Bitcoin Halving – The Crypto Monetary Policy That Takes Place Every Four Years

Audy Castañeda
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Bitcoin Halving – The Crypto Monetary Policy That Takes Place Every Four Years

The halving affects the issuance of bitcoin, whose supply is limited to 21 million coins. The next halving will be in April 2024 and is usually a bullish event for Bitcoin. The introduction of new coins into circulation is an increasingly slow process

The Bitcoin halving is a key concept that concerns the functioning of the cryptocurrency itself (and that has an impact on the market). It is likely that this word has sounded more strongly lately, since it is an event that occurs every four years and the next halving will take place very soon.

What It Is and When Exactly the Bitcoin Halving Will Happen

Before delving into this concept, it is necessary to know some of the basic fundamentals of bitcoin. Bitcoin is a cash and electronic money system between two peers and the cryptocurrency on which it is based. This means that blockchain technology, with which everything works, allows money to be exchanged between two people immediately (as when someone pays with bills or distributes coins) and electronically. That is, face-to-face and intermediaries in the transmission of cash are eliminated thanks to this technology.

Bitcoin is at the center of everything, as it is the cryptocurrency used in this system (the system itself is also called bitcoin). The supply of this ‘crypto’ is limited and there will only be 21 million bitcoins in total. That is, currency cannot be minted at will, as a central bank could do, since there is a limit. Since Satoshi Nakamoto created all of this in 2008, more than 19.6 million bitcoins have already been issued and are in circulation, as of this writing. The minting of cryptocurrency is a technological, automated and progressive process. It has its own times and rules.

Blockchain is the technology that makes this system work and on which the creation of new bitcoins also depends. The blockchain is a kind of public and unalterable database, in which all transactions are recorded. As its name indicates, it is made up of blocks. These are created little by little, thanks to the miners who participate in their validation. A block is created every ten minutes.

Each block is mined every ten minutes, that does not change. Therefore, 144 blocks are mined every day and 210,000 blocks take 1,458.3 days or 3.99 years to create. Therefore, this event is quadrennial and, this year, it will occur in mid-April. For the next one people will have to wait until 2028.

Why the Bitcoin Halving Is Important

The bitcoin halving controls the amount of cryptocurrencies that can circulate freely in the market. The issuance is slowing down and, therefore, the number of bitcoins that are created and released is decreasing over time.

The halving is conceived as a bullish event for the market, since the supply of bitcoin is limited to 21 million and the 1,335 million that currently remain to be mined will take a long time to wait and their release will be increasingly slower.

The first halving occurred in 2012, when bitcoin was worth around $25. A year later, its price rose to $1,003, a revaluation of more than 8,000%. The halvings of 2016 and 2020 represented, 12 months later, gains of 284% and 423%, according to data from CoinLedger. Their calculations project a 420% rise for bitcoin after this same event occurs in April, which would lead the crypto to exceed $360,000 (taking $69,000 as a starting point).

By Audy Castaneda

Sam Bankman-Fried Sentenced to 25 Years for FTX Bankruptcy. What Will Happen to His Three Closest Collaborators?

Leonardo Perez
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Sam Bankman-Fried Sentenced to 25 Years for FTX Bankruptcy. What Will Happen to His Three Closest Collaborators?

“I know a lot of people feel really disappointed. Everyone built something really beautiful, threw themselves into it, and then I threw it all away. It haunts me every day,” SBF told Judge Kaplan.

It has been almost two years since the cryptocurrency exchange FTX filed for bankruptcy protection, filing for Chapter 11 bankruptcy protection in the US. Finally, on March 28, 2024, the world learned of the sentence that the former

CEO Sam Bankman-Fried. During the trial, Judge Lewis Kaplan received 1,500 documents, of which the defense presented 450.

SBF showed remorse for causing suffering to FTX victims, including financial stress and emotional pain. Furthermore, SBF stated that FTX clients could have had their money refunded, as there were sufficient assets.

Judge Kaplan on the Case

As the presiding judge discussed the fact that SBF collapsed the former second-largest cryptocurrency exchange valued at around $35 billion at the time, tensions remained high on both sides, defense and prosecutors. According to Judge Kaplan, SBF and its attorneys have previously lied under oath even after losing $8 billion of client funds.

“The defendant’s claim that FTX customers and creditors will be paid in full is misleading, logically erroneous and speculative. A thief who takes his loot to Las Vegas and successfully gambles away the stolen money is not entitled to a discount on his sentence by using his Las Vegas winnings to pay back what he stole,” Kaplan said.

What Lies Ahead for SBF

Had the judge followed the law as provided, SBF would have had to face a legal maximum of 110 years in prison. Prosecutors had been pushing for SBF to receive between 40 and 50 years in prison. SBF’s defense lawyers urged the judge to consider the good deeds and hand down less than 6.5 years in prison. However, the judge handed down a 25-year prison sentence for the 32-year-old former crypto leader.

What’s Happening to the Three Musketeers, Gary Wang, Nishad Singh and Caroline Ellison?

These three SBF’s contributors, once riding high on the crypto wave at FTX and Alameda Research, have crashed hard. They have said everything without reservation to the feds, even though this is not their golden ticket to freedom.

Ellison, 29, left the continents and settled at home after the feds raided her house, seized her electronic devices and revealed her secrets. Wang, 31, ran out of the Bahamas and toward Manhattan prosecutors, while Singh, the youngest, 28, hit rock bottom, dealing with the fallout in the Bahamas before he too decided to open up.

Since these three people told everything they knew about Bankman-Fried, everything has been relatively quiet. Singh is back in California, and even got a job in software. Wang has also returned to technology and is keeping a low profile. Meanwhile, Ellison’s whereabouts after the trial are unknown.

The government has their back and prepares a good deal for the judge to consider. It remains to be seen to what extent their cooperation weighs in their favor. Judge Kaplan has the fate of all three in his hands. Whether or not he will show mercy is unknown.

The past of these three people with FTX and Alameda Research is a saga of ambition, betrayal and a spectacular fall from grace. As they await their own sentencing, it becomes clear that none of them belong to the world of cryptocurrencies.

By Leonardo Perez

PEPE Whale Transfers 2.7 Billion Tokens – Will It Be a Cause for Panic?

Audy Castañeda
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PEPE Whale Transfers 2.7 Billion Tokens – Will It Be a Cause for Panic?

Withdrawals from stock exchanges exceeded deposits. The money flow was low and could make it difficult to pump quickly.

On March 27, a whale moved Pepe [PEPE], valued at $21.10 million, from the KuCoin exchange. According to Whale Alert, this value was equivalent to 2.63 trillion tokens. Moments after the transaction, the price of PEPE fell.

Recently, the price of PEPE was $0.000007, which represents an increase of 1.12% in the last few hours. But before that, the value of the token decreased to $0.000073, indicating that memecoin felt the impact of the transfer.

However, on-chain data analyzed by AMBCrypto showed that significant respite. To do this, we verify the inflows and outflows of foreign currency.

According to the information available, the foreign exchange income was 22.11 billion. For the uninitiated, this metric tracks the number of tokens sent from external sources to exchanges.

The Price Will Remain Stable

Foreign exchange outflow measures the number of foreign exchange outflows. More recently, the metric was higher, at 88.30 billion. The difference between the metrics suggests that more participants withdrew PEPE to hold it long-term than those who withdrew cash.

If this remains the case as the weekend approaches, PEPE could stabilize. There is also a possibility that the value of the cryptocurrency could rise towards $0.0000081 in the short term.

Today, Bollinger Bands (BB) showed that volatility around PEP has started to increase. From a bullish perspective, high volatility and buying pressure could send the price to $0.0000085.

However, if the bulls fail to provide much-needed strength, PEPE could fall to $0.0000073. The Relative Strength Index (RSI) indications showed that the reading was about to cross the neutral area.

A further rise in the RSI could validate the bullish bias and suggest that buying momentum has increased. However, the Money Flow Index (MFI) showed that not much capital has yet entered the PEPE.

No More Sales Pressure

With the position, the bulls were not yet armed with adequate liquidity to trigger a significant jump. Therefore, the token price could swing sideways for a while before the expected rally comes into play.

Regarding the social domain, AMBCrypto observed that the metric fell. The decrease in the metric suggests that discussions around PEPE have decreased.

The decline in social dominance is a positive sign when compared to the price action as it could imply that the value was close to its low. Another indicator analyzed was the annual inflation rate.

On March 27, the annual inflation rate jumped, indicating that sellers were “negotiating” with PEPE. However, the metric declined in recent hours, suggesting that selling pressure on the token had reduced.

In the future, PEPE could see an increase soon. However, market participants may need to keep an eye on changes in the market. If sentiment turns bearish, the potential rally could be negated.

PEPE Forecast

According to CryptoPredictions, Pepe started March 2024 at $0.000002733008156 and is expected to end the month at $0.000007591390104. During March, the predicted maximum price of PEPE is $0.000011263033517 and the minimum is $0.000002733008156.

Meanwhile, Pepe is forecast to start April 2024 at $0.000007856456301 and end the month at $0.000011107783832. During April, the predicted maximum price of PEPE is $0.000011439220007 and the minimum is $0.000007778669605.

PEPE price for today (29.03.2024) is forecast to be in the range of $0.000006452681588 – $0.00000948923763. Pepe price is expected to end at $0.000007591390104 today.

By Audy Castaneda

Bitcoin Bull Flag Could Predict 10% Rise to $77,000, Analyst Explains

Leonardo Perez
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Bitcoin Bull Flag Could Predict 10% Rise to $77,000, Analyst Explains

One analyst has explained that a breakout of a bullish flag pattern could lead Bitcoin to a new all-time high of $77,000.

On X, analyst Ali talked about a bullish flag that recently formed in the 4-hour price of Bitcoin. The bullish flag here refers to a pattern in technical analysis that, as the name implies, looks like a flag on a flagpole.

In this pattern, a strong uptrend is followed by a period of downward consolidation. The uptrend offsets the pole, while the consolidation period acts as a flag. When the price gets trapped inside the flag, it tends to find resistance at its upper line, so highs are likely to form there. Likewise, the bottom line can act as support, thus making it easier for bottoms to take shape.

The bullish flag is generally considered a continuation pattern, meaning that the predominant trend (i.e. the flag trend) will continue once the consolidation period ends. This happens when a breakout occurs above the resistance line. The uptrend that arises from such a breakout may have the same height as the pole.

However, if the asset falls below the support line, the pattern could be considered invalidated. Like the bullish flag, there is also the bearish flag pattern, which works similarly except for the fact that the pole in this case corresponds to a bearish trend, while the flag is generally a consolidation channel with an angle upwards.

Like the bullish flag, this formation can be followed by a continuation of the prevailing downtrend.

Bitcoin Has Been Forming a Bullish Flag Pattern Recently

Ali shared a chart on X, in which the 4-hour Bitcoin price appears to have been consolidating within this bullish flag over the past few days. It is also evident that, in the last day, BTC has been rising above the resistance line of the pattern. This could mean that the cryptocurrency is preparing a breakout from this formation.

Naturally, the asset would have to show more momentum before the breakout can be confirmed. “If BTC stays above $70,000, we could see a nearly 10% rise to a new all-time high of $77,000!” Ali says. The analyst has chosen this objective because said swing would be the same length as the staff that preceded this flag.

BTC Price

So far, Bitcoin has headed in a direction that would add more credibility to the breakout as its price has broken through the $71,300 level. With this increase, BTC investors would enjoy gains of over 7% over the past week.

BTC Under Pressure, Will Prices Recover?

Recently, Bitcoin has struggled to rise, watching the price action on the daily chart. The currency remains below all-time highs of $73,800. Although the bulls shook off selling pressure over the weekend, pushing strongly above resistance levels, the follow-through has not been impressive.

Some analysts speculate that the coin could float as high as $100,000 in 2024, especially after the network halved its rewards for miners in April 2024. Despite the recent sell-off that pushed prices to around $62,000, the overall market sentiment remains bullish. The CoinStats Fear and Greed Index, an indicator of investor sentiment, still shows “Extreme Greed” at 80.

Additionally, interest has returned after days of outflows from spot Bitcoin exchange-traded funds (ETFs). As of March 27, data from Lookonchain shows that Fidelity added 4,001 BTC. In total, and taking into account the GBTC exit, all Bitcoin ETF spot issuers added 3,469 BTC.

By Leonardo Perez

Indonesia: Crypto Products Must Pass Regulatory Sandbox After New Rule

Audy Castañeda
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Indonesia: Crypto Products Must Pass Regulatory Sandbox After New Rule

The standard aims to “increase the development of technological innovation in the financial sector” and safeguard users from losses and “fraudulent investments.”

Indonesia’s regulatory agency has issued a new rule that could potentially affect crypto assets in the country. According to local reports, companies must introduce their products into the Regulatory Sandbox of the Financial Services Authority (OJK).

Cryptoassets Will Be Tested in a Regulatory Test Environment

Local reports from media outlet DetikFinance reported on the new regulatory rule issued by the OJK this week. The standard aims to “increase the development of technological innovation in the financial sector” and safeguard users from losses and “fraudulent investments.”

OJK’s new measure requires financial services institutions (FIS) to introduce new products and services into Indonesia’s regulatory sandbox. The regulation reportedly includes banking, insurance, and cryptocurrency companies that “ensure they are suitable for consumer use.” Cryptocurrency companies must be evaluated in the regulatory sandbox before receiving authorization to operate in Indonesia.

Additionally, crypto products and new business models developed by entities that are already licensed by the OJK will also have to go through the sandbox. The chief executive of the Financial Sector Technological Innovation Supervisor, Digital Financial Assets and Crypto Assets, Hasan Fawzi, said the following:

“I believe this is our spirit at OJK, especially in consumer protection and education. We hope that all our regulatory mechanisms are present and have a direct impact on the prevention of fraudulent investments.”

If companies do not comply with the new requirement and continue to operate, they will be considered unlicensed and the product illegal. The regulatory sandbox is a testing mechanism to “assess the reliability of business processes, business models and financial instruments.” Its objective is to ensure that innovation and development of financial technologies are carried out responsibly and with adequate risk management.

Regulatory Landscape in Indonesia

A regulatory sandbox serves as a testing and innovation development space to evaluate products and ensure they are safe and reliable. It provides a sandboxed environment for testing that helps improve security and responsible management in the financial sector.

This regulatory sandbox requirement is a new development for cryptoasset regulations in the country. Furthermore, the supervision and regulation of these assets will be transferred from the Commodity Futures Trading Regulatory Agency (Bappebti) to the OJK starting in 2025. Regarding this matter, Fawzi pointed out the following:

“Now, this sandbox is a good tool for organizers and digital finance professionals of crypto assets to get familiar, they will get used to how it is regulated by the OJK, on the other hand, we will introduce regulation and supervision in the OJK.”

Indonesia has received criticism for its regulatory measures in the past. The country’s cautious approach to cryptocurrencies prohibits their use as a direct payment method for goods and services.

Furthermore, the double taxation of cryptocurrencies is believed to have potentially hampered the growth of the market in the country. As reported by a media outlet, local exchanges expressed concerns about high taxes possibly discouraging user activity on authorized exchanges.

However, Indonesia has one of the highest adoption rates in the world despite its regulatory landscape. Bappebti, the country’s regulator, reported that there were more than 18.51 million investors throughout 2023, which increased by more than 9.8% in February 2024. According to data from Chainalysis, the Asian country ranks seventh in the 2023 Global Cryptocurrency Adoption Index.

By Audy Castaneda

Bitcoin ETF Success in US Sparks Debate Among Japan Crypto Exchanges

Leonardo Perez
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Bitcoin ETF Success in US Sparks Debate Among Japan Crypto Exchanges

According to Bloomberg, the recent success of Bitcoin ETFs in the United States has surpassed Japanese cryptocurrency exchanges, confronting them with a perplexing dilemma.

The United States’ success with Bitcoin ETFs challenges Japan’s stricter regulations on cryptocurrency investment products. While the surge in American investment underscores the growing widespread adoption of cryptocurrencies, at the same time it reveals the limitations of Japan’s current regulatory landscape.

The launch of Bitcoin Spot ETFs on January 11, 2024 marked a pivotal moment for cryptocurrencies. These exchange-traded funds directly track the price of Bitcoin. Capital inflows into these ETFs have exceeded $11.7 billion since their inception, reflecting immense demand. Even leveraged Bitcoin ETFs, such as VolatilityShares’ 2X Bitcoin Strategy ETF (BITX), which offers twice the daily return of short-term Bitcoin futures contracts, attracted significant investment.

This milestone underlines the growing widespread acceptance of digital assets. BITX has gained immense popularity among South Korean investors, attracting a staggering net inflow of $122 million in March alone. While these ETFs offer potential rewards, their high volatility comes with significant risk.

“Like most leveraged ETFs, BITX is designed for aggressive traders who are comfortable with high levels of volatility,” said Sumit Roy, senior analyst at ETF.com.

Despite the inherent risks, BITX has generated significant interest, attracting a net inflow of $834 million in March alone, trailing only industry giants Fidelity and BlackRock’s Bitcoin spot ETFs. This surge in popularity reflects growing investor demand for diversified exposure to the cryptocurrency market.

South Korea Adopts BITX as Alternative to Bitcoin ETF

South Korea is the prime example for its widespread adoption of cryptocurrencies and its appetite for growing demand for ETFs. As Bitcoin spot ETFs remain substitutes within the country, Korean investors have embraced BITX as a viable substitute.

Statistics from the Korea Securities Depository indicate that BITX has become the fifth most purchased foreign security in South Korea during the current month. It is just behind Tesla but more popular than Taiwan Semiconductor Manufacturing Company (TSMC).

According to Subeen Shim, a digital asset analyst at Kiwoom Securities in Seoul, the rise in popularity of Bitcoin futures is due to the absence of domestic spot ETFs and the recent rally in Bitcoin valuation. This highlights the crucial role of these instruments in meeting investor demands, especially in regions with strict regulatory frameworks.

Japanese Stock Exchanges Face Regulatory Obstacles

Japan’s financial regulator has taken a cautious stance toward Bitcoin-focused investment products. While the US market encompasses a wide range of Bitcoin investment options, Japanese crypto exchanges face limitations.

Local regulations still deliberate on the approval process; in contrast, Japanese investors are left without access to these potentially rewarding offerings. The contrasting regulatory stances of the US and Japan highlight the current tension between fostering innovation and ensuring consumer protection within the crypto domain.

The United States allows more investment options, but less experienced investors could face big price swings. Japan has stricter rules, which provides a more stable space, but can slow market growth and limit investors’ options.

While Bitcoin ETFs using leverage strategies face uncertainty regarding longevity, their initial success in the United States has surely reshaped the crypto investing terrain. As countries like Japan push for regulatory positions, global crypto markets will likely face greater innovation and rivalry within ETF offerings.

By Leonardo Perez

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