Bitcoin Holders’ Big Move: Number of Whale Wallets Reaches Highest Number in 15 Months

Audy Castañeda
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Bitcoin Holders’ Big Move: Number of Whale Wallets Reaches Highest Number in 15 Months

The holding pattern indicates that smaller whales have been expanding their holdings to join the next level of holders.

Bitcoin, the largest crypto asset, is currently stagnant from the point of view of many investors considering current market factors. The cryptocurrency mostly traded between $41,000 and $45,500 last week after recovering from a brief drop below $40,000 on January 23.

Although the price action has been disappointing, on-chain data indicates that large holders have been adding more to their wallets, raising the total number of wallets to the highest level in 15 months.

Big Holders Accumulate

It would appear that Bitcoin holders have been taking steps to boost the cryptocurrency, as indicated by the growing number of whale wallets. According to on-chain analytics platform Santiment, the number of Bitcoin addresses containing between 1,000 and 10,000 BTC saw an increase of 47 more wallets, representing a growth of 2.5%, in six days. Consequently, the number of addresses at this level reached 1,958 on February 1, its highest point since November 2022.

On February 3, Santiment posted the following on X:

“Bitcoin is ranging between $41K and $44K, but whale wallets are moving big this week:

Number of 1K-10K $BTC Wallets: 1,958 on Feb. 1st (Most since November, 2022)

Number of 100-1K $BTC Wallets: 13,735 on Feb. 1st (Least since November, 2022).”

Santiment data showed the decline of wallet addresses at the bottom level. That is, those who own between 100 and 1,000 BTC. The number of wallets in this range decreased by 154 addresses during the same time period, representing a decrease of 1.1%. Consequently, the number of addresses at this level fell to 13,735 on February 1, its lowest point since November 2022.

What Does This Say About Bitcoin?

A significant number of large holders’ accumulation points to continued faith in cryptocurrencies despite the current consolidation, but whale accumulation is just one of many market factors influencing the price of cryptocurrencies.

Bitcoin’s price trajectory may seem confusing right now, but the macroeconomic outlook points to a positive move on the fundamental side of things. One of them is the recent capital flows of $1.7 billion into Bitcoin spot ETFs in the last 14 days.

According to crypto analyst Michaël van de Poppe, the current Bitcoin consolidation could continue in the coming months before the next halving. The analyst noted resistance between $48,000 and $50,000, and another correction towards $36,000 and $38,000. As he posted on X:

“My general theory is that Bitcoin is consolidating in the coming months.

Pre-Halving a final run towards resistance at $48-50K, after that another correction to $36-38K and from there Altcoins to continue outperforming Bitcoin.”

From a different perspective, Justin Bennett, another popular crypto analyst on social media, predicted a bearish Bitcoin in the near future. According to him, Tether’s dominance chart suggests a further decline in BTC to around $30,000. This price range matches analyst PlanB’s absolute minimum Bitcoin price of $31,000.

According to CryptoPredictions, Bitcoin started in February 2024 at $42,583,264 and is predicted to end the month at $33,056,261. During February, the maximum forecasted BTC price is $46,561.556 and the minimum price is $31,661.858.

The BTC Price is forecast for today (05.02.2024) to be in the $36,729.179 – $54,013.498 price range. Bitcoin is predicted to end today at $43,210,799.

By Audy Castaneda

PoR Should Be a Standard on Cryptocurrency Exchanges: Gate.io CEO Lin Han

Leonardo Perez
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PoR Should Be a Standard on Cryptocurrency Exchanges: Gate.io CEO Lin Han

Gate.io was one of the first cryptocurrency exchanges to implement the Proof of Reserves method. The exchange’s current focus includes regularly reporting over 170 assets and using zk-SNARKs. Dr. Han believes that audited Proof of Reserves will be a basic requirement for all trading platforms.

In 2024, the cryptocurrency space is full of significant developments: governments around the world have begun to recognize cryptocurrencies as an asset class, TradFi giants have entered the big game, and the Bitcoin halving suggests it may There is a bull market on the horizon.

With increasing market liquidity and people’s tendency to invest their money more boldly, it is essential to focus on asset security. BeInCrypto sat down with Gate.io founder and CEO Dr. Lin Han to talk about the importance of Proof-Of-Reserve (PoR), the need for transparency in the industry, and the exchange’s approach to keeping user funds secure.

Proof-Of-Reserve (PoR) as New Standard on Exchanges

Gate.io is not a newcomer to the concept of Proof-Of-Reserve. In 2020, it was one of the first exchanges to conduct PoR using the now-standard method of combining the Merkle Tree with a third-party auditing company and independent user validation.

Two years later, the platform made its implementation open source following the collapse of FTX. In 2023, the method was updated to include regular reporting on more than 170 assets and use ZK-SNARK to improve security and privacy.

Although 100% PoR has become a benchmark for most centralized exchanges (CEX), it still needs to be easier for the average user to understand and complete a Merkle Tree check. Dr. Han simplifies the verification process, likening it to a collaborative game in which millions of users identify flaws in data.

The conversation turns to the broader implications of the PoR as an industry standard. Han predicts that its integration into traditional financial markets will foster greater transparency and accountability, setting a new benchmark. However, he noted that this success will largely depend on the crypto community, from data aggregators and media outlets to influencers and average users.

Gate.io: Balance between Efficiency and Security

Gate.io’s CEO delves into the debate of centralized exchanges versus decentralized platforms, highlighting the efficiency and ease of use of CEX. Despite the appeal of decentralized options, it underlines the current reliance on CEXs due to low transaction costs and ease of use.

However, it foresees a gradual shift towards decentralized platforms driven by advances in infrastructure and UX. The CEO points out once again that while users rely heavily on CEX, it is important that they pay close attention to the availability of PoR and audits. He says this is a good move to show that the funds are safe, at least for the time being.

Secure Environment for All Gate.io Users

As the CEO explores the possibility of addressing institutional needs, he underscores Gate.io’s commitment to maintaining its standards. Dr. Han highlights the strict due diligence process carried out by institutional clients and the importance of meeting their security and compliance requirements.

Dr. Han also points out that Gate.io spent many years and resources applying for licenses. It paid off as the exchange’s new clients from traditional finance cannot trade on unregulated platforms. Now, it is one of the leading cryptocurrency exchanges with licenses and approvals in different jurisdictions. Gate Group already has licenses or approvals in Malta, Lithuania, Italy, Dubai, Gibraltar, among other countries.

With an eye on innovation and user-centric solutions, Gate.io charts the path to growth and continued success in the dynamic digital asset sector

By Leonardo Perez

BlackRock and ProShares Surpass Grayscale GBTC Volumes

Audy Castañeda
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BlackRock and ProShares Surpass Grayscale GBTC Volumes

The rise of BlackRock and ProShares: The end of Grayscale’s Bitcoin domination, or just a bad run?

James Seyffart, ETF analyst at Bloomberg Intelligence, highlighted on his social networks that BlackRock’s Bitcoin Spot ETF (IBIT) has been the first to surpass Grayscale Investments’ Grayscale Bitcoin Trust or GBTC, in terms of trading volume. Likewise, ProShares’ BITO, on Thursday becoming the first Bitcoin exchange-traded funds (ETFs) to cross GBTC’s trading volume.

Mainly, IBIT ended Thursday with $306 million in completed trades. While BITO negotiated $298 million. GBTC recorded $291 million in transactions.

Grayscale is basically a digital asset management company that offers the Grayscale Bitcoin Trust (GBTC), an investment fund that allows investors to gain exposure to the price of Bitcoin without having to directly own the cryptocurrency.

In January, Grayscale led trading volumes among all Bitcoin ETFs. This means that there were a significant number of transactions and operations related to GBTC compared to other similar funds that track the price of Bitcoin.

Looking at selling pressure in recent weeks, some GBTC investors have been reported to have taken profits and switched to other providers. This means that some investors who previously held GBTC have decided to sell their holdings to make profits and have chosen to invest in other Bitcoin-related financial products offered by different providers. This investor rotation may have contributed to the selling pressure experienced in the market.

GBTC Sales Decline Continues

GBTC’s dominance in spot Bitcoin ETFs was due to strong trust outflows from the first day of trading. This has largely been attributed to investors’ ability to redeem their investment once the product was converted to a spot ETF, something they could not do before.

Additionally, Grayscale’s high fees have caused it to lose more than $5.8 billion in assets since January 11, according to BitMEX Research.

The higher-fee GBTC product has lost more than $5.8 billion in assets in the period, compared with combined inflows of $7.2 billion for the nine newborn ETFs, according to BitMEX Research.

However, this dominance has begun to decline in recent days. Previously, GBTC was sending an average of $700 million in BTC to the Coinbase cryptocurrency exchange, but data from BitMEX Research shows this has totaled less than $300 million since January 26.

As for BTC, there were outflows of 24,050 BTC from GBTC, reducing to 4,461 BTC on January 30 and 4,433 on February 2.

Why BlackRock and ProShares Lead the Way against Grayscale

Since January 11, GBTC had dominated the Bitcoin spot ETF market in terms of daily volumes. Currently, this dominance came to an end on February 1, when BlackRock and ProShares became the first of nine ETFs to surpass GBTC’s trading volume.

In this regard, James Seyffart said the following:

“Still, some after-hours trading left but looks like BlackRock’s $IBIT is the first ETF to trade more than Grayscale’s $GBTC in a single day. Total trading today was kind of a dud though at $924 million — first day below $1 billion in dollar volume for the group since launch.”

On Friday afternoon GBTC regained the leading position on the chart, recording a trading volume of $338 million. Currently, GBTC tops the chart with $377.34 million in trading volume. Followed by IBIT with $254.04 million.

Finally, crypto markets are highly dynamic and can be subject to rapid changes and fluctuations. Therefore, it is important to conduct additional research and consider multiple sources of information before making investment decisions.

By Audy Castaneda

Tracking Satoshi Nakamoto: Could Bitcoin Creator Be Linked to the Dark Web?

Leonardo Perez
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Tracking Satoshi Nakamoto: Could Bitcoin Creator Be Linked to the Dark Web?

The possibility that Ross Ulbricht is actually Satoshi Nakamoto has resurfaced on the forums. Was Bitcoin secretly created for illicit activities? What are the opinions for and against this hypothesis?

Was Satoshi Nakamoto a criminal who created Bitcoin to cover up possible irregularities? Some coincidences raise doubts.

Ross William Ulbricht was born in 1984 in Texas. Little is known about his background except that he earned the equivalent of a bachelor’s degree in 2002. Following this, he attended the University of Texas at Dallas, where he earned a bachelor’s degree in Physics. He then moved to Pennsylvania to study crystallography. It was also during this time that he learned about libertarian ideas and the theories of counter economics.

Who is Ross Ulbricht?

Once he graduated, Ulbricht attempted a career as a dealer and then in video games before reselling secondhand books. His activity then gave him the idea of ​​creating a website where users could buy objects anonymously and without leaving a trace.

In 2011, under the pseudonym “Dread Pirate Roberts”, he put his idea into practice by founding Silk Road, an online trading platform accessible only through the Tor network, which offers relative anonymity to users and uses Bitcoin as a means of payment. pay.

Between sales of clothing and other artwork, Silk Road quickly became a hotspot for drug trafficking, hitmen, and many other illicit activities.

Thus, the platform has earned bad reputation, especially on the Internet, and has alerted the US authorities. Its creator would have been in turn a trafficker, sponsor of murders or forger, acquiring the status of a man to kill.

After a long search and a message on a forum that allowed him to find him, Ross Ulbricht was arrested by US federal authorities in 2013. Silk Road was subsequently closed and its creator sentenced to life in prison. His charges continued to multiply as he appealed his sentence several times.

Despite his imprisonment, Ulbricht became a well-known figure in the crypto community thanks to the scandal caused by the confiscation of his numerous BTC by the US government and then its liquidation.

What He Says About Satoshi Nakamoto

There is no written or filmed testimony of Ross Ulbricht speaking about Satoshi Nakamoto. Far from being interested in the identity of the latter, Ulbricht seems to focus solely on the advantages that Bitcoin brings.

In a text written by him in 2022 explaining his motivations, he explains having chosen BTC as a means of payment mainly because it guaranteed anonymity to its users. However, he highly values ​​the project, stating that the cryptocurrency was also solid and reliable.

Is Ross Ulbricht the Creator of Bitcoin? What the Experts Say

Ross Ulbricht seems like a simple Bitcoin fan, but two experts believe he is much more than that. In 2013, two computer scientists Dorit Ron and Adi Shamir caused a stir by publishing a report claiming that Ulbricht was possibly Satoshi Nakamoto.

To justify their claims, the authors relied on blockchain although they failed to irrefutably prove that the sending wallet actually belonged to the creator of Bitcoin and retracted their statement.

Despite this, Satoshi Nakamoto’s disappearance coincides with Ross Ulbricht’s imprisonment. Nakamoto’s wallet has remained locked since 2014, when Ulbricht was imprisoned. Therefore, the two men would be the same person and Silk Road would have only been a project that served to democratize Bitcoin.

By Leonardo Perez

SEC Sues Bitcoin Academy Founder for Fraud

Audy Castañeda
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SEC Sues Bitcoin Academy Founder for Fraud

The United States Securities and Exchange Commission (SEC) sues the founder of Bitcoin Academy for $1.2 million in fraud.

In a new foray into the world of cryptocurrencies, the United States SEC announced a lawsuit against the founder of Bitcoin Academy. The agency accuses Brian Sewell of running an online fraudulent crypto scheme that cost students $1.2 million.

Gurbir S. Grewal, director of the SEC’s Enforcement Division, highlighted the egregious nature of Sewell’s conduct, highlighting lies orchestrated to defraud students and misuse of trendy technology terms to mislead investors. Both Sewell and the ABA have agreed to resolve the charges without admitting or denying the SEC’s allegations, accepting injunctive relief.

According to the agency, Sewell encouraged hundreds of his online students to invest in the Rockwell Fund, a hedge fund he promised to launch. The defendant allegedly told his victims that the fund would use advanced technologies such as artificial intelligence. Furthermore, it would rely on crypto asset trading strategies to generate returns for investors.

In any case, the lawsuit alleges that before moving from Utah to Puerto Rico, Sewell received $1.2 million toward the promised fund. However, he never launched the fund or implemented the trading strategies for which he collected the funds from the 15 students. The alleged scammer later claimed that the money had been stolen from their wallets by hackers.

The SEC’s investigation was conducted by Matthew S. Raalf and Jacquelyn D. King with assistance from Gregory Bockin and Karen M. Klotz, all of the Philadelphia Regional Office. It was supervised by Assunta Vivolo, Scott A. Thompson, and Nicholas P. Grippo.

Bitcoin Academy Founder in Legal Trouble

The crux of the agency’s lawsuit against the Bitcoin Academy founder is that he deliberately lied to steal from the 15 people. The officials in charge of drafting the charges explain that the alleged own artificial intelligence and machine learning models never existed.

“We allege that Sewell defrauded students in his online American Bitcoin Academy of over a million dollars through a series of lies about investment opportunities in his purported crypto hedge fund. Among other things, he falsely claimed that his investment strategies would be guided by his own ‘artificial intelligence’ and ‘machine learning’ technology which, like the fund itself, never existed,” said Gurbir S. Grewal, director of the SEC Enforcement Division.

The SEC’s complaint accuses the businessman of violating the anti-fraud provisions of the federal securities laws. Meanwhile, the defendants agreed to resolve the charges and have consented to precautionary measures without admitting or denying the allegations in the complaint.

“The defendant company, Rockwell Capital Management, also agreed to pay disgorgement and prejudgment interest totaling $1,602,089 and defendant Sewell agreed to a civil penalty of $223,229. The settlement is subject to court approval,” noted the agency. With the latter, it seems clear that the founder of Bitcoin Academy has little chance of getting his way.

The SEC cautions investors to check the background of anyone selling them an investment and to always independently research investment opportunities. In this sense, the SEC has issued Investor Alerts on investment frauds touting new technologies.

The story of Brian Sewell and the ABA highlights the critical need for caution and verification when exploring investments in the cryptocurrency market. The SEC continues to focus on protecting investors and enforcing financial laws in the crypto space, underscoring the importance of transparency and due diligence in all transactions.

By Audy Castaneda

JPMorgan Concerned that USDT Approaches $100,000 Million in Circulation

Leonardo Perez
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JPMorgan Concerned that USDT Approaches $100,000 Million in Circulation

JPMorgan Chase & Co. has expressed concern about Tether Holdings’ USDT approaching $100 billion in circulation. The bank’s report suggests that Tether’s “lack of regulatory compliance and transparency” could pose a risk to the entire crypto ecosystem. The entry of traditional financial entities such as JPMorgan into the stablecoin market could drastically alter the competitive landscape.

JPMorgan Chase & Co. recently expressed concern about the growing market share of Tether Holdings’ USDT, the largest stablecoin, as it approaches the unprecedented $100 billion in circulation.

This development, while marking an important milestone for Tether, raises critical questions about the broader implications for the cryptocurrency market.

Why JPMorgan Attacked USDT

The growing dominance of USDT and Tether’s alleged “lack of regulatory compliance and transparency” pose a risk. This could affect the entire cryptocurrency ecosystem, according to a JPMorgan report.

Stablecoins like USDT are crucial in the world of cryptocurrencies. They supposedly provide a stable haven for traders and an easy way to move between digital assets. Tether’s growing market share over the past two years has cemented its leadership.

However, it also brings to light the regulatory obstacles facing the sector. Despite the scrutiny, Tether CEO Paolo Ardoino maintains a positive outlook.

“I’m happy to read that JPMorgan recognizes the importance of Tether and the stablecoin technology created by our company, but I find the talk of concentration coming from JPMorgan, the largest bank in the world, a bit hypocritical,” he commented.

He argues that Tether’s market leadership is not detrimental to the sector, but rather essential to the markets that rely heavily on it:

“Tether’s market dominance may be a ‘negative’ for competitors, including those in the banking sector, who want similar success, but it has never been a negative for the markets that need us most. We have always worked closely with global regulators to inform them about the technology and guide them on how they should think about it,” Ardoino explains.

“The success of Tether USDT is driven by its financial reliability, strong reserves and its commitment to emerging markets and developing countries, where entire communities are using USDT as a lifeline to defend their families from high inflation and devaluation of its national currency,” further comments Paolo Ardoino.

The imminent regulatory changes in the United States and Europe represent a significant change in the stablecoin space. The US is studying the Stablecoin Payment Clarity Act, while the European Union is about to partially implement the Markets in Crypto Assets Regulation (MiCA) by mid-2024.

These regulatory developments underscore the growing attention paid to stablecoins and the need for robust compliance frameworks.

JPMorgan Attacking the Stablecoin Giant

The entry of traditional financial institutions like JPMorgan into the stablecoin market could reshape the dynamics of the sector. With their established infrastructure, compliance expertise, and trust built over decades, these banking giants pose a formidable challenge to existing players like Tether.

The possibility of a “JPMorgan Coin” plaguing current stablecoins could drastically alter the competitive landscape.

Arthur Hayes, co-founder of cryptocurrency exchange BitMEX, captures this sentiment, suggesting that support for stablecoin initiatives from figures like Janet Yellen could encourage traditional banks to launch their own stablecoins, directly threatening Tether’s presence in the market.

Despite the concerns expressed, Tether recently announced record profits of $2.9 billion in the latest quarter, backed by a significant increase in reserves backing its USDT tokens.

By Leonardo Perez

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