Crypto market faces biggest drop of the year
The cryptocurrency market recorded its largest annual drop of
7%, led by an 8% decline in Bitcoin (COIN:BTCUSD), which triggered
a widespread downturn. Bitcoin fell from a peak of $73,000 to a
minimum price of $65,879.74, being quoted down -4.9% at the time of
writing at $67,918.65. Volatility particularly hit meme coins, with
Dogecoin (COIN:DOGEUSD) and Shiba Inu (COIN:SHIBUSD) losing over 9%
in the last 24 hours. The drop was attributed to the unexpected
increase in the Producer Price Index in the US, sparking concerns
that a rate cut may not occur in May, leading to a massive sell-off
of leveraged positions in the market. “The low made by Bitcoin
on March 14 becomes the most important support to watch over the
weekend. If the price loses this support, it is quite likely to
initiate a new downward wave that could go from $65,000 to
$63,000,” warned analyst Fernando Pereira from Bitget.
Fox and Polygon initiate Verify protocol for content authentication
Fox Corp. (NASDAQ:FOX) joined forces with Polygon Labs
(COIN:MATICUSD) two months ago to develop Verify, a protocol aimed
at authenticating content and protecting intellectual property. The
initiative, supported by regulators and publishers, aims to provide
a reliable way to verify content authenticity in the era of
misinformation. The blockchain-backed technology is seen as an
essential tool for creators and consumers to navigate the growing
universe of AI-generated content.
Slowdown in Bitcoin ETF inflows despite strong interest
On March 14, Bitcoin ETFs recorded inflows of $132 million,
according to Bitmex Research, indicating a cooling compared to
previous days. BlackRock’s ETF (NASDAQ:IBIT) led with $345.4
million in new investments, while Grayscale’s Bitcoin Trust
(AMEX:GBTC) saw outflows of $257.1 million. The net inflow in
Bitcoin terms was 1,874 BTC, with BlackRock adding 4,886 BTC.
Despite the GBTC outflows, other funds still managed to attract
$389 million, showing continued interest but with a more cautious
investment dynamics.
Stifel recommends Galaxy Digital as a strategic investment in
digital assets
Stifel Financial (NYSE:SF) highlighted Galaxy Digital (TSX:GLXY)
as an essential investment for those looking to engage in the
crypto asset market in a recent research report. Resuming coverage
of the cryptographic financial services firm led by Michael
Novogratz, Stifel rated it as a Buy with a price target of C$20,
despite a recent drop to C$13.11. According to Stifel, Galaxy
Digital stands out for its high return potential, diversity of
operations in trading, investment banking, and asset management,
and its investment in fundamental technologies for decentralized
networks, promising significant long-term growth.
El Salvador increases Bitcoin reserves
El Salvador, led by President Nayib Bukele, recently transferred
$400 million in Bitcoin (COIN:BTCUSD) to a cold wallet, as
announced on X. Bukele called the initiative the country’s “first
#Bitcoin piggy bank,” highlighting the secure storage of digital
treasury on national territory, evidenced by a photo showing
5,689.68 BTC. This move reveals that El Salvador holds more Bitcoin
than estimated, challenging previous figures of less than 3,000
BTC. In addition to direct purchases, the country has also
accumulated Bitcoin through passport sales, currency conversions
for businesses, mining, and government service fees.
Avalanche Foundation acquires meme coins to strengthen Web3 culture
Avalanche Foundation (COIN:AVAXUSD) integrated five meme coins
from its blockchain into its portfolio, as part of an effort to
support Web3 creators and foster innovation. This action, revealed
in a blog post, aims to value creative diversity and engagement in
cryptographic communities. The coins, Coq Inu, Gecko, Kimbo,
NoChill, and Tech, were selected based on their alignment with
Avalanche’s values and ecosystem.
SFC warns that MEXC exchange operates without license in Hong Kong
The Securities and Futures Commission of Hong Kong (SFC) issued
a warning on Friday, emphasizing that the cryptocurrency exchange
MEXC is operating without proper authorization in the territory.
The regulatory body expressed its willingness to take action
against illegal operations. This incident marks another chapter in
MEXC’s repeated infractions with global regulators, including
previous reprimands in Japan and Germany. The case arises at a time
when Hong Kong is enhancing its regulatory framework for crypto
assets, evidenced by the recent attention also to Bybit, and the
implementation of mandatory licensing initiated in June last
year.
Senators urge SEC to curb cryptocurrency ETPs
Two Democratic senators are pressuring the SEC to halt the
approval of new exchange-traded crypto products (ETPs) due to
concerns about investor protection. They point to a FINRA survey
that found significant violations in brokers’ communications about
cryptocurrencies, with 70% of them disregarding transparency
standards. The senators warn of the confusion generated by the
similarity between bitcoin ETPs and traditional funds, highlighting
the lack of regulatory protections and the elevated risks of fraud
and market manipulation in cryptocurrencies. In response, Coinbase
Global’s Paul Grewal defends the potential and liquidity of the
crypto sector, especially Ether (COIN:ETHUSD), comparing its
trading volume to that of S&P 500 stocks (SPI:SP500).
Crypto voters lean towards Trump in 2024
A Public Opinion Strategies survey, commissioned by Paradigm,
reveals that cryptocurrency holders in the US tend to support
Donald Trump for the 2024 presidential elections. About 48% of
crypto enthusiasts favor Trump, compared to 39% supporting Joe
Biden, with 13% still undecided. This support for Trump is slightly
higher among crypto holders than in the general population, where
45% prefer Trump and 42% Biden. The survey indicates a shift in
attitude since 2020, when more crypto holders leaned towards
Biden.
Binance Labs becomes independent entity under new leadership
Earlier this year, under the management of new CEO Richard Teng,
Binance restructured its venture capital segment, Binance Labs,
making it an autonomous entity. According to Bloomberg, this
strategic change highlights Teng’s initiative to promote regulatory
compliance within the company. Binance Labs, now operating
independently of the Binance Group, retains only the right to use
the brand, without other connections. The restructuring follows
Teng’s appointment, after co-founder Changpeng Zhao admitted
regulatory violations in the US.
Arbitrum launches $400 million initiative for blockchain games
The Arbitrum Foundation (COIN:ARBUSD) plans to invest $400
million over the next two years to attract game developers to its
blockchain. Its “Game Catalyst Program” aims to allocate 200
million ARB to foster game creation on the Arbitrum platform,
strengthening its position in the Web3 gaming sector. Most of the
resources will be allocated to game publishers, with additional
funds supporting the development of necessary infrastructure for
games on the network.
Blockpass and Animoca Brands join forces for Web3 security
Blockpass and Animoca Brands, prominent in the world of Web3 and
digital rights, announced a partnership focused on strengthening
security and compliance in the Web3 universe. The collaboration
aims to integrate Blockpass’s identity verification technology with
Animoca’s expertise in gaming and investments, aiming to combat the
increasing threat of deepfakes and identity fraud. This joint
effort seeks to provide safer navigation in Web3 and the metaverse,
simplifying user integration and strengthening adherence to KYC and
AML regulations.
Technology giant sells subsidiary for $12.25 billion
John B. Billingsley, leader of JBB Advanced Technologies and a
Texas Tech alum, concluded the sale of Tronic, his digital
marketing subsidiary, to Christina Marshall of Tronic Ventures for
$12.25 billion. Tronic is known for its advanced technology that
facilitates Web3 gamification, creating interactive online
environments with features like secure registrations and real-time
analytics, utilizing AI and blockchain.
Berachain nears unicorn valuation after raising $69 million
Berachain, an emerging DeFi project inspired by bears and led by
anonymous co-founders, is poised to reach a unicorn valuation,
raising over $69 million in a funding round led by Brevan Howard
Digital and Framework Ventures. The company’s estimated value is
$1.5 billion after this round, thanks to token sales. Berachain
focuses on trading, lending, and DeFi services on its tri-token
platform, preparing to launch its mainnet in the second
quarter.
D2X raises $10 million and receives license for crypto derivatives
in the Netherlands
After obtaining an innovative license from the Dutch Authority
for the Financial Markets (AFM) for a cryptocurrency derivatives
trading platform, D2X raised $10 million in a Series A round led by
Point72 Ventures. The round also saw participation from entities
like GSR Markets and Picus Capital. Based in Amsterdam, D2X plans
to launch in the second quarter of 2024, aiming to be the first
regulated crypto derivatives platform in the EU available seven
days a week for institutional investors.
Zerion develops ZERO Network for free crypto transactions
Crypto wallet Zerion is creating the ZERO Network, its own
Ethereum-based Layer 2 solution, scheduled to debut between the end
of the second quarter and the beginning of the third quarter of
this year, promising free transactions for its users. Co-founder
Evgeny Yurtaev highlights that the network aims to eliminate fees
to improve user experience, considering that the cost of free
transactions will decrease with technological advancements, such as
recent blobs that reduced costs in Layer 2 networks. The ZERO
Network also aims to expand Zerion’s wallet reach and generate new
revenue by attracting users with the offer of feeless transactions
and potentially charging for additional services.
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