Visions

Welcome to September!!

We hereby present a snapshot of the latest as we continue to assess a vision of the future, which is the mission of our property with thoughts courtesy of Coinbase, The Future Beat courtesy of The National, and Time Magazine:

This week in numbers. The total amount of crypto ATMs in Australia, the sum raised by an early-stage crypto investor, and more stats to know.

Price changes are for the past week, ending on Sep 5, 2024 at 11:48 PM UTC

See the latest prices

MARKET BYTES

Bitcoin hits volatility, struggles to break past $60K

Bitcoin sank to its lowest level since early August to start the week, falling about 5% between Tuesday and Wednesday, to around $55,500, before recovering slightly. By Thursday morning, BTC was back near $56,000.

The sharp decrease came after the Institute for Supply Management’s manufacturing index, a key economic indicator, declined for the fifth straight month, resulting in big losses in both the U.S. and Asian stock markets.

Since bitcoin hit a new all-time high in March, investor sentiment has trended lower, with the Crypto Fear & Greed Index now sitting firmly in “Fear” levels, a sign that investors remain concerned about current price action. But that is only part of the picture.

Here are three other market stories to know this week…

1: Bitcoin ETFs see their worst day of trading since May

The U.S. listed spot bitcoin ETFs had more than $287 million of outflows on Tuesday, their fifth straight negative day and their worst day of outflows since May 1.

Fidelity’s spot ETF product, FBTC, led the outflows with $162.3 million of withdrawals, followed by Grayscale’s GBTC, which saw $50 million of outflows. Notably, BlackRock’s product, IBIT, has seen consecutive days without inflows for the first time ever since launching in January.

The rough start to the week comes after the ETFs collectively logged a $94.2 million outflow for August, their first monthly outflow since April.

More red candles… Ethereum spot ETFs, which launched in July, also appear to be struggling amid ETH’s worst trading month in two years, as its price hit a seven-month low near $2,100 in August. Trading volume currently sits at just 15% of the levels reached during launch week.

2: Bitcoin financing is catching on in traditional finance

Despite the volatile year for cryptocurrency markets, financial firms continue experimenting with crypto in a variety of ways, for example by using bitcoin as collateral for other financial activities.

Metaplanet, a Japanese investment adviser that has adopted bitcoin as one of its reserve currencies, recently partnered with a Tokyo-based firm to help create what it calls a “compliant corporate custody service that … offers the potential to utilize Bitcoin as collateral for financing.” Metaplanet holds around $21 million of BTC, and regularly adds to its holdings, much like Michael Saylor’s MicroStrategy.

The bigger picture… In the U.S., an unclear regulatory structure has made it difficult for some firms to transact with bitcoin. But as Howard Lutnick, CEO of financial services firm Cantor Fitzgerald, said recently, “If the regulatory environment was good, you will see all the traditional financial companies go head first into bitcoin.”

3: Crypto trading volumes are rising, despite gloomy sentiment

Investor sentiment might be down, but it hasn't stopped the multi-month trend of rising cryptocurrency trading volumes.

According to The Block, the monthly trading volume on centralized exchanges topped $1.2 trillion in August, up nearly 7% from the month prior. (Coinbase is one of the centralized exchanges included in The Block’s data). In North America, traders were especially active in August, with the region notching $166 billion in trading volume last month, a 21.6% jump from the month prior.

A rising tide? Alongside volumes, the stablecoin market is also growing quickly, with stablecoins setting a new all-time high just last week. Analysts suggest that a rising stablecoin market along with growing trading volumes can be a sign of new capital entering the cryptocurrency market and growing confidence.
Read more about stablecoins

Hello, Crypto Briefers!
Despite recent dips below the $60,000 mark, experts remain bullish, citing a confluence of macroeconomic factors that could propel Bitcoin to $100k. Analysts point to Bitcoin's price surge 270% in the four months following the 2020 halving event, suggesting that a 70% climb to $100k is "not an outrageous forecast."
Bitcoin miners are weathering their leanest month since September 2023, a stark contrast to the heady days of March's record highs. August saw miner revenue plummet to $827 million, a 10.5% drop from July and a 57% fall from March's peak of $1.93 billion.

SpaceX aims to use robotic arms to catch Starship booster

SpaceX's Starship spacecraft blasts off from Texas. AFP

In brief | Elon Musk's SpaceX is aiming to catch its Starship booster mid-air using robotic arms during its fifth test flight, an innovation that could redefine rocket recovery.

Starship, a reusable rocket designed to transport cargo and astronauts to the Moon and Mars, has undergone test flights to prove it can reach orbit safely. In a previous test, the Super Heavy booster and Starship spacecraft made splashdowns in the Gulf of Mexico and the Indian Ocean.

Now, SpaceX plans to recover its booster using the “Mechazilla” robotic arms mounted on the launch tower, moving away from the landing legs used on Falcon 9 rockets. The company has announced that the Starship system is ready for another flight and is awaiting regulatory approval.

“On one hand, this method promises to streamline operations by cutting out the need for bulky landing legs, which traditionally add weight and reduce payload capacity. It is both thrilling and nerve-racking,” said Sahith Reddy Madara, an aerospace engineer and founder of Paris-based advisory firm Bumi and Space.

Why It Matters | SpaceX's long-term vision is to take humans to Mars, but more immediate goals include a $2.89 billion contract with Nasa to develop a landing system for the Moon.

Once the 69-metre booster propels Starship into space, the rocket will begin its return to Earth. The 145-metre launch tower's arms will then move into position to catch the booster.

SpaceX hopes this rapid reusability will allow the booster to be refurbished for its next flight, accelerating mission turnaround times and reducing flight costs.

Quoted | “It’s like watching an Olympic gymnast stick a landing after a quadruple somersault – except with tonnes of rocket descending at incredible speeds.”

– Sahith Reddy Madara, an aerospace engineer and founder of Bumi & Space

Future in focus

Donald Trump's post of AI-generated images of Taylor Swift and fans endorsing him on his Truth Social account

Celebrities as victims of AI | Trump posts fake AI images of Taylor Swift and her fans

Spaceport fire | Rocket engine catches fire in tests at vertical launch spaceport SaxaVord

Ethical thinking | Between Grok and a hard place: AI's rollout leaves ethics lagging behind

Social media monitoring | Should parents control their teenagers' use of social media?

Predicting the future: Signal or noise?

The UAE Central Bank does not recognise cryptocurrencies as legal tender. Reuters

A recent Dubai court ruling, which ordered a company to pay an employee's outstanding dues in both UAE currency and cryptocurrency, has sparked speculation about whether the UAE might soon permit salaries to be paid in digital currencies.

This is signal: This ruling validates cryptocurrencies as a legitimate and enforceable form of payment. Although experts caution that it doesn't imply UAE companies will be allowed to adopt decentralised currencies as a standard payment method, that could change in the future. The UAE Central Bank's release of initial crypto regulation guidelines in June is expected to mature into a clear operational framework next year, possibly leading to more practical uses of digital currencies. Dubai has also been proactive in regulating the virtual assets sector while encouraging its growth, having adopted the Virtual Assets Regulation Law in 2022 to establish an advanced legal framework that protects investors and aligns with international industry standards.