LIBRA CONCERNS: Federal Reserve chairman Jerome Powell said Wednesday that Facebook's cryptocurrency project "cannot go forward" if the company does not address a number of questions surrounding money laundering, data privacy and consumer protection, while testifying in front of the House Financial Services Committee. The Fed, otherwise known as the U.S. central bank, has formed a working group to look into the cryptocurrency project, and is communicating with other central banks around the world, he said at other points during the hearing. His remarks come a day after Facebook responded to an inquiry by the Senate Banking Committee, with blockchain lead David Marcus detailing how he believes Facebook will avoid violating user privacy. Full stories here and here
DIFFICULTY HIKE: Bitcoin mining difficulty – a measure of how hard it is to compete for mining rewards on the world’s first blockchain network – has posted its largest two-week increase in 12 months. According to BTC.com data, mining difficulty reached 9.06 trillion at block height 584,640 at 9:17 UTC on July 9, surpassing the previous record of 7.93 trillion by 14.23 percent. This was the strongest growth in any two-week period since August 2018, a sign that competition among miners is not only intensifying but doing so at an accelerated rate. Full story
GOX OFFER: Creditors of Mt Gox waiting to get their bitcoin back from the long-defunct exchange can now get pennies on the dollar by selling their claims to Fortress Investment Group. In a letter sent to creditors, Michael Hourigan, a managing director at the New York-based private equity firm, said he is purchasing these claims for a bitcoin investment vehicle the firm operates and is “generally able to offer $900 per BTC claim.” Mt Gox collapsed in 2014 after some 850,000 bitcoins disappeared from the exchange’s servers. While the exchange entered bankruptcy at the time, its status switched to civil rehabilitation last year. Full story
BITFINEX IN NY: The New York Attorney General’s Office (NYAG) has submitted new evidence in its aim to prove that crypto exchange Bitfinex and Tether had served New York customers longer than they claimed. The NYAG said in new documents filed with the New York Supreme Court: “Even a cursory examination of the facts gathered to date in the OAG’ s investigation shows that Respondents have extensive and consistent contacts to New York concerning the matters under investigation.” The filings come with various exhibits to showcase Bitfinex’s and Tether’s interactions with New York residents over a period that was longer than the two previously claimed. Full story
EXCHANGE CLOSURE: Polish cryptocurrency exchange Bitmarket has just shut down without warning. According to a brief message posted late on July 8 on its website, Bitmarket – said to have been Poland’s second-largest crypto exchange – stated: “We regret to inform you that due to the loss of liquidity, [from] 08/07/2019, Bitmarket.pl/net was forced to cease its operations. We will inform you about further steps.” While it’s not clear exactly what caused the “loss of liquidity,” a Reddit post suggested that the exchange had been exhibiting odd behavior in the weeks prior to the closure. Full story
ANGRY INVESTORS: Bitcoin Wallet, a lucrative South African “investment scheme,” used to attract hundreds of investors a day, many of whom apparently clamored at the company’s doors to invest. Now, the company’s shuttered office is attracting hundreds of protestors demanding their cash back, according to Ladysmith Gazette. As of July 4, the enterprise – which regulators and media suspected operated as a Ponzi scheme – shut down. The firm enticed investors with promises of 100-percent returns in just over two weeks by reinvesting customer deposits in cryptocurrencies. Now the investors want to know where their money went. Full story
LOOKING UP: Bitcoin's ascent continues with prices currently trading above $13,000. The higher lows on technical charts indicate strong dip demand, while the recent rise in bitcoin’s dominance rate to 27-month highs indicates strengthening investor confidence in the rally. BTC, therefore, appears on track to set fresh year-to-date highs above $13,880. Full story
GOLD TWIN? Bitcoin is often dubbed “digital gold,” but now the term has a more concrete basis. As reported by The Next Web, gold and bitcoin have traded almost identically over the last 30 days. Research firm Delphi Digital told the news source: “Bitcoin continues to separate itself from the pack given the strength and spread of its ‘digital gold‘ narrative.” While bitcoin is yet to recover to levels above its recent high near $14,000, macro factors seem to be aligning in bitcoin’s favor, the firm said.
