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Weekend Roundup: Bitcoin Extends Tumble

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Bitcoin and other cryptocurrencies extended their decline as hawkish commentary by the US Federal Reserve continue to sap risk appetites.

BTC 24-Hour Chart. Data:CoinMarketCap

At the time of writing, Bitcoin (BTC) is trading at US$42,013.55 (-2.07%) while Ethereum (ETH) is trading at US$3,167.06 (-3.02%).

Major altcoins such as the SoLunAvax trio have also been trading in red over the past 24 hours, with Terra (LUNA) a notable loser (-8.57%). The ninth largest cryptocurrency has come under fire in recent months, with several crypto influencers voicing concerns over UST’s (Terra’s USD-backed stablecoin) perceived lack of decentralisation and its over reliance on the Anchor protocol.

On the same note, Singapore-based non-profit organisation Luna Foundation Guard (LFG) has added 5,040 BTC to its stash, building on its promise to buy US$10 billion in BTC build a reserve for UST.

“We’re big believers of Bitcoin, so we’re just going to continue to buy whenever there’s an opportunity to,” Terraform Labs founder Do Kwon said. “Overtime, Terra is going to be backed by a basket of the top Layer 1 assets.”

On Friday, the organisation announced a partnership with the Avalanche Foundation said that it would be purchasing US$100 million worth of avalanche (AVAX) to diversify the reserves held for UST’s Decentralised Forex Reserve.

Cathie Wood bullish on DeFi

Ark Invest CEO Cathie Wood has reiterated her bullish stance on crypto and DeFi (decentralised finance).

In an interview with CNBC, Wood said the traditional finance industry could come under threat from DeFi applications, given the increasing amount of interest in the space.

“Banks have a big problem,” Wood said from the Bitcoin 2022 conference in Miami. “They’re losing talent to crypto, so they’re having to raise wages to attract talent, and they’re losing business to DeFi. Lending and saving – a lot of it is taking place in DeFi right now.”

Binance’s In-Principal Approval in Abu Dhabi

Meanwhile, Binance said that it has received provisional approval to operate as a broker-dealer in virtual assets in Abu Dhabi. This is the exchange’s third regulatory approval in the Middle East after Dubai and Bahrain.

“Binance has been actively engaging global regulators, such as ADGM (Abu Dhabi Global Market), as part of its ongoing commitment to uphold global standards and collectively foster the developments and sustainable growth of the crypto ecosystem,” said Richard Teng, the company’s head for the Middle East and North Africa.

Last month, Binance CEO and co-founder Changpeng ‘CZ’ Zhao told Bloomberg that Dubai will be his base for the “foreseeable future” and that by “any common interpretation” it’s the exchange’s headquarters.