Cryptocurrency

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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

Schiff noticed that Bitcoin (BTC) dropped from $49,000 to below $42,000 in less than a day. As such, the first cryptocurrency brought a double-digit decline to its holders straight after the most anticipated BTC milestone of 2024.Bitcoin (BTC) dropped as the dust settled after the overhyped launch of 11 Bitcoin ETFs in the U.S. Also, as covered by U.Today previously, the migration of liquidity from Grayscale’s OTC trusts might have contributed to the dropdown.SkyBridge Capital founder Anthony Scaramucci called the sell-off of GBTC shares a powerful trigger of the painful Bitcoin (BTC) price drop to two-week lows.As of printing time, the Bitcoin (BTC) price managed to start recovering from the losses: BTC is changing hands over $42,500 on major spot exchanges.While some experts treat the ongoing process as an ordinary “sell the news” event, BitMEX founder Arthur Hayes warned that BTC might turn into an ordinary TradFi asset.Ironically, Hayes’ words are echoed by the SEC Chairman Gary Gensler, who finds that the Bitcoin ETF is contradictory to Satoshi Nakamoto’s vision for his brainchild.This article was originally published on U.Today More

The expert’s optimism is fueled by the recent approval of spot-based Bitcoin ETFs by the Securities and Exchange Commission for multiple companies.Addressing the current state of Bitcoin ETFs, Mow notes a period of market adjustment. The recent launch of Bitcoin ETFs with billions in trading volume and BlackRock (NYSE:BLK)’s acquisition of 11,500 BTC have contributed to the ongoing recalibration. Meanwhile, GBTC holders are exiting positions, creating sell pressure and pushing prices down. Mow believes this process will not be prolonged, as many are hesitant to sell due to substantial tax implications, eventually leading to Grayscale’s fee capitulation.As 2024 unfolds, Mow’s bold prediction adds an extra layer of anticipation and excitement to Bitcoin. The crypto community eagerly awaits to see if the expert’s foresight will indeed materialize in the imminent time.This article was originally published on U.Today More

There have always been some forms of criticism about Bitcoin, especially from prominent figures like CNBC’s Mad Money Host Jim Cramer, JPMorgan CEO, Jamie Dimon and Peter Schiff. The network statistics presented by the Ark Invest CEO validate the counterargument that shows Bitcoin has value, and most importantly, that it has a high level of security.Cathie Wood noted that Bitcoin’s intricate network is “orders of magnitude larger than the combined size of the clouds that Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOGL), and Microsoft (NASDAQ:MSFT) have built over the last 15-20 years.”These comments were a direct response to the post from Yassine Elmandjra, Ark Invest’s director of digital assets, who highlighted that Bitcoin’s hash rate has hit an all-time high (ATH) of 500 exahashes/s this month. Yassine shared insane statistics, including how Bitcoin, by the number of raw operations per second, performs approximately 500x more than the world’s most powerful supercomputer.However, the ecosystem has continued to grow, with the United States Securities and Exchange Commission (SEC) validating this growth when it approved 11 spot Bitcoin Exchange Traded Fund (ETF) applications from the likes of Ark Invest and BlackRock (NYSE:BLK).While this move has given corporate investors exposure to the protocol, the forthcoming Bitcoin halving event is also a major indicator that the coin is designed with much intentionality in hopes of making it as valuable as it is turning out to be today.Amid all the positive trends surrounding it, Bitcoin has dropped by 3.38% in 24 hours to $41,401.15 to lead the ongoing market’s bearish consolidation.This article was originally published on U.Today 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 network’s dynamic difficulty adjustments play a key role in maintaining a consistent block discovery rate, despite the surge in hash rate. This mechanism ensures that the time required to discover new blocks and process transactions remains stable. This achievement is not just a technical feat; it also serves as a testament to Bitcoin’s computational prowess, which now exceeds that of some of the world’s most powerful supercomputers. The milestone is viewed as a positive indicator of investor confidence, reflecting trust in the resilience and capability of the Bitcoin network.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More