Monat: Oktober 2023

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Bitcoin vs Gold: Bernstein analyst Gautam Chhugani picks a side

  • Bernstein analyst says Bitcoin is more attractive than gold.
  • Gautam Chhugani explained why in a research note today.
  • Bitcoin is currently down about 10% versus its YTD high.

Gold has a history of doing well in a recession – but this time Bitcoin is an even better investment, as per a Bernstein analyst.

Bitcoin has a history of outperforming gold

Gautam Chhugani continues to see the world’s largest cryptocurrency as the ‘safe haven’ since it has performed about five times better than gold since 2018.

At 1.8%, he agreed that Bitcoin inflation is comparable to gold inflation for now but said “skeptics miss that every four years, [the former’s] inflation halves”.

The total supply of Bitcoin is scheduled to halve in May of 2024. Historically, that event has resulted in significant price appreciation.

Last week, billionaire hedge fund manager Paul Tudor Jones also said Bitcoin was a better investment than stocks in the current environment (read more).

Spot Bitcoin ETF will unlock significant demand

Gautam Chhugani is convinced that capital will flow into Bitcoin further as fears of recession continue to swell.

The Bernstein analyst dubs the cryptocurrency a better investment than gold also because it is at a “fairly early stage of institutional adoption”. Significant demand will unlock once the Securities & Exchange Commission approves the first U.S. Spot Bitcoin ETF, he added.

Bitcoin currently has a market cap that’s not even 5.0% versus that of Gold.

BTC soared materially this morning following a report that the regulator has approved iShares Spot Bitcoin ETF. But the news was later confirmed as fake and resulted in a sharp pullback that brought Bitcoin back to around the $28,000 level.

The post Bitcoin vs Gold: Bernstein analyst Gautam Chhugani picks a side appeared first on CoinJournal.

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Bitcoin SV (BSV), Bitcoin Cash (BCH) Pops as BTC ETF Hopes Rise

Bitcoin SV and Bitcoin Cash prices were among the top-performing currencies on Monday as a sense of hope returned in the crypto market. BSV jumped by more than 13% to $38.27 while Bitcoin Cash jumped to $228.64. Other top-performing cryptocurrencies were Solana and Stacks.

The main catalyst for the rally was the ongoing hopes that the Securities and Exchange Commission (SEC) will approve a Bitcoin ETF. These hopes were amplified by the decision by the SEC to move on without appealing the Grayscale lawsuit.

BCH and BSV prices jumped after a false report by Cointelegraph suggested that the SEC had expected iShares Bitcoin Trust. That report pushed Bitcoin to almost $30,000 and then it retreated shortly afterwards.

Bitcoin Cash and Bitcoin SV also jumped as a sense of optimism continued in the market. Move was exemplified by the strong performance of American equities. The Nasdaq 100 index jumped by more than 1.10% while the S&P 500 and Dow Jones jumped by over 1%. Historically, cryptocurrencies tend to do well when stocks are rising.

Still, the risk for BSV and BCH is that it is still too early to determine whether the SEC will approve Bitcoin ETF. If it does, these coins will rise because it will raise the possibility of companies filing for their separate ETFs.

The other risk for these cryptocurrencies is that inflation expectations have been rising in the past few weeks. The implication is that the Fed will maintain a hawksh tone in the coming months. 

The post Bitcoin SV (BSV), Bitcoin Cash (BCH) Pops as BTC ETF Hopes Rise appeared first on CoinJournal.

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Fake spot Bitcoin ETF approval news pushes BTC to $30k

  • Bitcoin spikes to highs of $30k amid fake spot ETF news.
  • BlackRock has confirmed its spot Bitcoin ETF application remains under review.
  • Over $130 million shorts were liquidated as the price of Bitcoin shot to near $30k on Monday

A relatively quiet crypto market sparked into a frenzy for a few minutes on Monday as news spread that the Securities and Exchange Commission (SEC) had approved the first Bitcoin ETF.

Bitcoin price soared more than 10% within no time as major crypto news accounts on X seized on the news, with BTC rising to $30,000 on crypto exchange Coinbase. This was Bitcoin’s highest level since August 9.

Spot Bitcoin ETF approval was ‘fake’

First, Fox Business reporter Eleanor Terret posted on her X account that BlackRock’s iShares Bitcoin ETF had not been approved. She cited a statement from the $9 trillion asset manager that indeed its “application is still under review.” 

Bloomberg and the Wall Street Journal have also quoted statements from BlackRock to the effect that the said ETF application remains under review. The SEC has also confirmed the reports were false. 

The SEC has recently delayed decision on all applications for spot Bitcoin EFTs before it. The regulator however did not appeal a court decision in favour of Grayscale over the conversion of GBTC to a spot ETF. As such, the market’s reaction over the weekend and early morning had benefited from sentiment that chances of a Bitcoin ETF approval were high.

Other than the GBTC to spot ETF countdown, the crypto market has had great anticipation for the other proposals that include BlackRock and Fidelity. For one, the product is expected to offer greater exposure to BTC for traditional investors – with this resulting in the influx of capital into the market. Experts say that the next bull market could benefit significantly from this.

Could this explain the reaction to today’s news? First posted on an X account of a crypto publication, the claim spread like wildfire, attracting massive buyside pressure. While the post has been debunked as fake news, could it have been a leak that jumped the gun?

Meanwhile, Cointelegraph has apologized for the “tweet” and is reportedly conducting an internal investigation as to what happened.

Over $100 million liquidated

Just as Bitcoin had spiked amid online circulation of the fake news, its price fell sharply soon after as more confirmed reports highlighted this to be fake news. Total liquidations jumped more than 280% in the past 24 hours.

More than $100 million shorts were liquidated as Bitcoin prices soared amid the news. According to data from Coinglass, the hour that saw BTC hit $30k had more than $112 million total liquidations. There were over $78 million shorts and $34 million longs liquidated, including over $64 million for BTC.

The post Fake spot Bitcoin ETF approval news pushes BTC to $30k appeared first on CoinJournal.

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Tether freezes 32 addresses linked to terrorism in Israel and Ukraine

Key takeaways

  • Stablecoin issuer Tether has frozen over 30 crypto addresses linked to terrorism and warfare in Ukraine and Israel.

  • The crypto addresses held over $800k collectively.

Tether freezes crypto addresses linked to warfare in Ukraine and Israel

Tether, the issuer of the USDT stablecoin, announced in a blog post on Monday that it has frozen 32 addresses linked to terrorism and warfare in Israel and Ukraine.

The company confirmed that it has been working with Israel’s National Bureau for Counter-Terror Financing (NBCTF) to fight cryptocurrency-funded terrorism and warfare. 

Freezing the addresses means that the wallet users won’t be able to send USDT until the freeze is lifted. According to Tether, the 32 wallets held $873,118in USDT. Tether added that,

“To date, Tether has aided 31 agencies worldwide with investigations across 19 jurisdictions, freezing a total of $835 million in assets mostly associated with theft (blockchain and exchange hacks) with a minor portion to other crimes.”

The company added that it has partnered with countries, including the United States, Brazil, Singapore, Philippines, Germany, South Korea, Norway, Canada, Israel, India, the UK and Ukraine, to fight terrorism and warfare funding. 

Tether CEO Paolo Ardoino pointed out that,

“Tether remains committed to promoting responsible blockchain technology use and standing as a robust defence against cybercrime. We eagerly anticipate continued collaboration with global law enforcement agencies as part of our commitment to global security and financial integrity.”

This latest cryptocurrency news comes a week after Binance helped Israeli police seize Hamas-linked crypto wallets after a surprise attack by the terrorist organisation quickly turned into war. 

In November 2022, Tether froze $46 million worth of USDT stablecoins following a law enforcement request regarding an FTX wallet during the exchange’s collapse.

The post Tether freezes 32 addresses linked to terrorism in Israel and Ukraine appeared first on CoinJournal.