04/03/2024. Weekly CryptoNews Digest (February, 26 – March, 03)

Hello from Tirana, Albania’s vibrant capital, where I’m currently enjoying a well-deserved vacation. I wanted to take a moment to extend my warm greetings to all the loyal readers of the MNO blog!

Since its inception in 2007, the MNO blog has been a go-to resource for insightful information and lively discussions on a wide range of topics. As a long-time follower of online finances myself, I can attest to its value and relevance in the ever-evolving world of cryptocurrencies.

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As a regular feature, I present the Weekly CryptoNews Digest, a comprehensive roundup of the most significant news and developments in the world of cryptocurrencies from the past week. By staying informed with this digest, you can rest assured that you won’t miss out on any crucial updates or trends in this dynamic and rapidly evolving industry.

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Get ready for an exciting journey as we delve into the latest and greatest crypto news from February 26th to March 3rd, 2024! In this edition of the MNO Weekly CryptoNews Digest, we’ll be diving into the most noteworthy market trends, industry rumors, and essential updates. So, fasten your seatbelts and get ready to stay ahead of the curve in this ever-evolving crypto landscape! Let’s get started!

POTENTIALLY VOLATILE SITUATION FOR BITCOIN AND OTHER CRYPTOS

Despite its extremely high growth over the last seven days, with a price surge of over 20%, investors should remain cautious and be aware of the potentially volatile situation in the cryptocurrency market, particularly for Bitcoin (BTC).

Here’s a breakdown of the key points:

1. Recent Bitcoin Price Surge: Bitcoin experienced a significant 20% price increase, likely leading to increased market activity and investor interest.

2. Short-Dated Options: A sudden influx of buyers for short-dated options on Bitcoin has emerged. Options contracts give the buyer the right, but not the obligation, to buy or sell an asset at a specific price by a specific date. Short-dated options have shorter expiry times compared to longer-dated ones, and their prices are more sensitive to underlying asset price movements.

3. Increased Volatility: The high demand for short-dated options has increased Bitcoin’s volatility to its highest level since last year. This means the price of Bitcoin is more likely to experience rapid and significant swings in the near future.

4. Leverage: The text mentions the return of leverage across various crypto sectors, including NFTs, mining, and DeFi. Leverage allows investors to control a larger position in an asset with a smaller amount of capital, potentially amplifying both gains and losses. The return of leverage suggests a potentially riskier market environment.

5. Open Interest: The open interest in Bitcoin derivatives, which represents the total number of outstanding options contracts, has increased by 90% since October. This indicates a significant rise in speculative activity surrounding Bitcoin, further contributing to potential volatility.

Overall, the situation suggests a period of heightened volatility and potential risk for Bitcoin investors. The combination of a recent price surge, increased options activity, and the return of leverage creates an environment where rapid price swings are more likely.

It’s important for investors to be aware of these factors and to exercise caution when making investment decisions in such a volatile market.

BITCOIN ENTERS TOP TEN MOST VALUABLE ASSETS

As a direct result of the enormous price surge witnessed over the last week, it makes perfect sense that Bitcoin has entered the Top 10 list of the world’s most valuable assets by market capitalization. This is a significant milestone for the cryptocurrency, signifying its growing recognition and value within the global financial landscape.

Here’s a breakdown of the key points:
– Market Capitalization: This refers to the total market value of all outstanding shares of a publicly traded company or the total value of all outstanding units of a cryptocurrency. In Bitcoin’s case, it’s the current price per BTC multiplied by the total number of bitcoins in circulation.
– Top 10 Ranking: By surpassing the $1 trillion market capitalization mark, Bitcoin has secured a spot among the top 10 most valuable assets globally. This ranking is based on data compiled by various financial institutions and market data providers like CompaniesMarketCap.
– Surpassed Companies: With its current market cap, Bitcoin has surpassed established giants like Berkshire Hathaway, Tesla, Visa, JPMorgan Chase, and even its fellow cryptocurrency Ethereum. This highlights the significant growth and value Bitcoin has accumulated in recent years.
– Significance: This achievement marks a major step towards mainstream acceptance for Bitcoin and potentially the broader cryptocurrency space. It demonstrates the growing interest and potential future role of cryptocurrencies in the global financial system.

Overall, Bitcoin entering the Top 10 assets is a noteworthy development with potential future implications for the cryptocurrency market and its role in the global financial system. However, it’s crucial to stay informed about market trends, potential risks, and evolving regulations before making any investment decisions.

BITCOIN ETF BREAKS RECORD

Seven weeks after receiving approval from the U.S. Securities and Exchange Commission (SEC), spot Bitcoin exchange-traded funds (ETFs) have amassed a total of 344,000 Bitcoin in assets under management (AUM), according to data from Arcane Research. This equates to over $21 billion worth of Bitcoin at current prices.

The SEC approved the first spot Bitcoin ETF in the United States in October 2021, allowing investors to gain exposure to Bitcoin through a traditional investment vehicle. Since then, several other Bitcoin ETFs have been approved, leading to a surge in demand for these products.

The rise of spot Bitcoin ETFs has been driven by a number of factors, including increased institutional adoption of Bitcoin, growing mainstream acceptance of cryptocurrencies, and the need for a regulated and secure way for investors to gain exposure to the crypto market.

The significant AUM of these ETFs suggests that institutional investors are increasingly turning to Bitcoin as a legitimate asset class. As such, the growth of these ETFs is likely to continue in the coming months and years, further solidifying Bitcoin’s position as a mainstream investment option.

BITCOIN PRICE BRINGS ATTENTION TO LARGEST HODLERS

The recent rise in Bitcoin’s price has brought attention to the substantial unrealized gains held by major players in the cryptocurrency industry. Here’s a deeper look into this phenomenon:

Unrealized Gains: These refer to the potential profit an investor would make if they sold an asset at the current market price, but they haven’t actually done so yet. In the context of Bitcoin, the recent price surge has increased the paper value of holdings without any actual sale taking place.

Big Players with High Gains: The news article mentions two specific examples:
– MicroStrategy: This company, led by Michael Saylor, is a well-known Bitcoin advocate and holds a significant amount of Bitcoin on its balance sheet. The recent price increase has significantly increased the unrealized value of their holdings. Despite this, Saylor has repeatedly stated that the company has no intention of selling its Bitcoin, indicating a long-term investment strategy.
– El Salvador: This country made Bitcoin legal tender in September 2021. While the adoption has been met with challenges, the recent price hike has also resulted in unrealized gains for El Salvador’s Bitcoin holdings. President Nayib Bukele has defended the country’s Bitcoin strategy, suggesting they are also holding for the long term.

Implications:
– Market Sentiment: The news highlights the bullish sentiment surrounding Bitcoin among some major players in the industry. Their continued holding despite the recent surge suggests confidence in Bitcoin’s long-term potential.
– Volatility: It’s important to remember that Bitcoin is a highly volatile asset. While the recent price increase has led to significant unrealized gains, it’s crucial to understand that these gains can quickly disappear if the price falls.
– Not Guaranteed Profits: It’s essential to remember that unrealized gains are not guaranteed profits. These profits only materialize if the asset is actually sold at a higher price.

Overall, the news emphasizes the potential rewards and risks associated with investing in Bitcoin. While major players holding onto their Bitcoin during a price surge might suggest confidence in the future, it doesn’t guarantee future success. Investors should always conduct thorough research, understand the inherent volatility, and carefully consider their risk tolerance before making any investment decisions.

NIGERIA SEEKS TO FINE BINANCE BILLIONS IN PENALTY

The BBC has reported that Nigeria’s central bank is seeking nearly $10 billion in fines from Binance, one of the world’s largest cryptocurrency exchanges. According to the report, the central bank alleges that Binance allowed Nigerian customers to illegally trade cryptocurrencies worth over 1.1 billion.

The central bank of Nigeria (CBN) had previously issued a directive in February 2021, ordering all banks and financial institutions to stop providing services to cryptocurrency exchanges. However, Binance continued to operate in Nigeria, allowing customers to trade cryptocurrencies on its platform.

The CBN has accused Binance of facilitating illegal foreign exchange trading and money laundering, and has imposed a fine of ?83 billion (approximately $10 billion) on the exchange. Binance has not yet responded to the allegations or the fine.

The Nigerian government has been cautious about cryptocurrencies, citing concerns over money laundering, terrorism financing, and other illegal activities. However, despite the government’s warnings, cryptocurrency adoption in Nigeria has been growing rapidly, with many Nigerians using cryptocurrencies as a way to bypass strict foreign exchange controls and access the global financial system.

The CBN’s actions against Binance highlight the ongoing regulatory challenges facing the cryptocurrency industry, particularly in countries with strict financial regulations. As such, it is likely that the regulatory landscape for cryptocurrencies will continue to evolve in the coming months and years.

VANGUARD’S INTEREST IN CRYPTO GROWS WITH CEO DEPARTURE

The sudden departure of Vanguard CEO Tim Buckley after 33 years has sparked speculation about the firm’s potential entry into the Bitcoin ETF space. Buckley, who has been with Vanguard since 1988, announced his departure in early March 2024, effective immediately.

Buckley’s departure has led to speculation that Vanguard may be considering entering the Bitcoin ETF space, as the firm has been exploring cryptocurrencies and blockchain technology in recent years. Vanguard has been known for its conservative investment approach, and has historically been slow to adopt new investment products.

However, in recent years, Vanguard has shown an increased interest in cryptocurrencies and blockchain technology. In 2021, the firm announced that it was exploring the possibility of offering cryptocurrency investments to its clients. Additionally, Vanguard has filed for a patent for a blockchain-based system for securities lending, suggesting that the firm is actively exploring the potential of blockchain technology.

If Vanguard were to enter the Bitcoin ETF space, it would be a significant development for the cryptocurrency market. Vanguard is one of the world’s largest investment firms, with over $7 trillion in assets under management. As such, its entry into the Bitcoin ETF space could lead to increased institutional adoption of cryptocurrencies, and further legitimize the asset class.

At this point, it is unclear whether Vanguard will actually enter the Bitcoin ETF space, and if so, when. However, the firm’s interest in cryptocurrencies and blockchain technology suggests that it is at least considering the possibility.

FAT-FINGER ERROR LEADS TO COSTLY MISTAKE

A Bitcoin Ordinals trader recently faced a costly “fat-finger” error, thinking he had paid 1,300 for a non-fungible token (NFT) that was actually listed at 13,000. The trader, who goes by the name “NFT God”, made the mistake while attempting to purchase a rare NFT on the Bitcoin Ordinals platform.

NFT God, who is a well-known NFT trader, made the mistake while attempting to purchase a rare “inscription” on the Bitcoin Ordinals platform. Inscriptions are a type of NFT that can be created on the Bitcoin blockchain, and are similar to traditional NFTs that are created on other blockchains, such as Ethereum.

However, NFT God made a mistake while entering the price of the NFT, accidentally entering 1,300 instead of 13,000. The mistake was only discovered after the transaction had been confirmed on the Bitcoin blockchain, leaving NFT God with a significant loss.

The incident highlights the risks and challenges of trading NFTs, particularly on newer platforms such as Bitcoin Ordinals. While NFTs have gained significant attention and popularity in recent years, the market is still relatively new and can be prone to errors and mistakes.

Additionally, the incident highlights the importance of double-checking and verifying information before making a trade, particularly when dealing with high-value assets such as NFTs. As the NFT market continues to grow and evolve, it is likely that similar incidents will continue to occur, highlighting the need for caution and due diligence in the space.

Thank you for joining me for this week’s edition of the MNO Weekly CryptoNews Digest! To all of my subscribers, commenters, and participants in the discussion – your engagement is what keeps this blog alive, and I am grateful for your support.

Join me again next week for another journey into the ever-changing landscape of cryptocurrencies. Until then, stay informed, stay engaged, and stay tuned to MNO – your go-to source for all things crypto!