Digital asset investment products have seen substantial outflows totaling 0 million, marking the most significant withdrawal since March 22, 2024. According to Coinshares and lead researcher James Butterfill, this exodus is attributed to a hawkish Federal Open Market Committee (FOMC) stance, leading investors to reduce their exposure to fixed-supply assets like bitcoin. Coinshares Flow Report […]
Bitcoin News
Bitcoin ETFs Witness 18 Straight Days Of Inflows, Options Traders Eye $100,000
US spot Bitcoin ETFs have experienced a noteworthy streak of net inflows for 18 consecutive days, contributing to the upward momentum of the leading cryptocurrency as it inches closer to its all-time high levels set in March.
According to Bloomberg data, these ETFs, managed by some of the world’s largest financial institutions, have attracted net subscriptions of .6 billion since their launch on January 11, bringing total assets under management to a substantial .3 billion.
Record-Breaking Demand For Bitcoin ETFs
According to Bloomberg, the success of Bitcoin ETFs introduced by BlackRock and Fidelity Investments has made them some of the most successful launches in the ETF sector’s history.
These products have significantly influenced the center of gravity for cryptocurrency investments, shifting it from Asia to the United States.
Sean Farrell, Head of Digital Asset Strategy at Fundstrat, noted the significant inflows into spot Bitcoin ETFs and highlighted that the macroeconomic environment favors the cryptocurrency market. Economic growth is advancing at a “non-recessionary pace” and signs of disinflation persist.
Recently, BlackRock’s iShares Bitcoin Trust, with .4 billion in assets, became the world’s largest Bitcoin fund, surpassing Grayscale’s .1 billion Bitcoin trust (GBTC). On the other hand, the Fidelity Wise Origin Bitcoin Fund (FBTC), with .3 billion in assets, currently holds the third position.
The US Securities and Exchange Commission (SEC), which had been cautious about digital assets, reluctantly permitted spot Bitcoin ETFs in January due to a court reversal in its lawsuit against Grayscale in 2023.
Although the SEC remains critical of the digital asset industry’s compliance with regulations, recent efforts in Congress to establish clearer legislative frameworks for cryptocurrencies have gained momentum.
BTC Options Traders Target 0.00
In addition to the Bitcoin ETF inflows, options traders are increasingly optimistic about Bitcoin’s future. Open interest is concentrated on call options with strike prices of ,000, 0,000, and ,000.
Luuk Strijers, CEO of Deribit, the largest crypto options exchange, noted the bullish sentiment in the BTC options market. Traders anticipate new all-time highs, driven by strong Bitcoin ETF flows, expectations of US interest rate cuts, the European Central Bank’s rate cuts, and the recent approval of an ETH ETF.
While Bitcoin experienced a minor retreat from its record high of ,700 set in March, renewed inflows into Bitcoin ETFs and expectations of interest rate cuts have reignited optimism among traders. Call options expiring in late June and December are particularly active, indicating a positive short- and long-term outlook.
As of press time, the largest cryptocurrency on the market has successfully consolidated above the ,000 milestone. Its gains over the past seven days amount to 5%, favoring the price of BTC and resulting in a current value of ,320.
Featured image from DALL-E, chart from TradingView.com
In 22 Days, Liquid Staking Platforms Witness a 340,000 ETH Decline
According to the most recent data, within the last 22 days, the volume of staked ether locked across various liquid staking derivative token platforms has seen a decline of 2.45%. This downward trend was observed across 27 unique platforms, culminating in a reduction of 340,000 ETH, valued at approximately .18 billion. .18 Billion Worth of […]
Bitcoin News
Crypto Exchanges Witness Bitcoin Deposit Boom Amidst Ethereum Retreat
According to recent data, in the past month, the quantity of bitcoin residing in centralized cryptocurrency exchanges surged by 32,058 bitcoin. Concurrently, the ethereum reserves on these exchanges have diminished, with 262,904 ether, valued at 7.42 million, being withdrawn from trading platforms since Dec. 4, 2023.
Bitcoin Bulks Up as Ethereum Eases Off in Latest Crypto Exchange Reserve Trends
An upsurge in bitcoin deposits and a decline in ether holdings have been observed at the world’s leading crypto exchanges, as per cryptoquant.com. The data indicates that on Dec. 4, 2023, exchanges housed 2,058,106 BTC, which has since risen by 1.55% to a current tally of 2,090,164 BTC. This surge reflects an accumulation of 32,058 BTC, valued at .4 billion, within the last month.
Data reveals Binance as the top custodian of BTC, succeeded by Coinbase and Bitfinex. Nansen’s analysis indicates that, at present, Binance possesses 555,700 BTC, translating to a worth of .43 billion. Coinbase maintains a reserve of approximately 412,467 BTC, while Bitfinex oversees 390,050 BTC. Collectively, these three platforms safeguard .71 billion in value, accounting for 64.98% of the total BTC harbored on exchanges.
Conversely, the scenario for ethereum paints a stark contrast. A total of 262,904 ether, amounting to 7.42 million, was withdrawn from centralized trading venues. Data from Dec. 4, 2023, showed exchanges holding 14,226,502 ETH, which has decreased to 13,963,598 ETH as of the latest count. ERC20 stablecoins, or fiat-pegged tokens built on top of Ethereum, also saw significant influx into centralized trading platforms.
Dec. 4, 2023 metrics indicate a total of 17.79 billion ERC20-based stablecoins were held on crypto exchanges, which has since expanded to 18.76 billion. This reflects an increase of 0 million in dollar-pegged crypto tokens deposited into leading crypto exchanges. Once more, Binance emerges as a predominant holder of stablecoins, maintaining a substantial quantity of USDT (19.44B) and a dominant share of the TUSD, BUSD, and FDUSD supplies.
The recent crypto exchange reserve fluctuations in BTC, ETH, and ERC20 stablecoins mirror the wider patterns and attitudes shaping the cryptocurrency market in its ongoing evolution. Prominent trading platforms such as Binance, Coinbase, and Bitfinex, among others, still maintain substantial bitcoin reserves. Simultaneously, the variable movements of ether and ERC20-based stablecoins highlight changing tactics and inclinations in the digital currency landscape.
What do you think about the bitcoin deposits and the ethereum withdrawals over the last 30 days? Share your thoughts and opinions about this subject in the comments section below.
Bitcoin L2 Solutions Witness Decline, Lackluster Demand Despite Surging Transaction Fees
On Saturday, December 16, the cost of transacting in bitcoin eclipsed its previous peak from May 8, 2023, surging past per transaction. The trend of escalating onchain fees began on the final day of October, steadily increasing thereafter. Numerous crypto proponents foresaw this spike, suggesting a potential shift to Layer two (L2) platforms as a prudent measure. Despite an initial increase in the quantity of BTC on the Lightning Network from late October to November’s conclusion, approximately 350 bitcoin have been withdrawn in the subsequent one and a half months.
The Rush to L2s Remains Underwhelming
After a brief pause in September 2023, Ordinal inscriptions surged towards October’s end, currently accounting for 40-50% of Bitcoin’s transactions. In November, BTC miners hit record highs, processing an unprecedented number of transactions in a single day, and earning substantial fees from these inscriptions.
Yet, the surge in inscription use, combined with bitcoin’s financial transactions and rising prices, has led to a significant buildup of unconfirmed transactions. By Saturday afternoon, 2 p.m. (EST), the mempool had soared, nearing the 400,000 mark from 300,000.
Concurrently, fees escalated, crossing the per transaction threshold as the mempool exceeded 300,000 unconfirmed transactions. Warnings about this high fee rate environment have been circulating for some time.
On November 7, 2023, Barefoot Mining’s Bob Burnett cautioned about this trend, recommending long-term storage. Similarly, others in the crypto community have suggested shifting to offchain solutions like the Lightning Network.
The Lightning Network’s capacity expanded modestly from 5,440 BTC to 5,540 BTC by November’s end. Yet, since November 25, 2023, about 350 BTC, valued at approximately .8 million, has exited the L2 network.
The Lightning Network now holds 5,190 BTC, less than what it had when fees began to rise on Halloween. One might expect an increase in capacity before the high-fee rate environment became overwhelming.
However, this expansion didn’t materialize. In this environment of fluctuating high fees, those opting for the Lightning Network face onchain fees to access this L2 solution. Meanwhile, Blockstream’s L2 solution, Liquid, has seen a rise in capacity, with 199 BTC added since November, as stated on the firm’s website.
Yet, Liquid’s explorer indicates minimal transaction activity in blocks. Between block heights 2,640,919 and 2,640,976, blocks contained no more than seven transactions each. In this high fee rate climate, newcomers face daunting challenges adapting, often bewildered by the complex dynamics driving these onchain costs.
Despite prior warnings, the community largely disregarded the signs, leading to an unexpected decline in the Lightning Network’s capacity. This trend starkly contrasts with the anticipated and favored increase, highlighting a disconnect between expectations and the evolving realities of the cryptocurrency landscape.
Even though there are additional L2 solutions available for BTC, so far, these too are not experiencing a significant migration towards their scaling options. Based on concrete data from recent weeks, setting aside subjective views, it seems that users are willing to navigate the steep onchain fees, opting not to turn to alternative solutions.
What do you think about the decline and lackluster demand for Bitcoin L2 solutions before and amid the high-fee rate environment? Share your thoughts and opinions about this subject in the comments section below.
SUSHI and BDX Spearhead Market Surge as 2 Dozen Cryptos Witness Double-Digit Gains
On November 2, 2023, the crypto economy is thriving, boasting a value of .31 trillion following a 2.88% increase in the past 24 hours. Bitcoin has notably surpassed the ,000 mark, showing a 2.8% increase, while a wide array of two dozen digital assets have experienced double-digit growth this Wednesday. Leading the 24-hour surge are the crypto tokens sushi (SUSHI) and beldex (BDX), which stand out higher in terms of gains among their peers.
24 Cryptocurrencies Experience Explosive 24-Hour Growth
A considerable number of cryptocurrency tokens are flourishing today, with 24 in particular enjoying double-digit gains against the U.S. dollar. On the other hand, approximately five coins have seen a decrease in value of 2% to 5% in the same timeframe.
Sushi (SUSHI), the crypto asset associated with the decentralized exchange (dex), has emerged as Wednesday’s top performer. Impressively, SUSHI has risen by more than 56% in just one day and has surged by 94% over the course of the week.
Following SUSHI in terms of 24-hour gains is the coin beldex (BDX), a key component of the Beldex private ecosystem. BDX has witnessed a significant 38% increase in the last 24 hours, and its performance over the past seven days shows a 34% rise.
Celo (CELO) earned the third spot with a substantial 27% increase on Wednesday, while pancakeswap (CAKE) also enjoyed a 27% growth over the past day. Additional leaders on Nov. 2 include JST, MASK, ROSE, AAVE, UNI, and MANA.
Today’s most significant losers against the dollar are POLY, OMI, RLB, BONE, and WLD. POLY has shed just over 5%, while OMI has decreased by 4.47% in the past 24 hours. RLB has fallen 4.3%, BONE has slid 2.9%, and WLD has seen a 2.4% decline.
While the majority of the market is on the rise, about 15 digital currencies are down against the U.S. dollar. Regarding trade volume, USDT, BTC, ETH, and USDC are leading, followed by SOL, XRP, LINK, and DOGE. Solana (SOL) has seen .78 billion in trades over the past 24 hours, while XRP has experienced .88 billion.
What do you think about today’s biggest gainers and losers in the crypto market? Share your thoughts and opinions about this subject in the comments section below.
November To Witness Over $450M In Token Unlocks: Aptos And Avalanche Take The Lead
The crypto market is set to experience significant token unlocks in November, with projects such as Aptos (APT), Avalanche (AVAX), and Hashflow (HFT) leading the way.
These unlocks are anticipated to release more than 0 million worth of tokens, contributing to the overall 0 million set to enter circulating supplies in the crypto market this month.
It is worth noting that such substantial releases could have immediate and long-term effects on both the price and availability of these digital assets.
Aptos And Top Players In November’s Token Release
Token unlocks are events where previously locked tokens become available for trading, often increasing a project’s circulating supply. These events are critical moments for projects, as they can signal maturation and a new phase of market dynamics.
Aptos, a Layer 1 blockchain created by former Meta executives, is expected to have the most significant token unlock by value, releasing 24.8 million APT tokens, currently representing about 5.6 million at today’s price.
Aptos’s upcoming unlock on November 12 is not just substantial in value but also notable for its distribution, with core contributors, investors, the community, and the Aptos Foundation all set to receive portions of the release.
Meanwhile, Avalanche, another Layer 1 blockchain, is preparing for its considerable token unlock later in the month on November 24, which will see 9.54 million AVAX tokens (valued at approximately .3 million at today’s price) released, marking 2.7% of its circulating supply.
Hashflow, a multi-chain decentralized exchange, is slated to have the largest token release by circulating supply percentage. It is poised to unlock 160.38 million HFT tokens, approximately 73.9% of its circulating supply, on November 7, injecting roughly million into the market.
The distribution of these tokens will span early investors, ecosystem development, the core team, and community rewards, adding another layer to the economic activities of the project.
Other Notable November Token Unlocks
Other projects like Optimism (OP), ApeCoin (APE), and Sui (SUI) are also scheduled for significant token unlocks this November. However, they pale in comparison to the top three in terms of value. Optimism is set to unlock 24.16 million OP tokens worth .4 million.
Apecoin (APE) is poised for an unlock of 15.60 million APE tokens worth .5 million, and SUI is to unlock 34.62 million tokens valued at .6 million at today’s market prices.
Each unlock carries potential implications for the broader crypto market, as they may affect liquidity, trading volume, and investor sentiment. Furthermore, out of these six tokens above set to unlock this month, Aptos and Avalanche are the top gainers.
Currently, both assets are up 38% and 22%, respectively, in the past 14 days. APT trades at .82, down by 2% over the past 24 hours, while AVAX trades at .02, down by 2.7% over the same period, at the time of writing.
Featured image from Unspkash, Chart from TradingView
Ex-FTX Chief’s Defense Team Challenges FBI Interviews, Raises Questions About Witness Credibility
On Wednesday, the defense team for the former FTX CEO Sam Bankman-Fried issued a letter to the judge seeking to question two FBI agents who interviewed Gary Wang, former chief technology officer of FTX, and Nishad Singh, former director of engineering at FTX. Lawyers allege the witnesses provided “inconsistent statements” that don’t match their original interviews with the agents.
Former FTX Executives’ Testimonies Under Scrutiny in Ongoing Bankman-Fried Trial
Lawyers for Sam Bankman-Fried are interested in the “elicited testimony” gathered by two FBI agents who interviewed Gary Wang and Nishad Singh. The letter says Wang was questioned on October 6, and they asked him about specific statements he gave to the special agents on November 17, 2022, and December 7, 2022.
“Mr. Bankman-Fried’s counsel specifically asked Mr. Wang whether [a] reference to notes that the FBI Agents had prepared on Form 302 refreshed his recollection of his statements to the FBI Agents at those interviews,” the letter details. “On each of these occasions, Mr. Wang denied having made or claimed not to recall having made the statements recorded in the Form 302.”
The attorneys also delved into the reported special code privileges called “allow negative” that benefited Alameda, and Wang may have been “pressured or incentivized” to provide prosecutors with an “innocent explanation.” Bankman-Fried’s lawyers also noted similar instances when they cross-examined Nishad Singh on October 17, 2023. Singh was interviewed by the U.S. government on January 4, 2023, and January 19, 2023.
Again with Singh, the lawyers said they tried to refresh his recollection of the testimony, but he wasn’t able to remember everything he said during the interviews. The witnesses’ “inability to recall” these types of statements goes against the credibility of their testimony, the lawyers stressed. Bankman-Fried’s attorney, Mark Cohen, disclosed Wednesday that his client would testify in his trial. The testimony was set for Thursday, but the latest letter from the defense team could disrupt that plan.
Attorneys are calling for the testimony of FBI agents regarding their initial interviews with Singh and Wang. While pleading not guilty to all charges leveled against him, Bankman-Fried maintains his innocence.
What do you think about the defense team’s letter to the judge in the Bankman-Fried case? Share your thoughts and opinions about this subject in the comments section below.
Tales From the FTX Bean Bag: Witness Reveals Bankman-Fried’s Financial Missteps and Personal Entanglements
During the Sam Bankman-Fried trial this week, Adam Yedidia, a close friend and former employee of the ex-FTX chief, delivered his testimony. Yedidia had a brief stint as an intern at Alameda Research, a quantitative trading firm linked to FTX, before he transitioned to FTX’s Hong Kong office in early 2021. Additionally, he was part of the FTX executive team residing at the Albany Place luxury resort in the Bahamas.
Ex-FTX Developer Talks Billion Code Glitch and Use of Client Funds
On Thursday, Yedidia returned to the witness stand for his second day. As Wednesday’s session concluded, he revealed that he got a call informing him that Alameda was misusing client funds. Disturbed by this revelation, Yedidia stepped down. Soon after, FTX faced bankruptcy, grappling with liquidity challenges and failing to process client withdrawals.
Much of Yedidia’s questioning was broadcast on the social platform X, courtesy of Matthew Russell Lee from Inner City Press. Since his resignation, Yedidia hasn’t communicated with Sam Bankman-Fried, especially after discovering the mishandling of client funds. He further disclosed that FTX occasionally moved client deposits to an Alameda Research account without client awareness.
A technical glitch he discovered led to a staggering billion underestimation in Alameda’s liabilities. When Yedidia voiced his apprehensions to Bankman-Fried, he was pacified and told everything was in order. After rectifying the error himself, Yedidia briefed Bankman-Fried on the situation through Signal. However, that conversation was allegedly set to auto-delete and is now lost. Yedidia recalled Bankman-Fried’s advice to use the auto-delete feature, suggesting it was too risky to retain messages.
In the midst of the unfolding chaos, Yedidia initially assured Sam of his loyalty. However, his stance shifted upon learning that Alameda had tapped into client deposits to settle its debts, deeming it a “flagrantly wrong thing.” Yedidia also shed light on Bankman-Fried’s ties with Alameda’s CEO, Caroline Ellison, and their casual intimate encounters. When Bankman-Fried confided about his intimacy with Ellison, he sought Yedidia’s opinion on pursuing a relationship, to which Yedidia advised against.
U.K. Trader Discusses £100,000 Loss, Trust in Bankman-Fried, FTX
Yedidia took the stand under an immunity deal he struck with federal authorities. The agreement shields him from prosecution for any wrongdoings in this case, provided he doesn’t lie under oath. Alongside Yedidia, Marc-Antoine Julliard, a trader from the U.K., shared his account. Julliard revealed a staggering loss of about 100,000 pounds due to the FTX debacle.
Julliard held Bankman-Fried in high regard, believing FTX to be a reliable and credible exchange. He delayed his fund withdrawal from FTX, basing his decision on Bankman-Fried’s updates on X (previously known as Twitter). From those posts, Julliard was led to believe that withdrawals were proceeding smoothly. Unfortunately, this choice proved to be a bad mistake.
What do you think about Adam Yedidia’s testimony? Share your thoughts and opinions about this subject in the comments section below.
August Chronicles Another Month of Decline as 9 of 10 Leading Stablecoins Witness Supply Contraction
Over the past 30 days, nine of the leading ten stablecoins by market cap experienced declines, with BUSD witnessing the most significant dip, plunging 16.6%. As we wrapped up August, the combined value of these stablecoins hangs just below the 5 billion threshold, continuing a trend of consecutive monthly decreases this year.
Major Supply Drops for 9 of the Top 10 Dollar-Pegged Leaders; FDUSD Supply Jumps 40% Higher
Currently, the stablecoin market stands at 4.54 billion. Echoing the trends of previous months, August witnessed a contraction in the supply of numerous projects. Tether (USDT), the heavyweight in the stablecoin arena, boasts a valuation of approximately .88 billion.
However, USDT saw its circulating supply drop by 1.1% over the last 30 days. Circle’s usd coin (USDC) declined 1.4% this month, while Makerdao’s DAI faced a 6.4% contraction in its monthly supply. USDC’s market cap floats around .13 billion, with DAI trailing at .89 billion.
Although DAI’s supply stands below 4 billion, BUSD is teetering close to dropping below the billion mark. In the past 30 days, BUSD decreased its supply by a notable 16.6%, while TUSD reported a 3.8% dip in circulation. FRAX, albeit seeing a decline in August, had the slightest reduction of the top ten, shedding a mere 0.6%.
Meanwhile, Tron’s USDD and pax dollar (USDP) registered monthly drops of 2.5% and 8.3% respectively. The newcomer, first digital usd (FDUSD), defied the trend and expanded its supply from 232 million at the start of August to 327 million FDUSD by month’s end – a growth of more than 40%.
Over the last month, gemini dollar (GUSD) experienced a 14% contraction in supply, while liquity usd (LUSD) faced a 2.5% dip. Despite witnessing yet another month of consistent declines, some substantial and others more modest, USD-pegged stablecoins continue to dominate the trading volume in the cryptocurrency landscape.
To illustrate, of the total .92 billion traded in the crypto world in a 24-hour span, .65 billion is attributed to stablecoins. Among these, tether (USDT) alone accounts for an impressive .83 billion of that volume.
What do you think about this month’s stablecoin action? Share your thoughts and opinions about this subject in the comments section below.