Cryptocurrency

Surpassing even Tesla (NASDAQ:TSLA)’s notable accumulation, BlackRock’s Bitcoin holdings now rank as the third-largest among public companies, underscoring the swift success of its newly launched ETF. Notably, this remarkable achievement transpired less than a week after the historic debut of spot Bitcoin ETFs on the NASDAQ.According to Bloomberg’s senior analyst Eric Balchunas, IBIT has exhibited remarkable market activity. On Tuesday, Jan. 16, the ETF outpaced all 500 new 2023 ETFs, underlining the heightened interest and trading volume surrounding BlackRock’s cryptocurrency venture.As Grayscale continues to manage a substantial 617,000 BTC, the fund’s lingering influence may pose constraints for the cryptocurrency market. Investors, eager to exit the ETF, could intensify pressure on spot BTC sales on Coinbase, adding a layer of complexity to the evolving landscape.This article was originally published on U.Today More

This bug concerns the Ethereum staking mechanism and how the network reaches consensus. In essence, if a majority client, holding more than 2/3 of the stake, has a bug, it could inadvertently build an invalid chain that the network would consider finalized due to the majority stake’s “agreement.”If validators running this buggy client commit to this incorrect chain, any attempt to switch to a correct chain could result in severe penalties due to how the Ethereum protocol is designed to penalize what it sees as “equivocating” validators.What makes this situation particularly alarming is the scale of the potential impact. If this bug manifests, the validators could find themselves in a predicament where they either continue to support an incorrect chain or switch to a correct one at great personal cost. The validators running the buggy client would face a dilemma: lose their stake through penalties or persist with an invalid chain, endangering the network’s integrity.For the average Ethereum holder not involved in staking or blockchain development, this might seem distant, but the implications can be far-reaching. An individual commented that the situation is “pretty scary,” and it is also the main reason why they do not stake any ETH. This sentiment reflects a potentially surging concern among holders who fear the ripple effects a bug of this magnitude could have on the network’s trust and stability.Centralized exchanges (CEXes), although well capitalized, might also feel the effect of potential finalization issues. Though their liquidity is far more resilient, mitigating large losses might still become an issue.This article was originally published on U.Today More

(Reuters) – Bitcoin celebrated its 15th birthday this month by bursting onto Wall Street with an ebullient bang. Now the adolescent asset may have to grow up fast.Investors have embraced 11 U.S. exchange traded funds (ETFs), tracking bitcoin’s spot price, that began trading on Jan. 11 after receiving regulatory approval; after two trading days, they held a total of 644,860 bitcoin worth more than $27 billion, according to data from analytics company Glassnode.Much of that – more than 500,000 bitcoin – was already held in a Grayscale Bitcoin Trust that had previously been a closed-end fund before it was allowed to relaunch as one of the new ETFs.The 11 ETFs have seen total inflows of $4.1 billion since Jan. 11, according to CoinShares data. The entrance of the world’s largest cryptocurrency into the world’s largest stock market “marks the end of the beginning of bitcoin’s maturation and growing-up phase”, said Glassnode.It echoed the views of many market players who said the increase in liquidity would tame bitcoin’s volatility over time. “This is a logical, nearly-inevitable evolution as a newborn security with a wildly uncertain value and price matures into a mainstream asset with a million punters punting,” said Brent Donnelly, a currency trader and president of Spectra Markets. The total value of bitcoin traded on cryptocurrency exchanges is about $500 million a day on average, Donnelly said. By comparison, the U.S. spot bitcoin ETFs recorded $4.6 billion in volume on their first day of trading. “I would assume even as things normalize, NYSE dollar value traded of bitcoin will be larger than what goes through on the blockchain,” Donnelly said.Yet it’s far too soon to gauge whether the new bitcoin investment products will be able to retain investor interest over the long run, market participants cautioned. Nonetheless, the 644,860 bitcoin held by the 11 U.S. ETFs after two trading days represented about 30% of all global spot bitcoin ETF holdings, Glassnode data showed.Even if trading volumes subside as excitement ebbs, the increased market liquidity could see the launch of derivative products that bet on bitcoin’s volatility, according to some market watchers.”Due to the current importance of U.S. ETF flows, we expect the U.S. trading session to be the most materially important session in terms of price action in bitcoin,” said Anders Helseth, head of research at K33 Research, referring to the near term.BITCOIN WHALES MAKE MOVEBitcoin, birthed by the mysterious Satoshi Nakamoto who mined the first block on Jan. 3 2009, has seen its fair share of spills and thrills over the past 15 years.In its latest drama, it has leapt 50% since mid-October on bets that the long-awaited approval for ETFs, allowing access to the cryptocurrency via regular stock exchange, would attract fresh capital from retail and institutional investors alike. The sharp rally in the months leading to the ETF decision encouraged investors to cash in, pressuring prices.After hitting a two-year peak of $49,033 following the ETF approval, the notoriously volatile cryptocurrency slid 16% to $40,267. It remains about 40% below its all-time peak of $69,000.There are signs that whales, the investor cohort that owns more than 1,000 bitcoin each and control a major chunk of bitcoin supply, are booking some gains.The total supply of bitcoin held by long-term holders – those who have held for at least six months – has declined by about 75,000 from an all-time high in November as older coins are spent to take profits, according Glassnode data.On average, a long-term bitcoin holder is sitting on 55% unrealized profit, the data showed. “If you’re are sitting on very large unrealized profits as a whale, it really makes sense that you start monetizing some of your portfolio,” said Aurelie Barthere, analyst at blockchain data firm Nansen. More

Back then, Buterin had responded to a question about the possibility of building Ethereum on top of Bitcoin, expressing concerns about potential conflicts with Bitcoin’s development team. He cited fears that protocol rules might change, making it difficult for him to build on a base protocol at odds with his vision.Fast forward to January 2024, and Wright seized the opportunity to comment on Buterin’s past remarks. He argued that Ethereum only exists due to centralized development teams that have the power to alter the protocol. Wright mused about the hypothetical scenario of having everything built on Bitcoin, envisioning a more streamlined and less fragmented system.While Ethereum has achieved considerable success as a platform for smart contracts and applications, Wright argues for the stability and originality of Bitcoin’s protocol.Moreover, it revives the centralization debate in both cryptocurrency ecosystems. On the one side is OFAC’s censorship of ETH transactions; on the other side is the enormous concentration of BTC in the hands of whales and miners.This article was originally published on U.Today More

The staking service promises an estimated annual yield of around 4% for users, after deducting a 10% commission fee that goes to MetaMask. This offering is made possible through a partnership with Consensys Staking, renowned for its operational integrity, evidenced by a record of zero slashes across the more than 33,000 Ethereum nodes it oversees. The collaboration between MetaMask and Consensys Staking provides users with several benefits:While the introduction of such staking services by MetaMask enhances user accessibility and ease of use, it has also sparked discussions about the potential for centralization within the cryptocurrency community. Some members express concerns that entities like Consensys Staking and Lido, which manage significant portions of Ethereum validator nodes, could influence the decentralized nature of blockchain governance. Despite these debates, the trend towards staking-as-a-service platforms is anticipated to expand, as it reduces the barriers for users to contribute to the security of the Ethereum network.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

This move follows December 2023 reports from creditors who confirmed receiving compensation in Japanese yen through their PayPal (NASDAQ:PYPL) accounts, with the ongoing repayments scheduled to extend into 2024.The central concern emerging from this development is the significant volume of Bitcoin that Mt. Gox is rumored to be releasing onto the market. While estimates vary, ranging from 142,000 BTC to 200,000 BTC, the lack of consensus among sources has prompted increased scrutiny within the crypto community. Market participants are particularly attentive as the countdown begins for a potential 200,000 BTC release within the next 60 days.Complicating matters, Mt. Gox presently holds 143,000 BCH, intensifying speculation about the combined impact of the Bitcoin and Bitcoin Cash release on market dynamics. With an additional 69 billion yen reportedly under the exchange’s control, the situation has garnered attention for its potential to influence broader market sentiment.As the industry closely monitors this unfolding scenario, analysts and enthusiasts are awaiting further details and confirmation from Mt. Gox. The reserved anticipation within the community underscores the significance of this story, making it a focal point for careful observation in the weeks ahead.This article was originally published on U.Today More

Garlinghouse’s skepticism about Dogecoin’s utility in the digital currency space led to immediate reactions. Markus responded on a social media platform, drawing parallels between Dogecoin and Bitcoin to highlight its significance. This exchange set off a wave of debates among crypto enthusiasts and investors, with many taking to online forums to voice their opinions on the matter.Despite the controversy, Dogecoin has shown resilience in the market. The meme-inspired cryptocurrency experienced a minor setback with a 24-hour price decline of 3.2%. However, it bounced back over the week, posting a 3.3% gain. This steady performance has kept Dogecoin’s value hovering near $0.08, according to data from CoinGecko.The dialogue at Davos and the subsequent online debates underscore the ongoing discussions about the value and utility of various cryptocurrencies in an ever-evolving digital economy. As industry leaders and creators defend their positions, the market continues to react, reflecting the dynamic and speculative nature of cryptocurrency investments.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

Bitcoin hit a seven-week low and again fell below $40,000 despite the initial excitement surrounding the approval of several spot exchange-traded funds (ETFs).Bitcoin price witnessed a robust surge in the past year amid expectations that the Securities and Exchange Commission (SEC) would greenlight ETFs directly tracking its price — a first for U.S. markets. However, the cryptocurrency’s performance post-approval has been lackluster, contrary to predictions of a significant price surge fueled by increased institutional capital.Moreover, JPMorgan analysts lowered their rating on the stock to Underweight from Neutral on the risk that the 2023 positive catalyst – Bitcoin ETF approval – could reverse in 2024.“While we continue to see Coinbase as the dominant U.S. exchange in the cryptoecosystem and a leader in cryptocurrency trading and investing globally, we think the catalyst in Bitcoin ETFs that has pushed the ecosystem out of its winter will disappoint market participants,” analysts said in a note.With Bitcoin prices under pressure in recent days, analysts see “greater potential for cryptocurrency ETF enthusiasm to further deflate, driving with it lower token prices, lower trading volume, and lower ancillary revenue opportunities for firms like Coinbase.”Hence, analysts see “the potential for 2024 to be a more challenging year for Coinbase’ stock, despite what we see as continued progress in various meaningful initiatives including its buildout of derivatives and its Layer-2 Base.”JPMorgan analysts also cut the price target to $80 per share, signaling a downside risk of about 35% from current prices. More