A chart shows that Bitcoin has fluctuated much more than the price of the US dollar since January 2021. Long-term Bitcoin holders are suffering their heaviest losses since 2018 but may have to wait until finding some relief.
The US Federal Reserve (Fed) recently published a post titled Buying Eggs with Bitcoin: A Look at Currency-Related Price Volatility. They explained the fluctuation in the cost of eggs in Bitcoin (BTC) and US dollars over the last 14 months.
A chart in the report shows the monthly price of eggs in US dollars since January 2021. It indicates that prices fluctuated between USD 1.47 and USD 2.52 over the 14 months.
Another graph shows how Bitcoin performed over that period, noting that it fluctuated much more than the US dollar.
However, they do not specify whether the price of eggs rose or the US dollar devalued due to the trend.
A Cybersecurity Company Converts its Balance Sheet into BTC
Octagon Networks, a global cybersecurity networking company, recently announced that it had converted its liquid assets and entire balance sheet to Bitcoin (BTC). The group said they would also accept payments with the cryptocurrency for their services, giving their customers a 50% discount.
In that way, they become the first cybersecurity company to have its reserves in Bitcoin. They stated they would receive the crypto asset and offer a discount to encourage its use.
Binance is Under Investigation Due to ICO-Related Allegations
The US Securities and Exchange Commission (SEC) is investigating whether Binance has violated securities regulations, according to Bloomberg. Those allegations concern when the exchange launched the cryptocurrency BNB in an initial coin offering (ICO) in 2017.
The Binance ICO occurred across many platforms during the so-called ICO frenzy, two days before the Binance cryptocurrency exchange emerged. At least one US resident has claimed his participation in the ICO, which is crucial if the SEC decides to pursue legal action.
The exchange stated that it works closely with the authorities and will comply with all regulatory requirements.
Market-making companies controlled or partially owned by Changpeng Zhao are also under the scrutiny of the SEC. The government agency is particularly investigating those doing business with Binance.US, a US-based subsidiary of Binance.
Losses by Long-Term Bitcoin Holders Reach Lows After Two Years
Long-term Bitcoin holders suffer their heaviest losses since the March 2020 capitulation and the 2018-2019 bearish market. However, they may have to continue waiting until they find some relief from that situation.
The value of the coins deposited on exchanges allows determining the aggregate realized losses of Bitcoin (BTC) long-term holders. In late May, they exceeded 0.006% of market capitalization, according to a report from Glassnode.
However, there may be further losses if patterns from previous bearish markets reoccur.
The flows of BTC on exchanges have accounted for around USD 506 million in value, while ETH has experienced net outflows of USD 357 million. That suggests that the market sentiment toward ETH is much lower than that of BTC.
By Alexander Salazar
