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Tag: Bitcoin

  • Bitcoin Spot ETF: VanEck’s Head Of Research Says BlackRock Has $2 Billion In Investments Lined Up

    Bitcoin Spot ETF: VanEck’s Head Of Research Says BlackRock Has $2 Billion In Investments Lined Up

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    VanEck’s Head of Research, Matthew Sigel, recently hinted that the Spot Bitcoin ETF of the world’s asset manager, BlackRock, could see a record-breaking amount of inflows upon launch. This comes as an approval order by the Securities and Exchange Commission (SEC) looks imminent. 

    BlackRock’s Bitcoin ETF Could See Inflows Of Over $2 Billion

    Sigel mentioned on an X (formerly Twitter) space hosted by the media platform, The Block, that he heard from a reliable source that BlackRock has “more than $2 billion lined up in week one.”

    This investment capital is said to be coming from existing Bitcoin holders who are looking to increase their exposure to the flagship cryptocurrency. 

    He quickly added that he couldn’t be 100% certain of this information. However, it is a possibility, considering that issuers would be looking to get investors that can inject huge sums into their respective ETFs. 

    Sigel went on to highlight how significant it could be if BlacRock’s ETF indeed saw $2 billion of inflows in the first week of trading, saying that it would “blow away” their initial projections. They estimate that the Spot Bitcoin ETFs could see $2.5 billion of inflows in the first quarter of trading. Meanwhile, they believe the market could grow to $40 billion in the next two years. 

    BTC price struggles to reclaim $44,000 | Source: BTCUSD on Tradingview.com

    Not Out Of Place For BlackRock

    Commenting on the possibility of BlackRock seeing this significant amount of inflows, Bloomberg analyst Eric Balchunas noted that such an occurrence isn’t unusual for the world’s largest asset manager. According to him, BlackRock is known for lining up and injecting big cash into new ETFs on the first day of trading. That way, it registers as volume for them. 

    Balchunas further noted that BlackRock’s Bitcoin ETF, seeing $2 billion of inflows, would shatter all records relating to first-day and week volume for an ETF. Interestingly, BlackRock already holds the record for the most successful ETF launch going by the amount of inflows recorded on day one. 

    BlackRock spot bitcoin ETF

    The world’s asset manager further dominates the top 10 list of most successful ETF launches. Balchunas, however, clarified that those inflows were mainly lined up cash and not organic, as they were readily available before the ETF launched. He also mentioned that he got a second source to confirm Sigel’s claims that BlackRock has a big day one lined up. 

    Meanwhile, the Bloomberg analyst provided an update on when the approval order from the SEC was likely to come. Citing multiple sources, he stated that the SEC is lining up all issuers for a potential launch on January 11. 

    Featured image from Decrypt, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Scott Matherson

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  • A Look at The Best Bitcoin ETF Ads so Far

    A Look at The Best Bitcoin ETF Ads so Far

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    With Bitcoin (BTC) spot ETF approvals seemingly just days away, applicants are racing to seize investor attention – and cash – ahead of their competitors upon launch.

    From VanEck to HashDex to Bitwise, here are the commercials being pushed by billion-dollar asset managers to encourage hungry customers to buy Bitcoin.

    The Bitcoin Ad Campaign

    One of the first, most notable commercials came from Bitwise last month when it hired Jonathan Goldsmith to spice up its campaign.

    Goldsmith starred in a renowned advertising campaign for Dos Equis beer starting in 2006 and is most famously known as “the most interesting man in the world.”

    “You know what’s interesting these days? Bitcoin,” he told viewers of Bitwise’s commercial. “Look for Bitwise, my friends.”

    In a later commercial, Goldsmith tells viewers that “Satoshi sends his regards,” referring to Bitcoin’s anonymous creator who disappeared from internet discussions over a decade ago.

    Bitwise has since pumped out a long list of “most interesting man memes” related to Bitcoin, miners, and private keys.

    HashDex has run several commercials appealing to crypto’s appeal as next-generation technology.

    Their ads feature decades-old interview footage of people discussing their criticisms of computer and payment tech, which seem ridiculous by today’s standards.

    One includes a news broadcast covering Burger King’s first offering for customers to buy meals with a credit card.

    A woman interviewed at the time said it was “ridiculous” if people had to use a credit card when they go to a fast food restaurant.

    “Understanding disruptive innovation takes time. Bitcoin’s time has arrived,” wrote HashDex.

    Competing on Fees

    On Wednesday, Galaxy Digital CEO Mike Novogratz shared a one-minute video monologue on Bitcoin’s history in celebration of its 15th birthday since the genesis block.

    Galaxy is currently partnered with trillion-dollar asset manager Invesco on an ETF application, which will feature 0% fees for its earliest customers.

    “[Bitcoin’s] fixed and predictable supply makes it a potentially robust store of value,” Novogratz explained. “We are committed to helping you understand and explore the transformative potential of Bitcoin.”

    While Galaxy competes on fees, VanEck is appealing to Bitcoin diehards: on Friday, the asset manager promised to donate 5% of profits from its ETF to funding-starved Bitcoin Core developers.

    “Your tireless dedication to decentralization and innovation is the cornerstone of the Bitcoin ecosystem, and we’re here to support it,” the company wrote.

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    Andrew Throuvalas

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  • Bitcoin Flash Crash: Crypto Market Witnesses $2.5 Billion Inflow Following Recent Downturn

    Bitcoin Flash Crash: Crypto Market Witnesses $2.5 Billion Inflow Following Recent Downturn

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    The past week was largely defined by the Bitcoin price climbing above $45,800 for the first time in over 20 months, marking a great start to the year. However, the premier cryptocurrency soon experienced a sharp price pullback due to negative news about the BTC spot (ETF). 

    Interestingly, the latest on-chain data has revealed that investors seem not to have completely lost faith in Bitcoin, the largest cryptocurrency by market capitalization.

    $2.5 Billion Flows Into Crypto Market Following Bitcoin Crash

    In a post on the X platform, crypto analyst Ali Martinez has offered on-chain insight into the aftermath of the crash that affected Bitcoin and the entire crypto market. The pundit noted in his post that a substantial amount of funds flooded back into the sector a day after the market downturn.

    This revelation was based on on-chain data from blockchain analytics platform Glassnode. The relevant indicator here is the “positive 30-day capital inflows”, which tracks the net influx of capital into the crypto market over a 30-day period.

    Chart showing aggregate market realized value net position change | Source: Ali_charts/X

    The chart above shows that a significant amount of funds have been entering the cryptocurrency market over the past few months. According to Glassnode’s data, more than $2.5 billion flowed back into the cryptocurrency market on Thursday, January 4, bringing the positive 30-day capital inflows to about $27.5 billion.

    This latest inflow of capital into the market offers insight into the positive shift in sentiment and market condition. It basically signals renewed investor confidence in crypto assets following a short period of uncertainty and price correction. 

    As of this writing, the Bitcoin price stands at $43,661, reflecting a 0.2% decline in the past 24 hours. However, the market leader seems to be recovering well, with $44,000 not too far out of reach.

    How BTC Holders Reacted To The Market Downturn

    A recent analysis shows how various classes of Bitcoin investors reacted to the negative ETF news and the subsequent decline. This evaluation was based on the Spent Output Age Bands USD (SOAB) indicator on the CryptoQuant analytics platform.

    The investors were divided into five classes based on the age of their holdings. According to the analysis, short-term holders who fell within the 1-week-to-1-month and 1-month-to-3-month classes exited the market at break-even and profits, respectively.  

    Meanwhile, long-term holders who purchased Bitcoin in the first half of 2023, falling between the 6-month-to-12-month class, dumped about $7.6 billion worth of BTC. The 1-year-to-5-year holder class, on the other hand, barely made a move after the market downturn.

    Bitcoin

    Bitcoin price at $43,690 on the daily timeframe | Source: BTCUSDT chart on TradingView

    Featured image from iStock, chart from TradingView

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Opeyemi Sule

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  • ETF or Halving: Analyst Doubles Down On Bullish Year For Bitcoin

    ETF or Halving: Analyst Doubles Down On Bullish Year For Bitcoin

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    Bitcoin (BTC) began 2024 on a positive note gaining by 3.18% in the first week of the year, according to data from CoinMarketCap. The premier cryptocurrency is expected to herald in a bull crypto season, with many investors expecting immediate approval of Bitcoin spot ETF proposals by various asset managers. 

    However, regardless of the decision of the US Securities and Exchange Commission (SEC) in the next few days, crypto analyst Ali Martinez believes Bitcoin is still poised for massive gains in 2024 as there is another bullish factor in play. 

    Bullish 2024 For Bitcoin With Or Without ETF Approval – Analyst

    In an X post on January 6, Martinez expressed much optimism about Bitcoin’s potential price performance in 2024. He stated that irrespective of developments in the Bitcoin spot ETF saga, BTC is still set for major price surges due to another bullish narrative – namely, the Bitcoin Halving. 

    To explain, the Bitcoin Halving is an event in which the block rewards for miners are reduced by 50%. It happens every four years, with the first occurrence being in 2012. The halving event causes a reduction in BTC supply in comparison to demand, causing scarcity which leads to a price increase. 

    Martinez highlighted this fact stating that historically, there has been a significant increase in Bitcoin’s price following past halvings. When the first halving occurred on November 28, 2012, BTC was trading at around $12. In the next year, the token had attained a new price of $1,000. 

    A similar phenomenon was noted after the second halving on July 9, 2016, at which Bitcoin was valued at $670. However, By December 2017, BTC had surged to an all-time high of $19,700. The third halving event took place in May 2020, with Bitcoin being traded at $8,821. By November 2021, BTC had surged by 700%, attaining its current all-time high of $68,783.

    Based on this price history, Martinez believes that BTC investors are well placed to reap large profits in the coming months as the next Bitcoin halving is set for April 2024. He postulates that these cyclical gains should remain constant, notwithstanding the SEC’s approval for Bitcoin spot ETF or not.

    BTC Price Overview

    At the time of writing, Bitcoin trades at $43,665, experiencing a slight decline of – 0.30% in the last 24 hours. On a larger scale, the leading cryptocurrency has demonstrated resilience over the past seven days, posting a noteworthy gain of 4.07%. 

    Over the last year, BTC’s performance has been remarkable, witnessing a substantial surge of 159.94%. However, amidst market fluctuations, there is a noticeable dip in daily trading volume, down by 22.25%, which is currently valued at $26.8 billion.

    BTC trading at $43, 691.10 on the hourly chart | Source: BTCUSDT chart on Tradingview.com

    Featured image from Mint, chart from Tradingview

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Semilore Faleti

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  • Bitcoin “Outlook Remains Bullish,” As Long As This Stays True: Analyst

    Bitcoin “Outlook Remains Bullish,” As Long As This Stays True: Analyst

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    An analyst has explained that the outlook for Bitcoin should remain bullish as long as the cryptocurrency’s price remains above this level.

    Bitcoin Has Strong On-Chain Support Above $41,800

    In a new post on X, analyst Ali talked about the various BTC support and resistance levels from an on-chain perspective. In on-chain analysis, the strength of any support or resistance level depends on the amount of Bitcoin that the investors bought at said level.

    The chart below shows what the distribution of the different BTC price ranges currently looks like based on the concentration of holder cost basis that they carry.

    How the various price ranges near the current spot price are looking like in terms of support and resistance | Source: @ali_charts on X

    As displayed in the above graph, the $41,800 to $43,100 range hosts the acquisition price of most Bitcoin out of all the price ranges listed. To be more specific, about 2.4 million addresses acquired 1 million BTC within this range.

    The cost basis is naturally of immense significance for any investor, as the spot price retesting can flip their profit-loss situation. As such, holders become more likely to show some move when a retest like this happens.

    A holder in profit before the retest might tend to buy more when the retest happens, as they might believe this same level that proved profitable earlier would do so again.

    On the other hand, loss holders might want to sell at their break-even level since they may fear the cryptocurrency going down again, putting them underwater again.

    These buying and selling moves aren’t enough to move the market when just a few investors are making them, but if a large number of investors have their cost basis inside a narrow range, the reaction could become significant.

    Since those above $41,800 to $43,100 range is dense with investors, it should be an essential on-chain range. The spot price is floating above the range so that these prices could act as a support barrier for the asset. Based on this, Ali explains, “as long as Bitcoin maintains its position above $41,800, the outlook remains bullish.”

    The chart shows that the Bitcoin ranges above the price aren’t carrying the cost basis of that many investors. This could imply that there isn’t much resistance ahead for the coin.

    The analyst notes that this lack of major resistance also strengthens the potential for the cryptocurrency to stay at the current levels or push towards the higher ones.

    BTC Price

    Bitcoin has been gradually making its way back up after the recent crash, with its price climbing towards the $43,800 mark. The below chart shows how the asset has performed during the last few days.

    Bitcoin Price Chart

    BTC has gone through a bit of a rollercoaster since the new year has started | Source: BTCUSD on TradingView

    Featured image from Shutterstock.com, charts from TradingView.com, IntoTheBlock.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Keshav Verma

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  • VanEck Will Donate 5% Of Bitcoin ETF Profits To Core Developers

    VanEck Will Donate 5% Of Bitcoin ETF Profits To Core Developers

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    Bitcoin ETF applicant VanEck has pledged to donate 5% of its fund’s profits to Bitcoin Core developers, pending approval to launch by the U.S. Securities and Exchange Commission (SEC).

    The commitment could serve as a major lifeline for developers of the first crypto network, who are known to suffer a dearth of funding or financial incentive for their work.

    VanEck’s Bitcoin Promise

    VanEck has been an active ETF and mutual fund manager since 1955, holding $76.4 billion in assets under management as of September 2023.

    “We’re not Bitcoin tourists at VanEck. We’re in it for the long haul,” wrote VanEck to X on Friday, adding that its pledge has already included a $10,000 donation to developers.

    “Your tireless dedication to decentralization and innovation is the cornerstone of the Bitcoin ecosystem, and we’re here to support it.” the firm added.

    VanEck’s donations will move through Brink, a non-profit that bridges donor money to Bitcoin code testers and maintainers.

    Brink’s fellowship and grant partners include major crypto exchanges like BitMEX, Kraken, and Coinbase. The largest pledge to date is from #startsmall – a philanthropic initiative launched by Twitter co-founder Jack Dorsey – which is currently disbursing $5 million to devs over a five year period.

    Unlike other networks, Bitcoin has no natural source of funding or protocol maintenance since its growth was never funded by an initial coin offering (ICO) or dedicated foundation.

    Over the past several years, multiple maintainers – those who review proposals to change Bitcoin’s code, called “commits” – have stepped down from their positions. They’ve also suffered legal pressure from the likes of Craig Wright, who claims to be Bitcoin’s pseudonymous creator Satoshi Nakamoto.

    Doing The Math On VanEck’s Pledge

    Bloomberg ETF analyst James Seyffart has predicted that Bitcoin ETFs will collectively absorb $10 billion worth of inflows within their first year of approval, which is expected within days.

    Assuming VanEck were to absorb 10% of market share against its flurry of competitors, that would mean its fund takes in $1 billion worth of BTC within a year.

    The fund hasn’t revealed its sponsor fee yet, but if it charged a 0.8% fee like what rivals Ark/21Shares and Valkyrie are aiming for, that would create $8 million in profit for the fund per year after year one.

    At a 5% donation rate, that means Bitcoin developers could enjoy $400,000 worth of donations for ten years. This doesn’t factor in growth in value of the fund’s BTC over the course of many years, which some analysts believe could reach $200,000 per coin by 2025.

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    Andrew Throuvalas

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  • BTC predictions roundup: How much can BTC surge post Bitcoin ETF approval? 

    BTC predictions roundup: How much can BTC surge post Bitcoin ETF approval? 

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    As the crypto industry braces for the potential approval of Bitcoin ETFs, the financial community is abuzz with predictions and analyses.

    The impending decision by the SEC has ignited discussions, drawing a line between Bitcoin as a speculative investment and a legitimate payment method. The outcomes of this decision could be a defining moment for Bitcoin’s future.

    A short stretch beyond $50k

    Some analysts predict that Bitcoin’s bull run post-ETF approval will be significant, but it might not be as extravagant as new all-time highs, as predicted by others. Mister Crypto, a notable analyst on X, sees a 5% to 10% surge in Bitcoin’s value following the Spot Bitcoin ETF’s approval. This uptick could propel Bitcoin beyond the $48,000 threshold and slowly build up towards its previous all-time high. Yet, this short-term forecast is tethered to various contingencies, including the ETF’s implementation pace and the actual market demand for the ETF. Potential sell-offs in Grayscale Bitcoin Trust (GBTC) could also significantly influence this rally.

    In a recent interview with CNBC, Ledger CEO Pascal Gauthier expressed a hopeful sentiment for 2024 and 2025, viewing them as the runway for a forthcoming bull run. This optimism is echoed by industry insiders and commentators, who predict a wide range of Bitcoin values for 2024, stretching from $60,000 to an ambitious $500,000. These forecasts are buoyed by two significant factors: the anticipated “halving” of Bitcoin and the potential ETF approval in the U.S.

    A potential leap beyond the much anticipated $100k? 

    James Mullarney, a popular crypto analyst YouTuber with over 450K subscribers, provided a more mathematical prediction of Bitcoin. Mullarney combined the 13 different Bitcoin prediction models from industry experts and financial firms in his recent analysis. His analysis predicted that BTC could be $150,000 by the end of 2024. 

    Cumberland DRW, the crypto division of trading giant DRW, is already gearing up for Bitcoin ETFs. They are onboarding issuers and sourcing Bitcoin, ensuring readiness for the influx of orders. Rob Strebel, head of relationship management at Cumberland DRW, emphasizes the market’s efficiency in absorbing substantial trading volumes, reflecting confidence in the market’s liquidity. Although Strebel did not provide any specific prediction to CNBC, he emphasized that ETF approval would trigger a massive inflow of institutional funds in the leading crypto. 

    Differing outlooks on a Bitcoin rally

    As we approach the SEC’s deadline for a verdict on Bitcoin ETFs, there’s palpable tension. The approval of these ETFs could fuel speculation, given the fresh avenues they open for investment. According to a report by Yahoo Finance, as many as 14 money managers are poised to launch their own spot Bitcoin ETFs. These developments could lead to Bitcoin’s assimilation into conventional investment portfolios like 401(k)s, IRAs, and pension plans, signaling a mainstream acceptance of the world’s preeminent cryptocurrency.

    Despite such optimism, many are unconvinced that a BTC price rally is imminent after ETF approvals. Crypto financial services platform Matrixport, which previously provided extremely bullish predictions on Bitcoin, turned bearish earlier this week and reported speculations on the SEC rejecting all current applications. This triggered a major liquidation in the market, wiping off $540 million in four hours. However, Bitcoin and the overall crypto market recovered shortly after. 

    Former BitMEX CEO Arthur Hayes also offers a contrasting perspective. In his essay “Signposts,” Hayes anticipates a significant correction in Bitcoin’s price, projecting a drop between 20% and 40%, especially if U.S.-listed spot Bitcoin ETFs start trading. This prediction casts a shadow on the optimistic outlooks, suggesting volatility in Bitcoin’s path ahead.

    Overall, the potential approval of Bitcoin ETFs stands as a pivotal event, poised to reshape the landscape of cryptocurrency investment. While some analysts predict a substantial surge, others caution about possible corrections. As the industry awaits the SEC’s decision, it remains clear that ETF approval will impact Bitcoin’s adoption and price significantly in the long-term. But how far the price ticker will fall continues to be speculated. 


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    Mohammad Shahidullah

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  • BlackRock $10 Million Bitcoin Purchase Will Happen Today, Expert Says SEC Is Backed Into A Corner

    BlackRock $10 Million Bitcoin Purchase Will Happen Today, Expert Says SEC Is Backed Into A Corner

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    The world’s largest asset manager, BlackRock, is set to make a significant Bitcoin purchase on January 5. This comes as Bloomberg analyst James Seyffart hinted that the Securities and Exchange Commission (SEC) has no choice but to approve the pending Spot Bitcoin ETFs finally. 

    BlackRock To Purchase $10 Million Worth Of Bitcoin

    As part of efforts to seed its Spot Bitcoin ETF, BlackRock will purchase $10 million worth of BTC on January 5. The asset manager had earlier scheduled this Bitcoin purchase for January 3. However, it was eventually postponed to this later date, possibly in a bid to ensure they gain all regulatory approvals and be fully compliant. 

    BlackRock had revealed how the sum of $10 million had come about in the latest amendment to its S-1 filing. The world’s largest asset manager had noted that the said sum was proceeds from the sale of its “Seed Creation Baskets.” The firm initially seeded its ETF back in October, with the fund’s Seed Capital Investor purchasing $100,000 in shares. 

    Bloomberg analyst James Seyffart had previously warned that Blackrock’s plans to seed their ETF with this amount doesn’t mean they are launching just yet. However, he remarked that there was a possibility that the asset manager was doing so in anticipation of an imminent launch.

    Meanwhile, it is also worth mentioning that BlackRock’s initial seed fund could eventually be outranked. Fellow issuer Bitwise revealed in their latest amendment to their Spot Bitcoin ETF that they could potentially seed their fund with up to $200 million if they eventually get approval from the SEC. 

    BTC bulls fail to hold $44,000 | Source: BTCUSD on Tradingview.com

    The SEC Is Backed Into A Corner

    Bloomberg analyst James Seyffart recently shared his thoughts on whether or not an approval order was going to come from the SEC soon enough. According to Cointelegraph, Seyffart stated that there was no way the Commission could get issuers to withdraw their application as they are already backed into a corner. 

    The analyst made this comment following his assertion that the regulator has run out of reasons to deny these Spot Bitcoin ETFs. He alluded to the Grayscale case, where the court ruled that the SEC’s reasons for denying the asset manager’s application were insufficient. With this in mind, Seyffart said that the SEC is likely to approve these funds soon enough. 

    These approvals could come as soon as next week, going by the analyst’s projection. Seyffart stated that he expects an official approval order to come between January 8 and 10. This is despite the recent rumors that the SEC could approve these funds before this week runs out. 

    Featured image from Finextra Research, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Scott Matherson

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  • These Events Will Create A Bitcoin Crash In March: Arthur Hayes

    These Events Will Create A Bitcoin Crash In March: Arthur Hayes

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    Arthur Hayes, the founder of BitMEX, in his latest essay, presents a foreboding prediction for the Bitcoin market in March, anticipating a severe correction of 30-40%. His detailed analysis, rooted in a deep understanding of market dynamics, outlines the complexities and driving factors behind this expected crash, respectively healthy but deep correction.

    Hayes begins his discourse with a cautionary reminder of the nascent state of the crypto bull market, warning enthusiasts not to be overly carried away. “The crypto bull market is in its early stages, and we must not get carried away with our enthusiasm,” he says, highlighting the uncertain journey towards the inevitable collapse of the fiat financial system.

    Why The Bitcoin Price Could Fall 40% In March

    His prediction revolves around three key financial events and indicators converging in March. Hayes first points to the anticipated decline in the Reverse Repo Program (RRP) Balance to a critical level of $200 billion, a scenario he believes will trigger market anxiety about future sources of dollar liquidity. He describes this threshold as a moment of reckoning, “When this number gets close to zero… the market will wonder what is next,” underscoring the gravity of this anticipated development.

    The second pivotal factor is the fate of the Bank Term Funding Program (BTFP), which is due to expire on March 12th. Hayes portrays this as a significant test for the financial system, speculating on the decision-making process of the US Treasury in the face of potential liquidity crises among banks. He articulates the market’s anticipatory stance, suggesting that “the market will start getting inquisitive many weeks before about whether or not the banks will continue receiving this lifeline.”

    The final piece in Hayes’ forecast is the Federal Reserve’s meeting on March 20th, where a rate cut is expected. This decision, in Hayes’ view, is crucial for setting market expectations and influencing the dynamics surrounding dollar liquidity provision by the Fed and the US Treasury Department.

    Hayes then delves deeper into his tactical trading strategy in response to these events, detailing his plans to short the crypto market using Bitcoin puts. He articulates his approach, saying, “I will look to buy a sizable put option position on Bitcoin around this time,” signaling his preparedness to leverage the anticipated market shift.

    An important aspect of Hayes’ analysis is the potential impact of the US-listed spot Bitcoin Exchange Traded Funds (ETFs). He argues that the anticipation of substantial fiat capital inflows into these spot ETFs could initially propel Bitcoin’s price to soaring highs. However, he warns that this upsurge could be followed by a dramatic correction, exacerbated by a liquidity squeeze.

    “Imagine if the anticipation of hundreds of billions of fiat flowing into these ETFs at a future date propels Bitcoin above $60,000,” he says, illustrating the potential for a steep decline. Hayes explains that a market already heightened by ETF speculation would be particularly vulnerable to a sharp correction, potentially worsening the downturn to 30-40% in the event of a liquidity crunch.

    How Hayes Will Trade This Scenario

    Hayes then shifts to discuss his tactical trading decisions in response to these indicators. He shares his plan to initially short the crypto market using Bitcoin puts, followed by a return to selling US Treasury bills and acquiring more Bitcoin and cryptocurrencies. In explaining his approach, Hayes states, “I will look to buy a sizable put option position on Bitcoin around this time,” indicating his readiness to capitalize on the predicted market downturn.

    Furthermore, Hayes details his strategy for Bitcoin puts, explaining the rationale behind choosing puts expiring on June 28th and his approach to selecting the strike price. He emphasizes the importance of timing and market dynamics, noting, “I expect Bitcoin to experience a healthy […] correction from whatever level it has attained by early March.”

    In his conclusion, Hayes contemplates various scenarios that could play out differently from his predictions. He considers the implications of a slower decline in the RRP, a potential extension of the BTFP by Yellen, or alternative outcomes of the Fed’s March meeting. He notes that each of these scenarios could lead to different market behaviors, necessitating adjustments in his trading approach.

    At press time, BTC traded at $43,940.

    BTC trades just below $44,000, 1-day chart | Source: BTCUSD on TradingView.com

    Featured image from YouTube / What Bitcoin Did, chart from TradingView.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Jake Simmons

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  • Bitcoin Price Analysis: Ascending Parallel Channel Pattern Points To $57,000 Target

    Bitcoin Price Analysis: Ascending Parallel Channel Pattern Points To $57,000 Target

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    As anticipation builds around the potential approval or rejection of spot Bitcoin (BTC) exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) on January 5, the Bitcoin price has witnessed a notable 2.7% recovery in the past 24 hours. 

    This development comes amidst growing speculation about the patterns that could drive the Bitcoin price to reclaim the highs lost during the bear market in 2022. 

    Notably, crypto analyst Ali Martinez has identified an ascending parallel channel as the governing pattern behind the Bitcoin price action since September 2023.

    Bitcoin Price Faces Crucial Test At $48,000

    According to Ali Martinez’s analysis, Bitcoin prices have exhibited a consistent pattern known as an ascending parallel channel. 

    This technical formation suggests that the BTC’s price has been trading within the confines of a channel characterized by an upper and lower boundary, as seen in the chart below.

    BTC’s ascending parallel channel pattern targets. Source: Ali Martinez on X

    BTC could experience further price movement within the defined boundaries if the ascending parallel channel pattern holds. 

    The price is expected to advance toward the upper boundary, which currently resides around $48,000. However, the Bitcoin price is anticipated to face resistance at this level and retrace towards the lower boundary at approximately $34,000. 

    Following the retracement, a rebound toward the upper boundary, potentially reaching around $57,000, could be expected.

    The upcoming decision by the SEC regarding spot Bitcoin ETF applications adds a layer of significance to Bitcoin’s price movement. The approval of Bitcoin ETFs has been a subject of great interest within the cryptocurrency community, as it can enhance liquidity and provide greater legitimacy to the cryptocurrency market. 

    While the outcome of the SEC decision remains uncertain, the ascending parallel channel pattern reveals a compelling technical perspective that could impact Bitcoin’s price trajectory.

    Critical Moment For BTC? 

    Supporting the upside potential of the Bitcoin price in Martinez’s analysis, crypto analyst Rekt Capital highlights the importance of BTC’s ability to establish a strong support level at $43,900.

    According to Rekt Capital’s analysis, Bitcoin is exhibiting promising signs as it strives to reclaim the top of the pattern at $43,900 as a support level. 

    Bitcoin
    Bitcoin’s price currently surpassing its nearest $43,900 resistance. Source: Rekt Capital on X

    This level holds importance in determining the cryptocurrency’s ability to sustain upward momentum. Rekt Capital suggests that a daily candle close above this resistance is essential for Bitcoin to make another attempt at moving higher.

    The successful establishment of $43,900 as a support level and a daily candle close above this resistance would signify a positive development for Bitcoin’s upside potential. 

    It would indicate a renewed bullish sentiment and potentially pave the way for further price appreciation. However, failure to overcome this resistance level and ending up as an upside wick could hinder Bitcoin’s ability to sustain upward momentum in the short term.

    Bitcoin price
    The daily chart shows BTC’s price recovery. Source: BTCUSDT on TradingView.com

    On Wednesday, Bitcoin trades at $44,000, followed by a news-driven dip toward the $40,800 level.

    Featured image from Shutterstock, chart from TradingView.com 

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Ronaldo Marquez

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  • This is How Bitcoin Can Reach $1 Million in a Year

    This is How Bitcoin Can Reach $1 Million in a Year

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    In a recent post on social media platform X, cryptocurrency analyst Bit Paine presented a compelling forecast for the value of Bitcoin (BTC) reaching $1 million by January 3, 2025.

    Paine provides an in-depth analysis, highlighting key factors that could drive this significant value increase.

    Analyst Predicts Potential Supply Shock in Bitcoin Market

    Paine’s analysis lies in the forthcoming five years, during which approximately 750,000 new Bitcoins are expected to be mined. Drawing from historical patterns, the analyst estimates that 20-30% of the existing Bitcoin supply will likely become available for sale during the upcoming bull market.

    However, Paine diverges from conventional expectations, positing a more conservative estimate of 10-15% due to several compelling reasons.

    These include the recent emergence from a prolonged bear market, the ascendance of Bitcoin maximalists (“maxi hodlers”), the diminishing significance of “crypto” as a generic asset class (with a reduced inclination to rotate funds into alternative cryptocurrencies or “alts”), and the increasing recognition of Bitcoin as a treasury-class asset.

    Factoring in these considerations, Paine anticipates an additional 2-6 million Bitcoins entering the market, bringing the total supply in circulation to approximately 2.75-6.75 million.

    The catalyst for the projected surge is the anticipated influx of capital into the Bitcoin market. Paine estimates $1-5 trillion of capital is poised to enter the market over the next five years, driven by the increasing accessibility of this asset to institutional and retail investors alike.

    Paine’s analysis aligns with the notion that most gains in the Bitcoin market typically occur within the first year following a halving event characterized by speculative fervor. Subsequently, a more gradual distribution of gains is expected.

    Bitcoin Surges Above $45,000 and Dumps Later

    Bitcoin surged past $45,000 on Tuesday, reaching its highest level since April 2022, as optimism surrounding the potential approval of exchange-traded spot Bitcoin funds fueled the market. The cryptocurrency reached a 21-month peak of $45,922, marking a strong start to the new year.

    Investor attention has been focused on the potential approval of a spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC). Such approval is anticipated to open the market to a broader investor base and attract significant investments.

    However, the landscape changed later during the day, as BTC slumped by $3,000. This came amid reports that the US securities regulator might actually reject all spot ETF applications in January, just like it has done countless times in the past.

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    Wayne Jones

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  • Happy 15th Birthday, Bitcoin: Here’s The Journey So Far

    Happy 15th Birthday, Bitcoin: Here’s The Journey So Far

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    On this day, 15 years ago, Satoshi Nakamoto mined the genesis block of the Bitcoin network, laying the foundation for the cryptocurrency industry.

    Since 2009, the community has celebrated Bitcoin’s birthday every January 3, reminiscing about one of the most significant moments in crypto history.

    Bitcoin’s 15th Anniversary

    The genesis block contains the first 50 BTC earned as a reward for the transaction, which was released on Sourceforge, a web-based service offering developers a centralized online location to control and manage free and open-source software projects. Sourceforge was the original repository for Bitcoin’s open-source code base before it was moved to GitHub.

    Due to the absence of a previous block to be referenced, the first 50 Bitcoins are unspendable and have remained in the transaction address.

    The block contains a message from Nakamoto quoting a headline from the UK’s Times newspaper: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.”

    The mysterious Bitcoin creator released the project’s whitepaper the year before in the aftermath of the 2008 financial crisis, considered the most severe economic fallout since the Great Depression in 1929. The Bitcoin concept introduced a pseudonymous, decentralized, and trustless financial system far from the reach of banks and intermediaries, which Nakamoto did not like.

    How Far Has BTC Come?

    Fifteen years down the line, BTC has altered the landscape of digital assets and the financial market as a whole. Bitcoin has evolved into a network with a market capitalization of more than $888 billion, leading an ecosystem worth $1.8 trillion while maintaining 52% dominance in the cryptoverse.

    Although BTC is currently worth around $43,000, its value once rose above $68,000. The asset has garnered the interest of governments, banks, traditional finance giants, corporations, and high-networth individuals, leading to the creation of several derivatives, including exchange-traded funds (ETFs).

    The crypto community anticipates the launch of the first spot Bitcoin ETF in the US, a feat that more than a dozen asset management firms are vying for. There is also the upcoming Bitcoin fourth halving set to reduce the production rate of BTC.

    Meanwhile, BTC finished 2023 as the best-performing asset with an increase of 160%, ahead of stock indexes, bonds, equities, and gold.

    The post Happy 15th Birthday, Bitcoin: Here’s The Journey So Far appeared first on CryptoPotato.

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    Mandy Williams

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  • Bitcoin Breaks Through Securities Barrier: Registered Funds Want Exposure To BTC

    Bitcoin Breaks Through Securities Barrier: Registered Funds Want Exposure To BTC

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    An interesting trend looks to be developing among institutional players as their interest in the flagship cryptocurrency, Bitcoin, continues to rise. This interest has in no small way been thanks to the frenzy around the Spot Bitcoin ETFs, which could be approved sooner than later.

    Other ETFs Considering Bitcoin As An Investment Option  

    Crypto commentator and music producer Marty Party recently drew the crypto community’s attention to an emerging trend among fund managers and their ETFs. He noted how these asset managers are amending the prospectus of funds they manage so they can gain exposure to Bitcoin. 

    These institutions are said to be looking to use 15% to 50% of assets under their management to gain exposure to BTC. One way they will be looking to achieve this is through the Spot Bitcoin ETFs that could potentially launch anytime soon. 

    Marty Party specifically highlighted the case of Advisors Preferred Trust, which is already looking to gain the SEC’s permission to invest up to 15% of its AuM in Bitcoin-related ETFs like Grayscale’s Bitcoin Trust (GBTC) and ProShares Bitcoin Strategy ETF. 

    MicroStrategy’s Executive Chairman and Co-founder, Michael Saylor, had previously hinted that something like this was going to happen soon enough. Then, he suggested that more institutional players were going to direct more of their capital to Bitcoin. 

    A rule that was implemented by the Financial Accounting Standards Board (FASB) has also paved the way for more companies like MicroStrategy to include BTC on their balance sheet. 

    The launch of Spot Bitcoin ETFs will also make it easier for these institutional investors to gain direct exposure to the flagship cryptocurrency. 

    For a long time now, those who had a prior interest in the crypto token have had to either invest in Bitcoin futures ETFs or other Bitcoin derivatives on exchanges like the Chicago Mercantile Exchange (CME). But this is changing with the potential approval of a Spot Bitcoin ETF.

    BTC price holds $45,000 | Source: BTCUSD on Tradingview.com

    Grayscale Leading In The “Cointucky Derby”

    As highlighted recently by Bloomberg Analyst James Seyffart, Grayscale looks to set the lead the way, assuming all pending Spot Bitcoin ETFs were approved simultaneously. This is because the asset manager has already established itself with GBTC and would likely have more capital than other issuers upon launch. 

    Bloomberg Analyst Eric Balchunas highlighted this fact and hinted that the Securities and Exchange Commission (SEC) could decide not to let Grayscale launch on day one because of this. If that doesn’t happen and all funds launch simultaneously, then Grayscale is likely to have a sort of ‘first mover advantage.’

    However, other asset managers will be looking to assert their dominance by adopting different strategies. One such strategy will be these issuers undercutting themselves in terms of the fees they will charge to manage their respective funds. Invesco already made it known that they will be waiving fees for the first six months and the first $5 billion in assets. 

    Featured image from Finra, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Scott Matherson

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  • Michael Saylor to Sell Over $200M Worth of MicroStrategy Shares

    Michael Saylor to Sell Over $200M Worth of MicroStrategy Shares

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    Michael Saylor, the founder and former CEO of enterprise software firm MicroStrategy, is selling $216 million worth of MSTR stock from his personal holdings.

    In contrast, the Bitcoin supporter has not informed that he will be disposing of any of his BTC stash.

    Stock Value Nearly Quadrupled YoY

    Microstrategy has famously bought Bitcoin whenever possible, on principle, due to Saylor’s belief that the original cryptocurrency is overall less susceptible than cash reserves when it comes to dealing with the loss of asset value.

    “Ultimately, it’s not easy to see what better strategy there might be. We found by simply acquiring and holding Bitcoin we can outperform our peers in the enterprise software business. The regulatory environment for Bitcoin is improving. As capital flows out of the crypto industry, it flows into Bitcoin.”

    The last Bitcoin purchase of the year was announced on the 27th of December.

    The above figure – which also makes MicroStrategy the largest corporate holder of BTC – was behind MSTR’s recent rally, which jumped to over $685.

    The stock marked a 372% increase since the beginning of 2022, thus bringing its value to its highest levels since December 2021, right before crypto winter.

    Now, Saylor is looking to profit off of his HODLing habits.

    A total of 315,000 MSTR stocks will be going on sale at NASDAQ, although it’s possible that even more will be sold later. According to Bloomberg, it was stated in an earlier announcement that up to 400,000 MSTR stocks would be sold between the 2nd of January and the end of April.

    However, it’s equally possible that the co-founder of MicroStrategy simply decided to retain more of his own stock than previously decided, owing to Bitcoin’s continuous bull run in recent weeks.

    An Alternative to ETFs

    As Grayscale, Blackrock, and other companies in the financial industries continue to wait for the approval of the SEC concerning their proposed Bitcoin ETFs, MicroStrategy still has the option of presenting itself as a BTC ETF that also produces software, given that the vast majority of the firm’s financial reserves have been held in the oldest cryptocurrency for several years now.

    As a result, the value of MSTR shares closely follows that of BTC, albeit with variations due to the reception of the software produced by the company, offering an alternative way of buying into the BTC circuit for institutional clients who do not want to deal with a non-traditional financial system.

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    Cristian Lipciuc

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  • Dump Incoming? Miners Offload BTC To Exchanges

    Dump Incoming? Miners Offload BTC To Exchanges

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    Bitcoin (BTC) miners have suddenly begun offloading their BTC holdings to crypto exchanges, signaling a potential reversal of months of upward price momentum.

    Per a Sunday post from SignalQuant – an author for Bitcoin analytics firm CryptoQuant – paying attention to short-term miner behavior may be necessary for “wise investment.”

    The Meaning Of Miner Deposits

    Miners are the first recipients of all new BTC issued by the Bitcoin network, as well as all transaction fees paid by users. As such, they are the ultimate dictators of whether new coins enter the market’s circulating supply, or remain dormant.

    “Miners have historically been one of the largest whales, and when they deposit big amounts of BTC to exchanges, the price experiences significant downward pressure,” wrote SignalQuant in his analysis.

    CryptoQuant voters unanimously voted for miners’ sale of coins as a bearish indicator.

    BTC Price VS Miner Deposits. Source: CryptoQuant

    The analyst referenced mid-May of 2023 when a surge in miner deposits was followed by a gradual slide in Bitcoin’s price from rough $27,000 to $25,500 by mid-June. This took place after a two-month-long Bitcoin rally above $30,000, inspired by a combination of U.S. bank failures and excitement over Ordinals.

    Today, BTC faces a similar situation: having now rallied beyond $45,000 amid excitement for imminent Bitcoin spot ETF approvals, miners have offloaded hundreds of millions of dollars in BTC over the past week.

    The selloff is the largest since May and reflects a similar sign of profit taking from miners during a period of especially lucrative BTC prices.

    Likewise, it also follows a period of high Ordinals activity, which has driven up network transaction fees and given miners an all-new major source of profit. As of January, the world’s largest miners are averaging 1.73 BTC per block in fees – a 27% bonus on their standard 6.25 BTC block subsidy.

    Late last month, Bitcoin crossed $100 million in cumulative fees.

    Is Bitcoin About To Explode?

    Contrary to SignalQuant, Matrixport recently posited that Bitcoin could surge beyond $50,000 this month after ETF approvals invite a wave of capital in search of BTC.

    “Institutional investors cannot afford to miss out on any potential rally again and, therefore, have to buy immediately when the markets open for trading in 2024,” wrote the crypto platform on Monday. “We expect an immediate rally that once again catches investors off-guard.”

    By the end of the year, Matrixport has suggested Bitcoin could reach $125,000 – much like Standard Chartered’s $120,000 price prediction last year.

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    Andrew Throuvalas

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  • Bitcoin tops $45,000 for the first time since April 2022 as crypto rally continues

    Bitcoin tops $45,000 for the first time since April 2022 as crypto rally continues

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    Bitcoin surged to kick off 2024, topping $45,000 for the first time since April 2022 as investor confidence in a potential bitcoin exchange-traded fund approval continued to build.

    The world’s largest cryptocurrency hit an intraday high of $45,913.30 early Tuesday morning, according to Coin Metrics. That was its highest level since April 5, 2022, and the first time it has traded above the $45,000 mark since then. It was last higher by 3%, trading at $45,045.65.

    The move comes amid growing excitement among traders that the U.S. could approve the first bitcoin ETF. This would allow investors to buy a product that tracks the price of bitcoin without having to own the cryptocurrency directly, likely appealing to larger institutional investors.

    On Friday, BlackRock and other potential issuers updated the registration forms for their proposed bitcoin ETFs, including names of authorized participants. Investors are reading that extra detail as evidence that a decision by the U.S. Securities and Exchange Commission is coming soon. Many industry experts expect the funds to be approved in January.

    The continued price gains for bitcoin come off the back of the bumper of 2023, when the price of the digital coin rose 157% — and many expect the bold rises to continue.

    Investors have high hopes for bitcoin in 2024. A decision on an ETF is widely expected to come sometime in January. Shortly after, in the spring, the Bitcoin halving is expected to take place, an event that historically has preceded steep price rises. Plus, Fed officials are anticipating at least three interest rate cuts this year after almost two years of hikes that have hurt the cryptocurrency.

    Other cryptocurrencies also rallied overnight into Tuesday. Ether traded at around $2,387, up around 4%, while Solana surged 7% to around $113.

    — CNBC’s Jesse Pound contributed to this report.

    Don’t miss these stories from CNBC PRO:

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  • Bitcoin Road To Record Heights: Analysts Forecast Post-Halving Surge

    Bitcoin Road To Record Heights: Analysts Forecast Post-Halving Surge

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    Analysts have recently focused on Bitcoin’s potential trajectory after its anticipated halving event. Adrian Zduńczyk, a prominent crypto trader, has shared a bullish outlook, suggesting that Bitcoin could soar to new all-time highs post-halving.

    Zduńczyk’s projections shared on X, hinge on favorable market conditions and pivotal financial events.

    Bitcoin’s Bright Outlook

    The beginning of 2024 has already seen a positive trend for Bitcoin, reflecting a growing confidence among investors. Zduńczyk links this optimism to a parallel movement in traditional markets, particularly the S&P 500, expected to deliver a 12.8% return in January.

    This positive trend in the stock market is seen as a potential catalyst by analysts for increased capital inflows into Bitcoin, reinforcing the correlation between the cryptocurrency and US stock markets.

    The upcoming halving event in April, a significant occurrence in the Bitcoin ecosystem, is another factor fueling Zduńczyk’s bullish predictions. This event, which halves the reward for Bitcoin mining, historically triggers a surge in Bitcoin’s price by limiting the new supply entering circulation.

    Analysts like Zduńczyk view this as a key moment that could propel Bitcoin to unprecedented heights. Adding to this optimistic scenario is the mounting speculation surrounding the approval of a spot Bitcoin ETF in the United States.

    According to Zduńczyk, this approval could channel trillions of dollars into the crypto market, marking a significant milestone in institutional adoption.

    Experts anticipate that the US Securities and Exchange Commission (SEC) may greenlight such an ETF soon, which could have profound implications for Bitcoin’s valuation and market dynamics.

    Bitcoin 2024 Trajectory: Analysts Project Sky-High Valuations

    Forecasts for Bitcoin’s price in the wake of the upcoming halving and spot Bitcoin ETF approval in the US vary, with some analysts setting ambitious targets. James Butterfill of CoinShares predicts a potential increase to $80,000, while Antoni Trenchev of Nexo foresees a rise to $100,000.

    Venture capital firm CoinFund, through managing partner Seth Ginns, sets an even loftier expectation, projecting Bitcoin’s value to range between $250,000 and $500,000 in 2024.

    Ginns attributes this to a combination of factors, including the anticipated spot ETF approval in the US and a diminishing correlation with traditional economic indicators like the dollar and real yields.

    Bitcoin is experiencing a bullish trend, surpassing a significant threshold by trading above $45,000 for the first time since April 2022. The asset has seen a 6% increase in the past 24 hours and a 6.1% rise over the past week.

    Bitcoin (BTC) price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com

    Notably, BTC trading volume has witnessed a substantial spike, escalating from $13 billion on Monday to over $33 billion today.

    Featured image from Unsplash, Chart from TradingView

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Samuel Edyme

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  • Corrupt Chinese officials exploit crypto for illicit cross-border transactions

    Corrupt Chinese officials exploit crypto for illicit cross-border transactions

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    Chinese media are repeating concerns about the use of cryptocurrencies to facilitate corruption.

    Local media published a report entitled “Virtual Currency Electronic Gift Cards Open New Channels for Corruption Crimes and Benefit Transfer.” It states that cryptocurrencies, particularly Bitcoin (BTC), are opening up new channels for corruption and benefit transfer in China.

    In particular, incidents of bribery through means such as red packet transfers and electronic gift cards are becoming increasingly common, and these transactions are difficult to trace due to their secretive nature in the digital sphere.

    “Gaps and loopholes in relevant systems and mechanisms provide opportunities for some people to seek personal gain and rent-seeking with power. Under such circumstances, if officials do not have a strong sense of integrity and self-discipline and are not determined enough to fight corruption, they can easily slip into the abyss of corruption.”

    Peng Xinlin, professor at Beijing Normal University

    According to Chinese media, what is needed now is to understand and effectively counter the evolving threats posed by cryptocurrency corruption through strategic legislative and technological solutions.

    In September 2021, Chinese authorities declared all transactions with Bitcoin and other cryptocurrencies illegal and imposed a complete ban on them. At the same time, the Chinese authorities are actively developing the digital yuan.

    China has been testing the digital yuan for three years. The tests occurred in Shenzhen, Suzhou, Xiong’an, Chengdu, Shanghai, Hainan, Changsha, Xi’an, Qingdao, Dalian and the Winter Olympics area. These cities will continue to use the tool.


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    Anna Kharton

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  • The Reason Bitcoin's Price Skyrocketed Above $45K

    The Reason Bitcoin's Price Skyrocketed Above $45K

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    Bitcoin has gained 7.2% over the past 24 hours to reach an intraday high of $45,498 during the Tuesday morning Asian trading session. Prices remained flat over the holiday weekend but have started to move as the first working week of the new year begins.

    The big move has pushed the world’s largest digital asset to its highest level since March 2022, almost two years ago.

    The move also means that BTC is now just 34% down from its all-time high of $69,000 in November 2021.

    Welcome to 2024, The Year of #Bitcoin. pic.twitter.com/wHCyH8RHJa

    — Michael Saylor (@saylor) January 1, 2024

    ETF Hype Driving BTC

    On Jan. 2, Cameron Winklevoss said “Bitcoin is already looking like it will be the best-performing asset of the year (same as last year).” Custodia Bank CEO Caitlin Long added, “Bitcoin is *already* the best-performing asset of 2024!”

    Moreover, trader and analyst “Nebraskangooner” eyed $48,000 for the next leg up should the momentum continue.

    It appears that the momentum is still being driven by spot ETF hype.

    Fox Business reporter Charles Gasparino said that the SEC still needs to go through paperwork for spot Bitcoin ETFs, so “the announcement likely toward week’s end,”

    Meanwhile, crypto YouTuber Lark Davis added, “rumours flying that the spot Bitcoin ETF will be approved this week. Get ready.”

    Max Keiser was equally bullish, commenting on Jan. 2:

    “As I’ve been saying, the recent pullback in rates is temporary. Bonds are in a secular bear market. Stocks are overbought. Real estate is in a bubble. The only safe haven in the world where your property can be stored without fear of confiscation is Bitcoin.”

    ETF experts have eyed January 10 for potential approvals, but an SEC announcement could come at the end of this week.

    Elsewhere on Crypto Markets

    The big Bitcoin move has pushed total market capitalization to its highest level since May 2022 at $1.82 trillion.

    Crypto markets are now just 40% down from their peak levels back in November 2021, when the total cap topped $3 trillion.

    Ethereum prices are also moving with a 4.7% gain to reach $2,385 at the time of writing. Other altcoins getting a big lift today include Solana, Cardano, Avalanche, Polkadot, and Chainlink.

    The post The Reason Bitcoin’s Price Skyrocketed Above $45K appeared first on CryptoPotato.

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    Martin Young

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  • Crypto Hedge Funds Experience Recovery, Optimistic for 2024 Growth

    Crypto Hedge Funds Experience Recovery, Optimistic for 2024 Growth

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    Cryptocurrency hedge funds have generated an average return of 44% this year through December 20, marking a rebound from a 52% loss in 2022, ranking as the best among 29 strategies monitored.

    They have weathered a challenging 2022 and are experiencing a recovery, and many are anticipating a prosperous 2024.

    Crypto Hedge Funds Recover

    Pantera Capital, led by industry veteran Dan Morehead, experienced a significant rebound, with its liquid-token fund surging nearly 80% by mid-December. This comes after an 80% slump in 2022. Similarly, Chainview Capital, overseen by 31-year-old Dan Slavin, doubled its performance following an 18% decline in the previous year.

    Stoka Global LP, specializing in altcoins, also achieved an impressive gain of 268% by November 30, according to founder Naveen Choudary, a former tech investment banker at Goldman Sachs Group Inc.

    While the average performance of cryptocurrency hedge funds didn’t match Bitcoin’s over 150% rally this year, the positive reversal is considered uplifting news for an industry still recovering from challenges, including the collapse of FTX in the previous year. The fallout from FTX, redemptions, and banking challenges resulted in the demise of approximately one-third of all crypto hedge funds.

    However, despite this resurgence, the average performance still lags behind Bitcoin’s impressive gain in 2023 by approximately 120 percentage points. Moreover, the index falls short when compared to passive crypto funds, which, on average, recorded returns of around 265% in the past year.

    Crypto Hedge Fund Managers Optimistic About 2024

    Greg Moritz, the co-founder and COO of Alt-Tab Capital, anticipates a positive trajectory for the crypto market. He foresees a boost driven by a convergence of macroeconomic and industry-specific factors, including the stabilization of inflation, the Federal Reserve’s shift away from rate hikes, and the upcoming Bitcoin halving, expected to reduce the cryptocurrency’s supply.

    Dan Slavin, the founder of Chainview Capital, expressed optimism about a potential resurgence of token mania in the crypto market, drawing parallels to the mood experienced three years ago when Bitcoin surged to record highs. As the leading token continues its upward trajectory, prospective investors increasingly engage with fund managers, and hedging strategies remain cost-effective.

    Describing the year as a “dream,” Slavin plans to expand his team, transforming the existing “two-man show.” Pantera Capital’s liquid-token fund, led by Cosmo Jiang, positions itself for a bullish ride in 2024, particularly with altcoins. Historically, altcoins have outperformed during the latter stages of a market rally following Bitcoin’s ascent.

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    Wayne Jones

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