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Reddit Crypto Stock: Bitcoin Tops $53,000
Key points
- Bitcoin recovered to $53,000 on Monday after more than two years.
- Reddit revealed it owned bitcoin and ether in regulatory filings ahead of its initial public offering.
- Former US President Donald Trump appears to have softened his stance on cryptocurrencies.
- The Federal Reserve has released an analysis of the US dollar-denominated stablecoin market.
- The US Department of Energy has temporarily suspended a survey of bitcoin miners’ energy consumption after a lawsuit.
What happened in the cryptocurrency markets last week?
Bitcoin (Bitcoin) started the week on a positive note, rising 3% Monday afternoon to above $53,000, its highest level since December 2021. Reddit’s disclosure of its cryptocurrency holdings and the former’s seemingly softer stance President Donald Trump on bitcoin last week may have added price momentum for the largest cryptocurrency.
Reddit’s cryptocurrency stash
While preparing for a initial public offering (IPO), social media platform Reddit revealed its ownership of bitcoin and ether (ET) in a document filed last week with the U.S. Securities and Exchange Commission. This adds to the list of mainstream companies like MicroStrategy (MSTR) and Tesla (TSLA) who own bitcoin.
But Reddit’s crypto exposure isn’t all there is to it. The company also has some of Polygon’s Matic (MATIC) for use in specific virtual goods transactions. While the exact number of tokens remains unknown, Reddit has clarified in documentation that the net value of these digital assets is considered “intangible.” This strategic move highlights Reddit’s long-standing commitment to cryptocurrencies and blockchain technology, which began as early as 2014.
Trump softens stance on Bitcoin
Former President and Republican candidate Donald Trump appeared to soften his stance on cryptocurrency last week. In a recent interview on Fox News, Trump admitted that bitcoin has gained popularity, while expressing his preference for the US dollar.
This seems like a bit of a step back from the hardline anti-crypto currency he posted on Twitter (now X) in 2019.
USDC abandons Tron
Stablecoin issuer Circle will stop supporting its USD coins (USDC) stablecoin on the Tron blockchain network, citing alignment with its commitment to maintaining the reliability, transparency and security of USDC.
The new Fed report on stablecoins
The Federal Reserve released a report on stablecoins on Friday, specifically focusing on how the market functions during times of stress. Notably, the report found that despite the alleged similarities, USDC and Tether (USDT) stablecoins operate as distinct markets.
“Even stablecoins that might appear to work similarly on paper, such as fiat-backed stablecoins like USDT and USDC, are distributed across primary markets with distinct characteristics in terms of frequency, number of participants, and response to external shocks,” we read in the report. She said.
The report, which also covered BUSD and DAI, indicates that further study is needed on the stablecoin market, as these assets maintain a vital role in decentralized finance (DeFi).
Bitcoin Miners Call on Department of Energy to Suspend Survey
The US Department of Energy (DOE) has agreed to temporarily suspend its emergency survey of energy use by cryptocurrency miners after a lawsuit from bitcoin miner Riot Platforms (REVOLT) and the Texas Blockchain Council.
The DOE’s statistical arm, the US Energy Information Administration (EIA), has suspended its mandatory survey for a month and will safeguard data already collected as of February 5. The lawsuit aims to halt the investigation, citing the potential harm to companies from disclosing sensitive information.
What to expect from the cryptocurrency markets this week
So far this week has been a mixed bag. As bitcoin continues its march forward, there are some pockets of not-so-great news.
Cryptocurrency exchange BitForex has been plunged into darkness following reports of a $57 million outflow. According to reports, customers are currently unable to access the exchange as withdrawals have stopped processing. The abrupt disappearance of the exchange’s online presence follows the departure of former CEO Jason Luo in January. Previously, the exchange was accused of falsifying trading volume and regulatory scrutiny for operating without a license in Japan.
Analysts will also be monitoring spot bitcoin exchange-traded fund (ETF) inflows this week, as last week’s decline in activity coincided with a stall in the cryptoasset’s recent price surge. Despite the relative decline in activity, last week marked the fourth consecutive week of positive net inflows for digital asset investment products, according to CoinShares.