During a recent podcast interview, Michael Saylor explained that Bitcoin being bought and centralized by corporations should not be feared. He also outlined three main reasons driving the need for custodians.
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The Bank of America’s metaverse trains staff on resolving customer disputes or helps them relax by riding a virtual unicorn.
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The price of Bitcoin has bounced upwards as First Republic Bank deposit slump sparks fresh banking crisis fears in the United States.
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Bank of America and Fidelity have increased their MicroStrategy exposure in what appears to be a passive Bitcoin investment.
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Bitcoin has decoupled from stocks and rising ten years after the Cyprus banking crisis coincided with a BTC price boom.
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Despite the ongoing cryptocurrency bear market, investors have been increasingly looking at Bitcoin (BTC) as a safe haven, a new study suggests.The rise in correlation between Bitcoin and gold (XAU) is one of major indicators demonstrating investors’ confidence in BTC amid the ongoing economic downturn, according to digital strategists at the Bank of America.Bitcoin’s correlation with gold — which is commonly viewed as an inflation hedge — has been on the rise this year, hitting its highest yearly levels in early October. The growing correlation trend started on Sept. 5 after remaining close to zero from June 2021 and turning negative in March 2022, BofA strategists Alkesh Shah and Andrew Moss said in the report.“Bitcoin is a fixed-supply asset that may eventually become an inflation hedge,” the strategists wrote. The growth in BTC/XAU correlation is not the only indicator signaling growing investors’ confidence in Bitcoin as a store of value though.Source: Bank of AmericaBitcoin has also been increasingly correlated with major stocks like the S&P 500 (SPX) and Nasdaq 100 (QQQ). The correlation between Bitcoin and both SPX and QQQ reached all-time highs on Sept. 13, the BofA strategists wrote, adding:“A decelerating positive correlation with SPX/QQQ and a rapidly rising correlation with XAU indicate that investors may view Bitcoin as a relative safe haven as macro uncertainty continues and a market bottom remains to be seen.”BofA strategists also mentioned massive Bitcoin outflows from exchanges to personal or self-hosted wallets. According to the study, weekly BTC exchange outflows in early October were the largest since mid-June, marking the third consecutive week of outflows. The strategists emphasized that large and continuous outflows to personal wallets indicate limited near-term sell pressure, stating:“Investors transfer tokens from exchange wallets to their personal wallets when they intend to HODL, indicating a potential decrease in sell pressure.”The BofA strategists mentioned that the report’s methodology included data from major Bitcoin exchanges, including Binance, Coinbase, Coincheck, FTX, Gemini, Kraken and others.Related: Bitcoin profitability for long-term holders declines to 4-year low: Data“The blockchain’s transparency gives us insight into the digital asset ecosystem that’s not available in traditional financial markets,” the analysts stated.The new report comes amid the rising risks of the global economic recession, driving more demand for the inflation hedge. Bitcoin has lost about 70% of its market value amid the massive crypto winter of 2022, triggering more skepticism over its status as an inflation hedge.
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A shareholder’s open letter to Meta CEO Mark Zuckerberg has labeled the tech giant’s investment into the Metaverse as “super-sized and terrifying.”The shareholder has urged the company to scale down its investment in the Metaverse and its related technology arm amid a significant fall in its stock price over the last 18 months. The open letter was published on Oct. 24 and was directed at Zuckerberg and the board of directors. It was authored by Brad Gerstner, CEO and founder of technology investment firm Altimeter Capital, which owns roughly a 0.11% share in Meta, according to Hedge Follow.Gerstner said that Meta’s foray into the Metaverse, while important, should not command as much investment from the company as it currently does. He said the company has announced investments of $10 billion to $15 billion per year into its Metaverse project, including AR/ VR tech and Horizon World, but “may take 10 years to yield results,” explaining: “An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards.”Rather, he has urged the company to focus more on artificial intelligence (AI) and less on the Metaverse, as it “has the potential to drive more economic productivity than the internet itself.”“While most companies will struggle to monetize AI, we believe Meta is incredibly well positioned to leverage AI to make all of its existing products better,” he added.Gestner’s comments come on the same day the Bank of America downgraded Meta from a “buy” to “neutral” valuation, partly due to its Metaverse investments likely to remain an “overhang” on the stock because of the “lack of progress” and “new competition from Apple.”Gerstner added that over the last 18 months, Meta’s stock has fallen 55% compared to an average of 19% for its “big-tech peers,” which he suggests “mirrors the lost confidence in the company, not just the bad mood of the market.”Related: Facebook is on a quest to destroy the Metaverse and Web3Gerstner isn’t the only person to think the future of the Metaverse is a relatively “uncertain” one either. On Jul. 30, Ethereum co-founder Vitalik Buterin said that while “the Metaverse will happen,” corporate attempts such as those by Facebook will “misfire” because “it’s far too early to know what people actually want.”The share price for Meta Platforms Inc (META) has plummeted 60.53% over the last year to $129.72 at the time of writing – a far greater fall in the current bear market than the likes of Apple, Amazon and Google.Meta is set to report its third-quarter 2022 results on Oct. 26.
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There is a small chance the U.S. House of Representatives could pass the bill to regulate stablecoins by year-end, though it’s more likely it will pass in the first quarter of 2023, says U.S. Congressman Warren Davidson. According to a Thursday report from Kitco, Davidson made the remarks at the Annual Fintech Policy Forum on Sept. 22, where he suggested: “There’s an outside chance we find a way to get to consensus on a stablecoin bill this year.”The “stablecoin bill” seemingly refers to draft legislation aimed at “endogenously collateralized stablecoins” which came to light this week — and would place a two-year ban on new algorithmic stablecoins such as TerraUSD Classic (USTC).However, Davidson went on to say that while “there’s a chance we get to yes on stablecoins this year,” it’s something that can be achieved by the first quarter of 2023. “If we don’t, it’s something that I think we can get to with a Republican majority in Q1 next year,” he said. Davidson is widely seen as crypto-friendly and has previously introduced the “Keep Your Coins” bill which aimed to protect self-custodied crypto wallets from U.S. government control.A number of bills aimed at regulating stablecoins have been introduced in the U.S., such as the one that was introduced on Feb. 15 this year by U.S. Rep. Josh Gottheimer.The Director of the Consumer Financial Protection Bureau (CFPB), Rohit Chopra, also reportedly spoke at the event and believes that stablecoins have the potential for widespread adoption, noting: A stablecoin, riding the rails of a dominant payments system or a mobile OS, I think that could create ubiquity very quickly.Chopra added that if stablecoins do see this kind of rapid adoption, they could have a serious impact on global financial stability.Related: 3AC founders reveal ties to Terra founder, blame overconfidence for collapseThe CFPB director also suggested that Washington may be neglecting other areas of fintech development due to its intense focus on crypto in recent months.The forum was attended by financial giants such as Bank of America, Visa and Mastercard and was reportedly aimed at fostering discussion between executives and policymakers as to how they can work together to ensure developing technologies help businesses, consumers and the economy.The current draft bill for stablecoins is being negotiated between House Financial Services Committee Chair Maxine Waters and the committee’s top Republican, Rep. Patrick McHenry.
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