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Summary of Past Week Articles June 10, 2022

In 2021, 13% of Canadians polled owned Bitcoin, up from 5% in 2020 — Bank of Canada:

According to new research by the Bank of Canada, the country’s population, which possessed bitcoin (BTC), reached 13% in 2021, up from 5% in the previous year.

According to the survey, the significant increase in bitcoin ownership last year is due to improved access to cryptocurrency via mobile applications and more investments by Canadians.

The number for Bitcoin ownership in 2021 comes from the Bank’s Bitcoin Omnibus Poll, a survey that the Canadian central bank has yet to disclose.

According to the bank’s analysis, the median BTC holding among Canadians was CAD 500 (USD 393).

It stated that Canadians mainly utilize bitcoin as an investment, and it is becoming less popular as a payment option due to high transaction charges and substantial volatility. 

Meanwhile, the bank has frequently stated that crypto-asset markets, generally, are not yet large enough to be of significance systemic significance.

Nonetheless, the central bank research made it apparent that, while crypto markets remain modest on a global scale, they have risen swiftly, with growth exceeding international regulatory efforts.

As Bitcoin underperforms, bullish sentiment returns to gold:

After five months, gold is outperforming bitcoin (BTC). Bullish optimism appears to have returned among retail investors in the gold market. Looking at how the two have done so far this year, it’s evident that it’s been a challenging year for the bitcoin camp.

Worse, the generally cautious and risk-averse gold investors have experienced even better returns on their investment.

Depending on which data source is utilized, gold has returned roughly 2% in 2022 as of Thursday, even though it has been a rather tumultuous journey for the yellow metal.

Nonetheless, the excellent performance compared to a loss of roughly 35% for BTC investors, with most of the losses occurring between January and May of this year.

Early hints of a fresh rise in gold could be seen in late May, according to Spectrum Markets, a European derivative trading platform aided by a weaker US dollar and euro.

The remarks came as the SERIX sentiment index revealed that retail investor sentiment about gold is improving.

According to Spectrum Markets, SERIX data reveal that sentiment peaked in February this year and has since risen steadily, reaching a one-year high of 116 in May. 

In comparison, the 500 stock index had a sentiment index of 100, whereas the German DAX 40 index had a sentiment rating of 99. A SERIX index reading of 100 is officially considered neutral, while anything higher is bullish and anything lower is bearish.

Wintermute’s ‘Amateur Mistake’ Costs Him 20 Million Optimism Tokens:

Wintermute, a crypto market maker, made a mistake, losing 20 million Optimism (OP) tokens valued at USD 17 million.

Wintermute was to receive a temporary award of OP 20m for liquidity provisioning services in advance of the OP coin launch.

The Optimism team delivered the total number of tokens after sending two test transactions effectively.

On the other hand, the crypto market creator had provided a multi-signature Ethereum (ETH) address that the company hadn’t yet deployed on Optimism.

Wintermute initiated a recovery operation to deploy the [layer 1] multisig contract to the same address on [layer 2]. Still, it was too late because a terrible actor had already gained control of the cash.

They placed the multisig contract on the incorrect chain 2. 

Dovey Wan, a founding partner of Primitive Ventures, said that Optimism should have rescheduled its airdrop in the aftermath of the tragedy.

Wintermute accepted responsibility for the incident in a Thursday message to the Optimism community, stating it was 100% their fault.

The exploiter was also asked to consider becoming a whitehat by surrendering the remaining 19 million tokens within one week.

Unfortunately, the exploiter had already sold 1 million tokens on Sunday.

Following Wintermute’s offer, the exploiter transferred an extra 1 million tokens to Ethereum co-founder Vitalik Buterin’s Optimism address.

Meanwhile, the OP token has taken a beating today.

The currency is trading at USD 0.85 at 8:16 UTC, down 13.2% in the last 24 hours.

Blockchain Games Are the Most Popular Category Despite the Crypto Market Downturn:

According to DappRadar’s Industry Report for May, blockchain games are the sector within crypto that has withstood the industry decline the most. According to their research, the activity surrounding the games is still up 197% year on year.

Despite a 5% dip in gaming transactions in May compared to the previous month, DappRadar paralleled the sector’s resiliency to the dramatic decline in activity found in DeFi and NFTs.

It went on to say that top blockchain games have kept their player bases, with genuine engagement among players across platforms.

Meanwhile, the research stated that venture capital investments in the gaming industry have continued to flow despite the market downturn.

The research cited Otherside, a play-to-earn (P2E) metaverse initiative for the BAYC NFT community, as an example of the tremendous interest in crypto-based gaming, claiming that it made USD 760 million in May alone.

Bitcoin’s historical performance is no predictor of its future performance in 2022:

Despite encouraging expectations based on previous performance, May turned out to be another dismal month for bitcoin (BTC).

So, with that in mind, how trustworthy are previous trends for the current bitcoin price?

Using Kraken’s monthly market prognosis as a guide, it’s evident that May’s performance fell short of expectations.

Bitcoin’s performance ended up far behind its historic median return for May, which was 10%.

Similarly, we may evaluate how the top cryptocurrency has done each month this year compared to its past performance. For example, compared to a -5% median return in March, bitcoin’s third month this year had a 3 percent positive return.

Bitcoin’s performance in February was more in line with its historical prices.

Prior monthly returns have not been a solid predictor of future returns in any month this year except February.

It is also worth mentioning that, except for March, performance in 2022 has been poorer than the historical norm.

According to Kraken’s historical statistics, which date back to 2011, the median return for bitcoin in June was 2%.

The last five months of the year saw median returns ranging from -8% to 18%, according to the data.

PayPal now allows users to send cryptocurrency to other wallets and exchanges:

The online payment giant PayPal now allows US clients to transfer crypto assets from their accounts to independent wallets and exchanges.

Beginning June 7th, PayPal supports the native exchange of cryptocurrencies between PayPal and other wallets and businesses, said Jose Fernandez da Ponte, SVP and general manager of digital currencies at PayPal. 

According to him, this feature has consistently ranked as one of the most requested enhancements by users since the company began offering the purchase of crypto on the platform.

According to da Ponte, the platform intends to extend its capabilities to all qualified US clients in the coming weeks.

As per the firm, the new functionality allows users to transfer supported crypto assets into PayPal. The features also include moving crypto from PayPal to external crypto addresses such as exchanges and hardware wallets. Users can send crypto to other PayPal users in seconds with no fees or network charges.

In late 2020, PayPal introduced the option for users to buy, sell, and hold cryptocurrency.

Da Ponte also stated that PayPal had received a full Bitlicense from the New York Department of Financial Services (NYDFS), making it the first corporation to transform a conditional Bitlicense into a complete Bitlicense.

Notably, PayPal’s decision to allow cryptoasset transfers off its platform follows a similar step by rival trading business Robinhood.

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