Cathie Wood Restructures Her Bitcoin Portfolio, Leaves Grayscale Amid ETF Uncertainty

Leonardo Perez
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Cathie Wood Restructures Her Bitcoin Portfolio, Leaves Grayscale Amid ETF Uncertainty

Cathie Wood sells her remaining position in the Grayscale Bitcoin Trust due to the uncertainty of successfully converting to an ETF.

Cathie Wood’s ARK Next Generation Internet ETF has undergone a significant shakeup in its Bitcoin-related holdings, selling its remaining position in the Grayscale Bitcoin Trust due to uncertainty over the possibility of successfully converting to an exchange-traded fund (ETF).

According to Bloomberg, the ETF sold its remaining 2.25 million Grayscale Bitcoin Trust shares on Wednesday. On the same day, it acquired 4.32 million shares of the ProShares Bitcoin Strategy ETF, which invests in Bitcoin futures, thus becoming the second largest holder of the fund, according to the investment firm’s daily data.

This portfolio restructuring comes amid a race in the industry to gain US regulatory approval for the first ETF to invest directly in the largest cryptocurrency.

Wood Offers Move Details

Wood stated on Bloomberg Television that the move was made “without much caution” in case the conversion of the Grayscale trusts to an ETF is not approved by US regulators in early January. Many observers expect the Securities and Exchange Commission (SEC) to give the green light to America’s first spot Bitcoin ETF at the time.

Wood also noted that Grayscale Trusts’ previous significant discount to its net asset value has decreased considerably, which was “double good news for us” when combined with its price increase.

The SEC has a deadline of Jan. 10 to decide whether to approve a Bitcoin ETF application filed by Wood’s ARK Investment Management LLC and 21Shares, along with possibly other similar filings.

“We think the odds have increased because the SEC has been very compromised compared to what was happening before,” Wood said on Bloomberg TV on Thursday. However, he warned that approval “is not 100% certain.” “We don’t know exactly who will be approved and whether they have met all the criteria that the SEC has presented to us,” she said. “We are as bullish on Bitcoin as we have ever been.”

What’s Up with Cathie Wood’s ETF?

ARK has been reducing its holdings in the Grayscale Bitcoin Trust in recent months, even as Bitcoin hit its highest level since April 2022. The cryptocurrency has more than doubled in 2023, with much of the gains coming towards the end of the year due to speculation that the SEC will finally approve Bitcoin ETFs early next month.

Bitcoin fell 2.1% to $42,472 as of 5 p.m. in New York, while the Grayscale Bitcoin Trust closed 4% lower.

Earlier this week, Grayscale Investments announced that Barry Silbert, founder and CEO of its parent company Digital Currency Group, has resigned as president and will be succeeded by Mark Shifke, DCG’s chief financial officer. The board reorganization was seen by some as a positive step by Grayscale to obtain SEC approval to convert its fund into an ETF.

Wood touted the Grayscale Bitcoin Trust as her top pick at the Sohn Australia conference last month.

Also on Wednesday, the ARK ETF bought 20,000 shares of the ARK 21Shares Active Bitcoin Futures Strategy ETF and sold 148,885 shares of the cryptocurrency exchange Coinbase Global Inc., according to the funding report.

The ARK Next Generation Internet ETF is up 103% this year, compared to a 55% advance in the Nasdaq 100 Index. However, the financial path has been volatile: it fell 67% in 2022.

By Leonardo Perez

Centralized Exchanges Report 2023: Detailed Crypto Exchange Insights and Analysis

Audy Castañeda
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Centralized Exchanges Report 2023: Detailed Crypto Exchange Insights and Analysis

Below is the annual report for 2023 to understand the trend of the crypto centralized exchange industry.

Behind the astonishing $114 million Poloniex hack and the volatile nature of centralized exchanges, this report delves into the intricate behaviors of the cryptocurrency market.

From institutional actors examining the implications of regulatory decisions to analyzing security challenges that have arisen, centralized exchanges play a critical role in each scenario.

A clear synthesis of the critical moments of 2023 is offered in the context of global economic forces through a meticulous examination of market data and industry events.

Combined Quarterly Spot and Derivatives Volumes Expect Last Quarter to Close Above the $8 Trillion Mark

2023 has been a watershed year for crypto exchanges. Trading volumes began to grow again and reached the $10 trillion mark in January 2023. However, the market has been putting downward pressure on volumes for two quarters, showing a pullback phase, a FUD era.

The third quarter marks the end of the pullback, as numbers begin to rise in the final quarter near the $8 trillion mark. As the end of the year approaches, volumes and the overall market are growing, including Bitcoin and altcoins.

Binance Loses Its Grip on Top 10 CEX Market Share as New Players Take Control

Binance began the year with a commanding lead, but the charts told a story of intense rivalry and reversals of fortune as the months passed. Each bar on the chart is a battlefield where market share has been won and lost, with colors stacking up like contenders in a tight race.

It has been a difficult year for Binance. Once it had more than 50% control of the market, its leadership has diminished, due to the drop in trading volumes. The gavel fell hard with a record fine of $4.3 billion from the United States Department of Justice. By the end of the year, the landscape had transformed, with newcomers like Bybit and Bitget making their presence felt.

Binance Dominates Half of Crypto Derivatives Market with 50% Trading Volume

Binance has been the undisputed champion, taking just over half of the market share at 50.9%. While they have maintained a steady lead, the gap is narrowing, and Binance’s share of the pie has dropped to 45%. This shift indicates a market that is heating up as critical players step up their game.

OKX, in particular, is rising steadily, increasing its share from 10% to 15.5% in a year. Bybit, Bitget and MEXC Global are actively chipping away at the lead, carving out their own significant spaces in the market. Together, these contenders hold a formidable 42.3% of the derivatives trade, demonstrating fierce competition.

Binance and Coinbase Are the Goliath and Control More than 60%

Among centralized exchanges (CEX), the battle for user deposits is revealing. Binance stands out with a 32.7% share, while Coinbase follows closely with 29.4%. These heavyweights are not only leading, they are defining the space.

Poloniex Suffered the Biggest Blow in November with a Huge Theft of $114 Million

Poloniex suffered the biggest hit in November with a massive $114 million theft. That number is enough to make the crypto community tremble. CoinEX was not spared either, with its defenses exceeding $70 million in September.

Each hack is a stark reminder that security is not just a feature but the very foundation of the fast-paced world of cryptocurrencies. In 2023, the message is clear: surveillance is non-negotiable, and security is king in the realm of centralized exchanges.

By Audy Castaneda

Cardano Founding Company, EMURGO, Plots Growth Strategy for 2024

Leonardo Perez
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Cardano Founding Company, EMURGO, Plots Growth Strategy for 2024

With a focus on sustainable community governance, technical advancements, interoperability and ecosystem expansion, Cardano aims to improve its position in terms of decentralized applications (DApps) and real-world Web3 solutions in 2024.

EMURGO, Cardano blockchain founding company, recently reflected on the achievements of 2023 and revealed a roadmap for the ecosystem in 2024.

As EMURGO highlights in its roadmap, in 2023, Cardano took steps to establish sustainable community governance through initiatives such as CIP1694 and the launch of Intersect, a member-based organization. According to the founding company, these developments laid the foundation for blockchain’s minimum viable community governance.

With a vision of 2024, the next Chang hard fork, which will be implemented by community consensus, will begin the “bootstrapping phase” of Cardano’s governance model. In particular, Delegated Representatives (DReps) will play a critical role as elected voting representatives of the community, participating in network-related decision-making processes.

Additionally, in 2024, Cardano plans to take further steps towards achieving full community governance, known as Voltaire. This involves hosting Cardano charter workshops, conventions, and voting events throughout the year. These activities aim to “empower” the community by providing opportunities for active participation and decision making to shape the future of the ecosystem.

EMURGO hopes that the progress made by Intersect will contribute significantly to the realization of full community governance.

Tokenization Without Cardano Smart Contract

EMURGO notes that the Cardano blockchain has become a “thriving ecosystem” for decentralized applications in sectors such as decentralized finance (DeFi) and non-fungible tokens (NFT).

The company emphasizes Cardano’s approach, which allows the issuance of tokens without the need for smart contracts, making it easier for brands and creators to adopt Web3 and tokenize real-world assets.

According to the numbers, the ecosystem is witnessing a growing number of projects using Cardano technology, with over 150 projects already launched and over 1,300 in development. In particular, EMURGO highlights programming languages ​​such as Plutus, Marlowe and Aiken, along with open-source tools, which provide developers with resources to create innovative blockchain solutions.

Furthermore, the founding company points out that Cardano recognizes the importance of interoperability and has developed a set of sidechain tools to allow developers to create sidechain solutions and seamlessly connect them to the ecosystem.

ADA Sees Impressive Long-Term Rise

Cardano’s native cryptocurrency ADA is currently trading at approximately $0.6346. Over the last 24 hours, ADA saw a slight drop of 2.14%.

However, the cryptocurrency has shown resilience over the past seven days, with a positive growth rate of 3.52%. If the long-term trends are considered, ADA has risen a significant 61.67% in the last 30 days and a remarkable 120.47% in the last 180 days.

According to data from Token Terminal, the market capitalization of ADA, based on the circulating supply of ADA, amounts to $21.80 billion. This represents a substantial increase of 56.89% in the last 30 days. Furthermore, if the fully diluted market capitalization is considered, which takes into account the maximum supply of ADA, the figure rises to $27.99 billion, indicating a similar growth rate of 56.73%.

Cardano Predictions

According to CryptoPredictions, Cardano started December 2023 at $0.37563466942651 and is forecast to end the month at $0.62978303143756. During December, the expected high price of ADA is $1.040 and the low is $0.37563466942651.

ADA price for today (29.12.2023) is forecast to be in the price range of $0.55175796405063 – $0.8114087706627. Cardano price is expected to end at $0.64912701653016 today.

Cardano is expected to start January 2024 at $0.71413041774316 and end the month at $0.73218187724614.

By Leonardo Perez

CryptoQuant Loud Alarm: Bitcoin ETF Timely Approval May Cause Drop to $32,000, Here’s Why

Audy Castañeda
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CryptoQuant Loud Alarm: Bitcoin ETF Timely Approval May Cause Drop to $32,000, Here’s Why

The CryptoQuant report particularly posits that this scenario could trigger a “selling the news” event, historically linked to market corrections.

A recent report from CryptoQuant has sparked discussions, suggesting that the approval of a Bitcoin spot exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC) could lead to a major event in the market. This possibility arises as the price of Bitcoin (BTC) stabilizes above $40,000, leaving many market participants with significant unrealized gains.

Bitcoin Possible Fall to $32,000

CryptoQuant analysis points to the current state of Bitcoin holders as a reason for the potential BTC price drop when the Bitcoin Spot ETF is approved, especially the short-term ones, which experience unrealized profit margins of around 30%.

According to CryptoQuant, such high profit levels have often preceded price drops. Additionally, the report notes an increase in selling activity from Bitcoin miners, increasing potential selling pressure on BTC. This, combined with the market’s anticipation of a timely approval of a Bitcoin ETF, could create a volatile environment, as highlighted in the report.

According to CryptoQuant analysis, during downturns within bull markets, the value of Bitcoin often falls back to the level where short-term investors have historically realized their prices. With this in mind, the report suggests that in a “sell the news” scenario, Bitcoin’s value could see a drop, with a possible drop to around “$32,000.”

Contrasting Views and Support Levels Amid ETF Speculation

The conversation about the possible approval of a Bitcoin spot ETF is not one-sided. Several analysts are predicting a positive outcome, with companies like Matrixport and prominent analysts like Michael van de Poppe suggesting that approval could catapult the price of Bitcoin to new highs.

On December 19, van de Poppe posted on X that “#Bitcoin did test the lows, didn’t take the liquidity beneath the lows. Anyway, correction seems over and pre-ETF we’re likely to test $47-50K. Buy the dips.”

Matrixport anticipates that the approval of Bitcoin spot ETFs by the US SEC could push the value of BTC to around $50,000 by early 2024. Van de Poppe echoes this sentiment and foresees a potential increase to the $47,000 to $50,000 range.

Furthermore, although CryptoQuant predicts a possible drop to $32,000, other analysts’ prediction of the BTC bottom does not go that low. Analyst Ali, for example, has highlighted a solid support zone between $37,150 and $38,360, further suggesting to “watch out for two resistance walls that could keep the #BTC uptrend at bay: one at $43,850 and another at $46,400.”

This range is bolstered by the activities of approximately 1.52 million addresses containing around 534,000 BTC. Notably, such a strong support base could mitigate the risks of a drastic price decline even if a “sell the news” event was to occur after the ETF’s spot approval.

“Buy with Rumor and Sell with the News” Effect

This phenomenon of buying on rumor and selling on news is neither new nor exclusive to Bitcoin. It has been observed in other financial markets, such as stocks, currencies or raw materials.

The approval of a Bitcoin ETF is one of the most anticipated and desired events by the crypto community, as it is considered to drive the adoption and price of Bitcoin to levels never seen before. It is unknown how the ETF will be approved, nor what impact will it have on the market.

By Audy Castaneda

MicroStrategy Raises Its Bitcoin Holdings to All-Time Highs

Leonardo Perez
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MicroStrategy Raises Its Bitcoin Holdings to All-Time Highs

MicroStrategy reinforces its commitment to Bitcoin (BTC) with a record purchase of 615 million dollars. What is its strategy?

MicroStrategy consolidates itself as a leader in the acquisition of Bitcoin with a new million-dollar purchase. This time, it buys 14,620 BTC ahead of the possible approval of a spot BTC exchange-traded fund (ETF). This recent purchase brings MicroStrategy’s total Bitcoin holdings to 189,150 BTC. MicroStrategy therefore remains the largest public holder of Bitcoin, followed by companies such as Tesla and Marathon Digital Holdings.

MicroStrategy began purchasing Bitcoin in August 2020. Additionally, its most recent purchase prior to today’s announcement took place last month, when it acquired 16,130 Bitcoins for approximately $608 million at the time.

In fact, MicroStrategy’s foray into Bitcoin has not only generated substantial cryptocurrency gains, but has also boosted its stock performance, up 300% this year.

Particularly, MicroStrategy’s aggressive Bitcoin acquisition strategy aligns with the vision of its co-founder and prominent Bitcoin advocate, Michael Saylor, who has pointed out that “People, as they become educated about digital assets, realize that they should allocate more and more capital to this digital asset and therefore they are moving from 0.1 to 0.2%.”

MicroStrategy Strengthens its Bitcoin Position with an Unprecedented Investment

According to a US Stock Exchange Form 8-K filing, the world’s largest corporate owner of Bitcoin, based in Tysons, Virginia, spent $615.7 million on this latest acquisition. With an average price of $42,110 per unit, between November 20 and December 26, 2023.

Likewise, Michael Saylor tweeted that MicroStrategy bought Bitcoin at an average price of $42,110 per unit.

Regarding this fact, Joseph Vafi, an analyst at Canaccord Genuity, said: “Michael Saylor is something of a visionary. He saw this as an opportunity to really exploit the fact that they had a lot of cash and a pristine balance sheet and start this Bitcoin treasury experiment. And it worked well and that’s why they continue down that path.”

MicroStrategy shows no signs of slowing down when it comes to buying Bitcoin. For example, in November Saylor said he bought BTC even as the price continued to rise. Additionally, Michael Saylor has frequently touted that companies that adopt a Bitcoin strategy can thrive in times of economic turmoil.

About Bitcoin Volatility

During this month, Bitcoin volatility appears to plateau with respect to large price movements. However, if the magnifying glass is moved a little closer, it is observed that changes between $40,000 and $45,000 are extremely frequent.

This relative volatility takes over the scene and could continue for the next few days until the matter with the ETF is clarified. It should not be lost sight of that January 10 is the scheduled date for a decision on this instrument by the SEC. In any case, after that period a greater movement could be determined and the currency would leave the current carousel.

The issue of Bitcoin volatility has no major secrets looking at the approach of 2024. Consequently, the spot ETF will be decisive in knowing whether that strong volatility will be negative or positive. With this, the period of stability that marked much of the second half of 2023 could be forgotten.

It can be said that relative volatility will end. A hypothetical bull market would collapse the low volatility with respect to large moves and the high volatility with respect to small moves between 40K and 45K. At the same time, a sharp decline in the first exchange rates should not be ruled out in the event of a possible new disappointment with the ETF issue.

By Leonardo Perez

ARB Soars 25% in 24 Hours as Arbitrum Prepares for Major Projects in 2024

Audy Castañeda
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ARB Soars 25% in 24 Hours as Arbitrum Prepares for Major Projects in 2024

In the tumultuous world of cryptocurrencies, few names have resonated as strongly in 2023 as Arbitrum (ARB).

The cryptocurrency giant has quickly risen through the ranks, surpassing industry stalwarts and marking its territory in the competitive landscape. As demand for its network reached a fever pitch, developers flocked to Arbitrum, beating out the likes of Polygon, Optimism, Avalanche, and even the formidable Solana.

ARB’s meteoric rise is not just a show; It is a testament to their resilience and adaptability. In the latest turn of the cryptocurrency bull run, ARB has shown an impressive recovery, trading at an enviable price of $1.62.

ARB Shows Worth with 42% Rally on Weekly Charts

A formidable 25% rise in the past 24 hours and a solid 42.4% rise over the past week underscore the coin’s enduring strength as Arbitrum prepares for major partnerships in 2024.

The journey from its yearly low has been remarkable, witnessing an 80% increase. that catapulted its market capitalization past the $1.6 billion mark. It’s a stark contrast to the all-time high of $8.67, a peak achieved just nine months ago.

The appeal of Defillama Arbitrum extends beyond price dynamics; It has a thriving ecosystem full of renowned developers. According to DeFi Llama, its total value locked increased by 24.3% in the last 24 hours.

Arbitrum Unveiled: Ethereum’s Scaling Prodigy

Created specifically to support the scalability of Ethereum, Arbitrum is a decentralized platform. By scaling Ethereum, Arbitrum provides users with an Ethereum-like platform where they can participate in on-chain activities at a lower cost than they would pay on the Ethereum mainnet.

Ethereum submodules known as Arbitrum rollups power Arbitrum. Rollups remove the requirement for Ethereum nodes to validate arbitrage transactions, suggesting that Ethereum will accept the credibility of the Arbitrum layer for on-chain operations from an “innocent until proven guilty” standpoint.

With more than 50% year-on-year growth in developer headcount, the Arbitrum chain is among the fastest growing Layer 2 solutions, according to the 2023 Developer Report. The ecosystem currently consists of a wide variety of components such as result of this exponential expansion of development.

On March 23, Arbitrum orchestrated a groundbreaking airdrop, disbursing 1.27 billion ARB tokens to over 600,000 eligible wallets. This spectacle coincided with a surge in daily transactions, reaching a single-day high of 2.73 million, Arbiscan reported.

Meanwhile, DCSpark and Paima Studios co-founder Sebastien Guillemot has discussed the possibility of working together in 2024. Cardano community member and software engineer Guillemot wrote in X, predicting additional projects in 2024 that integrate Arbitrum with Cardano and Protocol.

“With Ethereum sentiments being in the dumps right now, I’d just like to say working with Arbitrum has been a great experience

Expect more projects that combine Arbitrum with @cardano and @MinaProtocol in the 2024.”

Guillemot believes that merging both platforms will be beneficial, especially given the current Ethereum market conditions.

How Much is Arbitrum Worth?

According to Cryptopolitan, the current price of Arbitrum is $1.35. In the last 24 hours, it has seen a trading volume of $527.63 billion. With a market capitalization of $1,723 million, it is in position 48. The ARB price rose by 1.34% in the last 24 hours. ARB has a circulating supply of 1,275,000,000.

ARB is down 88.78% from its all-time high (ATH) of $11.80, set in March 2023. It is up 30.27% in the last 30 days. ARB sees positive momentum this week. The relative strength index is 57.37, trac and restricted to the neutral level.

By Audy Castaneda

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