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South Korean Shinhan Bank completes stablecoin remittance pilot with Asian partners

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The bank used the Hedera network to settle payments in South Korean, Thai and Taiwanese currencies in real time in its second stablecoin pilot project.

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Coin Market

BlackRock flags quantum computing as risk for Bitcoin ETFs

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Emerging technologies, including quantum computing, could potentially render the cryptography securing Bitcoin and other blockchain networks ineffective, asset manager BlackRock said in a regulatory filing. 

On May 9, BlackRock updated the registration statement for its iShares Bitcoin ETF (IBIT). The revised version addressed potential risks to the integrity of the Bitcoin network posed by quantum computing, the filing shows.

“[I]f quantum computing technology is able to advance […] it could potentially undermine the viability of many of the cryptographic algorithms used across the world’s information technology infrastructure, including the cryptographic algorithms used for digital assets like bitcoin,” BlackRock said.

It is the first time the asset manager has explicitly flagged this risk in its IBIT disclosures. The IBIT ETF is the largest spot Bitcoin (BTC) ETF, with approximately $64 billion in net assets, according to its website. 

Quantum computing is an emergent field that seeks to use the principles of quantum mechanics to greatly enhance computers’ processing capabilities. 

Source: James Seyffart/Bloomberg Intelligence

Related: Quantum computing will bring lost Bitcoin ‘back in circulation’ — Tether CEO

Record-breaking inflows

James Seyffart, an analyst for Bloomberg Intelligence, cautioned that risk disclosures such as IBIT’s are required to highlight every possible risk to an asset, even those that are extremely unlikely. 

“They are going to highlight any potential thing that can go wrong with any product they list or underlying asset that’s being invested in,” Seyffart said in a May 9 X post. “It’s completely standard. And honestly [it] makes complete sense.”

Since launching in January, Bitcoin ETFs have collectively attracted more than $41 billion in net inflows, according to data from Farside Investors. 

Bitcoin ETF inflows reached all-time highs on May 8. Source: Eric Balchunas/Bloomberg Intelligence

On May 8, Bitcoin ETF net inflows surpassed all-time highs of around $40 billion, according to Bloomberg Intelligence. 

“Lifetime net flows is #1 most imp metric to watch IMO, very hard to grow, pure truth, no bs,” Bloomberg Intelligence analyst Eric Balchunas said in a May 9 X post. “Impressive, they were able to make it to a new high water mark so soon after the world was supposed to end.”

In February, Tether CEO Paolo Ardoino predicted that quantum computing would eventually enable hackers to break into inactive Bitcoin wallets and recover the dormant coins. 

“Any Bitcoin in lost wallets, including Satoshi (if not alive), will be hacked and put back in circulation,” Ardoino said in a Feb. 8 X post.

Magazine: Adam Back says Bitcoin price cycle ’10x bigger’ but will still decisively break above $100K

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Bitcoin price sells off after Trump’s US-China tariff deal — Here is why

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Key takeaways:

Bitcoin lags as investors shift toward stocks after the US and China strike a deal that could end the current trade war.

Macroeconomic conditions are swinging away from gold investing and back to stocks. 

Bitcoin (BTC) reached its highest price in over three months at $105,720 on May 12, but was unable to maintain its bullish momentum. Interestingly, the drop to $102,000 came after a temporary easing in the US-China tariff conflict. This has left traders puzzled as to why Bitcoin reacted negatively to what seemed like positive developments.

The 90-day truce reduced import tariffs, and US Treasury Secretary Scott Bessent noted that the agreement could be extended, provided there is a genuine effort and constructive dialogue. According to Yahoo Finance, the topics under discussion include “currency manipulation,” “steel price dumping,” and restrictions on semiconductor exports.

Bitcoin/USD (orange) vs. S&P 500 futures (red) and gold (blue). Source: TradingView / Cointelegraph

Part of Bitcoin’s recent lack of momentum can be attributed to its 24% gains over the previous 30 days, during which S&P 500 futures rose 7% and gold remained flat. Investors see little reason for further divergence between Bitcoin and traditional markets, especially since the 30-day correlation with the stock market remains high at 83%. 

Additionally, Bitcoin has now surpassed the market capitalization of both silver and Google, making it the world’s sixth-largest tradable asset.

World’s largest tradable assets, USD. Source: 8marketcap

News that Strategy acquired another 13,390 BTC between May 5 and May 11 has also raised concerns among investors. With BlackRock and Strategy together holding 1.19 million BTC, about 6% of the circulating supply, some traders worry that Michael Saylor’s company is largely responsible for supporting the price.

Critics, such as Peter Schiff, predict that Strategy’s ever-increasing average purchase price could eventually lead to losses and force the company to sell some of its holdings to cover borrowing costs. However, this scenario seems unlikely, as the company has doubled its capital increase limit by $21 billion in stocks and another $21 billion in debt.

Bitcoin stalls as macroeconomic events favor stocks over gold

While traders often focus on Bitcoin-specific events, the most likely reason for the weakness near $105,000 is broader macroeconomic conditions. Although the pause in tariffs directly benefits the stock market, the effect on scarce assets like Bitcoin is somewhat negative. For example, gold fell 3.4% on May 12 as the demand for safe-haven assets declined.

Gold/USD (left) vs. DXY US Dollar Index (right). Source: TradingView / Cointelegraph

Gold has typically shown an inverse correlation with the US Dollar Index (DXY), which climbed to its highest level in 30 days on May 12. The strengthening US dollar signals investor confidence, despite a 0.3% decline in US first-quarter Gross Domestic Product and a 6.1% jump in pending home sales in March compared to the previous month.

Related: Bitcoin short-term ‘technical sell-off’ under $100K possible ahead of May 13 CPI print

The lack of conviction among Bitcoin investors when prices traded near $105,000 is at least partly due to reduced demand for scarce assets, as investors view the stock market as a more immediate and direct beneficiary of the US-China trade deal. Lower import duties suggest higher revenues and potentially improved profit margins for companies.

Given the impressive $2 billion in inflows into US spot Bitcoin exchange-traded funds (ETFs) between May 1 and May 9, the likelihood of a price drop below $100,000 remains low. The steady demand for Bitcoin following a 24% monthly gain points to institutional adoption rather than retail-driven FOMO, which is a very positive sign for the price.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Bitcoin all-time high cues come as US-China deal sends DXY to 1-month high

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Key points:

Bitcoin seeks consolidation after rapid gains as stocks and the US dollar surge on US-China trade deal news.

Nearby order book liquidity forms potential targets for traders, which now include $102,000.

A classic moving average retest suggests that a new all-time high should result.

Bitcoin (BTC) stuck to $104,000 at the May 12 Wall Street open as markets shifted on US-China trade deal news.

BTC/USD 1-hour chart. Source: Cointelegraph/TradingView

Bitcoin surfs US-China trade deal reactions

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD consolidating after hitting its highest levels since late January.

The US and China agreed to slash reciprocal trade tariffs on the day, causing the S&P 500 and Nasdaq Composite Index to gain around 3%.

US dollar strength also benefited as a result, with the US dollar index (DXY) hitting one-month highs.

US dollar index (DXY) 1-day chart. Source: Cointelegraph/TradingView

“The last time US tariffs on China were this high, the S&P 500 was ~200 points lower, 4 Fed rate cuts were expected in 2025, and Wall Street was calling for a recession,” trading resource The Kobeissi Letter wrote in part of ongoing analysis on X. 

“Sentiment is everything.”US tariffs on China. Source: The Kobeissi Letter/X

Bitcoin thus adopted the middle ground between major assets on the day as gold dropped precipitously to $3,208 per ounce, nearing month-to-date lows.

“BTC Swept most nearby liquidity above after chopping around the $103K-$105K area for a few days,” popular trader Daan Crypto Trades told X followers alongside a chart of exchange order book liquidity from monitoring resource CoinGlass. 

“Below keep an eye on the ~$102K region as that’s a pretty dense area in terms of liquidation clusters. Could be a good level for some action. Depending on the reaction there you can reassess.”BTC liquidation heatmap. Source: CoinGlass

CoinGlass data showed increasing bids around the $103,000 mark after the Wall Street open.

New BTC price record “in the making”

Continuing, fellow trader CrypNuevo was among those doubling down on a longer-term bull thesis for BTC price action.

Related: Is Bitcoin about to go parabolic? BTC price targets include $160K next

BTC/USD, he noted, had conducted a successful retest of the 50-week exponential moving average (EMA).

Currently at $80,300, the 50-week EMA has functioned as a springboard for new all-time highs in recent years.

“We got the 1W50EMA retest and, consequently, the next leg up,” CrypNuevo explained in an X thread on May 11. 

“Every previous time that we saw this structure, we made a new high so the trend signals a new ATH in the making.”BTC/USDT 1-week chart with 50 EMA. Source: CrypNuevo/X

Earlier, Cointelegraph reported on a classic bull market breakout signal on weekly timeframes in the form of a cross on the moving average convergence/divergence (MACD) indicator.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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