2023-11-24 10:04

Copyrighted Image by: Reuters The cryptocurrency market is witnessing a significant turnaround as Bitcoin approaches the $38,000 mark, an encouraging sign for miners who are now seeing their profits reach levels not observed in the last 18 months. This resurgence comes despite recent regulatory actions against major exchange Binance, which suffered a hefty $4.3 billion penalty, and its CEO's guilty plea. On Tuesday, the Bitcoin network's hash rate—a measure of the computational power being used to mine and process transactions—hit a record high of 497 exahashes per second (EH/s). This milestone indicates a strong confidence among miners in Bitcoin's future and an enhanced defense against potential attacks, especially with the next halving event scheduled for April 2024. The news of the soaring hash rate was first announced by PreacherBTC on Twitter on Tuesday, and further confirmed by blockchain.com data on Wednesday, showing an impressive climb to 491 EH/s. The increased hash rate demonstrates improved efficiency and a higher level of miner activity. This week's rally has effectively doubled Bitcoin's value year-to-date, shaking off previous losses from the bear market. The spike in mining profitability, reaching $46.8 million in daily profits for miners, has been partly attributed to growing institutional interest. BlackRock (NYSE:BLK)'s recent application for a Bitcoin ETF with the SEC has ignited a wave of similar filings from other firms, signaling a broader acceptance of cryptocurrencies among mainstream investors. Miners are responding to these developments by upgrading their equipment in preparation for the upcoming halving event when rewards for mining new blocks will be cut in half. This practice could potentially lead to even higher hash rates as miners seek to maximize their returns before the reward reduction takes effect. However, this increased activity has not gone unnoticed by climate regulators and activists who are wary of the energy consumption associated with cryptocurrency mining. As the industry prepares for the April halving and navigates the complexities of regulatory scrutiny and environmental concerns, the current surge in Bitcoin's price and miner profitability marks a pivotal moment for both long-standing participants and newcomers to the crypto space. https://www.investing.com/news/cryptocurrency-news/bitcoin-rallies-towards-38000-miners-see-profit-surge-despite-binance-penalty-93CH-3242571

2023-11-24 10:03

Cryptocurrency exchange Binance has agreed to pay a hefty $4.3 billion settlement with the Department of Justice (DOJ) while navigating through significant liquidity challenges, prompted by a wave of withdrawals totaling approximately $956 million. This financial strain comes in the wake of legal issues faced by its former CEO Changpeng Zhao, which have led to his replacement by Richard Teng. The settlement agreement follows a period of intense scrutiny for Zhao, who has been embroiled in legal difficulties, resulting in a substantial bail bond of $175 million. Amid these challenges, Teng has taken the reins as Binance's new CEO and has been quick to affirm the exchange's robust financial health, emphasizing its position as the leading crypto exchange with substantial assets and no debt. The transition in leadership was announced after Zhao's guilty plea on charges related to anti-money laundering (AML) breaches and sanctions evasion. Alongside Zhao's corporate fine, he has personally been fined $200 million. This leadership change and the resulting settlement with the DOJ were made public through an announcement on a certain platform. In what appears to be a strategic financial move amidst these developments, Binance orchestrated a massive transfer of $3.9 billion in USDT between its wallets. The transaction involved moving funds from Binance-Cold 2 to Binance 3 wallet, with the originating wallet reportedly holding an impressive $6.6 billion in various stablecoins. This series of events marks a pivotal moment for Binance and could set a precedent for regulatory compliance and corporate governance within the cryptocurrency sector. https://www.investing.com/news/cryptocurrency-news/binance-settles-with-doj-for-43-billion-amid-ceo-change-93CH-3242576

2023-11-24 09:48

Copyrighted Image by: Reuters. The cryptocurrency market is abuzz with the latest developments surrounding Binance, one of the world's largest cryptocurrency exchanges. Following a landmark agreement with the Department of Justice (DOJ), and a plea by CEO Changpeng Zhao for financial violations, analysts are optimistic about Bitcoin's trajectory. Analyst Thielen has predicted that Bitcoin may soon exceed the $40,000 mark. Binance has reportedly settled with the DOJ for a staggering $4.3 billion, while Zhao faces a hefty $50 million fine alongside a personal recognizance bond set at $175 million. Despite facing an 18-month sentence, with a hearing scheduled for February 23, Binance is expected to maintain its influential position in the crypto space. In light of these events, Bitcoin has shown remarkable resilience. Contrary to initial concerns that the legal developments might negatively impact its value, the cryptocurrency instead demonstrated a counter-trend reaction. Market observers now anticipate that Bitcoin will surpass $38,000 in the near term and likely hit above $40,000 as December approaches. The positive outlook for Bitcoin also aligns with significant market movements observed in October 2023. A notable surge in Bitcoin's value coincided with the anticipated approval of a U.S. bitcoin spot Exchange-Traded Fund (ETF). Additionally, a $5 billion increase in USDT market capitalization - a popular stablecoin - hinted at institutional investors' growing preference for stablecoins. The recent minting of USDT suggests that more investments could flow into Bitcoin following the settlement news. https://www.investing.com/news/cryptocurrency-news/bitcoin-forecast-to-surpass-40k-after-binance-settlement-93CH-3242556

2023-11-24 09:46

Grayscale Investment's latest report has highlighted XRP as a formidable competitor to traditional cross-border payment systems like SWIFT, citing its ability to facilitate faster transactions at lower costs. The Crypto Sector framework, which evaluates several leading cryptocurrencies, places XRP with a 4% market cap share, ranking it second after Bitcoin (BTC) in terms of market dominance. The analysis by Grayscale comes amidst conversations about the investment firm potentially reinstating support for XRP. This speculation follows the GBTC Trust's anticipated conversion into an ETF and the recent favorable ruling on July 13 that determined XRP is not a security. Despite this ruling, Grayscale has not reintegrated XRP into its GDLC vehicle since halting support in January 2021 due to an SEC lawsuit against Ripple. Bitcoin, meanwhile, received accolades within the report as a financial safe haven for individuals in countries experiencing high inflation rates. Grayscale's framework also reviewed other prominent cryptocurrencies such as Litecoin (LTC), Bitcoin Cash (BCH), Stellar Lumens (XLM), Monero (XMR), and Bitcoin SV (BSV), notably leaving out Ethereum (ETH) from their evaluation. The focus on XRP's potential and Bitcoin's role as a safe haven asset underlines the shifting perspectives in the cryptocurrency market and Grayscale's strategic approach to digital asset investment. As the landscape evolves, Grayscale's actions, especially regarding XRP, are closely watched by investors and industry observers alike. https://www.investing.com/news/cryptocurrency-news/grayscale-considers-xrp-a-strong-contender-in-crossborder-payments-93CH-3242555

2023-11-24 09:44

Copyrighted Image by: Reuters The cryptocurrency market may be on the cusp of a transformative shift as Glassnode, a leading blockchain analytics firm, predicts that the introduction of a spot Bitcoin Exchange-Traded Fund (ETF) could potentially unlock $70 billion in new demand. This surge is anticipated to come from investors reallocating their capital from traditional stock, bond, and gold ETFs. Glassnode's analysis points to a significant tightening in the Bitcoin market, with short-term supply hitting multi-year lows while long-term holdings reach record highs. This existing market tightness is expected to contribute to heightened volatility should the predicted influx of ETF funds materialize. Drawing historical parallels, Glassnode references the impact of gold ETFs on the precious metal's market. Following the introduction of gold ETFs, prices saw an escalation of over 400%. If Bitcoin were to follow a similar trajectory after the launch of a spot ETF, it could signal a major price movement for the digital currency. Investors and market watchers are closely observing these developments, as the potential for a Bitcoin ETF has been a topic of considerable speculation and debate within financial circles. The anticipation builds on the premise that such an ETF would provide easier access to Bitcoin for a broader range of investors, potentially leading to increased adoption and integration into mainstream investment portfolios. https://www.investing.com/news/cryptocurrency-news/bitcoin-etf-could-unlock-70-billion-in-new-demand-glassnode-says-93CH-3242550

2023-11-24 09:43

Copyrighted Image by: Reuters Analysts at JPMorgan have projected a potential outflow of up to $2.7 billion from the Grayscale Bitcoin Trust (GBTC) should it successfully transition into a spot Bitcoin Exchange Traded Fund (ETF). This projection is based on the narrowing of GBTC's discount rate, which has recently decreased from -46% to -9.77%, indicating growing investor optimism for the Securities and Exchange Commission’s (SEC) approval of GBTC’s ETF application. The analysis by JPMorgan, using cumulative signed dollar volume, suggests that investors are likely to capitalize on arbitrage opportunities as a result of the contracting discount rate. While Bitcoin currently trades at $37,560, GBTC shares have seen a significant 27% increase over the past month, with shares trading at $30.45 today. The firm warns that unless GBTC reduces its management fees post-conversion—currently higher than those of ARK 21Shares Bitcoin ETF's 80 basis points—there could be a substantial outflow that might negatively impact Bitcoin valuations. However, analysts expect that most of the capital withdrawn will be reinvested within different Bitcoin-centric portfolios. JPMorgan forecasts an asset reallocation from $23 billion in GBTC and $5 billion in various funds to approximately $20 billion retained by GBTC and $8 billion dispersed among other investments. Despite this, there are concerns about Grayscale’s market share and the possibility of a downturn in Bitcoin prices if investments withdraw from the cryptocurrency sphere altogether. Earlier in September 2023, following Grayscale's legal victory, JPMorgan had anticipated mandatory SEC endorsement for spot Bitcoin ETFs, predicting competitive fee structures similar to those observed with Gold ETFs. In contrast to these expectations, ARK Investment Management and 21Shares recently adjusted their proposed spot Bitcoin ETF (ARKB) management fee upward from the initial proposal of 70 basis points to now 80 basis points. This adjustment goes against the anticipated standard closer to the US ETF average fee of approximately 54 basis points. Investors and market participants are closely monitoring these developments as they could have significant implications for the cryptocurrency market and investment strategies moving forward. https://www.investing.com/news/cryptocurrency-news/jpmorgan-predicts-27-billion-outflow-from-grayscale-bitcoin-trust-93CH-3242546