Possible effects on Bitcoin price with US dollar depreciation and
Mt. Gox refund
Cryptocurrency traders anticipate a potential depreciation of
the US dollar, which could favor Bitcoin’s recovery (COIN:BTCUSD).
Conversely, some banks still see a strengthening dollar on the
horizon. At the time of writing, Bitcoin was down by -2.5%, trading
at $64,771.50. Since March, Bitcoin has remained between $60,000
and $70,000. The appreciation of the US Dollar Index (DXY), which
has reached recent highs, has limited Bitcoin’s advance.
Expectations of higher interest rates could strengthen the dollar,
while a decline is seen as positive for the cryptocurrency
market.
Additionally, K33 Research experts warned that the imminent
return of over $9 billion in Bitcoin from Mt. Gox could negatively
affect the cryptocurrency’s value. Recent data on the amount of
cryptocurrencies and fiat currencies owed to creditors, along with
repayment dates, suggest that refunds may begin soon. With a
significant amount of BTC and Bitcoin Cash (COIN:BCHUSD) involved,
the release of these coins could cause market turbulence. Fernando
Pereira of Bitget highlights that the refund will not occur all at
once and is not imminent. Pereira suggests that market declines are
more likely to result from profit-taking. “The return of BTC to
customers could indeed bring selling pressure to the market,
especially as we are in a very attractive selling area, but this
return is unlikely to happen anytime soon and not all at once. More
market declines are indeed likely to occur soon, but due to natural
profit-taking situations, such as long-term investors exiting the
market at the current price range, and not necessarily due to
potential sales from Mt.Gox customers,” commented Pereira.
Recent movements in the Bitcoin ETF market
On April 23, bitcoin exchange-traded funds (ETFs) in the US
recorded the third consecutive day of net inflows, totaling $31.64
million. While the Grayscale ETF (AMEX:GBTC) saw outflows of $66.88
million, the BlackRock bitcoin spot ETF (NASDAQ:IBIT) received
$37.92 million in inflows, the largest of the day. Since January,
US bitcoin ETFs have accumulated a total net flow of $12.42
billion.
Hong Kong sets launch date for Bitcoin and Ethereum ETFs amid
potential fee war
In a significant development for the crypto asset market, Hong
Kong has approved the launch of Bitcoin and Ethereum
exchange-traded funds (ETFs), with trading set to begin on April
30. According to Bloomberg, this news could trigger a fee war among
issuers, similar to what is happening in the US market. Some funds
started with competitive fees, with Harvest initiating management
without costs, increasing to 0.3% after six months, while ChinaAMC
and Bosera established fees of 0.99% and 0.60%, respectively.
Grayscale and BlackRock update Ethereum ETF filings despite
regulatory uncertainties
Grayscale Investments and BlackRock are advancing with updates
to their Ethereum spot ETF filings, while the SEC delays decisions.
Grayscale submitted an S-3 and an S-1 filing for a mini Ethereum
ETF, while BlackRock proposes changes to include cash creation and
redemption. The SEC is expected to decide in May, with approval
expectations low.
Block advances in Bitcoin mining technology development
Block (NYSE:SQ), led by Jack Dorsey, is enhancing its presence
in the cryptocurrency sector by developing its own bitcoin mining
system. The company, formerly called Square, announced that it has
finalized a three-nanometer mining chip and is collaborating with a
world-renowned semiconductor foundry to produce it. After
consulting with the mining community, Block decided to create a
complete mining system. This includes both the chip and the system
design, aiming to decentralize and innovate in a market currently
dominated by a few large players, such as Bitmain, which controls
about 60% of the market.
DMG Blockchain Solutions collaborates with PayPal and Energy Web to
decarbonize Bitcoin
DMG Blockchain Solutions (TSXV:DMGI), an integrated blockchain
technology and data center company, announced a strategic
partnership with PayPal (NASDAQ:PYPL) and Energy Web to develop
carbon-neutral Bitcoin transaction methods. The companies are
joining forces to research and advance the use of Bitcoin as an
environmentally sustainable payment method, demonstrating
commitment to reducing the carbon footprint in the cryptocurrency
industry.
Tesla maintains Bitcoin investment strategy
Tesla (NASDAQ:TSLA), under the leadership of Elon Musk,
continued to hold its considerable Bitcoin (COIN:BTCUSD) reserves
during the first quarter of 2024, marking the seventh consecutive
quarter without selling its cryptocurrency. This decision reflects
a long-term investment strategy and a belief in blockchain
technology, despite market fluctuations. In the recent earnings
report, Tesla confirmed that it retained its stock of 9,720 BTC,
valued at over $711 million.
DOJ proposes 36-month prison sentence for former Binance CEO
Changpeng Zhao
The US Department of Justice recommended a 36-month prison
sentence and a $50 million fine for Changpeng Zhao, former CEO of
Binance. Arguing the severity of regulatory violations, including
failures in anti-money laundering policies, the DOJ seeks a severe
penalty to deter similar practices. In contrast, Zhao’s defense
suggests probation, highlighting his cooperation and lack of
precedents for incarceration in similar cases. The sentence will be
decided on April 30. Before his sentencing for sanctions violations
and anti-money laundering, Changpeng Zhao apologized to Judge
Richard A. Jones for his failures in leading the exchange. In the
letter, Zhao admitted to not implementing adequate compliance
controls from the start, taking full responsibility for his
actions. He also mentioned future initiatives, including funding
educational and research projects.
US regulators seek billion-dollar fine against Terraform Labs and
co-founder
Federal regulators are seeking a $5.3 billion fine against
Terraform Labs and Do Kwon for investor fraud. The SEC seeks
restitution and pre-judgment interest of $4.7 billion, along with
civil penalties of $420 million and $100 million. The company and
Kwon contest the fines, arguing for lower amounts. The case arises
from allegations of deception regarding the safety of investments
in the Terra USD stablecoin and its blockchain.
Central Bank of Nigeria denies directive against cryptocurrency
exchanges
The Central Bank of Nigeria denied instructing financial
institutions in the country to identify users of cryptocurrency
platforms Bybit, KuCoin, OKX, and Binance, contradicting a CoinDesk
report. The bank’s denial emerged in a context of tensions between
Binance and the Nigerian government, involving accusations of
manipulation of the local currency, the naira. The bank’s denial
was briefly withdrawn but later reaffirmed.
Jane Street Capital increases stake in Coinbase
Jane Street Capital increased its stake in Coinbase
(NASDAQ:COIN), holding 5.3% of the shares in February, valued at
$1.4 billion. The investment has grown since December, when they
held 1.92%. Other major investors include the Vanguard Group and
BlackRock (NYSE:BLK).
Strike expands operations in Europe with expanded Bitcoin services
Strike, the financial services platform, expanded its presence
in Europe, offering bitcoin transactions (COIN:BTCUSD) to millions
across the continent. European users can now perform operations
such as buying, selling, and transferring bitcoins directly through
the app, using unlimited and cost-free SEPA deposits. Additionally,
they have features such as recurring purchases and P2P transfers
via the Lightning Network.
Record growth and expansion of the stablecoin market
Stablecoins are experiencing unprecedented growth, with the
number of holder addresses increasing by 15% this year, reaching a
record of over 93.6 million. Tethered to fiat currencies,
cryptocurrencies, or algorithms, stablecoins, such as Tether
(COIN:USDTUSD) and USD Coin (COIN:USDCUSD), now have a combined
market capitalization of $157 billion. Despite a bearish market,
demand for digital dollar equivalents is growing, driven by high
interest rates and increasing adoption in transactions and value
reserves, especially in economies with high inflation.
Tether freezes wallets used in Venezuelan oil exports
Tether (COIN:USDTUSD) announced that it will block wallets using
USDT to evade sanctions on Venezuelan oil exports. The move follows
Reuters’ report on increased tether usage by PDVSA after the
reimposition of US sanctions. The company has already frozen 41
wallets linked to the US Treasury’s OFAC SDN list in December.
Misunderstanding about BlackRock’s fund tokenization causes
fluctuations in HBAR price
The tokenization of BlackRock’s US Treasury ICS money market
fund on the Hedera blockchain, carried out by Archax and not by
BlackRock, caused confusion in the market. Despite Hedera
supporters on social media erroneously concluding that BlackRock
had chosen Hedera for tokenization, the clarification of this
distinction resulted in a 107% increase followed by a 25% drop in
the value of the HBAR token (COIN:HBARUSD). The correction of
information highlighted the importance of accuracy in corporate
communication.
World Assets announces planned sale of WLD tokens to sustain global
demand
World Assets, part of the Worldcoin Foundation (COIN:WLDUSD),
revealed plans to sell WLD tokens from its treasury over the next
six months. The sale aims to meet the growing demand for verified
World IDs and support the expansion of the Worldcoin network. The
company intends to sell between 0.5 million and 1.5 million WLD
tokens weekly, representing less than 0.4% of the token’s weekly
trading volume. Restrictions will be imposed on the resale of
tokens in the United States. Additionally, Sam Altman and Alex
Blania, proponents of Worldcoin, seek to improve relations with
Malaysian leaders while facing regulatory scrutiny. Recent
discussions with authorities reflect a commitment to user privacy.
After temporary bans in Spain and Portugal, measures were taken,
including the new “Personal Custody” initiative and the deletion of
biometric data. Approximately five million digital identities have
been assigned by the project.
Solana announces crucial update to address network congestion
Solana (COIN:SOLUSD) plans to release a major update, version
1.18, on May 27 for its main beta network, aiming to address
persistent congestion issues. This increase in transaction failures
was recently exacerbated by a high volume of transactions generated
by bots with meme coins. Version 1.18 aims to strengthen Solana’s
infrastructure to improve network stability and performance.
Figment records explosive growth with launch of Ethereum and Solana
ETPs
In the first quarter of 2024, Figment, an institutional staking
infrastructure provider, achieved record growth, quintupling its
results compared to the same period in 2023. The company now
manages over $15 billion in assets, with over 500 institutional
clients. This increase was driven by the successful launch of
Ethereum (COIN:ETHUSD) and Solana (COIN:SOLUSD) staking ETPs in
collaboration with the Apex Group on the SIX Swiss Exchange.
Fireblocks enhances DeFi security with new detection and simulation
tools
Fireblocks, specializing in cryptocurrency custody, has launched
advanced tools to help institutions safely navigate the
decentralized finance (DeFi) sector. The new solutions, dApp
Protection and Transaction Simulation, now available after beta
testing with Galaxy and Flowdesk, enable the evaluation of smart
contracts and the detection of threats across more than 40
blockchains. These tools aim to prevent interactions with malicious
entities and protect against attacks on popular DeFi platforms.
Bitget lists RTF tokens to boost SocialFi innovation in boxing
Bitget has added RTF tokens from the Web3-based Ready to Fight
app to its Innovation Zone. The app offers a blockchain ecosystem
for boxers and boxing fans, with RTF trading and deposits now
available, including Candybomb giveaways worth over $40,000. The
platform aims to revolutionize the boxing industry, offering
everything from professional management to fan engagement, and
RTF’s inclusion on Bitget boosts accessibility to emerging DeFi
ecosystems.
Coinbase launches $15 million TV advertising campaign with pizza
theme
Coinbase Global (NASDAQ:COIN) is launching a $15 million TV
campaign, airing three commercials during NBA playoffs. The ads,
focusing on cryptocurrency potential and drawbacks of traditional
payment methods, use the example of buying pizza to highlight
hidden fees and complexities of conventional systems. The
initiative aims to promote crypto understanding among sports
fans.
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