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The correlation between cryptocurrencies and the S&P 500 (SPI:SP500) reached 0.67, a level unseen since 2022. This increase reflects the impact of macroeconomic factors on cryptocurrency markets, such as US interest rates and monetary policies. Analysts expect this correlation to persist, especially with a soft landing anticipated for the US economy, benefiting risk assets, including cryptocurrencies. Optimism also grows with the potential for more favorable crypto policies after the US presidential elections.
Riot Platforms’ (NASDAQ:RIOT) attempt to acquire Bitfarms (NASDAQ:BITF) concluded with a mutual agreement. Andres Finkielsztain left Bitfarms’ board, replaced by Amy Freedman. Riot withdrew its amended requisition and agreed not to increase its stake above 20% without approval, provided it holds 15% or more of Bitfarms’ outstanding common shares. Both companies agreed to cooperate until 2026. The Bitfarms shareholder meeting, which will decide on a new director and a rights plan, will take place by November 20. Riot maintains a 19.9% stake and will review its investment later.
BlackRock (NYSE:BLK), the world’s largest asset manager, proposed an amendment to its iShares Bitcoin Trust ETF (NASDAQ:IBIT) in response to concerns about Coinbase Custody (NASDAQ:COIN). The new rule mandates that ETF withdrawals be processed on-chain by Coinbase Custody within 12 hours. This follows criticism about custody transparency, with investors questioning if Coinbase was manipulating the Bitcoin market. The company assured that all transactions are settled on-chain but prefers to keep institutional transaction addresses confidential.
On September 20, Bitcoin ETFs recorded $92 million in inflows, led by Fidelity’s (AMEX:FBTC) with $26.1 million, followed by Ark’s (AMEX:ARKB) with $22 million. Bitwise’s (AMEX:BITB) added $15.1 million. Ethereum ETFs, meanwhile, saw little activity, with only $2.9 million in inflows, all concentrated in Grayscale’s mini ETF (AMEX:ETH). The disinterest in Ethereum ETFs highlights institutional preference for Bitcoin.
Last week, crypto funds managed by companies like BlackRock and Fidelity added $321 million after two weeks of outflows. According to CoinShares, the FOMC’s dovish stance and a 50 basis point interest rate cut boosted inflows. Total assets under management rose 9%, reaching $9.5 billion.
The cryptocurrency market started the week with slight gains. In the last 24 hours, Bitcoin (COIN:BTCUSD) increased by 0.3%, surpassing $63,200, while Ether (COIN:ETHUSD) rose 3%, reaching $2,665. Over the last seven days, BTC rose about 9.7%, while ETH increased by 17%. According to CoinGlass, $64.23 million in short positions and $54.42 million in long positions were liquidated in the past 12 hours.
The 50 basis point interest rate cut in the US is influencing trading, while a report by 10x Research highlights that Bitcoin could see a significant rally by the end of 2024. The report identifies catalysts including a possible $5 to $8 billion payment from FTX and seasonal influences. Liquidity and macroeconomic conditions could support the bullish momentum through 2025. Despite the optimism, the history of up to 70% drops in previous cycles warns of caution.
Core Scientific (NASDAQ:CORZ) is becoming a major player in AI hosting after signing a 12-year contract with CoreWeave. Brokerage Canaccord initiated coverage of the stock with a buy rating and a $16 price target, driven by the transformative deal. Canaccord highlighted AI revenue growth, better cash flow, and future acquisitions. The company also maintains 230 MW of capacity for Bitcoin mining, in addition to the 500 MW redirected for AI. Core Scientific’s stock rose 4% during Monday’s trading.
Despite China’s cryptocurrency ban since 2021, Chinese mining pools still control over 55% of the Bitcoin network, according to Ki Young Ju, CEO of CryptoQuant. However, this dominance is waning, with US pools managing about 40% of the network, focusing on institutional miners. This shift reflects a gradual transition of mining operations out of China, especially to the United States, where activity continues to grow.
Swiss cryptocurrency bank Sygnum secured a cryptocurrency license in Liechtenstein, allowing it to offer regulated digital services, such as brokerage and custody. The license positions the company to operate across the European Union by 2025, leveraging the MiCA regulation, which standardizes crypto asset rules in the region. Additionally, Sygnum plans to expand into Hong Kong and strengthen its presence in markets like Luxembourg and Abu Dhabi, aligning with its growing profitability and key new partnerships.
The Hong Kong Monetary Authority launched the second phase of the e-HKD pilot, exploring advanced uses such as tokenized deposits and digital asset settlement. With participation from 11 companies, the HKMA aims to integrate digital currencies into real-world commercial scenarios. The initiative, now renamed Project e-HKD+, seeks to expand the accessibility of e-HKD for individuals and businesses, further developing the necessary technology and legal framework.
A hacker exploited the DeFi protocol Bankroll Network on September 22, stealing about $230,000, according to Cointelegraph Magazine. The attack involved several BNB (COIN:BNBUSD) self-transfers, highlighted by the security platform TenArmor. The transactions showed discrepancies, suggesting the hacker exploited a vulnerability allowing them to withdraw more than deposited, likely using flash loans. Bankroll Network’s team has yet to confirm if this was an exploit, and the case is still under investigation.
Anthony Shnayderman and Itai Bronshtein, two OpenSea users, have sued the platform, alleging it sold NFTs as unregistered securities, violating US securities laws. They claim the NFTs purchased, including those from the Bored Ape Yacht Club, lost value due to their alleged illegality. The lawsuit also references an SEC notice to OpenSea and highlights the sale of unregistered securities, citing previous cases like Stoner Cats 2 and Impact Theory.
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