Weekly Crypto Digest for October 09 - 15, 2023.
Monday, October 16, 2023
Fidelity named Bitcoin the safest digital asset, US inflation slowdown stalled, Bloomberg predicts a 90% probability of Bitcoin ETF approval and more news.
Fidelity named Bitcoin the safest digital asset
In a recently published report from investment firm Fidelity, the authors urge investors to evaluate Bitcoin separately from other crypto assets.
In particular, we can highlight the following main points from this material:
- Bitcoin is an asset that allows you to store value in a dynamic world;
- it is the most secure, reliable, and decentralized form of electronic money. Any “improvement” of it will involve certain compromises;
- this does not mean that other crypto-assets are not needed. They are aimed at solving other problems;
-Bitcoin cannot be valued in the same way as other assets, which investors should consider when assessing risks.
Fidelity calls Bitcoin a potential new global monetary commodity. However, according to the report, the chances that it will be surpassed by another crypto asset are quite low.
The authors cite the Lindy effect as confirmation of the reliability of the ecosystem. According to him, the expected “life expectancy” of individual technologies is directly proportional to their current “age”.
According to Fidelity analysts, Bitcoin has already successfully overcome many shocks.
The US inflation slowdown stalled
Consumer price growth in the US in annual terms amounted to 3.7% in September, the same as a month earlier, which turned out to be higher than the forecast of 3.6%. On a monthly basis, prices rose by 0.4% - worse than economists' expectations (0.3%) and against 0.6% a month earlier.
The growth in core inflation, which does not take into account food and energy prices, amounted to 4.1% on an annual basis and 0.3% on a monthly basis. The previous figure was 4.3% and 0.3%, respectively.
Analysts predicted figures at 4.1% y/y and 0.3% m/m.
CPI excluding rents and energy rose by the highest since the beginning of the year 0.6% m/m. Previously, the Federal Reserve indicated that monetary authorities would be guided by price dynamics in the services sector.
Bloomberg analysts predict a 90% probability of Bitcoin ETF approval
Following notable changes to the ARK 21Shares Spot Bitcoin ETF application, Bloomberg ETF analysts James Seyffarth and Eric Balchunas predicted that the US Securities and Exchange Commission (SEC) could approve the fund as early as next year.
In a post published on his platform X (formerly Twitter), Seyffart highlighted his team's forecast of a 90% chance that a spot Bitcoin ETF will be approved by Ark Invest's January 10 deadline. January 10 is the day the SEC expects, will make the final decision (approval or refusal) on ARK Invest’s application for a spot Bitcoin ETF.
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The Solana Foundation offered a $400,000 reward for finding a bug in the blockchain code
Jacob Creech, head of developer relations for the Solana Foundation, announced the new award. Those users who can “disable” the blockchain in the source code will receive $400,000.
Note that this is not the only reward under the project’s bug bounty program. Others can be viewed on Solana's GitHub. They provide for payments ranging from $5,000 to $2 million.
Notably, all rewards are awarded in locked SOL tokens for the corresponding amount. You can use the funds only after a year.
Real USD has lost its peg. The stablecoin rate fell by 50%
The real estate-backed stablecoin Real USD (USDR) has lost its peg. The asset price dropped by 50%.
Before the incident, the capitalization of the coin issued by TangibleDAO was about $45 million, and the rate was kept at the target level. However, on Wednesday, October 11, the USDR suddenly fell in price by about half.
The stablecoin was backed mainly by illiquid assets such as real estate and, to a somewhat lesser extent, by the “stablecoin” DAI.
At the same time, on October 11, an unknown trader exchanged $131,350 in the coin for less than 0.0001 USDC against the backdrop of the Real USD (USDR) stablecoin losing its peg.
On top of that, he paid a transaction fee of 0.0012 BNB ($0.25).
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