Cryptocurrency

The investment firm believes the sell-side is missing the extent to which retail has come back into the crypto space. In addition, they feel it is overstating institutional participation on the back of recent bitcoin ETFs.”While retail activity has cooled in the last several days, we expect Q1’24 to show strong participation from retail accounts, which benefits both HOOD (NASDAQ:HOOD) and COIN,” said Needham & Company. “We are raising our Q1’24 estimates on COIN and HOOD,” they added. “On COIN, we are also increasing our projected retail mix share vs institutional. HOOD’s Q1 is also benefiting from a record month (Feb) for equity options volumes.”Analysts at Needham cited outsized website traffic loads at Coinbase, volume share of underlying crypto assets this quarter, and app download rankings for HOOD, COIN, as indications that retail came back meaningfully in late February and early March before giving back some gains and falling in the rankings. More

Exaion’s role will involve overseeing and ensuring the integrity of transactions on the Chiliz Chain, contributing to the network’s security and reliability. According to the press release, this partnership reflects both entities’ commitment to using blockchain technology responsibly and sustainably.Chiliz Chain is prominent for its blockchain applications in the sports industry, enabling fans to purchase tokens and NFTs related to their favorite sports teams and brands. The inclusion of Exaion as a validator is part of Chiliz’s broader strategy to expand its blockchain’s utility and engage more actively with the sports and entertainment sectors.This collaboration comes on the heels of Chiliz announcing new validators, including major sports entities PSG and K-League, as well as introducing updates to its tokenomics and incentives for the Chiliz community.Fatih Balyeli, CEO and co-founder of Exaion, comments: “Exploring the sports and entertainment sectors opens new avenues for us, making our collaboration with Chiliz Chain as a validator node a pivotal strategy that resonates with our goal of shaping the future of digital engagement. Our commitment to energy efficiency and reducing environmental impact enriches Chiliz’s mission to transform how fans interact with their passions.”Chiliz CEO Alexandre Dreyfus hailed Exaion’s addition as a validator, noting the importance of aligning with partners who prioritize eco-friendly practices in the blockchain sector. “Having Exaion, a subsidiary of EDF, as a validator node on our chain is a testament to our commitment to sustainability and innovation. Their renowned expertise in the energy sector and proactive approach to eco-responsibility will significantly bolster our efforts in this space,” he added.Validator nodes like Exaion are critical to the blockchain’s operation, ensuring that transactions are processed efficiently and securely. This expansion is a necessity for the Chiliz Chain as it continues to attract a global audience of sports fans and tech enthusiasts. More

Per its official statement, the move signals a major shift towards the integration of blockchain technology into traditional finance. The fund, built on the Ethereum network, aims to provide qualified investors with U.S. dollar yields accessible through Securitize Markets, LLC.Robert Mitchnick, BlackRock’s Head of Digital Assets, said the fund focuses on solving client issues in the digital space. “This is the latest progression of our digital assets strategy. We are focused on developing solutions in the digital assets space that help solve real problems for our clients, and we are excited to work with Securitize,” he added.BUIDL offers a stable token value pegged at $1, distributing dividends directly to investors’ wallets monthly. It focuses on investments in cash, U.S. Treasury bills, and repurchase agreements, ensuring yields for token holders on the blockchain. The fund introduces 24/7 token transfers among pre-approved investors, along with flexible custody options.Prominent crypto infrastructure providers like Anchorage Digital Bank NA, BitGo, Coinbase (NASDAQ:COIN), and Fireblocks are among the first participants supporting BUIDL. BlackRock has chosen Bank of New York Mellon for asset custody and fund management, while Securitize will manage tokenization and fund operations.Additionally, BlackRock has invested in crypto infrastructure specialist Securitize, appointing Joseph Chalom, Global Head of Strategic Ecosystem Partnerships at BlackRock, to Securitize’s Board of Directors. The fund’s token shares will be issued under specific U.S. securities regulations, with an initial investment threshold of $5 million. PricewaterhouseCoopers LLP will audit the fund operations to ensure compliance with relevant regulations.“Tokenization of securities could fundamentally transform capital markets. Today’s news demonstrates that traditional financial products are being made more accessible through digitization. Securitize is proud to be BlackRock’s transfer agent, tokenization platform and placement agent of choice in digitizing and expanding access to its investment products,” said Securitize co-founder and CEO Carlos Domingo.Earlier this month, the U.S. Securities and Exchange Commission (SEC) postponed its decision on a proposal from BlackRock for a spot ethereum exchange-traded fund (ETF). This delay marked another hiccup for the asset manager as it aims to launch the iShares Ethereum Trust, which is set to be listed on the Nasdaq should it receive approval. More

The downturn began on a Sunday, with BTC and ETH experiencing three days of declines before recovering during the US trading session, and further strengthening in Asia.A key observation from Goldman Sachs is the healthy retracement in the cryptocurrency market. This was partly expected due to the rapid ascent to mid-March all-time highs and elevated perpetual futures funding rates, which have since normalized. Bitcoin and Ethereum open interest (OI)-weighted funding rates decreased from early March peaks to more sustainable levels, signaling a cooling off from previously overheated market conditions.“Zooming out, the sudden retracement and follow-up recovery did not come as a surprise, especially if one considers the speed at which we reached the mid March ATH and the elevated perpetual futures funding rates that accompanied it, as investors looked to put on leveraged longs on crypto retail exchanges,” the report reads.“Since then, the funding rates have settled into healthier levels. BTC OI-weighted funding rate peaked on 5 March at ~107% annualized and has since retreated to ~15% annualized. ETH OI-weighted funding rate peaked on 5 March at ~104% annualized and has similarly pulled back to current ~19% annualized,” it further details.Investment activities also reflected market sentiment, with Bitcoin ETFs experiencing net outflows over three consecutive days, notably from continued outflows in Grayscale Bitcoin Trust (BTC) (NYSE:GBTC). However, aside from GBTC, other BTC ETF holdings remained relatively stable, with modest inflows despite the market downturn.An analysis of BTC holders indicated early signs of profit-taking, as suggested by on-chain activity. There’s been a slight decrease in the percentage of BTC supply held for at least one year, indicating increased market activity among medium to longer-term holders. Moreover, there’s been an uptick in transactional activity, especially within the 7-30 day band, suggesting a higher frequency of BTC changing hands monthly.Ethereum’s performance relative to Bitcoin was also underlined in the research note, with the ETH/BTC ratio dropping. The future of spot ETH ETFs remains uncertain, with regulatory decisions on proposals by Fidelity and Grayscale being delayed.The report mentions a confidential inquiry received by the Ethereum Foundation from an unspecified state authority, adding to the regulatory uncertainties surrounding the world’s second largest cryptocurrency. More

Bitcoin jumped 6% to $67,113.9 by 07:48 ET (11:48 GMT), after sinking as low as $60,000 on Wednesday. The world’s largest cryptocurrency was walloped by a heavy bout of profit-taking before the Fed, after it raced to record highs last week.The Wednesday decline was driven by profit-taking after last week’s surge and leveraged bets on rising prices, leading to a more than 15% drop in overall capitalization.Weakness in the dollar aided Bitcoin’s recovery, as the greenback fell sharply from two-week highs after the Fed. This trend also supported the broader cryptocurrency market, with world no.2 token Ethereum rising 10% on Thursday to $3,454.79.The price recovery did not come as a surprise, Goldman Sachs analysts noted, “especially if one considers the speed at which we reached the mid-March ATH and the elevated perpetual futures funding rates that accompanied it as investors looked to put on leveraged longs on crypto retail exchanges.”The Fed stuck to its forecast of a 75 basis point reduction in interest rates in 2024, while Chair Jerome Powell also flagged more, albeit slow progress towards the Fed’s 2% annual inflation target.Lower interest rates bode well for Bitcoin, which benefits from a high-liquidity environment that encourages speculative investments. The token’s bull run in 2021 came largely on the back of ultra-low interest rates in the wake of the COVID-19 pandemic.Bitcoin is already up more than 50% so far in 2024, after a stellar, over 100% rally through 2023. The token’s latest gains were driven by increased capital inflows after the approval of spot exchange-traded funds for U.S. markets earlier in 2024.The spot ETFs make investing in Bitcoin much simpler for traditional investors. This ease of access, coupled with potentially lower interest rates, could prime Bitcoin for a rally later in 2024.Analysts expect the token to cross the $100,000 level by end-2024.But Bitcoin and the broader crypto industry still has to grapple with a marked loss of faith, following a string of high-profile frauds and scandals over the past two years.The token’s perceived volatility also makes it appear less attractive to risk-averse investors.Meanwhile, retail activity has cooled over the past couple of days, but Needham analysts expect strong participation from retail investors in Q1 2024, which should bode well for crypto-related stocks Coinbase (NASDAQ:COIN) and Robinhood (NASDAQ:HOOD).“We believe the sell-side is missing the extent to which retail has come back into the crypto space, and is overstating institutional participation on the back of recent bitcoin ETFs.”[Ambar Warrick contributed to this article] More

NEW YORK (Reuters) – The cryptocurrency industry, a new financial force in the 2024 U.S. election cycle, is surveying candidates for Congress on their views around the digital asset, as the political arm of the movement gains tens of thousands more followers and adds to its war chest. The survey from the Stand With Crypto Alliance, an advocacy group that aims to organize voters who own crypto and influence public opinion, is a way for a young industry like crypto to engage in political activity in lieu of trade organizations, said Olivia Buckley of OpenSecrets, a research group that tracks money in U.S. politics.Ultimately candidates who answer the survey in ways the industry deems positive may see support from groups that want to boost crypto-friendly candidates. Pro-crypto non-profits have been appearing in greater numbers over the past few years, Buckley said.”Crypto regulation at the federal level remains very much contested and murky, so seeing which candidates can garner support from the industry could be telling as far as what’s to come in Congress,” she added.Over a dozen candidates have already filled out the survey, including those from California, Alabama, Texas, Indiana and Maryland, according to Stand With Crypto, though the group declined to provide names. It plans to push the survey out to candidates of the 468 seats in Congress up for election in November, the group told Reuters. “It’s for crypto advocates and the crypto community to understand where their policymakers, elected officials and candidates in federal races stand on the issue,” said Nick Carr, chief strategist for Stand With Crypto.The survey, seen by Reuters, asks questions such as whether a candidate believes cryptocurrencies like Bitcoin will play a major role in technological innovation, and whether a candidate believes it is important for the U.S. to modernize the regulatory environment for crypto.It also asks whether a candidate would vote in favor of certain legislation, such as a bill introduced to the House of Representatives last year that would establish a regulatory framework for digital assets. Stand With Crypto’s member count has grown to 370,000 as of Wednesday, up from 315,000 just before March 5’s Super Tuesday contests, according to its website. The group was launched in part by Coinbase (NASDAQ:COIN), an online platform for buying and selling crypto.Pro-crypto candidates are already receiving support from three new super PACs – Fairshake, Defend American Jobs and Protect Progress – that put millions of dollars towards Super Tuesday races. Collectively, the three super PACs have spent more than $21 million in independent expenditures this election cycle, according to OpenSecrets. More

Sphere 3D (ANY) Terminates Master Hosting Services Agreement with Rebel Mining

On March 14, 2024, Sphere 3D (ANY) terminated its Master Hosting Services Agreement, dated April 4, 2023, between the Company and Rebel Mining Company, LLC (the “Agreement”), in accordance with its terms. The termination of the Agreement is effective immediately. The Company has reserved all rights, including the right to assert damages for breach of contract under the Agreement. More

Earlier in the day, a broader risk-off move in currency markets saw traders pivot into the dollar while collecting profits in Bitcoin after it surged to record highs of over $73,000 earlier in March.The dollar index hit a two-week high before the conclusion of a Fed meeting later in the day, where the central bank is widely expected to keep rates steady and offer more cues on when it plans to begin cutting interest rates.Bitcoin price had fallen as far as $60,771.1 earlier in the day.Adding to the downward pressure on Bitcoin, the token saw a flash crash on crypto exchange BitMEX, where it sank as low as $8,900 following a series of massive sell orders on Tuesday. BitMEX said it was investigating potential wrongdoing.Since reaching its recent all-time highs, the entire cryptocurrency market had lost approximately $400 billion in value, with significant declines also seen in other digital currencies like Ether and Solana. However, ahead of the FOMC meeting, Bitcoin and other cryptocurrencies have made some gains.”We are seeing a natural market shift at this point, which is a culmination of several important factors,” Nejc Krzan, head of NiceX Exchange, told Investing.com.Among other things, he added that “many investors who recently came into the market who were hoping the BTC price would continue to break through the all time high and rise further, have sold to take short term gains.” This is likely the key reason why Bitcoin price is correction from fresh record highs. Looking ahead, Jonny Huxtable, CEO of LinkPool, told Investing.com that they “anticipate sideways, downwards chop going into the halving and for some time after it similar to the 2015-2017 uptrend.””BTC is seeing more demand than ever, and with its daily output about to be cut in half, we anticipate an unprecedented market reaction to the great supply shock BTC will face to date,” he added.The Federal Open Market Committee has given a boost to risk sentiment by adjusting growth and rate projections upwards. This way, the FOMC signals a belief in the economy’s ability to achieve a ‘soft landing’, creating a favorable scenario for risk assets, including Bitcoin.The Federal Reserve’s revision of its 2024 growth forecast aligns with current consensus views, but it has also increased its projections for 2025 and 2026 to 2%, showing even more optimism than many economists. Moreover, with unemployment forecasts remaining stable, the Fed does not foresee a significant rise from the current 3.9%.Fed Chair Powell presented a relatively dovish perspective during his press conference. He suggested that the recent inflation data’s potential seasonal influences do not alter the overall narrative of cooling price increases and the possibility of reduced interest rates.Powell also indicated that the pace of Quantitative Tightening (QT) might soon decelerate.Data from digital asset manager CoinShares showed earlier this week that Bitcoin-linked investment products saw total inflows of $2.86 billion in the past week, as its recently-approved ETFs continued to garner investor interest.But the Grayscale Bitcoin Trust (BTC) (NYSE: GBTC) saw sustained outflows, of a whopping $1.25 billion over the past week. This saw the fund manager’s assets under management sink by about $2 billion in the past week, adding to the selling pressure on Bitcoin.Still, Bitcoin remained up around 50% so far in 2024, having seen massive buying after the Securities and Exchange Commission approved spot ETFs in U.S. markets.Anticipation of the token’s halving event, which halves the rate at which new Bitcoin is generated every four years, is also expected to support the cryptocurrency. The halving event is due to take place in April.Analysts said that the current weakness in Bitcoin presented a buying opportunity for the token ahead of its halving.(Ambar Warrick, Vahid Karaahmetovic, and Sam Boughedda contributed to this article.) More