ReportWire

Tag: BitMEX

  • Bitcoin’s rally above $73,000 persists despite swift plunge

    Bitcoin’s rally above $73,000 persists despite swift plunge

    [ad_1]

    Bitcoin demonstrates ongoing momentum surging to a high of $73,887 without showing signs of exhaustion.

    The crypto market saw Bitcoin (BTC) break new ground, hitting an all-time high of $73,887 (on EXMO) before experiencing a rapid pullback as it briefly touched $74,000. This surge in volatility followed a record-breaking day, with net inflows totaling over $1 billion, according to data from BitMEX Research.

    As per data, Blackrock recorded a historic $849 million cash inflow for spot Bitcoin exchange-traded funds (ETFs) as demand keeps growing.

    Meanwhile, data from Coinranking indicate that Bitcoin surpassed the $78,000 mark on Korean crypto exchanges such as Bithumb and Coinone. However, this apparent price gap is attributed to the phenomenon known as the Kimchi premium, as crypto.news reported earlier.

    Bitcoin’s latest rally comes on the heels of a recent dip below the $69,000 mark on Mar. 12, when the largest crypto by market capitalization briefly dropped to around $68,600. Despite the setback, Bitcoin appears to be regaining strength, with long traders anticipating further positive movements.

    According to data from Coinglass, the number of long positions exceeds short positions by nearly $10 million at the time of writing.

    Meanwhile, analysts at QCP Capital observe a softening in front-end volumes, with Ethereum (ETH) volumes experiencing a more significant decline compared to Bitcoin. They suggest that investors seeking to capitalize on high yields without taking directional risks may view current price levels as “another chance to sell the spot-forward spreads at these elevated levels.”


    Follow Us on Google News

    [ad_2]

    Denis Omelchenko

    Source link

  • Former BitMEX CEO Arthur Hayes Champions ‘Points’ Over ICOs in Crypto Fundraising

    Former BitMEX CEO Arthur Hayes Champions ‘Points’ Over ICOs in Crypto Fundraising

    [ad_1]

    In a recent blog post titled ‘Points Guard,’ former BitMEX CEO Arthur Hayes made a compelling case for the emergence of “points” as a superior alternative to traditional initial coin offerings (ICOs) and yield farming with regard to crypto fundraising and user engagement.

    Hayes argued that points combine the best aspects of ICOs and yield farming while addressing their respective limitations. ICOs, he noted, allow retail investors to purchase a stake in a new protocol but often face regulatory scrutiny due to their sale to the masses.

    On the other hand, yield farming rewards users for interacting with the protocol but can lead to rapid inflation of token supply and a subsequent loss of user incentives.

    Is ‘Points’ the Game-Changer Crypto Needs?

    Points are essentially a mechanism through which users are rewarded for engaging with a protocol. Unlike ICOs, there is no direct exchange of money for tokens, mitigating regulatory concerns. Similarly, unlike yield farming, points offer more flexibility in token emissions and timing, allowing projects to adapt to market conditions and user behavior.

    One of the key features of points highlighted by Hayes is their lack of transparency. Unlike traditional token sales with transparent pricing, point programs give projects the discretion to determine the points-to-token conversion price and the timing of token airdrops, if they happen at all.

    This flexibility enables projects to tailor their user acquisition strategies and incentivize specific actions that enhance the long-term value of the protocol.

    Moreover, points offer a more equitable way for retail users to participate in token launches. With the decline of ICOs and concerns over VC unlock schedules, retail investors often find themselves at a disadvantage.

    Points programs allow retail investors to engage earlier in the process, potentially securing tokens at a lower price and without the need to navigate complex pre-sale arrangements.

    Potential to Be ‘Abused?’

    Hayes acknowledges that point programs rely heavily on trust between users and project founders. While points can be a powerful tool for fundraising and user engagement, any breach of trust could undermine their effectiveness and reputation.

    “A points program is only effective if there is a high degree of trust between users and the project’s founders. The user trusts that after interacting with the protocol, their points will convert into tokens at a reasonable price in a reasonable time frame. As points programs proliferate, there will be bad actors who abuse this trust.”

    Nonetheless, Hayes remains optimistic about the potential of points to drive the success of token launches in the current crypto cycle.

    SPECIAL OFFER (Sponsored)

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

    [ad_2]

    Chayanika Deka

    Source link

  • BlackRock’s IBIT Maintains Lead In Bitcoin ETF Race, Crosses $2 Billion In Inflows

    BlackRock’s IBIT Maintains Lead In Bitcoin ETF Race, Crosses $2 Billion In Inflows

    [ad_1]

    According to data from BitMEX Research, BlackRock’s Bitcoin spot ETF – IBIT –  has now set a new record, achieving a total net inflow of $2 billion. This feat allows IBIT to maintain its position as the best-performing fund of the bunch, following the approval of 11 Bitcoin spot ETFs by the US Securities and Exchange Commission on January 10.

    BlackRock’s IBIT Maintains Dominance As Total Net Flows Reach $744.6 Million

    On January 25, which marked the tenth trading day of the Bitcoin spot ETF market, BlackRock’s IBIT produced an unsurprising positive performance, notching $170.7 million in inflows. This gain allowed the investment fund to move into an exclusive list as the first Bitcoin spot ETF to amass $2 billion in market cap.

    Commenting on this feat, Bloomberg analyst James Seyfarrt has credited the recent rise in BTC’s price as a major contributing factor. He said:

    Yes, the #Bitcoin price has pushed $IBIT‘s assets beyond $2 billion. This plus likely new flows today should mean it will be above $2 billion at close.

    Following the trading debut of BTC spot ETFs on January 11, IBIT quickly emerged as an investor’s favorite, recording the highest individual daily inflows of the market at $386 million on January 12. BlackRock’s BTC spot ETF has managed to retain this investors’ attention over the first two trading weeks, evidenced by its consistent positive performances, which has culminated in a total flow of $2.086 billion.

    IBIT’s performance is closely followed by Fidelity’s FBTC, which recorded $101 million in inflows on January 25, moving its total flows to $1.825 billion. Meanwhile, other Bitcoin spot ETFs with notable performances include Bitwise’s BITB and Ark Invest’s ARKB, both of which boast individual cumulative AUMs of over half a billion dollars.

    In other news, the outflows in Grayscale’s GBTC remain a constant trend; however, there has been a notable decline in selling volume over the last few days. At the time of writing, GBTC’s total outflow is valued at $4.786 billion. In comparison with a cumulative inflow of $5.53 billion, total flows in the Bitcoin spot ETF market stand at $744.6 million. 

    Source: BitMEX

    Bitcoin Price Overview

    At press time, Bitcoin is currently trading at $41,725.19 following a 4.52% price gain in the past day, according to data from CoinMarketCap. This recent uptick is quite significant, considering the asset’s previous bearish form, marked by a 20% decline over the last two weeks which resulted in BTC’s dipping below $39,000. 

    Bitcoin’s price has been negatively affected by GBTC’s massive outflows; however, as the selling pressure appears to be decreasing, coupled with consistent positive performances of other ETFs, notably BlackRock’s IBIT, that crypto market leader could soon pull off a market recovery.

    BlackRock’s IBIT

    BTC trading at $41,802.61 on the daily chart | Source:  BTCUSDT chart on Tradingview.com

    Featured image from Reuters, 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.

    [ad_2]

    Semilore Faleti

    Source link

  • BitMEX founder has a dire warning about spot ETF approval

    BitMEX founder has a dire warning about spot ETF approval

    [ad_1]

    Arthur Hayes, co-founder of the BitMEX crypto exchange, is sounding the alarm regarding what he sees as possible dire outcomes of the pending regulatory approval of the spot Bitcoin exchange-traded fund (ETF).

    The concern lies in traditional finance asset managers, such as BlackRock, potentially undermining Bitcoin (BTC) by dominating the spot Bitcoin ETF market.

    In a blog post on Dec. 22, Hayes highlighted the risk of such firms holding “all the Bitcoin in circulation.” If that happens, he says, an over-successful ETF managed by traditional asset managers could ultimately lead to the decline of the cryptocurrency.

    Hayes argues that BlackRock and similar entities “vacuum up assets, store them in a metaphorical vault, issue a tradable security, and charge a management fee for their ‘hard’ work.”

    “They don’t use the things they hold on behalf of their clients, which presents a problem for Bitcoin if we take an extreme view of a possible future,” he added.

    The public may then opt for Bitcoin ETF derivatives instead of buying and holding Bitcoin by themselves, impacting the use of the Bitcoin blockchain, Hayes says.

    Hayes surmised a future where Bitcoin is merely stored in vaults, with miners no longer receiving income due to the lack of network use. This scenario, he warns, could lead to the network’s death and the disappearance of Bitcoin.

    2024: A pivotal year

    Hayes also pointed to Bitcoin’s 228% growth since 2020, where he claims it outperformed most traditional assets. This growth signifies BTC’s dominance as a hedge against fiat debasement, he adds.

    BTC growth since 2020 compared to traditional assets. Source: Arthur Hayes

    Hayes advised investors to avoid permission-based DeFi projects, tokenized real-world assets, and governance tokens tied to debt yields.

    Before penning his latest blog post, Hayes had taken to social media to reveal that he had moved his investments from Solana (SOL) to Ether (ETH), despite having criticized Solana and even forecasting that the token could breach the $100 mark based on its current rally.

    By shifting to ETH, Hayes appears to be bucking the trend, as Solana has outpaced Ether in performance during the current crypto market resurgence.

    Nonetheless, Hayes anticipates that Ether will hit $5,000, surpassing its previous peak of $4,800 achieved in November 2021.

    It’s worth noting that Hayes was previously critical of Solana, even expressing scathing reviews of the project when he acquired the tokens in November.


    Follow Us on Google News

    [ad_2]

    Julius Mutunkei

    Source link