2023-10-19 14:09

Copyrighted Image by: Reuters Bitcoin, the decentralized digital currency, has seen a surge in Bitcoin-backed loans, an emerging trend where borrowers use their Bitcoin holdings as collateral. These loans offer lower interest rates than traditional loans and provide credit access to those who might not qualify otherwise due to credit history or geographic limitations, as reported on Thursday. Platforms like immediate-alpha.org have enabled trading in Bitcoin, and traditional financial institutions alongside peer-to-peer lending platforms are entering the Bitcoin lending space. The loan application process involves understanding collateral requirements, loan terms, interest rates, and repayment schedules. However, borrowers must be aware of potential margin calls and liquidation of collateral if Bitcoin's value drops sharply during the loan term. As we approach year-end, anticipation for another "Santa Claus rally" for Bitcoin intensifies. This expectation is rooted in historical year-end price surges due to increased trading activity as investors engage in portfolio rebalancing and tax considerations. The holiday season's optimism typically bolsters trade volumes and bullish sentiment. Institutional involvement from entities like Tesla (NASDAQ:TSLA), Square, and MicroStrategy has fostered Bitcoin's maturation as an asset class. The advent of Bitcoin futures and other financial products on major exchanges has facilitated institutional exposure to Bitcoin, boosting demand. Bitcoin's role as a hedge against inflation and currency depreciation amid unprecedented fiscal stimulus measures due to COVID-19 has attracted investors seeking protection against fiat currency depreciation. The low-interest-rate environment and potential negative real yields have made traditional assets less appealing, augmenting Bitcoin's attractiveness due to its potential for high returns. Despite the allure of a year-end bull run, understanding the inherent volatility and risks associated with cryptocurrency investing is crucial. Bitcoin's over 70% increase in 2023, largely due to concerns of a banking crisis and the approval of a spot Bitcoin ETF in the US, has drawn parallels with trends from 2017 to 2020 and the historic peak of $69,000 in November 2021, fueling speculation of another significant breakout. Regulatory considerations remain pivotal as governments worldwide grapple with cryptocurrency regulation. Positive regulatory frameworks can instill investor trust, while negative decisions can deter investment. Market sentiment and technical analysis techniques including moving averages, Relative Strength Index (RSI), and Fibonacci retracement levels significantly influence Bitcoin price changes. The future of Bitcoin lending looks promising as Bitcoin gains mainstream acceptance. The lending market is set for growth, with new products and services likely to emerge. Regulatory developments can significantly affect this space, and technological innovations such as smart contracts and cross-chain lending could further transform the landscape. However, tightening regulatory policies by entities like the U.S. Federal Reserve pose challenges for Bitcoin, significantly impacting its future. https://www.investing.com/news/cryptocurrency-news/bitcoin-lending-gains-traction-amid-yearend-rally-anticipation-93CH-3203210

2023-10-19 13:48

Copyrighted Image by: Reuters. The U.S. Securities and Exchange Commission (SEC) is currently evaluating eight to ten exchange-traded fund (ETF) filings related to Bitcoin, according to SEC Chairman Gary Gensler's latest interview with Bloomberg TV on Thursday. The chairman emphasized that the commission's review process is not dictated by a specific timeline but depends on the deliberations of the five-member commission. Gensler reiterated Bitcoin's classification as a non-security, indicating that this perspective would guide the SEC's comprehensive review of these filings. The approval process, which typically spans between 12 to 24 months, often around 15 to 19 months, involves a rigorous procedure akin to an initial public offering (IPO). This process requires registration with the SEC and thorough analysis by its Division of Corporation Finance and Division of Trading and Markets. A significant decision lies ahead for the SEC in terms of Grayscale Investments LLC's proposal to convert its Bitcoin trust (GBTC) into an ETF. The outcome of this proposal could potentially set a precedent for future approvals in this burgeoning segment of the financial market. https://www.investing.com/news/cryptocurrency-news/sec-scrutinizes-bitcoin-etf-filings-sets-stage-for-future-approvals-93CH-3203190

2023-10-19 13:22

Investors are increasingly turning their attention to rising tokens such as VC Spectra (SPCT), as established altcoins like Litecoin (LTC) and Chainlink (LINK) exhibit varied performance this year. VC Spectra, with its unique investment approach combining advanced technologies and innovative trading strategies, has managed to outshine major cryptocurrencies, despite the overall subpar crypto market performance in 2023. On Thursday, VC Spectra's ongoing presale reached stage 4, featuring the deflationary BRC-20 standard token SPCT within a democratic investment environment. Early investors have already realized a substantial 450% increase, with SPCT projected to hit $0.08 by the end of the presale. Earlier this year, SPCT garnered $2.4 million in its seed/private sale and realized an astounding 587.5% ROI during its public offering. Meanwhile, Litecoin started the year around $70, soared to a peak of $113.23, then plummeted to $63.07 by October—a 9.9% decrease from January's price. A recent sell-off of 620,000 LTC tokens by Litecoin whales led to a further 6.93% price drop. However, experts predict it will recover to $68 by year-end and could surge to $237.10 by 2025 due to expanding investor interest and the nearing completion of its supply cap of 84 million coins. Chainlink also demonstrated robust performance in 2023, accruing a gain of 35.91% since January. This growth was stimulated by a K33 Research report highlighting Chainlink's crucial role in the real-world assets (RWA) tokenization field. Analysts predict that Chainlink will hit $9.79 by October's end and could reach $21.17 by 2025. In contrast, Offchain Labs' Arbitrum Stylus faces falling prices due to market volatility and rising short positions. Despite promoting ARB ecosystem accessibility through simplified smart contract creation, ARB is anticipated to drop further to $0.75 by November 2023. https://www.investing.com/news/cryptocurrency-news/rising-token-vc-spectra-attracts-investors-amid-mixed-crypto-performance-93CH-3203158

2023-10-19 11:22

Copyrighted Image by: Reuters. Lightning Labs has launched the Taproot Assets v0.3 mainnet alpha, a significant update that enables the issuance of real-world assets and stablecoins on the Bitcoin and Lightning Network. This development, announced on Thursday, marks a new era in multi-asset Bitcoin and is seen as a major step towards creating an "internet of money". The integration of Taproot Assets into the Lightning Network allows developers to issue and manage a variety of digital assets, cryptocurrencies, and stablecoins within Lightning Network wallets. This system streamlines transactions by routing them through the Lightning Network, with Bitcoin ensuring liquidity. The expanded utility of Bitcoin's blockchain technology could potentially narrow the gap between traditional finance and digital currency markets. During the test phase of this technology, around 2,000 diverse assets were minted, including real-world assets like gold and U.S. Treasuries. This demonstrated the potential for global currencies to become Taproot Assets with instant forex transactions, moving towards "bitcoinizing the dollar". The mainnet alpha release also paves the way for global currencies to become Taproot Assets, enabling instant forex transactions. By using existing Bitcoin liquidity, this development could potentially lead to a scenario where some issuers hold more U.S. Treasuries than countries like Germany and South Korea. In addition to Taproot Assets, other advancements such as Bitcoin Drivechains (BIP-300), Botanix Labs’ Spiderchain, BitVM — a forthcoming Bitcoin 'supercomputer', BTC DeFi, and the concept of "Recursive inscriptions" are further expanding Bitcoin's capabilities. These concurrent developments represent a broader expansion of the capabilities of Bitcoin beyond its original function as a digital currency. https://www.investing.com/news/cryptocurrency-news/lightning-labs-introduces-multiasset-bitcoin-capabilities-with-taproot-assets-93CH-3202938

2023-10-19 07:56

Copyrighted Image by: Reuters. Gold prices have descended from over two-month highs as markets anticipate Federal Reserve Chair Jerome Powell's imminent speech and react to a rebound in the dollar. Spot gold dipped 0.1% to $1,946.51 an ounce, while gold futures fell 0.5% at $1,958.35 an ounce on Thursday. The recent surge in gold prices was due to the intensifying conflict between Israel and Hamas, which bolstered gold's attractiveness as a safe haven asset. However, the rise was tempered by soaring U.S Treasury yields and the dollar's recovery, both driven by expectations of higher interest rates. Markets are pricing in higher interest rates, indicated by surging Treasury yields and an unexpected surge in U.S inflation data. The financial community anticipates Powell's forthcoming speech to affirm his commitment to maintaining elevated interest rates for an extended period. The cancellation of a diplomatic summit involving U.S., Egyptian, and Palestinian leaders has also stirred the markets, keeping gold near its recent peak as investors continue to monitor the Middle East conflict. Meanwhile, in other commodities, copper prices declined amid fears of a property market crash in China, despite encouraging Chinese GDP data. Copper futures slipped 0.3% to $3.5713 a pound. This decline was influenced by Country Garden, a significant Chinese developer, defaulting on a crucial offshore bond repayment deadline, indicating likely widespread defaults on its foreign debt. https://www.investing.com/news/commodities-news/gold-prices-retreat-from-twomonth-high-ahead-of-powells-speech-93CH-3202687

2023-10-19 07:06

Cryptocurrency AAVE has entered a bearish phase following its local peak of $73.40 on October 1, 2023. The pattern of two lower lows and lower highs indicates a loss of bullish momentum for the digital asset. The coin's recent performance suggests possible shorts at the retest of pullback resistance at $64.50, which could trigger a 17% decline to the September 11 swing low of $51.39. This downturn for AAVE counters its previous rally of 40% which occurred from September 11 to October 1. If the cryptocurrency fails to maintain the crucial support level at $57.40 after an anticipated 8% drop, further declines to $54.10 and eventually to $51.39 are likely. However, this bearish outlook would be invalidated if there is a daily close above the October 16 high of $67.17. Such an event could potentially reignite an uptrend towards the October 6 high of $69.77, thus reversing the current downward trend for AAVE. https://www.investing.com/news/cryptocurrency-news/aave-enters-bearish-phase-potential-17-decline-forecasted-93CH-3202648