Estonian Government Approves the Extradition of HashFlare Accused, and other News

Audy Castañeda
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Estonian Government Approves the Extradition of HashFlare Accused, and other News

Estonian Government approves the extradition of the HashFlare defendants. Terraform Labs files for protection under Chapter 11 of the Bankruptcy Law. Investors fear collapse and disappearance of Bitcoin, survey reveals. In Brazil, pre-candidate for mayor is arrested for alleged extortion related to cryptocurrencies. OKX suspends cryptocurrency mining services amid changes in the industry.

Ivan Turogin and Sergei Potapenko face 18 counts of conspiracy, wire fraud and conspiracy to commit money laundering in the United States. They are accused of raising $25 million from investors to establish a digital bank that would be called Polybius.

The Estonian government has collected evidence on detention conditions in the United States that indicates it could “ensure that the violation of people’s fundamental rights due to extradition is not disproportionate.”

This is the second time that the government has decided to extradite these men to the United States. The first decision was made on September 7; However, it was overturned by the Tallinn Circuit Court on November 29, due to the government’s failure to investigate detention conditions in the United States as an important factor in its decision.

Terraform Labs Files for Protection Under Chapter 11 of the Bankruptcy Law

According to court documents filed, Terraform Labs filed for bankruptcy protection under Chapter 11 in the United States. The company has assured that it will meet all financial obligations to employees and suppliers during the Chapter 11 case, without the need for additional financing. Additionally, Terraform Labs plans to continue expanding its Web3 offerings.

Investors Fear Collapse and Disappearance of Bitcoin, Survey Reveals

A survey by Deutsche Bank, the giant German bank, found that half of investors surveyed fear a collapse. The research reveals different perspectives on the future of Bitcoin (BTC).

According to the results, more than a third of respondents believe that the price of BTC will fall below $20,000 before 2025. Another group, even more pessimistic, expects the cryptocurrency to disappear completely in the coming years.

Likewise, 39% of respondents believe that Bitcoin will continue to exist in the coming years. The research also revealed that more than half of the participants are worried about the collapse of a major cryptocurrency in the next two years.

Not all respondents were pessimistic, a group still hopes that Bitcoin can recover in the coming months. 15% of participants estimate a possible price increase for Bitcoin, predicting values ​​between $40,000 and $75,000 by the end of the year.

Scandal in Brazil: Pre-Candidate for Mayor Arrested for Alleged Extortion Related to Cryptocurrencies

The court of Vila Velha maintained the arrest of Thiago Oliveira do Nascimento, pre-candidate for mayor of the municipality, accused of extortion and money laundering with cryptocurrencies from an Indian millionaire. Supposedly, the candidate would have discovered an extramarital relationship between the Indian businessman and a Brazilian woman in 2015.

The arrest occurred on January 23 during operation Criptovet, carried out by the Special Action Group to Fight Organized Crime (GAECO). Investigations began in December 2023.

OKX Suspends Cryptocurrency Mining Services amid Industry Changes

OKX has discontinued its cryptocurrency mining pool and related services. According to the statement, existing users will retain access to the services until February 25, 2024, giving them time to adjust their mining operations accordingly.

On February 26, 2024, OKX will stop operations of its mining pool. Subsequently, the platform will suspend all mining-related services, marking the end of an era for many users who have relied on OKX for their crypto mining activities.

By Audy Castaneda

Exploring the Latest News and Developments on Bitcoin

Leonardo Perez
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Exploring the Latest News and Developments on Bitcoin

In this week’s spotlight are news and trends in the leading cryptocurrency.

To begin the weekly Bitcoin roundup, Bloomberg analyst Eric Balchunas responded to Peter Schiff’s criticism of Bitcoin amid fund outflows from the Grayscale Bitcoin Trust (GBTC).

Peter Schiff attacked the recently launched Bitcoin ETF spot products, noting that they are not “creating additional demand.” He also hinted that newly listed ETFs are seeing inflows based on changing demands.

In his explanation, Schiff noted that “investors who could have bought actual Bitcoin, Bitcoin-related stocks like MSTR or GBTC, are simply buying the new ETFs.”

As if that were not enough, he concluded his publication by pointing out that this fund redistribution strategy will not stop the imminent fall in the price of Bitcoin.

In response to Schiff’s claims, Eric Balchunas asked for patience with newly released products before making assumptions. Balchunas agreed with Schiff in terms of changing demand and the redistribution of funds. He explained that ETFs often “steal” assets under management (AUM) from more expensive and underperforming alternatives.

Arthur Hayes: Bitcoin (BTC) Can Drop to $30,000

Former Bitmex CEO Arthur Hayes believes that a series of wars and the need to finance them are some of the reasons to expect a sharp cryptocurrency price correction before the next bull run.

In fact, he warned that Bitcoin could sink to between $30,000 and $35,000 amid a possible market slowdown caused by problems in traditional finance.

Deutsche Bank: Retailers Expect Bitcoin Drop Below 20K

According to a report from German banking giant Deutsche Bank Research, more than a third of investors surveyed believe Bitcoin will fall below $20,000 by January 2025. Another group is even more pessimistic, expecting the flagship cryptocurrency to disappear completely in the coming years.

Two thousand people from the United States, the United Kingdom and Europe participated in this survey, which was conducted from January 15 to 19. However, despite the pessimistic view, 15% of participants see a possible rebound, expecting the price of Bitcoin to rise to between $40,000 and $75,000 by the end of the year.

The bank’s study also found a lack of understanding about cryptocurrencies, with two-thirds of consumers having little to no understanding of digital assets.

Fidelity: Bitcoin Price Far from the Bottom

Jurrien Timmer, head of Fidelity, believes that the current state of Bitcoin is not the worst that could happen in the short term. Despite the volatility, expect the BTC price to continue falling. However, he maintains some optimism due to the approval of Bitcoin ETFs by the SEC.

Timmer further suggests that the drop in the price and actions related to Bitcoin are part of the expected volatility. Although he recognizes that the outlook is challenging for buyers who joined the ETF hype, he believes that the market will eventually balance.

VSFG Ready to Launch a Bitcoin ETF

According to Bloomberg, Venture Smart Financial (VSFG), a Hong Kong-based financial services firm, plans to launch an ETF that invests directly in Bitcoin in the first quarter of 2024.

Brian Chan, head of investment and products at VSFG group, said: “It is a market that has enormous potential. “The firm aims to reach $500 billion in assets under management by the end of this year.”

At least 10 fund managers have been working to launch a Bitcoin Spot ETF in Hong Kong, amid a Bitcoin ETF craze in the United States.

By Leonardo Perez

Main Drivers of Bitcoin Price Recovery Above $42,000

Audy Castañeda
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Main Drivers of Bitcoin Price Recovery Above $42,000

CryptoQuant CEO Ki Young Ju had pointed to the derivatives market as responsible for Bitcoin’s recent fall.

Bitcoin recently rose above $42,000, after trading below $40,000 for several days. This market recovery is believed to be the result of different factors, including recent revelations about the US economy.

Macroeconomic Factors Contributing to Bitcoin’s Recent Rise

The personal income expenditure (PCE) price index, a leading indicator of inflation, was released on January 26 and was reportedly lower than expectations. This suggests that inflation in the United States is cooling and experts predict that the Federal Reserve will likely reduce its aggressive monetary policies.

The Federal Reserve’s hawkish stance is known to have a negative effect on the price of Bitcoin and the crypto market in general. As such, this recent development is positive and is something that could have influenced investors to double down on their investments in the flagship cryptocurrency, thus causing a price surge.

Meanwhile, US Treasury data recently showed that the country has reached a historic debt of $34.1 trillion. While this has raised concerns about the imminent decline of the US dollar, it has also presented Bitcoin and other cryptocurrencies as a haven to protect against the possible devaluation of the country’s currency.

Interestingly, different financial analysts, including renowned economist Peter Schiff, have continued to predict the imminent fall of the US dollar. In light of this, financial author Robert Kiyosaki has urged everyone to invest in Bitcoin to avoid becoming poorer due to the government’s actions.

Another factor believed to have contributed to Bitcoin’s recent surge is the expiration of monthly BTC options contracts on Deribit. It is highly likely that the expiration outcome played a crucial role in Bitcoin’s rally.

GBTC Outflow Slows for 4th Consecutive Day

Grayscale’s GBTC recorded an outflow of just $255.1 million on Jan. 26, continuing a recent trend of reducing outflows from the fund. The Bitcoin ETF was reported to have experienced outflows of $515 million, $429 million, and $394 million on January 23, 24, and 25, respectively.

As Bloomberg analyst James Seyffart noted, January 26 also turned out to be the lowest exit day for GBTC since it converted to a Bitcoin Spot ETF. This development suggests that the fund’s investors may be stopping taking profits. It is also significant because Grayscale has contributed to the selling pressure that has plagued Bitcoin lately.

Since bitcoin ETFs became a “sell the news” event, traders have lacked the momentum needed to overcome the downward pressure. This has been attributed to large fund outflows from the Grayscale Bitcoin Trust (GBTC), possibly reflecting investors choosing to move into bitcoin ETFs with lower fees.

Notably, there has been a decline in fund outflows from GBTC for two consecutive days, indicating a reduction in selling pressure from trapped long-term investors who were unable to redeem their GBTC holdings earlier.

Bloomberg Senior ETF Analyst Eric Balchunas noted that while outflows from GBTC are trending downward, outflows from the other ETFs have slowed, with net flows being substantial at $824 million.

Therefore, with GBTC fund outflows decreasing day by day, it is possible for BTC to rise further from the current levels.

Most recently, Bitcoin is trading at around $41,700, up more than 4% in the last 24 hours, according to data from CoinMarketCap.

CryptoPredictions claims that the BTC price for today (28.01.2024) is forecast to be in the price range of $35,490,151 – $52,191,398. The price of Bitcoin is expected to end at $41,753,118 today.

By Audy Castaneda

The Biggest Whales Continue to Accumulate Bitcoin (BTC)

Leonardo Perez
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The Biggest Whales Continue to Accumulate Bitcoin (BTC)

Despite the correction in the cryptocurrency market, investors who hold large amounts of BTC, “whales,” remain optimistic. Matrixport analysts predict a new support level for Bitcoin (BTC). Although algorithms forecasts are pessimistic, Bitcoin whales are still active in the market and continue to accumulate. Whale optimism is becoming a key aspect to watch as cryptocurrency markets head into uncertain territory.

Despite the recent correction in the cryptocurrency market, investors who own large amounts of Bitcoin, commonly known as “whales,” remain bullish on their favorite digital asset.

Data from Glassnode indicates a dynamic increase in accumulation activity, where the number of Bitcoin holders with more than 1,000 BTC increased 3% in just two weeks.

When Will Bitcoin Recover, According to Matrixport?

According to a new report from Matrixport, Bitcoin price may fall to the support level of $36,739, written by famous crypto journalist Colin Wu:

“A January 26 Matrixport research report predicted that Bitcoin will fall to the support level of $36,739, and the price will rebound from this support level, as the overall liquidity and macro environment remain supportive. It noted that TradeFi’s interest in a Bitcoin spot ETF was not as strong as initially expected. Investors in GBTC are also taking profits,” Chinese reporter Wu posted on X.

However, analysts are confident that the level of support they predicted is a short-term phenomenon. They argue that BTC value will recover quickly if the overall liquidity and macroeconomic environment remains favorable. Some analysts believe that, in this context, investor interest in high-risk assets such as cryptocurrencies is increasing.

Bitcoin Price Influenced by Accumulation and Dips

Analyzing the Glassnode graph presented by Ali Martínez, it is observed that the number of “whale” wallets exceeded 1,500, reaching the value of 1501. This significant increase is an important sign of market recovery, despite the previous correction in prices. of Bitcoin.

Whales appear to continue to provide many investors with information about the current state of the market.

“Even amid this market correction, #Bitcoin whales aren’t slowing down – they’re accumulating more $BTC! In fact, there has been a notable increase in the number of major players: 46 new entrants now own 1,000 #BTC or more, a 3% increase in just two weeks.”

In the context of the increasing accumulation of Bitcoin by whales, a valuable picture emerges in the context of the change in the price of Bitcoin. Despite the increase in the number of Bitcoin holders, the price of this cryptocurrency has been subject to falls, in line with the patterns observed on the graph.

Machine learning algorithms appear to be more pessimistic, predicting a drop to the $35,000 area by February 1 despite the approval of a spot exchange-traded fund (ETF).

Whale Activity and Bitcoin Market Outlook

Recently, Bitcoin was trading at $41,172, up 3.12% on the day. However, on a weekly basis the loss amounted to 6.35% and last week’s correction represented a drop of 5.66%.

Despite the forecasts of pessimistic algorithms, Bitcoin whales are still active in the market and continue to accumulate.

In short, the activity of whales, that is, investors with large amounts of Bitcoin, is an important indicator of optimism towards this leading digital asset.

Despite the price correction, their continued accumulation suggests that they view the current situation as a phenomenon. It was in the short term on the way to new price records. The optimism of whales is becoming a key aspect to take into account. The above, as cryptocurrency markets head into uncertain territory.

By Leonardo Perez

Commissioner Claims that the SEC Won’t Repeat Mistakes with Ethereum ETFs

Audy Castañeda
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Commissioner Claims that the SEC Won’t Repeat Mistakes with Ethereum ETFs

For SEC Commissioner Hester Peirce, the commission learned from its mistakes and will not repeat them with Ethereum ETF applications.

SEC representatives will not repeat the same mistakes now with the approval of an Ethereum ETF, Commissioner Hester Peirce said. In that sense, she suggested that now the procedures will be much more fluid for companies that apply to launch funds in cryptocurrencies. In the official’s opinion, the agency has already learned from its mistakes.

In a recent interview with Coinage, Peirce referred to the Commission’s past episodes with applications from various financial firms. For years, US regulators have refused to approve some of these exchange products. The scenario changed in 2023, though, when a court ruling left those led by Gary Gensler no more options.

After regretting that it had reached that extreme, the official commented that it now belonged to the past. “This is not how we are going to do our approvals,” she stressed, referring to the lawsuit that forced them to give in to Grayscale. “We shouldn’t need a court to tell us that our approach is arbitrary and capricious in order to get it right,” she highlighted.

With these statements, Peirce hinted that there will be no major problems for companies requesting to launch ETFs. The latter includes both Bitcoin and Ethereum.

SEC Postpones Decision on BlackRock Ethereum ETF to March

The SEC made the delay one day before the January 25 deadline. It is the first of several delays the SEC can exercise over a 240-day period. This first deadline comes almost 45 days after Nasdaq filed for an iShares Ethereum Trust (on behalf of BlackRock) on December 11.

VanEck and Ark 21Shares’ ether ETF applications have a final deadline of May 23 and 24, respectively, while the other three applicants, Grayscale Investments, Invesco Galaxy and Fidelity Investments, have final deadlines of June 18, on July 5 and August 3.

One of the SEC Commissioners, Hester “Crypto Mom” Peirce, recently assured applicants that a legal battle will not be necessary to convince the SEC to approve Ether ETFs.

However, other industry experts are less optimistic. Morgan Creek Capital CEO Mark Yusko, for instance, predicts a less than 50% chance of an ether ETF being approved, arguing that the SEC remains hostile toward the cryptocurrency industry.

Is an Ethereum ETF Possible in a Short Time?

According to Peirce, the chances of Ethereum ETFs being approved on the stock exchange are high. However, a look at the bigger picture suggests it’s probably not all that smooth. Consequently, Gensler’s own statements following the approval of Bitcoin ETFs on January 10 should not be overlooked.

In them he flatly said that the approval was not a green light for him to think about placing unregistered commodity funds. It should be noted that the SEC is convinced that cryptocurrencies are securities that are traded illegally.

There are numerous appreciations and speculations regarding the approval of ETH exchange-traded funds. However, the possibilities are clearer about this currency than about others that also appear as possible applicants, such as XRP. Either way, new lawsuits against the SEC should not be ruled out should it refuse to approve an Ethereum ETF.

Grayscale’s victory over the agency centered on spot and futures Bitcoin ETFs being basically the same. If Grayscale applies for an ETH fund, the regulatory agency would face a redundant scenario.

Against this backdrop, it can be said that the chances of seeing an Ethereum spot exchange product this year are enormous.

By Audy Castaneda

Binance Smart Chain (BSC) Market Cap Reaches New Milestone, Recording 48% Quarter-on-Quarter Increase

Leonardo Perez
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Binance Smart Chain (BSC) Market Cap Reaches New Milestone, Recording 48% Quarter-on-Quarter Increase

BSC processed a record 32 million transactions on December 7, 2023.

Binance Smart Chain (BSC) is a layer 1 blockchain built to support smart contracts, running alongside the Binance Chain, which was designed to support high transaction volumes. BSC quickly gained popularity among developers and users in early 2021 as network congestion and high gas fees on the Ethereum blockchain increased the cost of transactions while slowing processing times.

In 2023, the BNB Smart Chain lost much of its power within DeFi money. BSC’s TVL dropped significantly throughout the year, declining by more than $1 billion annually, from $4.65 billion in early January to just over $3.52 billion today. These are the lowest figures for the BNB Smart Chain in DeFi since March 2021, far from its all-time high of $21 billion reached that year.

Binance Smart Chain (BSC) has demonstrated notable growth in key metrics during the fourth quarter (Q4) of 2023, as highlighted in a comprehensive report from Messari. As the third-largest Layer 1 protocol by market capitalization, BSC saw positive progress in its financial indicators, indicating a productive quarter for the blockchain ecosystem.

Record Binance Smart Chain Transactions

The report reveals that BSC’s market capitalization saw a quarter-on-quarter (QoQ) increase of 48%. This increase reflects renewed interest in BNB (Binance Coin), BSC’s native asset, after two consecutive quarters of decline.

Additionally, BSC’s revenue measured in USD saw significant quarter-on-quarter growth of 27%. This increase in revenue, which amounted to more than $39 million in the fourth quarter, indicates increased activity in the protocol and the implementation of various initiatives throughout the year.

Gas fees burned on BNB, a metric that reflects network activity, also saw a notable 21% quarter-on-quarter increase. The increasing number of smart contract transactions and interactions contributed to the increase in gas fees burned, further strengthening the Binance Smart Chain ecosystem. In addition to financial metrics, the BSC showed impressive improvements in other areas.

The number of active validators increased 25% quarter-on-quarter, highlighting growing trust and engagement in network security. BSC’s commitment to decentralization was evident as the protocol saw a 54% year-over-year increase in active validators.

According to Messari, throughout 2023, BSC demonstrated its ability to handle increased activity while reducing costs for users. Daily transactions on the network saw a 35% year-on-year (YoY) increase and a 30% quarter-on-quarter increase, averaging around 4.6 million transactions per day in the fourth quarter.

Such increases in transaction volume were attributed to enrollment-related activity: the BSC processed a record 32 million transactions on December 7, 2023.

BSC DeFi Ecosystem Reaches $4.6 Billion TVL

Despite a decline in daily average active addresses and new unique addresses, primarily due to users exploring alternative chains like opBNB, BSC’s on-chain activity remained strong. The protocol’s stablecoin ecosystem, dominated by Tether’s USDT, reached a total value locked (TVL) of $4.6 billion in Q4, showing a 33% quarter-on-quarter increase in decentralized finance TVL (DeFi).

While metrics related to non-fungible tokens (NFTs) declined in the fourth quarter, Binance Smart Chain and Ethereum (ETH) saw a resurgence in activity towards the end of the quarter, indicating a possible upward trend in the next market cycle.

In addition to BSC’s growth, BNB also experienced notable price movements. After a sharp drop, BNB rose from $238 to reach the $338 level. However, it later retreated to $287 following a correction. In the last 24 hours, BNB has recorded a growth of 3.7%, raising its current trading price above $302.

By Leonardo Perez

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