Amidst the backdrop of this year’s skyrocketing BTC transaction fees and a congested network, the latest Binance Research report, “The Future of Bitcoin #3 – Scaling Bitcoin,” unveils several approaches to addressing Bitcoin scalability. As average onchain fees have climbed in 2024, Binance researchers say stakeholders across the ecosystem are poised to redefine Bitcoin’s infrastructure […]
Bitcoin News
New Research Paper Sheds Light on Alleged Conflicts of Interest in FTX’s Chapter 11 Filing
A recent research paper on SSRN by legal scholars scrutinizes the ethical quandaries and potential conflicts of interest surrounding Sullivan & Cromwell LLP’s involvement in FTX’s Chapter 11 bankruptcy filing. Study Highlights Legal Ethics From FTX Bankruptcy Proceedings The SSRN research paper entitled “Conflicting Public and Private Interests in Chapter 11” meticulously explores the controversial […]
Bitcoin News
Bringing Two Worlds Together: Kinetex Announces ZK Light Client For Bitcoin
PRESS RELEASE. Kinetex is excited to introduce BTCX, a Bitcoin ZK light client built with Succinct Labs. Developed using Succinct’s plonky2x framework and deployed seamlessly through its unified proving stack, BTCX enables EVM-compatible networks to verify the Bitcoin state directly without any centralized actors in between. The creation of this solution is the first step […]
Bitcoin News
Bringing Two Worlds Together: Kinetex Announces ZK Light Client For Bitcoin
PRESS RELEASE. Kinetex is excited to introduce BTCX, a Bitcoin ZK light client built with Succinct Labs. Developed using Succinct’s plonky2x framework and deployed seamlessly through its unified proving stack, BTCX enables EVM-compatible networks to verify the Bitcoin state directly without any centralized actors in between. The creation of this solution is the first step […]
Bitcoin News
XRP And XLM In Lockstep? Expert Sheds Light On Their Surprising Price Synchronization
Recently, a notable observation has been the significant correlation between XRP and XLM’s price action. This phenomenon has caught the attention of industry experts and investors alike, leading to a deeper examination of the factors driving this trend.
Ripple’s Chief Technology Officer (CTO), David Schwartz, has weighed in on this topic, addressing the liquidity aspects of XRP and XLM. However, despite the visible correlation, Schwartz argues that more liquidity is needed in the XRP/XLM market to cause a notable price correlation.
This statement is based on data from CoinmarketCap, which illustrates the parallel price movements of these two cryptocurrencies over the past year. Schwartz’s insights provoke a deeper analysis of the potential reasons behind the alignment in their price behaviors.
Coinmarketcap makes it easy to compare the charts of various tokens. Here’s XRP versus XLM over the past year: pic.twitter.com/qNzfIu2TTB
— David “JoelKatz” Schwartz (@JoelKatz) December 18, 2023
Unraveling The Factors Behind XRP And XLM’s Correlated Price Movements
David Schwartz has identified three key factors influencing the XRP-XLM price correlation. Firstly, he posits that the entire digital asset market is significantly interconnected.
The market is still determining cryptocurrencies’ long-term viability, so industry news tends to affect all tokens, not just specific ones. This broader market sentiment could drive the correlation observed in XRP and XLM.
Secondly, Schwartz suggests that the dominance of Bitcoin in the cryptocurrency market could play a role. Given Bitcoin’s substantial market share and its influence on liquidity within the crypto space, movements in Bitcoin’s price often result in ripple effects across other crypto, including XRP and XLM.
I think there are a variety of factors that might be at play and it’s hard to know which are real.
One thing is that all digital assets track each other significantly. I think that’s because the market is still trying to figure out if they’re going to be a thing and so industry…
— David “JoelKatz” Schwartz (@JoelKatz) December 18, 2023
The third factor revolves around the crypto community’s perception that XRP and XLM require similar market conditions to thrive. However, Schwartz noted that he is “not sure if he believes this.”
Developments within the broader crypto industry could prompt parallel reactions from users of both tokens, leading to correlated price patterns.
Diverse Perspectives: From Short-Term Volatility To Long-Term Convictions
On the other hand, Bill Morgan, a lawyer and digital asset enthusiast, brings a different viewpoint, mainly focusing on XRPL token. Addressing recent market volatility, Morgan emphasizes the importance of a long-term perspective when analyzing XRP’s price action.
Responding to crypto community concerns about XRP’s performance, especially during heightened market movements, Morgan argues that convictions about the token should go “beyond short-term price fluctuations.”
Morgan’s stance is echoed by Matt, the Moon Lambo YouTube channel host, who points out that XRP’s price drop was not as severe as some in the crypto community perceived. Matt’s analysis places XRP at a moderate position among the top 50 coins by market cap in terms of gains and losses.
This is correct but placed in the context of XRP’s price action over the last month it is not great. XRP is down over 2% over the last month. Many but not all top 50 coins are up over the last month. In that context the fall was harder comparatively than could have been expected… https://t.co/VrlD2k0mWu
— bill morgan (@Belisarius2020) December 19, 2023
However, Morgan notes that the token’s performance over the past month has been lackluster, falling by over 2% despite a market-wide rally. This observation suggests that XRP’s decline was more pronounced than that of some of its peers, warranting a closer examination of its market dynamics.
Featured image from Unsplash, Chart from TradingView
US Senator Calls for Light Crypto Regulation That Doesn’t Kill Innovation and Drive Companies Offshore
A U.S. senator says Congress needs to regulate the crypto industry “with a light touch that doesn’t kill innovation in the U.S.” Noting that crypto “has the potential to disrupt much of the traditional banking model,” he stressed that crypto regulation needs to be appropriate to avoid driving companies offshore.
‘We Need to Regulate With a Light Touch’
Senator Bill Hagerty (R-TN), a member of the U.S. Senate Banking and Foreign Relations Committees and former U.S. Ambassador to Japan, addressed JPMorgan CEO Jamie Dimon’s controversial remarks about bitcoin and cryptocurrency during an interview with Bloomberg and in a post on social media platform X on Thursday.
Commenting on Dimon’s statement made during a Senate hearing that he would close down crypto and bitcoin if he were the government, Hagerty wrote:
I can understand why large banks are opposed to cryptocurrencies — the technology has the potential to disrupt much of the traditional banking model. This is not a fight for DC to pick sides on. We need to regulate with a light touch that doesn’t kill innovation in the U.S.
The senator was asked during the Bloomberg interview whether the government should do more to regulate crypto.
While acknowledging the potential threat crypto poses to traditional banking, he emphasized the need for fostering innovation instead of stifling it. “We need to come back and look at this industry,” he stressed, urging Congress to “maintain the innovative aspects of the cryptocurrency industry rather than push it offshore.”
The lawmaker added:
We need to figure out a good way, a proper way, an appropriate way to regulate cryptocurrency here with a light enough touch that will allow us to continue to lead the way with innovation.
Hagerty is among the lawmakers who have criticized the U.S. Securities and Exchange Commission (SEC) and Chair Gary Gensler for taking an enforcement-centric approach to regulating the crypto industry.
Do you agree with Senator Bill Hagerty that the U.S. should regulate crypto with a light touch to allow innovation to flourish? Let us know in the comments section below.
Grayscale Report Sheds Light on Bitcoin’s Broad Ownership and ‘Sticky Supply’ Dynamics
A new report from Grayscale Investments reveals that bitcoin ownership is more widely distributed than commonly believed, with 74% of addresses holding less than 0 worth. However, around 40% of bitcoin supply is concentrated among institutions like exchanges, miners, governments, public companies, and long-term holders.
Grayscale Research Team’s Bitcoin Analysis — Supply Dynamics Poised to Jolt Markets
Grayscale Investments, one of the largest digital asset managers in terms of assets under management (AUM), has published a study that discusses bitcoin (BTC) ownership. Grayscale delves into the “stickiness” of bitcoin’s supply, exploring why the firm believes this aspect is especially pertinent at present, and its potential implications for the asset going forward.
While the majority of bitcoin owners are small retail investors spread across the globe, sizable portions are held by large entities like crypto exchanges, representing millions of users, as well as governments. The report highlights how there are other major owners including mining companies securing the network, public companies like Microstrategy, exchange-traded funds (ETFs), trading platforms, and dormant addresses inactive for over ten years.
Grayscale’s study says that some ownership groups seem to represent “sticky supply” that resists selling during price swings. For example, the researchers highlight decade-long inactive supply recently hit an all-time high, while miner and exchange balances have remained steady despite bitcoin’s volatility.
This inelasticity could amplify the price impact of external events that drive new demand, like the 2024 halving or a potential U.S. spot bitcoin ETF approval. As Grayscale notes, “Given the various inactive or price inelastic bitcoin ownership groups, this dynamic could prove particularly relevant to bitcoin.” The study anticipates ownership dynamics increasingly affecting bitcoin’s price response as illiquid supply grows and short-term supply shrinks.
Grayscale’s analysis highlights how bitcoin’s widespread distribution among both individual and institutional investors signifies its growing mainstream acceptance and evolution. Concurrently, the report notes that a limited supply may enhance positive market forces, according to the researchers.
Concluding the report, it states, “If these trends continue, the Grayscale Research team anticipates that the dynamics of bitcoin’s ownership could increasingly amplify the impact of macro events.”
What do you think about Grayscale’s report about bitcoin’s distribution among different entities and the “sticky supply” scenario? Share your thoughts and opinions about this subject in the comments section below.
XRP Price Confirms Early Stages Of Bull Market? Data Sheds Light On Recent Rally
Volatility is back in the crypto market as the XRP price and the price of other major cryptocurrencies trend to the upside and into new year highs. The cryptocurrency is heading towards its next resistance level with a high chance of
As of this writing, the XRP price trades at .57, with a 9% increase in the last 24 hours. The cryptocurrency recorded a 16% spike in the previous seven days and closely followed Bitcoin and Ethereum’s price action, which recorded a 22% and 16% profit over the same period.
XRP Price On Its Way To Next Critical Level
According to an XRP trader on social media platform X, the token’s price exceeded the critical resistance level of .528. The analyst claims that there is a high chance that the XRP will rise close to .60 in the short term.
In that sense, the trader believes that .66 will operate as the next critical resistance level based on the chart below. The analyst compared the current XRP price with the 2017 bull run.
The chart shows that during the 2017 run, XRP closed above the weekly Ichimoku Cloud, a level used to gauge critical resistance and support levels. Once the token broke above that level, it could quickly fall into new highs and price discovery.
The analyst stated the following about the XRP price and its potential to continue its run:
This is not a warning or financial advice, but I would like to share it with you and emphasize how close we are after this weekly close. It seems the weekly Ichimoku close will be above the clouds, and it only happened before the 2017 run and 2021. When it happens, it happens. Be Ready.
Crypto Market Poised For Further Highs
A report from Bitfinex Alpha corroborates the market susceptibility to “new narratives.” In particular, the potential approval of a spot Bitcoin Exchange Traded Fund (ETF) in the US.
As the XRP price and the market continue to rip higher, volatility in the sector is likely to remain high. As seen on the chart below, the crypto has been inching higher and higher with each volatility event (the potential approval of a Bitcoin ETF was the most recent.
In addition, the crypto research firm points to an increase in on-chain activity, which has historically supported higher prices for the sector:
On-chain activity also continues to support the conclusion that higher volatility is here to stay and that it will grow in the coming months. Our analysis of Spent Output Age Bands (SOAB), which track the age of coins when they’re spent, and in particular the “age bands” of UTXOs that are most active, we can discern which group of investors is predominantly influencing market changes. For instance, if the UTXOs aged between three and five years show significant activity, it implies that investors who have held their positions for that time span are the primary movers in the market at that juncture.
Cover image from Unsplash, charts from Bitfinex Alpha, Dark Defender, and Tradingview
Ex-General Counsel Sheds Light on FTX’s $7B Gap in Bankman-Fried Fraud Trial
FTX’s former general counsel Can Sun testified Thursday in federal court that he was shocked to learn FTX founder Sam Bankman-Fried (SBF) had secretly transferred billions in customer funds to his hedge fund Alameda Research. Sun told prosecutors he resigned the day after realizing the scope of customer money siphoned, following spreadsheets showing billion was missing.
‘Funds Had Been Misappropriated,’ Former FTX Lawyer Says
Can Sun, former general counsel of the failed crypto exchange FTX, took the stand Thursday in Sam Bankman-Fried‘s criminal fraud trial. Sun told federal prosecutors he was unaware FTX had secretly transferred customer funds to Bankman-Fried’s trading firm Alameda Research.
“I was shocked. There were billion missing,” testified Sun about learning the extent of fraudulent transfers. Prosecutors displayed FTX spreadsheets to Sun, who said he concluded “funds had been misappropriated.” Sun’s testimony was published by Matthew Russell Lee from the Inner City Press.
Sun outlined resigning as general counsel the day after his revelation, despite joining FTX from the law firm Fenwick & West. Sun claimed he approached SBF regarding the concerns, yet the response from the FTX leader was notably muted.
“I expected a bigger response. But all [SBF] said was, Got it. He didn’t seem surprised,” Sun remarked about Bankman-Fried’s calm reaction.
Sun recalled SBF asking him to provide a “legal justification” for the missing billions after a private equity firm inquired. “No. He did not tell me anything,” answered Sun when asked if SBF explained the transfers.
Under cross-examination, SBF’s attorney Mark Cohen discussed Sun’s FTX employment contract showing .5 million in loans and bonuses from Alameda Research. Questioned if connected, Sun stated, “Well they were both about my employment.”
Sun conceded to signing a non-prosecution agreement with prosecutors requiring truthful testimony. “You could be prosecuted if you don’t tell the truth?” Cohen inquired. Sun responded with a succinct “yes.” SBF’s attorney also pressed Sun on whether encrypted messaging apps were used by the legal department.
Sun’s testimony follows former FTX and Alameda executives Caroline Ellison, Gary Wang and Nishad Singh cooperating with prosecutors after pleading guilty. Bankman-Fried potentially faces over 100 years in prison if convicted of fraud and conspiracy charges, for which he has pleaded not guilty.
What do you think about the testimony from Sun and the billion missing? Share your thoughts and opinions about this subject in the comments section below.
Bitcoin Price Rally On The Horizon? BTC Spot ETFs May Get The Green Light Today
In what could be a pivotal day for the Bitcoin price, the last day for the US Securities and Exchange Commission (SEC) to appeal the Grayscale Bitcoin (BTC) spot Exchange-Traded Funds (ETF) decision is approaching, and the crypto community is eagerly awaiting the outcome.
The implications of this decision are significant, as it could pave the way for the approval of several other spot Bitcoin ETFs.
Impending Approval Of All Proposed Bitcoin Spot ETFs?
According to crypto YouTuber Crypto Rover, if the SEC does not appeal the court’s ruling by the end of the day, it would potentially lose its ability to deny future applications, resulting in the likely approval of all proposed spot ETFs.
The current list of applicants seeking approval includes prominent names such as Grayscale Bitcoin Trust, Ark/21 Shares Bitcoin Trust, Bitwise Bitcoin ETF Trust, BlackRock Bitcoin ETF Trust, VanEck Bitcoin Trust, WisdomTree Bitcoin Trust, Valkyrie Bitcoin Fund, Invesco Galaxy Bitcoin ETF, and Fidelity Wise Origin Bitcoin Trust.
If all Bitcoin spot ETFs are approved, the move would mark a significant milestone in the mainstream adoption of cryptocurrencies.
Accepting these financial instruments would provide investors with a regulated and easily accessible avenue to gain exposure to Bitcoin’s price movements without directly owning the underlying asset.
The approval would also vote for confidence in the cryptocurrency market, attracting institutional investors and potentially injecting fresh capital into the space.
The approval of Bitcoin spot ETFs also can ignite a renewed sense of optimism and investor sentiment. The anticipation of such a development has already fueled speculation of a Bitcoin rally, with market participants eyeing a new annual high.
The thawing of the crypto winter and the approval of these ETFs could create a perfect storm for a Bitcoin price to surge, potentially breaching the ,000 mark and beyond.
Bitcoin Price Awaiting ETF Relief
The largest cryptocurrency in the market is striving to reclaim the crucial ,000 level, trading at ,700. This level holds significant importance for bullish investors as it represents a key threshold to break the mid-term downtrend structure observed in BTC’s 1-day chart since its yearly high of ,800 on July 13
Additionally, the failure of the Bitcoin price to hold its 200-day (yellow line) and 50-day (brown line) moving averages (MAs) as support lines is a cause for concern among bullish traders. These MAs, similar to the situation in March 2023, are currently converging.
However, the potential approval of a BTC spot ETF could provide much-needed relief to Bitcoin’s price. Forming a complete rally would require overcoming various resistance levels in such a scenario.
In the short term, Bitcoin’s price will likely face a significant obstacle at the ,900 level, which was briefly surpassed on October 2nd. Furthermore, BTC encounters a 3-month resistance at ,700, marking the final hurdle before reaching the ,000 level, serving as another resistance line.
Nevertheless, the community anxiously awaits the approval of BTC spot ETFs, hoping that it will bring a sense of relief and bullish momentum for investors and Bitcoin’s price.
Featured image from Shutterstock, chart from TradingView.com