months.
- Despite the negative outlook over the crypto market, assets are beginning to recover, with Bitcoin, Ethereum, and Binance all recovering.
Crypto Prices Reach Quintillions Due to Bug in Coinmarketcap & Coinbase
For a brief moment, on Tuesday, December 14, the prices of cryptocurrencies surpassed even the most insane price predictions. Crypto prices were heavily inflated thanks to a glitch on popular trading app Coinbase and data provider CoinMarketCap.com.
As a result of the glitch, data from CoinMarketCap showed that the price of Bitcoin was as much as $1.5 quadrillion, Solana had a value of $338 million, Cardano $2 million, and Wrapped Bitcoin had a price of $250 billion.
As a result, some investors believed that they had become trillionaires overnight. However, it was a short-lived victory as both Coinbase and CoinMarketCap acknowledged the glitch and fixed the situation.
With prices back to normal, Coinmarketcap made light of the situation, as they tweeted;
How did it feel to be a trillionaire for a couple hours?😂— CoinMarketCap (@CoinMarketCap) December 14, 2021
- Following the glitch, the crypto market has begun to recover with Bitcoin, Ethereum, Solana, Dogecoin, and Avalanche all gaining.
Elon Musk Announces Tesla Will Accept Dogecoin, DOGE Surges
A day after explaining how Dogecoin outperforms Bitcoin in processing transactions, Elon Musk has confirmed that his electric car company, Tesla, will begin accepting Dogecoin as payment for some of its merchandise.
Tesla will make some merch buyable with Doge & see how it goes— Elon Musk (@elonmusk) December 14, 2021
The tweet sparked a rally that saw Dogecoin (DOGE) gain as much as 20%, reaching an interday high of $0.2196 – its highest price in December.
The five days price chart of Dogecoin. Source: TradingView
Dogecoin’s 13% gain over the last 24 hours makes it the best performing of the top 10 cryptos. At the time of writing, DOGE now trades at $0.1804. Dogecoin now has a $23.99 billion market cap – the 10th largest in the industry.
- Despite the price boost, DOGE is the biggest top-10 underperformer, trading 77% less than its May 8 all-time high of $0.7376.
Why You Should Care
While it originally was launched as a meme coin, Dogecoin’s impressive technology has caught the attention of one of the world’s richest men, getting more attention in the process.
Robinhood Acquires Cove Markets, Nuvei Partners With Visa, Cash App to Allow Users Send Bitcoin
On Tuesday, American no-fee broker Robinhood announced that it has acquired cross-exchange trading platform Cove Markets. Robinhood hopes to bolster our crypto trading platform and help us strengthen our leadership in the crypto industry.
As part of the deal, the entire team of Cove Markets, including its co-founders, will join Robinhood. However, the amount Robinhood paid to acquire Cove Markets was not publicly announced.
Global payment giant Nuvei Corporation, through its subsidiary Simplex, is preparing to launch branded crypto Visa debit cards to its partners across the European Economic Area and the United Kingdom. The move comes after a partnership with Visa.
Block’s (formerly Square) Cash App has announced that it will now allow its users to send Bitcoin and stock to their friends. In addition, Cash App announced that users don’t need to own stock or Bitcoin to gift it.
- Although cryptocurrencies have gained massive adoption, the Bank of England deputy governor warns that crypto prices could fall to zero
Anchorage Raises $350 Million, FTX Signs $10M Deal With Golden State Warriors
Anchorage Digital, the first federally regulated bank, has announced the completion of a $350 million funding round led by private equity firm KKR & Co Inc. After this funding round, Anchorage Digital is now valued at $3 billion.
According to Diogo Mónica, president and co-founder of Anchorage, the fund will be used to expand its international services. The regulated exchange also received funding from Goldman Sachs, Andreessen Horowitz, Apollo credit funds, and Wellington Management, among other investors.
Leading derivatives exchange, FTX, has signed a $10 million year deal with pro-basketball team Golden State Warriors. The FTX logo will be virtually displayed on the stadium floor during the Warrior’s national NBA games as part of the sponsorship deal.
In addition, FTX will receive brand placement with the NBA 2K esports team and Warrior’s G League Club. The exchange will also get arena signage at the Chase Center and rights to the team’s NFTs.
- JPMorgan CEO, Jamie Dimon, believes regulators will regulate the hell out of cryptos
Why You Should Care
More than ever, crypto firms are enjoying increased support and finding new cases in different industry