Bitcoin slides below $69,000 anticipating US inflation data

Before the American inflation data release by the Bureau of Labor Statistics, Bitcoin (COIN:BTCUSD) dropped below $69,000 this Wednesday. The US CPI for March indicated inflation higher than expected, reaching 3.5% annually, surpassing the forecast of 3.4%. Despite intensified efforts by the Federal Reserve to control inflation, it remained stubborn. The monthly inflation and the core rate, excluding food and energy, also exceeded estimates, with the latter recording 3.8% annually. This scenario of high inflation led to a drop in the Bitcoin price to $68,016.96 at the time of writing. Beyond the US inflation in March exceeding forecasts, the Bitcoin market is under additional pressure as long-term investors begin to liquidate their positions. Analyst Fernando Pereira from Bitget wrote, “we can see day by day that long-term investors, who usually hold their bitcoins for at least 6 months, are exiting the market. This is a sign of profit-taking that precedes more significant drops.”

Spot Bitcoin ETFs surpass $200 billion in trading

Recent reports from Farside indicate significant movements in Bitcoin ETFs on April 9, with total outflows of $18.6 million. The fund from Grayscale (AMEX:GBTC) saw the smallest daily outflow since the beginning of the month, totaling $15.96 billion. Conversely, the ETF from BlackRock (NASDAQ:IBIT) experienced significant inflows of $128.7 million, the largest since April 5, accumulating a total of $14.92 billion in inflows. Less than three months after the SEC’s approval, the spot Bitcoin ETFs, including those from BlackRock and Fidelity, have surpassed $200 billion in trading volume in the US. This milestone was reached after rapid growth, with the volume doubling since the $100 billion mark in March. Grayscale’s GBTC holds 316,202 BTC, outpacing BlackRock’s IBIT with 266,102 BTC by a margin of 50,100 BTC. Fidelity’s FBTC has 150,694 BTC, reflecting the increased interest of institutional investors. In total, the 11 Bitcoin ETFs hold 838,729 BTC, showing the substantial Bitcoin holdings by these funds.

Grayscale CEO optimistic after stabilization of fund outflows

Michael Sonnenshein, the head of Grayscale (AMEX:GBTC), perceives a stabilization in the outflows from the firm’s Bitcoin ETF, especially after resolving issues with collapsing crypto companies like FTX. He notes that the SEC’s approval of spot Bitcoin ETFs affected the pre-existing Grayscale fund, leading to sales in favor of the new products with lower fees. However, the monthly outflows, which reached $600 million in March, have significantly decreased, indicating a potential recovery.

Hong Kong set to approve first spot Bitcoin ETFs

Regulators in Hong Kong are close to green-lighting the first spot Bitcoin ETFs next week, enabling their launch in April, according to Reuters. This decision places Hong Kong alongside Australia in leading Asia in offering spot Bitcoin ETFs, with other regions like Singapore and the United Arab Emirates still in preliminary stages. Companies such as Harvest Global Investments and VSFG are among those who have applied for approval for such funds.

Bitcoin miners liquidate stock before halving

As the halving of Bitcoin mining rewards approaches on April 20, which will cut the block rewards in half from 6.25 to 3.125 BTC, miners are selling their Bitcoin reserves, reaching the lowest level since early 2021 with 1.794 million BTC. This sale anticipates the reduction in rewards. This strategy, highlighted by the recent high of Bitcoin above $73,000, differs from the accumulation observed before the previous halving in 2020. Miners are capitalizing on the high prices to fund upgrades, aiming for long-term sustainability, as indicated by a 45% increase in the hashrate.

Ethereum’s early adviser files a billion-dollar lawsuit against the US government

Steven Nerayoff, one of the early advisers to Ethereum (COIN:ETHUSD), has filed a $9.6 billion lawsuit against the US government, alleging persecution and unfounded charges by federal agents. In 2019, Nerayoff was charged with extortion, but after a four-year legal battle, the charges were dropped in 2023. His lawyers claim that this persecution caused significant damage to his life and career, including financial losses during a peak in the cryptocurrency market.

Circle expands Web3 services on Solana to bolster USDC

Circle (COIN:USDCUSD) is extending its Web3 tools and services to the Solana blockchain, aiming to facilitate access to USDC for developers and businesses, promoting integration across various applications. This move follows the revelation that Solana has emerged as the leading platform for stablecoin transactions, especially in international payments. Circle’s initiative includes APIs for wallet integration and transactions, reinforcing the use of USDC in a growing stablecoin market where Solana is leading in payment volume.

Permissionless Capital launches event for Web3 startups

Permissionless Capital unveils “Permissionless Opportunities,” an innovative event inviting Web3 startups to participate to gain resources and guidance to launch their products. Designed as an interactive game show, the event offers access to funds, tools, and essential connections in the blockchain sector. Renowned partners like Solana and Chainlink support the program, promising broad exposure and collaboration opportunities for winners. Open to startups in various areas, such as DeFi and gaming, the event represents a unique chance for emerging Web3 companies to stand out.

P2P.org introduces staking solution for institutions

P2P.org has introduced its Staking-as-a-Business (SaaB) service, aimed at financial institutions like exchanges and custodians, to incorporate staking and decentralized finance (DeFi) into their offerings. With over 1 million Ether (ETH) staked and a total value locked (TVL) of more than $7.4 billion, the initiative also includes comprehensive support in areas like marketing and legal issues, aiming to facilitate these entities’ entry into the staking and DeFi market.

MetaMask integrates Daylight for airdrop verification

MetaMask, the popular Web3 wallet, now offers users the ability to verify eligibility for airdrops in collaboration with the Daylight project. This feature makes it easier to discover potential airdrops available in the ecosystem of their favorite decentralized applications. Using MetaMask’s Explore page, users can find information about airdrops and NFT claims, with personalized suggestions from the Daylight API based on social and token ownership criteria, spanning networks like Ethereum and Polygon.

WOO X launches perpetual contracts for meme coins and L2 tokens

WOO X, in collaboration with Wintermute and GMCI, has announced the introduction of perpetual contracts for indices covering meme coins, the top 30 cryptocurrencies, and Layer 2 (L2) tokens. Following a recent $9 million funding round, the platform expands its offerings, including GMCI’s MEME index with popular meme coins like Shiba Inu (COIN:SHIBUSD) and Dogecoin (COIN:DOGEUSD), and an L2 index focused on scalability tokens. WOO X plans to add features like copy-trading and on-chain US Treasury bonds in the future.

Indictment for money laundering at Taiwanese cryptocurrency exchange

Prosecutors in Taiwan have indicted David Pan, the founder of ACE Exchange, and six others for money laundering and fraud involving more than $10.7 million. They allegedly used an offshore entity and the “Alfred Wallet” service to attract and deceive investors, resulting in at least 162 victims. ACE Exchange, stating that Pan is no longer active in the company, assures operational normality and the security of user assets.

OpenTrade raises $3.2 million to expand institutional lending and yield products

OpenTrade, a platform dedicated to institutional lending and yield products, has raised $3.2 million in its seed funding round, bringing its total funding to $4.45 million. The round saw participation from notable investors such as the a16z Crypto Startup Accelerator, among others. The company, leveraging Circle’s payment and DeFi infrastructure, plans to bolster its team with the new capital. OpenTrade offers networked lending products for asset managers, enabling yield generation through USDC and EURC.

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