Bitget Hot Takes (March 20 - March 26)
Bitget Hot Takes is the exclusive weekly newsletter series by Bitget Academy, the 360-degree onboarding guide for all crypto enthusiasts.
Bitget Hot Takes last week can be found here.
• BGB and BTC are the only gainers of the week.
• FED increased the fund rate by 0.25%, expecting a higher target rate.
• The U.S. SEC, IRS and EU Parliament in action.
• Do Kwon was arrested in Montenegro.
• Bitget invested US$30 million in BitKeep, securing the controlling stake.
BGB And BTC Are The Only Gainers Of The Week
Most cryptocurrencies saw a decline in value after the new U.S. Federal Reserve (FED)’s 25 bps rate hike on March 22 (last Wednesday). Some had picked up the pace shortly afterwards, but the momentum faded over the weekend, resulting in a weekly loss for Ethereum and BNB holders.
Meanwhile, BGB is the only token other than BTC that ended the week on a positive note (1.05% and 2.07%, respectively). It also registered a 7.12% higher weekly high, a 5.55% higher weekly low, and a minor rise in volume. Overall, BGB is doing a great job locking in the demand, thereby staying resilient despite broader macro changes.
The latest analyses provide a detailed summary of BGB’s incredible achievements month by month:
… while this article dives in deep on why BGB has become the new staple: Why BGB Is Your Bluechip Exchange Token
Another 25 BPS
FED decided to continue to raise the interest rate by 0.25% on March 22, with the FED Chair mentioning a change in the target rate from 4.5-4.75% to 4.75-5% as ‘inflation remains elevated’. Both stock markets and crypto markets had been expecting an end of FED’s rate hikes, but the ‘tighter credit conditions’ warned by Jerome Powell are literally screaming drying liquidity - not so much of a good omen for the financial markets. The news came amid growing fears regarding the banking system; markets have seen not only crypto banks but also the mighty Credit Suisse fall, and no reassurance seems to have done the work.
What brings more turbulence to crypto markets are the U.S. authorities’ attitude towards this industry. The 513-page White House Economic Report shows a dim view on blockchain and cryptocurrencies, saying ‘blockchain technology has fueled the rise of financially innovative digital assets that have proven to be highly volatile and subject to fraud’ and ‘crypto assets to date do not appear to offer investments with any fundamental value, nor do they act as an effective alternative to fiat money, improve financial inclusion, or make payments more efficient’. The Securities and Exchange Commission (SEC) is targeting several crypto nobles at once, from Justin Sun to Sushi and Coinbase Global.
The Internal Revenue Service (IRS) is actively seeking comments on their treatment of NFTs, stating NFTs will continue to be treated as the underlying asset (artworks and other collectibles) until the rules are finalised.
In Europe, the main topic last week was concerns around ‘illicit cash flows’, which is the focus of the European Parliament’s new AML bill and the upcoming debate of ‘transfer of funds’ regulation on April 18 for the finalisation of the long-awaited landmark bill MiCA.
One big news of the week was the arrest of Do Kwon, Terra (LUNA) founder, in Montenegro. He is facing charges by the Southern District of New York of wire fraud, commodities fraud, securities fraud, and conspiracy to defraud and engage in market manipulation. Previously in February 2023, the SEC also issued charges against Kwon relating to ‘orchestrating a multi-billion dollar crypto asset securities fraud’. The U.S. therefore will most likely seek to extradite Kwon to the country, but South Korea prosecutors are also discussing with ‘related parties’ on the extradition of Kwon.
The Latest Bitget News
As one major leader in the digital space, Bitget understands that decentralised protocols are the future of cryptocurrencies. We have been supporting the growth of DeFi via (1) our extension of products (Bitget Launchpool, Bitget MegaSwap, Bitget Earn) so that beginners can get acquainted with DeFi activities in a safe environment, (2) our Bitget Launchpad and Bitget Innovation Zone, where startups and new projects can expose themselves to our strong base of crypto-natives and (3) investing in fundamental crypto services. Last week, Bitget made an additional investment of US$30 million into the multi-chain Web3 wallet BitKeep, showing our commitment to grow beyond the custodial territory as well as improving the platform’s security in terms of asset storage.
To celebrate the rise of Arbitrum, we are hosting the Bitget Arbitrum Week - lots of activities across multiple products: Bitget Launchpool, ARB Depositing, ARB Spot Trading, ARB Savings and the innovative ARBETF! Find out everything you need to know about our Arbitrum Week here.
We are delighted to announce that our Fixed Savings is live! Bitget Fixed Savings is a low-risk, high return product with a fixed subscription term. By locking your asset of choice for a certain period (30, 60, 90 or 120 days), you are entitled to earning lucrative interests for a wide range of coins from USDT, USDC, ETH, APE to AXS. A full guide on how to join Bitget Fixed Savings is provided here: Introduction To Bitget Fixed Savings
Simply create an account, and start exploring the incredible Bitget-Verse today!