Cryptocurrency

The world’s largest cryptocurrency was last down 3.98% at $39,938.00, trading at its lowest since Dec. 4 after a brief recovery. Ether, the second largest cryptocurrency, was down 6.37% at $2,328.30.Bitcoin had rallied on growing excitement the U.S. Securities and Exchange Commission (SEC) would approve bitcoin ETFs, opening up the cryptocurrency to a slew of new investors. Bitcoin gained around 70% from August, when a federal court forced the SEC to review its decision to reject Grayscale Investment’s bitcoin ETF application.Some analysts said they had expected bitcoin to initially pare some of those gains.Other market-watchers said on Monday the cryptocurrency was having trouble competing with traditional stocks after the S&P 500 benchmark index notched fresh record highs on Monday driven by semiconductor and other tech stocks. “It feels like bitcoin investors are running up a descending escalator right now as traditional financial benchmarks enjoy the easier ride to record highs,” said Antoni Trenchev, co-founder of crypto lender Nexo.He noted previous major crypto events, including the initial public offering of crypto exchange Coinbase (NASDAQ:COIN) and the launch of bitcoin futures, were followed by similar bitcoin slumps.Trenchev said bitcoin was also pressured by outflows from Grayscale Investment’s bitcoin trust, which was converted into an ETF when the SEC approved the other bitcoin ETF products earlier this month.CoinDesk reported on Monday that FTX, which entered bankruptcy in 2022, has sold 22 million shares worth close to $1 billion in the ETF.”Spot bitcoin ETFs are in danger of joining the … crypto hall of infamy,” Trenchev said. More

Bitcoin fell 4.3% to $39,867.0 by 19:54 ET (00:54 GMT).The world’s largest cryptocurrency saw a strong melt-up over the past year amid speculation that the Securities and Exchange Commission (SEC) would approve ETFs that directly track the price of the token- a first for U.S. markets. The token peaked at a near two-year high earlier this month, just as the SEC approved the spot ETFs.But bitcoin’s performance since the approval has been largely underwhelming, defying forecasts that the price would shoot up with the entrance of more institutional capital.All the spot ETFs which were approved and listed earlier this month- including BlackRock’s (NYSE:BLK) iShares Bitcoin Trust (NASDAQ:IBIT), ARK 21Shares Bitcoin (NYSE:ARKB) and WisdomTree Bitcoin (NYSE:BTCW), were trading down between 13% and 14% since their debut. The ETFs had marked a strong first day of trading, but have fallen almost consistently so far in their price performance and trading volumes.Bitcoin was pressured by resilience in the dollar, amid growing expectations that the Federal Reserve will keep interest rates higher for longer. Traders were seen sharply cutting bets this week that the Fed will begin trimming rates by as soon as March 2024.Bets on a March rate cut had also driven gains in bitcoin over the past two months. But the token, which offers no yield, usually sees a subdued performance in a high-rate environment.While the SEC’s approval of the spot ETFs offered some regulatory credibility to the industry, SEC Chairman Gary Gensler maintained his stance that crypto assets were “exceptionally risky” investments.The crypto industry is still struggling with a massive loss of faith, following several high-profile bankruptcies and regulatory crackdowns over the past two years. The SEC has ongoing cases against major exchanges Coinbase (NASDAQ:COIN) and Binance, the latter of which was also slapped with billions of dollars in fines in late-2023 over criminal charges raised by the DOJ.Bitcoin’s recent downturn largely contrasted with a sharp rally in traditional financial markets, particularly U.S. equities. The S&P 500 and the Dow Jones closed at record highs on Monday, buoyed chiefly by a melt-up in technology stocks ahead of several major earnings due this week.Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon INVPRO2024 to avail a limited time discount on our Pro and Pro+ subscription plans. Click here to know more, and don’t forget to use the discount code when checking out! More

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In reaction, BTC prices rose to a new multi-year high, reaching $49,102. The market then fell 18% over the weekend, reaching fresh year-to-date lows of $40,236.As with any important event, holders of Bitcoins enjoy debating whether it was priced in or not.In this regard, Julio Moreno, the head of research at CryptoQuant, debunks the widely circulated narrative that the Bitcoin price drop was caused by Grayscale’s GBTC selling Bitcoin.Before being converted to an ETF from a trust, Grayscale Bitcoin Trust (GBTC) was one of the only options for stock traders in the United States to obtain exposure to Bitcoin price swings without having to purchase the actual cryptocurrency.While GBTC has seen remarkable outflows after its uplisting into an ETF, a chunk of these have been from investors moving to lower-fee ETFs.Moreno highlighted that, while GBTC sold approximately 60,000 Bitcoins, other Bitcoin ETFs net purchased roughly 72,000 Bitcoins, thus offsetting the sales of BTC from Grayscale’s GBTC.He attributes the volatility in Bitcoin’s price to selling by Bitcoin holders (short-term traders and whales) who took profits following last year’s surge, noting that the ETF approval might just be the “sell-the-news” event.However, several metrics in both the on-chain and derivatives domains suggest that a non-trivial portion of Bitcoin investors did treat the ETF approval as a sell-the-news event.While there are other key driving factors behind the interim volatility, both futures and options markets have seen a meaningful uptick in open interest (OI) since mid-October, according to Glassnode.Open interest in both markets remains around multi-year highs, showing that leverage is rising and becoming a more dominant force in markets.At the time of writing, BTC was up 0.58% in the last 24 hours to $41,543, per CoinMarketCap data.This article was originally published on U.Today More

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

Grewal argued that public ledger systems, which are foundational to cryptocurrency operations, provide transparency that aids in tracking transactions. This feature, he pointed out, serves as a deterrent to potential misuse for illicit activities. In an interesting turn, the GAO itself recognized the utility of these ledger systems in tracing cryptocurrency transactions, which aligns with Grewal’s assertions about their effectiveness in preventing sanctions evasion.As cryptocurrencies continue to integrate into the global financial system, the balance between innovation and compliance remains a critical point of discussion for industry leaders and regulatory bodies alike.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

The Valour HBAR Staking ETP is designed to broaden the accessibility of cryptocurrencies to institutional investors through traditional exchanges such as XETRA. The product’s introduction aligns with Valour’s ongoing efforts to expand its portfolio of physically backed digital asset products. Previously, the company partnered with Bitcoin Suisse to reinforce its commitment to the digital asset space.Hedera Hashgraph distinguishes itself in the cryptocurrency market with a market capitalization of $2.5B and a ranking among the top forty global cryptocurrencies. Governed by an independent council of Fortune 500 companies and leading academic institutions, Hedera’s decentralized ledger technology is noted for its low energy consumption and robust security features.Valour’s product offerings also include the 1Valour Bitcoin Physical Carbon Neutral ETP, which launched on June 15, 2023. This ETP, like Valour’s other products, is backed by digital assets held with regulated custodians, demonstrating the company’s commitment to secure and environmentally conscious investment options.DeFi Technologies, Valour’s parent company, continues to pioneer the integration of traditional capital markets with decentralized finance, focusing on the development of industry-leading Web3 technologies. This approach is aimed at democratizing investor access to the evolving financial ecosystem.This news is based on a press release statement from DeFi Technologies Inc. and does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities offered have not been registered under the U.S. Securities Act and may not be offered or sold in the United States absent registration or an exemption from such registration.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. 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