Welcome to the March 5, 2024 edition of the Genfinity News Recap! As you navigate through your busy workday, staying informed about the latest developments in the realms of Web3 and finance can be a challenge. However, we are here to provide you with an overview of the crypto news you might have overlooked today.
March 5, 2024 Genfinity News Recap
BRICS
The BRICS group, consisting of Brazil, Russia, India, China, and South Africa, plans to develop a payment system based on blockchain and digital technologies, aiming to reduce reliance on the US dollar in settlements. CoinDesk reported on the story, nothing that making the system convenient, cost-effective, and free of political influence is important for the entity. The effort aligns with BRICS’ goal to increase its role in the international monetary system and reduce dependence on the US dollar.
Additionally, Russia’s Finance Ministry, the Bank of Russia, and BRICS partners are collaborating to create the BRICS Bridge multisided payment platform. Meanwhile, Klaas Knot of the Financial Stability Board emphasized the prioritization of crypto assets, tokenization, and artificial intelligence in the global financial system in a letter to G20 finance ministers. You can read the original report here.
Bitcoin
Bitcoin hit a new peak of $69,325 due to increased demand from U.S. spot exchange-traded funds but promptly fell by 3.2% to $66,100 within half an hour. The broader crypto market also fell to the bears, dropping by 1.8% following Bitcoin’s high. CoinDesk reported that while Bitcoin typically rallies after reaching a new high, its immediate drop could imply a lack of momentum compared to previous cycles.
Over $84 million in derivatives positions were liquidated just in a 4-hour time period today — mostly long positions. Furthermore, they speculate that a rejection from the $69,000 region indicates Bitcoin might retreat to previous support levels like $64,000 or $61,000 before attempting another breakthrough.
Exchange Issues
Algorithmic trading firms have been identified as the primary cause of recent outages at major centralized cryptocurrency exchanges. This was identified by Ivo Crnkovic-Rubsamen, dydx exchange’s chief strategy officer and technical lead for trading, who gave an exclusive interview to Cointelegraph.
Centralized exchanges escalate their order placements and cancellations significantly during periods of heightened retail interest and rapid price movements, overwhelming the exchanges’ matching engines. This trend is typical during bull markets and times of concentrated retail interest. Unlike decentralized exchanges (DEXs), centralized exchanges have the ability to establish customized trading limits for individual market makers, resulting in increased workload during bullish market conditions. While centralized exchanges demonstrate exceptional performance, they may exhibit decreased reliability compared to DEXs during peak bull market loads.
Regulation
Virginia
The Virginia Senate approved a significant bill establishing a workgroup to analyze the broader cryptocurrency landscape and propose measures to support its growth. Senate Bill No. 339 was introduced on Feb. 5 to seek recommendations for expanding blockchain technology, digital asset mining, and cryptocurrencies in the state. On March 4, the Virginia House of Delegates endorsed the bill with overwhelming support. Senator Saddam Azlan Salim initiated the bill, aiming to exempt miners from money transmitter licenses and prevent targeted ordinances.
Cointelegraph summarized the news, stating that the newly formed crypto workgroup will comprise 13 members, including representatives from the Senate, House of Delegates, blockchain industry, and local government. They are tasked with completing their studies by Nov. 1, 2024, and presenting recommendations by the start of the 2025 General Assembly session. A recent proposal in Virginia also sought funding for commissions on artificial intelligence and cryptocurrency.
Arizona
The Arizona state Senate has passed a resolution urging lawmakers and state retirement fund managers to explore adding Bitcoin ETFs to their investment portfolios. Blockworks did a story on the resolution, introduced after the US Securities and Exchange Commission allowed Bitcoin ETF trading. It calls on the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS) to assess various investment opportunities. Approved by the state Senate in a 16-13 vote, the resolution is now being reviewed by the state House Ways and Means Committee.
Republican state Senator Wendy Rogers, who previously advocated for making Bitcoin legal tender in the state, supports the resolution. While some states have considered cryptocurrency exposure in pension plans before, the approval of Bitcoin spot ETFs provides a more accessible investment option. Notably, several pension funds in the US, such as those for firefighters in Houston, TX, and police officers in Fairfax County, VA, have already ventured into cryptocurrency investments.
We hope you enjoyed our March 5, 2024 Genfinity News Recap! Come back tomorrow evening for another news summary, and please leave a comment below.
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