Bitcoin slid under the $27,000 level early Wednesday, leading a broad decline in major cryptocurrencies as markets reacted to poor U.K. inflation figures. The core Consumer Price Index (CPI) for the U.K. came in at 6.8% in April. That was the fastest pace of core inflation since 1992, and sizably ahead of March’s 6.2% pace as well as the 6.2% consensus forecast. It’s the third consecutive month that U.K. inflation has come in hotter than expected and the news is likely to add to pressure on the Bank of England to keep raising interest rates in the coming months.
Binance is firing back at a Reuters special report from Tuesday that said the crypto exchange commingled customer funds with company revenue. The report, citing unnamed “former insiders,” said the funds in question “ran into billions of dollars” and that “commingling happened almost daily” in accounts the exchange had at collapsed U.S. lender Silvergate Bank. Reuters noted that it did not find evidence that clients’ funds were lost or taken. Binance took major exception with the Reuters story, with the exchange’s Chief Communications Officer Patrick Hillmann calling it “weak” and full of “conspiracy theories.” Though not outright denying the allegations in the report, Hillman said the Reuters reporter was “desperate … to publish a negative story.”
Japan is set to implement stricter anti-money laundering measures, including the so-called “travel rule” of the Financial Action Task Force (FATF) from June 1, according to local news outlet Kyodo News. The decision was made by Japan’s cabinet on Tuesday after the nation’s anti-money laundering steps were deemed insufficient by global financial crimes watchdog FATF, the report said. In 2019, the FATF recommended the travel rule to combat money laundering and terrorist financing using crypto. By June 2022, the FATF was urging member nations to introduce travel rule legislation “as soon as possible.”
Market Insight: HODLing Has Never Been More Popular
Investors are hanging onto their bitcoin (BTC) longer than ever – HODLing in industry parlance – according to data from Glassnode.
The proportion of BTC that’s been held for at least a year has climbed to a record 68%, Glassnode data shows, while 55% of bitcoin has been held for at least two years and 40% for three years or more.
Many analysts consider it bullish when BTC sits dormant on the idea that investors are choosing to hold even during sizable market selloffs. The prevalence of buy-and-hold in bitcoin contrasts with the long-term shift in U.S. stocks, a market where investors today now hold assets for dramatically less time than did previous generations.
Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.
