Bitcoin (BTC) Rises Above $35,000 – What Happened Last Night?

Leonardo Perez
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Bitcoin (BTC) Rises Above $35,000 – What Happened Last Night?

As most altcoins struggle to keep up, what caused this sudden spike in Bitcoin price?

The price of Bitcoin has surpassed the threshold of $35,000. In other words, BTC is up almost 11% in the last 24 hours and, more broadly, 107.6% since the beginning of the year.

The price of Bitcoin skyrocketed last night, to the point of briefly exceeding the $35,000 threshold. a point that the king of cryptocurrencies had not reached since May 2022, that is, at the time of the fall of Terra (LUNA).

Bitcoin Price Soared Overnight

The price of Bitcoin has increased by 10.5% in 24 hours, and more than 20% in 7 days. Considering the progression of BTC since the beginning of this year, it has seen an increase of around 105%. For its part, Ether, although it has also risen (7% in 24 hours), is struggling to align with the progression of Bitcoin. This is particularly notable because the ETH/BTC pair, in which Ether had already lagged for a while.

This difference can also be observed in the altcoin market. Bitcoin dominance, which allows us to assess the weight of BTC capitalization compared to the rest of the market, exceeded 54.4%, although it had already reached its highest point 2 and a half years ago. 2 days ago (52.6%).

Finally, on the liquidation side, 400 million dollars were liquidated in the last 24 hours, of which 300 million were shorted, according to data from Coinglass.

The Reasons for the Sudden Increase

This progression seems to be mostly correlated to the narrative surrounding the upcoming arrival of a spot Bitcoin ETF on US soil. Yesterday two important news fueled investors’ expectations, which were already high.

First, the Court of Appeals orders the US Securities and Exchange Commission (SEC) to rule on the conversion of Grayscale Bitcoin Trust (GBTC) to a spot Bitcoin ETF. In other words, if the SEC wants to once again reject Grayscale’s application (a decision considered arbitrary and capricious by the Court), it will have to clearly explain its motivations.

Secondly, iShares Bitcoin Trust, the future Bitcoin spot ETF of the giant BlackRock, appeared on the website of the Depository Trust and Clearing Corporation (DTCC), an American organization that plays a key role in the financial sector, particularly in the areas clearing, settlement and deposit of securities. In theory, the addition of a ticker in the DTCC means the next start of trading for this or that asset. In other words, BlackRock expects its Bitcoin spot ETF to be approved soon.

Eric Balchunas, an analyst specializing in ETFs at Bloomberg, has this to say:

“[This] usually happens right before launch. It’s hard not to see this as a sign that approval is certain or imminent.”

Thus, the recent news demonstrates two things: on the one hand, this rise in Bitcoin indicates the extent to which investors are placing their expectations on the upcoming arrival of a spot Bitcoin ETF in the US. Second, a likely approval of a BTC spot ETF by the SEC has never been so close, a recipe that should work, but whose timing is difficult to predict.

According to some observers, the first Bitcoin ETF approved by the SEC could be in the coming weeks or even before the end of October for the most optimistic. James Seyffart and Elliott Stein, two analysts at Bloomberg Intelligence, stated that “the approval of a Bitcoin ETF seems inevitable.”

By Leonardo Pérez

Nearly 4,800 BTC Linked to Defunct Darknet Marketplace Moved to Bitcoin Mixer

Audy Castañeda
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Nearly 4,800 BTC Linked to Defunct Darknet Marketplace Moved to Bitcoin Mixer

One entity transferred approximately $144 million in BTC from the Abraxas dark market to a Bitcoin mixer. The entity behind the dark market, which has remained silent for almost a decade, has decided to transfer an impressive 4,800 BTC. As is common in this type of transaction, the reason for it is unknown, although it can be deduced that it is money laundering.

Recently, a blockchain analyst known as ZachXBT has revealed an intriguing money laundering case in which an entity transferred approximately 4,800 BTC, equivalent to about $144 million, from the Abraxas dark market to a Bitcoin mixer.

“One entity moved ~4,800 BTC ($144 million) from the Abraxas darknet marketplace, which was scammed in November 2015 after previously being inactive. They consolidated funds and also deposited them into a bitcoin mixer. This graph shows an example of the movements of one of the directions.”

Abraxas Case with BTC: The Dark Market that Disappeared in 2015

Abraxas was an online dark marketplace that operated in the shadows until its sudden disappearance in November 2015. At the time, its closure was described as an “exit scam,” a maneuver in which the marketplace owners suddenly disappear, leaving users with blocked funds and no possibility of recovering their money.

This event left a large number of Bitcoins (BTC) trapped in the market, and for eight years, these funds remained immobile. The event ended up raising additional concerns about the regulation of cryptocurrencies and the fight against money laundering in the digital sphere.

To date, cases like this show that the world of cryptocurrencies still remains fertile ground for illicit activities and shady financial movements.

Does Abraxas Resurgence Involve BTC?

What has caught the attention of the crypto community is the recent movement of funds related to Abraxas. The entity behind the dark market, which has remained silent for almost a decade, has decided to transfer an impressive 4,800 BTC, valued at $144 million, to a Bitcoin coin mixer. This unusual maneuver has raised the suspicions of blockchain experts such as ZachXBT, who suggest that the purpose behind this operation is money laundering.

To All This… What is a Bitcoin Mixer?

A Bitcoin mixer, as the name implies, is a tool used to “mix” Bitcoin transactions, breaking up and redistributing the coins across multiple wallets over a set period of time.

The main function of the mixers is to obstruct any attempt to trace the operations. These tools are especially valuable for users who want to maintain a high degree of privacy when conducting transactions.

The wide range of approaches used by mixers also contributes to preserving user anonymity. An example of this is P2P providers, which act as platforms for the creation of groups in which users combine their resources. The US Treasury has expressed interest in calling coin mixers a “top money laundering concern,” underscoring the seriousness of the problem:

“Today’s action underlines Treasury’s commitment to combating the exploitation of mixed convertible virtual currency by a wide range of illicit actors, including state-affiliated cyber actors, cybercriminals and terrorist groups.”

The case of the 4,800 BTC from Abraxas that have finally been moved to a coin mixer highlights once again the security and compliance challenges that cryptocurrencies face.

As authorities step up efforts to regulate the use of cryptocurrencies and prevent illicit activities, events like this serve as reminders that the digital world still harbors challenges in the fight against financial crime.

By Audy Castaneda

Why is the Bitcoin Price Soaring to $35,000? Decoding Five Main Reasons

Leonardo Perez
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Why is the Bitcoin Price Soaring to $35,000? Decoding Five Main Reasons

One of the possible reasons is the possible approval of BlackRock’s Bitcoin spot ETF.

The price of Bitcoin has surpassed $35,000 for the first time since early May 2022, so there are several reasons beyond mere speculation. Below are the top five.

BlackRock Bitcoin Spot ETF Approval Gains Big Importance

The epicenter of this rise is the possible approval of BlackRock’s Bitcoin spot ETF. These speculations were fueled by a revelation from Scott Johnsson, a respected financial lawyer at Davis Polk. He noted, “So two things caught my attention from iShares (Blackrock)’s latest S-1 amendment: They got a CUSIP in preparation for a launch. They may be looking to generate cash this month.”

This sentiment was further amplified by an image circulating on X, highlighting the listing of BlackRock iShares Bitcoin Trust on the Depository Trust & Clearing Corporation (DTCC) under the symbol IBTC. Adding depth to these rumors, Bloomberg’s Eric Balchunas commented, “The iShares Bitcoin Trust has been listed on the DTCC. And the symbol will be $IBTC. Again, it’s all part of the process of bringing an ETF to market.”

However, Bloomberg’s James Seyffart sounded a note of caution, mentioning that “There is no set time. In theory, it could literally be days, months or years.”

Grayscale ETF Dispute Reaches Conclusion

Yesterday the D.C. Circuit Court of Appeals ended the court case, forcing the SEC to review its earlier decision rejecting Grayscale’s proposal to transition its Grayscale Bitcoin Trust (GBTC) to a spot ETF. This confirms its preliminary ruling two months earlier, in which it criticized the SEC’s refusal as “arbitrary and capricious.”

The onus now shifts back to the SEC, leaving it with the option of sanctioning Grayscale’s application or rejecting it on alternative grounds. This event enhances the narrative suggesting an imminent timely approval of the ETF by the SEC.

Bitcoin Short Sellers Are Squeezed

A large part of the market was caught on the wrong foot. Data from Coinglass reveals that a whopping $161 million in BTC futures shorts were liquidated yesterday, with an additional $35 million already today.

Joe Consorti, market analyst at The Bitcoin Layer, commented, “When Bitcoin rose to $31,000, there was a notable buildup of futures positions, reminiscent of the rally we saw from $25,000 to $30,000 in late June. Leverage-driven price surges can be precarious, similar to structures built on unstable ground.”

Emergence of TWAP Purchase and Coinbase Premium

In an analysis that has intrigued many in the crypto community, Skew, a highly respected analyst, highlighted that “There is a discernible TWAP buyer that has been active since Bitcoin hit around $30.6K.” “The impact of this TWAP purchase on the price trajectory seems more pronounced this time,” Skew noted.

Skew also pointed out that “If we take a look at the order book, there appears to be a slight bias towards higher requested liquidity around $37,000.” This observation aligns with the thoughts of CryptoQuant CEO Ki Young Ju, who commented on the sudden rise in BTC Coinbase premium: stating “BTC Coinbase premium just skyrocketed.”

Maximum Pain for Gamma Shorts in the Options Market

Yesterday, NewsBTC reported an important insight: the way options market makers were positioning themselves in Bitcoin had the potential to increase the intensity of any upward Bitcoin price trajectory in the near term. Alex Thorn, head of firm-wide research at Galaxy, pointed to Amber’s data and explained: “At $32.5k, market makers need to buy $20 million of delta for every subsequent 1% move.”

By Leonardo Pérez

Possible Bitcoin ETF Approval Drives Revenues to the Crypto Market

Audy Castañeda
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Possible Bitcoin ETF Approval Drives Revenues to the Crypto Market

The chances that the SEC ends up approving a spot Bitcoin ETF generates notable growth in flows into the crypto sector.

The time of hopelessness among applicants for an exchange-traded fund of the largest cryptocurrency seems to end. The high possibility of the SEC approving a Bitcoin ETF triggers capital inflows into the crypto market from several directions.

The bullish potential of the pioneering cryptocurrency is once again brought to the fore. In that sense, after months of low volatility, the price of BTC is once again above the barrier of $30,000 per coin.

According to a recent report from Coinshares, week-over-week income from the crypto sector rose by more than 340% until October 23. In this sense, the mood of investors indicates that there is strong confidence that the approval of the stock market product is very close.

The report highlights that more than 80% of income is related to assets linked to Bitcoin. For its part, the second most important currency in capitalization, ETH, is in trouble. The text states that it was the only one in the top that presented withdrawals greater than income.

The Race for the First Bitcoin Spot ETF Continues in the United States

Grayscale filed a new registration statement on Thursday the 19th via an S-3 filing. A shortened version of the typical S-1 filing used to offer new stock.

Previously, Grayscale demonstrated that its proposed Bitcoin ETF was similar to already approved Bitcoin futures ETFs. As a consequence, according to the Court, they should have the same probability of detecting fraudulent or manipulative conduct in the Bitcoin and Bitcoin futures market.

BlackRock and Fidelity, by the way, are seeking SEC approval for Bitcoin spot ETFs. In fact, SEC Chairman Gary Gensler said Wednesday that “agency staff are working on those multiple filings.” In itself, referring to the existing proposals it received.

The US Court ruling is progress towards the approval of Bitcoin ETFs, which would facilitate the integration of cryptocurrencies into banking transactions. In fact, one might think that Bitcoin (BTC) reacted upwards after the news, trading above $33,000.

All Hope in a Bitcoin Spot ETF

Entry into the crypto sector skyrockets due to the chances of approval of a spot Bitcoin ETF. And it’s not just about income through exchanges or other digital asset trading platforms.

At the same time, high dynamics are also noted in over-the-counter (OTC) desktop wallets. These are the popular over-the-counter desk wallets. With them, market participants can exchange digital currencies across exchanges.

In the latter case, the Glassnode portal confirms that there is a notable increase in OTC income towards the cryptocurrency area. On the other hand, it should be taken into consideration that the Purpose Bitcoin ETF, with an approximate holding of 25,000 BTC, also presents a strong inflow during the last month.

The entrances of the latter cannot be considered large. Despite this, the proportional growth it experiences should not be overlooked.

Regarding entry through trading platforms, the rise of optimism is clearly noticeable. Consequently, it can be said that the general outlook towards the cryptocurrency market seems to be in one of the best moments of 2023.

The aforementioned report emphasizes that positive income for the crypto market reaches the fourth consecutive week. Regarding crypto assets under management (AuM), they are experiencing growth of more than 15% and are at the best point since mid-August.

By Audy Castaneda

FTX Creditors Warned of Phishing Threat in SBF Trial

Leonardo Perez
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FTX Creditors Warned of Phishing Threat in SBF Trial

FTX creditors face phishing hacks promising quick withdrawals of assets stuck after the exchange collapse in 2022. These fraudulent emails encourage creditors to transfer assets to their wallets, avoiding waiting periods and bankruptcy proceedings in progress. FTX actively sought funding from large corporations such as BlackRock and Google before its collapse last year.

FTX creditors are in the crosshairs of phishing hacks, which promise quick withdrawals of trapped assets left after the exchange’s collapse last November. These phishing attempts coincide with revelations that the bankrupt company had sought financial support from industry giants such as BlackRock and Google before its implosion.

The Alleged FTX Phishing Hacks

On October 20, Sunil, a prominent advocate for FTX creditors, advised FTX creditors not to click on any suspicious links in emails from attackers posing as FTX entities. These fraudulent emails promised creditors quick withdrawals and encouraged them to transfer their assets to their wallets. These instructions ignore the waiting periods and legal procedures in place surrounding bankruptcy proceedings.

According to the email, “priority customers” can now expedite the asset withdrawal process from the FTX platform. Part of it says the following:

“As a priority customer, you can now undergo the process of withdrawing your assets on the FTX platform and depositing them directly into your wallet, eliminating any waiting period and court results.

Meanwhile, this is not the first time FTX creditors have been hacked via a phishing scam. In August, the exchange confirmed that its bankruptcy claims agent, Kroll, suffered a breach that compromised customers’ personal information. It was unclear whether the hackers were using the stolen personal information in this incident.

Notably, these phishing hacks occur against the pending acquittal of FTX creditors. FTX recently proposed a resolution that will allow users to potentially recover around 90% of their assets starting next year.

FTX Sought Financing from Large Companies Before the Collapse

SBF founded FTX in 2019, locating its headquarters in the Bahamas. Before the crash, it was on par with Binance. In fact, its media activity has always surpassed the popularity of Zhao’s exchange. FTX’s success was unquestionable in May 2022, when it launched its stock trading tool. By then, the FTT token had been in use for some time and its performance in the market was promising. The disaster of November 2022 ended all this.

Before the collapse, FTX presented itself as a kind of brand in the crypto space. The exchange and SBF came to be seen as market heroes, rescuing companies with severe liquidity problems.

As the trial of FTX founder Sam Bankman-Fried unfolds, new insights continue to emerge about the company’s management practices and the events that led to the exchange’s downfall.

Evidence presented during the trial reveals that FTX had sought funding from corporate heavyweights such as BlackRock and Google before its collapse. This request for financing coincided with the company’s serious liquidity crisis, which ended up causing its implosion.

Additionally, the evidence highlights several rounds of financing efforts by the company, including some that did not materialize. Notably, in the C1 funding round, FTX had identified 15 potential investors, including BlackRock, Google, and Apollo.

While the company spoke to Apollo, BlackRock and Google were reportedly conducting their due diligence. BlackRock CEO Larry Fink said the asset manager invested $24 million in FTX before it collapsed last year.

By Leonardo Pérez

Bitcoin Collapses 10% in Argentina: Sergio Massa and Javier Milei Will Go to the “Run-Off”

Audy Castañeda
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Bitcoin Collapses 10% in Argentina: Sergio Massa and Javier Milei Will Go to the “Run-Off”

The hype caused by the elections in Argentina has arrived and ended: Sergio Massa won in the first round and will face Javier Milei in the runoff. As with currencies and cryptocurrencies, the diversity of dollars that exist in Argentina creates a climate of uncertainty. Amid the hype, speculation and uncertainty, the price of Bitcoin in Argentina plummeted 10%.

The hype caused by the elections in Argentina has arrived and ended: Sergio Massa was the winner of the first round, in an event that will continue next November. In the meantime, the price of Bitcoin experienced a considerable drop in the South American country.

Sergio Massa’s victory in the Argentinian presidential first round elections further stirred Bitcoin’s volatility in the South American country, and the cryptocurrency fell approximately 10% throughout the day.

Argentina: Bitcoin Falls 10%

As with currencies and cryptocurrencies, the diversity of dollars that exist in Argentina creates a climate of uncertainty. In the midst of this adverse scenario, Argentines turned to cryptocurrencies (especially stablecoins) to overcome the great inflation that plagues the South American country.

Amid the hype, speculation and uncertainty, the Bitcoin price in Argentina is trading at approximately 33 million pesos, according to data from the Ripio cryptocurrency exchange. Thus, it registers a drop of approximately 10% in the last 24 hours.

Earlier, the crypto dollar was reported to have skyrocketed in Argentina within the framework of the electoral elections held today. Even on various platforms, the price of Bitcoin was well above the price of the crypto dollar.

The crypto dollar had experienced a notable increase on the eve of the presidential elections in Argentina. Various users and platforms show that the crypto dollar is trading between 1,200 pesos and even above 1,300 pesos. At the beginning of October, its price was around 900 pesos. In the midst of the rally that this price is experiencing, the user expressed on X (Twitter) “Will we reach 1500 today? Place your bets.”

Bitcoin Update: Today’s Price

In Europe today, after the opening, Bitcoin was trading at 09:00 a.m. at 32,524.31 euros, which implied a change of 2.4% compared to the previous session’s records. In relation to the profitability of the last seven days, Bitcoin marks an improvement of 8.95% and since a year ago it still maintains an increase of 39.09%.

The volatility referring to the last week is 22.3%, which is a figure clearly lower than the annual volatility figure (40.28%), therefore in this last phase it is trending less variations than usual. The new currency has reached a maximum exchange rate of 35,342.52 euros, while its lowest level has been 17,604.07 euros. The decentralized currency is positioned closer to its maximum than its minimum.

Sergio Massa: the Promoter of a CBDC for Argentina

Despite Massa’s partial victory, he still has to face the “runoff” (second round) against Javier Milei. Sergio Massa is the current Minister of Economy of Argentina, a country that is experiencing triple-digit inflation for the first time since 1991.

The economist has also been in the news lately for his stance in favor of a central bank digital currency (CBDC) for Argentina.

As for Javier Milei, many classify him as a new “Nayib Bukele” due to his apparent “pro Bitcoin” stance. However, the crypto community remains skeptical. The user @MadisIT pointed out the following through the social network X:

“[…] Milei has never said he is pro-Bitcoin. He is pro-freedom. Argentina’s central bank will close, the government will use dollars for taxes, but people and companies in the private sector can choose the money they see fit. Whether it be Bitcoin, USD, gold or seashells.”

By Audy Castaneda

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