2024-11-14 13:24

Chainlink will provide crucial pricing data and cross-chain interoperability infrastructure for the nascent DeFi platform. World Liberty Financial (WLFI), the nascent decentralized finance (DeFi) protocol supported by Donald Trump and his family, said Thursday that it will use data provider Chainlink's services for better integrating with the wider crypto ecosystem. Chainlink will support the platform by providing crucial pricing data and cross-chain interoperability infrastructure. "The Chainlink standard is already widely used across DeFi and will help WLFI attract users that value the security and reliability that has already helped grow DeFi as an industry,” Chainlink co-founder Sergey Nazarov said. World Liberty Financial is spearheaded by Zachary Folkman and Chase Herro, who worked previously on DeFi platform Dough Finance, which saw $2 million of crypto assets drained through a July exploit. Members of the Trump family, including Donald Trump, publicly championed the project on social media, with the former president being titled as "Chief Crypto Advocate." for the platform. Two of his sons, Eric Trump and Donald Trump Jr., are involved as "Web3 Ambassadors," while his other son Barron Trump is listed as "DeFi Visionary." The project aims to launch on DeFi lending powerhouse Aave's v3 platform on Ethereum mainnet to provide liquidity for ether (ETH), wrapped bitcoin (wBTC), stablecoins and other digital assets. "World Liberty Financial's partnership with Chainlink marks a huge step forward," Eric Trump, web3 ambassador at World Liberty Financial," said in a statement. "Never before have we been more bullish on crypto or the overall future of DeFi technology.” https://www.coindesk.com/business/2024/11/14/trump-supported-world-liberty-financial-taps-chainlink-data-services-as-defi-platform-takes-shape/

2024-11-14 11:57

The traditional 60/40 portfolio that seemed to yield good returns, doesn't seem to be the answer to this new inflationary world. The traditional 60/40 portfolio, which ensures growth from equities and bonds that helped manage risk, was the perfect vehicle for the analog economy. Adding bitcoin to a 60/40 portfolio increases the returns as the allocation increases. It may be time to reassess the wisdom of the 60/40 portfolio, which was created back in the early 1950's and is often referred to as the "Modern Portfolio Theory". The theory was created by Harry Markowitz who tried to optimize a portfolio from a risk reward standpoint . The traditional 60/40 portfolio is split into equities (60%) and fixed income (40%). It was designed to make the portfolio diversified and balanced, and managing both risk and growth simultaneously. Equities would give you those much-needed returns in good times, but in bad times, bonds were there to capture the drawdowns and weather the storm. However, we may need to change our thinking as we head into a new era of inflation above 2% and high interest rates. The U.S. Consumer Price Index (CPI) inflation year-over-year has not been at the Federal Reserve mandate of 2% since February 2021. In fact, as of Nov. 13, CPI inflation was 2.6%, a 0.2% increase from the month prior. Interest rates globally have continued to decline in the last four decades, pushing bonds higher, especially during the post-2008 zero-rate policy environment. However, since 2021 interest rates have risen and bonds have suffered, experiencing their largest drawdowns. An example of this is the BlackRock iShares 20-plus Year Treasury Bond ETF (TLT), which has witnessed a 54% drawdown from its peak in 2020 to the trough in 2023. Beating inflation is the name of the game now, as currency debasement becomes a real concern for investors worldwide. This can be seen in the bond market, where the U.S. 10-year yield climbed to its highest level since July after the Fed's first rate cut back in September, now at 4.4% from 3.6%, crushing bonds in the process. The 60/40 portfolio Taking a look at data from Curvo, a data and financial provider, we can see what a 60/40 portfolio would look like. For equities, Curvo chose iShares Core MSCI World UCITS ETF USD in the MSCI World Index and for the bonds, they take Xtrackers Global Sovereign UCITS ETF 1C EUR hedged in the FTSE World Government Bond - Developed Markets index. Since the beginning of 2014, an initial investment of euro 10,000 ($10,500) investment would have returned just above euro 20,000 ($21,000), essentially doubling in 10 years. Which seems like good returns. However, what would happen if we add bitcoin (BTC) to the mix? For the analysis, we have taken a 1%, 2%, 3%, 5%, and 10% allocation in bitcoin. A 1% allocation would see a 0.5% decrease in both equities and bonds to keep the split equal; this would be the same as the BTC allocation incrementally gets higher. As you can see the higher the bitcoin allocation the greater the return. A 10% bitcoin allocation would yield of over euro 70,000 ($73,000) or over a 3x return compared to the traditional equity allocation. Just for fun, we adapted the original 60/40 portfolio to include 60% equities and a 40% bitcoin allocation to replace the bonds, the results show a whopping 50x return of nearly euro 500,000 ($526,000). To include 2024 data, the analysis takes a year-to-date return of 101% for bitcoin. While, taking the average annual performance of the original 60/40 portfolio. Due to bitcoin's risk-off monetary properties, such as not having a CEO or a central point of failure, bitcoin can act as a diversified entity in a 60/40 portfolio. The analysis didn't include tech stocks such as Tesla {{TSLA}} or NVIDIA {{NVDA}} for these reasons. Also, since its inception bitcoin has provided greater returns than gold annually, hence we opted for bitcoin. https://www.coindesk.com/markets/2024/11/14/what-does-a-6040-portfolio-look-like-if-we-replace-bonds-with-bitcoin-a-lot-better-van-straten/

2024-11-14 11:56

Bitcoin dominance continues its uptrend and hits new highs as ETF inflows soar. Bitcoin has become the seventh largest asset on the planet, recently surpassing Saudi Aramco Bitcoin dominance continues to make new highs, recently touching 61.38% U.S. spot-listed ETFs see over $4.7 billion in net inflows in the past six trading days Bitcoin (BTC) is on a roll. The largest cryptocurrency by market capitalization has just become the seventh-largest asset by market cap on the planet, overtaking oil giant Saudi Aramco. Its dominance over the crypto industry set a high of 61.38% and the price hit a record of over $93,000 on Wednesday. A large part of the recent success is due to U.S. President-elect Donald Trump's pro-crypto stance during the election campaign. As of today, the Republicans won the House, completing the trifecta and boding well for cryptocurrency prices due to favorable regulation. Another part of BTC's success comes from the massive inflows into U.S. spot-listed exchange-traded funds (ETF). In the past six trading days, bitcoin ETFs have seen a whopping $4.7 billion of net inflows, including more than $510.1 million on Wednesday alone. This brings the total since their introduction in January to $28.2 billion, according to Farside data. Since the launch, there have been questions raised about whether they were part of the basis trade or net long positions. But as the year has progressed, it seems investors are moving away from the basis trade, which is a net neutral strategy that is becoming a smaller trade over time. Analyst Checkmate supports the argument that the majority of the demand is coming from the ETFs. "The Bitcoin ETFs are by far the majority driving force of bitcoin demand right now, soaking up almost all of the selling by Long-Term Holders. CME open interest is not growing meaningfully, reinforcing that this is a spot-driven rally," they said in a post on X. BlackRock's iShare Bitcoin Trust (IBIT) continues to hit record after record in trading volume, touching $5 billion for the first time, according to Eric Balchunas, a senior analyst at Bloomberg. "I thought things were cooling off, but no, IBIT just saw $5b in volume today for first time ever. Only 3 ETFs and 8 stocks saw more action today. Up to $13b in 3 days this week. Its peers seeing heightened volume too but smaller scale. FBTC did $1b, biggest day since March", Balchunas said. The Ethereum blockchain's ether (ETH) is also seeing renewed interest in U.S. spot-listed products, with a further $146.9 million inflow on Nov. 14, taking the total net inflow to $241.7 million, according to Farside data. https://www.coindesk.com/markets/2024/11/14/us-etf-inflows-hit-47b-over-6-days-as-bitcoin-becomes-7th-largest-asset-in-the-world/

2024-11-14 07:44

His body was found months after he was kidnapped from a Montreal condo. A 32-year-old woman has been charged with his murder. Mirshahi was first abducted on June 21 along with three others who were later found alive. His crypto investment scheme on Telegram, Crypto Paradise Island, was under investigation by authorities. A dead body discovered in the Île-de-la-Visitation park in Montreal, Canada on Oct. 30 has been identified as missing “crypto influencer” Kevin Mirshahi, according to a Nov. 12 report from the Montreal Gazette. The 25-year-old has been missing since he was abducted along with three others from a condo in the city on June 21. The other abductees, two women and one man, were located by police hours later. In August, Joanie Lepage, 32, was charged with first-degree murder of Mirshahi and the abduction of Mirshahi and the three others. It is not known if her actions are linked to Mirshahi’s cryptocurrency ventures. At the time of his disappearance, Mirshahi ran a crypto investment scheme called Crypto Paradise Island, a paid-for Telegram group offering investment advice. But it was also implicated in a pump and dump scheme involving a token called Marsan ($MRS) that saw its 2,300 members - many between the ages of 16 and 20 - lose thousands of dollars, according to Le Journal de Montréal. Created by Antoine Marsan and Bastien Francoeur through their company Marsan Exchange, the token launched April 14, 2021. They paid Mirshahi in the token to promote it. Marsan peaked in value at Canadian dollar $5.14 ($3.67) three days after launch, but on April 18, two large holders cashed out and the value collapsed to $0.39. As a result, Mirshahi and his company had been under investigation by Quebec’s investment regulator, the Autorité des marchés financiers (AMF), since 2021. He was also under a “ban on carrying out any activity as a broker or investment adviser, a ban on securities transactions and orders for the withdrawal of publications on social media and the withdrawal of the name of the AMF”, which had most recently been extended on July 4 this year. Further reporting by Le Journal de Montréal indicates that despite the ban, he continued to run a Telegram group promoting cryptocurrency investments with the name “Amir." The announcement that his body had been discovered came a week after another cryptocurrency-linked kidnapping in Toronto. Dean Skurka, CEO of publicly listed crypto holding company WonderFi, was forced into a car by assailants who then demanded a ransom of nearly $720,660. He was released after paying the money. But it’s not just Canada that has seen an uptick of physical crime involving cryptocurrency. A list maintained by co-founder and Chief Security Officer of Casa, Jameson Lopp has recorded 18 attacks with links to cryptocurrency this year. Among them are cases of investors being lured by attackers under the pretense of doing in-person P2P trades, home invasions, and even murders. https://www.coindesk.com/policy/2024/11/14/missing-crypto-influencer-under-investigation-by-canadian-regulator-found-dead-in-montreal-report/

2024-11-14 05:49

BTC seems to be following the pattern in the Nadaq-to-S&P 500 ratio, widely seen as a gauge of investor risk appetite in traditional and emerging technology sectors. BTC's price fades the spike above the trendline off the twin peaks from 2021, following the pattern in the NDX/SPX ratio. BTC has been positive correlated with the ratio since at least 2017. Bitcoin's (BTC) price soared to a record of $93,445 late Wednesday but has since retreated to hover around that all-important resistance level of $90,000. This level is identified by a trendline connecting the twin peaks from 2021, making it a key point to watch. Interestingly, a similar trend has played out in the Nasdaq-to-S&P 500 (NDX/SPX) ratio, which is widely seen as a gauge of investor risk appetite in traditional and emerging technology sectors. Since 2017, this ratio has led bitcoin through its ups and downs, and CoinDesk first highlighted this pattern in April 2023, emphasizing a solid positive correlation between the two. Back then, the ratio was in an uptrend, offering bullish cues to BTC, which traded below $30,000. Fast forward to July, the NDX/SPX ratio peaked at new highs, right above the critical trendline joining the twin peaks from 2021, sending positive signals to bitcoin. But since then, the ratio has taken a step back, settling below the trendline again. So, as of now, it looks like bitcoin is following movements in the NDX/SPX ratio, just like it has for years. If this pattern holds, we might see BTC settle below $90,000 for a bit longer. The shenanigans in the options market suggest the same. On the flip side, a renewed upswing in the NDX/SPX ratio would be a green signal for the bulls to go all in and take prices into six figures. Some traders are already betting on an eventual breakout above the $100,000 mark. https://www.coindesk.com/markets/2024/11/14/bitcoin-dips-below-90k-after-hitting-new-high-of-934k-is-it-following-the-nasdaq-to-sp-500-ratio/

2024-11-14 03:48

Republicans won a majority in the House of Representatives, clearing the way for comprehensive crypto legislation when Congress takes off next year. The Republican Party will keep the U.S. House of Representatives for the next two years, raising hopes for comprehensive crypto legislation in the next Congress and securing a Republican trifecta for at least the next two years. Republicans already won the White House with Donald Trump's reelection, and flipped several Senate seats for a majority in the chamber of Congress during last week's election. The Associated Press projected that the party secured at least 218 seats late Wednesday. The House of Representatives has been the legislative body to move most crypto legislation at the federal level, particularly in the last year after multiple crypto-focused bills were passed by a majority of the body's 435 lawmakers. Republicans held a slim majority in the House during that time, but Democrats were expected to flip it during the 2024 election. However, Republicans clinched it with the election of Juan Ciscomani in Arizona, giving the party enough seats for a majority. Republicans lead in a handful of other races as well as of press time, and may hold up to 222 seats if current results hold. The party is about to lose a few lawmakers, with Trump naming Representatives Matt Gaetz, Elise Stefanik and Mike Waltz to executive branch roles, meaning they'll have to resign their seats. Gaetz, who Trump said would be his nominee for Attorney General, already sent his resignation letter "effective immediately." The Fairshake super political action committee and its affiliated PACs, Protect Progress and Defend American Jobs, provided financial backing to nearly 60 House and Senate candidates in the 2024 election, with the vast majority winning their races. Fairshake largely backed candidates in safe districts during the primary season, ensuring that the candidates they backed would coast to wins in the general election. The handful of races their candidates were unsuccessful include seats in Colorado, where a Republican defeated Democrat Yadira Caraveio, and California, where a Democrat defeated Republican Mike Garcia. Fairshake candidates trailed in at least two other races as of press time, but the PACs have notched over 50 wins, perhaps most notably in Ohio's Senate race. Sen. Sherrod Brown lost to Republican challenger Bernie Moreno, a car salesman and entrepreneur who received $40 million worth of backing from Fairshake. Retiring Rep. Patrick McHenry (R-N.C.), who chaired the House Financial Services Committee, spearheaded the passage of the Financial Innovation and Technology for the 21st Century Act (FIT21), a market structure bill that would have defined how different types of crypto assets should be regulated by U.S. agencies. The House also passed an overturn of the U.S. Securities and Exchange Commission's Staff Accounting Bulletin 121, a controversial policy dictating how financial institutions must report any digital assets they hold for customers. The SAB 121 resolution was passed through the Senate but later vetoed by President Joe Biden. The FIT21 bill did not receive a vote in the Senate. California Democrat Maxine Waters remains the ranking member of the Financial Services Committee, while Republicans have to choose who will lead their caucus on the committee. Reps. Andy Barr (R-Ky.), Frank Lucas (R-Okla.), French Hill (R-Ark.) and Bill Huizenga (R-Mich.) are some of the lawmakers vying for that role. Waters has been working on a stablecoin bill with Patrick McHenry, the retiring chair of the committee, for the last few years. It's unclear if that bill will be reintroduced during the lame duck session later this year, or if it will be introduced next year when the new Congress takes over. https://www.coindesk.com/policy/2024/11/14/republicans-win-house-majority-completing-trifecta-in-2024-election-that-saw-donald-trump-win-second-term/