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Bitfinex Alpha | BTC markets on cusp of ongoing explosion while Fed deftly balances policy decisions
The U.S. economy has defied widely held forecasts of a recession and has shown resilience in withstanding supply chain pressures from pandemic lockdowns, global geopolitical conflicts, labor shortages and sharp interest rate hikes. However, that resilience now faces another test as the banking crisis threatens the stability of the global financial system.
With the collapse of Silicon Valley Bank on March 10, recent stress in the market has exposed holes in existing commercial banking policies in the United States. To prevent a potential financial crisis, the Federal Reserve quickly rolled out a lending program that boosted bank loans on its balance sheet by about $297 billion, providing a lifeline for large banks and financial institutions.
Unfortunately, concerns about the health of the banking system have now spread from the US to Europe, leading to a sudden loss of confidence in Credit Suisse, a systemically important global financial institution. Credit Suisse secured $54 billion in liquidity to protect against its possible collapse. However, declining trust in the banking system remains an ongoing issue and the bank has agreed to be bought by its larger rival UBS, with the backing of the Swiss National Bank.
That complicates the Fed's already difficult job of gradually slowing the economy to keep inflation under control. Recent data from the U.S. Bureau of Labor Statistics showed that while headline inflation moderated year-over-year, prices continued to rise in February, especially in the services sector.
High prices also continue to worry U.S. consumers, as reflected in the University of Michigan's consumer sentiment index. The index remains well below pre-pandemic levels and is expected to deteriorate further in the next report after accounting for the impact of the banking crisis.
Despite these concerns, crypto assets, especially bitcoin, have surged in price on the back of central bank measures to restore financial stability. The price of bitcoin hit a new high for the year on March 19, driven by an influx of spot purchases. Bitcoin non-zero balance wallets have soared to nearly 45 million, and the exponential moving average of new addresses has also continued to trend upward.
Funding rates were also little changed in the bitcoin perpetual futures market, suggesting derivatives volumes remained normal during the price rally. This further supports our thesis that spot buying across wallet sizes is supporting market moves.
Ethereum (ETH) supply is also decreasing at an increasing rate. If the demand for ether continues to grow, this will further increase ethereum gas fees and eventually further accelerate its deflationary pace — a bullish scenario for ethereum investors.
In other news, the US Department of Justice (DOJ) also announced that it is investigating a potential bailout plan for two prominent trading firms, Jump Trading and Jane Street, which decided not to execute for the collapsed TerraUSD (UST). The U.S. Department of Justice is also appealing a bankruptcy court judge's decision to allow Binance.US to acquire the assets of cryptocurrency lender Voyager Digital. Anchorage Digital has laid off 20% of its workforce in response to an uncertain regulatory environment in the US. UBS agreed to buy Credit Suisse for more than $2 billion to stem the spread of the banking crisis.
https://blog.bitfinex.com/bitfinex-alpha/bitfinex-alpha-btc-on-the-cusp-of-a-sustained-market-break-out-while-fed-delicately-balances-policy-decisions/
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Bitfinex Will List Arbitrum's Native Token $ARB
Bitfinex has announced that it will be one of the first exchanges to list Arbitrum's new governance token, ARB. Arbitrum is the industry-leading Ethereum Layer 2 scaling solution.
Launched in 2021 by Offchain Labs, Arbitrum is a Layer 2 blockchain designed to facilitate more transactions, prevent fraud and scams, and reduce transaction costs. Arbitrum achieves this by utilizing the technique of optimistic rollup, a data compression algorithm that combines multiple computations into one. Projects on the Arbitrum blockchain include Radiant, a decentralized finance (DeFi) protocol focused on allowing its customers to deposit and borrow seamlessly across multiple blockchains; and GMX, a decentralized exchange focused on perpetual contracts. chemical exchange.
The release of ARB tokens marks the official transformation of Arbitrum into a decentralized autonomous organization (DAO). This means that holders of ARB governance tokens will have the ability to vote on key decisions governing the Arbitrum Nova and One networks, which enables users to transact on Ethereum at higher speeds and with lower fees.
Offchain Labs announced the ARB token following the high-profile acquisition of Prysmatic Labs. As one of the core development teams behind last year's Ethereum Merge, Prysmatic Labs is considered a key part of expanding the Arbitrum ecosystem in the future.
https://blog.bitfinex.com/media-releases/bitfinex-to-list-arb-arbitrums-new-native-token/
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Bitfinex CTO Paolo Ardoino Says El Salvador Bitcoin Bond Will Launch Between June and September
https://twitter.com/BitcoinMagazine/status/1638575680534323202
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Bitfinex to List The Open Network's Native Token Toncoin (TON)
Bitfinex announced that it will list Toncoin (TON), the native token of The Open Network. The Open Network's goal is to unite different blockchains and the Web2 Internet into one open network.
The TON ecosystem includes decentralized exchanges and staking tools, as well as domain names and multi-purpose wallets. It is designed to enable billions of transactions that are fast, cheap and energy-efficient.
TON can be used to participate in network governance to pay transaction processing fees, facilitate cross-chain transactions, and serve as the native currency for services provided by applications in the network ecosystem. TON can also be purchased and transferred on Telegram, allowing users to send and receive TON through peer-to-peer transactions. The total supply of TON is about 5.08 billion and the market cap is about $3.2 billion.
“The Open Network is one of the most exciting blockchains in the Web3 space today. The fact that it was originally founded by the creators of Telegram and then inherited and developed by members of the community is impressive and very much in line with our legacy With a vision of community-led innovation, we are excited to list their native token, TON, to Bitfinex's growing customer base."
https://blog.bitfinex.com/media-releases/bitfinex-to-list-toncoin-ton-native-token-of-the-open-network-a-chain-designed-to-power-crypto-mass-adoption/
