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Tag: Bitcoin

  • Bitcoin Lightning Network transfer capacity continues growing

    Bitcoin Lightning Network transfer capacity continues growing

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    The capacity of the Bitcoin Lightning Network to facilitate transactions continues on an upward trajectory, nearing all-time highs.

    According to data from LookIntoBitcoin, a site that tracks Lightning Network statistics, the network can handle over $210 million of transfers, or approximately 4,980 Bitcoin (BTC).

    Bitcoin Lightning Capacity chart. | Source: LookIntoBitcoin

    This approaches the record high of $223 million reported on Dec. 6. Lightning saw its highest-ever capacity in July when approximately 5,400 BTC could be transferred via the network. This metric nearly reached similar levels again last November before dropping off slightly.

    Lightning Network’s capacity has grown impressively since its inception in early 2018. Despite fluctuating activity in broader crypto markets amid the 2022-2023 bear market, the Layer 2 network continues to demonstrate a consistent uptrend. Proponents believe Lightning enables faster, cheaper BTC transactions and could be key for greater retail adoption of Bitcoin payments.

    Critics argue that the Lightning Network remains highly technical and difficult for average users, with centralization risks due to its graph-based topology. Regardless, network capacity metrics indicate sustained developer and user activity even as the crypto sector faces headwinds.

    While the USD value of maximum Lightning transfers closely trails last year’s peak, the stability of the uptrend points toward the increasing legitimacy of Layer 2 scaling solutions for Bitcoin. As adoption spreads, the decentralized payment network appears positioned to challenge all-time high transfer capacity in the year ahead.


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    Adrian Zmudzinski

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  • Bitcoin 2024 Forecast: From $60,000 To $500,000, Top Experts Share Bold Predictions

    Bitcoin 2024 Forecast: From $60,000 To $500,000, Top Experts Share Bold Predictions

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    As the crypto market marches into 2024, various industry experts and financial analysts have recently cast their respective Bitcoin (BTC) predictions for the year.

    Among the voices offering insights, Mark Mobius of Mobius Capital Partners LLP stands out for his historically accurate predictions.

    Having correctly forecasted Bitcoin’s fall to $20,000, Mobius now envisions a climb to $60,000 by the year’s end. This optimism is further mirrored by Youwei Yang, chief economist at crypto mining firm Bit Mining, who projects a high of $75,000 for Bitcoin in 2024.

    Yang’s predictions hinge on a combination of the upcoming Bitcoin “halving” event, which is expected to constrain supply, and the potential inflow of institutional investments following a spot ETF approval in the US.

    The Catalysts Behind The Predictions

    The notion of a spot Bitcoin ETF approval in the US is a central theme in these bullish forecasts. The expectation of such an event has stirred excitement within the crypto community, drawing parallels to similar financial instruments and their impact on associated markets.

    James Butterfill, head of research at CoinShares, believes that a spot ETF approval in the US would mark a “significant change” in the digital asset landscape, potentially integrating cryptocurrencies more closely with traditional financial markets. As for the prediction, Butterfill noted:

    Estimations suggest that a 20% investment increase from current assets under management (around US$3 billion) could potentially propel Bitcoin prices to US$80,000.

    Butterfill additionally pointed out that potential interest rate reductions by central banks might significantly contribute to an increase in Bitcoin’s value.

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

    2024 Bitcoin Predictions above $100,000

    Raising the prediction bar, Antoni Trenchev, co-founder of the cryptocurrency exchange Nexo and a well-known Bitcoin advocate, maintains his prediction that Bitcoin could soar to $100,000 in 2024. Despite initially projecting this target for 2022, Bitcoin’s price took a downturn instead of hitting the anticipated high.

    Reaffirming his stance, Trenchev attributes his renewed $100,000 forecast for 2024 to the upcoming Bitcoin halving and the possible green light for several spot Bitcoin ETFs in the US. Trenchev anticipates that these two factors will act as a dual catalyst, driving Bitcoin’s value to the $100,000 mark, with prospects of even higher peaks in 2025.

    Trenchev, however, cautions about the volatile journey towards this target, predicting fluctuations and significant dips along the way.

    In addition to Trenchev’s projections, Standard Chartered and University of Sussex finance professor Carol Alexander also envisions Bitcoin potentially hitting $100,000 in 2024. Alexander suggests this is contingent on the capacity of market maker algorithms from major financial institutions like Blackrock and Fidelity to moderate market volatility.

    Echoing these sentiments, Matrixport, a firm specializing in crypto financial services, projects that Bitcoin will hit $125,000 by the end of the year. The firm noted:

    Based on our inflation model, the macro environment is expected to remain a robust tailwind for crypto. Another decline in inflation is anticipated, prompting the Federal Reserve to likely initiate interest rate cuts. Combined with geopolitical crosscurrents, this healthy dose of monetary support should push Bitcoin to new highs in 2024.

    Venture capital firm CoinFund offers one of the most ambitious predictions, with managing partner Seth Ginns forecasting Bitcoin’s value to range between $250,000 and $500,000 in 2024.

    Ginns attributes this potential surge to factors like the declining correlation with the dollar and real yields, the anticipated impact of newly launched BTC spot ETFs in the US, and the excitement over possible ETH spot ETFs.

    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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  • Spot bitcoin ETFs are coming, but not as soon as their advocates think

    Spot bitcoin ETFs are coming, but not as soon as their advocates think

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    The approval of spot bitcoin ETFs will be a key step forward but it’s unlikely that the bigger regulatory picture will be resolved any time soon in the United States, write Steve Scott and AJ Nary, of BitGo.

    Konstantin Postumitenko/Prostock-studio – stock.adobe.com

    The approval of a spot bitcoin exchange-traded fund (ETF) is almost certainly a matter of “when” rather than “if.” Yet, bitcoin ETF approvals likely won’t come as soon as many people in the crypto industry would like to believe. 

    Why? Another round of application rejections is likely given the continued lack of clear market structure that led to the downfall of cryptocurrency exchange FTX earlier last year. In other words, the lack of separation of custody and trading will continue to serve as a stumbling block for approval until it is fully addressed. To change that trajectory, ETF applicants will likely need to demonstrate to the Securities and Exchange Commission that their assets will be custodied with one provider — ideally with a qualified custodian — and traded using a different entity. 

    So, moving beyond the hype into reality, we won’t see a bitcoin ETF approved until this market structure is reflected in the applications submitted to the SEC.

    Whichever application is approved first will almost certainly help that firm to gain significant market share of the new product and its associated liquidity, which could total in the hundreds of billions of dollars. So, money managers have a clear and vested interest in getting the initial approval. 

    The SEC approved the first bitcoin futures ETF in October 2021, raising hopes for a rapid approval of the related investment vehicle — spot bitcoin ETFs — but a speedy approval didn’t take place. Since then, numerous money managers have applied for approval with two of the front-runners — BlackRock and Grayscale Investments — gaining large amounts of the news coverage.

    In June 2023, BlackRock, the world’s largest money manager with $9T+ in assets under management, submitted an application that changed the trajectory by including a surveillance-sharing agreement with Nasdaq to address SEC concerns. Because of their experience with the ETF product and how they’ve only had one application rejected, people in the industry are watching to see if their approach works. Since this application was submitted, many other well-known investment management companies have since filed spot bitcoin ETF applications that follow BlackRock’s model. 

    Grayscale, the world’s largest crypto asset manager by assets under management, is also garnering plenty of attention in the news. After the SEC rejected an application from them for a spot bitcoin ETF because of price discovery issues — and after a court ruled in favor of Grayscale — the SEC has indicated that they will not challenge that court ruling.

    Grayscale is taking an uplist approach as they continue to seek approval, which would involve moving their securities listings from an off-brand stock exchange to one in the mainstream: from the OTCQX to the NYSE. The advantage of this strategy: Grayscale gets its spot bitcoin ETF to market more quickly and could help them to gain the bulk of the initial liquidity flowing into the new market product. 

    Regardless of which asset management company gains first approval — which, whoever it is, will require the separation of custody and trading functions — a group of investment companies’ applications for spot bitcoin ETFs that satisfy this requirement could be approved in rapid succession or even all at once. Predicting how quickly this will occur is a purely speculatory exercise.

    Approval for spot bitcoin ETFs will be an important step forward for crypto to become more enmeshed in the mainstream investment ecosystem and to validate crypto’s place within the broader financial system. ETFs are popular investment vehicles, more affordable than many other options and less complicated than ETF futures with levels of liquidity that many investors desire — and spot bitcoin ETFs can serve as a seamless and secure entry point for investors who are new to crypto and can create a new way to diversify portfolios. A spot bitcoin ETF will be a security, making it easy to buy and sell without the investor needing to hold the actual bitcoin.

    Some investors will likely stick with this connection point to crypto while others will expand their digital asset investments. They may stretch their exposure through spot ethereum ETFs upon their approval along with other digital asset investment opportunities. 

    The approval of spot bitcoin ETFs will be a key step forward but it’s unlikely that the bigger regulatory picture will be resolved any time soon in the United States. Because bitcoin is the only digital asset considered a commodity at this time, a spot bitcoin ETF won’t likely pave a quick path to, say, an ETF basket of crypto assets. But it will be an ideal first step, giving advisors and investors a chance to make the transition into this new asset class — crypto in the form of bitcoin — in a familiar vehicle: ETFs.

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    Steve Scott

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  • SBF's Conviction, SEC's Legal Defeats Against Ripple, Binance's New CEO: Major Crypto Events That Dominated 2023

    SBF's Conviction, SEC's Legal Defeats Against Ripple, Binance's New CEO: Major Crypto Events That Dominated 2023

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    What an eventful year it has been for the crypto industry!

    With 2023 coming to an end, the cryptocurrency space has had its share of battles and victories, all of which continue to shape an industry that, though still growing, has managed to make a mark in the global financial sector.

    This year, regulators came down hard on key players in the market, one of the biggest and most influential CEOs pleaded guilty to a criminal charge, and the hype around a spot Bitcoin exchange-traded fund (ETF) intensified following applications from major financial institutions.

    We now go further to explore some of the major events that made headlines in 2023.

    Bank Collapses That Affected Crypto Companies

    Silicon Valley Bank (SVB), Signature Bank, and Silvergate, which catered to crypto businesses and tech startups, fell apart within a week in March in what was described as one of the major collapses to rock the American banking sector.

    It all started with Silvergate Bank, which revealed that it was struggling to stay in operation after reporting a $1 billion loss in the fourth quarter of 2022 following the collapse of the once-cryptocurrency exchange giant FTX. Days after, the financial institution announced the closure of its Silvergate Exchange Network (SEN) – an instant settlement service that allowed crypto clients to make payments 24/7 – stating that the move was a “risk-based decision.”

    Silvergate eventually went into voluntary liquidation even though it was solvent. Amid the bank’s crisis at the time, crypto heavyweights, such as Huobi and Coinbase, cut ties with Silvergate. A few days later, the California Department of Financial Protection and Innovation closed down SVB, which mostly served the tech industry, becoming the largest bank in the United States to fail after Washington Mutual Bank in 2008.

    SVB experienced a bank run after depositors made huge withdrawals. Furthermore, banking Regulators shut down the crypto-friendly Signature Bank, which saw panic from customers after SVB’s fall, resulting in major stock sell-offs and massive outflows.

    The collapses, meanwhile, had a significant impact on crypto companies, with one of the biggest clients being Circle. The USDC stablecoin issuer revealed that it held part of its cash reserves in various US financial institutions, including SVB, Silvergate, and Signature banks, with over $3 billion in SVB.

    The USDC temporarily depegged as a result of SVB’s failure. Other crypto companies that had exposure to SVB and Signature included Ripple, BlockFi, Coinbase, and Paxos.

    The Inscriptions Craze

    First started on the Bitcoin network, the inscription mania also found its way to Ethereum and Ethereum Virtual Machine (EVM) chains.

    Inscriptions, simply put, are data files embedded on the blockchain. The fad started on the Bitcoin blockchain with Bitcoin Ordinals, which, similar to non-fungible tokens (NFTs), can be inscribed on a satoshi – the smallest denomination of Bitcoin (BTC).

    The ordinals craze prompted a surge in transactions on the Bitcoin network. But the trend has also caused network congestion, along with high fees.

    Meanwhile, inscriptions went beyond the Bitcoin network when developers found a way to deploy inscriptions on Ethereum and other blockchains beginning in November. Inscriptions on Ethereum and EMV-compatible chains are embedded in transaction call data.

    According to data from Etherscan in December, a spike in transaction activity on EVM chains was majorly attributed to inscriptions.

    However, Bitcoin Ordinals, especially, have not been without criticism, with maximalists labeling the trend as spam and a scam. Bitcoin Core developer Luke Dashjr stated that Ordinals creators were exploiting a vulnerability in Bitcoin Core to spam the blockchain. The developer also believes that ordinals are an attack on Bitcoin.

    Binance and Coinbase Slammed With SEC Lawsuit

    In June, the US Securities and Exchange Commission (SEC) went after two of the biggest cryptocurrency exchanges – Binance and Coinbase. According to the regulator, in its lawsuits against both companies, which were each filed within 24 hours, both firms violated securities laws and offered assets for trading deemed as securities.

    However, Binance and Coinbase denied the SEC’s claims, with both exchanges seeking to dismiss the regulator’s lawsuits. Binance.US, the American affiliate of the international exchange Binance, trimmed down its workforce as the company anticipated a long and expensive legal battle with the SEC.

    Ripple’s Victories Against the SEC

    A month after the SEC’s lawsuit against Binance and Coinbase, another crypto company, which has been involved in a lengthy legal fight with the regulator, scored a major win in July.

    In December 2020, the SEC sued Ripple Labs, the company behind the XRP token, for conducting a $1.3 billion unregistered securities offering through its sale of XRP. Ripple and its CEO, Brad Garlinghouse, fought back against the allegation, maintaining that the firm did not commit any crime.

    A partial victory came for Ripple in July 2023 after Judge Analisa Torres ruled that XRP sales on public crypto exchanges did not violate securities laws. However, Judge Torres stated that the sale of XRP directly to sophisticated investors violated securities laws.

    Ripple scored another win in October after Judge Torress dismissed the SEC’s appeal against the judge’s decision in July. A third victory came for the company in the same month after the securities watchdog dropped its charges against Ripple’s top executives — Brad Garlinghouse and Chris Larsen.

    BlackRock’s Spot Bitcoin ETF Filing

    BlackRock, the world’s largest asset manager with nearly $10 trillion in assets, made headlines in June after the company filed for a spot Bitcoin exchange-traded fund (ETF) with the SEC. Following BlackRock’s filing, other companies such as Fidelity Digital, WisdomTree, Invesco, and VanEck resubmitted their applications.

    The SEC has yet to approve any spot Bitcoin ETF in the United States, with the regulator only favoring Bitcoin futures ETFs. However, there have been renewed hopes of a possible spot BTC ETF, with reports stating that discussions between potential issuers and the SEC have reached an advanced stage.

    Meanwhile, ETF applicants, investors, and the broader crypto community have set their sights on deadlines between Jan. 5th and 10th, 2024 deadline, with the hope the US will finally have a spot Bitcoin ETF product after years of delays and rejections.

    Worldcoin: The Crypto Iris-Scanning Project

    Worldcoin, co-founded by OpenAI CEO Sam Altman, launched its WLD token in July 2023. However, the project has faced criticisms for its iris-scanning feature, which users will undergo to get WLD tokens.

    Regulatory authorities in France, the United Kingdom,  Germany, and Argentina raised privacy concerns and initiated investigations into the project. Kenya, on the other hand, suspended Worldcoin activities in the country.

    Amid regulatory scrutiny, recent reports stated that Worldcoin quietly discontinued its orb verification for offline users in India, Brazil, and France. Meanwhile, the project expanded into Singapore, allowing users to “verify their unique humanness at an Orb.”

    Grayscale’s Win Against the SEC

    After its defeat to Ripple, the SEC suffered another loss in a legal case involving asset management firm Grayscale. The latter sued the Commission for rejecting its request to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.

    In August, a United States court instructed the regulator to reconsider Grayscale’s application, a ruling that served as a major win for the crypto company. However, some experts at the time noted that the victory did not mean an automatic endorsement of spot Bitcoin ETF.

    Sam Bankman-Fried: From Crypto Darling to Criminal

    November can be said to be one of the most eventful months in 2023 for the cryptocurrency industry. Sam Bankman-Fried, popularly known as SBF, whose company FTX fell in November 2022, was convicted nearly a year later of a seven-count charge, including fraud and conspiracy.

    Following FTX’s collapse, Bankman-Fried resigned from his position as CEO of the crypto exchange. The former chief was subsequently arrested and later extradited to the United States.

    After a month-long trial, which began in October 2023, a 12-man jury declared SBF guilty of all seven counts involving fraud, conspiracy, and money laundering, with the charges carrying a combined maximum sentence of 120 years in prison. Following the guilty verdict, Bankman-Fried’s defense lawyer said that his client maintained his innocence and would continue to fight the allegations.

    SBF’s sentencing is scheduled for March 28, 2024, with a second trial also to happen in the same month. However, a recent letter, according to Bloomberg, revealed that Bankman-Fried will not face a second trial, with US prosecutors informing Judge Lewis Kaplan of their intention to drop the second set of charges, part of which accuse the former entrepreneur of bank fraud, trying to bribe foreign officials, and operating an unlicensed money transmitting business.

    CZ Stepping Down and Binance’s $4 Billion Fine

    Another major event happened in November, with the largest cryptocurrency exchange by market capitalization, Binance, paying a $4.3 billion fine in a settlement with United States regulators.

    The company, which is facing regulatory issues from different watchdogs, chief among them the SEC, paid the hefty settlement., in addition to pleading guilty to various charges, including knowingly violating the Bank Secrecy Act.

    Binance CEO Changpeng Zhao, popularly known as CZ, also pled guilty to contravening the Bank Secrecy Act, agreed to step down from his position and pay a personal fine of $50 million.

    Meanwhile, CZ, who also resigned as chairman of the board of directors at Binance.US, will remain in the U.S. until his sentencing on Feb. 23, 2024, with a United States district court ruling in favor of the government, which claimed that he was a flight risk.

    Binance’s former head of regional markets outside the U.S., Richard Teng, became the company’s new CEO.

    Major Hacks in 2023

    While hacking incidents in 2023 recorded less volume compared to 2022, there were still some notable hacks that occurred this year.

    DeFi lending protocol Euler Finance lost $197 million worth of customer assets in March through a flash loan attack. In April, the project announced that the attacker returned all recoverable funds.

    Crypto exchange Poloniex also fell victim to a hacking incident, causing the platform to lose $125 million in various assets, including Ether (ETH), USDT, USDC, and Shiba Inu (SHIB).

    Another project, Mixin Network, suffered a $200 million loss in September after attackers exploited a vulnerability in the database of its cloud service provider. Shortly after the attack, the Mixin team appealed to the hacker to return the stolen funds while offering them a $20 million bug bounty reward.

    Fingers Crossed for 2024

    With 2024 just around the corner, the industry seems to be optimistic about a potential crypto bull run. Already, there have been massive Bitcoin (BTC) price predictions for 2024, which analysts and stakeholders believe will be propelled by a potential spot Bitcoin ETF approval and the upcoming Bitcoin halving event.

    Bitwise recently predicted that BTC’s price will hit a new all-time high of $80,000 in 2024. Other predictions put the value of the crypto asset at $100,000 and above per coin also in 2024.

    It remains to be seen how the new year will shape the crypto industry, with various activities and anticipations, but hopefully, the leap year will be good for the market.

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    Anthonia Isichei

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  • VanEck: spot Bitcoin ETF launch will not impact BTC price

    VanEck: spot Bitcoin ETF launch will not impact BTC price

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    VanEck advisor Gabor Gurbacs does not expect the launch of Bitcoin (BTC) spot exchange-traded funds (ETFs) to impact Bitcoin price much.

    In a post to X, financial guru Gabor Gurbacs noted that while the launch of a spot Bitcoin ETF will not greatly impact the price of BTC, it will significantly impact capital flows into the cryptocurrency sector.

    Bitcoin ETFs are widely expected to bring in trillions of dollars over the long term, but Gurbacs believes they will not move the needle that much in the short-term.

    “Bitcoin is forcing its own capital markets systems and products well beyond the ETF, and that’s not priced in. The question is not what BlackRock adopts, but what Bitcoin company is the next BlackRock.”

    Gabor Gurbacs, VanEck advisor

    Gurbacs also believes that the initial impact of the Bitcoin ETF is vastly overestimated – estimating that net inflows could only amount to about $100 million of “mostly recycled” money from large institutional investors.

    That being said, following the widely expected approval of a spot Bitcoin ETF in the U.S., Bitcoin’s price trajectory may well follow in the footsteps of gold, but it will likely happen “much faster” due to its limited supply and scarcity-increasing events such as halvings.

    The Securities and Exchange Commission (SEC) set the filing deadline for updated applications for a spot Bitcoin ETF to Dec. 29, 2023. If companies failed to meet that deadline, they will lose the opportunity to receive SEC approval in early January.

    Matrixport platform analysts predicted the likely launch of the product in January 2024. Experts believe that the SEC will allow trading of spot Bitcoin ETFs in the US until January next year. Presumably, trading will begin in February or March.


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    Anna Kharton

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  • Bitcoin Price Starts 2024 In A Range, Can The Bulls Take Over?

    Bitcoin Price Starts 2024 In A Range, Can The Bulls Take Over?

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    Bitcoin price is holding gains above the $41,500 zone. BTC is rising and might gain bullish momentum above the $43,200 resistance zone.

    • Bitcoin is attempting a fresh increase above the $42,500 resistance zone.
    • The price is trading above $42,200 and the 100 hourly Simple moving average.
    • There is a key bullish trend line forming with support near $42,280 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    • The pair could continue to rise if there is a close above the $43,200 resistance zone.

    Bitcoin Price Remains Supported

    Bitcoin price declined and broke the $42,200 support zone. BTC formed a base above the $41,200 level and recently started a fresh increase.

    A low was formed at $41,317 and the price is now rising. There was a move above the $42,000 resistance zone. The price climbed above the 50% Fib retracement level of the downward move from the $43,792 swing high to the $41,317 low.

    Bitcoin is now trading above $42,200 and the 100 hourly Simple moving average. There is also a key bullish trend line forming with support near $42,280 on the hourly chart of the BTC/USD pair.

    On the upside, immediate resistance is near the $42,800 level. It is close to the 61.8% Fib retracement level of the downward move from the $43,792 swing high to the $41,317 low. The first major resistance is $43,200. A close above the $43,200 level could send the price further higher.

    Source: BTCUSD on TradingView.com

    The main hurdle sits at $43,800. A close above the $43,800 resistance could start a decent move toward the $44,500 level. The next key resistance could be near $45,000, above which BTC could rise toward the $46,200 level.

    Another Decline In BTC?

    If Bitcoin fails to rise above the $43,200 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $42,250 level and the trend line.

    The next major support is near $41,620. If there is a move below $41,620, there is a risk of more losses. In the stated case, the price could drop toward the $40,500 support in the near term.

    Technical indicators:

    Hourly MACD – The MACD is now gaining pace in the bullish zone.

    Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

    Major Support Levels – $42,250, followed by $41,620.

    Major Resistance Levels – $42,800, $43,200, and $43,800.

    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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    Aayush Jindal

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  • These are the boldest bitcoin predictions for 2024 — one calls for a 1,000% rally to $500,000

    These are the boldest bitcoin predictions for 2024 — one calls for a 1,000% rally to $500,000

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    Filip Radwanski | Sopa Images | Lightrocket | Getty Images

    Bitcoin had a huge rally in 2023, with the digital currency up some 152% for the year.

    And a number of commentators CNBC spoke to — both inside and outside of the cryptocurrency industry — expect the rise to continue.

    After hitting a record high in 2021, bitcoin had a rough 2022, which was marked by the collapse of high-profile projects, liquidity issues and bankruptcies.

    That year, FTX, once one of the world’s largest cryptocurrency exchanges, filed for bankruptcy. In 2023, its founder Sam Bankman-Fried was found guilty of all seven criminal counts brought against him by federal prosecutors in the U.S.

    Also in 2023, Binance’s Changpeng Zhao pleaded guilty to criminal charges and stepped down as the company’s CEO as part of a $4.3 billion settlement with the Department of Justice.

    Now that those two high-profile cases are out the way, many cryptocurrency executives see it as a chance to move forward and draw a line under the bad behavior of two of the industry’s poster children.

    With fervor returning to the crypto markets, industry executives are calling the start of a new bull run, mainly predicated on two things — the bitcoin “halving” and the potential approval of a bitcoin exchange-traded fund in the U.S.

    The halving, which happens every four years, is an event written in bitcoin’s code. The rewards so-called miners get for mining bitcoin is cut in half. This keeps a cap on supply of bitcoin, of which there will only ever be 21 million. In previous price cycles, halving preceded a rise in the price of bitcoin.

    Meanwhile, there is growing excitement that the U.S. Securities and Exchange Commission will approve the first ever bitcoin ETF, after years of opposition. This would mean investors can buy a product that tracks the price of bitcoin, without having to go on to an exchange and hold the digital currency directly. The industry is hoping this will draw in a wider range of investors, and in particular, large institutional investors.

    With all of this excitement comes some quite bold predictions about bitcoin’s price. Here’s a selection of some of them.

    Mark Mobius: $60,000

    In 2022, Mark Mobius correctly forecast bitcoin would drop to $20,000 when it was trading above $28,000. He had a price call of $10,000 thereafter, which he stuck to in 2023. However, that did not materialize, as bitcoin rallied.

    For 2024, Mobius told CNBC that bitcoin could reach $60,000 by the end of the year.

    “No rationale for that prediction,” Mobius said, except that a bitcoin ETF looks likely and “that has heightened interest” in the cryptocurrency.

    Bit Mining: $75,000

    Youwei Yang, chief economist of crypto mining firm Bit Mining, believes that bitcoin could reach a high of $75,000 by 2024.

    Yang attributes the anticipated price rise to a bitcoin ETF being approved, leading to higher institutional investment in bitcoin, as well as May 2024’s bitcoin halving, which would result in the bitcoin supply being constrained.

    “I anticipate the Bitcoin will be trading around $25K to $75K in 2024, and $45K to $130K in 2025,” Yang said in an emailed note.

    “While high prices are possible, not all investors will profit due to market volatility and the human tendencies of fear and greed.”

    Stock Chart IconStock chart icon

    Bitcoin’s price performance over the last year.

    Yang said the ETF approval remains the biggest story for bitcoin in 2024 — though investors should hold a degree of caution on timing given the wounds left by collapses of major crypto firms like Luna and FTX, and as it is an election year when the topic of crypto is likely to become more of a political issue.

    “Timing the market is hard, but a gradual approach — accumulating in bear markets and taking profits in bull markets — might be a more effective strategy for whom don’t have early-on accumulations.”

    CoinShares: $80,000

    James Butterfill, head of research at CoinShares, said the landscape for digital assets is set for “significant change” in 2024, driven by the potential approval of bitcoin ETFs in the U.S.

    “This long-awaited development is poised to expand the investor base for cryptocurrencies and integrate them more closely with traditional financial markets,” Butterfill told CNBC via email.

    “Estimations suggest that a 20% investment increase from current assets under management (around US$3 billion) could potentially propel Bitcoin prices to US$80,000.”

    Meanwhile, the scenario of central banks cutting interest rates could also “play a decisive role” in moving bitcoin higher, Butterfill added.

    The market will be also looking at factors beyond the halving — which he considers already priced into bitcoin — that could influence the price of the digital coin further.

    “Thus, while the halving is a known event, other elements, particularly the potential for interest rate reductions, are likely to be significant in shaping Bitcoin’s price in the future,” Butterfill said.

    Nexo: $100,000

    Antoni Trenchev, a noted bitcoin bull and co-founder of Nexo, a cryptocurrency exchange, believes bitcoin could hit $100,000 in 2024.

    In 2022, he called for bitcoin to hit $100,000, but that didn’t happen. Instead, the price of bitcoin collapsed that year. He held off from any further price predictions.

    But in a note in December, Trenchev reinstated his $100,000 call for 2024, citing the halving and potential approval of multiple bitcoin ETFs.

    “My expectation for 2024 is that the twin-turbo boost from the Bitcoin halving & spot ETF approval should propel Bitcoin to $100,000, with the prospect of further highs in 2025,” Trenchev said in a note. “The road to $100,000 will be lined with unexpected potholes and double-digit declines as Bitcoin.”

    Trenchev added that the biggest gains will come from digital tokens and projects “that aren’t even on the radar yet.”

    Standard Chartered: $100,000

    In November, Standard Chartered doubled down on its $100,000 call for bitcoin made in April. The bank said this will be driven by the approval of numerous ETFs.

    The halving will also be supportive for bitcoin, the bank said.

    Carol Alexander: $100,000

    In 2022, University of Sussex professor of finance Carol Alexander had a fairly successful run of calling bitcoin’s future price.

    She predicted bitcoin would slip to $10,000 in 2022. That year, bitcoin fell as low as around $15,480, according to CoinDesk data. For 2023, Alexander said bitcoin would rally as high as $50,000. Bitcoin reached a yearly high of roughly $44,700 in early December.

    Alexander told CNBC that during the first quarter of 2024, bitcoin will trade within the $40,000 to $55,000 range, owing to “professional traders creating volatility.”

    The next stage will depend on when the U.S. Securities and Exchange Commission settles charges against Coinbase and Binance, which could be required before approval of a bitcoin ETF, according to Alexander, echoing other commentators. The SEC sued both Coinbase and Binance in 2023.

    Alexander said settlement of those charges is likely in either the second or third quarter, after which ETFs will be approved and bitcoin’s price will rise to $70,000, a new all-time high.

    The price after that depends on the abilities of the ETF providers, such as Blackrock and Fidelity, “to equip their market makers not only to create the ETFs, but also to defend price manipulations” on exchanges which create “excessive volatility.”

    “Before end of 2024 price could exceed $100k, but only if Blackrock and Fidelity market maker algorithms have the ability to reduce volatility,” Alexander concluded.

    Matrixport: $125,000

    Matrixport, which bills itself as a crypto financial services firm, released a note in November projecting that bitcoin would reach $63,140 by April 2024 and $125,000 by the end of next year.

    “Based on our inflation model, the macro environment is expected to remain a robust tailwind for crypto. Another decline in inflation is anticipated, prompting the Federal Reserve to likely initiate interest rate cuts,” Matrixport said in its report.

    “Combined with geopolitical crosscurrents, this healthy dose of monetary support should push Bitcoin to new highs in 2024.”

    Many commentators see easing monetary policy as supportive for bitcoin, which is viewed as a risky asset. Meanwhile, some see bitcoin as a sort of “safe haven” asset to pour money into in times of geopolitical strife, though many disagree with this theory.

    CoinFund: Up to $500,000

    Venture capital CoinFund has one of the highest price calls for bitcoin for 2024.

    “Bitcoin has a strong inverse correlation with the dollar and real yields, and both are now going down,” Seth Ginns, managing partner at CoinFund, told CNBC via email. “We also expect the follow through inflows post-launch of the BTC spot ETF, as well as growing excitement around the likely approval of ETH (ether) spot ETFs later in 2024, will be quite meaningful.”

    Ginns added that he thinks the industry is in the process of “regulatory normalization.”

    Ginns said that bitcoin could touch $1 million per coin “in this next cycle,” but said a more “reasonable expectation” for 2024 would see bitcoin between $250,000 and $500,000.

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  • United States acts as top cop — setting the crypto standards for the world

    United States acts as top cop — setting the crypto standards for the world

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    A flag outside the U.S. Securities and Exchange Commission headquarters in Washington, Feb. 23, 2022.

    Al Drago | Bloomberg | Getty Images

    Regulators around the world from Europe to Asia ramped up efforts to bring about formal laws for digital currencies in 2023 — but it was the U.S. that took some of the harshest legal actions against major players in the industry.

    In a year that saw crypto heavyweight Binance ordered to pay more than $4 billion to U.S. authorities and its former CEO’s guilty plea, along with high-profile lawsuits against five crypto companies by the Securities and Exchange Commission, regulators overseas have been equally busy both adopting new legislation — and pushing for more — to rein in the sector’s bad actors.

    Here’s the state of play globally for crypto regulation and enforcement in 2023 — and a look at what to expect in 2024.

    U.S. tops the list globally for enforcement

    The U.S. has proven to be one of the most active enforcers of penalties and legal action against crypto companies this year, as authorities looked to counter bad practices in the industry following the collapse of Sam Bankman-Fried’s crypto empire — including his FTX exchange and sister firm Alameda Research.

    “To be clear, in some cases — like FTX — enforcement was necessary,” said Renato Mariotti, a former prosecutor in the U.S. Justice Department’s Securities and Commodities Fraud Section. “But U.S. enforcement actions against market participants that are more focused on compliance are questionable and the result of the U.S. ‘regulation by enforcement’ approach.”

    While many regions have passed laws with potentially tough penalties, the U.S. is still the only country that has actively taken action against large-scale crypto companies and projects. Thus far, the U.S. has led that campaign against crypto firms by enforcement and has, by far, been the most punishing of regulators when it comes to penalties and fines.

    “Other countries have a comprehensive regulatory framework in place. We don’t,” Mariotti told CNBC. “As a result, issues that should be determined by legislation or regulation are instead litigated.”

    Indeed, in the absence of hard-and-fast rules from Capitol Hill, the SEC, the Commodity Futures Trading Commission, the Department of Justice, and Treasury’s Financial Crimes Enforcement Network (FinCen), have worked in parallel to police the space, in a sort of patch-quilt version of regulation-by-enforcement.

    Richard Levin, a partner at Nelson Mullins Riley & Scarborough who has represented clients before the SEC, CFTC, and Congress, tells CNBC that these agencies have been some of the most active enforcers around the world concerning the regulation of digital assets and cryptocurrencies.

    “These agencies have provided guidance to the industry on how digital assets and cryptocurrencies must be offered and sold, traded, and held by custodians,” said Levin, who has been involved in the fintech sector for 30 years.

    “However, much of their work has involved providing guidance to the industry through enforcement actions,” continued Levin.

    Since 2019, Justice’s Market Integrity and Major Frauds Unit has charged cryptocurrency fraud cases involving over $2 billion in intended financial losses to investors worldwide.

    In its annual report summing up enforcement actions, the CFTC noted that nearly half of all cases in 2023 involved conduct related to digital asset commodities. Meanwhile, the SEC highlighted that 2023 was notable for its enforcement of “crypto-related misconduct, including fraud schemes, unregistered crypto assets and platforms, and illegal celebrity touting.” Since 2014, the SEC has brought more than 200 actions related to crypto asset and cyber enforcement.

    The most stringent cases played out in the first half of the year when the SEC accused Binance and Coinbase of engaging in illegal securities dealing in a pair of lawsuits.

    Most notably, the SEC alleges that at least 13 crypto assets available to Coinbase customers — including Solana’s sol, Cardano’s ada, and Protocol Labs’ filecoin — should be considered securities, meaning they’d need to be subject to strict transparency and disclosure requirements.

    In Binance’s case, the SEC went a step further. In addition to securities law violations, the company and its co-founder and CEO Changpeng Zhao were also accused of commingling customer assets with company funds.

    Concerning criminal enforcement, Damian Williams, the U.S. attorney for the Southern District of New York, has been leading some of Justice’s highest-profile crypto prosecutions, including the monthlong trial of Bankman-Fried, the disgraced FTX founder. In November, a jury found the former FTX chief executive guilty of all seven criminal counts against him following a few hours of deliberation. 

    Crypto leaders consider moving business outside of the U.S. regulatory space

    But crypto companies have begun to push back, with some threatening to decamp from the U.S. entirely should this dynamic of policing by enforcement continue.

    Coinbase CEO Brian Armstrong condemned the SEC’s actions against the exchange and suggested the company may be forced to move its headquarters overseas. Armstrong later walked back the threat of relocating abroad, but Coinbase and other major crypto firms have still begun to invest more heavily in their international operations.

    Crypto market participants nevertheless hope that the spate of legal challenges brought to crypto companies in 2023 will bring clarity in the form of new regulations.

    “Clearer regulatory frameworks and stance from regulators globally have provided a sense of legitimacy and security, encouraging more widespread participation in the bitcoin market,” Alyse Killeen, managing partner of Stillmark Capital, told CNBC.

    The crypto industry saw the most legislative progress on crypto laws in the U.S. this year, with one of the competing digital asset bills making it past multiple House committees for the first time.

    Even as U.S. lawmakers take steps toward crypto legislation, there remains no law in the U.S. tailored specifically for the industry. Nelson Mullins Riley & Scarborough’s Levin tells CNBC it’s unlikely that we’ll see much progress in a presidential election year and with a divided federal government.

    He argues that even without rules on crypto from lawmakers, routine complaints that U.S. regulators are not providing guidance to the industry are without merit.

    According to Levin, “The SEC, the CFTC and FinCEN routinely provide informal guidance on the regulation of digital assets and cryptocurrencies.”

    “The SEC even went so far as to provide a framework for the analysis of digital assets and cryptocurrencies. The SEC also created a fake digital asset (Hosey Coin) that gave advice to the FinTech community on how not to launch a digital asset,” Levin added.

    “Some members of the industry forget the SEC is relying on laws that were written when American football players wore leather helmets, and the SEC must apply those laws to the FinTech industry,” he said.

    Despite crypto’s recent fading buzz, Killeen of Stillmark Capital doesn’t expect regulators to become fatigued by crypto in 2024. In the same time year that two of crypto’s leading figures were sent to jail, shares of Coinbase — and prices of digital currencies like bitcoin and ether — have rallied sharply.

    Since the start of this year, Coinbase’s stock price has surged more than 400%. Bitcoin and ether, meanwhile, have both roughly doubled in price. That’s as investors anticipate that approval for a bitcoin exchange-traded fund by the SEC may be around the corner.

    Coinbase responds to SEC's threat of formal charges

    Europe

    The European Union looks set to apply its Markets in Crypto-Assets legislation, which is aimed at taming the “Wild West” of the crypto industry, in full force starting next year.

    The law, initially proposed in 2019 as a response to Meta’s digital currency project Diem, formerly known as Libra, aimed to clean up fraud, money laundering and other illicit financing in the crypto space, and stamp out the sector’s bad actors more broadly.

    Read more about tech and crypto from CNBC Pro

    It also sought to tackle a perceived threat from so-called stablecoins, or blockchain-based tokens that serve as a representation of government money but are backed by private companies. Stablecoins are effectively digital currencies that are pegged to the value of fiat currencies like the dollar.

    While tether and Circle’s USDC aren’t perceived as “systemic” assets capable of disrupting financial stability, a private stablecoin from a massive company like Meta, Visa or Mastercard could pose a bigger threat and potentially undermine sovereign currencies, in several EU central bankers’ eyes.

    The U.S.’s dominant role in global finance and its focus on consumer protection plays a crucial role in its leading position in crypto regulation enforcement. However, the landscape is evolving, and other jurisdictions are steadily enhancing their regulatory and enforcement frameworks in crypto.

    Braden Perry

    Former federal enforcement attorney and current partner at

    Part of the EU’s framework for crypto is aimed at tackling threats — particularly that of the euro being undermined — by making it impossible for issuers to mint stablecoins backed by currencies other than the euro, like the U.S. dollar, once they meet the threshold of more than 1 million transactions per day.

    Meanwhile, the European Union is moving towards a unified regulatory framework for cryptocurrencies with its Markets in Crypto-Assets Regulation (MiCA).

    This year, the three main political institutions of the EU-approved MiCA, paving the way for the regulation to become law. MiCA came into force in June 2023, but it’s not expected to apply fully until December 2024.

    Companies are already getting ready to take advantage of the new rules, with Coinbase submitting an application for a universal MiCA license in Ireland. If and when it is approved, this would allow Coinbase to “passport” its services into other countries like Germany, France, Italy, and the Netherlands.

    Bitcoin tops $41,000 as investor appetite for ETF grows

    Braden Perry, former federal enforcement attorney and current partner at law firm Kennyhertz Perry, said that while the U.S. remains a top enforcer for the crypto industry, its perception as a regulator “may be diminishing,” as other jurisdictions have stepped in with clearer rules.

    “This perception stems from the proactive measures taken by U.S. regulatory bodies like the SEC, CFTC, and IRS, especially in addressing fraud and security issues in the crypto market. High-profile legal actions in the U.S. further cement its image as a strict enforcer,” he said.

    “However, other regions, including Singapore, Dubai, Hong Kong, and the European Union, are also developing robust regulatory frameworks,” Perry added. “While these regions may not be as visible in international media for enforcement actions, they possess significant and sometimes stringent regulatory mechanisms.”

    But while the broader EU has been racing to implement new crypto laws, individual European countries haven’t been resting on their laurels.

    France has been tempting crypto companies and traders alike to its shores with the promise of tax cuts on crypto profits and a smoother registration process for digital asset firms.

    Starting from Jan 1, 2024, France’s Financial Markets Authority, or AMF, is set to amend its registration requirements for crypto firms to better align with MiCA, according to an August statement from the regulator.

    At the same time, French authorities have kept a skeptical eye on fraudulent activity among various crypto players. In September, French regulators added 22 fraudulent websites — including some that market trading in crypto and crypto-linked derivatives — to a blacklist of unauthorized foreign exchange providers.

    In Germany, meanwhile, the financial regulator Bafin has said it wants to accelerate its approach to licensing crypto custody services, as part of a broader effort to instill trust and transparency in the crypto market.

    The U.K., a non-member of the EU, passed a law in June that gives regulators the ability to oversee stablecoins. But there are no concrete rules for crypto just yet.

    The U.K.’s Treasury department released its response to a consultation on new crypto rules earlier this year, confirming that it plans to bring a range of crypto activities, including crypto custody and lending, within existing laws governing financial services firms in the country.

    Australia and India are home to most top fintech companies in APAC: Statista and CNBC report

    Asia

    Earlier this year, the Monetary Authority of Singapore, which is recognized for clear fintech and crypto regulations that do not rely heavily on enforcement actions, finalized rules for stablecoins, making it one of the world’s first jurisdictions to do so.

    Singapore was notably bruised by the collapse of TerraUSD, a controversial algorithmic stablecoin, in 2022, as well as the fall of Three Arrows Capital, or 3AC. Both Terra Labs, the company behind Terra, and 3AC were headquartered in Singapore.

    Singapore’s new framework requires stablecoin issuers to back them with low-risk and highly-liquid assets, which must equal or exceed the value of tokens in circulation at all times, return the par value of the digital currency to holders within five business days of a redemption request, and disclose audit results of reserves to users.

    Hong Kong, meanwhile, is undergoing a public consultation on stablecoins and seeks to introduce regulation next year.

    The region has been increasingly warming to crypto assets, despite a broader anti-crypto push from China, which banned bitcoin trading and mining in 2021.

    The Hong Kong Securities and Futures Commission, or SFC, launched a registration regime for digital asset businesses earlier this year, with clear regulations for crypto exchanges and funds.

    So far, only two firms, OSL Digital and Hash Blockchain, have been handed licenses.

    CNBC and Statista announce top 200 global fintech companies

    The Middle East and Africa

    The United Arab Emirates has emerged as a popular base for the fintech sector more broadly, given its lack of personal income tax, flexible visa policies, and competitive incentives for international businesses and workers.

    In 2022, in a bid to lead the virtual assets sector in the Middle East and Africa, Dubai — the UAE’s most populous city — launched VARA, or the Virtual Asset Regulatory Authority.

    “Dubai and the UAE have created favorable conditions for cryptocurrency businesses, offering specific zones and guidelines for crypto trading,” said Perry.

    Blockchain analytics firm Chainalysis notes that regulators in the UAE were early to cryptocurrency, with Dubai leading the charge when it launched a blockchain strategy in 2016.

    “Since then, UAE regulators have remained at the forefront of the industry,” according to a Chainalysis report.

    Two years later, in 2018, Abu Dhabi Global Market created the world’s first regulatory framework for cryptocurrency to foster innovation while safeguarding consumers.

    Earlier this year, the UAE passed further crypto regulations at the federal level to make it easier for regulators like VARA to police the sector and run economic-free zones.

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  • Sharp spike in speculative trades triggers RBI curbs on unsecured loans 

    Sharp spike in speculative trades triggers RBI curbs on unsecured loans 

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    Unusually high spurt in certain select activities such as crypto currency trades, equity derivatives and online gaming such as teen patti, rummy, ludo and cricket related games over the last 12 months may have alerted the Reserve Bank of India to look into unsecured loans being used for these activities.

    “A lot of these (trades) are done by people less than 40 years of age, who may be relying on borrowed money to engage in these activities,” said a person directly aware of the matter.

    Sources link the Reserve Bank of India’s recent move to increase risk weights in unsecured loans in November as a step towards curbing such speculative trades. “While in certain pockets the over-indebtedness of some borrower categories is increasing, what could be more concerning is availing bank loans to deploy it in F&O trades and crypto trades. Repayment capacity of the borrower in such instances entirely becomes a game of luck and this could become hazardous for the wellbeing of the system,” said a senior official with knowledge of the matter.

    Numbers speak 

    Recently published Financial Stability Report by RBI notes “equity derivatives trading volumes are increasing, with a sharp rise in individual investors’ participation in that segment. The attractiveness of options as derivatives lies in the embedded leverage, which allows traders to take exposure with little upfront cash. The number of active derivatives traders went up nearly six times from 2018-19 levels to 6.9 million by October-end”. 

    Reiterating this, a report titled ‘Gamification of Indian Equities’ by Axis Mutual Fund also highlighted that the derivative market (in India), in notional terms, is over 400 times the cash market, and that is not a healthy way of developing the market.

    Likewise, the Indian crypto currency market witnessed 160 per cent surge trading as per a report by CoinSwitch and a recent report by EY pegged India’s online gaming at ₹16,428 crore in 2023.

    In fact, at various forums Shaktikanta Das, Governor, RBI, has sounded off that with end use monitoring not possible with unsecured loans, it poses a risk to the system.

    Cautious stance 

    According to sources, from mid-2022 the RBI started taking note of an increasing trend in demand for personal loans and by March 2023 the segment was being closely monitored for trends in demand and borrower patterns. “Some of speculative trade data when correlated with trend in demand for unsecured loans supported the inference that speculative trading may have been fuelled using borrowed money,” said another senior official. “Nearly 30–40 per cent of trades in these speculative segments are likely to have been channelised through borrowed money”.

    Post the strictures on unsecured loans, many digital lenders have scaled down their business in the small ticket personal category. “This (less than ₹50,000 personal loans) needs monitoring and could have fuelled these speculative activities,” said a senior banker.

    According to TransUnion CIBIL report, the number of defaulters in the personal loan segment rose to 32.9 per cent in April 2023 against 31.4 per cent a year-ago. Email sent to RBI seeking confirmation remained unanswered till press time.

    What’s comforting for now is that the small ticket personal loans segment is less than five per cent of the total personal loans segment, while unsecured loans account for 34 per cent of total retail loans.

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  • Bitcoin Spot ETF: Bitwise Closes Ranks With $200 Million Seed Fund

    Bitcoin Spot ETF: Bitwise Closes Ranks With $200 Million Seed Fund

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    The competition among the Spot Bitcoin ETF issuers is heating up as the period for potential approval of these funds draws nearer. Asset manager Bitwise is the issuer currently making waves as it could potentially outrank the world’s largest asset manager, BlackRock, in terms of seed funds for their respective ETFs. 

    Bitwise’s Bitcoin ETF Could See $200 Million Seed Fund

    Bitwise’s latest amendment to its S-1 filing with the Securities and Exchange Commission (SEC) shows that the asset manager has gotten interest from an investor to have its ETF seeded with $200 million upon launch. Bloomberg analyst Eric Balchunas highlighted its significance as he stated that it “blows away” BlackRock’s initial seed fund of $10 million. 

    The analyst noted that Bitwise actually seeding its ETF with such an amount could be a “huge help” in the early days of the race. It is believed that the SEC is likely to approve the pending ETF applications simultaneously. As such, Bitwise being able to create $200 million of shares could give the asset manager an advantage in terms of meeting demands by clients. 

    Bitwise had previously shown its intention to lead the way from the get-go following the release of its Bitcoin ETF commercial. This move could help the asset manager gain much interest in its Bitcoin ETF even before launch. That way, the public sees it as the first choice upon launching.

    Notably, Bitwise didn’t mention who the authorized participant (AP) for its ETF would be. The AP would act as the middleman between the ETF investor and issuer, as they are responsible for creating and redeeming the ETF shares. While Bitwise failed to name its AP, other issuers like BlackRock however included it in their latest S-1 filing with the SEC. 

    BTC price above $42,000 once again | Source: BTCUSD On Tradingview.com

    BTC ETF Issuers Show Their Hands In Latest Wave Of Filings

    Spot Bitcoin ETF issuers made some notable inclusions in their latest and final amendment to their S-1 filings. These inclusions also give an idea of what strategy these issuers may be looking to adopt in order to lure investors to their funds. In Fidelity’s case, the asset manager will be looking to entice investors with its relatively low fees.

    Balchunas noted that Fidelity’s ‘sponsor fee’ of 0.39% happens to be the lowest so far among other issuers that have made theirs known. Interestingly, Invesco is adopting a more enticing strategy as they revealed in their latest amendment that they will be waiving fees for the first six months and the first $5 billion in assets. 

    The Bloomberg analyst mentioned that the fee war is going to continue being a thing in the Spot Bitcoin ETF terrain as issuers will be looking to outdo themselves. 

    Featured image from Crypto Briefing, 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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  • This Bitcoin Historical Pattern Could Send Price To $50,000 Before Major Correction: Analyst

    This Bitcoin Historical Pattern Could Send Price To $50,000 Before Major Correction: Analyst

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    The pioneer cryptocurrency, Bitcoin, has struggled to hold above the $43,000 price mark over the past few weeks. The last seven days have not been much different for the cryptocurrency, which currently trades below $42,000.

    However, a popular crypto analyst on the X platform has come forward with an interesting trajectory for the price of BTC in the coming weeks. Based on his projection, investors could see the market leader trade above the psychological $50,000 level – but there is a caveat. 

    BTC Price To $50,000 – But What Happens After?

    In a recent post on X, prominent crypto trader Ali Martinez put forward a price prediction, stating that Bitcoin’s value could climb as high as $50,000 in the near future. The analyst came up with this projection after identifying and studying a historical pattern on the coin’s price chart on a higher timeframe. 

    Martinez’s prediction is based on BTC’s price action between 2016 and 2019 on the weekly chart. According to the crypto analyst’s post, the premier cryptocurrency witnessed a major price correction – after reaching a market bottom – when it touched the 0.786 Fibonacci retracement level.

    A weekly chart showing Bitcoin's price movement between 2016 -2023 | Source: Ali_charts/X

    Martinez believes that current price action mirrors the Bitcoin pattern observed in the last years of the previous decade. Historical price patterns can be helpful in technical analysis and in predicting the future trajectory of a cryptocurrency.

    If this history – on the Bitcoin price chart – does repeat itself, investors could see the value of BTC surge toward $50,000. However, Ali Martinez noted that the flagship cryptocurrency could come tumbling down afterward by a significant 40%.

    From the current price point, Bitcoin’s journey to $50,000 would mean an almost 20% upward swing. Meanwhile, a 40% decline right after this surge could see the premier cryptocurrency return to around $30,000.

    Bitcoin Price Overview

    As of this writing, the value of Bitcoin stands at $41,831, representing a 1.5% price decline in the past 24 hours. This recent dip only further reflects the bearish pressure the market leader has had to face in the past week.

    According to data from CoinGecko, the Bitcoin price is down by nearly 4% in the last seven days. However, the cryptocurrency has had a fairly successful December, having increased by about 10% in the last month of 2023.

    BTC has had one of the best price performances this year, soaring by an outstanding 150% since January. Consequently, Bitcoin retains its spot as the largest cryptocurrency in the sector, with a market capitalization of roughly $823 billion.

    Bitcoin

    Bitcoin price continues to move sideways 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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  • Coinbase Custody Head Departs As Crypto Giant Prepares For Bitcoin ETF Services

    Coinbase Custody Head Departs As Crypto Giant Prepares For Bitcoin ETF Services

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    According to Bloomberg, Coinbase Global has recently experienced a change in leadership within its custody division. The departure of Aaron Schnarch, former CEO of Coinbase Custody, has been confirmed by a spokesperson, who also revealed that Schnarch was replaced by Rick Schonberg in August.

    Per the report, the transition aligns with Coinbase’s efforts to offer services to applicants of spot Bitcoin (BTC) exchange-traded funds (ETFs).

    Coinbase Affirms Readiness For Bitcoin ETF Approval

    Rick Schonberg, who joined Coinbase in 2021, aims to provide experience to his new role, having previously worked at reputable financial institutions such as Goldman Sachs, State Street, and Tagomi, according to Bloomberg. 

    Coinbase on the other hand, has emerged as the preferred choice for custodial services among Bitcoin ETF applicants, including industry giants like BlackRock, Franklin Templeton, and Grayscale Investments.

    Custody services play a crucial role for potential managers of spot Bitcoin ETFs, as investors rely on these providers to securely safeguard their digital tokens.

    Notably, a Coinbase spokesperson emphasized the company’s preparedness for ETF approval, stating to Bloomberg: 

    We have extensively prepared for ETF approval. Our systems have been designed and tested to handle added trading volume, increased liquidity, and general increases in demand on our systems.

    Coinbase Custody, operating as a trust company, falls under the regulatory oversight of the New York Department of Financial Services and undergoes auditing by Deloitte & Touche.

    Countdown To Historic Decision

    The race to obtain regulatory approval for the first ETF directly investing in the largest cryptocurrency, Bitcoin, is entering a critical phase. 

    The US Securities and Exchange Commission (SEC) faces a deadline of January 10 to decide whether to approve a spot Bitcoin ETF application submitted by ARK Investment Management, led by Cathie Wood, and 21Shares, along with potentially other similar filings.

    Overall, the departure of Aaron Schnarch and the subsequent appointment of Rick Schonberg within Coinbase Custody highlight the company’s strategy to the growing demand for custodial services from Bitcoin ETF applicants. 

    With the potential approval of spot Bitcoin ETFs on the horizon, the industry eagerly awaits the SEC’s decision, which will have far-reaching implications for the adoption and mainstream acceptance of cryptocurrencies.

    The 1-day chart shows BTC’s sideways price action over the past 24 hours. Source: BTCUSDT on TradingView.com

    Bitcoin, the largest cryptocurrency in the market, is currently trading at $42,100, representing a 1.1% decline over the past 24 hours. 

    In recent weeks, BTC’s price has been consolidating above $40,000, exhibiting sideways movement since the beginning of December. However, it has achieved a notable gain of over 11% in the last 30 days.

    It remains to be seen how the price of BTC will react to the potential approval of these index funds by the largest asset managers in the world, and what other impact it will have on the overall crypto market.

    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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  • Record Crypto Options Volume Expires Pre-Bitcoin ETF Deadline: Analyzing BTC And ETH Reactions

    Record Crypto Options Volume Expires Pre-Bitcoin ETF Deadline: Analyzing BTC And ETH Reactions

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    The recovery of the overall crypto market this year has spurred a surge in the digital-asset derivatives market as institutional investors seek exposure to the crypto space. 

    According to a recent Bloomberg report, the deadline for US regulators to approve or reject Bitcoin (BTC) exchange-traded funds (ETFs) has prompted traditional investors to turn to crypto options and futures, leading to unprecedented trading volumes.

    Crypto Options Trading Hits Record High

    Before the options expiry on Friday morning, crypto options trading volume reached a new all-time high, with options worth a notional value of $11 billion, as highlighted by Bloomberg. Of this total, Bitcoin contracts accounted for $7.7 billion, while Ethereum (ETH) options represented $3.5 billion.

    Despite the expiration of many options, the impact on the major cryptocurrencies has been limited.  With its strong support floor at $42,000, Bitcoin has maintained its position for a potential uptrend once bullish momentum returns and buying pressure increases. 

    Over the past 24 hours, Bitcoin has traded within the same range as the previous day, at $42,200, experiencing only a 0.4% decline. Nevertheless, Bitcoin has yet to fully recover from its 3.4% drop over the past seven days.

    In contrast, ETH was hit by the expiration of options contracts. Ethereum, the second-largest cryptocurrency on the market, fell more than 2%. EHT dropped to $2,316 after hitting an annual high of $2,445 on Thursday.

    However, while heightened trading activity may accompany the expiration of options, it is unlikely to impact spot market prices, according to Luuk Strijers significantly, Deribit’s chief commercial officer. 

    Strijers notes that clients are rolling their positions to 2024 expiries, and additional activity is anticipated after the expiry. The focus of attention and trading activity will primarily be on the impending ETF decision, Bloomberg notes.

    Surge From Traditional Asset Managers 

    The cryptocurrency market has undergone a strong rally this year, with Bitcoin surging nearly 160% following a turbulent 2022 marked by industry scandals and price declines. 

    The recovery has been fueled partly by the optimism surrounding the potential approval of spot Bitcoin ETFs, which would attract a broader range of investors to the asset class.

    Ryan Kim, head of derivatives at digital-asset prime brokerage FalconX, highlights the growing participation from crossover macro accounts, referring to large traditional asset managers allocating a small percentage of their portfolios to cryptocurrencies and crypto-focused hedge funds.

    In addition, according to Bloomberg, perpetual futures, a favored tool for leveraging crypto trades, are trading at a significant premium compared to spot prices, indicating rising demand for such products.

    Overall, the surge in the cryptocurrency derivatives market, driven by options expiry and the pending decision on Bitcoin ETFs, reflects the growing interest of institutional investors in the crypto space. 

    The record-breaking trading volumes and increased participation from traditional asset managers highlight the evolving landscape of digital assets. 

    As the market awaits the regulatory verdict on Bitcoin ETFs, it remains to be seen how these developments will shape the future trajectory of the crypto market and its integration with traditional financial systems.

    Crypto

    Featured image from Shutterstock, chart from TradingView.com 

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    Ronaldo Marquez

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  • A Crypto Christmas Special With Sheraz Ahmed: Past, Present, And Future

    A Crypto Christmas Special With Sheraz Ahmed: Past, Present, And Future

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    Another year, another Crypto Christmas special for our team at NewsBTC. In the coming week, we’ll be unpacking 2023, its downs and ups, to reveal what the next months could bring for crypto and DeFi investors.

    Like last year, we paid homage to Charles Dicke’s classic “A Christmas Carol” and gathered a group of experts to discuss the crypto market’s past, present, and future. In that way, our readers might discover clues that will allow them to transverse 2024 and its potential trends.

    BTC’s price trends to the upside on the daily chart but records some low timeframe losses on the daily chart. Source: BTCUSDT on Tradingview

    Crypto Christmas With STORM: Bitcoin ETF Should Be Out Of Your Wishlist?

    For today’s issue, our team got to chat with Sheraz Ahmed, Managing Partner at blockchain solutions provider STORM and founder of Decentral House. Ahmed has been present at some of the most important crypto events in 2023 and is constantly speaking with founders, organizations, and relevant actors within and outside the nascent sector.

    Thus, Ahmed has a unique perspective on the industry, its blindspots, and possible catalyzers. During the interview, we talked about the downside of approving a Bitcoin spot Exchange Traded Fund (ETF) in the United States and why the space might be unprepared for a new bull cycle. This is what he told us.

    Q: Our team has coincided with you in several crypto events this year; where do you think most of these events coincide? And what do you believe has been overlooked during 2023, a narrative, a project, something people missed as the industry enters another cycle?

    Switzerland, Europe, Dubai, Singapore, and Rio (de Janeiro). I do believe that we are too early for the next cycle. The broken models of the last bull run are yet to be rebuilt. Infrastructure has improved, custody, wallets, exchanges, and stablecoins, but the business models for Dapps (Decentralized Applications) have not evolved.

    I fear that we enter into another vaporware cycle and, at best have to wait 4 more years for real use cases/adoption or risk burning ourselves completely with shitcoins and scams.

    Q: As Crypto enters a new cycle, what’s different about the industry when you compare it to early 2021 and 2017? Where can investors see the growth? Is it in the players joining the industry, the financial products, or in its community?

    There is a bit more maturity, although that sometimes just feels like the veterans are just numb to the pain this industry can self-inflict. We do see genuine interest from large institutional players in the financial, consumer, and impact fields. But can we convert those ideas into adoption?

    Investment in utility and payment tokens is an oxymoron. They are not meant to be investment products and are not regulated as such. An investor could look into an infrastructure play, although I believe that is quite saturated today at approx. $700M. My bet would be early-stage protocol ecosystem funds (equity-based), with a portion of that taken in tokens for the utility of governance, etc., that might be attached.

    Q: The upcoming approval of a spot Bitcoin ETF in the US seems like the perfect indicator that crypto has made it to the mainstream, but what’s the next frontier? Where does the industry go from here?

    I don’t agree. For me, it just sounds like the bankers finally believe they can make money off our industry. Now, does that mean it’ll be good for prices in the short term and more eyeballs? Yes. But be careful what you wish for, as when the heavy artillery comes in, they crush everything/everyone in their path.

    In 2023, we founded Decentral House. An innovation centre focused on blockchain-based application that provide the infrastructure to spark ideas to life. I believe that by having the right tools in your arsenal, you can navigate the Web3 space to find the light at the end of the tunnel. Without the right guidance, WANGMI (We Are Not Gonna Make It). Let’s work together to create an industry of trust we can all be proud of!

    Cover 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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    Reynaldo Marquez

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  • Major Acquisition: MicroStrategy Grows Bitcoin Reserves By 14K BTC Ahead Of ETF Approval

    Major Acquisition: MicroStrategy Grows Bitcoin Reserves By 14K BTC Ahead Of ETF Approval

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    MicroStrategy (MSTR), a prominent Bitcoin holding company, has once again expanded its BTC holdings with a substantial purchase of 14,620 Bitcoin, amounting to a staggering $615.7 million. 

    The former CEO of the American business intelligence (BI) firm announced the acquisition, highlighting the company’s continued confidence in Bitcoin’s long-term potential. 

    With the potential approval of Bitcoin spot exchange-traded funds (ETFs) on the horizon, MicroStrategy aims to capitalize on the positive impact on BTC’s price and the company’s profitability in the leading cryptocurrency market.

    MicroStrategy Stock Skyrockets 337%

    According to a CNBC report, MicroStrategy’s stock has experienced a remarkable 337% surge in 2023, making it one of the top gainers among US companies valued at $5 billion or more. 

    This success surpasses the rallies of industry giants like Nvidia and Meta. Unlike its tech peers, MicroStrategy’s appeal to investors stems primarily from its Bitcoin holdings. 

    The 1-day chart shows MSTR’s continuous uptrend. Source: MSTR on TradingView.com

    MicroStrategy’s market capitalization currently stands at $8.5 billion, with a staggering 90% directly tied to its Bitcoin holdings. The company’s stock price closely mirrors the performance of Bitcoin, with significant fluctuations in response to the cryptocurrency’s price movements. 

    Per the report, in 2022, when Bitcoin experienced a 64% decline, MicroStrategy’s stock plummeted by 74%. Despite the substantial gains achieved this year, MicroStrategy shares are still below their peak levels in 2021, during the cryptocurrency’s peak.

    Michael Saylor’s Vision

    MicroStrategy’s decision to invest in Bitcoin dates back to July 2020, when the company recognized the potential of alternative assets, including digital currencies. 

    At that time, MicroStrategy had a market capitalization of around $1.1 billion, primarily driven by its software business, which has been shrinking since 2015. Co-founder Michael Saylor, who was CEO then, saw an opportunity to put the company’s idle cash reserves to work, considering low interest rates and the need for diversification.

    Saylor’s conviction in Bitcoin as a digital form of gold led MicroStrategy to prioritize Bitcoin purchases over equities and precious metals. This strategic move exposed investors to Bitcoin indirectly through MicroStrategy’s stock. 

    Saylor, who transitioned to executive chairman, remains optimistic about Bitcoin’s future, expecting the bull market to continue into the next year. Despite its growing popularity, Saylor emphasized that Bitcoin still represents only a fraction of global capital allocation, with ample room for further growth.

    As of December 27, 2023, MicroStrategy’s latest purchase adds to its already impressive Bitcoin portfolio, bringing the total holdings to 189,150 BTC. 

    The company has invested approximately $5.9 billion, with an average purchase price of $31,168 per Bitcoin. These strategic acquisitions position MicroStrategy as a major player in the crypto space, aligning its interests with the anticipated growth and adoption of Bitcoin.

    Microstrategy
    The daily chart shows BTC’s sideways price action over the past 24 hours. Source: BTCUSTD on TradingView.com

    The current market data shows that Bitcoin is trading at $42,900, reflecting a marginal 0.5% increase over the past 24 hours. The cryptocurrency briefly dipped below its critical support level of $42,000 but has since regained its position.

    The market is anticipating the potential approval of the Bitcoin Spot ETF applications between January 5 and 10, 2024. 

    This development holds significant promise for Bitcoin, as it could drive the cryptocurrency’s price well beyond $50,000, establishing a new yearly high and edging closer to its historical peak.

    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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  • Crypto Trading Firm Expects Bitcoin To Crash To $36,000, Here’s Why

    Crypto Trading Firm Expects Bitcoin To Crash To $36,000, Here’s Why

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    A recent market update by the trading firm QCP Capital has provided insights into how Bitcoin’s price would react if a Spot Bitcoin ETF gets approved in January. The firm predicts that there could be a major retracement before any move to the upside.

    Bitcoin Could Retrace To $36,000

    QCP Capital predicts that Bitcoin could retrace to around $36,000 before an uptrend resumes. At the same time, they expect Bitcoin to face a topside resistance between the $45,000 and $48,500 region. These projections are based on what they expect to happen if the Securities and Exchange Commission (SEC) approves Spot Bitcoin ETFs in January.

    QCP Capital is of the opinion that the actual demand for these investment funds might fall short of market expectations at the beginning. If so, it set things up for the classic ‘sell the news’ scenario, which would cause Bitcoin’s price to dump.

    The trading firm had previously opined that Bitcoin could hit its all-time high of $69,000 if these Spot Bitcoin ETFs saw enough capital upon launching. Then, they also warned that approval could end up being a sell-the-news event if inflows into these funds were below par. Now, they seem to be suggesting that the latter is likely to happen.

    However, they don’t expect that Bitcoin will stay down for too long as they are confident that Bitcoin’s recent resurgence will continue at some point. They estimate that this will likely happen after a few weeks, especially as traders position for a strong rally ahead of the next big thing – the Bitcoin Halving. This event is projected as what will spark the next bull run.

    BTC price at $43,278 | Source: BTCUSD on Tradingview.com

    All Attention Will Turn To Ethereum

    Ethereum might be the next big play once the pending Spot Bitcoin ETFs are approved. QCP Capital foresees the market’s anticipation, quickly turning to the Ethereum Spot ETFs. Just like with the Spot Bitcoin ETFs, a number of asset managers have also filed to launch a fund that offers direct exposure to Ethereum.

    In anticipation of a potential approval of the Ethereum Spot ETFs, some crypto investors could move their capital from BTC to ETH ahead of an expected rally in Ethereum’s price. The trading firm stated that they are “leaning against very strong support in the ETHBTC cross at the 0.051 level.”

    QCP Capital, however, believes that any approval of an Ethereum Spot ETF is still “many months away.” In the meantime, they expect that Ethereum’s price will notable rallies based on such speculations. This could be something similar to what happened with Bitcoin, as the flagship cryptocurrency enjoyed significant rallies on the back of the Spot BTC approval rumors.

    Featured image from Freepik, 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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  • The Crypto Bulls Are Back: Digital Asset Inflows Cross $103 Million In One Week

    The Crypto Bulls Are Back: Digital Asset Inflows Cross $103 Million In One Week

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    Inflows into crypto investment funds have resumed after a brief hiatus two weeks ago, as evidenced by CoinShares’s latest analysis. According to James Butterfill, Head of Research at CoinShares, digital assets saw a net inflow of $103 million last week, as the wider crypto industry went through a few days of bullish sentiment. This is particularly exciting, as it signaled a change from the net outflows in digital asset investment funds witnessed two weeks ago. 

    Crypto Fund Inflows Surge To $103 Million

    Crypto asset investment funds witnessed a minor net outflow of $16 million two weeks ago, bringing an end to 11 consecutive weeks of inflows since September. However, according to a social media post by Butterfill, these investment funds attracted a $103 million net inflow last week. As expected, Bitcoin, again, led the charge, attracting 85% of the total inflow. Bitcoin saw an inflow of $87 million last week, bringing its total net inflow this year to $1.758 billion. 

    Ethereum led the altcoin market with a net inflow of $7.9 million, bringing its total net inflow this year to $23 million. Solana followed suit with a $6 million net inflow. At the time of writing, Solana’s total inflow this year stands at $162 million, reflecting the better sentiment Solana has seen with institutional investors this year. 

    On the other hand, Litecoin and Avalanche investment products were the only ones registering a net outflow during the week, with $0.4 million and $2.6 million respectively.

    In terms of geographical location, Germany had the most inflows with $41.6 million, Canada with $25.8 million, USA with $20.4 million, and Switzerland with $15 million. On the other hand, Sweden had a net outflow of $8.7 million. 

    Total assets under management now stand at $52 billion, representing 31% of the entire crypto market cap of $1.65 trillion. Most of this is traded in the United States, with US-based investment funds holding $37.8 billion worth of assets under management.

    Total market cap rises above $1.6 trillion | Source: Crypto Total Market Cap on Tradingview.com

    State Of The Market

    Investment in digital asset funds is largely tied to the sentiment among the spot market prices. As a result, the net inflows last week were a mirror of the price surge led by Bitcoin, with the crypto crossing over $44,000 multiple times during the week. Bitcoin has since corrected and is now trading at $42,390.

    Ethereum’s lead in the altcoin market has been overshadowed by Solana since October. The crypto is up by 53% in a 7-day timeframe, hitting a yearly high of $124.92 on Christmas day. At the time of writing, Solana is trading at $114.  

    Featured image from Business Insider, 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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  • High Korean Bitcoin Premiums Signal Strong Retail Investor Activity: CryptoQuant

    High Korean Bitcoin Premiums Signal Strong Retail Investor Activity: CryptoQuant

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    CryptoQuant’s recent analysis points to an interesting trend in the crypto market, specifically the overheating of the Korean premium.

    The high values of the Korean premium are interpreted by the on-chain intelligence firm as a potential indicator of strong buying pressure from Korean retail investors.

    While a high Korean premium might be interpreted as a sign of bullish sentiment, this index is also frequently used to identify potential price tops.

    Overheated Korean Bitcoin Market

    The Korea Premium Index (KPI) holds significant importance as a key indicator for tracking changes in the cryptocurrency landscape. This index, gauging the ‘Kimchi Premium,’ offers valuable perspectives into market sentiment within South Korea, a notably active player in the global cryptocurrency markets.

    A higher KPI signals a bullish sentiment, indicating increased buying pressure that drives crypto prices higher on South Korean exchanges compared to international platforms. On the other hand, a lower KPI reflects a bearish market sentiment, suggesting diminished buying pressure and the potential for heightened selling activity.

    However, it is also important to understand that the Korea Premium Index is also used to identify price tops. CryptoQuant detailed that this is done with the help of two key factors: immediate access to cash for coin purchases on exchanges by Koreans and the prevalent Fear of Missing Out (FOMO) hype in the market.

    Notably, the current 14-day moving average for the Korean Premium Index mirrors the levels observed during the peak of the Bitcoin price cycle in the fourth quarter of 2021. This historical parallel raises questions about whether the current market conditions could lead to a similar outcome.

    “We are very curious to see if the Korean Premium Index will provide important clues to price tops this time too.”

    South Korean Traders Spark Surge in Volume

    South Korea has emerged as one of the most important contributors to the unexpected surge in digital asset market volume in the latter part of the year. In November alone, their market share surged to approximately 13%, representing a substantial leap from the 5.2% recorded at the beginning of the year in January.

    Chung Hochan, the Head of Marketing at CryptoQuant, attributed it to the notable absence of a futures market catering to retail investors in South Korea. This absence has spurred retail investors in the country to actively explore significant leverage opportunities within the crypto market, with a particular focus on altcoins.

    The heightened interest and engagement in altcoins, fueled by the absence of futures trading options, have played a pivotal role in the remarkable expansion of the altcoin market, setting it apart from other traditional investment assets.

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    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

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    Chayanika Deka

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  • Bitcoin Millionaires Rise By 246% In 2023, Here's How Many There Are

    Bitcoin Millionaires Rise By 246% In 2023, Here's How Many There Are

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    Bitcoin’s resurgence in 2023 has created wealth for many crypto investors, as there has been a significant rise in the number of Bitcoin millionaires. These Bitcoin millionaires happen to be wallet addresses whose BTC holdings equal $1 million or above. 

    Number Of Bitcoin Millionaires

    According to data from BitInfoCharts, there are currently 97,497 Bitcoin millionaires. This represents a significant increase from the beginning of the year when the number of wallet addresses equal to $1 million and above stood at 23,795, according to data from Glassnode. 

    This development is attributed to the resurgence in Bitcoin’s price this year, with the crypto token seeing over 158% gain year-to-date. At the beginning of the year, Bitcoin’s price stood at just over $16,000. However, as the flagship cryptocurrency’s price began to rise, so did its number of millionaires. 

    Further data from BitInfoCharts breaks down these Bitcoin millionaires into two categories. The number of addresses that are greater than $1 million stands at 90,040, while 7,457 wallet addresses hold $10 million or more. 

    Meanwhile, other addresses below $1 million have also seen enormous profits. Market intelligence platform Santiment recently reported that 89% of the total Bitcoin supply is in profits. 2024 could be a better year for these addresses, considering that the Bull market is expected to kickstart next year. 

    In the meantime, some of these Bitcoin millionaires and persons with significant holdings seem to be taking profits. NewsBTC recently reported how Bitcoin whales had sold around 50,000 BTC which equals to about $2.2 billion. 

    BTC price retraces to $42,600 | Source: BTCUSD on Tradingview.com

    About Two Weeks To Go For Spot ETFs

    One of the biggest moments for Bitcoin and the crypto industry could come as early as January 10. This is around the period when experts are predicting that the Securities and Exchange Commission (SEC) will approve the pending Spot Bitcoin ETFs, and there is optimism in the air as many actions point to an approval happening. 

    Crypto stakeholders have had their eyes fixed on developments revolving around these Spot Bitcoin ETFs. The reason isn’t farfetched, as these funds could unlock fresh liquidity into the Bitcoin ecosystem. Trading firm QCP Capital had highlighted this as the catalyst to Bitcoin hitting its all-time high (ATH) and possibly new ATHs. 

    At the same time, people like the former CEO of crypto exchange BitMEX, Arthur Hayes, will be hoping that these ETFs don’t achieve much success as he says they could lead to Bitcoin’s downfall. 

    At the time of writing, Bitcoin is trading at around $42,678.76, down over 1% in the last 24 hours according to data from CoinMarketCap.

    Featured image from Crypto News, 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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  • Bitcoin Price Eyes Fresh Bullish Breakout, Can BTC Make It To $45K?

    Bitcoin Price Eyes Fresh Bullish Breakout, Can BTC Make It To $45K?

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    Bitcoin price corrected gains and tested the $42,650 zone. BTC is again attempting a fresh increase and eyeing a move above the $43,750 resistance.

    • Bitcoin found support above the $42,500 zone and started a fresh increase.
    • The price is trading below $43,550 and the 100 hourly Simple moving average.
    • There is a connecting bearish trend line forming with resistance near $43,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    • The pair could start a fresh increase if it clears the $43,750 and $44,300 resistance levels.

    Bitcoin Price Holds Ground

    Bitcoin price failed to clear the $44,300 resistance zone and started a downside correction. BTC declined below $43,500 level, but the bulls were active above the $42,500 zone.

    A low was formed near $42,860 and the price is now attempting a fresh increase. There was a move above the $43,200 resistance zone. The price climbed above the 50% Fib retracement level of the downward move from the $44,429 swing high to the $42,680 low.

    Bitcoin is still trading below $43,550 and the 100 hourly Simple moving average. There is also a connecting bearish trend line forming with resistance near $43,600 on the hourly chart of the BTC/USD pair.

    The trend line is close to the 61.8% Fib retracement level of the downward move from the $44,429 swing high to the $42,680 low. On the upside, immediate resistance is near the $43,550 level. The first major resistance is forming near the trend line.

    Source: BTCUSD on TradingView.com

    A close above the $43,600 resistance could start a decent move toward the $44,300 level. The next key resistance could be near $45,000, above which BTC could rise toward the $46,500 level. Any more gains might send the price toward $47,200.

    Another Decline In BTC?

    If Bitcoin fails to rise above the $43,600 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $43,000 level.

    The next major support is near $42,600. If there is a move below $42,600, there is a risk of more losses. In the stated case, the price could drop toward the $42,000 support in the near term.

    Technical indicators:

    Hourly MACD – The MACD is now losing pace in the bearish zone.

    Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now near the 50 level.

    Major Support Levels – $43,000, followed by $42,600.

    Major Resistance Levels – $43,600, $44,000, and $44,300.

    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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    Aayush Jindal

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