ARK Invest Suggests 19.4% Bitcoin Allocation Plan for Optimal Returns

Audy Castañeda
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ARK Invest Suggests 19.4% Bitcoin Allocation Plan for Optimal Returns

ARK Invest’s report highlights that investors with a long-term perspective have been the biggest beneficiaries of BTC’s growth despite its “notorious” short-term volatility.

In its latest annual research report titled ‘Big Ideas 2024’, ARK Invest, a renowned investment management firm, made a compelling case for including Bitcoin in institutional portfolios. Based on a thorough analysis of the cryptocurrency’s performance, the report recommends a significant allocation of “19.4%” to Bitcoin.

This figure is not arbitrary, but is supported by a thorough evaluation of Bitcoin’s historical performance compared to major traditional investment assets.

ARK Invest Dive into Bitcoin’s Long-Term Success and Value

Over seven years, Bitcoin has demonstrated an annualized return of 44%, clearly outperforming other major assets, which averaged just 5.7%, according to the investment management firm.

ARK Invest’s report delves deeper into the nuances of Bitcoin’s investment potential, highlighting its performance since its inception. This includes a closer look at its trajectory over the past three years, marked by significant technological advances and greater widespread acceptance.

The report highlights that investors with a long-term perspective have been the biggest beneficiaries of BTC’s growth despite its “notorious” short-term volatility. According to ARK, the critical question for investors should not be the timing of their BTC investment but the duration for which they hold it.

Historical data collected by Ark reveals that a holding period of at least five years has always generated profits, regardless of the time of purchase. The investment management firm noted:

Instead of “when,” the better question is “for how long?” Historically, investors who bought and held bitcoin for at least five years made profits, no matter when they made their purchases.

ARK’s report also goes beyond mere investment recommendations. Hypothesizes the potential impact of institutional investments in BTC globally, considering the $250 trillion in global investable assets.

The implications of this group’s modest investment in BTC are quite intriguing. For example, according to Ark Invest, if just 1% of these global assets were allocated to BTC, its price could skyrocket to $120,000.

Going a step further, if institutions were to align with ARK’s suggested allocation of 19.4%, BTC valuation could reach approximately $2.3 million per BTC. This substantial allocation recommendation reflects a significant change from previous years.

ARK analysis further indicates that the “optimal Bitcoin allocation” has increased since 2015. Initially, an allocation of just 0.5% was considered ideal for maximizing risk-adjusted returns over a five-year horizon. This figure has progressively increased, reaching an average of 4.8% over time and peaking at 19.4% in 2023 alone.

Bitcoin Price Remains Supported

Bitcoin price formed a base above the $42,000 level and began a steady rise. BTC was able to break through the $42,200 and $42,500 resistance levels.

There was a move above the 50% Fibonacci retracement level of the descending wave from the high of $43,740 to the low of $41,888. The bulls were able to push the price above the $43,000 resistance. A short-term ascending channel is now forming with support near $42,950 on the hourly chart of the BTC/USD pair.

Bitcoin is now trading above $42,800 and the 100 hourly simple moving average. The immediate resistance is near the $43,300 level. It is near the 76.4% Fibonacci retracement level of the descending wave from the high of $43,740 to the low of $41,888.

The next key resistance could be $43,750, above which the price could start a decent rise. The next stop for the bulls may be the $44,000 level.

By Audy Castaneda

British Police Seize Bitcoin Worth $1.7 Billion

Leonardo Perez
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British Police Seize Bitcoin Worth $1.7 Billion

The UK authority seized $1.7 billion in Bitcoin from a fraud operated in China between 2014 and 2017.

This Tuesday, in a court hearing, it was learned that British police seized approximately $1.7 billion in Bitcoin. The money would have been stolen between 2014 and 2017 in a scandalous fraud in the People’s Republic of China.

The case can be said to become one of the largest seizures of cryptocurrency by law enforcement. The details of the case became known during the trial of Jian Wen, accused of laundering money in Bitcoin for her former boss. The latter would be an alleged fugitive from the Chinese authorities, who are looking for her for fraud.

In 2018, UK authorities seized 4 devices in which around 61,000 BTC were stored, Bloomberg reports. These would have been found in the residence shared by Wen and the now fugitive and main person responsible for the fraud, Yadi Zhang. In 2021, all BTC recovery by authorities was completed. The amount was equivalent to $1.7 billion dollars.

During Tuesday’s hearing, it was also learned that Zhang’s real name is Zhimin Qian. The latter allegedly stole $6.35 billion from its clients in China in a fraudulent scheme before arriving in London under a false identity. According to prosecutors, Qian fled the United Kingdom and his whereabouts are unknown.

How the Bitcoin Seized by the UK Government Was Laundered

The amount of Bitcoin seized by the British police was in the process of being laundered by Wen. Although she is not directly accused of the crime of fraud, she is charged with money laundering. It should be noted that Wen played the role of Qian’s “face” or figurehead.

As demonstrated by the prosecution, Wen converted part of the scammer’s bitcoins into money, jewelry and real estate. Gillian Jones KC, a prosecutor’s attorney, said that Wen tried to buy a home for $15.2 million in 2018 through the firm Mishcon de Reya. However, the deal failed since the origin of the BTC could not be proven.

By October of that same year, authorities froze Wen’s money stored in his client account at Mishcon. From there the pieces began to fit together.

Wen Found Not Guilty

Wen has pleaded not guilty to the charges against her and considers herself Qian’s “caregiver.” She adds that she did not act in bad faith, but was convinced that the scammer’s funds came from a legal business. Despite this, Jones believes that Wen was paid to keep Qian in the background.

Now that it is known that the British police seized a large amount of money in Bitcoin, the trial’s outcome is awaited.

Other Countries’ Similar Events

This confiscation in the United Kingdom joins other similar actions that governments around the world are taking. A situation that leads them to hold bitcoin, as the cryptocurrencies in their possession rise or fall in price.

It was recently learned that the police in Germany confiscated more than 50,000 bitcoins. This, during the investigation process of criminal activity linked to a website. Now, they do not know what fate will be given to the crypto assets that remain in their hands.

In this regard, the United States already has a strategy. They use the sale or auction of the seized bitcoins. As reported by CriptoNoticias, the Department of Justice is already preparing for the next sale of about 3,000 BTC. What is not very clear is the use made of the money obtained from these settlements.

Everything indicates that the confiscation of cryptocurrencies has become a trend that may continue to advance in the coming years.

By Leonardo Perez

Celsius Network Returns Billions of Dollars to Creditors

Audy Castañeda
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Celsius Network Returns Billions of Dollars to Creditors

Celsius Network concludes 18-month bankruptcy process and begins distribution to creditors. A new company, Ionic Digital, provides partial ownership and mining operations of Bitcoin to Celsius creditors. More than $3 billion in cryptocurrency and fiat distributed to Celsius creditors as part of the reorganization plan.

Defunct cryptocurrency lending platform Celsius Network has declared that it has “emerged” from bankruptcy by completing payments required under its confirmed reorganization plan.

The process, which has lasted 18 months, began after the platform filed for bankruptcy in July 2022.

Creditors voted in favor of a plan that provides for the return of more than $2 billion in crypto assets to clients. According to court documents in the Celsius case, 95% of the US company’s creditors approved the reorganization plan created by the company’s bankruptcy team.

For it to be implemented, a judge’s approval is required. It will be at a hearing in the Bankruptcy Court of the Southern District of New York where the authority allows the return of user funds. According to Celsius, confirmation hearings on this case began on Monday, October 2, 2023.

Celsius Network Will Begin Distribution to Creditors

A recent statement outlined the distribution of more than $3 billion to the cryptocurrency lending platform’s creditors. Additionally, the announcement included the launch of a new company, in which Celsius creditors will have partial ownership.

“The Plan includes the distribution of more than $3 billion in cryptocurrency and fiat to Celsius’ creditors, and the creation of a new Bitcoin mining company – Ionic Digital, Inc. – that will be owned by Celsius’ creditors and whose “Mining operations will be managed by Hut 8 Corp.”

The statement notes that the proceeds from the Bitcoin mining company will be used to repay outstanding payments to creditors. In its initial bankruptcy filing, Celsius owed more than $4.7 billion to more than 100,000 creditors:

“Ionic Digital was created as a new Bitcoin mining company that will continue to deliver recoveries to creditors. The Ionic Digital stock is expected to be publicly traded once the requisite approvals are received.”

Celsius Network: Speculation on a Possible Second Distribution

This meets the expected deadline that had been set, which required all Celsius account holders with more than $100,000 in liabilities to settle before January 31. Most recently, the price of the Celsius Network token, CEL, stands at just $0.17.

During a Spaces event at X, crypto influencers Tiffany Fong and Louis Origny got into a debate over the possibility of a second distribution.

Origny holds the belief that a second distribution is unlikely. However, it emphasizes Celsius’ claims against Alameda Research and Three Arrows Capital (3AC) as potential sources of additional distributions.

However, Origny highlights a discrepancy of $800 million. This is due to an additional liability of $700 million, and he argues that there are no footnotes or clarifications about the origin of this amount.

What Does the Celsius Plan Establish?

Celsius’s reorganization plan, presented as a “quick and viable path” to exit bankruptcy and ensure the greatest possible recovery of funds for clients, contemplates the creation of a new cryptocurrency company.

The company will be called NewCo and will be controlled by Fahrenheit Group, a consulting firm. The cryptocurrency firm “will be customer-owned and focused on Bitcoin mining and Ethereum staking,” Celsius’ plan says.

The plan details that this new company, through which Celsius client funds would be distributed, will receive up to USD 450 million in cryptocurrencies for its development.

By Audy Castaneda

Binance Sets New Record: Spot Trading Volume Reaches $427 Billion

Leonardo Perez
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Binance Sets New Record: Spot Trading Volume Reaches $427 Billion

In absolute terms, Binance generated $3.8 trillion in trading volume for the entire year.

According to a recent report from CoinGecko, Binance, the world’s largest centralized exchange (CEX) by trading volume, maintained its leading market position in 2023.

Despite facing increased regulatory scrutiny and undergoing major leadership changes, Binance maintained a 43.7% market share and saw its spot trading volume increase to $427.1 billion in December 2023, representing a month-on-month (MoM) increase of 37.5%.

According to data from The Block, Binance led the charge in December, accounting for 39.3% of the month’s total volume, amounting to $432.7 billion. UPbit and OKX followed with 8.3% ($91.8 billion) and 8% ($87.5 billion) of volume, respectively.

December’s unexpected surge in cryptocurrency trading activity was attributed to the industry’s collective optimism surrounding the potential approval of spot bitcoin exchange-traded funds (ETFs).

Steven Zheng, director of research at The Block, noted that December, historically a slower month for cryptocurrency trading, saw unprecedented enthusiasm, due to the expected approval of bitcoin spot ETFs, which was effective on January 10, and the resurgence of a bull market.

Binance Trading Volume Reached $3.8 Trillion in 2023

According to CoinGecko’s report, Binance started the year with a dominant 63.5% market share, but saw a gradual decline throughout 2023, ending with a 43.7% market share in December. While Binance still dominated the market with 52.6% of total spot trading volume in 2023, the relative drop in the exchange’s market share was notable.

As previously reported, Binance faced significant regulatory pressure throughout 2023, culminating in a settlement agreement in November that required the exchange to pay a $4.3 billion fine to the Department of Justice (DOJ) and the Commodity Futures Trading Commission (CTFC), for alleged financial violations.

As part of the deal, Binance CEO Changpeng Zhao (CZ) also agreed to resign. Richard Teng has taken on the role of director of the company, while CZ remains restricted from traveling outside of US jurisdiction while the legal battle plays out.

UPbit and OKX Follow Closely

UPbit, South Korea’s largest cryptocurrency exchange, managed to maintain its position as the second largest centralized exchange in 2023, with a 9.5% market share and $687 billion in spot trading volume for the year.

According to the report, UPbit benefited from the Kimchi Premium, resulting in strong local demand and premium prices for the crypto assets. The exchange’s monthly spot trading volume hit an annual high of $90.7 billion in December, with a quarter-on-quarter (QoQ) increase of 93.5%.

In contrast, OKX secured the third position among centralized exchanges in 2023, with a 6.7% market share and $485.9 billion in trading volume. Throughout the year, OKX saw a steady increase in its market share, starting with 5.1% in January and ending with 8.9% in December. The exchange’s trading volume in the fourth quarter reached $177.9 billion, reflecting a notable quarter-on-quarter gain of 151.6%.

Among the top 10 centralized exchanges, CoinGecko reports that MEXC recorded the highest growth in Q4 2023, with trading volume increasing 203.7% to $90.4 billion. Bybit followed closely with a growth rate of 162.1% ($107.5 billion), while KuCoin saw a growth rate of 161.2% ($49.2 billion). KuCoin regained its place in the Top 10 in Q4 after briefly losing it in Q3, with a 3.3% market share at the end of December.

Binance Coin (BNB) has successfully maintained its position above the $300 threshold, with the current trading price at $304. This represents a 1.8% decrease in price over the last 24 hours.

By Leonardo Perez

FTX Will Not Relaunch, but Will Compensate Users

Audy Castañeda
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FTX Will Not Relaunch, but Will Compensate Users

FTX announces it will not pursue a relaunch, but pledges to fully compensate users.

Crypto exchange FTX said it plans to refund former customers in full, even though it has abandoned plans to restart the exchange. In a January 31 hearing in the United States Bankruptcy Court for the District of Delaware, FTX attorney Andy Dietderich, of the law firm Sullivan and Cromwell, stated that the exchange could “cautiously anticipate” the full refund to users and creditors, but added that this was “a goal” and not a “guarantee.” He said that “after an exhaustive effort,” there were no plans to relaunch FTX, dubbed “FTX 2.0,” in its current Chapter 11 bankruptcy plan.

Likewise, he pointed out that FTX has been negotiating for months with possible bidders and investors. However, neither was willing to put up enough money to rebuild the FTX exchange, adding that “The failed negotiations underscored the fact that FTX was never what it appeared to be, and founder Sam Bankman-Fried never built the underlying technology or management necessary to run the company as a viable business.”

FTX Rules Out Relaunch, but Plots Route to Full Compensation for Users

According to FTX’s attorney, the company will focus on liquidating its assets to pay customers whose cryptocurrency deposits were blocked when the company filed for bankruptcy in November 2022.

FTX has recovered more than $7 billion in assets to pay customers. And it has reached settlements with several government regulators who agreed to wait until customers have paid in full before trying to collect about $9 billion in claims.

Users Disappointed as Bankruptcy Judge Upholds Controversial Valuation Decision

Indeed, an attorney representing the official committee of unsecured creditors said they appreciate FTX’s update, calling it a “watershed moment for debtors.”

Still, a disclosure statement will be filed in February that will include the likely full payment of customer claims, but there may be some caveats: “That full payment is based on the values ​​from the date of filing those claims. “Many of those claims are based on coins, the value of which decreased dramatically in that tumultuous period leading up to the date of the petition.”

The legal representative added that “Many clients and creditors will not feel that this is a true full payment from where they started. But we recognize that the petition date is the date that should be used.”

Long story short, FTX went bankrupt in November 2022 and since then, many people have been waiting for their funds to be recovered. Today, FTX was reported to have plans to distribute money to its users. FTX will give the value in USD to users instead of BTC or ETH, meaning they will get rid of their holdings. FTX users will get their money based on cryptocurrency prices in November 2022, meaning if someone had 1 BTC, they would get $16,872 instead of $43,300. As a consequence, several FTX clients have complained about this measure.

However, U.S. Bankruptcy Judge John Dorsey overturned customers’ complaints and approved FTX’s use of 2022 prices during the hearing, saying that US bankruptcy law is “very clear” that debts must be paid based on their value on the date a company filed for bankruptcy. In this respect, Dorsey said the following:

“I have no room for maneuver on this. The Bankruptcy Code says what it says and I am obligated to follow it.”

By Audy Castaneda

Analysts and AI Predict Cardano (ADA) Price for February 2024

Leonardo Perez
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Analysts and AI Predict Cardano (ADA) Price for February 2024

Cardano (ADA) closes the first month of the year with a significant drop of approximately 13%. ADA price has experienced mostly bearish returns during the months of February in previous years. Various analysts and AI shared their Cardano price predictions for February 2024: Bullish or bearish trend?

The Cardano price (ADA) started 2024 with great expectations after registering a significant increase of 58% in December last year. However, in January, the token has experienced a significant correction: What awaits the cryptocurrency in the month of January 2024?

At the beginning of January of the new year, the Cardano price was trading at around $0.6310. Most recently, ADA is trading at $0.5187, thus experiencing a 13% drop throughout the month.

Significant Increase of 60% in December 2023

When analyzing CryptoRank data, since 2018, the ADA price has experienced mostly bearish returns during the months of February.

In 2018, 2020, and 2022 and 2023, ADA experienced drops of 39.4%, 11.8%, 9.05%, and 9.95%, respectively. In contrast, for only two years (2019 and 2021), the price of Cardano’s native token experienced one month in the black. The last time ADA closed January higher was three years ago, after a dizzying rise of almost 280%.

Cardano (ADA): Ecosystem Retrospective

The ADA price accumulates a significant drop of 13% throughout January. However, the token has shown signs of recovery following a considerable 11% rally over the past week, according to data from CoinGecko.

Despite Cardano’s unstable price performance, the network has seen notable achievements. First of all, a media outlet recently reported that, in terms of smart contracts, the “scientific blockchain” had registered a significant increase of 67% during the month of January

Secondly, the analysis company Santiment highlighted Cardano’s leadership in terms of development activity on GitHub during the last 30 days on January 22, after surpassing Polkadot (DOT) and Kusama (KSM).

However, Cardano’s TVL has fallen to $353 million after reaching an all-time high of $444 million in December, according to data from DefiLlama. As a result, it dropped out of the top 10 blockchains with the highest TVL in DeFi, an achievement it had achieved in December.

Analysts Predict ADA Price for February 2024

Various traders and analysts have shared several ADA price predictions on X (formerly Twitter). For example, @WorldOfCharts1, shares a more bullish projection and does not rule out that ADA could overcome the $0.80 barrier.

Trader and analyst @Av_Sebastian also shared a sharp Cardano price prediction. He even noted that ADA could reach $2 before the end of the year.

Analyst and trader Benjamín Isaza shared some interesting projections, and emphasized that Cardano has tested the $0.46 level:

“In the ADA/USD pair, the descending triangle chart formation can be detailed, only the break above the level of $0.46 would confirm a bearish continuity, proposing $0.37 as a target. This would represent a 20% drop in the value of its price.”

He also states that, if this level is respected, it could present an upward impulse with a target of $0.59 (December 2023 highs).

What Artificial Intelligence Predicts

In addition to the predictions of analysts in the world of cryptocurrencies, Artificial Intelligence has also been present. Bard, Google’s AI chatbot, said:

“Predictions for February 2024 indicate that the price of ADA could range between $0.454 and $0.534, with an average price of $0.494.”

However, it is widely recognized, and highlighted by Bard, that the cryptocurrency market is very volatile and that no prediction is 100% accurate.

By Leonardo Perez

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