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The magic of musk is fading ✨
Elon Musk, the Tesla billionaire who last year could create and destroy billions of dollars in crypto value with his erratic and fanciful tweets, failed to move the market with his latest inflation-based openings . Musk tweeted that he has no plans to sell his undisclosed personal crypto holdings, which include bitcoins, ethereal and the meme based dogcoin. While the price of dogecoin briefly rose, it quickly fell back. Read the full story at Forbes.
Now read this: Biden’s Executive Order to Fuel a Banking and Bitcoin Boom
Cryptocurrency prices are broadly stable this morning, however, Terra moon load higher, up almost 10%. At the other end of the scale, Ripple’s XRP gave up gains made over the weekend following a positive development for Ripple in its long legal battle with the Securities and Exchange Commission (SEC).
Bitcoin’s big week 🎉
Hit or miss: Bitcoin and cryptocurrencies are primed for two seismic developments this week.
– First, European Union lawmakers will vote on a proposed rule that could force proof-of-work cryptocurrencies such as bitcoin to switch to more energy-friendly consensus mechanisms. The vote takes place this morning after revisions to the text of the bill over the weekend. The block at the last.
– Second, El Salvador is set to launch its $1 billion bitcoin-backed bond, designed to fund the country’s “Bitcoin City” powered by geothermal energy from a nearby volcano and the purchase of even more bitcoins .
What is said: EU vote ‘very undecided’ Coindesk reported Sunday. “An extremely high stakes vote in the EU,” said Jeremy Allaire, founder of Circle Pay and co-creator of stablecoin USDC, via Twitter. “That such a proposal has come this far is extremely concerning and unlikely to stand up to practical reality.” Meanwhile, Reuters reports that Russia’s invasion of Ukraine could derail El Salvador’s plans. “If it fails, a lot of doors close,” said Carlos Acevedo, former president of El Salvador’s central bank. FinancialTimes. “This show is going to define a lot.”
Why is this important: The two key developments this week highlight the growing international divergence over bitcoin and cryptocurrencies, a split that is also reflected in the worlds of finance and technology. While one side wants to embrace cryptography, the other sees it as a dangerous threat to stability.
Now read this: Bitcoin legacy is harder than it looks
NFT Consolidation 🧺
👾 Bored Ape Yacht Club creator Yuga Labs has acquired the rights to two more huge non-fungible token (NFT) collections: CryptoPunks and Meebits, meaning it now controls three of the most valuable NFT collections on the market .
✍️ “This means we now own the trademarks, art copyrights, and other intellectual property rights for both collections, as well as 423 CryptoPunks and 1711 Meebits,” Yuga Labs wrote in a blog post announcing the purchase of Larva Labs and adding, “The first thing we’re doing is giving full commercial rights to NFT holders.”
🏷️ The companies refused to share the sale price and Larva Labs said it would continue to operate independently and work on new projects.
Now read this: Why Crypto Is Unlikely to Help Sanctions Scammers
The week ahead 🗓️
👀 Keep an eye out for these cryptocurrency and crypto-adjacent events this week.
🌋 At some point this week, El Salvador is set to issue its highly anticipated volcano-fueled $1 billion bitcoin-backed bond. However, Reuters reported late last week that Russia’s war in Ukraine could delay things.
📢 During the weekend, “crypto, web3 and metaverse evangelists” came down to Austin, TX for the SXSW tech event. Watch this week for big-name appearances from digital artist Beeple, famous for his record-breaking $69 million non-fungible token (NFT) sale last year, and The OC actor Ben McKenzie, who makes the promoting his new crypto skeptical book.
🗳️ Today the European Union will vote on a proposed rule that could effectively see bitcoin banned in the trading bloc. Coindesk believes the result is too close to call. You can watch the debates here starting around 9 a.m. ET.
🏦 On Wednesday, the US Federal Reserve is expected to raise its base interest rate by 25 basis points in a move that has been carefully telegraphed to the markets. Traders are keeping a close eye on how the economic fallout from Russia’s invasion of Ukraine and the harsh sanctions that have been imposed on Russia could change Fed Chairman Jerome Powell’s thinking. Powell previously said cooling scorching inflation that had hit a 40-year high was his top priority.
💷 On Thursday, the UK’s Bank of England is together to follow in the Fed’s footsteps, with forecasters predicting that the central bank will vote to raise rates by 0.5% to 0.75%, bringing the benchmark rate back to where it was in January 2020.