• Blackrock’s CEO Larry Fink has warned about additional bank seizures and shutdowns that could result from regulatory changes in response to the failures of several major banks in the U.S.
• Fink noted that it is too early to know how widespread the damage is, but markets remain on edge due to asset-liability mismatches.
• He believes banks will pull back on lending and stricter capital standards are likely, while capital markets will play a larger role in providing financing over the long-term.
Blackrock CEO Warns of Bank Seizures and Shutdowns
The CEO of Blackrock, the world’s largest asset manager, has warned about additional bank seizures and shutdowns that could result from regulatory changes in response to recent major bank failures in the U.S. Larry Fink shared his view on this matter in his annual chairman’s letter to investors this week.
Fink described that Silicon Valley Bank was shut down by regulators last week along with two smaller banks, while Silvergate Bank announced voluntary liquidation and 11 banks bailed out First Republic Bank this week. In Switzerland, Credit Suisse also fell into trouble and received a bailout from the Swiss central bank – all cases being examples of an asset-liability mismatch.
The Blackrock executive noted that so far the regulatory response has been swift and decisive actions have helped stave off contagion risks – however uncertainty remains as to what other consequences may arise from these events.
Impact on Banks & Capital Markets
Fink believes some banks will need to pull back on lending to shore up their balance sheets with stricter capital standards for them likely coming into effect. Over time he anticipates clients awakening to these asset-liability mismatches turning more often towards capital markets for financing instead of relying solely on traditional banking lenders such as those recently affected by these events.
Overall it appears certain further regulation will be required within both banking institutions as well as alternative sources of financing such as capital markets due to current market conditions caused by recent developments within the banking industry worldwide according to Larry Fink, Chairman and CEO of Blackrock Asset Management Company.
• Solana (SOL) and Polygon (MATIC) both rebounded from multi-month lows during Saturday’s session.
• Solana recovered from a two-month low to an intraday peak of $18.85, while MATIC/USD jumped by nearly 7% earlier in the day.
• The global crypto market cap is currently trading 1.8% higher, following a nearly 10% drop on Friday.
Biggest Movers: SOL Rebounds From 2-Month Low to Start the Weekend
Solana rebounded from a two-month low to start the weekend, as bulls reentered the market to buy the recent dip. Overall, the global crypto market cap is currently trading 1.8% higher, following a nearly 10% drop on Friday. Polygon was another notable mover, as price rose by nearly 7% on Saturday.
Solana was back in the green to start the weekend, as bulls reappeared following Friday’s red wave. Following a low of $16.19 in yesterday’s session, SOL/USD moved to an intraday peak of $18.85 on Saturday. The move sees solana climb above a recent floor at $17.30, moving away from its weakest point since January 13 in the process.
Looking at the chart, this was helped by the relative strength index (RSI), which found a point of support at the 30.00 level. As of writing, the index is now tracking at 32.85, which despite the rebound, remains deep in bearish territory. The momentum of the 10-day (red) moving average continues to trend downwards, which could be a sign that there could be more turbulence ahead.
In addition to solana, polygon (MATIC) also rebounded from a multi-month low during Saturday’s session
• In February, the value of digital assets under management (AUM) for digital asset investment products rose to $28.3 billion, the highest number recorded since May 2022.
• Bitcoin and Ethereum continue to account for the lion’s share of all digital assets under management.
• Grayscale remains the most dominant asset management firm with $20.8 billion worth of digital assets under management.
Digital Assets Under Management
The value of digital assets under management (AUM) for digital asset investment products in February rose to $28.3 billion, the highest number recorded since May 2022, according to Cryptocompare stats. Bitcoin and ethereum continue to account for the lion’s share of all digital assets under management at 70.5% and 24% respectively. Grayscale is still the most dominant asset management firm with $20.8 billion worth of AUM.
SEC Enforcement Actions
The increase in investor appetite for digital assets came against the backdrop of a U.S Securities and Exchange Commission (SEC)-led crackdown on industry players and macroeconomic setbacks as well as other factors such as innovation in traditional markets like stocks and bonds that may reduce correlations between investments in these markets and those in cryptocurrencies over time .
Bitcoin & Ethereum AUM Market Share
The assets under management (AUM) for Bitcoin and Ethereum-based products saw an increase of 6.06% and 1.72%, respectively, reaching $20 billion and $6.80 billion according to data from Cryptocompare report . Digital assets that are included in the category of „Other“ and „Basket“ also increased by 14.7% to $1.16 billion and 2
• Mike McGlone, senior macro strategist at Bloomberg Intelligence, predicts that a recession could be the top catalyst to push gold prices above the $2,000-per-ounce range.
• The global cryptocurrency market capitalization is currently around $1.08 trillion and bitcoin has never seen a U.S. recession nor Fed tightening before.
• According to McGlone’s data, there is a high probability of an economic contraction which may push gold prices higher in 2023 if a recession occurs.
Mike McGlone Shares March Outlook
Bloomberg Intelligence senior macro strategist Mike McGlone shared his March outlook this week concerning assets like commodities, precious metals, equities, and bitcoin. He noted that the „top catalyst“ for gold to rise above the $2,000-per-ounce range is a recession with a sharp drop in stock markets as well as an economic contraction from the yield curve in about 30 years and Federal Reserve still tightening its stance. The global cryptocurrency market capitalization today is $1.08 trillion with bitcoin’s 50-week moving average below its 200-week level amid Fed’s tightening; however it has bounced to around $25,000 recently signaling divergent strength vs central bank according to McGlone.
Gold Prices Could Reach Above $2K
McGlone believes that gold prices have potential to reach above $2k per unit if the U.S economy slides into a recession due to its greatest potential for economic contraction from the yield curve in about 30 years and Federal Reserve still tightening its stance which would guide most metals lower and gold higher in 2023 according to him. He also mentioned that bitcoin has never faced this kind of situation before but if it can sustain above $25k then it will signal divergent strength vs central bank as swift snapbacks are typical of bear markets.
Data Predicts High Probability of Recession
The chances of a recession look likely according to Mike Mcglone’s data he stated “Based on the highest probability of recession from three month – 10 year treasury curve in our database since 1992″. This would suggest that if indeed a US recession does occur then chances are high that gold price could soar up above 2K per ounce which was his point of view regarding this matter when he was discussing different assets like commodities ,precious metals ,equities and cryptos earlier this week .
Impact on Bitcoin Price
When talking about bitcoin price ,Mc Glone questions whether recent rally was hollow or an enduring recovery with other factors such as Fed tightening impacting crypto market cap which currently stands at 1 trillion dollars approximately indicating some decrease over last day by 1 percent 57 percent .He further added that at some point most risk assets will bottom out because US central Bank is still in tightning mode but there is always hope as long treasuries yields remain low compared to historical levels .
In conclusion Mike Mc Glone discussed various factors such as US Economy sliding into recssion ,Fed Tightening ,treasury yields remaining low compared to historical levels and so on impactng different asset prices including precious metal such as Gold which have great potential reaching beyond 2000 USD per ounce depending upon how US Economy behaves and reacts going forward .Moreover Cryptocurrency Market cap also stands at decent figure of 1 Trillion Dollars indicating slight decrease over last day .
• Colombian court held one of the first judicial hearings in the metaverse using Horizon Worlds technology.
• Participants were represented by virtual avatars, and their identities were verified through emails sent to them.
• While the hearing was successful, some critics questioned its effectiveness as compared to video hearings.
Colombian Court Holds Hearing in the Metaverse
Historic Virtual Process
María Victoria Quiñones Triana, magistrate of the Magdalena court, approved the realization of this hearing, using Horizon Worlds technology provided by Meta and virtual avatars to represent participants in the process. The court used various avatars to represent each one of the parties involved and verification numbers sent to emails registered in their names as proof of identity.
Significance for Judicial Branch
Quiñones stated that verifying true identity is a key process when it comes to utilizing metaverse tech for judicial purposes: „The metaverse constitutes a technological tool that can facilitate access to the administration of justice.“ She further added that information technology can be utilized for expediting and facilitating these processes.
Limitations & Criticism
The public audience who watched via Youtube had mixed opinions about using metaverses for judicial processes. Some commented that there weren’t any advantages compared to video hearings, while others argued it would make transportation easier for people living far from courts. Quiñones responded with understanding towards constructive criticism regarding deficiencies within the Judicial Branch.
Although this was an historic moment for Colombia’s legal system, more research must be done on how effective utilizing metaverses are compared to other methods such as video hearings when it comes to analyzing psychological traits of participants or providing transportation assistance for citizens living far away from courts.
•Solana (SOL) prices dropped to a three-week low on Feb. 10, as market momentum turned bearish.
•Cardano (ADA) was also on the decline, falling by as much as 8% today.
•The Relative Strength Index (RSI) for both tokens is currently at its weakest point since early January.
Biggest Movers: SOL and ADA Plunge
Cryptocurrency markets saw a bearish shift in momentum on Feb.10, resulting in Solana (SOL) dropping to a three-week low and Cardano (ADA) declining by 8%. The Global Market Cap has decreased 4.23%, with bears recapturing sentiment.
Solana Prices Drop
Following a high of $22.90 on Thursday, SOL/USD moved to an intraday low at $20.20 earlier in the session, which is its lowest point since January 19 when solana last collided with a floor at $20.00. The 14-day Relative Strength Index (RSI) has consistently declined since hitting its peak of 87.67 back on January 13 and is now tracking at 44.21 – its weakest point since the beginning of January when SOL was under $10.00 – indicating that prices are gradually moving in the right direction for longer-term bulls .
Cardano Prices Decrease
Cardano (ADA) extended its own recent sell-offon Friday, with prices falling for a third straight session to an intraday low of $0.3558 earlier today after peaking at $0.3896 on Thursday – breaking out of a floor at $0
• Pick n Pay, a South African retailer, now accepts bitcoin payments at all its stores across the country.
• The retailer was able to do this due to the Financial Sector Conduct Authority (FSCA) declaring crypto as a financial product.
• Customers can use the bitcoin lightning network to buy groceries, airtime and electricity tokens from Pick n Pay stores.
South African Retailer Pick n Pay Now Accepts Payments via BTC
Pick n Pay, one of South Africa’s leading retailers, has announced it now accepts bitcoin as payment at all its stores across the country. Using the bitcoin lightning network, customers can now purchase items such as groceries, airtime and electricity tokens with BTC.
Background on Bitcoin Adoption in South Africa
In November 2022, the Financial Sector Conduct Authority (FSCA) declared crypto a financial product – paving the way for Pick n Pay’s adoption of BTC payments. This followed an experiment by PNP to accept bitcoin payments at one of its staff canteens back in 2017 which proved successful but too costly to continue using it then.
Reaction to Announcement
Crypto QR, a South Africa-based crypto payments firm welcomed PNP’s move that allows residents to use bitcoin for everyday purchases with their tweet „Good news, everyone! Crypto QR is now active at all Pick-n-Pay stores across South Africa“. Twitter users also lauded PNP for taking a step that helps promote use and adoption of bitcoin as an alternative payment method.
Disadvantages of Using Bitcoin for Everyday Purchases
However, some Twitter users pointed out the disadvantages of using crypto assets for everyday purchases such as price instability which could lead shoppers overpaying for something if prices change quickly after buying it.
Overall this move by Pick n Pay provides more opportunities for people to spend their bitcoins on everyday purchases while furthering cryptocurrency adoption in South Africa.
• Paraguayan bitcoin mining companies are experiencing a significant decrease in profitability due to the government’s power fee hikes of over 50%.
• Business developer Nano Grijalba of Braiins Mining has expressed concern over the discriminatory nature of the fee hikes and its impact on the hosting activity in the country.
• The Paraguayan Congress passed a legal framework to regulate cryptocurrency mining and exchange activities in the country, however the law was vetoed by the current president of Paraguay.
Paraguay has long been seen as an attractive destination for cryptocurrency miners, however the country’s government has recently implemented power fee hikes of over 50% for cryptocurrency mining activities, creating an unfavorable environment for miners and significantly reducing their profitability. Nano Grijalba, business developer of Braiins Mining, has spoken out about the discriminatory nature of the fee hikes and its impact on the hosting activity in the country. He noted that the costs and margins of the international market have made offering this service impossible due to the high fees.
Grijalba also raised concerns about the environmental logic of these measures, stating that “Paraguay’s decision to increase fees for bitcoin mining, a clean industry, while attracting high-emissions industries with low fees, is questionable. We must prioritize support for clean industries for a sustainable future.”
In July of last year, the Paraguayan Congress passed a legal framework to regulate cryptocurrency mining and exchange activities in the country, establishing limits to the power fees for mining. However, this law was vetoed in August by the current president of Paraguay, further cementing the unfavorable environment for miners.
The power fee hikes have caused significant losses for Paraguayan mining companies and have put the future of the hosting activity in the country into doubt. As a result, many miners are looking to other countries to pursue their activities, as the high costs make mining in Paraguay unprofitable. This has led to a decrease in the number of miners, and a decrease in the number of jobs the industry is creating.
It remains to be seen how the government will respond to the negative impacts of the power fee hikes, and if they will reconsider their decision to veto the legal framework that was proposed to regulate cryptocurrency mining and exchange activities. Until then, Paraguayan miners will continue to struggle to make a profit in the country.
• The World Economic Forum (WEF) has announced the rollout of its own metaverse platform, the Global Collaboration Village.
• This virtual world will allow for more efficient collaboration between world leaders, as well as extending Davos meetings throughout the year.
• The technology that will power this metaverse platform is provided by Microsoft through its Mesh suite.
The World Economic Forum (WEF) has announced the rollout of the Global Collaboration Village, its own metaverse platform. This virtual world is designed to look like the actual town of Davos in which the organization meets once every year. The platform will allow for more efficient collaboration between world leaders, as well as extending Davos meetings throughout the year.
Klaus Schwab, chairman of the organization, believes that meeting through avatars and digital representations might empower the creativity behind these meetings, compared to the video meetings that commonly occur during these events. He is optimistic that this could revolutionize global collaboration and hopes that the effect of the policies discussed at Davos might be amplified through constant feedback.
The technology that will power this metaverse representation of Davos will be provided by Microsoft and its Mesh suite, which extends the functionality of Teams, the popular business meeting software, to allow users to appear as 3D avatars. Mesh also has a specially designed app for VR headsets that allows for more interactivity with digital worlds.
The Global Collaboration Village will be accessible to users with a Microsoft account and VR headsets. The WEF is hoping that the platform will bring together people from all around the world and enable them to engage in meaningful conversations. It is also hoping that this level of collaboration will allow for more informed decisions to be made.
The WEF is planning to launch the Global Collaboration Village in early 2022 and will be inviting people to join the platform as soon as it is available. The potential of this platform is immense and it could be the first step in a new era of collaboration between world leaders.
• Donald Trump recently launched a non-fungible token (NFT) card collection which sold out on the first day.
• Winners of the Trump-themed prizes are selling prize NFTs on secondary NFT marketplaces such as Opensea.
• In the past 24 hours, the “Win Trump Prizes” collection has seen 38 ether, or roughly $53,000 in sales.
Donald Trump recently launched a non-fungible token (NFT) card collection, offering lucky winners the chance to have a one-on-one Zoom meeting with the 45th president of the United States and a gala dinner with the former president in Florida. The NFT collection was met with mixed reactions by pundits on the left side of the political spectrum, but still sold out on the first day of its launch.
Now, winners of the Trump-themed prizes are selling prize NFTs on secondary NFT marketplaces such as Opensea. The NFTs act as passes for the Zoom meeting and dinner with Trump, and were minted on the Polygon blockchain, just like the trading card set. During the past 24 hours, the “Win Trump Prizes” collection has seen 38 ether, or roughly $53,000 in sales, on Thursday, Jan. 12, 2023.
The collection does not represent a large portion of non-fungible token sales, however, as it only represents 0.18% of the total NFT sales recorded on Jan. 12th. Nevertheless, it still shows the power of NFTs and their ability to generate real-world value for their owners.
It remains to be seen if the “Win Trump Prizes” collection will continue to generate sales, or if it will eventually become just a footnote in NFT history. For now, however, it appears to be a success, with the sale of 38 ether in just 24 hours, and it’s a great example of how NFTs can be used to generate real-world value.