Qrafty heard that BTC's price jumped because of US's new proxy war, the PROOF Act and Vodafone working with LINK

***Qrafty smiling the biggest smile*** Aloha, crypto curious! I am Qrafty - the crypto lovin’ honey badger 🦡 !

Welcome to Coinqraft – the daily crypto newsletter for busy but curious people who don’t have time for the crypto drama!🌟

🦡   Qrafty is back with juice and news crypto jungle, so let’s dive in 📰 🌟

1. BTC Jumped Because Of Military Spending

2. The PROOF Act

3. Vodafone And LINK

Bonus: SBF Will Testify

Arthur Hayes: BTC Rallying Military Spending

Arthur Hayes makes a very compelling case on why Bitcoin’s price is rallying, and it’s not because of ETF rumors.

We all know that the Federal Reserve declared that rate hikes are on hold until they've conquered inflation, that economic dragon the Fed people want to protect us from. But here's the problem: bondholders didn't quite appreciate it. In fact, they started selling their long-term US Treasury bonds.

The result? A steepening yield curve, which is a fancy way of saying the difference between short and long-term interest rates got a bit wonky. Think of it as the stock market's wild cousin.

Now, let's talk about Uncle Sam. He's playing the role of the generous friend who insists on picking up the entire dinner tab. In this case, it's all about supporting Israel's war effort while including Ukraine’s expenses in the mix as well. And we all know wars don't come cheap. On the contrary, wars are pretty much the only economic context where they sky’s the limit in spending. That and Covid vaccines, of course.

So, the US military budget is set to skyrocket, especially if other players like Iran decide to join in and take on the USA in their proxy wars. What if China and Russia get in the proxy war dance? Get ready for some big numbers, and I mean really big.

In the world of finance, there's always a dance going on. In this particular dance, the structural hedging needs of banks and the borrowing needs of the US war machine are partners. They're waltzing around the US Treasury market like there's no tomorrow. Long-term US Treasury bonds, usually the go-to safe haven, seem to have lost some of their luster. Investors, looking for safer bets, have started exploring alternatives.

Where do they go? Straight into the arms of cryptocurrencies. Gold and, especially, Bitcoin, have emerged as the new safe havens. It's as if they're the financial superheroes saving the day from the looming threat of global wartime inflation.

One thing is clear – we're in for an interesting ride. From bonds throwing a tantrum to a cryptocurrency rally fueled by inflation concerns, the unexpected is the name of the game.

The Fed might soon take a more hands-on approach to interest rates, turning the US Treasury market into something quite different from what we thought. But, rest assured, the cryptocurrency bull market is ready to shine. So, if you're thinking about your investment portfolio, it might just be the perfect time to consider Bitcoin and Ether.

🙃 Qrafty hopes that today’s main story brought brave badgery value to you! Now it’s time for a break, you deserve a bit of fun! 😇 👇️

The PROOF Act

Two U.S. senators, representing different political spectrums, have jointly introduced a bill aimed at preventing another FTX-like financial collapse.

The "Proving Reserves of Others Funds (PROOF) Act" is the brainchild of Senators Thom Tillis (R-NC) and John Hickenlooper (D-CO), who shared a draft of this legislation last Friday. The primary objective of this bill is to safeguard against any unethical mingling of customer funds and to institute a mandatory monthly proof-of-reserves (PoR) report to be conducted by a neutral third-party auditing firm.

The legislation requires digital exchanges to establish fundamental account standards to ensure the protection of customer funds. Additionally, it mandates the verification of cryptographic proof of reserves and the disclosure of a company's liabilities. Finally, the bill outlines a series of civil penalties, including financial fines for violations.

Vodafone and Chainlink Proof Of Concept

The core focus of this proof of concept is to streamline the seamless sharing of critical trade documents, like bills of lading, across a range of platforms and blockchain networks. These documents often encounter delays within a fragmented system that houses various inefficient platforms. This joint initiative was showcased at SmartCon 2023 in Barcelona, Spain. During the event, the companies illustrated how trading firms might potentially circumvent delays in shipping by digitally transmitting bills of lading across multiple blockchains to various stakeholders. The practical application of this technology holds the promise of improving the global trade process, which, in the previous year, saw transactions totaling over $32 trillion.

World Bank’s First Global Bond

The World Bank unveiled bond-i, a pioneering financial instrument driven by blockchain technology. It marks the world's inaugural bond to be both established and supervised through distributed ledger technology, from its inception to maturity. This two-year bond successfully secured A$110 million in funds, signifying the first instance of investors backing the World Bank's development initiatives through a process entirely managed by blockchain technology.

On August 10, the World Bank designated the Commonwealth Bank of Australia (CBA) as the bond's arranger. Following this announcement, a two-week consultation period with the market took place, during which key investors expressed substantial support for the bond's issuance.

Hey hey 🙃 Qrafty hopes you are enjoying the experience here and would like to regularly get Qrafty’s letters!

If so, please click on the button below. Qrafty is really really grateful to have you here, so thank you!

Tomorrow is like Schrödinger's cat - until it arrives, it's both a day of endless possibilities and a distant, theoretical concept

Qrafty’s Thought Of The Day

Other stories

FTX wants to restart trading

FTX Trading Ltd. is currently evaluating offers from three potential suitors to revive trading operations on what was once among the globe's largest cryptocurrency exchanges, before the firm succumbed to bankruptcy due to the incompetence and fraud from Sam & Co.

Sam Bankman Fried will testify

During an October 25th teleconference involving SBF's legal team, prosecutors, and Judge Lewis Kaplan, Cohen mentioned that once the prosecution wrapped up its case presentation on October 26th, his team intended to summon three witnesses, including Bankman-Fried, to testify. Judge Kaplan agreed to proceed without interruption on October 26th, transitioning directly from the prosecutors' final witness to the first defense witness.

Ledger will launch controversial recovery service

The recovery service will remain optional for Ledger customers, both at the release stage and during subsequent updates. The company’s CTO also emphasized that the source code of the solution is publicly available.

Market Whispers

Bitcoin is continuing the uptrend. Did a small pullback to $33,680 and reached $35,130 so far. It cooled off in a small consolidation after the high, between $34,380 and $34,800.

As discussed yesterday, it is expected to tag $36k, where are some candle wicks from the first move up, on some exchanges. From there, we might get a short scalp to ~$34,800 for first TP and ~$32,500 for TP2. We are still in an uptrend, so be careful with shorts, might be superficial. And since we are in an uptrend, we can look for longs on the retest of the $32,400 - $32,500. If you are not in a long position it better to wait, as the RR from where we are now (~$34,800) is not great.

As for Eth, is still disappointing, with a high today at just $1,817. A good long for Eth would be from a retest of $1,730, targeting $2,000, if, only if Bitcoin continues the uptrend or consolidates above $32,000.

Qrafty ends channeling his inner trader.

Today is INTERNATIONAL PASTA DAY!

That’s all from Qrafty 🦡 for today! Qrafty thanks you and wishes you to live each moment as if you are listening to the music you love most!

If you enjoyed Qrafty’s letters, you can make Qrafty mucho happy happy and subscribe below 👇️ Wahaha!