From Bitcoin hitting $43K to Jamie Dimon voicing his opinions about Bitcoin again, here is a 4-minute breakdown of everything important that happened in crypto this week.
Bitcoin finally broke above $40k this week, surging on the back of rising expectations for ETF approval, Fed rate cuts, and hype building toward the upcoming Bitcoin Halving. The rally continued as Bitcoin tapped $44k briefly before stabilizing around $43k. With the surge, popular critics from traditional finance resurfaced, calling Bitcoin a bubble...
But Bitcoin seems less reactive to this narrative and regulatory scrutiny compared to the past.
This pump signals Bitcoin's growing resilience as adoption reaches new highs. As the crypto market continues hitting fresh milestones, we're here today to cover the top news stories driving the latest moves. In this issue:
- Bitcoin futures open interest nears record highs on CME, matching BTC's ascent over $43k. Is this pointing to renewed institutional hype? 🚀
- Hashdex predicts regulatory barriers pierced by Q2 2024, unlocking trillions for crypto from asset managers and pension funds. Will we see a 2024 bull run? 📈
- Coinbase CEO states no plans for a native Base token - layer-2 network moves forward without a coin, for now at least ❌
- Jamie Dimon claimed crypto's main use case is criminal activity, despite JPMorgan embracing blockchain tech. 🙃
- Do Kwon's extradition path takes a turn 💥
- UK regulator puts Poloniex, owned by Justin Sun, on warning list 🚔
- LayerZero confirms 2024 token airdrop plans to address rampant rumors and speculation 🪂
- Spanish authorities arrest a man alleged to have coached North Koreans on crypto sanctions evasion 😱
- Bitcoin Core bug fix may halt new Bitcoin NFTs and memecoins 🫣
We're diving deeper into each of those stories today. Let's get to it!
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Bitcoin’s “Not” Dead 😬
BTC just pulled a Lazarus in Q3, rising from $25k to almost $44k. Turns out those "Bitcoin is dead" memes were a tad premature.
This renewed momentum has caught many short sellers off guard. Stocks like Coinbase and MicroStrategy moved in sync, leaving short sellers holding some heavy bags.
By some estimates, short sellers targeting crypto equities have taken losses exceeding $2.6 billion over the last quarter alone. Indications are the pain train has kept rolling this week, with an estimated $387 million in losses realized in just 24 hours.
If this keeps up, struggling shorts may have to cover positions, triggering the mother of all short squeezes. A potential short squeeze could bring even more pain if bearish traders are forced to cover losing positions.
But which crypto stock caused the most damage to shorts? Read more!
Bitcoin Open Interest Hits ATH 👀
Bitcoin futures open interest on the Chicago Mercantile Exchange (CME) has skyrocketed to near-record highs, indicating renewed institutional hype. Or institutional FOMO?
This bullish activity coincides with Bitcoin’s recent pump back above $43k. What exactly is fueling this upswing in demand?
But one thing remains certain as sunrise – in crypto, uncertainty itself may be the only sure bet. Where many were waiting for Bitcoin to fill the CME gaps, it pumped straight up from $26k to $43k in two months. Feels like Matrixport’s $45k Bitcoin price prediction is coming true!
But again, what’s the catalyst for this surge? Is this rally going to last? Read more!
No Base Token! 🚫
Base token airdrop or not?
Mixed signals recently emerged from Coinbase’s executive ranks regarding plans for a native token to power its Base layer-2 network. But CEO Brian Armstrong put rumors to rest - Coinbase currently holds no intentions to launch a proprietary Base token.
Armstrong touts Base’s swift growth since launching despite forgoing a crypto asset to incentivize usage so far. Its layer-2 solution already handles over $500 million in value transfers for 1 million+ users. They grow up so fast! *wipes away single proud tear*
Rather than keeping Base an exclusive domain, Coinbase takes a more collaborative approach - allowing open access to any crypto player.
For now Base moves forward without a native crypto. But Coinbase leaves doors open should usage patterns evolve to necessitate one.
Meaning? A Base token is a possibility, just not now. Read more!
Bull Run Coming Soon?
Hashdex believes Q2 2024 will pierce regulatory barriers allowing mainstream wealth channels access to crypto.
The prediction follows BlackRock firing opening shots submitting its highly-anticipated filing. Over one dozen firms now encircle the arena awaiting federal blessing to launch crypto ETFs.
Some estimate trillions could pour in from asset managers and pension funds if obstacles clear. Hashdex highlights America’s $50 trillion asset manager ecosystem alone dwarfs current Bitcoin markets.
What potential factors does Hashdex think can trigger a bull run soon? Read more!
Illegal Crypto Coaching Arrest 🔒
Spanish authorities arrest a man believed to have instructed North Korean representatives on using cryptocurrency to avoid US sanctions.
US officials specifically allege he demonstrated transactional strategies to high-ranking North Koreans to evade bans on financial flows into the country.
If extradited and convicted, he could serve up to 20 years in prison.
But how exactly did he allegedly pull this off? And what did he get in return? Read more!
No More Ordinal NFTs! 🫣
A developer claimed an upcoming bug fix to Bitcoin Core may stop new Bitcoin NFTs and memecoins, which have congested the network. These tokens exploit a technical vulnerability to bypass data limits, he explained.
These tokens were classified by some devs as parasitic to Bitcoin's infrastructure. And the core bug enabling their existence now faces patching. So Bitcoin ordinals and related BRC-20 tokens face fresh headwinds.
Lately, a resurgence of activity with these tokens has driven up Bitcoin fees over Ethereum's - averaging around $19 recently.
If this goes through, it will probably halt new BRC-20 tokens and Bitcoin NFTs… So Ethereum wins? Read more!
Jamie Dimon at It Again 🙄
Feels like whenever Jamie Dimon and Peter Schiff drop the “Bitcoin is a bubble” bomb, Bitcoin goes bullish (we discussed the relationship among this narrative, the Bitcoin halvings, and crypto bull runs in detail in our Bitcoin halving history article)
And this time, during a recent Senate hearing, JP Morgan CEO Jamie Dimon claimed the main use case for digital assets is criminal activity.
Dimon said he would "close down" crypto if he were government. He highlighted the speed and anonymity of digital assets, stating funds can move instantly.
Earlier this year he called Bitcoin a "hyped up fraud." He's predicted that when the 21 millionth BTC is mined, Satoshi will reveal it was all one big prank.
But Jamie can't seem to make up his mind. Despite trash-talking crypto, JP Morgan is cozying up to blockchain tech. They recently teamed up with Avalanche on an asset management pilot project.
Some X users are calling his statements a FUD.
So why hate crypto when your company is leveraging the tech to grab more clients? Read the full story!
This reminds us of @ordinalscouncil’s meme on X:
Something About Do Kwon… 😐
Terraform Labs founder Do Kwon's legal quagmire just took an unexpected turn. Montenegro may send him to the US instead of South Korea, per a WSJ report.
Kwon was arrested in Montenegro in March for falsified travel docs and sentenced to 4 months in prison. He faces legal charges in both countries related to Terra's implosion.
Terra's stablecoin UST de-pegging sent shockwaves through crypto markets. Major players like Voyager and Celsius also went bankrupt in the aftermath.
Before his arrest, Kwon's whereabouts were hazy. Rumors flew about him hiding out in Singapore.
If shipped to the US, Kwon faces 8 charges covering fraud and manipulation.
But what’s gonna happen to him if he is extradited to South Korea instead? Will he be free? Read the full story!
Poloniex’s Troubles 🚨
The UK's financial regulator put crypto exchange Poloniex on a warning list for unapproved companies. Poloniex is based overseas and owned by Justin Sun.
Firms tied to Sun got hacked four times in the last two months. The regulator said Poloniex may be illegally offering services in the UK.
So far the watchdog has only greenlit one crypto firm to operate - PayPal.
Poloniex itself was hacked for $100M in November. After the breach, Poloniex restored some services via Tron.
With regulators tightening screws industrywide, exchanges tied to hacks face extra heat.
What other exchanges are on FCA’s warning list? Read the full story!
LayerZero Airdrop 🪂
Cross-chain infrastructure provider LayerZero has confirmed it’s airdropping a token in 2024.
The Vancouver-based company acknowledged the rampant speculation about a token launch.
They promised to execute the rollout properly.
LayerZero helps developers connect applications across different blockchains. Decentralized exchanges like PancakeSwap and Uniswap use its interoperability tech.
The team has poured massive venture money into enhancing its infrastructure. Names like a16z and Sequoia are betting big on them.
Earlier this year, LayerZero raised $255 million across two funding rounds, bringing its valuation to $3 billion. Quite the glow-up from its humble $2 million seed round just a year prior.
But when exactly is it airdropping its token? Read the full story!
And that wraps up the key crypto news making waves this week. As always, we’ll be keeping our eyes glued to this rapidly evolving space to bring you the most important updates.
WAGMI!
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