After a decade-long wait, creditors of the defunct Mt Gox exchange are set to receive in-kind distributions of bitcoin and bitcoin cash starting in July. The head of research from Galaxy Digital predicts the market impact of these distributions will be less severe than anticipated. Long-Term Bitcoin Holders Likely to Retain Mt Gox Bitcoin Distributions […]
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Bitcoin Advocate Says ASIC Devices’ Inflexibility Makes AI Involvement Unlikely for Bitcoin Miners
According to Joe Downie, the chief marketing officer at Nicehash, bitcoin miners struggling to stay afloat after the halving are unlikely to support or become involved with artificial intelligence (AI). This is because their application-specific integrated circuit (ASIC) miners now “only allow for mining on one algorithm.” Furthermore, Downie argued that bitcoin mining devices are […]
Bitcoin News
Galaxy Digital CEO: Bitcoin Unlikely to Fall Below $55,000 — ‘That’s the New Floor’
Galaxy Digital CEO Michael Novogratz says he doesn’t believe the price of bitcoin will fall back down to the K-K level. “I think that’s the new floor unless something dramatic happens,” he described. “This has been a wild ride of an asset,” he added, noting that we’re in price discovery mode and if you look […]
Bitcoin News
Veteran Investor Jim Rogers on Crypto: Bitcoin Unlikely to Become Money, Governments Favor CBDCs
In a new interview, Jim Rogers, who helms Rogers Holdings Inc. and was a co-creator of the Quantum Fund alongside George Soros in the 1970s, shared his observation of “various signs that something is going to go wrong soon” within the U.S. economy, predicting an impending recession. Additionally, Rogers discussed the leading crypto asset bitcoin, emphasizing his skepticism towards cryptocurrencies evolving into actual money. He underscored that should they pose a real challenge to traditional fiat currencies, governments will not tolerate it.
Renowned Investor Jim Rogers Expects a Recession – ‘I’m Afraid I See the Signs’
On Feb. 1, 2024, Jim Rogers engaged in an interview with Michelle Makori, the lead anchor and chief editor at Kitco News, delving into discussions on the U.S. economy, particular investment strategies, and briefly addressing bitcoin (BTC). Rogers shared with Makori his anticipation of a market slump, despite U.S. equities reaching peak levels unprecedented in recent years. He firmly believes the forthcoming decline will surpass any he has witnessed throughout his life.
“In 2008, we had a big problem, but the debt everywhere has skyrocketed since then,” Roger said. “So the next recession has to be the worst in my lifetime because the debt is so much higher now than it has ever been before in my lifetime. Even China has a lot of debt now.”
Rogers explained to Makori that the greenback has recently been in disarray, with many still viewing cash, particularly U.S. dollars, as a refuge. He further stressed:
The U.S. dollar is not a sound currency anymore. We’re the largest debtor nation in the history of the world. But everybody thinks it’s a sound currency, and they think it’s a safe haven. So when problems come, people race to a safe haven.
Bitcoin Does Not Pose a Threat to Government Currency – ‘It’s Just a Trading Vehicle’
In the second part of their conversation, Makori queried Rogers on his views regarding bitcoin, especially after the U.S. Securities and Exchange Commission (SEC) green-lit a significant number of spot bitcoin exchange-traded funds (ETFs), recalling his earlier assertion that governments would ban bitcoin. “Well … my point just to clarify, is that I don’t see cryptocurrencies becoming money because the governments do not want that competition,” Rogers emphasized.
The business mogul added:
I don’t think it’s a legitimate currency anywhere, except maybe in El Salvador, but El Salvador only has six million people, so I don’t think that’s going to change the world. I don’t own any cryptocurrencies. I never have, I’m not short any, I’ve never been short any [cryptocurrencies]. I mean I wish I’d bought it when it was a dollar, I wish I’d bought IBM in 1914, I wish a lot of things you know, looking back in history.
However, Rogers maintained that should crypto assets pose real threats to governments, they will not stand for it. “That’s not the way Washington or London or other places work,” Rogers quipped. To date, cryptocurrencies such as bitcoin (BTC) do not pose a “threat” to state-issued currency, in Rogers’ view, being merely a “trading vehicle.” As Rogers’ interview concluded, Makori inquired about his stance on central bank digital currencies (CBDCs), to which he emphasized that governments, naturally, are very fond of the concept.
“I fully expect that eventually, currencies are going to be on the computer,” Rogers explained. “It’s much more efficient, it’s cheaper, it’s better for many people, and governments love it because as you point out they know everything you do. They’ll call you up one day and say ‘Michelle you’ve been drinking too much coffee this month, don’t drink so much coffee anymore … They’ll know everything you do, they’ll know everything we do, governments love that, I don’t particularly like it, I think it’s horrible. But governments have the guns. I don’t have any guns. So they will do what they want and I suspect and it should happen that currency money will be on the computer someday.”
The chairman of Rogers Holdings continued:
It’s not good for you and me, but it’s certainly good for the governments.
What are your thoughts on Jim Rogers’ perspectives regarding bitcoin and central bank digital currencies (CBDCs)? Share your thoughts and opinions about this subject in the comments section below.
ECB Member Isabel Schnabel: Bitcoin Is ‘Speculative,’ ‘Unlikely’ to Be Purchased by the Bank
Isabel Schnabel, member of the European Central Bank (ECB) executive board, has blasted bitcoin’s characteristics, stressing that it is a speculative asset unlike central bank digital currencies (CBDC) like the proposed digital euro. Schnabel stressed it was ‘unlikely’ that the ECB would ever start buying bitcoin as part of its balance sheet.
ECB’s Schnabel: ‘The ECB Is Very Unlikely to Ever Buy Bitcoin’
Isabel Schnabel, executive board member of the European Central Bank (ECB), blasted bitcoin’s properties, stating that it lacked the functions of money. In a recent Q&A session where X users could send questions, Schnabel presented central bank digital currencies (CBDCs) as a solid alternative to digital private money, criticizing bitcoin as an unreliable asset.
When asked if she believed bitcoin was better than the digital euro, the European Union’s CBDC currency, Schnabel answered:
The digital euro is public money issued directly by the European Central Bank. Bitcoin is different – it is a speculative asset that does not fulfill the characteristics of money.
Schnabel stressed that the advantages that the digital euro would bring over today’s digital fiat currencies had to do with the possibility of converting private money to public money. Schnabel stressed that a digital euro, promoted as the digital alternative for cash and not its substitute, would strengthen trust in the European currency.
Also, when asked about the possibility of buying bitcoin as part of the balance sheet of the ECB, Schnabel stated that this was very unlikely to happen, but she did not reject it outright.
The ECB is gearing toward the decision to greenlight or suspend the digital euro project, having destined a significant part of its tenders budget to the research and development of this digital currency, focusing on solving offline payments issues. However, there is still no definitive answer on its issuance, as the project entered its “preparation phase” in October, which involves selecting probable partners that would accompany the ECB in developing the digital euro platform.
What do you think about the ECB’s take on bitcoin and CBDCs? Tell us in the comments section below.
Matrixport Report Says SEC Unlikely to Approve Spot Bitcoin ETFs in January, Price to Drop Below $40,000
The crypto financial services platform Matrixport has said it does not see the U.S. Securities and Exchange Commission approving any spot bitcoin exchange-traded fund in January. In its latest report, the crypto platform said it foresees the price of bitcoin dropping “back to the ,000/,000 range.”
Approvals Expected After January
The crypto financial services platform Matrixport has released a new report suggesting that the U.S. Securities and Exchange Commission (SEC) is unlikely to approve spot bitcoin exchange-traded funds (ETF) on or before January 9, as anticipated. In the report released on Jan. 2, the platform asserts that “all applications [will] fall short of a critical requirement that must be met before the SEC approves.”
According to the Matrixport report, spot Bitcoin ETF applicants are only likely to satisfy the SEC’s demands after January. As reported by Bitcoin.com News, the SEC and spot Bitcoin ETF applicants have held several meetings to iron out issues that the former wants resolved. Several reports indicate that applicants like Blackrock and Grayscale Investments have acceded to some of the SEC’s demands.
One key demand made by the SEC is for spot Bitcoin ETFs to adhere to the “cash only” rule. While most applicants have since made the required amendments, some players in the crypto space have criticized the demand. For instance, Gabor Gurbacs, the director of the asset management firm Vaneck, has labelled the SEC’s cash-only requirement “nonsense.”
James Angel, a professor at Georgetown University, has also blasted the Commission for ignoring the benefits of an “In-Kind Model.” However, despite the pushback against some of its tactics, the SEC has seemingly continued to demand more amendments to spot ETFs already submitted.
The SEC’s Connections With the Democratic Party
Explaining why the SEC is not expected to approve the applications before Q2 2024, the Matrixport report said:
The current five-person voting Commissioners leadership critical for the ETF approval of the SEC is dominated by Democrats. SEC Chair [Gary] Gensler is not embracing crypto in the U.S. and it might even be a very long shot to expect that he would vote to approve bitcoin spot ETFs.
The report also suggested that Gensler is less inclined to approve a spot bitcoin ETF because doing so would be tantamount to legitimizing BTC as an alternative store of value.
Commenting on the top crypto asset’s price scenario should the SEC refuse to approve the applications, Matrixport, which recently predicted a BTC price break out in January, said it sees the value dropping “by -20% very quickly and falling back to the ,000/,000
range.”
To hedge against any steep drop in price that follows the SEC’s failure to approve applications by Jan. 5, the Matrixport report said investors should consider hedging with options.
“Matrix on Target recommends that traders hedge their long exposure by buying the ,000 strike puts for the end of January or even going outright short Bitcoin
through options,” the report said.
At the time of writing (9.00 AM EST Jan. 3), one BTC was trading at just over ,000 or 7% lower than the ,000 seen 24 hours earlier.
After Matrixport released its latest report, some observers were quick to highlight the fact that the crypto platform’s last report predicted that the price of BTC to top ,000 in January. Others have questioned the motives behind Matrixport’s about face. These concerns prompted Matrixport co-founder Jihan Wu to issue a statement explaining the relationship between Matrixport researchers and management.
Matrixport’s analysts operate independently, expressing their opinions without any influence or interference from management. They are employed for their superior analytical skills compared to mine and other management team. I have only briefly glanced at the title of the report,…
— Jihan Wu (@JihanWu) January 3, 2024
Wu claimed that the report was only intended for Matrixport’s clients but admited that “its wide spread by the media was not planned by Matrixport and is beyond our control.” The co-founder also sought to downplay the significance of Matrixport’s apparent U-turn.
“Looking at Bitcoin’s history and its future prospects, the current volatility and the potential approval uncertainty of a Bitcoin ETF in January 2024 are ultimately of no importance. In the long term, Bitcoin will always prevail,” Wu insisted.
He ended the social media post by reiterating his belief that the SEC will eventually approve spot bitcoin ETFs which in turn will cementthe crypto asset’s status as “a store of value and a risk-hedging asset akin to be better than gold.”
What are your thoughts on Matrixport’s latest BTC price prediction? Let us know what you think in the comments section below.
BNB Price Crash To $5 Unlikely Despite Binance Critic’s Dire Predictions
A Binance critic, “Whale Wire,” on X, who also claims to be a crypto whale, has issued a bold prediction that BNB, the native currency of the BNB Chain and which is used to incentivize trading activity on Binance, could plunge 95% to under in the coming months.
Regarding Binance agreeing to pay billion in fines related to legal settlements with U.S. regulators, Whale Wire argued that tighter oversight will supposedly “destroy Binance’s entire business model.” He further contended bankruptcy could be imminent as the effects of the BNB lead to a contagion.
Will The BNB Price Flash Crash?
However, while increasing regulatory oversight, wind-downs, and decreased risk tolerance among traders have impacted volumes, Binance remains the world’s largest crypto exchange by client count and still facilitates the most trading globally by a wide margin as of writing on November 22.
For context and pulling data from CoinMarketCap (CMC), Binance continues to dominate spot crypto trading, generating over .7 billion in average trading volume, over 6X Coinbase, with .3 billion, and ahead by huge margins from Kraken, which draws 41.2 billion. The same trend can be observed in derivatives trading, where Binance leads ahead of OKX.
BNB also remains firmly among the top 5 cryptos in the market cap. Besides USDT, BNB is the third largest coin by market cap, leading other altcoins, including XRP, Solana (SOL), and Cardano (ADA).
Besides its dominance, Binance has been given over a year to pay assessed fines. Meanwhile, its new CEO, Richard Teng, said the exchange will continue to enact compliance overhauls. At the same time, it is assuring clients that funds remain safe.
Considering the exchange will continue operating both in the United States and globally, the transitional window offered by the DOJ could make its collapse, and that of BNB, unlikely.
Binance Under Pressure, Trading Volume Falling
Even so, factoring in dropping trading volume in 2023 and the impact of losing users, especially in areas Binance pulled out from, the resulting dip in revenue could, at the end of the day, apply downward pressures on BNB. Thus far, Binance sold its business in Russia while exiting Canada and the Netherlands.
Presently, 0 remains a critical support level for BNB. Whether this line will be retested in the months ahead remains to be seen. Changing hands at around 0, BNB is technically in an uptrend in the shorter time frame. It is up 15% from October 2023 lows. However, it is still down 65% from 2021 peaks when it soared to around 0.
JPMorgan: US Crypto Regulations Unlikely to Ease Despite SEC Legal Defeats
Global investment bank JPMorgan has warned investors that U.S. crypto regulations are unlikely to ease, even though the Securities and Exchange Commission (SEC) has lost several recent court cases against crypto firms. “It is far from clear that the regulatory tightening of the crypto industry will lessen significantly going forward given how unregulated this industry is,” said JPMorgan’s analysts.
JPMorgan Sees Continued Crypto Regulatory Tightening
JPMorgan’s analysts explained in a note last week that cryptocurrency regulations in the U.S. are unlikely to ease even after the U.S. Securities and Exchange Commission (SEC) lost several legal battles against crypto firms.
Citing optimism in the crypto space regarding the approval of spot bitcoin exchange-traded funds (ETFs) by the SEC, the JPMorgan analysts cautioned that a spot bitcoin ETF approval does not signal a complete regulatory shift toward the crypto industry. Citing two legal cases where the courts ruled against the securities regulator in favor of Ripple Labs and Grayscale Investments, the investment bank detailed:
While this year’s Ripple vs SEC and Grayscale vs SEC court rulings represent legal defeats for the SEC, it is far from clear that the regulatory tightening of the crypto industry will lessen significantly going forward given how unregulated this industry is.
“We do not believe U.S. lawmakers would shift their stance because of the above two legal cases, especially with the memories from the FTX fraud still fresh,” they stressed, emphasizing that crypto regulations in the U.S. are “still pending.”
The JPMorgan analysts further noted that the recent BTC rally is “rather overdone,” adding that the drivers behind the crypto’s bullishness, such as the expected approval of spot bitcoin ETFs by the SEC and the halving, may have little impact on bitcoin.
While many in the crypto industry anticipate that spot bitcoin ETFs will drive demand for BTC, enticing traditional investors to enter the space, JPMorgan analysts remain unconvinced that these ETFs will infuse new capital into the crypto sector. Instead, they expect spot bitcoin ETFs to draw investment from existing bitcoin products, including Grayscale’s bitcoin trust (GBTC), upcoming ETFs, and bitcoin mining firms. The investment bank’s note states:
We envisage this shift as a relative value trade as several of the above bitcoin products trade at a premium or much reduced discount relative to the past.
SEC Chairman Gary Gensler recently revealed that the regulator is considering between eight and 10 spot bitcoin ETF applications. JPMorgan said in September that it expects the SEC to approve multiple spot bitcoin ETFs at once. Microstrategy’s chairman and a vocal proponent of bitcoin, Michael Saylor, has predicted that the demand for BTC will double following the halving and the approval of spot bitcoin ETFs.
What do you think about JPMorgan’s bitcoin outlook and do you think U.S. crypto regulations will ease after the SEC lost against Ripple and Grayscale? Let us know in the comments section below.
XRP Unlikely To Suffer From Ripple IPO, Crypto Author Says
Amid multiple speculations on the effects of Ripple potentially launching an initial public offering (IPO), popular crypto author Panos Mekras has come out to dispel concerns about this development, yielding a negative effect on the XRP token.
Ripple IPO Will Lead To More Exposure For XRP, Mekras Says
On Friday, November 3, crypto analyst and trader Mason Versluis shared a screenshot on X in which a crypto enthusiast argued that a Ripple IPO would result in the “death of XRP.”
Although the enthusiast did admit that XRP may initially experience a price surge following the confirmed news of such development, he also suspects that Ripple’s “manipulation” of the altcoin will increase.
Will the Ripple Stock IPO be the DEATH of $XRP?
Very interesting discussion to be had there…
I believe it should only increase the interest in XRP and help it. But I can also see the other side… We shall see… pic.twitter.com/mTJYdRNh8c
— MASON VERSLUIS (@MasonVersluis) November 3, 2023
In contrast, Versluis stated that a Ripple IPO should only boost the interest in XRP. However, he does admit the possibility of the “other side.”
Reacting to Versluis’ post, Panos Mekras, stamped out the potential of a Ripple IPO causing any negative effect on XRP. He stated that Ripple inviting public investors would result in a bigger exposure for the company and the XRP token.
In addition, Mekras also implied that XRP functions as a “universal digital asset” with several use cases possessing an “unlimited potential”; thus, its trajectory cannot be solely tied to Ripple, which is just one company.
For now, these takes can be considered as only speculations as Ripple has not even officially confirmed its intention to launch an IPO.
There is no other side. Ripple going public means bigger exposure & awareness for the company, their products (some of which use XRP), and XRP itself.
And remember: Ripple is one company, while XRP is a universal digital asset with multiple use cases & unlimited potential. https://t.co/giVbWvcmlb
— Panos
{X} (@panosmek) November 3, 2023
News surrounding the payment company’s “alleged” preparation to go public rose to a new height on Friday after crypto analyst Lewis Jackson posted a video on YouTube highlighting multiple signs of an incoming IPO.
In this YouTube post, Jackson spoke about the notable increase in Ripple’s mergers and acquisitions (M&A), which is a common activity with companies anticipating an IPO.
He also pointed to Ripple’s current recruitment activities in which the company is looking for a director of international tax and a shareholder communication senior manager, among others, all of which are roles that are indicative of impending IPO.
XRP Soars By 12% In A Week
In other news, XRP has produced a remarkable price performance in the last week, gaining by 12.47% within seven days. This price rise allows the fifth largest cryptocurrency to maintain its market recovery in Q4 2023 after the altcoin experienced a 40% price decline in Q3 as the hype surrounding Ripple’s partial victory over the SEC came down.
At the time of writing, XRP trades at .614 with a 1.49% gain in the last day. Meanwhile, the token’s daily trading volume is currently down by 34.98% and valued at .1 billion.
Circle CEO Jeremy Allaire: Stablecoin Bill Unlikely to Be Signed Into Law
Jeremy Allaire, CEO of Circle, the issuer of USDC, the second-largest stablecoin in the market, has shared his skepticism about the passing of a stablecoin law anytime soon. On Laura Shin’s podcast, Unchained, Allaire explained that, while there is a consensus about the importance of regulating stablecoins in the U.S., he doesn’t believe that the recently advanced ‘Clarity for Payment Stablecoins Act’ will be signed into law.
Circle CEO Jeremy Allaire Skeptical About the ‘Clarity for Payment Stablecoins Act’
Jeremy Allaire, CEO of stablecoin company Circle, is skeptical about the possibility of the recently advanced Clarity for Payment Stablecoins Act being passed into law. On Unchained, Laura Shin’s cryptocurrency podcast, Allaire stated that, while there has been a consensus around the need for stablecoin regulation in the country, he doesn’t think this legislation will pass.
The reason behind his opinion lies in the lack of definition of key subjects in the bill that, according to Allaire, needs to be resolved. Allaire declared:
A lot of this has to do with how much of a role the Federal Reserve plays in not setting the standards … does the Fed get to veto who receives a stablecoin license?
Federal vs. State
Another of the subjects that Allaire believes will slow down or even stop the progress of the Clarity for Payment Stablecoins Act has to do with the involvement of the Federal Reserve in stablecoin affairs.
Allaire explained it is unclear if the Federal Reserve will have any faculties related to licenses issued by states for stablecoins companies. He stressed:
Does the Fed have any supervision if a state like New York issues a stablecoin charter to someone — does the Fed have any joint or supervisory role? It’s kind of technocratic but it is actually really important stuff that has to do with state rights and federal rights and the balance of power.
However, Allaire highlighted several advantages of the act, saying its approval would establish a clear pathway for bank and non-bank stablecoin issuers, being very specific about reserves, transparency, and risk management.
For Allaire, the Clarity for Payment Stablecoins Act “effectively creates legal certainty that a dollar stablecoin is a part of the global and U.S. financial system,” unlocking massive mainstream usage of these tools.
What do you think about Allaire’s thoughts on the Clarity for Payment Stablecoins Act? Tell us in the comments section below.