2023-10-31 15:26

Copyrighted Image by: Reuters In a recent development, Vitalik Buterin, the creator of Ethereum, has expressed his preference for Rollups over Validiums and disconnected chains for the secure retrieval of funds from Layer 1 chains, as per his latest blog post. Buterin classified Ethereum's Layer 1, 2, and 3 chains, noting that the distinction between Layers 2 and 3 is more architectural than security-based. Buterin singled out Rollups as the most secure option for returning assets issued on Layer 1 due to their on-chain data storage and robust security guarantees. The choice among various Layer 2 technologies is guided by a balance between security and scalability. Alternative options include Validiums that utilize validity proofs like ZK and store data off-chain. Looking forward, Ethereum's upcoming Dencun upgrade in 2024 will introduce EIP 4844. This upgrade is designed to enhance data availability across different Layer projects, thereby improving their security and usability. This development underscores Ethereum's ongoing commitment to bolstering its platform's security while simultaneously enhancing scalability. https://www.investing.com/news/cryptocurrency-news/ethereums-buterin-favors-rollups-over-validiums-for-secure-fund-retrieval-93CH-3215688

2023-10-31 15:19

Copyrighted Image by: Reuters. In the latest development in the cryptocurrency market, Ripple has extended its final escrow deadline to April 2027. The company's original plan was to release one billion XRP each month for a period of 55 months. However, the recurrent relocks of significant portions of each monthly release back into escrow from its main address, “Ripple 1,” have resulted in this extension. This month, Ripple unlocked XRP worth $550 million and spent an additional five million tokens from past balances on sell-offs amounting to 205 million tokens. These transactions were directed to the address “rJqiM…La8nE.” The monthly unlock of 1 billion XRP is part of the remaining 46.43 billion XRP in escrow, contributing to the total circulating supply of 53.56 billion XRP. This process involves addresses "Ripple (22)" and "Ripple (23)." Ripple, which controlled 80 billion of the total 100 billion XRP supply created in 2012, has been managing the supply through this system of unlocks and relocks. The core team was the recipients of the initial 20 billion XRP distribution. This strategy by Ripple is part of its efforts to manage the supply and demand dynamics of XRP in the market. By relocking a significant portion of each monthly release back into escrow, Ripple ensures a steady but controlled increase in circulating supply. https://www.investing.com/news/cryptocurrency-news/ripple-extends-final-escrow-deadline-to-2027-continues-monthly-xrp-release-93CH-3215681

2023-10-31 12:43

Copyrighted Image by: Reuters. In a recent turn of events, the euro has strengthened while the Japanese yen has dipped, with the USDJPY exchange rate reaching over 150.00. This movement is attributed to the Bank of Japan's (BOJ) decision to maintain a 1% cap on the 10-year Japanese Government Bond (JGB) yield, alongside its -0.1% short-term rate. The BOJ also plans more JGB buying and intends to implement a flexible Yield Curve Control (YCC) strategy amidst prevailing uncertainties. Despite experiencing an overshoot in inflation due to increased import costs, Japan continues its monetary easing under YCC. The BOJ's policies seem to have affected the forex market significantly, leading to the recent fluctuations in currency values. Meanwhile, the Federal Open Market Committee is likely to retain a Federal funds rate between 5.25% and 5.5%. This decision appears to contrast with the BOJ's approach, which may be contributing to the currency market dynamics. In other financial news, commodities have shown mixed performances. Crude oil and spot gold have seen increases, while spot silver has experienced a decline. Bitcoin is currently valued at $34,525. The global markets are displaying varied trends as well. While US and European markets are on an upward trajectory, Asia Pacific markets have been descending. This divergence could be linked to China's manufacturing dip, sparking concerns about recovery in the region. Lastly, while the euro gains strength and the yen weakens, it will be crucial to monitor how central banks' policies continue to impact global markets and currencies. https://www.investing.com/news/forex-news/euro-strengthens-as-yen-dips-amid-bojs-monetary-easing-and-ycc-policies-93CH-3215458

2023-10-31 12:13

Copyrighted Image by: Reuters. Pakistan has announced a significant increase in natural gas prices for a majority of households and the industry, as it prepares for the International Monetary Fund's (IMF) inaugural review of its $3 billion Stand-By Arrangement (SBA) loan program. The review, led by Nathan Porter of the IMF, is set to take place from November 2-16. In response to debt in the energy sector, the caretaker government under Energy Minister Muhammad Ali has raised the fixed tariff for 57% of consumers from 10 rupees to 400 rupees ($1.42) monthly. This move implements differential rates based on household income. The state-run gas sector has also introduced new tariffs for industry, anticipating to generate nearly 400 billion rupees ($1.42 billion) and stave off any losses. These financial adjustments coincide with Pakistan's strict enforcement of austerity measures, which include escalated electricity and gas tariffs, substantial cutbacks in government spending, and expedited privatization initiatives, all in accordance with the loan agreement. The Federal Board of Revenue (FBR) has exceeded its tax collection target, demonstrating Pakistan's fiscal responsibility. The IMF review will focus on Pakistan's fiscal deficit and benchmarks set for the July-agreed $3 billion SBA during their assessment. A positive evaluation from the IMF could lead to the release of a second $700 million tranche. These financial maneuvers occur as Pakistan prepares for a general election in January, operating under an exchange rate of $1 equivalent to 281 Pakistani rupees. https://www.investing.com/news/commodities-news/pakistan-hikes-gas-prices-ahead-of-imfs-3-billion-loan-review-93CH-3215423

2023-10-31 11:55

Copyrighted Image by: Reuters. The Bank of Japan (BOJ) has made a dovish adjustment to its Yield Curve Control (YCC) policy, leading to a weakened Japanese yen (JPY) against G-10 and Asian currencies. The adjustment has increased flexibility by placing a 1.0% upper end on the 10-year Japan Government Bonds (JGB) yield range as a reference rather than a cap. This move comes amid Wall Street's overnight gains and has sparked risk-on sentiment in the market. Market participants are now closely watching the BOJ's next decision, which could see the 10-year JGB yield rise above 1%. RBC Capital Markets predicts this potential policy adjustment is already reflected in market responses. Furthermore, they question if another such adjustment could influence the USD/JPY rate, given the significant disparity between U.S. and Japanese rates. Following these developments, the USD/JPY and EUR/JPY rates rose by 0.2% to 149.40 and 158.51, respectively. The BOJ's decision to leave the Interest Rate on Excess Reserves (IOER) unchanged but remove the 1.0% ceiling on YCC has led analysts to predict a possible formal removal of the YCC mechanism due to uncertainty about BOJ's intervention in the JGB market. https://www.investing.com/news/forex-news/jpy-weakens-as-bank-of-japan-adjusts-yield-curve-control-policy-93CH-3215325

2023-10-31 11:34

Copyrighted Image by: Reuters. The Bitcoin community is keeping a close eye on the forthcoming Securities and Exchange Commission (SEC) closed-door meeting scheduled for November 2, as it could hint at the potential approval of a spot Bitcoin Exchange-Traded Fund (ETF). This speculation has been fueled by the SEC's recent decision not to challenge a court ruling that favored Grayscale's bid to convert its Bitcoin Trust into an ETF. Scott Johnsson, an attorney from Davis Polk, drew attention to this meeting via a tweet on social media platform X (formerly known as Twitter), which will discuss administrative proceedings and litigation claims. This anticipation comes in the wake of ProShares Bitcoin Strategy ETF (BITO), becoming the fastest ETF to reach the $1 billion mark. Before BITO's launch, a leak from an SEC meeting reported by Bloomberg suggested readiness to allow the first US Bitcoin futures ETF under mutual fund rules. Johnsson proposed that a similar leak might occur concerning Grayscale's spot Bitcoin ETF. Grayscale's unopposed aim to convert its GBTC into a spot Bitcoin ETF has captured significant attention. A pivotal question is whether the SEC will approve only Grayscale's application or extend its approval to other applicants simultaneously. A host of prominent applicants, including BlackRock, Fidelity, Ark Invest, VanEck, and Valkyrie Funds, have submitted amendments to their applications. James Seyffart recently tweeted about Valkyrie Funds joining this amendment movement. Johnsson highlighted June 15, 2023 - when Blackrock (NYSE:BLK) lodged its spot ETF application - as a significant date on SEC chair Gary Gensler’s busy calendar. Despite these promising developments, there are speculations about a possible unexpected rejection of spot Bitcoin ETF applications by Gensler, humorously referred to as a "Gensler semi-comedic rug-pull". While Johnsson acknowledges this possibility, he finds it hard to envisage. https://www.investing.com/news/cryptocurrency-news/bitcoin-etf-approval-speculation-heightened-ahead-of-sec-meeting-93CH-3215299