Crypto saw a slight bounce over the past week along with other asset classes. Markets saw some relief mostly due to an aggressive stimulus package from the US. While nations continue efforts to mitigate the impact from the Corona outbreak.
Bitcoin’s hashrate continues its downtrend in a weaker environment for miners. With mining difficulty adjustments being just once every two weeks, blocktimes have slowed causing network congestion. Difficulty was decreased 15% on Mar 26th, which should provide some relief to miners.
Silvergate Bank’s temporary outage reminded us all to be wary of counter-party risk. Major exchanges, OTCs, and even stablecoin issuers rely heavily on this bank. Thankfully, it was a vendor issue and resolved in roughly 24 hours.
ZenGo points out a problems with almost all dApp wallets. Funds could be drained without the user’s consent. This is scary during a time when DeFi is one of the fastest growing apps in the crypto space. Even big names, such as Opera, Imtoken, and Trust wallet, currently do not have the correct measures in place.
In the US, the CFTC has finalized a definition of “actual delivery” of digital assets. It may not sound like much but it’s a significant step forward for the institutions. It gives guidance to broker-dealers, custodians, etc., and not to mention, legal protection.
In all it was a pretty exciting week for Cryptos. Bitcoin continues to regain value as we get closer to the third halving event in May. The market is still stabilising after the crash earlier this month, but Bitcoin appears to have bottomed and the market is beginning to look bullish again. We will keep you posted on updates, feel free to reach out should you have any questions.
By Genesis Block Head Trader, Charles Yang