While wrapped digital assets have enabled the bridging of assets and expanded their utility, their perceived need for custodianship reintroduces centralization risks and trust dependencies. This contradicts the decentralized ethos of blockchain technology, according to Chris Li, founder and CTO of Ava Protocol. Attaining Utility While Preserving the Core Principles of Decentralization Li told Bitcoin.com […]
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Bernstein Analysts Revise Bitcoin Target, $200,000 And $1 Million Become Main Focus
Bernstein analysts Gautam Chhugani and Mahika Sapra recently revised their price targets for Bitcoin in their latest market report, which also initiated coverage on MicroStrategy. These analysts also outlined factors that they believe could contribute to BTC’s exponential price surge.
Bitcoin To Hit 0,000 And Then Million
Chhugani and Sapra predicted in the report that BTC will rise to a cycle high of 0,000 by 2025 and that the flagship crypto will reach million by 2033. Bernstein had previously predicted that Bitcoin would reach 0,000 by 2025. However, these analysts have now revised their targets and alluded to the institutional demand for BTC as one of the reasons they believe the flagship crypto can reach such heights.
The research firm predicts that the Spot Bitcoin ETFs will continue to record impressive demand and that the Bitcoin under management could reach 0 billion by 2025, a significant increase from the billion in BTC that funds issuers already have under management.
In other words, these analysts expect BTC’s price to succumb to the supply and demand dynamics, considering that the Bitcoin in circulation is bound to drastically reduce as these Spot Bitcoin ETFs continue to accumulate a significant amount of the crypto token for their respective ETFs. Moreover, two Bitcoin halvings are set to occur before 2033, further reducing miners’ supply and thereby supporting their base case of BTC hitting million.
MicroStrategy To Benefit From BTC’s Growth
These Berstein analysts also initiated coverage on MicroStrategy with an outperform rating. They predict that the software company’s stock can rise to ,890 thanks to its BTC exposure. A rise to ,890 represents about a 95% increase for MicroStrategy’s stock, which is currently valued at around ,500.
The research firm noted that MicroStrategy has committed itself to “building the world’s largest Bitcoin company.” This has already paid off so far, with Chhugani and Sapra stating that the software company has transformed from a “small software company to the largest BTC holding company” since August 2020 (when it started accumulating BTC).
MicroStrategy already owns 1.1% of Bitcoin’s total supply, with holdings worth around .5 billion. The company’s BTC holdings are expected to increase soon enough, as they recently announced plans to offer 0 million of Convertible Senior Notes. Some of the proceeds from the proposed sale will be used to buy additional BTC.
Berstein highlighted how the company’s co-founder Michael Saylor has become synonymous with the Bitcoin brand and that the company’s position as the leading Bitcoin company has helped attract “at scale capital (both debt and equity) for an active Bitcoin acquisition strategy.” In dollar terms, Bernstein noted that MicroStrategy’s Bitcoin net asset value (NAV) per share “has grown nearly fourfold, surpassing the 2.4x growth in Bitcoin’s spot price.”
“We believe MSTR’s long term convertible debt strategy allows it enough time to gain from Bitcoin upside, with limited liquidation risk to its Bitcoin on balance sheet.” Chhugani and Sapra added.
Experts Say Dollar Dominance Debate Misses the Point, US Needs Economic Focus
Two experts have explained that the global debate on the future of dollar dominance misses the point because it doesn’t focus on how the dollar’s future will evolve. They warned: “If the U.S. doesn’t keep its house in better order, dollar dominance will be the least of our worries.” Experts Discuss US Dollar’s Dominance Steven […]
Bitcoin News
Binance NFT to Halt Bitcoin NFT Activities, Focus Shifts Away From BTC-Based Collectibles
In a recent announcement by Binance on April 4, 2024, the firm disclosed its decision to halt support for Bitcoin-based Ordinal non-fungible token (NFT) collectibles within its NFT marketplace. The directive from Binance calls for users of its NFT marketplace to withdraw their Ordinal inscriptions by May 18, 2024. Binance NFT Marketplace to End Ordinal […]
Bitcoin News
Why This Crypto Report Suggests Solana As A Main Focus For The Next Bull Market
A recent ‘Navigating Narratives’ report by K33 Research provided insights on how to trade altcoins. Interestingly, as part of their analysis, they highlighted Solana (not ETH) as the main focus and elaborated on why this was so.
Why Solana Is The Main Focus
The report, written by DeFi Analyst David Zimmerman, stated that they were focusing primarily on buying SOL if there was an opportunity to buy lower. They claim the reason for this is that “SOL has solidified its place in the market as one of the market leaders.” They also expect that SOL’s outperformance of ETH will continue in this market cycle.
Meanwhile, Zimmerman highlighted how SOL’s on-chain activity has continued to flourish and noted that the narrative of SOL being ETH’s main competitor was still intact. The Solana network has long been dubbed the “Ethereum Killer,” with the belief that the former will dethrone the latter at some point.
Indeed, Solana has gone toe-to-toe with Ethereum in recent times, momentarily surpassing it in significant metrics. Back in December, Solana ranked above Ethereum in seven-day DEX volume for the first time in history and outperformed it in NFT trading volume during that same period. More recently, Solana’s Jupiter outranked Ethereum’s Uniswap in daily trading volume.
SOL also outperformed ETH last year, with the former seeing a gain of about 1000%. Crypto analyst Santiago Santos also recently gave his opinion on Solana and Ethereum’s fight for dominance. Comparing Ethereum’s run during the ICO boom to Solana’s current run, he noted that Solana had an edge since it has “applications seeing meaningful usage and growth.”
This happens to be one of the reasons he believes that Solana will “converge on Ethereum faster than most believe.”
What Price Levels Present Buying Opportunities For SOL
Having explained why SOL was the main focus among altcoins, the Navigating Narratives report highlighted price levels they were eyeing in case in case the market gives deeper pullbacks for SOL. These levels include the , and price range.
However, they noted that they weren’t expecting the buy order to be filled since it would require a crash like the one that happened in March 2020. This was the period when Bitcoin lost almost half of its value in a two-day plunge. Other crypto tokens also experienced similar pain then.
Meanwhile, if SOL continues to rally, K33 Research highlighted the 5 and 0 price ranges as ideal areas for selling and taking profits.
At the time of writing, SOL is trading at around , up in the last 24 hours according to data from CoinMarketCap.
Featured image from Adobe Stock, chart from TradingView
QCP Capital Forecasts ETH’s Dominance Over Bitcoin To Persist, Ethereum ETFs In Focus
Over the past 30 days, Ethereum (ETH), the second-largest cryptocurrency, has experienced a notable surge of 17%, outperforming Bitcoin (BTC), which has recorded a surge of 2.5% over the same period.
This comes as the initial excitement surrounding the approval of the exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) appears to have waned, with BTC witnessing a 5% drop in the past seven days.
Interestingly, according to crypto trading firm QCP Capital, following the approval of Bitcoin ETFs, the focus has shifted to the potential launch of an ETH spot ETF, which could be one of the factors for Ethereum outperforming BTC.
Ethereum Gains Ground Against BTC
According to QCP Capital, the total volumes transacted across all 11 ETFs in the past week have reached .8 billion. The Grayscale Bitcoin Trust (GBTC) alone accounted for .6 billion.
Since converting from a Trust to an ETF, GBTC has experienced outflows of .17 billion. This is “unsurprising” for the firm, considering GBTC had been trading at a discount since 2020, offering investors an opportunity to exit at par value.
BTC initially surged to a high of ,100 upon ETF approval but has since seen a decline, consolidating above the ,000 support level. Volumes have slowed since the initial launch, and market attention is focused on GBTC outflows.
Meanwhile, ETHBTC, which traded below 0.05, has seen an upward trend to 0.06. According to QCP Capital, Ethereum is anticipated to continue to outperform Bitcoin in the medium term as the narrative shifts towards potential ETH Spot ETF approvals.
Bitcoin Forward Contract Yields Decrease
Following the launch of the BTC spot ETF, BTC forward contracts have experienced a greater decline compared to ETH forward contracts. BTC 1-month forward fell from 32% annualized to 9% (-23%), while ETH 1-month forward decreased from 28% to 12% (-16%).
According to QCP Capital, despite declining yields, ETH forwards still appear attractive, offering 11-13% annualized returns. Additionally, selling ETH 1-month 2200 Puts presents a viable option with yields above 21% annually, and it could be a suitable level to buy in the event of a dip upon potential ETH spot ETF approvals.
Ultimately, the crypto firm suggests that the forthcoming BTC halving in mid-April and the potential approval of ETH Spot ETFs from May are anticipated to be significant events for the crypto market.
In the interim, market movements may also be influenced by macroeconomic events. The January Federal Open Market Committee (FOMC) meeting, as well as the February Non-Farm Payrolls (NFP) and Consumer Price Index (CPI) reports, are being closely monitored for insights.
The pace of the balance sheet runoff, discussed briefly in December 2023, is expected to provide further clarity during the January FOMC meeting. The market consensus suggests a slowdown in quantitative tightening (QT), but the timing and extent of these changes remain uncertain.
Overall, the potential launch of an Ethereum spot ETF has sparked speculation and could have a transformative impact on the Ethereum ecosystem. As the market grapples with changing dynamics, attention remains on key events, such as the BTC halving and potential ETH Spot ETF approvals.
Featured image from Shutterstock, chart from TradingView.com
US Lawmaker Urges Congress to Focus on Attracting Crypto Opportunities to Bolster National Security
A U.S. lawmaker has called on Congress to focus its efforts on bringing more crypto activity and opportunities to the United States in order to “bolster U.S. national security.” Citing the Department of Justice’s action against crypto exchange Binance, the lawmaker stressed that Congress does not need to rewrite laws that work in the crypto space.
Rep. Emmer Calls for Focus on Domestic Crypto Growth
House Majority Whip Tom Emmer (R-MN) shared his perspective on Congress’ role in shaping cryptocurrency laws following the Department of Justice’s settlement with Binance, the world’s largest cryptocurrency exchange, and its CEO Changpeng Zhao (CZ).
“Congress does not need to rewrite laws that work in the crypto space. Yesterday’s successful prosecution shows that when enforced, current laws are suitable to help weed out bad actors,” the lawmaker explained on social media platform X on Wednesday. He emphasized:
Congressional resources should instead be spent working to bring more crypto activity and opportunities onshore to bolster U.S. national security.
Rep. Emmer has been pushing for Congress to pass laws that benefit the crypto sector. Earlier this month, the House of Representatives adopted an amendment he attached to the Financial Services and General Government Appropriations Act of 2024 that limits the authority of the U.S. Securities and Exchange Commission (SEC) to carry out enforcement actions against the crypto industry.
In September, the House Financial Services Committee passed his CBDC Anti-Surveillance State Act, which halts the efforts of the Biden administration “from issuing a financial surveillance tool that will undermine the American way of life.”
Emmer and several other lawmakers have pushed to oust SEC Chairman Gary Gensler. In June, Emmer joined Rep. Warren Davidson in supporting the SEC Stabilization Act that seeks to fire Gensler as the chair of the securities regulator.
What do you think about Rep. Tom Emmer urging Congress to focus its efforts on bringing more crypto activity and opportunities to the U.S. in order to bolster national security? Let us know in the comments section below.
Bankman-Fried Takes the Stand With a Great Focus on Relying on Counsel and Legal Advice
The former FTX CEO Sam Bankman-Fried testified Thursday without jurors present. Bankman-Fried was questioned by his attorney, Mark Cohen, before the judge. He described FTX senior staff using encrypted messaging, discussed obtaining Alameda’s bank account, and talked about business operations with former general counsel members. Much of the focus was on FTX’s former lawyers and the firm’s terms of service.
FTX’s Former CEO Highlights Reliance on Lawyers During Court Appearance
Sam Bankman-Fried (SBF) took the stand on October 26, 2023, and was questioned by his lawyer, Mark Cohen. Matthew Russell Lee of Inner City Press broadcast the courtroom account on social media platform X. Bankman-Fried’s account of the situation follows his recent interactions with fellow coworkers Caroline Ellison, Nishad Singh, and Gary Wang.
SBF discussed using encrypted messaging apps, third-party hacks, leaning on lawyers for legal guidance, and interacting with regulators in the Bahamas. SBF confirmed FTX used Telegram, Slack, and the auto-deleting app Signal for communications. He said encryption was important because FTX third parties had been hacked, though never the core systems. He justified using Signal by saying it was mostly used for informal chatter, not for major decisions.
“Those were not channels for decisions,” the former FTX boss insisted.
Regarding former FTX lawyers, SBF said he signed papers to set up FTX’s bank account per an attorney’s alleged instructions and took comfort structuring loans based on guidance from his lawyers and law firm Fenwick & West. He also claimed the FTX terms of service and other key documents were prepared by Dan Friedberg and Fenwick & West.
On regulators, SBF described an intense visit from Bahamian police who took his passport. This occurred after a meeting with Bahamas regulators which SBF attended with his father and FTX executives. “Gary Wang was in the building but not in the meeting,” SBF disclosed. Reportedly, there were plans to move key assets following the exchange’s hack.
SBF also discussed his start in crypto in 2017, and the use of omnibus wallets based on tracking exchanges. SBF continued to lean on citing his lawyers and their advice as a defense in his testimony. When asked by Cohen if he believed that “taking FTX deposits through Alameda was legal,” the FTX co-founder replied, “I did.”
There was a heavy focus from both the former FTX boss and Cohen with the repeated mentioning that he relied on counsel and legal advice. Following Cohen’s questions the court took a break and U.S. prosecutors plan to convene later and further cross-examine SBF on Friday.
What do you think about the first part of Bankman-Fried’s testimony? Share your thoughts and opinions about this subject in the comments section below.
Binance Ending Operations in Russia — Crypto Exchange to Focus on 100+ Other Countries
Crypto exchange Binance is closing down all exchange services and business lines in Russia. The company has entered into a sales agreement with Commex. A Binance executive explained that operating in Russia is not compatible with the company’s compliance strategy. “We remain confident in the long-term growth of the Web3 industry around the world and will focus our energy on the 100+ other countries in which we operate,” he emphasized.
Binance Fully Exiting Russia
Cryptocurrency exchange Binance announced Wednesday that it will fully exit Russia. According to the announcement: “ has entered into an agreement to sell the entirety of its Russia business to Commex.” According to its website, Commex is “a centralized cryptocurrency exchange backed by top-tier crypto VC.”
Binance added that to “ensure a smooth process for existing Russian users, the off-boarding process will take up to one year.” Noting that the financial details of the deal will not be disclosed, the crypto exchange stressed:
It is important to note that with this sale, Binance fully exits Russia.
“Unlike similar deals from international companies in Russia, Binance will have no ongoing revenue split from the sale, nor does it maintain any option to buy back shares in the business,” the cryptocurrency exchange clarified.
On Thursday, Binance CEO Changpeng Zhao (CZ) provided some clarifications regarding the sale of Binance’s Russian operations to Commex. He wrote on X: “Commex does not service U.S. or EU users. They have IP and KYC blocks. This is a term we asked for in the deal … Their design, APIs, etc are similar to Binance. We asked for this to ensure a smooth user experience.” CZ further said: “I am not their UBO [ultimate beneficial owner], nor do I own any shares there. The deal does not have any buyback options.”
Noah Perlman, Binance’s chief compliance officer, described:
As we look toward the future, we recognize that operating in Russia is not compatible with Binance’s compliance strategy.
“We remain confident in the long-term growth of the Web3 industry around the world and will focus our energy on the 100+ other countries in which we operate,” Perlman opined. According to Binance’s website, the crypto exchange is available in over 100 countries globally. However, only 45 countries are specifically mentioned.
Binance explained that “A portion of Russian KYC’d new user registration will immediately be redirected to Commex and will scale up over time.” The exchange continued:
Over the next several months, Binance will sunset all exchange services and business lines in Russia.
What do you think about Binance closing down all of its crypto exchange services in Russia? Let us know in the comments section below.
India’s Prime Minister Calls for Global Crypto Framework With Focus on Unified Approach, Adoption, Democratization
India’s Prime Minister Narendra Modi says crypto needs “a global framework and regulations.” He stressed: “The rapid pace of change of technology is a reality — there is no point in ignoring it or wishing it away. Instead, the focus should be on adoption, democratization, and a unified approach.”
Modi on Crypto Regulation
Indian Prime Minister Narendra Modi talked about cryptocurrency regulation in an interview with Business Today, published on Saturday. Modi, who recently returned to India from South Africa, where he attended the BRICS summit, said:
The rapid pace of change of technology is a reality — there is no point in ignoring it or wishing it away. Instead, the focus should be on adoption, democratization, and a unified approach.
“At the same time, the rules, regulations, and framework around it should not belong to one country or a group of countries. So not only crypto, but all emerging technologies need a global framework and regulations,” the Indian prime minister stressed.
“A global consensus-based model is needed, especially one which considers the concerns of the Global South. We can learn from the field of aviation. Be it air traffic control or air security, there are common global rules and regulations governing the sector,” he described.
India currently holds the G20 presidency. “In the past nine months, vast efforts and energy have been channeled into debt and crypto agendas,” Modi said, elaborating:
India’s G20 presidency expanded the crypto conversation beyond financial stability to consider its broader macroeconomic implications, especially for emerging markets and developing economies.
“The G20 reached a consensus on these matters, guiding standard-setting bodies accordingly. Our presidency also hosted enriching seminars and discussions, deepening insights into crypto assets,” the Indian leader concluded.
Earlier this month, India released its “Presidency Note as an input for a Roadmap on Establishing a Global Framework for Crypto Assets.” In July, the Financial Stability Board (FSB) published its proposed guidelines for a global regulatory framework for crypto assets. In April, the G20 finance ministers and central bank governors agreed that crypto regulation cannot be confined to one part of the world, noting that global policy responses are required.
Do you agree with Indian Prime Minister Narendra Modi about cryptocurrency regulations? Let us know in the comments section below.