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Bloomberg BTC Bombshell, Coinbase Fury, Ether vs. Tether: Hodler’s Digest, June 1–7

Bloomberg BTC Bombshell, Coinbase Fury, Ether vs. Tether: Hodler’s Digest, June 1–7

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Bloomberg thinks Bitcoin could return to record highs of $20,000 this year, but warns Ether may not be the world’s second-biggest cryptocurrency for much longer.

Coming every Sunday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.

Top Stories This Week

Forget $10,000, Bitcoin’s $12,000 breakout will catch everyone off guard

Once again this week, BTC suddenly soared into five figures — hitting $10,380 soon after Donald Trump mobilized police and the National Guard to disperse protests outside the White House. The surge helped break a long-term descending trendline of $10,250 that had been in place since Bitcoin hit all-time highs in December 2017. Unfortunately, it wasn’t to last — and once again, the multiyear resistance of $10,500 was too much for BTC to handle, with the world’s biggest cryptocurrency plummeting by 14% in less than 15 minutes. Analysts, such as Michaël van de Poppe, believe bearish sentiment isn’t warranted right now, as an upward structure that has been in force since March 12 remains intact. Meanwhile, Keith Wareing believes these constant tests of $10,000 are becoming all too predictable — and thinks an eventual breakout could be much higher, catching everyone off guard. He wrote: “The bullish scenario of extending towards the first key resistance of $10,500 looks likely in the short term. Finally breaking out from this level would put $12,000 firmly within reach before experiencing heavy overhead resistance at $13,900.”

Bloomberg: “Bitcoin will approach record high of $20,000 this year”

June’s crypto outlook from Bloomberg was great news for Bitcoin — but less so for Ether. According to its analysts, “something needs to go really wrong for BTC to not appreciate.” At present, the world’s biggest cryptocurrency is mirroring the 2016 run to its all-time high — and if history were to repeat itself, Bloomberg says a return to $20,000 could happen this year. The report even suggests $28,000 may be possible, writing: “Last year, the high was about $14,000, which would translate into almost double in 2020 if rotating within the recent band.” Bloomberg also warned that Ether’s time as the second biggest crypto by market cap might soon be coming to an end. According to its analysis, it’s only a “matter of time” before the Tether stablecoin takes the No. 2 spot. One withering line read: “We see little upside in the ETH price absent a rising tide from Bitcoin.”

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Coinbase repeats pattern of shutting down when Bitcoin gets volatile

“Temporarily unavailable” is a phrase that’s become all too familiar for users of Coinbase. The exchange has gone offline four times in the last three months during major BTC price moves — and those who rely on the service are furious. Some are even claiming that the outages may be deliberate, with one Twitter user speculating that Coinbase has a built-in algorithm to automatically shut it down anytime there is a BTC price movement over $500. Crypto Capital Venture’s Dan Gambardello asked: “How does an exchange with an $8 billion valuation crash every time Bitcoin pumps 5%?” There’s not been much in the way of an official statement from Coinbase’s CEO, Brian Armstrong. Does the exchange realize that its reputation is taking a beating, and will it do anything to salvage it?

$1.4 billion in crypto stolen in first five months of 2020, CipherTrace says

CipherTrace says 2020 is on track to become a record-breaking year for cryptocurrency-related thefts, hacks and fraud. From January to May, the value of ill-gotten funds siphoned through cryptocurrency crimes has reached almost $1.4 billion. It’s possible that the amount lost to bad actors will outstrip the $4.5 billion recorded in 2019. As you’d expect, criminals have been capitalizing on the coronavirus crisis in recent months — rolling out a range of new crypto-related phishing campaigns, ransomware and darknet marketplace fraud. And in case you were wondering if these scammers have any scruples, it appears not: Evidence suggests they have mimicked the World Health Organization and the Red Cross in an attempt to achieve credibility.

Revolut confirms firing 62 employees in wake of coronavirus

The U.K.-based crypto trading platform Revolut has confirmed that it has dismissed dozens of people — blaming the cuts on the impact of the coronavirus. It followed a rather grim story by Wired, in which some workers claimed they were given a choice: be fired because of poor performance, or sign terms saying they departed of their own accord and receive a slight payout. “Some of the employees allegedly pressured to leave have been left stranded in a foreign country without a job or health insurance in the middle of a pandemic,” Emiliano Mellino’s report revealed. In response, Revolut said it strives to create a positive culture for its workforce — adding that it tries to make it as “painless as possible” for employees to leave its business.

Winners and Losers

At the end of the week, Bitcoin is at $9,496.41, Ether at $238.09 and XRP at $0.20. The total market cap is at $270,084,847,325.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Xensor, Loopring and Divi. The top three altcoin losers of the week are Matic Network, Electroneum and Ren.

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For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

Most Memorable Quotations

“Absent an unlikely reversal in predominant crypto trends, it should be a matter of time until Tether passes Ethereum to take the No. 2 spot in total assets behind Bitcoin.”

Bloomberg

“We see little upside in the ETH price absent a rising tide from Bitcoin. The pre-eminent crypto is breaking away from the pack in terms of adoption and is supported by almost-ideal macroeconomic conditions for stores-of-value amid quantitative easing.”

Bloomberg

“Alert Issued: We have received reports that billions of XBG were minted despite having a max supply of 21M.”

CoinMarketCap

Prediction of the Week

Could Bitcoin trading volume really increase 100x in four years?

Coin Metrics has predicted that Bitcoin’s daily trading volumes could eclipse the U.S. equity market in a few short years. At present, BTC has a daily spot market volume of $4.1 billion in USD markets — a stark contrast to the $446 billion value of the U.S. equity market. It seems like an exceedingly tall order, but Coin Metrics believes this is achievable by the middle of the decade. “If historical growth rates can be maintained, however, Bitcoin’s current daily volume from spot markets of $4.3 billion would need fewer than four years of growth to exceed daily volume of all U.S. equities,” its report said. “Fewer than five years of growth are needed to exceed daily volume of all U.S. bonds.”

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FUD of the Week

Crypto ransom amounts skyrocketed 200% in 2019

The amount of money demanded by ransomware attackers rose 200% in 2019, according to a new report by Crypsis Group. According to the digital forensic firms, victims are now being told to pay a median of $115,123 in order to unlock access to their information. It seems cybercriminals are now becoming increasingly selective over how they target and focus on victims who would be capable of paying “exorbitant” ransoms. Their tactics are also evolving — allowing them to sidestep the defense strategies often adopted by businesses and consumers. Just this week, it was revealed that three U.S.-based universities have been struck by the NetWalker ransomware group. Meanwhile, new data suggested that Singapore suffered a 300% rise in cryptojacking attacks in the first quarter of 2020.

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BitGrin minted billions of tokens despite 21 million supply cap, CoinMarketCap warns

The BitGrin network appears to have minted billions of XBG tokens — despite a declared maximum supply of 21 million. CoinMarketCap has added a warning to the page it maintains on BitGrin and alerted users to the anomaly on Twitter. BitGrin’s lead developer, Pharazen, told Cointelegraph that exactly 5 billion XBG were issued as a reward for a single block on the blockchain, causing the total supply of the cryptocurrency to reach 5,021,000,000 XBG. Although he claims he rendered the coins inaccessible by transferring them to an address that he himself cannot access, he admitted this cannot be proved.

Home seller sues buyer over payment in “fool’s gold” token

A California-based psychologist is suing a buyer who attempted to pay for 30% of her property’s value in the form of a “worthless” crypto asset called Troptions.gold. Mary Shea says the dispute has left her unable to sell the home because Mike Cherwenka’s company still claims an interest in it. Cherwenka and his firm, Best Buy Homes, are accused of violating securities and state racketeering laws by misleading her about the nature of the Troption digital currency. According to her complaint, “confusing and false statements” were entered into the real estate contract. “Every day that Best Buy wrongfully claims an interest in her property, Shea cannot find a buyer who will pay legal tender,” the suit says.

Best Cointelegraph Features

Decentralization: Preserving personal privacy while fighting COVID-19

Decentralized technologies can help to avoid jeopardizing citizens’ private data in the name of public health during the global pandemics, writes Muneeb Ali.

Crypto crime on the rise — good odds of 2020 becoming a record-breaker

Experts believe that a more holistic crypto ecosystem, especially one that is more AML-centric, is needed to help prevent the spread of crypto scams in 2020. Shiraz Jagati has more.

Blockchain to disrupt music industry and make it change tune

António Madeira explores how blockchain technology is tipping the scales of the music industry, shifting the power from intermediaries back to artists.

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Government

Survey Shows Declining Concerns Among Americans About COVID-19

Survey Shows Declining Concerns Among Americans About COVID-19

A new survey reveals that only 20% of Americans view covid-19 as "a major threat"…

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Survey Shows Declining Concerns Among Americans About COVID-19

A new survey reveals that only 20% of Americans view covid-19 as "a major threat" to the health of the US population - a sharp decline from a high of 67% in July 2020.

(SARMDY/Shutterstock)

What's more, the Pew Research Center survey conducted from Feb. 7 to Feb. 11 showed that just 10% of Americans are concerned that they will  catch the disease and require hospitalization.

"This data represents a low ebb of public concern about the virus that reached its height in the summer and fall of 2020, when as many as two-thirds of Americans viewed COVID-19 as a major threat to public health," reads the report, which was published March 7.

According to the survey, half of the participants understand the significance of researchers and healthcare providers in understanding and treating long COVID - however 27% of participants consider this issue less important, while 22% of Americans are unaware of long COVID.

What's more, while Democrats were far more worried than Republicans in the past, that gap has narrowed significantly.

"In the pandemic’s first year, Democrats were routinely about 40 points more likely than Republicans to view the coronavirus as a major threat to the health of the U.S. population. This gap has waned as overall levels of concern have fallen," reads the report.

More via the Epoch Times;

The survey found that three in ten Democrats under 50 have received an updated COVID-19 vaccine, compared with 66 percent of Democrats ages 65 and older.

Moreover, 66 percent of Democrats ages 65 and older have received the updated COVID-19 vaccine, while only 24 percent of Republicans ages 65 and older have done so.

“This 42-point partisan gap is much wider now than at other points since the start of the outbreak. For instance, in August 2021, 93 percent of older Democrats and 78 percent of older Republicans said they had received all the shots needed to be fully vaccinated (a 15-point gap),” it noted.

COVID-19 No Longer an Emergency

The U.S. Centers for Disease Control and Prevention (CDC) recently issued its updated recommendations for the virus, which no longer require people to stay home for five days after testing positive for COVID-19.

The updated guidance recommends that people who contracted a respiratory virus stay home, and they can resume normal activities when their symptoms improve overall and their fever subsides for 24 hours without medication.

“We still must use the commonsense solutions we know work to protect ourselves and others from serious illness from respiratory viruses, this includes vaccination, treatment, and staying home when we get sick,” CDC director Dr. Mandy Cohen said in a statement.

The CDC said that while the virus remains a threat, it is now less likely to cause severe illness because of widespread immunity and improved tools to prevent and treat the disease.

Importantly, states and countries that have already adjusted recommended isolation times have not seen increased hospitalizations or deaths related to COVID-19,” it stated.

The federal government suspended its free at-home COVID-19 test program on March 8, according to a website set up by the government, following a decrease in COVID-19-related hospitalizations.

According to the CDC, hospitalization rates for COVID-19 and influenza diseases remain “elevated” but are decreasing in some parts of the United States.

Tyler Durden Sun, 03/10/2024 - 22:45

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International

Rand Paul Teases Senate GOP Leader Run – Musk Says “I Would Support”

Rand Paul Teases Senate GOP Leader Run – Musk Says "I Would Support"

Republican Kentucky Senator Rand Paul on Friday hinted that he may jump…

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Rand Paul Teases Senate GOP Leader Run - Musk Says "I Would Support"

Republican Kentucky Senator Rand Paul on Friday hinted that he may jump into the race to become the next Senate GOP leader, and Elon Musk was quick to support the idea. Republicans must find a successor for periodically malfunctioning Mitch McConnell, who recently announced he'll step down in November, though intending to keep his Senate seat until his term ends in January 2027, when he'd be within weeks of turning 86. 

So far, the announced field consists of two quintessential establishment types: John Cornyn of Texas and John Thune of South Dakota. While John Barrasso's name had been thrown around as one of "The Three Johns" considered top contenders, the Wyoming senator on Tuesday said he'll instead seek the number two slot as party whip. 

Paul used X to tease his potential bid for the position which -- if the GOP takes back the upper chamber in November -- could graduate from Minority Leader to Majority Leader. He started by telling his 5.1 million followers he'd had lots of people asking him about his interest in running...

...then followed up with a poll in which he predictably annihilated Cornyn and Thune, taking a 96% share as of Friday night, with the other two below 2% each. 

Elon Musk was quick to back the idea of Paul as GOP leader, while daring Cornyn and Thune to follow Paul's lead by throwing their names out for consideration by the Twitter-verse X-verse. 

Paul has been a stalwart opponent of security-state mass surveillance, foreign interventionism -- to include shoveling billions of dollars into the proxy war in Ukraine -- and out-of-control spending in general. He demonstrated the latter passion on the Senate floor this week as he ridiculed the latest kick-the-can spending package:   

In February, Paul used Senate rules to force his colleagues into a grueling Super Bowl weekend of votes, as he worked to derail a $95 billion foreign aid bill. "I think we should stay here as long as it takes,” said Paul. “If it takes a week or a month, I’ll force them to stay here to discuss why they think the border of Ukraine is more important than the US border.”

Don't expect a Majority Leader Paul to ditch the filibuster -- he's been a hardy user of the legislative delay tactic. In 2013, he spoke for 13 hours to fight the nomination of John Brennan as CIA director. In 2015, he orated for 10-and-a-half-hours to oppose extension of the Patriot Act

Rand Paul amid his 10 1/2 hour filibuster in 2015

Among the general public, Paul is probably best known as Capitol Hill's chief tormentor of Dr. Anthony Fauci, who was director of the National Institute of Allergy and Infectious Disease during the Covid-19 pandemic. Paul says the evidence indicates the virus emerged from China's Wuhan Institute of Virology. He's accused Fauci and other members of the US government public health apparatus of evading questions about their funding of the Chinese lab's "gain of function" research, which takes natural viruses and morphs them into something more dangerous. Paul has pointedly said that Fauci committed perjury in congressional hearings and that he belongs in jail "without question."   

Musk is neither the only nor the first noteworthy figure to back Paul for party leader. Just hours after McConnell announced his upcoming step-down from leadership, independent 2024 presidential candidate Robert F. Kennedy, Jr voiced his support: 

In a testament to the extent to which the establishment recoils at the libertarian-minded Paul, mainstream media outlets -- which have been quick to report on other developments in the majority leader race -- pretended not to notice that Paul had signaled his interest in the job. More than 24 hours after Paul's test-the-waters tweet-fest began, not a single major outlet had brought it to the attention of their audience. 

That may be his strongest endorsement yet. 

Tyler Durden Sun, 03/10/2024 - 20:25

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Government

The Great Replacement Loophole: Illegal Immigrants Score 5-Year Work Benefit While “Waiting” For Deporation, Asylum

The Great Replacement Loophole: Illegal Immigrants Score 5-Year Work Benefit While "Waiting" For Deporation, Asylum

Over the past several…

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The Great Replacement Loophole: Illegal Immigrants Score 5-Year Work Benefit While "Waiting" For Deporation, Asylum

Over the past several months we've pointed out that there has  been zero job creation for native-born workers since the summer of 2018...

... and that since Joe Biden was sworn into office, most of the post-pandemic job gains the administration continuously brags about have gone foreign-born (read immigrants, mostly illegal ones) workers.

And while the left might find this data almost as verboten as FBI crime statistics - as it directly supports the so-called "great replacement theory" we're not supposed to discuss - it also coincides with record numbers of illegal crossings into the United States under Biden.

In short, the Biden administration opened the floodgates, 10 million illegal immigrants poured into the country, and most of the post-pandemic "jobs recovery" went to foreign-born workers, of which illegal immigrants represent the largest chunk.

Asylum seekers from Venezuela await work permits on June 28, 2023 (via the Chicago Tribune)

'But Tyler, illegal immigrants can't possibly work in the United States whilst awaiting their asylum hearings,' one might hear from the peanut gallery. On the contrary: ever since Biden reversed a key aspect of Trump's labor policies, all illegal immigrants - even those awaiting deportation proceedings - have been given carte blanche to work while awaiting said proceedings for up to five years...

... something which even Elon Musk was shocked to learn.

Which leads us to another question: recall that the primary concern for the Biden admin for much of 2022 and 2023 was soaring prices, i.e., relentless inflation in general, and rising wages in particular, which in turn prompted even Goldman to admit two years ago that the diabolical wage-price spiral had been unleashed in the US (diabolical, because nothing absent a major economic shock, read recession or depression, can short-circuit it once it is in place).

Well, there is one other thing that can break the wage-price spiral loop: a flood of ultra-cheap illegal immigrant workers. But don't take our word for it: here is Fed Chair Jerome Powell himself during his February 60 Minutes interview:

PELLEY: Why was immigration important?

POWELL: Because, you know, immigrants come in, and they tend to work at a rate that is at or above that for non-immigrants. Immigrants who come to the country tend to be in the workforce at a slightly higher level than native Americans do. But that's largely because of the age difference. They tend to skew younger.

PELLEY: Why is immigration so important to the economy?

POWELL: Well, first of all, immigration policy is not the Fed's job. The immigration policy of the United States is really important and really much under discussion right now, and that's none of our business. We don't set immigration policy. We don't comment on it.

I will say, over time, though, the U.S. economy has benefited from immigration. And, frankly, just in the last, year a big part of the story of the labor market coming back into better balance is immigration returning to levels that were more typical of the pre-pandemic era.

PELLEY: The country needed the workers.

POWELL: It did. And so, that's what's been happening.

Translation: Immigrants work hard, and Americans are lazy. But much more importantly, since illegal immigrants will work for any pay, and since Biden's Department of Homeland Security, via its Citizenship and Immigration Services Agency, has made it so illegal immigrants can work in the US perfectly legally for up to 5 years (if not more), one can argue that the flood of illegals through the southern border has been the primary reason why inflation - or rather mostly wage inflation, that all too critical component of the wage-price spiral  - has moderated in in the past year, when the US labor market suddenly found itself flooded with millions of perfectly eligible workers, who just also happen to be illegal immigrants and thus have zero wage bargaining options.

None of this is to suggest that the relentless flood of immigrants into the US is not also driven by voting and census concerns - something Elon Musk has been pounding the table on in recent weeks, and has gone so far to call it "the biggest corruption of American democracy in the 21st century", but in retrospect, one can also argue that the only modest success the Biden admin has had in the past year - namely bringing inflation down from a torrid 9% annual rate to "only" 3% - has also been due to the millions of illegals he's imported into the country.

We would be remiss if we didn't also note that this so often carries catastrophic short-term consequences for the social fabric of the country (the Laken Riley fiasco being only the latest example), not to mention the far more dire long-term consequences for the future of the US - chief among them the trillions of dollars in debt the US will need to incur to pay for all those new illegal immigrants Democrat voters and low-paid workers. This is on top of the labor revolution that will kick in once AI leads to mass layoffs among high-paying, white-collar jobs, after which all those newly laid off native-born workers hoping to trade down to lower paying (if available) jobs will discover that hardened criminals from Honduras or Guatemala have already taken them, all thanks to Joe Biden.

Tyler Durden Sun, 03/10/2024 - 19:15

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