August 25th Bitfinex alpha | ETH climbs as BTC integrates

With the launch of the central bank’s Jackson Hole Economic Symposium last week, Bitcoin was defensive, slipping almost 10% from its high as investors lost risk to weaker ETF flows and hotter inflation data. However, after Fed Chairman Jerome Powell set a tremendous balance, the tone reversed sharply after the symposium, causing a short aperture across digital assets, lifting the majors and regaining market confidence. Ethereum outperformed, surged to a fresh, high, reaching $4,958.70 on Sunday, bolstering its new role as a key liquidity driver for facility demand, but the continued integration of BTC shows a pause rather than a structural weakness.

Flow remains the central driver of price. The US spot ETF saw its heaviest weekly spill since April.

However, the Ministry of Finance accumulation intervened to absorb supply and remained resilient to net structural demand. Global liquidity remains high and the long-term background remains constructive as ETH corporate financial financial balances grow above $100 billion. While BTC appears to be set to trade ranges in the short term, ETH leads the spin and Altcoins wait for a wider vehicle to unlock sustained influx later in the cycle.

Federal Reserve Chair Jerome Powell’s Jackson Hole speech boosted the market in hopes of interest rate cuts in September. Still, he halted his firm commitment to do so, highlighting the Fed’s act of balancing inflation and employment. Treasury yields have declined and stocks have recovered, but Powell has been more cautious than in the past cycle, suggesting that cuts may be limited. Meanwhile, the U.S. housing market showed resilience in July’s rebound of multi-family construction, but permits fell to their five-year lows, reflecting builders’ attention.

Mortgage fees have been eased slightly, but they continue to maintain affordable tensions. Beyond housing, stronger business activities in both manufacturing and services suggest economic momentum, while higher input costs and higher consumer prices indicate sustained inflationary pressures.

At the same time, there was a big movement in the crypto industry. Thailand has launched a pilot’s inter-crypto program to enhance tourism, Sharplink Gaming has expanded its Ethereum holdings beyond 740,000 ETH, and CFTC has expanded its “Crypto Sprint” to promote US digital asset regulations in coordination with the SEC.

]]> https://earlybirdsinvest.com/bitfinex-alpha-eth-climbs-as-btc-integrates/feed/ 0 55086 https://earlybirdsinvest.com/opensea-integrates-solana-for-buying-evm-based-nfts/ https://earlybirdsinvest.com/opensea-integrates-solana-for-buying-evm-based-nfts/#respond Thu, 21 Aug 2025 05:35:07 +0000 https://earlybirdsinvest.com/opensea-integrates-solana-for-buying-evm-based-nfts/

The Federal Reserve (Fed) announced it will shut down its program with additional scrutiny over crypto and fintech activities.

On an August 15 statement, the central bank said it will sunset the Novel Activities Supervision Program and return to monitoring banks’ crypto and fintech activities through standard supervisory processes.

The Fed established the specialized program in August 2023 to enhance oversight of banking organizations engaging in crypto activities, distributed ledger technology projects, and complex technology partnerships with non-banks. 

The program targeted activities that regulators deemed novel and potentially risky to financial stability.

The Fed stated:

“Since the Board started its program to supervise certain crypto and fintech activities in banks, the Board has strengthened its understanding of those activities, related risks, and bank risk management practices.”

The regulator will integrate knowledge gained from the program into standard supervisory processes while rescinding the 2023 supervisory letter that created the initiative.

The program’s dissolution follows several pro-cryptocurrency moves by federal regulators this year. 

The Federal Reserve Board removed reputational risk from its bank supervision program on June 23, ordering staff to strike the term from examination manuals and concentrate on measurable financial exposures.

The Fed’s move positions the central bank alongside the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency, which made similar changes this year. 

The coordinated revisions eliminate a subjective standard that experts said allowed examiners to block banking services to crypto firms and prevented banks from offering basic crypto-related services.

Furthermore, the Office of the Comptroller of the Currency, the Federal Reserve Board, and the Federal Deposit Insurance Corporation released a joint statement explaining how existing banking rules apply when institutions custody crypto for customers. 

The guidance describes safekeeping as holding digital assets on clients’ behalf while stressing that it does not create new supervisory demands.

Regulators instructed boards and executives to view crypto custody as a service that relies on exclusive control of private keys and other sensitive data, requiring banks to prove no other party can unilaterally move assets once they enter custody.

Fed Chair Jerome Powell laid the groundwork for the regulatory shift in an April 16 speech. In it, he urged Congress to establish a stablecoin framework and stated that the Fed does not intend to limit lawful relationships between banks and crypto firms. 

Powell acknowledged that regulators adopted a conservative stance after the 2022 market failures but indicated that some guidance may be relaxed to accommodate responsible innovation.

The program’s end represents a broader normalization of crypto banking supervision as regulators gain confidence in their understanding of digital asset risks and develop clearer frameworks for institutional participation in crypto markets.

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04 August Bitfinex alpha | BTC integrates and leverages drops as the market is waiting for a catalyst

Bitcoin has crucially destroyed local range support at $115,800, reaching its $112,210 low after multiple retests over the past three weeks. This failure coincides with the wider risk across the entire crypto complex, especially in altcoins where leverage was actively constructed. The other indexes represent the broader Altcoin market, but they excluded the top 10 coins by market capitalization, resulting in a drawdown of 18.7% over the last 10 days, eliminating nearly $59 billion in market capitalization before rebounding on Sunday.

This surrender phase peaked on August 2nd, with daily liquidation exceeding $1 billion. BTC and ETH were leading the liquidation volume, but Altcoins experienced a deeper drawdown in 2025 with a total crypto liquidation marking one of the most offensive rewinds. Despite the high betty nature of Altcoins, even key assets like ETH reduced the week by 9.7%, while the Broader Others Index fell 11.4%. Just a few names like ENA and Pengu highlight how limited capital turnover has turned amid increased macro pressure and reduced risk.

Structurally, BTC still holds a relative strength position with a market capitalization of over $2.2 trillion. This postpones the 2021 cycle peak, but ETH and Altcoins are below previous highs. This difference highlights the role of BTC as an institutionally driven asset for macroresidents, in contrast to the speculative vulnerability of the broader market. As ETF flows cool, Fed policies turn into more takis and risk appetite declines, consolidation or further downsides are expected, unless aggressive spot buying is re-emerged. The technical bounce from the $112,000 area is plausible, but the broader recovery could be dependent on facility flows or updated demand via clear macrocatalysts.

Latest economic data from the US highlights the growing vulnerability under seemingly resilient headline figures. The June inflation report revealed enduring price pressures driven primarily by new tariffs that reduced the costs of goods, such as furniture, clothing and recreational items.

Personal Consumption Expenses (PCE) rose modestly, but actual consumer spending was hardly moving. This indicates that inflation is undermining purchasing power. Wage growth has softened, with GDP rising by 3% in the second quarter, much of which is due to a sharp decline in imports, increasing weak domestic demand.

Excluding trade and inventory, actual GDP rose by just 1.2%, referring to a stagnant business investment and slowing consumer activity. Meanwhile, the July employment report has been added to the darkness. Employment slowed to just 73,000 new jobs, unemployment rates tickled at up to 4.2%, and workforce participation continued to decline. Despite the seasonal tailwinds, sectors such as construction and hospitality had declined in performance, but the decline in foreign-born workers reflected resistance to tightening immigration policies. These trends collectively complicate the Federal Reserve policy outlook. With the stickiness of inflation and declining labor force, the Fed is likely to slow down speed cuts, waiting for a more clear signal before adjusting its stance. In parallel, the crypto industry has experienced a strong revival of institutional engagement, characterized by bold Treasury allocations and reorganisation of regulatory authorities. Sharplink Gaming has created headlines with ETH’s $295 million purchase, increasing its total holdings by over 438,000, establishing it as the world’s second largest corporate holder. The company’s aggressive capital deployment and staking strategy, supported by Ethereum co-founder Joseph Lubin and former BlackRock executives, reflects the growing institutional convictions as a financial asset for ETH. Meanwhile, regulatory momentum has also been built. SEC Chairman Paul Atkins has launched Project Crypto, a drastic initiative to modernize the US digital asset framework. The initiative, which moves away from the highly-enforced agency past, promises clarity in token classification, enables authorized cryptography to “super apps,” encourages traditional tokenized finance, and recovers the potential of US leadership in digital innovation. Finally, DeVVStream, a NASDAQ-registered carbon credit company, has announced a $10 million allocation to Bitcoin and Solana as part of its Sustainable Cryptocurrency Program. Funded by the $300 million Convertible Notrease, the move combines financial strategy with environmental impact, highlighting Crypto’s integration into an increasingly diversified corporate finance model. Together, these developments demonstrate mature digital asset spaces that are increasingly aligned with both facility capital and forward-looking regulatory frameworks.

]]> https://earlybirdsinvest.com/bitfinex-alpha-btc-integrates-and-leverages-drops-as-the-market-is-waiting-for-a-catalyst/feed/ 0 51487 https://earlybirdsinvest.com/alpaca-integrates-kraken-embed-to-extend-crypto-access-for-partner-networks/ https://earlybirdsinvest.com/alpaca-integrates-kraken-embed-to-extend-crypto-access-for-partner-networks/#respond Tue, 24 Jun 2025 04:24:06 +0000 https://earlybirdsinvest.com/alpaca-integrates-kraken-embed-to-extend-crypto-access-for-partner-networks/

As crypto adoption accelerates, financial infrastructure providers are competing to enable access to digital assets, whilst avoiding the complexity of building internal trading infrastructure.

Kraken Embed solves this by delivering Crypto-Assistance (CAAS) solutions that enable banks, fintech and financial platforms to integrate regulated crypto transactions through a single, compliant, scalable API.

June 16th Bitfinex alpha | Markets become more tense as BTC integrates

Bitcoin started the week (last week), promised a rebound, gaining 4.7% from its weekly opening, briefly retesting its previous high at $109,590. However, after Israel’s unexpected strike against Iran on June 13, optimism quickly gave way to avoidance. Bitcoin traced the majority of the early rises with a 7.33% drop, falling for a week as oil prices rose and macro uncertainty weighed heavily on investors’ sentiment. This episode highlights that even strong trends can be quickly derailed by exogenous shocks, especially when the market is hot.

Beneath the surface, it has been revealed that traders’ actions can increase stress. Bitcoin’s nettaker volume plunged to a minimum of $197 million (see chart below) since June 6th. However, this sale is combined with a surge in liquidation, and is similar to past surrenders. If Bitcoin is able to hold the $102,000-$103,000 zone, then sales pressure is being absorbed, suggesting that the market may be prepared for a recovery.

The scale of the revision was particularly modest, especially compared to previous bull market drawdowns. Pullbacks between the 9% peaks are within Bitcoin’s normal volatility band, with nearly half of all trading days in the current cycle seeing a deeper drawdown. Furthermore, despite a relatively mild decline, the rapid slides of indicators of fear and greed into the realm of “fear” suggest that market psychology remains vulnerable. However, this reflexive fear can actually reduce the negative risks, as positioning is cautious and susceptible to rapid reversals when demand is reaffirmed. For now, Bitcoin is navigating classic integrations amid the upward trend.

US inflation showed a mild increase in May, with the consumer price index rising just 0.1% due to falling energy prices. However, this easing could be short-lived as trade tariffs and growing geopolitical tensions increase the risk of new inflation through global supply chain disruption and energy market volatility. Labor market signals are also being cautious. Unemployment claims rose to 248,000, approaching levels related to recession risk, with continued claims reaching the highest level since 2021. Against this backdrop, the Federal Reserve is expected to maintain stable rates at this week’s meeting, balancing the softness of recent inflation and energy-driven price pressures with trends in the fragile job market. With inflation expectations still rising and global uncertainty growing, policymakers may adopt a waiting approach before committing to any reduction.

The Crypto sector has witnessed strategic pivots as key players embrace the deployment and reconciliation of regulations by fostering ecosystem growth. The Blockchain Group has established itself as a strategic version of Europe and has announced a 300 million euro market equity program in the market to stop investors’ appetites for BTC-backed stock vehicles amid clarity under the regulations under MICA. Meanwhile, Cardano is considering diversifying $100 million into native stubcoin and Bitcoin from the ADA Treasury, aiming to deepen liquidity and strengthen its debt infrastructure without relying on external financing. In parallel, the Securities and Exchange Commission has retracted several Gensler-era proposals targeting Defi Exchange and Custody Frameworks. Together, these developments highlight new phases in which blockchain fundamentals are actively leveraging capital to accelerate adoption, and regulators begin to coincide with the decentralized nature of Web3 finance.

]]> https://earlybirdsinvest.com/bitfinex-alpha-markets-become-more-tense-as-btc-integrates/feed/ 0 42440 https://earlybirdsinvest.com/sparkball-integrates-somnia-blockchain-ahead-of-public-demo/ https://earlybirdsinvest.com/sparkball-integrates-somnia-blockchain-ahead-of-public-demo/#respond Fri, 06 Jun 2025 20:07:45 +0000 https://earlybirdsinvest.com/sparkball-integrates-somnia-blockchain-ahead-of-public-demo/

Multiplayer game Sparkball will introduce blockchain-supported features through a new integration with Somnia—a Layer 1 network built for real-time applications.

The partnership gives Opti Games, the studio behind Sparkball, access to infrastructure designed for fast transaction processing and low fees—capabilities that will now support on-chain tournament rewards, wager-based matches, and AI simulations.

The announcement comes shortly before Sparkball’s scheduled appearance at Steam Next Fest, where the public will be able to test the game from June 9 to June 16. Sparkball has already been showcased in events featuring several major esports teams and is in active development for wider release.

What is Sparkball?

Sparkball is an online multiplayer game developed by Opti Games, structured around 4v4 team matches where players control different characters in a match format that combines goal-scoring mechanics with combat-style gameplay.

The development team includes staff with prior experience at companies such as Riot Games, Blizzard, and Electronic Arts. Sparkball has gained early attention through events featuring professional esports organisations including G2, Cloud9, and Fnatic.

Whilst the game is still in development, it will be publicly available during Steam Next Fest, allowing players to try a free demo and provide feedback.

What can we expect from this partnership?

The partnership enables Sparkball to introduce several blockchain-based systems, including:

• Wager-based match formats: Allowing players to commit digital assets before matches.
• AI-versus-AI battles: Simulated matches that can be run and resolved autonomously on-chain.
• Tournament rewards: Issuance and tracking of competitive results using blockchain.

Players will also be able to access a cosmetic item—a skin themed after the Somnia network—though the item does not affect gameplay. Importantly, Sparkball remains available to players who are not using blockchain wallets or infrastructure.

Opti Games has not yet confirmed when Sparkball will exit its current testing phase or whether blockchain features will be mandatory in future builds. For now, the integration is being tested alongside traditional gameplay modes as part of the game’s gradual rollout.

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Global regulators have set the first set of wide-ranging rules to measure cryptocurrency transactions, reflecting a major transformation in the reporting of digital assets’ movements at the national level.

The International Monetary Fund has recently issued its seventh Balance of Payments Manual, bringing forth uniform regulations to monitor Bitcoin and other virtual currencies.

Mapping The Crypto Landscape

According to IMF reports, more than 160 nations came together to create a new framework that fills enormous gaps in monitoring digital asset flows. Cryptocurrency transactions, which are estimated to be in trillions of dollars every year, have long been unrecorded or irregularly reported.

Breaking Down Digital Assets

The guide proposes a comprehensive classification system for cryptocurrencies. Bitcoin, for example, will be accounted for as a non-produced, non-financial asset – the same way nations account for land or natural resource rights.

Stablecoins such as Tether will be identified as financial instruments, while crypto services like mining and staking will be classified under computer services exports.

IMF Updates Crypto Classification in Global Finance

The International Monetary Fund (IMF) has updated its Balance of Payments Manual (BPM7) to better account for digital assets.

Bitcoin is now classified as a non-produced nonfinancial asset, while stablecoins and tokens… pic.twitter.com/tQHzRw0z8W

— Cryptic (@Cryptic_Web3) March 23, 2025

Global Governments Take Notice

Two nations have taken significant steps in cryptocurrency governance. The United States has formed a strategic Bitcoin reserve, holding about 200,000 BTC for the most part obtained through lawful seizures. United States President Donald Trump signed an executive order blocking future sales of the assets.

Bitcoin’s National Experiment

In the meantime, El Salvador persists with its Bitcoin plan. The nation has amassed 6,125 BTC, worth approximately $538 million, even after inking a $1.4 billion deal with the IMF in December 2024 that called for restrictions on cryptocurrency transactions.

BTCUSD trading at $87,183 on the daily chart: TradingView.com

These national cryptocurrency reserves, as per the new guidance from the IMF, will now be monitored in the same manner as cross-border land acquisitions or spectrum license purchases. This methodology offers greater than ever transparency with which various nations are managing digital assets.

Image: Gemini Imagen

Community Reaction

The response of the crypto community has been varied. Some interpret the manual as a grand acknowledgment of Bitcoin’s stature, while others are warning that too much must not be made of the report. Max Keiser, Bitcoin adviser to Salvadoran president, asserted the IMF acknowledged Bitcoin as “digital gold” – but the IMF did not endorse any such status.

BREAKING: The IMF has just recognized Bitcoin as defacto digital Gold.

SOURCES confirm the IMF is adding Bitcoin to their own reserves and will soon include Bitcoin in their SDR basket/ index as well. https://t.co/fN1takq7SA

— Max Keiser (@maxkeiser) March 23, 2025

Cryptocurrency-using countries will be the ones to gain the most from these new reporting formats. In Nigeria alone, for instance, more than 35% of adults claim to use or possess cryptocurrencies, as revealed in a 2023 KuCoin report.

Though the guide does not give legal status to cryptocurrencies, it is an important step towards realizing their international economic significance. Banks and governments will be able to track and report cryptocurrency transactions across borders using clear and consistent methods.

The IMF upgrade marks an increasing recognition of cryptocurrencies as a significant element of the global finance system, despite controversies surrounding their future role.

Featured image from Gemini Imagen, chart from TradingView

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Polymarket has added support for Solana (SOL) wallet deposits, a move designed to lower transaction costs and improve user experience as the blockchain-based prediction market continues its meteoric rise.

The integration brings one of the industry’s fastest, lowest-cost networks to a platform that has already cemented itself as a leading venue for event-based forecasting.

The company announced on March 24:

“Starting today, you can now make deposits into your Polymarket wallet using Solana.”

The addition of Solana is expected to further streamline user participation, particularly for retail users deterred by Ethereum’s (ETH) higher gas fees.

With near-instant finality and fractions-of-a-cent transaction costs, Solana positions Polymarket to scale its user base and support more granular forecasting across sectors.

Breakout growth

Polymarket experienced explosive growth in 2024, emerging as a central hub for political prediction and election sentiment. With thousands of users participating in markets tied to the US presidential race, the platform frequently outpaced traditional pollsters in accuracy and speed.

Traders were able to speculate on outcomes ranging from primary victories and debate performances to battleground state results and Electoral College margins.

As the election season progressed, the platform’s predictive markets became a sought-after alternative data source for analysts, media, and even political operatives looking for a crowd-sourced view of voter trends.

At its peak, Polymarket processed millions in daily volume, with users leveraging real money to signal their confidence in different scenarios.

Its market on the 2024 presidential winner drew unprecedented attention, with odds updating in real-time based on trader behavior. Following televised debates or breaking news, activity on the platform often surged, offering a snapshot of sentiment faster than traditional polling methods could capture.

Proven accuracy

The rise in Polymarket’s prominence has been matched by a growing body of evidence supporting its forecasting precision. In a recent study, data scientist Alex McCullough analyzed the platform’s performance using a Dune Analytics dashboard.

His research found that Polymarket was accurate 90% of the time when predicting the outcome of events one month before resolution. In the final four hours leading up to the resolution, that figure rose to 94%.

McCullough’s methodology filtered out markets with extreme pricing — odds above 90% or below 10% — to reduce the impact of predictable outcomes.

He noted that while the platform occasionally overestimated probabilities, the deviation was largely attributable to behavioral tendencies such as herd mentality, low liquidity, and user appetite for high-risk, high-reward wagers.

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