Crypto Highlights Week #7 – Bitcoin dips below $42K as crypto sentiment returns to ‘fear’

Crypto Highlights: Tezos & Man United alliance, El Salvador issues world first Bitcoin bond, Binance $200m stake in Forbes, Bitcoin dips below $42k: These and more in this weeks’ Crypto Highlights.

Top Headlines Of The Week

• No permanent enemy as Binance takes a $200 million stake in Forbes, a publication it once sued for defamation.
• In the world’s first Bitcoin Bond, El Salvador plans to issue its first bitcoin bond next month, with maturity set at 2032.
• Rumors of wars build up as Bitcoin dips below $42K as crypto sentiment returns to ‘fear’.

Top Stories Of The Week

Man United onboards Tezos as its official Web3 and training kit partner

Manchester United, one of the world’s oldest soccer clubs, has announced a relationship with blockchain startup Tezos as the official training kit and technology partner. The soccer club intends to introduce its supporters to the decentralized Web3 technology, which is gaining traction among mainstream corporations and brands. The club would wear the new uniforms for the first time against Southampton on Saturday.

Manchester United’s previous sponsorship relationship with Aon terminated last month, and Tezos will pay an additional 33 percent on top of the previous pact, which was worth $27 million per year. Tezos will assist the soccer club in gaining more exposure to Web3 technologies and may play a vital part in the development of different digital fan products and collectibles in the near future.

The vast majority of global sports brands are experimenting with blockchain and Web3-based technology, as well as innovative methods of linking sports teams to fans. Manchester United intends to develop a fan ecosystem on the Tezos blockchain based on the notion of a metaverse to provide individualized experiences to fans, with the platform proposing to employ the Tezos native currency, XTZ.

Victoria Timpson, CEO of alliances and partnerships at Manchester United, said:

“This is a hugely exciting partnership for Manchester United because it aligns us with one of the most advanced, reliable and sustainable blockchains in an area of technology which promises to truly revolutionise the way that everyone, including the Club and our fans, can interact.”

Tezos, a proof-of-stake blockchain, has joined the increasing number of blockchain companies that have entered mainstream sponsorship arrangements. Tezos has also negotiated sponsorship partnerships with McLaren Racing in Formula One and the New York Mets in Major League Baseball.

Binance is taking a $200 million stake in Forbes — the publication it once briefly sued for defamation

Binance, the cryptocurrency exchange operator, is investing $200 million in Forbes, the publication it previously sued for defamation and then voluntarily dismissed.

According to Forbes, Binance will represent half of the $400 million private investment in public equity (PIPE) announced in August. Forbes revealed the PIPE investment at the time, along with its intention to go public through Magnum Opus, a special purpose acquisition company or SPAC.

“With Binance assuming existing PIPE commitments, the overall size of the PIPE will remain at $400 million, and Binance’s investment will be according to substantially the same terms as the existing PIPE investors,” said Forbes. The deal is expected to close by March. 

The announcement comes a year after Binance’s defamation case against Forbes was dropped. In November 2020, the crypto exchange sued the century-old journal, claiming that their piece included fraudulent charges. Forbes reported on Binance’s efforts to dodge the attention of US regulators, citing a leaked document.

Binance “conceived of an elaborate corporate structure designed to intentionally deceive regulators and surreptitiously profit from crypto investors in the United States,” Forbes wrote at the time. 

Binance has so far invested in, purchased, or taken an interest in a number of firms in the cryptocurrency field. But how does a media firm fit into the corporation’s portfolio?

“First and foremost, this is a financial investment in the media industry. Web2 had a profound impact on the media sector, and – at Binance – we believe that web3 may have an equally important role to play in the future of journalism and publishing,” a Binance spokesperson told The Block.

This Week’s Market Sentiment

Bitcoin dips below $42K as crypto sentiment returns to ‘fear’

According to TradingView data, BTC/USD hit a low of $41,741 on Bitstamp on Saturday before rebounding over $42,000. Following the release of U.S. CPI data, the pair’s ascent was halted, and demands for a return to $40,000 or even below surfaced to test the steely bulls’ commitment.

According to Cointelegraph writer Michael van de Poppe, the findings were still inconclusive, although prudence was clearly required on short-term trades moving ahead. “Bitcoin is still looking at the same resistance,” he explained, with a graphic depicting probable support and resistance levels.

“Weekly order block rejecting in a harsh manner. Weekly candle starts to look ugly + several levels of fear across the market for coming weeks. Remaining flat at this stage.”

Others, meanwhile, have called time on the possible breadth of Bitcoin’s longer-term decline. “For those waiting for sub-30k $BTC, may the crypto gods be with you because the odds are not in your favor,” famous Twitter analyst Credible Crypto stated.

According to the Crypto Fear & Greed Index, three days in “neutral” territory was sufficient before “fear” resurfaced as the dominant factor among traders. The Index was 44/100 on Saturday, down from 54/100 on Wednesday.

Discussing January’s week-long trip into the bottom “extreme fear” zone, trading suite Decentrader argued that a sentiment reset had likely already come based on historical patterns.

“Such extended periods of extreme fear give an indication that general market participants can be caught offside. We saw that play out with the fast move to the upside that $BTC has shown over the past two weeks,” analysts wrote in a market update released Friday.

Mainstream Adoption Of The Week

El Salvador plans to issue first bitcoin bond next month

El Salvador’s finance minister, Alejandro Zelaya, said on February 8 that the country will issue its first “bitcoin bond” next month. Zelaya mentioned on a local news program that the administration intends to have the bond “totally ready” for issue between March 15 and March 20.

“If we truly want to create our nation, we must invest in it in this manner,” Zelaya stated.

Zelaya said that the administration is still preparing to sell the first bond for $1 billion, as previously stated during a November 20 ceremony. During the broadcast, Zelaya stated that he now expects the bond to be oversubscribed by at least $500 million.

According to Zelaya, this new sort of bond will be more accessible than regular bonds since it will enable a minimum purchase of $100 and will not require the use of a stockbroker. The bond will be issued on the Liquid Network sidechain of Blockstream. Zelaya stated that the bitcoin bonds “will comply with all financial market regulations,” such as know-your-customer (KYC) and due diligence processes.

According to the November presentation, El Salvador’s first bitcoin bond would bear a 6.5 percent coupon and will mature in 2032. During the interview, Zelaya also referenced the voucher. The nation intends to utilize half of the issuance for bitcoin purchases, while the remainder would be used for other purposes such as energy infrastructure and mining.

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This Week’s Crypto Meme

We hope you enjoyed this week’s edition of crypto highlights. For a peek at our last edition of crypto highlights & blockchain news, click here.