Data shows that Bitcoin transactions have grown in number recently, but exchange deposit and withdrawal transfers have only moved sideways.
Bitcoin Transaction Count Has Observed A Sharp Increase Recently
According to data from the on-chain analytics firm Glassnode, the BTC blockchain activity has significantly gone up recently. The indicator of interest here is the “transaction count,” which measures the total number of Bitcoin transactions taking place on the network right now.
When the value of this metric is high, it means the chain is seeing a high amount of usage from the holders. This kind of trend suggests traders are active in the market right now.
On the other hand, low values of the indicator suggest the BTC blockchain is seeing low activity currently. Such a trend can be a sign that the general interest in the asset is low among investors at the moment.
Now, here is a chart that shows the trend in the Bitcoin transaction count over the last few years:
The value of the metric seems to have seen a sharp rise in recent weeks | Source: Glassnode on Twitter
As shown in the above graph, the Bitcoin transaction count had gone stale after the plunge where the cryptocurrency had descended from the bull rally top. This trend remained true throughout the bear market until the rally started this year.
With this fresh price surge, the indicator has shot up and has hit levels that were only last seen during the bull run in the first half of 2021. This means that the number of transfers taking place on the chain right now is the highest in about two years.
The chart also shows data for two other indicators, the Bitcoin exchange deposits and exchange withdrawals. As the names of these metrics already imply, they tell us about the total amount of transfers going in and out of exchanges, respectively.
These metrics are not to be confused with the inflow and outflow indicators, as the latter ones measure the total number of coins flowing into and out of exchanges, rather than the transaction count.
From the graph, it’s visible that despite the spike in the Bitcoin transaction count, these two metrics have continued to move sideways. This means that the increase in transfers has almost entirely come from the peer-to-peer (P2P) side and not exchanges.
This is unlike what was seen during the April 2019 rally and 2021 bull run, where the exchange-related transactions also saw at least some rise along with the price increase.
Since the Ordinals protocol, a method of inscribing data directly into the Bitcoin blockchain (basically the BTC version NFTs), has also seen emergence during the recent months, part of the increase in the transaction count is likely driven by such transfers made using this protocol.
BTC Price
At the time of writing, Bitcoin is trading around $28,200, up 14% in the last week.
Bitcoin is trading above the $28k level for the first time since June 2022.
Coinjournal’s Dan Ashmore believes that the interest rate forecasts are responsible for the ongoing rally by Bitcoin and other cryptocurrencies.
Many in the market still consider the recent banking crisis as the reason why investors are entering the crypto market.
Interest rate forecasts behind Bitcoin’s rally
Bitcoin, the world’s largest cryptocurrency by market cap, has been performing excellently over the past few weeks. At press time, the price of Bitcoin stands at $28,411, up by 13% over the last seven days.
Many in the crypto space attribute the ongoing crypto rally to the collapse of a few banks, including Signature Bank, Silvergate Bank, and Silicon Valley Bank.
However, during an interview with CNBC, Coinjournal’s Dan Ashmore pointed out that Bitcoin’s rally has to do with the interest rate forecasts rather than the recent banking crisis.
Lot of chatter about what is driving this massive Bitcoin rally.
Spoke with @CNBC last night about whether it’s stemming from interest rate forecasts or if investors are betting on Bitcoin as an alternative to the banking turmoil👇 pic.twitter.com/o45zOOPiiw
“It is a reaction to the complete flip in interest rate forecasts in the wider economy. If you go back to before the Silicon Valley Bank collapse, there was an 83% probability that the interest rate would be increased by 100 basis points by the summer. Today, when we look at that, it is completely the opposite, and there is almost 100% of rate cuts.”
He added that the crypto market is reacting to the probability that the Fed’s recent interest rate hikes are coming to an end.
Interest rate cut is music to crypto investors
With Bitcoin trading at $28k per coin, investors would be optimistic that prices could soar higher over the coming days and weeks.
According to Ashmore, cryptocurrencies trade as risk-on assets, and an interest rate cut is music to the ears of crypto investors.
Ashmore also discussed the correlation between cryptocurrencies and tech stocks. According to the Coinjournal analyst, while many expect crypto to be an independent hedge, the assets still very much correlate with the stock market, especially tech stocks. He concluded that
“The NASDAQ index rises, Bitcoin’s price also rises. The NASDAQ falls, and Bitcoin also falls a little more. The last couple of weeks have been interesting as Bitcoin has outperformed the NASDAQ. But it is a reflection of the fact that Bitcoin is trading in correlation with the interest rate forecasts.”
Authorities in the U.S. have announced charges against a former Onecoin executive for her alleged role in the notorious crypto pyramid scheme. Bulgarian national Irina Dilkinska, who was extradited on Monday, may face up to four decades in prison if found guilty on counts of fraud and money laundering.
Bulgarian Woman Handed Over to US to Face Charges Related to Onecoin
Judicial and law enforcement officials in the U.S. have pressed charges against a 41-year-old woman in connection with her participation in Onecoin, one of the largest scams in crypto history. Irina Dilkinska was extradited from Bulgaria, where the massive crypto Ponzi scheme was based.
Established in 2014, Onecoin offered investors a fake cryptocurrency by the same name, branded as ‘the Bitcoin killer’ at a point, through a global multi-level-marketing network. According to Onecoin’s own materials, more than 3 million people invested over $4 billion in the purported crypto by late 2016.
Dilkinska was the supposed head of legal and compliance at Onecoin, according to an announcement published by the U.S. Justice Department on Tuesday. Authorities claim that in reality the woman accomplished the exact opposite of her job title.
She is accused of enabling Onecoin to launder millions of U.S. dollars through shell firms. “As alleged in the charges unsealed today, Dilkinska helped her co-conspirator, Mark Scott, launder approximately $400 million in Onecoin proceeds,” FBI Assistant Director Michael J. Driscoll noted.
Companies created by the Bulgarian national were also used to hold property on behalf of Onecoin founder and mastermind Ruja Ignatova, a Bulgarian-born German citizen. The latter was last seen boarding an Athens-bound flight in Sofia, on Oct. 25, 2017.
Pyramid’s Founder ‘Cryptoqueen’ Ruja Ignatova Still Wanted
Dubbed ‘the missing Cryptoqueen,’ Ignatova disappeared less than two weeks after she was charged with fraud and money laundering in the U.S. District Court for the Southern District of New York. She is still wanted by Interpol, Europol, and the U.S. Federal Bureau of Investigation (FBI), with a recent Bulgarian media report suggesting she might have been murdered in 2018.
Irina Dilkinska has been charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. Each of them carries a maximum potential sentence of 20 years in prison.
She is accused of burning incriminating documents after Scott’s arrest in 2018, about which she texted Ruja’s brother, Konstantin. Ignatov was detained in Los Angeles in 2019, pleaded guilty to Onecoin-related charges, and sought witness protection in the United States.
Another Onecoin co-founder, Swedish and British national Karl Sebastian Greenwood, pleaded guilty in December, 2022. Last month, a report revealed that Ruja’s ex-boyfriend, Gilbert Armenta, has been sentenced to five years in prison for his role in laundering proceeds from the crypto Pyramid.
Do you expect more people to face charges related to the Onecoin case? Tell us in the comments section below.
Lubomir Tassev
Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
CFTC Commissioner Summer Mersigner discusses the inevitability of innovation and clears up the agency’s role in bitcoin regulation.
In light of recent events, many in the Bitcoin community are looking for regulatory clarity now more than ever. Questions such as “who should regulate Bitcoin?” and “will the U.S. allow Bitcoin innovation or pursue a central bank digital currency (CBDC)?” are at the top of the list.
To learn more about the regulatory landscape for Bitcoin-focused businesses, I sat down with Summer Mersinger, the commissioner for the Commodity Futures Trading Commission (CFTC), to get her thoughts on these issues and more. To further understand her perspective, we started with a brief background that explored her personal interest in Bitcoin. This is vital to the conversation because before commissioners can contribute meaningful policy to the Bitcoin space, Bitcoin must be understood.
Mersinger has been serving at the CFTC since 2022 after being appointed by President Biden and confirmed by the U.S. Senate. She received her bachelor’s degree from the University of Minnesota and later earned a law degree from the Columbus School of Law in Washington, DC. Since that time, she has spent over 20 years on Capitol Hill in a variety of positions. These range from working as an aide to South Dakota Senator John Thune, to advocating for financial technology organizations as a senior vice president at lobbying firm Smith-Free Group.
When she is off the clock, Mersinger spends time with her husband and four children; two teenage daughters and two elementary-aged sons. She describes herself as a huge animal lover, which stems from being raised on a farm. She said that she was always surrounded by animals, and it’s a habit she continues to this day.
Below are her thoughts regarding a variety of topics surrounding Bitcoin.
How did you first learn about Bitcoin and what specifically drew you to it?
Although I cannot recall the exact timing of when I first learned about Bitcoin, I can say that what drew me to it was the technology involved.
The CFTC, where I serve, regulates trading in derivatives products that are used for price discovery and risk management purposes. The CFTC is a technology-neutral regulator, which means, in practice, we do not view any one technology as better than any other technology. And admittedly, as regulators, we are sometimes skeptical of the new and unknown.
But a big part of our job is to make sure that all existing and emerging technologies can compete on a level playing field. Our governing statute, the Commodity Exchange Act, specifically identifies one of its purposes as being to promote responsible innovation and fair competition. In light of the opportunities that innovative and groundbreaking blockchain technology presents for the derivatives markets we regulate, my focus is on assuring that we at the CFTC take that mission seriously.
Why do you think it is important that Bitcoin is regulated by the CFTC as a commodity?
This is one of my favorite questions to answer because it provides an opportunity to clear up a common misconception.
The CFTC is a market regulator of commodity futures (along with other types of derivatives), not of the commodities themselves. I often use the example of the cattle markets to explain the significance of this distinction. The CFTC has regulatory oversight with respect to cattle futures contracts traded on our registered exchanges to provide price discovery and hedging opportunities regarding cattle in the U.S. We are knowledgeable and well equipped to oversee the cattle futures markets.
However, we are not knowledgeable or well-equipped to oversee cattle as a commodity. Cattle auction houses and livestock stockyards are best left to the experts at the U.S. Department of Agriculture.
Understanding the distinction between the commodity futures markets and the underlying commodity market is critical to understanding the current regulatory environment for digital assets, such as bitcoin. As it stands now, like all other commodities, the CFTC regulates the trading of bitcoin futures contracts. But the CFTC does not regulate bitcoin itself or the bitcoin spot markets, which are akin to the cattle auction houses and livestock stockyards in my cattle example. Unlike in my cattle example, there is currently no federal regulator of bitcoin or bitcoin spot markets.
It is true that the CFTC does currently have enforcement authority to pursue claims of fraud and manipulation in commodity markets. With that authority, our agency does have the ability to bring anti-fraud and anti-manipulation charges in the buying and selling of bitcoin. However, that authority is exercised after the fact. By the time we act, the fraud and/or manipulation has already occurred. I believe that filling the gap in federal oversight of digital asset commodity markets, like bitcoin, is a task best left to the legislative process through Congressional authority.
How do you typically respond to those who are dismissive of Bitcoin?
Whether you embrace or dismiss the utility of Bitcoin, it is hard to argue against the benefits of blockchain technology. These benefits go far beyond cryptocurrencies, and regardless of whether or not you become a Bitcoin adopter, I believe that the underlying technology will have a positive impact on society.
In the derivatives world, we have seen this scenario play out before. For decades, almost all commodity futures trading was done through “open outcry.” That is, traders would literally be yelling (hence the term “open outcry”) and gesturing wildly, and to consummate trades, they would write them down on slips of paper. The pits were hot, loud and chaotic, but this was the only way most CFTC-regulated products were traded.
Today, we have electronic markets. Legislative and regulatory changes a little over 20 years ago allowed electronic markets to develop alongside open outcry markets and compete. At first, the incumbent scheme was dominant, then the two ways of trading coexisted, and finally the more efficient technology gained widespread adoption.
Thus, we simply need to look back at our history to see that we have successfully allowed substantial technological innovations in the past, which over time have made our regulated derivatives markets more efficient. I believe we are nearing a similar inflection point for blockchain technology.
In your opinion, why is it important to close the gender gap in Bitcoin interest and adoption?
We need to close the gender gap everywhere, both in Bitcoin interest and adoption, as well as traditional finance. With a population split roughly 50/50 male to female, every sector of the economy should logically reflect an even split. If it does not, clearly there is an opportunity to do better. Staying on my focus surrounding the underlying blockchain technology, I am very concerned about a gender gap within the science and technology field. There is no reason for this gap to exist and we have to ask ourselves why it does.
Again, with a mostly-evenly split population, lopsided participation by one gender is very likely a symptom of a more serious underlying condition. Looking back once again to the history of “open outcry” in the derivatives markets, it took several decades before the first woman traded futures in the pits during the 1960s. We can, and must, improve this time around.
This is a guest post by Becca Bratcher. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
The Central Bank of Venezuela is lagging when it comes to delivering economic data this year, failing to publish the inflation numbers for the last four months. Venezuelan economists believe this delay might mean that the country is starting to enter a new hyperinflation period, with the government trying to hide it by not offering up the figures.
Central Bank of Venezuela Owes Public Four Months of Economic Data
The Central Bank of Venezuela has not published the economic data corresponding to the last four months, making economists worried about the cause of the delay. The institution still has not issued the inflation figures corresponding to November 2022, December 2022, January 2023, or February 2023, leaving consulting firms blindfolded and unable to make recommendations to their affiliated companies when it comes to economic strategy.
But according to Jesus Casique, a Venezuelan economist, inflation figures are just the tip of the iceberg regarding the missing data. Casique stated that the Central Bank of Venezuela is also hiding the numbers for the balance of payments (foreign currency input and output), Gross Domestic Product (GDP), and gold reserves.
On the possible purpose of this alleged opacity, Casique explained:
It is very possible that the central bank is not publishing inflation figures because the country is entering hyperinflation again.
According to unofficial sources, the Venezuelan inflation rate for 2022 reached 234%, the highest in all of Latam.
Recurring Behavior
One of the duties of the Central Bank of Venezuela, according to the law that regulates it, is to “collect, produce, and publish the main economical, monetary, financial, exchange, price, and balance of payment statistics.” However, this is not the first time that the central bank has lagged in its duties regarding informing about the economic performance of the government.
The bank had a hiatus of three years, between 2016 and 2019, in which did not offer any GDP or CPI figures. It was also during these years that the country entered into hyperinflation, with later official figures acknowledging a 130,060% inflation rate just in 2018.
Naudy Pereira, a local economist, believes issuing these figures is very important for companies and individuals alike. She declared:
These figures would indicate to an investor whether or not there are possibilities of continuing to invest. Consumers are interested in knowing the rate of inflation and the variation in prices because their family budget planning depends on that.
What do you think about the delay of the Central Bank of Venezuela in publishing economic data? Tell us in the comments section below.
Sergio Goschenko
Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Bitzlato users can now partially withdraw their bitcoin funds from the dismantled cryptocurrency exchange, according to a media report. The Russia-linked trading platform was targeted by Western law enforcement and had its France-based server infrastructure seized in January.
Bitzlato Customers Allowed to Withdraw Up to 50% of Their Bitcoin at the Exchange
Users of Bitzlato’s web portal and app can now withdraw a portion of the funds they had with the crypto exchange when it was busted by French and U.S. authorities in mid-January. Since Monday, its clients have access to half of their bitcoin (BTC) balances.
Account holders can withdraw up to 50% of their bitcoins, Bitzlato representatives told the Russian-language crypto news outlet Forklog. The minimum withdrawal amount is 0.001 BTC and the commission is 0.0003 BTC, the report detailed.
Withdrawals can be ordered through a Telegram bot and users need to provide the email address of their Bitzlato account, the article explained. Upon verification, a code necessary to complete the transfer is generated and sent to that email inbox.
The Hong Kong-registered exchange was dismantled based on allegations that it processed more than $700 million dollars’ worth of illicit funds, as the U.S. Justice Department announced, or over $1 billion, according to Europol.
The dirty money was allegedly related to various criminal activities and actors, including the former largest darknet market Hydra, which was shut down by Germany in April, and Russia’s biggest crypto pyramid scheme, Finiko.
Bitzlato co-founder and majority owner Anatoly Legkodymov, a Russian national residing in China, was arrested in Miami. Four more members of Bitzlato’s team were detained in Europe while another co-founder, Anton Shkurenko, was questioned and released in Russia.
In an interview on Youtube, Shkurenko had announced plans to relocate the exchange to Russia and relaunch operations from there. He also promised to partially restore withdrawals despite French law enforcement having seized the platform’s hot wallet.
According to a survey conducted among almost 3,300 respondents in Bitzlato’s news channel on Telegram, 30% of users are withdrawing funds without issues, 3% experienced short-term asset freezes, the money of another 4% is still blocked, 12% are yet to decide how to withdraw, and more than half of the polled intend to wait for the platform’s peer-to-peer market to reopen.
What are your thoughts on the Bitzlato case? Share them in the comments section below.
Lubomir Tassev
Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
