2024-04-02 08:36

The bitcoin halving, expected in mid-April, remains the main supply-side event, the report said. The bitcoin halving, expected in mid-April, is the standout supply-side event. Wirehouses may be close to approving spot bitcoin ETFs, the report said. Institutional interest in the crypto space remains elevated, according to Coinbase. The crypto market is set up for a positive second quarter with most of the previously identified headwinds in the rear-view mirror, Coinbase (COIN) said in a research report on Friday. These positive factors may "only manifest themselves more clearly starting in the second half of April," Coinbase said. The bitcoin (BTC) reward halving, expected April 16-20, remains the main supply-side event, the report said. The quadrennial halving is when miner rewards are slashed by 50%, thereby reducing the rate of growth in bitcoin supply. "On the demand side, the 90-day review period that many wirehouses employ when conducting due diligence on new financial offerings – like spot bitcoin exchange-traded funds (ETFs) – could conclude as early as April 10," analysts David Duong and David Han wrote. Coinbase notes that wirehouses such as Morgan Stanley (MS), Bank of America (BAC), UBS (UBS) and Goldman Sachs (GS) are "not the only gatekeepers of wealth" and some major U.S. wealth-management platforms operate outside of these large financial institutions. Three months is the normal observation period for some of these large money managers, such as LPL Financial, and Coinbase said this "could yet unlock significant capital for U.S.-based spot bitcoin ETFs over the medium term." Institutional interest in the crypto space remains elevated, the report said, citing the level of leveraged short positions in Chicago Mercantile Exchange (CME) bitcoin futures, which climbed to a record high on March 19. In another positive sign, the total value locked (TVL) in on-chain derivatives has reached an all time high of $3.4 billion, even as the broader decentralized finance (DeFi) TVL remains about 50% off its previous cycle highs, the report added. Investors shorting shares of MicroStrategy (MSTR), the software developer that has made a strategic decision to buy BTC, versus long bitcoin may be contributing to some of the recent market volatility, Coinbase said. https://www.coindesk.com/markets/2024/04/02/crypto-market-setup-looks-positive-for-second-quarter-coinbase/

2024-04-02 08:33

Obtaining the full VARA spot and derivatives license is an important next step in our efforts to raise the overall quality & governance standards of our platform, exchange's new CEO Luuk Strijers told CoinDesk. Virtual Asset Regulatory Authority (VARA) grants a conditional virtual asset provider (VASP) license to Deribit’s Dubai-based entity. The exchange is looking to shift its global headquarters from Panama to Dubai. Deribit, the world’s leading crypto options exchange, said on Tuesday that its Dubai-based unit, Deribit FZE, has won a conditional virtual asset provider (VASP) license from the local regulator. The license allowing FZE to operate as a virtual asset exchange for spot and derivatives trading remains nonoperational until Deribit satisfies all remaining conditions and local requirements of Dubai’s Virtual Asset Regulatory Authority (VARA), Deribit said in the press release. The license, once operational, will allow Deribit to serve institutional and qualified investors while continuing to serve retail investors through its Panama-based broker affiliate. The exchange also said it is looking to shift its global headquarters to Dubai from Panama and announced Luuk Strijers, who served as chief commercial officer since 2019, as the new chief executive officer. “Obtaining the full VARA spot and derivatives license is an important next step in our efforts to raise the overall quality & governance standards of our platform after obtaining ISO and SOC2 certification and appointing non-executive directors. Our strong position in the crypto options market reflects the trust our clients have in us," Strijers told CoinDesk. Deribit accounts for over 85% of the global crypto derivative activity. The platform offers bitcoin (BTC), ether (ETH) and solana (SOL) options, bitcoin and ether perpetual futures, as well futures tied to its bitcoin volatility index, DVOL. A year ago, Dubai’s VARA unveiled a regulatory framework for crypto that included a set of rules and required companies to secure licenses to operate in the country legally. The VASP license is mandatory and a prerequisite for conducting virtual asset business in Dubai. According to White & Case, the license, once obtained, is valid for one year and must be renewed annually. The exchange said it will soon announce plans, terms, and the exact time to start operating under the new licensed entity. https://www.coindesk.com/business/2024/04/02/crypto-exchange-deribits-dubai-based-entity-wins-conditional-vasp-license/

2024-04-02 07:27

The CoinDesk 20 index, which tracks major tokens minus stablecoins, slumped just over 4.5%. Major tokens experienced a significant drop in the past 24 hours, with bitcoin falling 5% and other major tokens like ether, Cardano's ADA, and BNB Chain’s BNB showing similar losses. Liquidations of long positions, or bets on higher prices, amounted to over $400 million, while shorts, or bets against, took on a relatively smaller $85 million. Analysts at Bitfinex suggested that bitcoin is likely to remain range-bound in the coming weeks as long-term investors sell off holdings. Major tokens slid as much as 8% in the past 24 hours as bitcoin (BTC) reversed last week’s gains amid selling pressure caused by a stronger dollar, leading to over $400 million bullish bets being liquidated. Data shows that bitcoin fell 5%, with ether (ETH), Cardano’s ADA, and BNB Chain’s BNB showing similar losses. Solana’s SOL dropped 7% to trade at $185 after briefly touching $200 on Monday, while Dogecoin (DOGE) dropped more than 8%. Bitcoin Cash’s BCH fell 10% amid profit-taking after a 40% rally in the past week, buoyed by the expected halving event for the network on April 4. The broad-based CoinDesk 20, a liquid index tracking major tokens minus stablecoins, slumped just over 5%. Longs, or bets on higher prices, took on more than $400 million in liquidations, with shorts, or bets against, taking on a relatively smaller $85 million. A liquidation happens when a trader has insufficient funds to keep a leveraged trade open. Analysts at crypto exchange Bitfinex told CoinDesk in an email that some long-term investors sold off holdings in the past week, adding they expect bitcoin to be range-bound in the coming weeks. “We believe that bitcoin is likely to continue to consolidate within a range, as previously dormant supply, particularly among Long-Term Holders (LTHs), is being sold (although at a relatively smaller scale than previous bull market tops),” Bitfinex said. “There is strategic profit-taking observed among the LTH cohort (holders of BTC of more than 155 days),” the analysts added. Elsewhere, FxPro senior market analyst Alex Kuptsikevich said in a message that bitcoin faces resistance at the $71,000 level as broader markets show caution against riskier assets. “Bitcoin's fourth attempt to consolidate above $71K this week was unsuccessful. The Nasdaq100 also showed some downward bias, indicating a cautious attitude towards risky assets, although the S&P500 closed at another high,” Kuptsikevich said. “Bitcoin has thus found strong resistance, and the $69.5K and $68.5K levels attract our increased attention.” https://www.coindesk.com/markets/2024/04/02/crypto-bulls-see-400m-liquidations-as-solana-dogecoin-lead-slide-in-majors/

2024-04-02 06:25

The change in scope also includes cross-border money transfers even when the money is not accepted or received in the city-state, and the facilitation of the transmission of crypto between accounts and exchanges, Singapore is now seeking licensing requirements for entities providing custodial and some other services. The changes were passed in parliament in 2021 but Singapore’s central bank made the changes live only on Tuesday. Singapore has expanded the scope of what cryptocurrency-related activities it regulates to include custodial services, the Monetary Authority of Singapore (MAS) announced on Tuesday. The change in scope also includes cross-border money transfers even when the money is not accepted or received in the city-state, and the facilitation of the transmission of crypto between accounts and exchanges, The legislation was passed in 2021 with amendments to the Payment Services Act (PS Act), the framework to regulate payment service providers. It was supposed to be enacted in the fourth quarter of 2021, but the MAS made the changes live only on Tuesday. Since 2021, the cryptocurrency sector has seen huge turmoil with the crash of FTX, leading to regulatory changes across the world. “This is a long-awaited expansion that gives regulatory clarity to key parts of the crypto ecosystem, such as custody services,” said Angela Ang, a senior policy adviser for blockchain intelligence firm TRM Labs and a former MAS regulator. The amendments would impose user protection and financial stability-related requirements on digital payment tokens (DPT) or cryptocurrency service providers. The amendments include “segregating customers’ assets and placing them in a trust account for the benefit of customers, maintaining proper books and records, and ensuring that effective systems and controls are in place” and will take effect within six months from April 4, 2024. Any entity that is already conducting crypto-related activities under the Payment Services Act will need to start a transition process within 30 days and submit a license application within six months from April 4, 2024, to continue activities temporarily till their application is reviewed. The license application will require an attestation report of compliance with requirements around anti-money laundering and countering the financing of terrorism, qualified by an external auditor within nine months. Entities that do not comply with these requirements would have to cease all activities, the MAS said. Read More: Singapore Central Bank Rules to Discourage Crypto Speculation, Ease Investment Qualifications https://www.coindesk.com/policy/2024/04/02/singapore-enacts-licencing-requirements-for-crypto-custody-services-and-others/

2024-04-02 05:33

The U.S. factory activity unexpectedly expanded in March, data released Monday showed, sending the dollar index higher. Bitcoin fell below $66,500 during the Asian hours as the dollar index rose above 105.00 for the first time since mid-November. Data released on Monday shows that U.S. manufacturing activity unexpectedly picked up the pace in March. June Fed rate cut probability dipped below 50% after the manufacturing data. Bitcoin (BTC) faced selling pressure during Asian trading hours on Tuesday as upbeat U.S. factory data lifted the dollar index (DXY) to the highest since mid-November. The leading cryptocurrency by market value fell 4% to $66,342 in a bearish resolution of the recent week-long consolidation between $68,000 and $72,000, CoinDesk data show. The broader crypto market nursed losses, with ether (ETH), Solana's SOL and Dogecoin (DOGE) registering more significant losses. Meanwhile, the broader CoinDesk 20 index fell nearly 8%. The dollar index, which tracks the greenback’s value against major fiat currencies, topped the 105 mark for the first time over four months, taking the four-week gain to 2.58%. A stronger dollar makes dollar-denominated assets like bitcoin and gold expensive, potentially leading to lower demand. Besides, sustained dollar strength is known to cause financial tightening worldwide, denting investors’ willingness to take risks. The Institute for Supply Management’s (ISM) manufacturing purchasing manager’s index (PMI) released Monday showed that factory activity unexpectedly expanded in March, the first growth since September 2022. The PMI rose 2.5 points to 50.3 last month following February’s 47.8 reading. The headline figure crossed into expansion territory above 50, halting 16 straight months of contraction and weakening the case for Fed rate cuts. The new orders index also moved back into expansion territory and the prices index jumped to 55.8%, up 3.3 percentage points compared to the reading of 52.5% in February. According to Bloomberg, the amount of Fed rate cuts priced into swap contracts for this year has declined to less than 65 basis points following the manufacturing report. In other words, the market now expects the Fed to walk back on its forecast of three 25-basis point rate cuts for 2024. The probability the Fed will deliver the first rate cut in June has dropped below 50%. “Markets are focused on the ISM report, though, with 10Y Treasury yields up 10bp on the back of the return of manufacturing growth and higher inflation readings from the sector. There are 20 or so individual Federal Reserve speeches this week, and the market is likely thinking that today’s outcome will make officials wary of committing to significant policy easing,” analysts at ING said in a note to clients on Monday. Some analysts, however, believe the ballooning fiscal debt will eventually force the Fed to cut rates rapidly, offering a major bullish tailwind to crypto prices. The Fed raised rates from zero to 5.5% in 16 months to July 2023 to tame inflation. The so-called tightening was partly responsible for bitcoin’s 80% price crash in 2022. Looking ahead, bitcoin may remain volatile for some time as several job reports are lined up this week, including Friday’s nonfarm payrolls figure and the unemployment rate. Besides, Bitcoin blockchain’s quadrennial mining reward halving is due later this month. https://www.coindesk.com/markets/2024/04/02/bitcoin-drops-over-5-as-upbeat-us-factory-data-powers-dollar-index-to-nearly-5-month-high/

2024-04-02 05:19

Last Thursday, while announcing the sentence U.S. District Judge Lewis Kaplan said Bankman-Fried never offered "a word of remorse" for his "terrible crimes." In an interview with ABC News, FTX founder and former CEO Sam Bankman-Fried said he is remorseful for his actions. Bankman-Fried was sentenced to 25 years in prison last Thursday for his conviction on seven different fraud and conspiracy charges. Sam Bankman-Fried, the founder and former CEO of the defunct crypto exchange FTX, has said that he is remorseful for his actions after he was sentenced to 25 years in prison for fraud last week. Bankman-Fried was interviewed via email by ABC News from the Metropolitan Detention Center in Brooklyn. Last Thursday, while announcing the sentence, U.S. District Judge Lewis Kaplan said Bankman-Fried never offered “a word of remorse” for his “terrible crimes.” “It’s most of what I think about each day,” Bankman-Fried told ABC News. “I never thought that what I was doing was illegal. But I tried to hold myself to a high standard, and I certainly didn’t meet that standard. I’ve heard and seen the despair, frustration and sense of betrayal from thousands of customers; they deserve to be paid in full at the current price.” The former FTX boss said the insolvency of FTX was the result of several “bad decisions” he made in 2022. Bankman-Fried also noted that the customers “could and should” have been paid in 2022, and it’s “excruciating to see them waiting, day after day.” “I’m haunted, every day, by what was lost. I never intended to hurt anyone or take anyone’s money. But I was the CEO of FTX, I was responsible for what happened to the company, and when you’re responsible, it doesn’t matter why it goes bad. I’d give anything to be able to help repair even part of the damage. I’m doing what I can from prison, but it’s deeply frustrating not to be able to do more,” he said to ABC News. On Thursday, Bankman-Fried’s defense team said it would be appealing. During the interview with ABC News, Bankman-Fried said certain trial testimony “greatly misstated what actually happened,” and his defense was “not allowed to introduce crucial evidence or put on important witnesses.” Read all of CoinDesk’s coverage on the Sam Bankman-Fried trial here. https://www.coindesk.com/policy/2024/04/02/sam-bankman-fried-now-feels-remorse-for-his-actions-after-getting-a-25-year-prison-sentence/