Category: Cryptocurrency

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On Wednesday, a significant crypto whale moved 12,000 ETH to Binance, as reported by Lookonchain. Despite ongoing regulatory concerns, Ether saw an 11% surge in value on the same day.

The investor, identified as a whale due to their substantial holdings acquired since 2017, transferred a sizable amount of ETH to Binance, possibly indicating an intention to liquidate the holding. The transaction, conducted by the address x50b42514389F25E1f471C8F03f6f5954df0204b0, amounted to $42.8 million at the time of transfer, constituting about 0.01% of the total circulating supply of Ethereum.

This transfer follows a similar move just a day prior when the same address shifted nearly 9,000 ETH to Binance, accompanied by the withdrawal of 30 million USDT (Tether), the largest dollar-pegged cryptocurrency.

The action prompted speculation within the crypto community, with Lookonchain suggesting the possibility of the whale selling the ETH. Such transfers to cryptocurrency exchanges often precede the selling or utilization of coins for margin trading in derivatives markets, potentially leading to increased price volatility.

Despite regulatory uncertainties, Ether’s value soared to $3,500 on Wednesday, marking an 11% increase from the previous day’s decline. The market rally persisted despite reports of the U.S. Securities and Exchange Commission’s consideration of classifying ETH as a security, a move that could impact the listing of spot ether exchange-traded funds and introduce stricter regulations for Ethereum-related projects.

However, data from Deribit’s options market indicates that traders maintain a more bearish outlook on Ether compared to Bitcoin (BTC). Options expiring in one week and one month show a premium on Ether’s put options, suggesting a prevailing sentiment of caution among traders.

A put option grants the purchaser the right, but not the obligation, to sell the underlying asset at a predetermined price on or before a specified date, indicating a bearish stance and a strategy to profit from or hedge against potential price declines.

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Cryptocurrency exchange OKX has informed its clients that it will no longer offer services in India. Customers are required to close their positions by the end of April, after which they can only withdraw their funds. The exchange cited regulatory considerations in the country as the reason for this decision.

In a notice, OKX informed its Indian clients that they must close all margin positions, as well as positions in perpetual, futures, and options, and withdraw all funds by April 30. The notice stated that after this date, accounts will be restricted to withdrawals only.

India brought digital asset service providers under its anti-money laundering framework in March 2023. Exchanges intending to operate in the country are required to register with the Financial Intelligence Unit India (FIU IND) and adhere to regulatory guidelines. However, as of the end of 2023, OKX had not completed this registration process.

The Indian government has been cracking down on exchanges operating illegally within its borders. In December, the FIU IND issued notices to nine exchanges deemed to be operating illegally, including Binance, Kraken, and MEXC Global. Notably, OKX should have been included in this list.

According to sources familiar with the matter, several of the exchanges that received notices have engaged in discussions with Indian authorities to resolve the situation.

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The cryptocurrency markets witnessed a tumultuous 24-hour period influenced by regulatory uncertainties and macroeconomic decisions.

Overnight, the crypto markets experienced significant volatility with bitcoin and ether initially declining before bouncing back to trade 15% higher than their lows on Wednesday.

The drop on Wednesday was attributed to profit-taking following last week’s rally and a wave of leveraged bets on higher prices, with some traders pointing to a technical downtrend.

Market sentiment shifted after U.S. Federal Reserve Chair Jerome Powell’s dovish FOMC speech, leading to a surge in BTC, ETH, and other major tokens, particularly layer-2 platforms and meme coins.

The inherent volatility of crypto markets was evident as bitcoin (BTC) and ether (ETH) fluctuated, ultimately rebounding to trade 15% above their Wednesday lows.

BTC and ETH recorded gains of up to 11% in the past 24 hours, leading the rally among major tokens. Other tokens like Solana’s SOL, Cardano’s ADA, and BNB Chain’s BNB also saw gains of up to 8%, according to data from CoinGecko. The CoinDesk 20 Index, measuring the broader crypto market, was up by 7.62%.

Layer-2 platform tokens, based on Ethereum, experienced an average increase of 25% in the past day, as per CoinGecko data. Meme coins followed suit with a 16% surge.

On Wednesday, markets began to decline in early Asian trading due to profit-taking and leveraged bets, resulting in a 15% drop in overall market capitalization over the past week. Some traders speculated that bitcoin showed signs of a technical downtrend, indicating potential further losses.

Sentiment shifted later in the day after Jerome Powell’s FOMC speech, which maintained a dovish tone despite higher-than-expected inflation figures.

Singapore-based trading firm QCP Capital noted in a daily update that spot transactions were driving demand, rather than futures-led trading, suggesting genuine market demand.

Dogecoin (DOGE) saw an 18% jump following news of a Coinbase filing on March 7, indicating plans to offer DOGE, Litecoin (LTC), and Bitcoin cash (BCH) futures by April 1.

Some traders viewed this move as a potential precursor to a spot DOGE exchange-traded fund (ETF).

Coinbase, known for its stringent listing criteria and regulatory compliance, stated in the filing that DOGE had evolved beyond a mere “joke” token, highlighting its enduring popularity and strong community support.

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Coinbase (NASDAQ:COIN) Global Inc. is set to bolster its trading infrastructure in response to challenges faced by users during a significant upswing in Bitcoin prices towards the end of February, according to CEO Brian Armstrong. The platform encountered issues due to an unforeseen surge in trading volumes that surpassed the company’s predictive models, even accounting for preparations for volumes up to ten times the norm following the approval of spot Bitcoin exchange-traded funds (ETFs). This surge in trading activity was primarily fueled by Bitcoin’s attainment of new all-time highs, soaring above $73,000 in the initial weeks of March. The interest in recently approved ETFs backed by Bitcoin, spearheaded by major players such as Fidelity and BlackRock Inc (NYSE:BLK), notably contributed to this heightened trading volume. These ETFs have collectively accrued over $12 billion since their green light in January. Armstrong underscored the surge in trading volume as emblematic of the wider adoption of digital assets, stressing the significance of reliable infrastructure to sustain this expansion.

Market Overview

• Coinbase experienced trading outages due to Bitcoin’s price surge at the end of February.
• Interest in Bitcoin ETFs, particularly from Fidelity and BlackRock, drove record trading volumes.
• Bitcoin soared to new all-time highs, surpassing $73,000 in early March.

Key Points

• Coinbase intends to boost investment in trading infrastructure following unforeseen spikes in trading volume.
• The company had previously prepared for a tenfold increase in trading volume, which was surpassed.
• ETFs backed by Bitcoin have been instrumental in driving increased trading activity, accumulating over $12 billion since January.

Looking Ahead

• Continued investment in Coinbase’s trading infrastructure to manage surges in trading volume.
• Monitoring the impact of Bitcoin ETFs on market dynamics and trading volumes.
• Emphasis on the importance of robust infrastructure to facilitate broader adoption of digital assets.

Conclusion

Coinbase’s encounter with unprecedented trading volumes underscores the escalating interest and adoption of digital assets, underscored by the successful introduction of Bitcoin-backed ETFs. This scenario underscores the imperative for ongoing enhancement and investment in trading infrastructure to accommodate rising demand and ensure user reliability. Moving forward, the focus will be on augmenting infrastructure capabilities to support the dynamic and swiftly evolving digital asset market, marking a significant phase in the maturation and broader acceptance of cryptocurrencies.

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Bitcoin’s recent surge to a new record high has been followed by a pullback, but crypto enthusiasts remain confident in the digital currency’s future.

After reaching nearly $74,000, Bitcoin has dropped by as much as 13%, trading around $68,000 recently. This correction is not unusual in the volatile crypto market, and Bitcoin is still up by about 50% for the year, largely driven by excitement surrounding the SEC’s approval of 11 spot ETFs in January.

The recent sell-off is attributed to profit-taking, as investors lock in gains from the sustained rally. Other cryptocurrencies, like Ether and Solana, have also seen declines, with Ether down 8% and Solana down 12% in recent days.

Despite short-term fluctuations, some analysts remain bullish on Bitcoin, especially with the upcoming “halving” event expected in April. During this event, the reward for mining new blocks of Bitcoin will be halved, reducing the token’s supply and potentially driving up its price.

Past halving events have led to significant price increases for Bitcoin, with the cryptocurrency surging from under $9,000 to about $60,000 in less than a year after the 2020 halving. Analysts believe that Bitcoin’s increased mainstream acceptance this time around could lead to sustained demand and further price growth.

While some market observers warn of potential risks, such as an economic slowdown prompting investors to sell riskier assets like Bitcoin, others see the current environment as supportive of further gains. The combination of halving and the rise of spot Bitcoin ETFs could create an “explosive set-up,” according to some analysts, potentially pushing Bitcoin into uncharted territory.

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Cryptocurrencies swiftly rebounded from their recent pullback as the Federal Reserve’s comments restored risk appetite in global markets, attracting buyers back to the crypto space. Within 24 hours, the total market capitalization surged by 7.7% to $2.55 trillion. While Bitcoin showed a similar growth pattern, Ethereum and Solana saw even stronger gains, adding around 10%.

Bitcoin maintained levels above 61.8% of its rally, staying around $60.3K, indicating resilience in the face of recent volatility. If the current positive sentiment persists, the next major target for Bitcoin could be a return to its previous highs above $73K.

Ethereum’s price reversed upwards after briefly touching the 50-day moving average, confirming that the recent correction was a temporary setback rather than a trend reversal. Solana, which experienced a more significant dip of over 22% between March 18th and 20th, falling from $210 to $162, has also recovered, currently trading around $190.

Technical indicators for all three cryptocurrencies suggest a bullish trend, with a strong recovery following the recent pullback. The market sentiment was buoyed by weakness in the Fed and other central banks, prompting active buying.

In Other News

S&P Global Ratings issued its ninth “stability assessment” of major stablecoins, rating USDC, USDP, and GUSD as “strong,” while Mountain Protocol’s USDM received an “adequate” rating. USDT, DAI, and FDUSD were rated “limited.” Four stablecoins had their ratings downgraded due to transparency and risk-related concerns.

BlackRock, the largest asset management company, filed to launch a USD Institutional Digital Liquidity Fund, marking its first fund with tokenized assets.

The SEC is reportedly looking into designating Ethereum as a security, according to Fortune, citing unnamed US companies subpoenaed for the investigation.

Bloomberg reported that the likelihood of spot Ethereum ETFs being approved in the US in May is diminishing, as regulators appear hesitant.

Since March 12th, the Solana ecosystem has hosted 33 pre-sale fundraising campaigns for token launches, raising a total of 796,000 SOL (~$139 million). The largest pre-sale was for the Book of Meme (BOME) meme token, which has surged in value by approximately 40,000% since its launch.

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In a move that signals increasing mainstream acceptance, Coinbase Derivatives is set to introduce futures trading for three prominent cryptocurrencies: Dogecoin, Litecoin, and Bitcoin Cash, beginning April 1.

Using self-certification with the Commodities Futures Trading Commission (CFTC), Coinbase aims to swiftly list these futures contracts while ensuring compliance with regulatory standards. These cryptocurrencies, stemming from Bitcoin, which the Securities and Exchange Commission (SEC) acknowledges as a commodity, have been chosen for futures trading, leveraging their established status within the crypto market.

Dogecoin, initially conceived as a lighthearted meme, is now receiving serious attention as it joins the roster of tradable assets. Coinbase’s announcement to launch monthly cash-settled futures contracts for Dogecoin, Litecoin, and Bitcoin Cash was communicated to CFTC Secretary Christopher Kirkpatrick in separate letters dated March 7. The letters outlined key details such as contract sizes, settlement methods, and the utilization of a benchmark rate by Market Vector.

Coinbase’s decision to utilize the self-certification route under CFTC Regulation 40.2(a) underscores its commitment to regulatory compliance. This approach allows for the introduction of new offerings without direct CFTC approval, provided the products adhere to the Commodity Exchange Act and CFTC regulations.

The regulatory classification of these cryptocurrencies as commodities, rather than securities, raises intriguing questions within the industry. Bloomberg Intelligence ETF research analyst James Seyffart noted the significance of this development, particularly in distinguishing these assets as “commodities futures” rather than “securities futures.” Given their lineage from Bitcoin, arguing for their classification as securities would pose challenges, especially following the approval of spot Bitcoin ETFs. Coinbase’s strategic selection of these cryptocurrencies for futures trading reflects a nuanced understanding of regulatory dynamics and market trends.

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Discussions among lawmakers have stagnated for months as the upcoming election season draws near, rendering the passage of bills in Washington nearly impossible.

Despite this, lawmakers involved in drafting stablecoin bills express optimism about legislative progress in both the Senate and the House. However, a stablecoin bill, viewed as relatively achievable compared to other crypto-related bills, has encountered obstacles, with time running out to bring it to a vote.

A stablecoin bill spearheaded by House Financial Services Committee Chair Patrick McHenry, R-N.C., made headway out of the committee over the summer. However, it faced bipartisan contention, with Congressional Republicans attributing opposition to the White House. Notably, top Democrat Maxine Waters of California criticized the bill as “deeply problematic,” citing a provision allowing state regulators to approve stablecoin issuances without Federal Reserve input.

Although Waters and McHenry have increased their interactions since then, discord persists regarding the primary regulator for stablecoin issuers.

McHenry remarked on Wednesday at Coinbase’s Update the System Summit, indicating a “workable frame” for progress. He emphasized the need for a legislative vehicle and a deadline to address unresolved issues effectively.

Cody Carbone, vice president of policy for the Chamber of Digital Commerce, noted ongoing talks between McHenry and Waters’ teams but highlighted minimal progress on substantive issues.

Regarding the bill’s prospects in the House, Carbone suggested a 50% chance of passage but a mere 5% likelihood of enactment into law due to various complexities.

Uncertainty also looms in the Senate, where Sens. Kirsten Gillibrand, D-N.Y., and Cynthia Lummis, R-Wyo., aim to unveil a stablecoin bill focusing on regulatory clarity and consumer protection. However, uncertainties surround the bill’s details and completion strategy, with discussions facing setbacks.

Lummis expressed optimism about bipartisan efforts, citing Senate Majority Leader Chuck Schumer’s openness to consider such legislation. She anticipates progress on stablecoins in 2024.

Despite challenges, stakeholders are encouraged by legislative efforts in both chambers, expressing optimism about achieving consensus before the year concludes.

However, hurdles remain, with the Senate Banking Committee prioritizing other issues, potentially impeding progress on stablecoin legislation. Efforts to package bills, such as a potential compromise between stablecoin and marijuana banking bills, offer glimmers of hope, but challenges persist in navigating House gridlock.

Ultimately, lawmakers aim to position themselves for the next Congress, emphasizing the importance of advancing stablecoin legislation despite potential delays beyond the year’s end.

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The Ethereum Foundation, the core entity behind the Ethereum ecosystem, is under scrutiny as reports surface of an ongoing investigation by an undisclosed “state authority.” This revelation comes amidst past legal inquiries, including allegations linked to the 2016 Gatecoin hack.

In a GitHub commit dated February 26, 2024, the Ethereum Foundation disclosed receipt of a voluntary inquiry from a state authority, coupled with a strict confidentiality mandate. Details regarding the nature of the inquiry and the identity of the authority remain undisclosed.

CoinDesk noted the removal of a disclosure from the Ethereum Foundation’s website, previously asserting no contact from any agency necessitating non-disclosure. Additionally, the website’s warrant canary, a signal indicating the absence of covert government subpoenas or requests, was also removed in the same GitHub commit.

The elimination of the warrant canary raises community concerns, as it traditionally serves as a subtle indicator of potential government involvement. Typically, companies employ warrant canaries on their websites to signal receipt of secret government requests.

Previous legal scrutiny faced by the Ethereum Foundation, particularly concerning its alleged involvement in the 2016 Gatecoin hack, adds context to this recent development. Accusations brought forward by on-chain forensic analyst TruthLabs targeted key figures such as Vitalik Buterin and Joseph Lubin, sparking intense community debates and prompting an independent legal investigation.

It remains unclear whether the ongoing investigation is linked to past incidents or pertains to a separate matter. Concurrently, the Securities and Exchange Commission (SEC) continues evaluating multiple applications for an Ether Exchange-Traded Fund (ETF). However, analysts express waning optimism regarding approval, citing limited engagement between applicants and SEC officials.

In response to the news, Ethereum ($ETH) experienced a sudden 3% decline within minutes, currently trading at $3,285 according to CoinMarketCap.

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VICTORIA, Seychelles, March 20, 2024 /PRNewswire/ — KuCoin, a leading global cryptocurrency exchange, has been acclaimed by Forbes Advisor as one of “The Best Crypto Apps & Exchanges of March 2024“, a continued honor after being recognized by Forbes as one of the Best Crypto Exchanges in 2023. Forbes Advisor meticulously evaluated key variables encompassing the quality of exchange platforms, ultimately recommending KuCoin as a compelling choice for both new and experienced investors.

Forbes Advisor recognized KuCoin for its exceptional attributes that distinguish itself within the industry. With over 800 different cryptocurrencies available for trading, earning, and investment, KuCoin has solidified its position as a leading player with an extensive range of altcoins offered at low fees.

Johnny Lyu, CEO of KuCoin emphasized, “KuCoin is honored to receive this prestigious recognition from Forbes Advisor and remains dedicated to delivering innovative solutions and exceptional trading experiences for its customers.”

KuCoin was also named as one of the Best Crypto Exchanges and Best Staking Platform for 2023 by Forbes Advisor, top 50 companies in the 2023 Hurun Global Unicorn List, the Most Recommended Exchange by Finder’s Award 2023, and the Best Crypto App for enthusiasts by The Ascent. Earning this coveted recognition “Best Crypto Apps & Exchanges of March 2024” from Forbes Advisor serves as a testament to KuCoin’s substantial contributions to the crypto trading industry, solidifying its position as a leading platform of choice.

About KuCoin

Launched in September 2017, KuCoin is a global cryptocurrency exchange with its operational headquarters in Seychelles. As a user-oriented platform with a focus on inclusiveness and community action reach, it offers over 800 digital assets and currently provides Spot trading, Margin trading, P2P Fiat trading, Futures trading, and Staking to its 30 million users in more than 200 countries and regions. KuCoin is currently one of the top 8 crypto exchanges. In 2023, KuCoin was named one of the Best Crypto Exchanges by Forbes and recognized as a highly commended global exchange in Finder’s 2023 Global Cryptocurrency Trading Platform Awards. Learn more at https://www.kucoin.com/.

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