Bullish Bitcoin prices continue to stabilize above $11,000 as more institutions make the cryptocurrency their treasury reserve asset in the wake of unprecedented money printing by central banks. This is further fuel to the longstanding notion that Bitcoin will overtake the US dollar as the world’s reserve currency. Banking giant JPMorgan now says the rally should last as prices face only “modest” short-term headwinds. The chickens have come home to roost for BitMEX as the derivatives exchange faces criminal money-laundering charges in the US, the Australian central bank is out of step with the rest of the world on CBDCs, and Spain presses ahead with plans to raise hundreds of millions of Euros in tax from new cryptocurrency transaction reporting rules.
$10bn money manager buys $100m Bitcoin [13 Oct 2020]
The list of major institutions purchasing Bitcoin on their balance sheet continues to grow. The latest addition is the $10 billion asset manager Stone Ridge Holdings Group, which announced that Bitcoin would serve as its primary treasury reserve asset. It follows Jack Dorsey’s Square, which put 1% of its total reserves into the cryptocurrency and mobile app giant Microstrategy, which made another nine-figure Bitcoin buy to take its total BTC reserves to $425m. Read more.
BitMEX bosses step down as US files criminal charges [08 Oct 2020]
Hong Kong’s world-leading cryptocurrency derivatives exchange BitMEX faces criminal charges in the US and its leading execs will step down from their roles, the company confirmed. The US Department of Justice said the company’s three founders had breached the Bank Secrecy Act, as well as making BitMEX “a vehicle” for money laundering and sanctions violations. Read more.
Australia reverses away from CBDC [14 Oct 2020]
The Australian central bank sees “no strong public policy case”for a bank digital currency, top official Tony Richards said this week. It’s the opposite course taken by China, which is accelerating the release of its digital yuan throughout the Asian nation. Read more.
Spain passes 800m tax-raise bill forcing crypto transaction reporting [13 Oct 2020]
In a move that could be replicated across the rest of the European Union, Spain has agreed to a bill to force all of its citizens to report cryptocurrency transactions both inside and outside the country. The measure coud generate up to €800m in new tax receipts for Spain, the state believes. Part of the same bill puts special attention not just on cryptocurrency service companies, but on the fintech sector as a whole to pay its way. Read more.
Bitcoin price rally above $11k should last, say JPMorgan [14 Oct 2020]
The Bitcoin price should retain support above $11,000 per coin, analysts at US banking giant JP Morgan said this week. Using data from Bitcoin futures pricing, strategists calculated an ‘instrinsic’ value for the cryptocurrency by treating it as a commodity and looking at the marginal cost of production. While the Bitcoin price is trending some 13% above this value, the cryptocurrency faces only “modest short-term headwinds”, the JP Morgan research shows. Read more.