2023-10-13 00:42

Copyrighted Image by: Reuters. Grayscale Investments, managing a $16.6 billion Bitcoin Trust, won a lawsuit against the Securities and Exchange Commission (SEC) at the D.C. Circuit Court. This victory could potentially pave the way for Grayscale to convert its GBTC into a spot Bitcoin ETF, marking a first in the US. Analysts such as Timothy Peterson and Crypto Rover are closely tracking these developments, noting the current 17% Grayscale GBTC discount. They anticipate significant sell pressure if the conversion is approved, which could create opportunities for profit margin offload. This positive development is shadowed by the ongoing lawsuit involving Coinbase (NASDAQ:COIN) over charges of unregistered securities exchange. Analysts from Berenberg suggest that the SEC might reject Grayscale's proposal on different grounds due to this legal entanglement. The SEC has until today to appeal against the court ruling. If they fail to do so, it may witness the approval of the first spot Bitcoin ETF in the US. The outcome of this situation will have substantial implications for Grayscale Investments and the broader cryptocurrency market in the United States. https://www.investing.com/news/cryptocurrency-news/grayscale-investments-wins-lawsuit-eyes-potential-bitcoin-etf-conversion-93CH-3197674

2023-10-13 00:28

Crypto analyst JD (NASDAQ:JD) has offered a positive long-term outlook for XRP, predicting that the cryptocurrency's price could surpass the $7 mark. This projection is based on a "Hidden Bullish Divergence" spotted in XRP's weekly Relative Strength Index (RSI) chart, implying a potential upward trend. The weekly Stock RSI, currently standing at 7.66 makes it an attractive entry point for investors, according to JD. Despite a recent 1.9% depreciation in value and a 1.79% decline in market capitalization, XRP demonstrated resilience with its daily trading volume of $792 million. JD pointed to high whale activity and progress in Ripple's legal battle with the Securities and Exchange Commission (SEC) as factors strengthening XRP's position. These elements, combined with XRP's unique market stance, are seen as contributing to its solid long-term prospects. The analyst emphasized that these positive aspects offer an enticing long-term investment opportunity for those interested in the digital currency market. https://www.investing.com/news/cryptocurrency-news/xrp-shows-resilience-with-bullish-outlook-despite-recent-depreciation-93CH-3197671

2023-10-12 17:50

The criminal fraud trial of Sam Bankman-Fried, the former head of Alameda Research and FTX exchange, continues this Thursday with intense scrutiny on the testimonies of key witnesses. Caroline Ellison, a pivotal witness in the proceedings and former associate of Bankman-Fried, stood her ground as defense lawyer Mark Cohen attempted to discredit her contributions. Ellison, who previously managed Alameda Research under Bankman-Fried and was personally involved with him, confessed to misusing FTX exchange customer funds under his direction. She also admitted to distributing a misleading document about Alameda's financial health among employees. Despite Cohen's efforts to undermine her credibility, Ellison insisted on her prior claims. She alleged that Bankman-Fried was aware of Alameda's precarious financial situation but continued to borrow billions from FTX customers. These funds were subsequently used for political donations and real estate acquisitions, as disclosed during an all-hands meeting. Following the collapse of both FTX exchange and Alameda Research, several high-ranking executives including Gary Wang and Nishad Singh, along with Ellison, pled guilty to fraud charges. The trial has also brought attention to Bankman-Fried's reactions during Ellison's testimony, which were noted by Assistant U.S. Attorney Danielle Sassoon and addressed privately by Judge Lewis A. Kaplan. Further adding to the trial's developments, Christian Drappi, a former developer at Alameda Research, testified about his astonishment at the companies' downfall. The trial also revealed that F.B.I. agents had executed a search warrant at the home of Ellison's parents, Sara Fisher Ellison and her unnamed boyfriend who had formerly worked for Bankman-Fried. Throughout the duration of the trial so far, Ellison has held approximately 20 meetings with prosecutors. https://www.investing.com/news/cryptocurrency-news/bankmanfried-fraud-trial-progresses-amid-key-witness-testimonies-93CH-3197587

2023-10-12 15:53

Copyrighted Image by: Reuters. Marathon Digital (NASDAQ: NASDAQ:MARA) stock price has taken a severe hit, plunging to $7.85 on Thursday, mirroring the ongoing Bitcoin sell-off and a broader pullback in American stocks. This downward trend is also noticeable in other Bitcoin mining companies such as Riot Platform and BitDigital (BTBT), which generate revenue from mining and selling Bitcoin. The recent consolidation phase in Bitcoin's price has significantly affected these stocks. Notably, MARA had previously soared to above $28,000 before falling to around $26,000. A volume-supported move below the previous month's low of $24,800 could attract more short sellers. Adding to the bearish sentiment, a death cross pattern was formed on September 28th when MARA's 200-day and 50-day moving averages crossed bearishly. This technical indicator often signals further declines in the stock's price. Investors are now turning their attention to the upcoming earnings reports for Marathon Digital and other Bitcoin mining stocks. The report for Marathon Digital is scheduled for November 14th and could provide vital insights into the company's financial health amid these market fluctuations. According to InvestingPro data, Marathon Digital has a market cap of $16.27B USD, a P/E ratio of 8.38, and a revenue of $6695M USD. The company's gross profit stands at $5226M USD, and it has an operating income of $2525M USD. This data, of course, is subject to changes due to the volatile nature of the market. InvestingPro Tips suggest that Marathon Digital has high earnings quality, with free cash flow exceeding net income. It is also noted that the management has been aggressively buying back shares, indicating confidence in the company's future performance. There is also a significant return over the last week, which might be indicative of the stock's potential recovery. For more in-depth tips and insights, readers can visit InvestingPro which offers additional 7 tips on Marathon Digital and many other companies. The upcoming earnings report, scheduled for November 1, 2023, according to InvestingPro, will provide further insights into the company's performance and potential future trajectory. The report is expected to be closely watched by investors, given the current market fluctuations and the impact on Bitcoin mining stocks. The company's fair value, as per InvestingPro, stands at $28.73 USD, which could be a key metric to watch in the coming weeks. https://www.investing.com/news/cryptocurrency-news/marathon-digital-shares-tumble-amid-bitcoin-selloff-93CH-3197477

2023-10-12 15:51

Copyrighted Image by: Reuters. On Thursday, Bitcoin's estimated leverage ratio experienced a surge, indicating an increase in borrowing by traders, according to CryptoQuant analyst BQYoutube. This surge may be attributed to bullish sentiment or high-risk behavior with potential for liquidation if market trends reverse. The funding rate tracked by Coinglass has jumped over 115% since last Friday to 0.0124%, signaling high investor greed. However, the low trading volume in BTC's spot market suggests weak organic demand at its current price. In addition, Bitcoin's futures & options open interest has climbed 9% since October 1 to $6.14 billion, adding similar risks. Analysts advise postponement of strong buying decisions until leverage usage and exchange reserves decrease. Despite outperforming gold and TIPs since June, Bitcoin's unsuccessful attempt to surpass the $28,000 resistance resulted in a 4.9% correction on Thursday. This shift has led to a fear-driven market. Currently, Bitcoin's $520 billion market capitalization surpasses those of global payment processor Visa (NYSE:V) and Exxon Mobil (NYSE:XOM) but lags behind its November 2021 all-time high of $1.3 trillion. The rising DXY index and the $4.2 trillion held by top companies have diminished Bitcoin's attractiveness as a hedge instrument amidst U.S.'s economic resilience. Derivatives metrics indicate declining demand from bulls with futures contract premium at its lowest since BlackRock (NYSE:BLK)'s spot ETF filing. The Bitcoin options' 25% delta skew switched to "fear" mode amid concerns over SEC's delayed Bitcoin spot ETF decisions and exchanges' exposure to terrorist organizations. Protective put options are now trading at a 13% premium, suggesting less confidence among traders despite Bitcoin's predictable monetary policy and the S&P 500 index's 3% gain since June. From a derivatives perspective, the likelihood of Bitcoin's price breaking above $28,000 in the short term appears slim. This situation underscores the current market volatility and the need for investors to tread with caution. https://www.investing.com/news/cryptocurrency-news/bitcoin-leverage-ratio-surges-as-market-displays-feardriven-sentiment-93CH-3197478

2023-10-12 15:09

Copyrighted Image by: Reuters. Investing.com - Gold bulls have been reminded again that it’s hard to put the dollar down for too long. Despite a clear distaste for more rate hikes among Fed officials and Wall Street doing its best to ignore trending inflation, the dollar rallied on Thursday, recouping all it lost in three previous sessions and more. With the mojo back in the greenback, gold’s four-day sprint came to a halt too, as the yellow metal hit a new 2-week high just shy of $1,900 an ounce before settling lower. Gold’s most-active futures contract on New York’s Comex, December, settled down $4.30, or 0.2%, at $1,883 an ounce after soaring to $1,897.90 — a peak not seen since Sept. 27 when it was still in the $1,900 territory. The spot price of gold, more closely watched by some traders than futures, was at $1,869.65 by 14:30 ET (18:30 GMT), down $4.71, or 0.3%, on the day. The session peak for spot gold was $1,867.96, keeping its typical $30 discount to futures. The US Dollar Index, or DXY, which pits the greenback against six other currencies, hovered at just under the session high of 106.54, up 0.6% on the day. Prior to this, DXY had been on a downtrend over three days, after a 11-month high of 107.35 a week ago. The dollar rose despite Fed officials showing an aversion to raising rates in November even as the US inflation was higher than expected for a third month in a row. September consumer prices grew by an annual rate of 3.7%, the same as in August, and higher than the 3.6% forecast by Wall Street economists, data from the Labor Department showed. “Profit taking hit gold after a hot inflation report reinvigorated the bond market selloff,” said Ed Moya, analyst at online trading platform OANDA. “After the CPI report, gold traders quickly realized that gold wasn't going to rally above the $1,900 level.” The dollar also rose as US bond yields rose their most in a day since July 27. Yields, benchmarked against the 10-year Treasury note reached 4.708%, climbing 2.46% on the day. Prior to this, yields had mostly slid, after hitting a 16-year high of 4.892 on Friday. https://www.investing.com/news/commodities-news/gold-retreats-from-2week-high-as-dollar-snaps-3day-loss-3197461