IMF Urges El Salvador to Limit Scope of Bitcoin Law
The International Monetary Fund (IMF) is once again calling on El Salvador to narrow the scope of its bitcoin law and reduce public sector exposure to the cryptocurrency. The IMF aims to establish an agreement with Salvadoran authorities focusing on macroeconomic stabilization and growth reforms.
According to IMF director of communications Julie Kozack, "Addressing risks arising from bitcoin is a key element of these discussions." El Salvador's bitcoin law, which came into effect in September 2021, made the country the first to adopt bitcoin as legal tender, subsequently creating a national bitcoin stockpile.
El Salvador President Nayib Bukele acknowledged that the monetary experiment has yielded mixed results but maintains it is a "net positive" for the country. While many risks remain unrealized, there is a collective understanding that efforts are needed to enhance transparency and mitigate potential fiscal and financial stability risks associated with the bitcoin project.
The IMF also noted that El Salvador's economy is projected to grow by 3% in 2024, surpassing the 2% growth expected for Latin America and the Caribbean.
TeraWulf Sells Stake in Nuclear-Powered Bitcoin Mine for AI Expansion
TeraWulf has divested a 25% stake in its nuclear-powered Nautilus Cryptomine joint venture in Pennsylvania to a subsidiary of Talen Energy Corporation for approximately $92 million. The capital raised will be reinvested into expanding the Lake Mariner facility in New York, which is focused on high-performance computing and AI data centers, alongside bitcoin mining.
This deal comprises $85 million in cash and around 30,000 bitcoin miners and associated equipment valued at $7 million, yielding a 3.4x return on TeraWulf's investment. As demand surges, TeraWulf and other miners like IREN and Core Scientific are diversifying into AI, while traditional miners like CleanSpark and Riot argue that returns from bitcoin mining infrastructure are achieved much quicker than the gestation periods seen in AI.
Hyperliquid Leads Decentralized Perpetual Swap Trading Volume
Hyperliquid has emerged as the leader in trading volume among decentralized perpetual swap platforms, recently overtaking competitors such as Jupiter, SynFutures, and dYdX. On Thursday, Hyperliquid recorded nearly $1.4 billion in volume, well ahead of Jupiter’s $699 million, SynFutures’ $556 million, and dYdX’s $331 million, according to data from DeFiLlama.
This surge may partially stem from the platform's points reward campaign, which will influence the distribution of the forthcoming Hyperliquid token airdrop. Hyperliquid's innovative low-latency trading engine and non-custodial structure make it particularly appealing for high-frequency traders.
US Spot Bitcoin ETFs Experience Third Day of Outflows
U.S. spot Bitcoin ETFs reported $54.2 million in net outflows on Thursday, marking a third consecutive day of negative flows, totaling over $388 million for October. Ark Invest's ARKB led the withdrawals with $58 million leaving the fund, while BlackRock's IBIT saw the largest inflows at $36 million.
Daily trading volume for spot Bitcoin ETFs decreased to $1.1 billion from $1.7 billion on Wednesday, with cumulative net inflows since their launch in January now reaching $18.5 billion. Meanwhile, U.S. spot Ethereum ETFs also faced net outflows of $3.2 million, with Grayscale's ETHE leading losses at $14.7 million, even as BlackRock's ETHA generated $12.1 million in inflows.
New HBO Documentary Aims to Reveal Satoshi Nakamoto's Identity
HBO's upcoming documentary titled Money Electric claims to unveil the true identity of Bitcoin's pseudonymous creator, Satoshi Nakamoto. Galaxy Digital's Head of Research Alex Thorn mentioned that the documentary might suggest Nakamoto could be the late cypherpunk Len Sassaman, a theory that first surfaced in 2021. Directed by Cullen Hoback, known for Q: Into the Storm, the film promises a controversial conclusion and is set to premiere on October 9.
Looking Ahead to Next Week
The latest U.S. FOMC meeting minutes will be released on Wednesday, followed by U.S. CPI inflation and jobless claims data on Thursday. UK GDP and U.S. PPI figures are expected on Friday. The upcoming week also features significant events such as the Future of Bitcoin Conference, Bitcoin Amsterdam, Crypto Fest 2024, and the World Blockchain Summit.
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Disclaimer: The Block is an independent media outlet providing news, research, and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in various companies within the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry.
