Autor Cointelegraph By Brian Newar

Large institutions sold $5.5B in BTC since May — and we're still here

Large institutions sold $5.5B in BTC since May — and we're still here

Uverejnil používateľ | júl 22, 2022 |

Since May 10, as much as 236,237 Bitcoin (worth $5.452 billion) has been sold by “large institutions” — mostly as a result of forced selling. A Twitter thread from Arcane Research analyst Vetle Lunde details how and when many institutional Bitcoin holders began selling their stacks. Lunde stated that “it all started with Do Kwon.” The Luna Foundation Guard (LFG), which controlled funds for the Terra project, dumped 80,081 BTC in a failed effort to protect the peg of its native Terra USD (UST) stablecoin in May.Terra’s collapse appears to have made some Bitcoin (BTC) miners face sell pressure. Lunde estimates that miners sold 19,056 coins between May and June. In some cases, miners were selling more than their monthly production, likely drawing from reserves.The Luna Foundation Guard (LFG), which controlled funds for the Terra project, dumped 80,081 BTC in a failed effort to protect the peg of its native Terra USD (UST) stablecoin in May.Terra’s collapse appears to have put pressure on some Bitcoin miners to sell. Lunde estimates that miners sold 19,056 coins between May and June. In some cases, miners were selling more than their monthly production, likely drawing from reserves. Lunde noted that as miner selling peaked, Elon Musk’s Tesla also hit the red button and sold 29,060 BTC by the end of Q2. At the same time, the Three Arrows Capital (3AC) crypto investment firm was over-leveraged and owed lenders 18,193 BTC and coins equivalent to 22,054 BTC. Lunde also added that a massive 24,510 BTC redemption took place at the Canadian Purpose Bitcoin exchange-traded fund (ETF) in late June, “creating further fire sale pressure in the market.” That redemption accounted for 51% of that ETF’s holdings.BTC market growthDespite the crypto markets seeing tremendous sell pressure from institutions in recent months, the Bitcoin market remains remarkably resilient. Trading volumes have also remained higher through the 2022 market downturn compared to the peak of the 2017 bull market. On December 17, 2017, Bitcoin daily trading volume reached a cycle peak of $12 billion, while daily volume in July 2022 has been above $20 billion according to CoinGecko.CEO of Singapore-based market maker Presto Labs Yongjin Kim agreed with Lunde that liquidations from 3AC and others caused the significant price drop in June, but believes the BTC price will return to $30,000 within the next few months. He told Cointelegraph on July 21 that “those liquidations pushed Bitcoin price below the fundamental equilibrium price,” leading him to believe that prices will return “to $30,000 in the next few months.” Related: BTC price battles 200-week moving average after $930M Tesla Bitcoin saleKim added that it will take time for retail investors to regain their confidence in crypto after what they endured over the past few months and that institutional investments will rise again.“I think the retail sentiment is completely broken, so it will take some time before we restore confidence in the market. But there will be some reversal by the end of this year counteracting the liquidations.”Lunde concluded his thread by stating:“I tend to lean in favor of forced selling and contagion-related uncertainty being done for now. We will likely slump, pump, and dump in choppy conditions in the coming period.”

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SEC objects to XRP holders aiding Ripple defense, moves to prohibit lawyer

SEC objects to XRP holders aiding Ripple defense, moves to prohibit lawyer

Uverejnil používateľ | júl 21, 2022 |

The Securities and Exchange Commission (SEC) is attempting to block XRP holders from aiding in Ripple’s defense, and prohibit attorney John E. Deaton from any further participation in proceedings. In its official objection submitted on July 19, the regulator opposed the decision to recognize 1,746 XRP holders as “amici curiae” along with attorney John E. Deaton. Amici (plural: amici curiae) means “friend of the court” — an individual or organization not a party to a legal case but is permitted to assist a court by providing information, expertise, or insights.  In this case, in support of Ripple’s defense. Deaton has 3,252 affidavits signed by the token holders essentially stating that they are victims of the SEC’s attack on Ripple as a result of lost profits.Holders claim in the affidavits that they either did not assume legal responsibility for purchasing XRP, they bought the tokens for utilitarian purposes instead of investment purposes, or they did not buy based on promises made by the company and its representatives.However, in its objection to XRP holders, the commission claimed that they are attempting to operate outside of strictly legal issues. The SEC wrote:“Movants do not propose briefing on legal issues. Instead, they wish to present arguments based on 3,252 affidavits “attesting” to certain facts.”The commission has cited alleged threats by Deaton against former SEC Chairman Jay Clayton as reasoning to dismiss him as amicus. The SEC included a redacted letter dated June 7 to Judge Torres that cites a YouTube video from 2021 in which Deaton stated he “might have to walk over and slap the [profanity] out of former SEC Chair Jay Clayton.”The XRP holders and Deaton as amici are required to submit a public reply to the SEC’s objection by July 25. Ripple is a blockchain company that issues the XRP token. The SEC has alleged in an ongoing court case which started in 2020 that Ripple and its executives Brad Garlinghouse and Christian Larsen sold XRP as unregistered securities.Deaton has claimed that the SEC has been inconsistent with its application of the law against Ripple, Garlinghouse, and Larsen. In a July 19 thread on Twitter, the lawyer explained that if the SEC truly thought XRP was a security, it would have filed an injunction against Ripple and issued a cease and desist order against the two executives and Jed McCaleb from selling their tokens.The SEC claims #XRP itself is a security and anyone who sells it is violating Section 5 of the Securities Act. The SEC claims @Ripple @bgarlinghouse & @chrislarsensf “enriched” themselves at the expense of investors and it is seeking $1.3B in disgorgement from these defendants. https://t.co/9nJ1iNroth— John E Deaton (207K Followers Beware Imposters) (@JohnEDeaton1) July 18, 2022Adding to this argument was General Counsel for Ripple Stuart Alderoty who pointed out on July 19 that no country, including the US so far, has officially categorized XRP as a security. The outcome of this case could determine whether XRP is a security. If the judge rules in favor of the SEC, it could be the precedent the commission needs to pursue legal action against other crypto projects that sold tokens similarly to Ripple.

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Sustainable Bitcoin mining power mix hits 59.5%: BTC Mining Council

Sustainable Bitcoin mining power mix hits 59.5%: BTC Mining Council

Uverejnil používateľ | júl 20, 2022 |

Nearly 60% of the electricity used to power Bitcoin mining machines comes from sustainable sources, according to the latest Q2 2022 report from the Bitcoin Mining Council (BMC).In its Q2 review of the Bitcoin network released on July 19, the BMC found that the global Bitcoin mining industry’s use of sustainable energy is up 6% from Q2 2021 and up 2% from Q1 2022, reaching 59.5% in the latest quarter — adding that it is “one of the most sustainable industries globally.”The council observed the increase in miners’ sustainable energy mix has also coincided with an increase in mining efficiency. Q2 Bitcoin mining hashrate is up 137% year-on-year, while energy usage is only up 63%, demonstrating an efficiency increase of 46% Further details about the energy efficiency of Bitcoin mining were shared in the BMC’s YouTube briefing of its full report on July 19 with MicroStrategy CEO Michael Saylor. Compared to eight years ago, Saylor said miners’ energy efficiency has grown 5,814%In Q2 2022, #Bitcoin mining efficiency surged 46% YoY, and sustainable power mix reached 59.5%, above 50% for the 5th quarter in a row. The network was 137% more secure YoY, only using 63% more energy. It is hard to find an industry more clean & efficient.https://t.co/gqYn8qew9R— Michael Saylor⚡️ (@saylor) July 19, 2022It also found that Bitcoin mining accounted for just 0.09% of the 34.8 billion metric tons (BMt) of carbon emissions estimated to be produced globally and consumed just 0.15% of the global energy supply. Saylor noted in the briefing that Bitcoin’s detractors’ predictions about the network’s energy use have so far not been accurate.“People have been predicting that Bitcoin was going to use up all the energy in the world for quite a while. That’s not happening and it’s not going to happen because of the efficiency dynamics.”Related: Marathon inks new arrangements to achieve 2023 hash rate targetDuring the same briefing, Marathon Digital Holdings CEO Fred Thiel stated that mining efficiency is part of a “virtuous cycle” that will see the industry become “more and more energy efficient.”“The efficiency gains are 100% focused on energy consumption because energy is our key input cost. As energy prices go up, it forces us to become more efficient.”The report outlined how the rising Bitcoin (BTC) price has been driving network energy efficiency, as evidenced by the sharp increase in efficiency over the past eight years. As price increases, ASIC mining device demand increases, which fuels device innovation. More efficient devices are more cost effective and profitable, forcing less profitable ones to drop out of the market, thereby making the entire industry more efficient.Data from the report was derived from members of the BMC, which comprise 50.5% of the world’s Bitcoin mining hash power. U.S. lawmakers have been particularly interested in the state of the Bitcoin mining energy consumption in the country. Last week, six U.S. lawmakers, including Warren sent a letter to the Environmental Protection Agency (EPA) and Energy Department (DOE), asking the agencies to require mining companies to report on their emissions and energy use. 

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Marathon inks new arrangements to achieve 2023 hash rate target

Marathon inks new arrangements to achieve 2023 hash rate target

Uverejnil používateľ | júl 19, 2022 |

Bitcoin miner Marathon Digital Holdings has secured a deal that it says provides electricity to generate enough power to contribute 23.3 exahashes per second (EH/s) to the Bitcoin network.Marathon revealed in a July 18 announcement that data center operator Applied Blockchain would host 254 megawatts of power, with an option to add 70 megawatts from various other providers, including Compute North. Marathon expects this hosting deal will help it achieve its goal of 23.3 EH/s in computer power by 2023.Exahashes per second (EH/s) refers to the amount of hash power a miner contributes to secure the Bitcoin network.$MARA Secures hosting capacity to support all 23.3 EH/s of #Bitcoin mining – 200 MW (9.2 EH/s) w/ @APLDBlockchain – Additional 42 MW w/ @computenorthllc – 12 MW (0.8 EH/s) w/ other providers https://t.co/fXgmN4ppTL— Marathon Digital Holdings (@MarathonDH) July 18, 2022Applied Blockchain will supply 90 megawatts to Marathon’s Texas facility and 110 to 180 megawatts to a North Dakota facility. Combined, they will contribute about 9.2 EH/s.Compute North has obtained the regulatory approval required to supply 42 megawatts of hosting capacity to Marathon at its Granbury, Texas facility. That location will house 26,000 mining devices that will contribute about 3.6 EH/s by the end of 2022, according to Marathon.Marathon also stated that various unnamed providers would provide up to 12 megawatts of hosting capacity worth about 0.8 EH/s, bringing the total new capacity to 324 megawatts.Marathon CEO Fred Thiel stated in the announcement that the deals should provide adequate hosting capacity to help his company contribute 23.3 EH/s by 2023. He expects hosting to begin in August and continue into the following year.“The first miners to be hosted under these new arrangements are scheduled to be installed in August, with installations ramping at other locations in the fourth quarter of this year and continuing into 2023.”Delays with Compute North’s regulatory compliance may have partly contributed to Marathon’s disappointing 43.8% drop in productivity in Q2. Hosting was expected to begin in June, but the firm did not obtain the necessary permissions.Related: Could Bitcoin miners’ troubles trigger a ‘death spiral’ for BTC price?Marathon’s reduced productivity can also be attributed partly to its Hardin, Montana, mining facility, which was shut down following a severe storm on June 11. That facility represented 75% of the company’s mining power and still appears to be down as the MARA mining pool has not mined any blocks since the storm.The new power deals come as Democrat U.S. Senator Elizabeth Warren claimed that miners are driving up energy costs for other consumers. She and a coalition of five other lawmakers asked the Environmental Protection Agency (EPA) and the Energy Department (DOE) to share their findings on the energy consumption trends of Bitcoin (BTC) miners last week. 

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Celsius lawyers claim users gave up legal rights to their crypto

Celsius lawyers claim users gave up legal rights to their crypto

Uverejnil používateľ | júl 19, 2022 |

Celsius’s 1.7 million registered users across over 100 countries gave up title to the crypto they deposited into Earn and Borrow accounts, according to the firm’s lawyers.At the first bankruptcy hearing for Celsius on July 18, lawyers from the Kirkland law firm led by Pat Nash detailed how retail users with Earn and Borrow accounts transferred the title of their coins to the firm as per its terms of service (ToS). As a result, Celsius is free to “use, sell, pledge, and rehypothecate those coins” as it wishes.Terms of Service for Celsius accounts.However, a legal question has arisen about whether Custody account holders retain title for their assets. Celsius ToS claims that the firm cannot use coins in Custody accounts without user permission. Still, lawyers questioned whether this holds for crypto that the firm is currently in possession of. In their overview of the case, they asked:“Are the crypto assets in Celsius’ possession property of the estate? Is the answer to this question different for crypto assets held under the Custody vs. the Earn program?”The Custody program was launched in April for non-accredited US investors as some states across the US issued cease and desist orders on Celsius’s Earn program.Celsius paused rewards and withdrawals for all users on June 13 and have since paused margin calls, liquidations, and issuing new loans.Attorney David Silver summed up Celsius’s claim to users’ funds in a July 18 tweet. He wrote that users should “stop thinking of it as *your* crypto” because it technically all belongs to the firm.11) Celsius says that anyone in the EARN program has no crypto that belongs to them (i.e., stop thinking of it as *your* crypto). Celsius is the owner of the crypto assets. Most of the assets in Celsius came in through the EARN program and is part of the estate.— David Silver (SILVER MILLER) (@dcsilver) July 18, 2022According to a tweet from Financial Times reporter Kadhim Shubber, Nash proclaimed that Celsius users would be “interested in riding out this crypto winter” and let Celsius hold funds rather than sell. He added that this strategy would allow users the opportunity to “realize their recovery through an appreciation in the crypto macro environment.”Essentially, Celsius would like to wait for the market to turn around before selling to ensure it can stay afloat, then pay off users with assets that have more value.Nash says Celsius’ recovery plan will involve HODLing”The vast majority of our customers are going to be interested in riding out this crypto winter, remaining long crypto, having the opportunity to realise their recovery through an appreciation in the crypto macro environment”— kadhim (＾ｰ^)ノ (@kadhim) July 18, 2022

The firm also claims that it can sell Bitcoin (BTC) that it mines through its subsidiary mining operation to pay off debts. Celsius CEO Alex Mashinsky affirmed in a bankruptcy filing document that his company planned to generate about 15,000 BTC through 2023, but David Silver was dubious about the claim.Related: CoinFLEX resumes withdrawals, limiting users to 10%Silver appeared in a Twitter Spaces after the hearing concluded. At about the 1:07 mark in the conversation, he stated that Celsius’s claim of being a Bitcoin mining company is disingenuous. “Can you imagine right now that Patrick Nash, basically, and the Kirkland lawyers have now told you that Celsius is simply a Bitcoin mining company? Because that’s all fluff.”

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