Tesla sells $1 Billion in Bitcoin, the Ethereum Merge is almost complete, and armed men rob a Russian mining farm. These stories and more this week in crypto.
Rate Expectations Help Bitcoin Recover
The crypto market saw a sudden relief rally this week, as Bitcoin moved above $24,000 for the first time in over a month. Hopes of a less aggressive rate hike than feared from the Federal Reserve triggered the rally in both crypto and the wider markets.
Tesla Cashes Out 75% of its Bitcoin
After its highly publicized purchase of Bitcoin in 2021, Tesla cashed out almost $1 billion worth of BTC in the second quarter of 2022. In new investor filings, the company revealed the sale that represents 75% of its Bitcoin holdings. Tesla CEO Elon Musk said they are open to increasing their bitcoin holdings in the future.
Ethereum Merge is Almost Complete
Ethereum’s highly anticipated transition from proof-of-work to proof-of-stake, otherwise known as the ‘Merge,’ could be implemented as soon as September 19th of this year. The information was made public when “a planning timeline” was shared by the Ethereum Beacon chain’s community director. The projected date brought excitement from investors and industry players, causing Ethereum’s price to spike significantly.
JPMorgan Predicts Return of Retail Demand
A report released by investment bank JPMorgan Chase predicts that retail demand will return to the crypto markets soon. According to the bank, improved investor sentiment and increased excitement ahead of the Ethereum Merge has sparked the recovery, following an “intense phase” of deleveraging which now appears to be over.
Ex-Coinbase Manager Accused of Insider Trading
A former Coinbase product manager has been accused by the US Department of Justice of insider trading. He received privileged information about coin listings as he had access to exclusive messaging groups for high-ranking Coinbase employees. The manager then sold this information during the hype obtaining approximately $1.5 million through cryptocurrency insider trading on the Coinbase exchange.
Eurozone Backs Digital Euro Over Crypto
Leaders of the eurozone’s monetary authority support Europe’s central bank 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 runs.
UK Debates Pro-Crypto Legislation
The UK Treasury has unveiled its proposed crypto legislation before members of parliament. According to the proposed legislation, existing rules for banking and payment systems will be modified or extended to cover digital assets. The regulation follows a promise from 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. The unidentified perpetrators stole dozens of video cards in the latest incident involving theft of mining hardware, which has been on the rise recently in Russia. Authorities estimate the value of the stolen mining equipment to be around 1 million rubles.
That’s what’s happened this week in crypto, see you next week.