Communications

As this paper returns from a week-long publishing hiatus, it’s north of $2 trillion in total capitalization that the cryptocurrency market finds itself again. The fund benefited from the rise, actually outperforming the bitcoin index for the period thanks to a heavy exposure to ether.

Let’s start this week’s letter sharing an invitation. Rivemont is taking advantage of the arrival of spring to cordially invite you to a 5 to 7 event at the Bonaventure Hotel in Montreal on April 14. At the event, Rivemont’s crypto strategy team will present a conference entitled “Cryptocurrencies; a digital revolution”. The event is free and seats are already going fast!

Great news for the future of bitcoin in the European Union. We mentioned last week that a bill to regulate the cryptocurrency industry would be voted this Monday. After a day of debate by the Committee on Monetary and Economic Affairs, the organization ultimately rejected versions of the legislative package that contained what has been described as a “de facto” ban on the “proof-of-work” cryptocurrency mining used by Bitcoin and Ethereum, among others.

After a price pullback last week in the vein of the obvious uncertainty affecting all markets (except possibly commodities, which are benefiting), crypto investors woke up to bitcoin back north of $40,000 this morning. What explains this rally? Aside from the obvious correlation still present with the U.S. stock market, it’s the U.S. executive order on cryptocurrencies that is getting today’s attention.

A week ago today, Russia began its new invasion of Ukrainian territory, and the world responded with a multitude of economic sanctions. Banks are excluded from the global financial system, assets are frozen, foreign capital is no longer accessible, trade is restricted, and so on.

The other asset that is doing well right now is gold. This is not a big surprise in the inflationary environment. But isn’t bitcoin digital gold?

The theme of the week once again seems to be the metaverse. Indeed, the largest bank in the United States, JPMorgan, has taken a giant step into this virtual world, opening a popular blockchain-based Decentraland lounge. In the process, the institution sees the sector as a $1 trillion opportunity.

First came a real bombshell yesterday, as the U.S. Department of Justice announced the seizure of $3.6 billion in bitcoins from the Bitfinex exchange fraud of 2016. It was announced that a Manhattan couple had been arrested by authorities as a result. We’re not talking about just another operation here. In fact, this is the largest financial seizure in U.S. history.