2023-11-14 17:31

Copyrighted Image by: Reuters. The cryptocurrency landscape is witnessing a renewed discussion on the merits of Bitcoin versus traditional assets like gold, with prominent figures in the industry weighing in. Changpeng ‘CZ’ Zhao, the CEO of Binance, has endorsed MicroStrategy's substantial investment in Bitcoin, highlighting the digital currency's significant appreciation compared to gold since August 2020. MicroStrategy, led by Michael Saylor, has been an avid proponent of Bitcoin and has amassed 158,400 units of the cryptocurrency at a cost of $4.69 billion. With the price of Bitcoin currently standing at $36,566.96 per coin, this strategy has proven lucrative for the company. As of today, MicroStrategy's Bitcoin holdings are valued at approximately $5.76 billion, reflecting an unrealized profit exceeding $1.1 billion. The company's aggressive acquisition of Bitcoin has not only resulted in substantial profits but also influenced Wall Street's perception of the cryptocurrency. Despite facing skepticism over its volatility, including from financial giants like JP Morgan, Bitcoin's performance has been notable. Since August 2020, Bitcoin has surged by 214%, while gold has seen a 3% decrease over the same period. Zhao's endorsement comes amidst discussions regarding the potential approval of a Bitcoin spot ETF, which could further enhance the cryptocurrency's appeal to institutional investors. This development would mark a significant milestone for Bitcoin's integration into mainstream investment portfolios. As the debate between Bitcoin and gold continues, MicroStrategy's success serves as a case study for other companies considering digital assets as part of their investment strategy. With Zhao's backing and the possibility of new investment vehicles emerging for cryptocurrencies, Bitcoin is increasingly being viewed as a promising future investment, despite its smaller market cap when compared to traditional assets like gold. https://www.investing.com/news/cryptocurrency-news/binance-ceo-backs-microstrategys-bitcoin-strategy-as-profits-soar-93CH-3234114

2023-11-14 16:56

Copyrighted Image by: Reuters. NEW YORK - The cryptocurrency market is closely monitoring Bitcoin as it hovers above the $36,000 mark, with investors and analysts weighing in on its potential movements. On Tuesday, the digital currency traded at $36,714, bolstered by expectations of a Bitcoin spot Exchange-Traded Fund (ETF) approval by the U.S. Securities and Exchange Commission (SEC). The market is holding its breath until November 17, when the SEC's window for approving such ETFs closes. Ali Martinez, a notable figure on the X social media app, has raised concerns that Bitcoin could fall from its current support level of $36,400 to lower demand zones at $34,300 and even $30,200 if it does not maintain its footing. These zones are marked by high "UTXO Realized Price Distribution" (URPD) readings on Glassnode due to significant Bitcoin purchases in the past. The SEC is currently reviewing approximately a dozen BTC spot ETF filings, with BlackRock (NYSE:BLK)'s filing anticipated to be the first approved this year. BlackRock is also gearing up for an Ethereum ETF launch and has quashed rumors about an XRP-based ETF. However, potential political issues leading to a U.S. government shutdown could complicate the SEC's approval process for these Bitcoin ETFs. Meanwhile, Henrik Zeberg provided a more bullish outlook on Twitter, suggesting that Bitcoin could potentially reach as high as $180,000 by analyzing past cycles. He pointed out a 95-fold increase from 2016-2018 and a 16-fold rise from 2019 to November 2021. Despite a less impressive 1.3-fold increase from a late 2022 low point, Zeberg forecasts a short-term parabolic rise before an expected recession that could negatively affect risk assets like cryptocurrencies. Bitcoin's recent price movements have seen it surge over 9% between November 7 and November 9 to $37,903 before experiencing a drop of 5.66%. The digital currency has since seen fluctuations within the $37,400 range but is currently trading at $26,670 after a recent uptick of 1.13%. Investors are now eyeing key support levels highlighted by Martinez using Glassnode's URPD metric. If Bitcoin breaks below the critical supports at $36,400 and $34,300, it may face a decline of up to 16% to the major support level at $30,200. However, there is strong resistance between this point and $25,000 due to the concentration of investors' cost basis in that range. The crypto community awaits further developments as these analyses and the SEC's decision on Bitcoin ETFs will likely have significant impacts on the market's direction in the near term. https://www.investing.com/news/cryptocurrency-news/bitcoin-holds-above-36000-amid-etf-approval-anticipation-and-market-predictions-93CH-3234086

2023-11-14 16:40

Copyrighted Image by: Mundo Crypto PR NEW YORK - Bitcoin's recent surge to the $38,000 mark has sparked a flurry of trading activity, resulting in the largest liquidation event since the August 17 flash crash, with $491 million worth of positions being wiped out. Bitfinex, a prominent cryptocurrency exchange, has issued an investor warning in response to this volatility. The alert comes as the digital currency's market capitalization is on the brink of reaching a significant milestone of $750 billion for the first time since April 2022. Bitfinex's Alpha report pointed to the gap between Bitcoin's current price and the Short-Term Holder Realized Price (STH RP), which is at its widest margin since April 10, 2022. This disparity could signal a local peak and potentially precede a pullback in Bitcoin's value. According to Bitfinex, a month-over-month change exceeding $2,000 in the STH RP often indicates the final stages of a bear market recovery and the start of a new bull market. However, with the STH RP currently standing at $30,380 while Bitcoin trades around $37,000, there is growing concern about a possible retraction to the $30,000 to $31,000 range, testing the STH RP level. Furthermore, Bitfinex's report highlights a negative shift in Long-Term Holder Realized Price (LTH RP), suggesting that long-term holders may be liquidating their Bitcoin holdings. Since December 2022, Bitfinex has been closely monitoring these trends and advocating for investor prudence during what they have referred to as Bitcoin's recovery phase. The exchange has consistently warned of potential significant price corrections despite discussions around the emergence of a new bull market. These warnings underscore the dynamic nature of STH and LTH levels and their impact on market movements. As investors navigate this tumultuous landscape, Bitfinex stresses the importance of vigilance in trading strategies and risk management. The recent advisory serves as a reminder that while milestones like reaching a $750 billion market cap are noteworthy, they can also be accompanied by increased market sensitivity and potential volatility. https://www.investing.com/news/cryptocurrency-news/bitcoin-approaches-750-billion-market-cap-amid-investor-caution-warning-93CH-3234071

2023-11-14 16:38

Copyrighted Image by: Reuters. Coinbase (NASDAQ:COIN), a leading cryptocurrency exchange platform, has released a report suggesting that the approval of U.S.-sanctioned spot bitcoin exchange-traded funds (ETFs) could significantly transform the cryptocurrency market by drawing in new classes of investors. David Duong, Head of Institutional Research at Coinbase, highlighted the potential benefits of such development during a time when the traditional financial systems face geopolitical tensions and economic uncertainties. The report, which was released on Monday, points out that spot bitcoin ETFs would open up cryptocurrency investments to Registered Investment Advisors (RIAs), retirement funds, and larger institutions. According to Duong, this move would not only bring fresh capital into the market but also improve liquidity and price discovery by easing buying and holding restrictions for these larger entities. Coinbase's analysis indicates that regulatory-compliant investment vehicles are likely to lead to the creation of new products tailored for accredited investors, thus broadening crypto adoption. As a result, the total crypto market cap could see a significant increase over time as ETFs promote a more regulated environment and greater inclusivity. Amidst an unsettled U.S. Treasury bond market, a costly dollar, and vulnerabilities within the U.S. banking sector, Coinbase positions bitcoin as an attractive safe haven alternative looking ahead to 2024. This viewpoint stands in contrast to JPMorgan's skepticism about the current crypto market rally, suggesting that there is growing demand for bitcoin as an alternative to traditional financial systems. Coinbase concludes that the approval of a spot Bitcoin ETF would revolutionize how cryptocurrencies are transacted and could potentially attract billions of dollars into the crypto space by establishing a regulated environment that appeals to investors beyond the traditional crypto community. This framework could simplify access to cryptocurrencies amidst the current economic challenges and reinforce their position as a viable alternative in the financial landscape. https://www.investing.com/news/cryptocurrency-news/coinbase-report-predicts-boost-in-crypto-market-from-spot-bitcoin-etfs-93CH-3234067

2023-11-14 16:36

Copyrighted Image by: Reuters SAN FRANCISCO - Nana Murugesan, known for spearheading Coinbase (NASDAQ:COIN)'s international expansion strategy, has announced his plan to leave the company in the first quarter of 2024. Murugesan, who has played a pivotal role in leading the cryptocurrency exchange's international operations and business development, will remain as a consultant until July 2024 to ensure a smooth transition. During his tenure at Coinbase, Murugesan was instrumental in executing the "Go Broad, Go Deep" strategy, which saw the company grow its global presence. Despite facing a lawsuit from the U.S. Securities and Exchange Commission (SEC), Coinbase managed to expand into 24 new countries and achieved full licensure in Singapore. This expansion is part of the company's efforts to navigate through regulatory challenges in the U.S. by tapping into international markets. Murugesan's leadership and collaborative approach with global financial entities have been crucial in establishing clear cryptocurrency regulations. This regulatory clarity contributed to Coinbase's resilient financial performance, with the company reporting $674.1 million in revenue for Q3/2023. The success of these efforts is evident despite some setbacks, such as the stringent crypto regulations in Kazakhstan that led to Coinbase being blocked in the country, raising questions about the future of digital assets in that region. Looking ahead, Coinbase is setting its sights on further expansion within Europe. The firm has applied for a license to operate under the European Union's Markets in Crypto-Assets (MiCA) framework. MiCA is known for its rigorous standards aimed at ensuring proper governance and protecting consumer rights within the cryptocurrency market. Murugesan's upcoming departure marks a significant transition for Coinbase as it continues to navigate a complex global regulatory landscape while striving to maintain its growth trajectory and uphold its commitment to meeting high governance standards internationally. InvestingPro Insights In light of the recent developments at Coinbase, InvestingPro offers some insightful data and tips. According to our real-time metrics, Coinbase has a Market Cap of 22.26B USD and a P/E Ratio of -29.49, indicating that the company is not currently profitable. Over the last twelve months up to Q3 2023, the company's Revenue was 2627.47M USD, but it experienced a Revenue Growth decrease of -47.88%. InvestingPro Tips highlight that while analysts do not anticipate the company will be profitable this year, Coinbase's stock price has shown a strong return over the last month and a significant uptick over the last six months. It's worth noting that the company does not pay dividends to shareholders, and its stock price movements can be quite volatile. These insights, among many others, are available on InvestingPro, where we offer a wealth of data and tips for a wide range of companies. For more detailed insights and additional tips, consider exploring our product further. https://www.investing.com/news/cryptocurrency-news/coinbase-executive-nana-murugesan-to-depart-in-q1-2024-93CH-3234065

2023-11-14 16:33

Copyrighted Image by: Reuters. NEW YORK - As the cryptocurrency market anticipates the next Bitcoin "halving" in April 2024, U.S. Bitcoin miners are intensifying their efforts to maximize profits. The halving event, which will cut the Bitcoin block reward in half, is increasing the urgency among the 13 largest U.S.-listed mining companies to expand their operations. Gregory Lewis from BTIG highlighted this rush to set up more mining rigs before the available Bitcoin supply tightens further. The Bitcoin network's computational power, known as the hash rate, has been reaching new heights for 11 consecutive months, according to data from J.P. Morgan and Blockchain.com. This sustained increase indicates a growing energy demand for Bitcoin mining activities. The recent surge in Bitcoin's value by approximately 37% to $37,000 over the past month has incentivized miners to accelerate the production and sale of new coins. Despite these efforts, miner revenues have not yet returned to their early 2021 peak levels. On November 11, average revenue hit $32.46 million, with earnings per petahash per second climbing to $81 from $70 earlier in November. However, these figures still fall short of the $127 peak earnings recorded in early 2021. The upcoming halving is expected to pose significant challenges for smaller miners by reducing the block reward from 6.25 to 3.125 bitcoins. This reduction could lead to market instability, with potential mergers and bankruptcies among less competitive miners. Larger mining corporations like Marathon Digital (NASDAQ:MARA) and Riot are preparing for this shift by planning acquisitions of struggling operations post-halving. Didar Bekbauov, CEO of Xive, warns of machine shutdowns at his company and predicts that smaller operations may not survive the reduced incentives following the halving. William Szamosszegi, CEO of Sazmining, also anticipates that the halving could eliminate smaller miners who cannot sustain high-level competition. The Bitcoin network's built-in difficulty adjustment mechanism ensures decentralization by modifying the challenge of solving blocks based on past performance. Miners are responding by investing in more efficient machinery and relocating to regions with cheaper electricity costs to maintain profitability. With a fixed limit of 21 million bitcoins and 19 million already mined, the pressure is mounting for miners to capitalize on current opportunities before the next halving event reshapes the industry landscape. https://www.investing.com/news/cryptocurrency-news/bitcoin-miners-ramp-up-as-hashrate-hits-record-before-halving-93CH-3234060