2024-03-19 15:40

Copyrighted Image by: Reuters The ongoing correction in Bitcoin price, characterized by the liquidation of excessively bullish positions, may indeed represent a compelling 'buy the dip' opportunity for astute investors. With Bitcoin firmly establishing itself as a crucial institutional asset, the emergence of new Bitcoin Exchange Traded Funds (ETFs) marked a significant milestone. “Bitcoin is now an important institutional asset unlike ever before,” analysts at Decimal Digital Currency said in a note. These ETFs are not only witnessing substantial weekly net inflows, but they also collectively hold a staggering amount of Bitcoin, surpassing the 1 million mark when considering entities like MicroStrategy. This accumulation trend is already exerting its influence on Bitcoin's price trajectory, with the impending halving set to reduce monthly new BTC supply by approximately $800 million at current prices. Decimal Digital Currency analysts foresee this dynamic fueling further ascent towards new all-time highs throughout 2024. Still cryptocurrency investors often find themselves vulnerable to significant losses when market sentiment undergoes a reversal. “We are not surprised to see this correction ahead of the halving, liquidating the more extreme bullish bets before an upward continuation, and would definitely call something like this a ‘buy the dip’ opportunity,” they said. Analysts anticipate a period of extreme bullish activity, punctuated by occasional dramatic sell-offs, as market participants navigate their pre- and post-bitcoin halving strategies. While investors rush to accumulate Bitcoin, analysts warn that “price action takes time to follow local supply and demand.” “We may see exuberant bullish action, dramatic sell offs, or both, before and after the halving as market participants roll into and out of their halving bets,” analysts at Decimal Digital Currency further noted. https://www.investing.com/news/cryptocurrency-news/analysts-not-surprised-to-see-a-bitcoin-price-correction-ahead-of-halving-3344402

2024-03-19 14:54

Copyrighted Image by: Reuters Brokerage firm Bernstein highlighted a positive medium-term outlook for Ethereum, driven by the potential approval of Ethereum-based exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). In a recent research report, Bernstein said that Ethereum's native cryptocurrency, Ether (ETH), stands a big chance of receiving spot ETF approval, becoming the second digital asset to achieve this milestone after Bitcoin. According to Bernstein, the probability of Ether spot ETF approval by May is about 50%, with a near-certain chance within the next 12 months. This optimistic forecast is buoyed by interest from financial heavyweights like Franklin Templeton, BlackRock (NYSE:BLK), and Fidelity, which have already seen Bitcoin ETFs approved and are now applying for Ether counterparts. Furthermore, Bernstein's report suggests that other leading blockchain ecosystems like Solana, BNB Chain, Avalanche, Aptos, and SUI could collectively fetch a $1.4 trillion valuation. Solana, in particular, is expected to lead in developing consumer-driven applications such as stablecoin payments and gaming. "We expect Solana to lead the charge of fast throughput blockchains, which offer a more optimum design and user experience for more consumer driven applications i.e stablecoin payments and consumer gaming," the report reads. Bernstein analysts also highlighted Ethereum's appeal to mainstream institutional adoption, citing its staking yield dynamics, environmentally friendly design, and the network's capacity to develop new financial markets. The report suggests that the growth of Ether yield markets could lead to fresh ETF designs that incorporate staking yields. The report further underlines Ethereum's utility beyond merely serving as an asset for ETFs. Institutions are keen on using the Ethereum network to create more transparent and open tokenized financial markets, indicating the broad use cases the coin offers beyond asset gathering. Ethereum's newest Dencun upgrade was highlighted for its success in reducing transaction costs by 50%-90. Bernstein projects the Ethereum ecosystem to reach a valuation of $1.8 trillion, including the Ethereum network, staking infrastructure, layer 2 chains, and Ethereum-based DeFi apps. According to analysts at Bernstein, Bitcoin's recent $10,000 retreat from all-time highs of over $73,000 to around $63,000 presents a dip buying opportunity ahead of the upcoming halving in April. In a note to clients, Bernstein described the current phase of consolidation in Bitcoin as temporary, which offers a chance for traders to reposition their risk before the halving event. The analysts maintain a bullish outlook on Bitcoin and the entire crypto ecosystem, viewing the next 18 months as an opportunity for growth. Bernstein previously argued that public miner stocks are the best equity proxy to Bitcoin's price trajectory, especially as it heads towards their 2024-2025 cycle target. They also predicted a threefold surge in the overall crypto market cap to $7.5 trillion by the end of 2025. https://www.investing.com/news/cryptocurrency-news/bernstein-says-ethereum-and-solana-are-next-as-bitcoin-dominates-financial-markets-3344276

2024-03-19 13:55

Copyrighted Image by: Reuters Investing.com -- MicroStrategy (NASDAQ:MSTR), the renowned business intelligence firm and self-proclaimed "world’s first Bitcoin development company," has once again made headlines with its latest move in the cryptocurrency space. On Monday the company completed its previously announced offering of 0.875% convertible senior notes due 2031, raising an aggregate principal amount of $603.75 million. This offering, which included an additional $78.75 million from an option exercised by initial purchasers, was completed through a private offering to qualified institutional buyers under Rule 144A of the Securities Act. The net proceeds from this offering, totaling approximately $592.3 million, were swiftly deployed by MicroStrategy for its ongoing Bitcoin acquisition strategy. With a keen eye on bolstering its already impressive Bitcoin reserves, MicroStrategy wasted no time in using these funds to purchase additional Bitcoin. MicroStrategy's relentless pursuit of Bitcoin accumulation has seen them acquire an additional 9,245 BTC, worth a staggering $623 million. This latest acquisition further solidifies MicroStrategy's position as one of the largest corporate holders of Bitcoin in the world with a total holding of 214,246 BTC. Former CEO Michael Saylor, a vocal advocate for Bitcoin, took to X (formerly Twitter) to announce the acquisition of these newly minted digital assets. Saylor highlighted that the purchase was made using proceeds from the convertible notes offering, along with excess cash on hand. The average price per Bitcoin for this acquisition was $67,382, bringing the total value of MicroStrategy's Bitcoin holdings to over $7.5 billion. MicroStrategy's aggressive Bitcoin acquisition strategy is part of its broader vision to position itself at the forefront of the digital asset revolution. The company views Bitcoin not only as a treasury reserve asset but also as a strategic investment for long-term value creation. By leveraging its operating structure, financial resources, and technology innovation capabilities, MicroStrategy continues to cement its status as a pioneer in the convergence of traditional finance and the burgeoning cryptocurrency market. Bitcoin is currently trading at $63,646. As Bitcoin continues to capture mainstream attention and adoption, MicroStrategy's unwavering commitment to the digital currency underscores its confidence in the future of decentralized finance. With each strategic acquisition, MicroStrategy reinforces its position as a dominant player in the evolving landscape of digital assets, setting the stage for continued growth and innovation in the years to come. https://www.investing.com/news/cryptocurrency-news/microstrategy-strengthens-bitcoin-position-with-623m-purchase-3344192

2024-03-19 13:17

WASHINGTON D.C. - Genesis Global Capital, LLC has agreed to pay a $21 million penalty and accept a permanent injunction to resolve allegations by the Securities and Exchange Commission (SEC) that it offered and sold securities without proper registration. The settlement, announced today, pertains to the company's involvement with the Gemini Earn program, a crypto asset lending initiative. The SEC had previously charged Genesis and Gemini Trust Company, LLC on January 12, 2023, for their roles in the Gemini Earn program. The program allowed customers to loan their cryptocurrency assets to Genesis in return for interest payments. However, in November 2022, Genesis was unable to fulfill withdrawal requests due to insufficient liquidity amid market volatility, leaving around 340,000 investors without access to approximately $900 million in crypto assets. As part of the settlement, Genesis has not admitted or denied the SEC's allegations but has consented to the final judgment that enjoins the firm from future violations of Section 5 of the Securities Act of 1933. The SEC emphasized that the collapse of the Gemini Earn program highlighted the risks to investors when market participants circumvent federal securities laws. SEC Chair Gary Gensler remarked on the importance of compliance with securities laws for crypto lending platforms and other intermediaries, stating it is crucial for investor protection and market trust. Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, added that no amount of promotion can replace the necessary investor-protection disclosures mandated by law. Genesis, alongside two affiliates, had filed for Chapter 11 bankruptcy on January 19, 2023. The SEC's settlement stipulates that the penalty will be paid after all other allowed claims are settled by the bankruptcy court, including those of retail investors from the Gemini Earn program. The SEC's investigation and subsequent litigation in bankruptcy court were conducted by a team of officials, and the ongoing district court litigation against Gemini is being led by another team within the SEC. The settlement with Genesis marks a continued effort by the SEC to enforce securities laws within the evolving landscape of cryptocurrency markets, based on a press release statement. https://www.investing.com/news/cryptocurrency-news/genesis-settles-with-sec-for-21-million-related-to--crypto-asset-lending-initiative-93CH-3344093

2024-03-19 13:11

Copyrighted Image by: Reuters Bitcoin price extended losses on Tuesday, as the market digests the impact of a record daily outflow from Grayscale's GBTC, the largest spot Bitcoin exchange-traded fund (ETF). On Monday, Grayscale's converted GBTC spot bitcoin ETF saw outflows of $642.5 million, surpassing the previous record of $640.5 million set on January 22. Additionally, Fidelity's Bitcoin ETF, the second-largest fund, saw its inflows drop to a mere $5.9 million, the lowest since its inception, according to Farside Investors data. The leading digital currency fell up to 7.1% on Tuesday, with its value hovering around $62,500 in London's morning trading session. Other major cryptocurrencies, including Ethereum, Solana, and Dogecoin, also saw declines. The overall market for spot Bitcoin ETFs reported a net outflow of $154.3 million. Despite $451.5 million inflows into BlackRock’s dominant IBIT ETF, the sector couldn't offset GBTC's massive outflows, leading to a net negative flow for the first time since March 1. Spot Bitcoin ETF trading has seen a bit of a slowdown lately, with the daily trading volume for U.S. funds decreasing to $4.2 billion on Monday. This volume is substantially lower compared to the previous week's range of $5.5 billion to $7.7 billion and is less than half of the record daily trading volume of $9.9 billion set on March 5. BlackRock (NYSE:BLK)'s IBIT ETF maintained its lead in trading volume, reaching $2 billion yesterday, while Grayscale's GBTC and Fidelity's FBTC followed with $1 billion and $630 million, respectively. The cumulative trading volume for all spot bitcoin ETFs now stands at $145.8 billion, with BlackRock’s IBIT capturing a 48.7% market share by trading volume. Meanwhile, Grayscale is planning to cut the fees for its flagship product, according to CEO Michael Sonnenshein. The announcement comes as the manager of the $26-billion Bitcoin Trust has experienced outflows totaling more than $12 billion since its conversion into an ETF in early January. Sonnenshein revealed these plans during an interview with CNBC, suggesting that the reductions would occur as the crypto ETF market continues to mature. Historically, GBTC has been criticized for its higher-than-average fees, especially in comparison to traditional ETF providers like BlackRock and Fidelity. Currently, Grayscale charges a 1.5% management fee for GBTC holders. Sonnenshein defended the fee structure, citing the early-stage development and unique challenges of the crypto ETF market. However, he acknowledged that fees are expected to decrease over time with market maturity and fund growth. https://www.investing.com/news/cryptocurrency-news/640m-exits-grayscales-bitcoin-etf-gbtc-in-single-day-as-crypto-sentiment-cools-3344051

2024-03-19 13:10

Bitcoin (BTC) saw a significant drop of 6% on Tuesday, marking its biggest single-day decline in two weeks, caused by a widespread sell-off across cryptocurrencies and other risk-prone assets. The cryptocurrency's price fell to $62,966 before slightly recovering to $63,650. Similarly, Ethereum's ether saw a 6.8% decline, as well as other altcoins. Crypto-related stocks tracked Bitcoin’s downswing, with Coinbase (NASDAQ:COIN) dropping 6% and Riot Platforms (NASDAQ:RIOT) losing 4.7% in premarket trading. Similarly MicroStrategy (MSTR) and Marathon Digital (NASDAQ:MARA) plunged 10% and 6.6%, respectively. Despite the day's losses, Bitcoin has still accumulated a 52% gain so far this year, buoyed by the enthusiasm around U.S. exchange-traded funds (ETFs) based on the cryptocurrency. Last Thursday, the leading crypto asset reached an all-time high of nearly $74,000, but recent profit-taking actions and new U.S. economic data have tempered expectations for Federal Reserve interest rate cuts this year, contributing to the decline. Over the past week, BTC’s value has decreased by nearly 9%, its most significant weekly loss since last September. https://www.investing.com/news/cryptocurrency-news/crypto-stocks-in-the-red-as-bitcoin-falls-below-63000-432SI-3344050