Daily News | Tether Plans to Invest $500 Million in Bitcoin Mining, 64% of Institutions Will Increase Their Holdings of Crypto Assets, Jupiter Will Start Token Airdrop Next Week

Crypto Daily Digest: Tether plans to invest $500 million in Bitcoin mining, 64% of institutions will increase their holdings of crypto assets in the future

According to Bloomberg, Tether Holdings Ltd. is taking measures to become one of the world’s largest Bitcoin miners. Tether’s upcoming CEO, Paolo Ardoino, stated in an interview that the company plans to invest approximately $500 million in the next six months by building its own mining facilities and investing in other companies.

The investment includes part of a $610 million credit arrangement provided by Tether to the listed Bitcoin mining company Northern Data AG this month, which Tether acquired in September.

On the other hand, the Bitcoin payment application Strike has supported users from 36 countries outside the United States to purchase Bitcoin directly through the Apps, and the service will be promoted to over 65 countries in the future.

Unlike American users who purchase Bitcoin for free, global users need to pay a fee of 3.9% for Bitcoin purchases. Meanwhile, the Send Globally channel is now available for global Strike users, allowing customers from supported countries/regions to redeem fiat, USDT, or Bitcoin into local currency. In addition, Strike has partnered with Biterfill, a crypto payment company, and Strike users can now purchase daily necessities through the Lightning Network.

Recently, Coinbase stated in a blog post that its commissioned survey of 250 institutional investors by Institutional Investors showed that institutional investors are committed to actively investing in cryptocurrencies and are optimistic about the future:

64% of crypto investors currently surveyed expect to increase their allocation within the next three years; Among institutional investors surveyed who did not allocate cryptocurrency, 45% expected to do so within the next three years; 57% of institutional investors surveyed believe that prices will rise in the next 12 months, while only 8% of people in October 2022 hold the same view; Respondents believe that blockchain can replace traditional payment and trade settlement tracks in the future.

Recently, a new report released by blockchain security platform Imunefi found that nearly half of all crypto losses caused by Web3 vulnerabilities in 2022 are due to Web2 security issues such as private key leakage.

The report reviews the crypto vulnerability exploitation events of 2022 and categorizes them into different types of vulnerabilities. The conclusion of its report is that in 2022, the Web3 eco suffered a total loss of $3,948,856,037 in funds (including hacker attacks and suspected fraud incidents), of which 46.48% of the loss was not due to defects in smart contracts, but rather from “infrastructure defects” or issues with the development company’s computer s.

In terms of token airdrops, it is worth noting that the Solana eco trading aggregator Jupiter Exchange has released detailed information on JUP community airdrops. The total number of JUPs is 10 billion, of which 40% will be distributed to the community through four rounds of airdrops. In the first round, 10% of the tokens (1 billion) will be distributed. 955,000 wallets that directly interact with Jupiter before November 2 are eligible for airdrops.

Today’s Main Token Trends

BTC

This week continues with high-level oscillation and consolidation. Short-term support is at the $36,000 level, while overall upward trend support is holding at $33,085. Short-term resistance remains at $37,755. A continuation pattern is forming, and it is advisable to observe the direction. While this week may not show significant trends, larger movements are expected next week.

ETH

After failing to break the $2,135 resistance, Ethereum retraced twice to the $1,951 support. Short-term volume remains bearish, and attention should be on whether a W-bottom structure forms at the support. Conservative long positions are suggested upon breaking $2,135, targeting $2,381. Conservative short positions should wait for a break below $1,951.

ARKM

Short-term positioning continues at $0.4250, with a recent high at $0.6150. The month is seen as positive for further upward movement, targeting $0.65, $0.7425, $0.8900, $1.2529, and $1.8250. A failure to rise again may result in a triple bottom, signaling caution against potential consolidation before an upward movement.

Macro: The US unemployment rate has reached a new high, the market is expected to cut interest rates in June next year

On Thursday, the number of initial claims for unemployment benefits in the United States exceeded expectations last week, increasing to 231000, the highest level in nearly three months. The number of people applying for unemployment benefits has increased to 1.865 million, the highest level in nearly two years.

unemployment data shows a weak labor market, reinforcing the view that the Federal Reserve is unlikely to raise interest rates further.

Impacted by unemployment data, the US dollar index fell in the short term, rebounded near the 104 mark, and ultimately closed close at 104.39. The US Treasury yield has fallen to a weekly low. The 10-year US Treasury yield closed at 4.441%; The two-year US Treasury yield, which is more sensitive to the Federal Reserve’s policy interest rates, closed at 4.85%.

The three major US stock indices fluctuated narrowly, with the Dow closing 0.13% lower, the Nasdaq closing 0.12% higher, and the S&P 500 index closing 0.1% higher. Spot gold rose in a straight line during the trading session, reaching a maximum of 1987.9, followed by a slight decline, and finally closed up 1.06% at $1981.32 per ounce, a new high in two weeks; Spot silver briefly reached the 24th level and ended up 1.27% higher at $23.75 per ounce.

International oil prices have plummeted to their lowest level since July, dragged down by weak US economic data and the expansion of crude oil inventories. WTI crude oil fell nearly 6% at its deepest point and ultimately closed down 4.78% at $72.86 per barrel; Brent crude oil accelerated its decline after falling below the 80 mark, ultimately closing 4.34% lower at $77.44 per barrel.

Federal Reserve Vice Chairman Jefferson, Federal Reserve Governor Cook, and Kugler told a US senator that it is currently unclear how long the Fed’s process of reducing its balance sheet will continue, but they said the process may not end soon.

Cleveland Fed Chairman Maester said, “We need to see more evidence that inflation will reach 2%. It has not been decided whether another interest rate hike is needed. This (current issue) is not about lowering interest rates, but about how long we will maintain a tightening stance, and the (interest rates) may be higher.”

Meanwhile, Federal Reserve Governor Cook stated that the sustained momentum of demand may slow down the rate of inflation decline and remain vigilant about the risk of a sharp decline in economic activity.

In fact, no matter what officials say, the market no longer believes that the Federal Reserve can still raise interest rates. Instead, the market is more concerned about when to cut interest rates next year, because cutting interest rates will boost a new wave of prosperity. Nowadays, it is widely expected that it will be around June next year, which coincides perfectly with the Bitcoin halving cycle. It can be imagined that with the arrival of interest rate cuts next year, the crypto market will ignite again.