📈 BNP Paribas Invests in BlackRock ETF!
Welcome to the Daily Tribune on Friday, May 3, 2024 ☕️
Hello Cointribe! 🚀
Today is Friday, May 3, 2024, and like every day from Tuesday to Saturday, we summarize the news of the last 24 hours that you shouldn't miss!
But first…
✍️ Cartoon of the day:
A quick look at the market…
🌡️ Temperature:
Sunny ☀️
24h crypto recap! ⏱
🚀 BNP Paribas bets on Bitcoin
While Bitcoin ETFs face massive and historic outflows totaling $563.7 million in a single day, BNP Paribas, the second largest European bank, has chosen to invest in Bitcoin. The bank has acquired a modest but symbolically important stake of $40,000 in BlackRock's IBIT ETF. This investment comes at a time of crisis for Bitcoin ETFs, but it is seen as a strong signal of Bitcoin's validation as an asset class by a major player in traditional finance. This gesture could positively influence institutional acceptance of Bitcoin and boost general interest in regulated investment vehicles such as ETFs. 🔗Read the full article here.
📉 Record collapse for Bitcoin ETFs with $563 million in outflows in one day
May 1, 2024, will be remembered as a black day for Bitcoin ETFs, with record outflows amounting to $563.7 million. This shockwave began with BlackRock's iShares Bitcoin Trust (IBIT), which saw $36.9 million withdrawn, ending a period of 77 days of net positive flows. Other reputable funds such as the Fidelity Wise Origin Bitcoin Fund and the Grayscale Bitcoin Trust also suffered significant losses. Despite these massive outflows, analysts like James Seyffart of Bloomberg consider these fluctuations to be normal in the life cycle of an ETF. 🔗Read the full article here.
⚖️ Congress controversy: SEC chairman accused of lying about Ethereum
Gary Gensler, chairman of the Securities and Exchange Commission (SEC), is currently under criticism for his ambiguous statements regarding Ethereum's status as a potential security. At the heart of the accusations, Representative Patrick McHenry criticizes Gensler for allegedly misleading Congress during a hearing of the Financial Services GOP, where he evaded direct questions about the regulatory nature of Ethereum. This conflict arises following a lawsuit by Consensys, claiming that the SEC considers Ethereum an unregistered security for over a year. This situation creates palpable tension between regulators and cryptocurrency actors, exacerbated by contradictory secret proceedings by the SEC that highlight potential arbitrariness in cryptocurrency regulation. 🔗Read the full article here.
🏊♂️ Panic among Bitcoin investors
Faced with the high volatility of Bitcoin and a significant drop in its price, many new investors who entered the market during the early 2024 bull run find themselves in a difficult situation. Seduced by historic highs, these Bitcoin holders bought at high levels, requiring a price of over $59,600 to be profitable. The current drop has led to panic selling, often at a loss, despite warnings from experts like James Check of Glassnode, who reminds that price drops are normal in the life cycles of cryptocurrencies. Although these corrections may seem alarming, they do not necessarily indicate the end of a bull market. 🔗Read the full article here.
Crypto of the day: ZetaChain (ZETA)
ZetaChain is an innovative blockchain that stands out for its interoperability-oriented architecture between different blockchains and traditional systems. Its main innovation lies in its ability to perform cross-chain transactions, facilitating the exchange of value and information between blockchains that are usually not compatible with each other.
The native cryptocurrency of ZetaChain, ZETA, plays a crucial role in this system by being used for transaction fees, network governance, and as a security mechanism through staking. ZETA holders benefit from staking rewards, voting rights in network governance decisions, and participation in protocol improvements. ZETA was initially distributed through a public offering, followed by allocations for ecosystem development and strategic partnerships, aimed at strengthening ZetaChain's position and adoption in the blockchain technology sector.
Recent performance
Current price: $1.82
Price change in 24 hours: Increase of 34.49%
Market capitalization: $484,078,297
Rank on CoinMarketCap: 131
No Rate Cut in Sight: Implications of the Fed's Decision for Bitcoin
Faced with persistent inflation, the United States Federal Reserve has chosen to postpone any interest rate cuts, marking a significant pause in its previous policy direction. In a recent statement, Fed Chair Jerome Powell expressed that the benchmark interest rates, currently held at 5.50%, would likely not be reduced in the immediate future. This decision comes after observing a full quarter of inflation rise, defying previous projections that suggested a possible monetary easing.
The impact of this decision on financial markets, including the cryptocurrency sector, is considerable. The Fed also signaled a slowdown in the reduction of its balance sheet, which stood at $5.7 trillion in Treasury bonds and $2.4 trillion in mortgage-backed securities. By slowing down the pace of selling these assets starting in June, the Fed injects a dose of caution while implicitly acknowledging that the current economic environment requires a more measured approach. This strategy could strengthen Bitcoin's position as an alternative safe-haven asset, especially in a context where investors seek assets that are not correlated with central bank policies. The finite nature of Bitcoin's money supply, juxtaposed with inflation that shows no signs of rapid slowdown, could potentially increase its appeal among investors concerned about preserving their capital against monetary devaluation. 🔗Read the full article here.