April 17, 2024

Bitcoin Shares Spike as American Inflation Hit 40-Year High; Celsius to Stop Paying Newcomers Interests; and other Developments

Bitcoin shares spike as a recent Consumer Protection Index (CPI) statistics shows that consumers are experiencing the nation’s worst inflation in 41 years. BTC/USD reportedly spiked by $400 as soon as CPI released its data.

However, the recent figures have brought the US Federal Government under intense criticism from different quarters. Experts say that the information showing a CPI year-over-year increase of 8.5% implies double-digit inflation in the US. For many critics, the solution to the ailing economy lies within a digital financial system.

Analysts say the gains in BTC shares tallied with the stock markets’ general reaction to the CPI data. However, based on a more comprehensive overview, the latest price predictions on BTC suggest a dip to $30,000 in June.

Crypto Lending Organization Celsius Moves to Stop Paying Interests on New Deposits

Celsius, a cryptocurrency lending organization, announces that it will no longer offer interests accounts to American accounts by the end of this week. 

The lender also says it would turn fresh deposits from American accounts into custody status. Custody accounts won’t receive interest, except for accredited users.

However, users with existing deposits won’t stop receiving regular interest payments. Celsius is reportedly doing that due to an increasing crackdown on its systems by US regulatory agencies.

For instance, a senior court official reportedly wrote to organizations paying interests of crypto deposits in October 2021. Regulators assert that offering interests make cryptocurrency accounts similar to regular bank accounts. However, such offerings don’t have the required FDIC insurance cover for conventional banks.

Lending firms like Celsius responded that their interest offerings solved the challenge customers experienced with sparse interest rates from traditional banks.

Circle to Raise 400 million USD, Partners with BlackRock

Circle, a digital assets marketplace, announced plans for a 400 million dollar fundraiser on Tuesday. The company says it plans to close its latest funding round towards the end of Q2 2022.

The cryptocurrency payment platform also says that it has aligned with Blackrock, a management corporation, as a Strategic Investor. The partnership, Circle says, would help it extend its tentacles into new capital market apps. Circle expects BlackRock to help manage its USDC cash reserves. 

According to Jeremy, Circle’s CEO, the 400 million dollar funding round would help to foster the company’s following developmental stages. The firm also emphasized that there are currently over 50 billion dollars of its digital currency, the USDC, in the economic space.

Earlier this year, the company announced a market capitalization of 9 billion USD shortly after completing a deal to go public. Reports also say that the company plans to become a full-blown national commercial bank.

New Crypto Prices Hikes after Listing by Robinhood

Robinhood recently bowed to pressure from Shiba Inu enthusiasts and its clients and listed the coin on its cryptocurrency trading platform. The platform also listed other new virtual currencies, including SOL and MATIC.

A CoinMarketCap report showed that Shiba Inu’s coin price increased by about 10% only a few hours after the listing. Other listed currencies such as SOL and MATIC also showed price jumps less than 24 hours after joining Robinhood’s trading platform.

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