AI surpasses Bitcoin mining in energy consumption
Recent research reveals that the energy consumed by artificial intelligence (AI) systems may be surpassing that used in Bitcoin mining. With the growing adoption of generative AI, it’s estimated that AI will consume 169 TWh in 2024 and 240 TWh by 2027, compared to 160 TWh for Bitcoin mining. Additionally, AI data centers require significant water for cooling, with five to 50 ChatGPT queries using about 500 ml of water. In comparison, Bitcoin mining in the U.S. consumes between 93 and 120 gigaliters annually. AI also offers much higher profit margins, ranging from $3 to $5 per kWh, compared to Bitcoin mining’s $0.17 to $0.20. With AI generating up to 25 times more revenue per kWh than Bitcoin, miners are considering transitioning to AI or adding AI processing to their data centers. The revenue gap and financial capabilities of AI companies are intensifying this competition for electricity and equipment.
Goldman Sachs invests $418 million in Bitcoin ETFs
Goldman Sachs (NYSE:GS) has revealed $418 million investments in Bitcoin ETFs, signaling increasing institutional interest. Among its top holdings are BlackRock’s iShares Bitcoin Trust (NASDAQ:IBIT) with nearly $240 million and Fidelity Bitcoin ETF (AMEX:FBTC) with $79.5 million. The bank, previously skeptical about Bitcoin, now sees ETFs as a way to gain exposure to the asset without directly owning it.
Bitcoin and Ethereum ETF inflows and outflows on August 13
On August 13, Bitcoin ETFs recorded a net inflow of $39 million, led by BlackRock’s ETF (NASDAQ:IBIT) with $34.6 million, followed by Fidelity’s ETF (AMEX:FBTC) with $22.6 million and Bitwise’s ETF (AMEX:BITB) with $16.5 million. However, Grayscale’s ETFs (AMEX:GBTC) and Ark’s ETFs (AMEX:ARKB) saw outflows of $28.6 million and $6.1 million, respectively.
Ethereum ETFs had an inflow of $24.3 million, with BlackRock’s ETF (NASDAQ:ETHA) seeing $49.1 million in inflows. Fidelity (AMEX:FETH) and Invesco saw inflows of $5.4 million and $0.8 million, respectively. Grayscale’s ETF (AMEX:ETHE) saw outflows of $31 million.
Bitcoin faces correction after lower-than-expected CPI data
On August 14, Bitcoin (COIN:BTCUSD) hit a high of $61,827.20 following the release of U.S. CPI data but quickly dropped, trading down over 2% in the last 24 hours to around $59,250. Despite below-expectation data that usually favors risk assets, BTC couldn’t sustain the gains. U.S. CPI showed an annualized inflation rate of 2.9%, the lowest since 2021. Zach Pandl of Grayscale stated that this could lead the Federal Reserve to cut interest rates, benefiting Bitcoin and potentially enabling new all-time highs.
However, some traders warn of a possible further drop to $55,000 before considering new buys. Withdrawals of over $1 billion in USDT from exchanges indicate potential risk aversion among investors. Historically, large stablecoin withdrawals have preceded BTC declines. Additionally, data shows that August and September are typically weak months for Bitcoin.
Norwegian Sovereign Fund increases indirect exposure to Bitcoin
According to K33 Research Vetle Lunde, the Norwegian Government Pension Fund, the world’s largest sovereign wealth fund, increased its indirect exposure to Bitcoin by 62% in the first half of 2024, reaching 2,446 BTC.
Hut 8 stock rises after HC Wainwright upgrades rating
Shares of Hut 8 (NASDAQ:HUT) are up 2.7% on Wednesday after broker HC Wainwright upgraded its rating from “sell” to “buy” and raised the price target from $7.50 to $13.50. The revision is attributed to reduced electricity costs in Texas, investments in equipment, and potential growth with AI and HPC clients.
Exodus and Blockchain.com join forces to enhance cryptocurrency access
Exodus Movement, Inc. has partnered with Blockchain.com to integrate the Passkeys Wallet into Blockchain.com’s fiat onramp services. This will allow users to buy cryptocurrencies directly within the Exodus interface, facilitating transactions in over 50 countries. The collaboration includes advanced security features like biometric login and Multi-Party Computation (MPC), promising a more accessible and secure cryptocurrency experience.
Fantom faces potential challenges after 17% surge
Fantom (COIN:FTMUSD) rose 17.3% last week, reaching $0.3755. However, momentum indicators like RSI and MFI are low, suggesting potential difficulty in maintaining the gains. The Chaikin Money Flow also indicates market weakness. Low demand and negative divergence with the number of daily active addresses suggest an imminent correction, with the price potentially dropping to $0.17.
Open Network Ventures launches $40 million fund for TON platform projects and partners with Pyth Network
Open Network Ventures, a new venture capital firm formed by former members of the TON Foundation, has launched a $40 million fund to support early-stage cryptocurrency projects on the TON platform. The fund will focus on applications utilizing Telegram and will offer financial and strategic support to selected projects, leveraging Telegram’s infrastructure and global network to foster innovation. Additionally, Open Network has partnered with Pyth Network to integrate real-time, high-fidelity price data into its decentralized applications. This collaboration aims to strengthen DeFi projects on TON with accurate and rapid information, improving the performance and security of applications. The partnership promises greater engagement with the TON community. TON Coin (COIN:TONCOINUSD) is up 8.8% in the last 24 hours.
Swell launches swBTC for liquid Bitcoin restaking
Ethereum staking project Swell has launched “swBTC,” a liquid restaking token that generates yield for Bitcoin holders. Utilizing wBTC (COIN:WBTCUSD), a 1:1 Bitcoin-backed token on the Ethereum network, swBTC will allow users to earn yield starting in mid-September. The initiative aims to leverage Bitcoin’s value while maximizing yields across different blockchain ecosystems.
Crypto.com returns as UEFA Champions League sponsor
Crypto.com is resuming its push into sports sponsorship after a hiatus. The company has resumed sponsorship of the UEFA Champions League nearly two years after abandoning a similar deal. The new sponsorship will be announced during the UEFA Super Cup between Real Madrid and Atalanta. Financial details and the duration of the contract have not been disclosed. Previously, Crypto.com backed out of a $495 million deal due to regulatory issues.
WazirX ends agreement with Liminal after $235 million hack
Indian exchange WazirX (COIN:WRXUSD) has terminated its custody contract with Liminal and is moving assets to new multi-signature wallets following a $235 million hack in July. WazirX stated that this move is crucial to ensure the security of remaining funds, despite mutual allegations over the source of the attack. The company is also restoring balances and collaborating with experts to resolve the incident.
dYdX introduces permissionless listing and new MegaVault
dYdX (COIN:DYDXUSD) has launched updates to its chain, including a new feature that allows permissionless token listings, making it easier to add new markets. Additionally, it introduced MegaVault, a liquidity pool that will ensure market liquidity and allow users to earn yields on deposits. These innovations promise to increase platform efficiency and liquidity.
Coinbase plans to launch tokenized bitcoin product cbBTC
Coinbase (NASDAQ:COIN) announced on X a possible launch of cbBTC, a tokenized bitcoin product similar to the company’s cbETH. This new product will allow bitcoin to be used on Ethereum and Layer 2 networks, serving as a liquidity source. cbBTC will compete with BitGo’s WBTC, currently the largest tokenized bitcoin. Additional details have yet to be disclosed, but the launch seems imminent.
Bitget appoints Hon Ng as chief legal officer
Cryptocurrency exchange Bitget has hired Hon Ng as its new Chief Legal Officer. With 20 years of experience, Ng will oversee the company’s global regulatory compliance. Previously at Binance, he is known for his work in compliance and licensing. Ng will help Bitget navigate the rapidly evolving regulatory landscape and expand the company’s presence in the cryptocurrency and Web3 sectors.
MetaMask launches blockchain-based debit card in EU and UK
MetaMask is launching a blockchain-based debit card in collaboration with Mastercard and Baanx. Initially available as a digital pilot for select users in the European Union and the United Kingdom, the card will enable purchases directly with cryptocurrencies stored in the MetaMask wallet. MetaMask plans to expand distribution and explore launches in other regions in the future.
Brazil may launch first Solana ETF before other countries
Brazil is poised to become the first country to list a spot Solana ETF (COIN:SOLUSD), with approval from the Comissão de Valores Mobiliários (CVM) on August 7. The ETF awaits final approval from B3. This innovation could spark global interest, especially in the U.S., where approval of a Solana ETF remains uncertain. The success of this fund in Brazil could encourage other nations to explore similar ETFs, highlighting Brazil’s leadership in cryptocurrencies.
Hong Kong launches AI sandbox for finance
The Hong Kong Monetary Authority (HKMA) has launched a generative artificial intelligence (GenA.I.) sandbox in collaboration with Cyberport. The new environment will allow AI applications in finance, such as risk management and customer service, to be tested, aiming to facilitate the adoption of generative AI and provide regulatory feedback, promoting innovation in the financial sector.
Circle reveals interest from Harris campaign in cryptocurrency policies
Circle CEO Jeremy Allaire stated that representatives from Kamala Harris’s campaign are exploring cryptocurrency policies for the 2024 elections. In an interview, Allaire highlighted that crypto is a “purple” issue, with bipartisan interest. He mentioned a meeting with White House and Harris campaign officials to discuss the sector. Harris has yet to present a detailed economic platform, while Donald Trump has already included cryptocurrency in his agenda.
Bitcoin donations to RFK Jr. are low, but he continues to support cryptocurrency
Robert F. Kennedy Jr. has raised only $61,000 in Bitcoin donations since 2023, according to Breadcrumbs data. This amount is small compared to the campaign’s total $100 million. Kennedy’s campaign uses complex tracking methods, such as multiple addresses and the Lightning Network, making transparency difficult. Despite this, Kennedy is a strong Bitcoin advocate (COIN:BTCUSD) and promises favorable cryptocurrency policies.
Sahara AI raises $43 million to revolutionize collaborative AI economy
Sahara AI secured $43 million in funding to create a decentralized platform that combines artificial intelligence and blockchain. With support from investors like Pantera Capital and Binance Labs, the startup aims to ensure a fair collaborative economy, offering rewards and transparency in AI models and infrastructure contributions. The promised platform is expected to launch its testnet and mainnet soon.