Tesla sells $1 billion in Bitcoin, the Ethereum merger is almost complete, and gunmen rob a Russian mining farm. These stories and more this week in crypto.
Rate expectations help Bitcoin recover
The crypto market experienced a sudden surge of relief this week as Bitcoin moved above $24,000 for the first time in over a month. Hopes of a less aggressive than feared rate hike from the Federal Reserve sparked the recovery in both the crypto market and the broader markets.
Tesla collects 75% of its Bitcoin
After its much-publicized purchase of Bitcoin in 2021, Tesla cashed in nearly $1 billion in BTC in the second quarter of 2022. In new investor filings, the company revealed the sale represents 75% of its holdings in Bitcoin. Tesla CEO Elon Musk said they are open to increasing their bitcoin holdings in the future.
The Ethereum merger is almost complete
Ethereum’s long-awaited transition from proof-of-work to proof-of-stake, also known as the “Merger,” could be implemented as early as September 19 of this year. The information was made public when the community manager of the Ethereum Beacon chain shared “a planning timeline”. The expected date sparked excitement from investors and industry players, causing the price of Ethereum to rise significantly.
JPMorgan predicts rebound in retail demand
A report published by investment bank JPMorgan Chase predicts that retail demand will soon return to crypto markets. According to the bank, improved investor sentiment and increased enthusiasm for the Ethereum merger have led to the recovery, following an “intense phase” of deleveraging that now appears to be over.
Ex-Coinbase Manager Accused of Insider Trading
A former Coinbase product manager has been charged by the US Department of Justice with insider trading. He received insider information on coin listings as he had access to messaging groups exclusive to high-ranking Coinbase employees. The manager then sold this information during the hype and made approximately $1.5 million through insider trading of cryptocurrency on the Coinbase exchange.
Eurozone backs digital euro over crypto
Eurozone monetary authority leaders back Europe’s central bank’s digital currency over crypto. According to the post on the ECB’s site, cryptocurrencies cannot guarantee one-to-one convertibility with central bank money. They are not an efficient means of payment, especially if their value is not backed by any asset. And, in the case of stablecoins, they are vulnerable to executions.
UK debates pro-crypto legislation
The UK Treasury has presented its proposed crypto legislation to members of parliament. Under the proposed legislation, existing rules for banking and payment systems will be amended or extended to cover digital assets. The regulation follows a pledge by the UK government to turn the nation into a crypto hub.
Masked Men Mug Moscow Mining Facility
Armed robbers raided a large crypto mining facility near Moscow. Unidentified perpetrators stole dozens of video cards in the latest incident related to the theft of mining hardware, which has recently increased in Russia. Authorities estimate the value of the stolen mining equipment at one million rubles.
That’s what happened this week in crypto, see you next week.
