Hodler’s Digest comes every Saturday and helps you keep track of every single important message that happened this week. The best (and worst) quotes, introductory and regulatory highlights, leading coins, predictions, and more – one week on Cointelegraph in one link.
This week’s top stories
Bitcoin mining difficulty has just dropped a record 28% – but will this help prices rebound?
Bitcoin has its biggest drop in mining difficulty of almost almost. recorded 28%, but one model suggests that prices won’t hit until October.
The decline is in response to the ongoing migration of miners from China and the resulting loss of hash rate – and this could bring a profit boost to the miners still working.
Bitcoin has now closed its third consecutive red monthly candle, meaning that BTC / USD is now the furthest away from its stock-to-flow model estimates in more than two years. Data shows that the world’s largest cryptocurrency fell 40.36% in the second quarter … the biggest quarterly slump in over three years.
Plan B said the next six months will “make or break” for the stock-to-flow model, adding: “Even for me, it’s always a bit uneasy when the Bitcoin price is at the lower limit of the stock-to-flow model.”
Binance faces regulatory upheaval as lawmakers target “global” exchanges
Regulatory problems are increasing for Binance. Japan has accused the exchange of operating without proper registration, and tightened measures in the Canadian province of Ontario have led Binance to announce that it will cease all operations there.
Monday saw Binance suspend the use of Faster Payments in the UK which means UK customers would take longer to withdraw pounds from the exchange. It did so days after the Financial Conduct Authority notified the exchange that it would cease all regulated activities in the country. However, this was later restored.
Thailand’s Securities and Exchange Commission and the Cayman Islands Monetary Authority are the latest financial regulators to announce regulatory action against Binance.
As a large global exchange, the exchange struggles to find the right jurisdiction to run its business.
Bitcoin.org is blocking access to downloading Bitcoin software in the UK
Bitcoin.org has prevented UK visitors from downloading the Bitcoin Core software as well as the whitepaper written by Satoshi Nakamoto.
It comes days after a UK court ruled in favor of self-proclaimed Bitcoin inventor Craig Wright.
He had accused Bitcoin.org and its current operator, Cøbra, of copyright infringement for hosting the BTC whitepaper in the UK
Cøbra chose not to take on a defense to protect her anonymity – and was also sentenced to pay £ 35,000 (about $ 48,600) in trial costs.
The verdict is the latest volley in Wright’s attack on people who deny his claims to be Bitcoin creator Satoshi Nakamoto.
Strike to offer free bitcoin trading, aiming on Coinbase and Square
Payment platform Strike has announced that it will enable US customers to buy and sell Bitcoin with almost no trading fees – and take on Coinbase, Square and PayPal.
Strike founder and CEO Jack Mallers says his platform is “the cheapest, easiest place on the planet to get BTC.”
Mallers has also targeted Coinbase directly, calling Coinbase’s fees “asinin”. He added: “Make no mistake when you buy Bitcoin on Coinbase, support shitcoins.”
In other developments, Coinbase has announced that it plans to list digital assets on its exchange faster than now. And as the exchange wants to strengthen its global presence, it will open a crypto app store that will offer products developed by third parties.
Meanwhile, Robinhood has submitted an application with the US Securities and Exchange Commission for an initial public offering. That motion came a day after regulators ordered the company to pay a $ 70 million fine for alleging “widespread and significant harm” to thousands of users.
Elon Musk’s most recent attempt to pump Dogecoin fails miserably
Dogecoin prices rose but did not skyrocket after receiving further confirmation from Tesla CEO Elon Musk on Thursday.
Musk’s first tweet was “Release the Doge!” – Sending the joke cryptocurrency up 8.42% to $ 0.261. This was followed by a sell-off that caused DOGE / USD to decline $ 0.247.
Less than an hour later, Musk tweeted a rather unusual message that said: “Baby Doge, doo, doo, doo, doo, doo, Baby Doge, doo, doo, doo, doo, doo, Baby Doge, doo, doo, doo, doo, doo, Baby Doge.
DOGE / USD then rose 5.22% to $ 0.26 after the second tweet.
This is modest compared to the wild increases we’ve seen in the past after Musk’s tweets.
Winner and Loser
At the end of the week, Bitcoin is at $ 34,544.52, Ether at $ 2,219.30 and XRP at $ 0.2469. The total market capitalization is $ 1,433,529,255,589.
Among the top 100 cryptocurrencies are the top three altcoin winners of the week XinFin network, connection and Internet computer. The three biggest altcoin losers of the week are forehead, Theta fuel and Revain.
For more information on crypto pricing, be sure to read Market analysis by Cointelegraph.
The most memorable quotes
“Make no mistake when you buy Bitcoin on Coinbase, support shitcoins.”
Jack Mallers, Strike CEO
“I suggested to the President that whatever Salvador does about Bitcoin, you make sure that it is well regulated, transparent, accountable, and that you protect yourself from malicious actors.”
Victoria Nuland, US State Department
“While I believe in the power of new technologies, we also need to manage their impact on our economy and society.”
Rishi Sunak, British Chancellor
“The ‘Rick Astley’ is the owner who buys all the time and never tends to sell a lot.”
Willy Woo, Bitcoin Analyst
“140 free NFTs for 140 of you, besties.”
“In my opinion, good currency is currency that is used to buy coffee, buy your house, buy a car, and in that respect Bitcoin failed, and not just failed, it failed miserably.”
Aswath Damodaran, professor of finance at New York University
Forecast of the week
44% of Investors Expect Bitcoin to Fall Below $ 30,000 in 2021: CNBC Survey
A recent CNBC poll suggests that 44% the portfolio managers and equity strategists believe Bitcoin will be below that $ 30,000 by the end of this year.
Of the rest 56%, 25% predicted that the price would skyrocket and level off at $ 45,000 – while another 25% projected that we could see $ 55,000.
A small minority of 6% said bitcoin could return to $ 60,000, in the vicinity of the $ 65,000 All time high in April 2021.
FUD of the week
Bitcoin has failed miserably as a currency, says NYU’s “valuation dean”
Aswash Damodaran launched another violent attack on Bitcoin.
The finance professor at New York University said: “In my opinion, good currency is currency that is used to buy coffee, buy your house, buy a car, and in that respect Bitcoin failed, and not just failed, it failed miserably.”
He added that Bitcoin’s only claim to fame resides in the returns generated by early investors, adding: “When I meet Bitcoin enthusiasts, they seem to share this idea that Bitcoin is a great currency because they made a lot of money with it.”
Back in May, Damodaran claimed that ether had a better chance of becoming a commodity than Bitcoin.
The British NatWest Bank limits transactions to crypto exchanges
As the UK cryptocurrency crackdown continues, another high street bank has stepped up efforts to limit the use of digital assets by its customers.
The Natwest Group has reportedly capped the daily amount its customers can send to cryptocurrency exchanges due to concerns about investment fraud and fraud. However, the new limits on fiat currency transfers were not disclosed.
NatWest said the restrictions are temporary – and in some cases payments to certain crypto-asset firms that have “experienced particularly significant levels of fraud-related damage” will be blocked altogether.
“We don’t have much time” to regulate crypto, says the governor of the Bank of France
The Governor of the Bank of France, François Villeroy de Galhau said Europe should make crypto regulation a priority or risk digital assets challenging its monetary sovereignty.
He warned that the European Union only had “a year or two” left to create a regulatory framework for cryptocurrencies.
“We in Europe need to act as soon as possible,” added the governor.
Best Cointelegraph Features
London Fork joins Ethereum’s testnet as the difficulty bomb is delayed
With the start of the London upgrade of Ethereum in the Ropsten test network, the anticipation of the mainnet for stakers and miners increases.
Stablecoins put to the test: USDT stands for “commercial paper” tether
Are stablecoins really stable? Tether’s basket of currency reserves raises eyebrows as a new round of support discussions begins.
Slowly but not steadily: India’s stance on Bitcoin and crypto is evolving
India’s regulatory stance on crypto has been shaky at best and biased at worst, but what is India actually doing about crypto?