Crypto in 2024
Trump Crypto Area: Strategic U-Turn
Former U.S. president Donald Trump revealed via a financial disclosure on Saturday that he holds between $5 million and almost $50 million in cryptocurrency and has made over $7 million in revenue from non-fungible tokens (NFTs). Hearing Sean Humbulion talk about the importance of digital assets is a surprising change from his previous stance on cryptocurrencies, and should play well if he runs for president again in 2024.
The positioning of the Trump family in crypto activities speaks to a broadening awareness of its potential impact, both financially and politically. But, a larger implication of this would be other famous figures adopting cryptocurrencies in the future, which will bring more credibility to the cryptocurrency market.
On Russia’s Cryptocurrency Exchange Plan In Face Of Sanctions
Facing tightened sanctions from the US and other international powers, the Kremlin is said to be mulling new ways to prop up itself amid a weakening economy. This is a strategic move in response to the sanctions-induced financial isolation of Western countries and also intended as an effort from Russian state-owned entities for end-to-end control over cryptocurrency trading within Russia.
Russia is looking to create these domestic exchanges in order for them to avoid international financial sanctions, ensuring that they can still operate economically. The intervention would have the potential to pivot global crypto dynamics, with this becoming one of a plethora of other regional net hubs, and position Russia squarely within its own strategic weight class in the decentralized financial environment, threatening Western oligopolistic dominance.
Bitfinex and Komainu: Revolutionizing Crypto Trading and Custody
In June, Bitfinex Announced The Establishment of a Strategic Compliance Partnership with Komainu to Offer Safe and Reliable Custody Solutions for LLP Holders This integration is especially important for institutional investors, who need a transparent source of truth when transferring digital assets.
Using Bitfinex’s trading platform alongside Komainu’s custodial services, the partnership is said to lay “the foundation for financial institutions looking into cryptocurrency.” The same can be said of digital assets, which will undoubtedly draw a greater level of interest from institutional investors seeking broad market diversity in their bid to enhance liquidity and price stability.
Bitcoin Mining Challenges: Profitability Concerns Emerge
Two years after the previous Bitcoin halving, miners did not see boosts to profitability from a slumping BTC price of 6% in July 2024, while network hashrate remained constant. These headwinds prompted Jefferies to lower price targets for Marathon Digital Holdings (to $17 from $22) and Argo Blockchain. While Marathon Digital still mined 17% more Bitcoin, U.S. miners now owned a larger chunk of the total network’s output: exactly 21.1%.
This led to the four Antminers and one Avalon being among just five mining rigs in profit out of a total of 27 models, as all others were operating at loss due to high operational costs. August is looking bad, and BTC prices will decline some more.
The dynamics of what is happening in the crypto industry at present have nearly immediate after-effects and may even have a huge impact on the international financing landscape as we know it today. From Trump’s entanglement with digital assets, to Russia fortifying its position by lobbying for home-based crypto exchanges, and the problems Bitcoin miners are facing; it shows an evolving interactive industry.
These trends clearly indicate the increasing relevance of cryptocurrency in an increasingly interconnected world, which is why it is vital to understand how crypto can influence this great economy along with its potential rewards or risks. The market will, hopefully become more mature as it applies to its different stakeholders, who need to keep themselves adaptable and informed while moving ahead on this digital frontier.
