Crypto entrepreneur and Bitcoin.com founder, Roger Ver, has recently unveiled the publication of a 304-page book titled “Hijacking Bitcoin: The Hidden History of BTC,” offering a fresh viewpoint that diverges from commonly accepted historical accounts. This book provides readers with an alternate perspective, challenging the traditional narratives surrounding Bitcoin’s evolution and history. Exploring Bitcoin’s History […]
Bitcoin News
A Shot at Full Recovery? Amazon’s Billions to Anthropic Ignite Hopes for FTX Creditors
FTX creditors might see a silver lining following the recent partnership between Anthropic and Amazon, as the tech behemoth unveiled plans to pour up to billion into the budding artificial intelligence (AI) startup. Over on the social media haven X, a cadre of FTX creditors, united under the banner of “FTX 2.0 Coalition,” explained how FTX’s vested stake in Anthropic could pave the way to compensating customers and making them whole.
FTX Creditors Eye Payday as Amazon Pumps Billions into AI Startup Anthropic
On the cusp of the artificial intelligence (AI) boom, Anthropic, a rival to Openai, garnered a substantial 0 million in a Series B funding round in April 2022. Spearheaded by FTX chieftain Sam Bankman-Fried, the fundraising endeavor also saw notable contributions from Caroline Ellison, Jim McClave, Nishad Singh, Jaan Tallinn, and the Center for Emerging Risk Research (CERR).
Amid FTX’s financial debacle, its share in Anthropic has been thrust into the limelight, more so following Anthropic’s remarkable funding infusion of up to billion from Amazon and an extra 0 million from Google the preceding February. While a fresh valuation of Anthropic post-Amazon deal remains under wraps, the enterprise boasted a near billion worth in May 2023. Notably, buzz surrounds Anthropic as it reportedly engages in dialogues to amass at least billion in fresh capital.
The startup is eyeing a valuation ranging from billion to billion, buoyed by this new capital influx. As Anthropic’s valuation escalates, a faction of FTX creditors took to the social media realm X to share their insights. “Anthropic to raise from Google at -30B valuation, putting FTX’s stake at -4.5B. FTX customers now stand to be made whole,” the FTX 2.0 Coalition wrote on the social media platform.
The FTX estate too, likely acknowledges its Anthropic share is worth a pretty penny, and at the end of June, the debtors stalled the sale of FTX’s Anthropic share. The saga of FTX’s bankruptcy unfolds with myriad facets yet to be resolved before marching ahead with its strategies. Beyond the Anthropic stake, FTX debtors have reclaimed billions in crypto assets alongside tens of millions in real estate assets.
Currently, debt recovery titans keen on capitalizing post-acquiring FTX claims have reportedly snagged 0 million in claims thus far. Data from claims-market.com reveals the current peak payout for an FTX claim bearing some preference risk is trading at .37 on the dollar, while no preference risk FTX claims are fetching .41 on the dollar.
What do you think about the creditors who have higher hopes after Anthropic raised billions from Amazon? Share your thoughts and opinions about this subject in the comments section below.
A Crash Like Amazon’s? This Scenario Could Push Bitcoin Back To $10,000
Bitcoin (BTC), the leading cryptocurrency in the market, has experienced a significant decline since mid-August, resulting in a stagnant price within a newly formed range. This decline has occurred amidst what many believe is an extended bear market in cryptocurrency, causing concerns about the future of Bitcoin’s bull cycles.
Bloomberg Intelligence’s Senior Macro Strategist, Mike McGlone, has drawn attention to the current similarities between BTC’s trajectory and the infamous crash of Amazon in the 2000s during the “Dot Com Bubble.”
McGlone’s analysis emphasizes the importance of learning from history and highlights the potential risks if retail investors flood the market, causing Bitcoin to become overbought.
Bitcoin Resemblance To Amazon’s Crash
Bitcoin’s remarkable growth potential is exemplified by its journey from trading at in 2011 to its current value, representing a surge of 26,000 times. In comparison, Amazon, a prominent tech giant, achieved a 130-fold increase over a similar period, but it took approximately 25 years.
To further illustrate the parallels between Amazon and Bitcoin, during the dot-com boom in the 90s and early 2000s, Amazon capitalized on customer growth and adept capital fundraising to expand its product offerings.
Starting as an online bookstore, it rapidly evolved into a vast online retailer, connecting customers with a diverse range of products.
Amazon’s valuation soared during this period, reaching over 50 times its Initial Public Offering (IPO) value in December 1999. However, the exuberance in the market was short-lived.
The “Dot-Com Bubble” bursting led to a sharp decline in the Nasdaq Composite, heavily influenced by technology companies, from its peak in March 2000.
As the “Dot-Com” crash unfolded, numerous companies struggled to sustain their business models or secure sufficient funding, resulting in their closure. Even prominent start-ups like Pets.com and Kozmo, in which Amazon had invested, succumbed to the downturn.
As a result, Amazon’s stock experienced a significant decline, losing more than 90 percent of its value over two years.
The lessons learned from Amazon’s rise and subsequent crash serve as a cautionary tale for Bitcoin. McGlone warns that the entry of retail investors into the market increases the risk of overbuying and market saturation.
When an asset becomes excessively hyped, prices can detach from their underlying value, setting the stage for a potential correction. Retail investors, driven by Fear of Missing Out (FOMO), may overlook fundamentals and blindly chase price momentum, further exacerbating the risk of a downturn.
Furthermore, the expert noted that Bitcoin’s increasing correlation with equity prices raises concerns. The current high correlation between Bitcoin and equities indicates a growing interdependence between the cryptocurrency and traditional markets.
As Bitcoin moves into the mainstream rapidly, it becomes more susceptible to broader market forces. This amplified correlation could magnify the impact on Bitcoin’s price in a market downturn.
Despite Bitcoin’s current value of ,000, McGlone warns of the possibility of a drop to ,000, which could have significant consequences.
It could trigger a shift in market sentiment and result in significant losses for latecomers who entered the market during this year’s peak.
Bitcoin (BTC) is trading at ,000, reflecting a marginal decrease of 0.3% over the past 24 hours and the seven-day time frame.
Featured image from iStock, chart from TradingView.com
Here’s Why Amazon’s 7% Plunge Today Could be a Warning Sign for Bitcoin
The stock market’s striking correlation to Bitcoin throughout the past few months still appears to be holding strong, even despite Bitcoin’s intense rally seen over the past couple of days.
It now appears that this correlation could once again prove to be highly negative for the benchmark cryptocurrency, as some major components of the market that have been boosting its performance are beginning to see major weakness.
If this weakness drags the entire market down in another sustained movement, this could similarly place some pressure on Bitcoin – should it remained coupled with the benchmark indices.
U.S. Stock Market Could Place Serious Pressure on Bitcoin
The stock market has seen some intense downwards pressure today, which seems to be primarily stemming from Amazon’s poor performance.
The company’s stock price is currently trading down over 7%, flashing extreme signs of weakness after the company missed their earnings expectations by a severe margin.
Investors may also be spooked by the company’s CEO Jeff Bezos being called to testify before Congress regarding his company’s use of third-party seller’s data.
This has created a downwards tailwind that led most other major tech stocks to decline in tandem, potentially setting the tone for a brutal quarter ahead.
This may also eventually place some serious pressure on Bitcoin, as the benchmark cryptocurrency has shown a stark correlation to the stock market throughout the past few months.
Although this correlation has degraded throughout the course of the crypto’s ongoing uptrend, one analyst noted yesterday that he is watching the S&P 500 and its futures (ES) for insight into where BTC may trend next, as they are still sharing “the same bidding behavior.”
“Keep eyes on ES, what bitcoin has done is not suddenly independent of the same bidding behavior seen in traditional markets,” he noted yesterday evening.
Correlation Between BTC and S&P 500 Remains Potent
Supporting the notion that the drag big tech stocks place on the traditional markets will be bad for Bitcoin is the fact that data shows there is still a striking correlation between the two seemingly disconnected markets.
Richard Galvin – the CEO of Digital Asset Capital Management – spoke about this trend in a recent tweet, explaining that although he doesn’t anticipate it to continue strong in the mid-term, it is an imperative factor to consider in the short-term.
“Correlation between Bitcoin and the S&P500 remains at unprecedented levels – whilst we believe this is unlikely to persist in the medium-term, it necessitates employing macro thinking to digital asset investing,” he explained.
Image Courtesy of Richard Galvin
Because of this, if Amazon’s massive plunge today does mark the start of a major decline amongst the tech giants that were previously bolstering the market, this could create shockwaves that adversely impact Bitcoin.
Featured image from Unplash.
NewsBTC
Amazons Arrival and 4 Other Enterprise Blockchain Trends From Consensus 2019
At Consensus 2019, conversations about enterprise blockchain were shaped by these five storylines.
CryptScout #BitFeed RSS – Bitcoin and Cryptocurrency News 24/7
Hackers Use Amazons AWS Computing Resources to Mine Bitcoin
&8230nThe post Hackers Use Amazon&8217s AWS Computing Resources to Mine Bitcoin appeared first on CryptoCoinsNews.n
CryptScout #BitFeed RSS – Bitcoin and Cryptocurrency News 24/7
Hackers Use Amazon’s AWS Computing Resources to Mine Bitcoin
[…]
The post Hackers Use Amazon’s AWS Computing Resources to Mine Bitcoin appeared first on CryptoCoinsNews.