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Cathie Wood: Ark dumps 500K GBTC shares, adds Coinbase stock as Bitcoin recovers 40%

Cathie Wood's Ark Invest offloaded a chunk of its Grayscale Bitcoin Trust (GBTC) shares since November's Bitcoin (BTC) price lows, the latest data shows.

Cathie Wood's Ark short-term cautious on GBTC

Ark Invest added 450,272 GBTC shares worth $4.5 million to its ARK Next Generation Internet ETF (ARKW) in November 2022. At the time, GBTC was trading in the $7.46-$9.48 range versus $12.25 in January 2023.

GBTC price, of course, recovered alongside Bitcoin, rising roughly 40% from its November lows. The recovery in January also helped reduce the GBTC "discount" from nearly 50% to 40%, according to YCharts.

GBTC daily price chart. Source: TradingView

Interestingly, the share price rebound coincided with a reduction in ARKW's GBTC holdings by 500,000 shares, suggesting profit taking in the short term.

GBTC shares (purple) in Ark's ETF versus its price (orange). Source: Cathiesark.com

Moreover, Ark's reduction in shares since November appears in line with its officially "bearish view" on the Grayscale Bitcoin Trust, as mentioned in its December report, which stated that:


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BTC metrics exit capitulation — 5 things to know in Bitcoin this week

Bitcoin (BTC) starts the last week of January in fine form after sealing its highest weekly close in five months. 

Despite opposition, the largest cryptocurrency is holding on to its newfound strength and continues to surprise market participants.

This is no mean feat — market sentiment has plenty to spook it and initiate a rethink among investors. Macro conditions remain uncertain, while within Bitcoin, research has highlighted whales on exchanges potentially moving prices artificially with huge amounts of liquidity.

Nonetheless, Bitcoin has seen its most impressive gains percentage-wise in over a year, and hopes remain that the good times will endure. What could that depend on?

Cointelegraph takes a look at some of the major factors to keep in mind as a January unlike any other draws to a close.

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Token dump following Binance listing raises insider trading suspicions

Coinbase director Conor Grogan speculated it could be either a rogue employee or a trader who might have access to the losing API.

Cardano recovers from an outage on 50% relay and block-producing nodes

An anomaly apparently caused around half of Cardano’s nodes to disconnect and restart over the weekend, with the root cause still under investigation.

Bitcoin price surge: Breakthrough or bull trap? Pundits weigh in

Bitcoin nearly broke its record for the longest streak of daily green price candles this month, but many believe its recent surge could be short-lived.

Vitalik Buterin divulges the ‘largest remaining challenge’ for Ethereum

While the concept of stealth addresses appears complex in theory, Buterin previously described it as a “low-tech approach” compared to other Ethereum privacy solutions.

Davos-launched blockchain project aims to be the ‘SWIFT’ of stablecoins and CBDCs

A SWIFT-style system for bank-issued and regulated digital currencies was launched by a firm involved in building China’s national blockchain project.

Bitcoin derivatives data shows room for BTC price to move higher this week

This week Bitcoin (BTC) rallied to a 2023 high at $23,100 and the move followed a notable recovery in traditional markets, especially the tech-heavy Nasdaq Composite Index, which gained 2.9% on Jan. 20.

Economic data continues to boost investors' hope that the United States Federal Reserve will reduce the pace and length of interest rate hikes. For instance, sales of previously owned homes fell 1.5% in December, the 11th consecutive decline after high mortgage rates in the United States severely impacted demand.

On Jan. 20, Google announced that 12,000 workers were laid off, more than 6% of its global workforce. The bad news continues to trigger buying activity on risk assets, but Dubravko Lakos-Bujas, chief U.S. equity strategist at JPMorgan, expects weaker earnings guidance to "put downward pressure" on the stock market.

The fear of recession increased on Jan. 20 after Federal Reserve Governor Christopher Waller said that a soft recession should be tolerated if it meant bringing inflation down.

Some analysts have pegged Bitcoin's gains to Digital Currency Group filing for Chapter 11 bankruptcy protection — allowing the troubled Genesis Capital to seek the reorganization of debts and its business activities. But, more importantly, the move decreases the risk of a fire sale on Grayscale Investments assets, including the $13.3 billion trust fund Grayscale GBTC.

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Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher

After nearly a 20% rally last week, Bitcoin (BTC) is on track to end this week with gains of roughly 10%. Bitcoin’s rally has improved sentiment and attracted buying in several altcoins. This sent the total crypto market capitalization firmly above the $1 trillion mark.

The strong recovery in Bitcoin has startled several analysts who remain skeptical about the rally. Some believe that the current rise is a dead cat bounce that will reverse direction sharply, while others see similarities between the current rally and the 2018 bear market recovery.

Crypto market data daily view. Source: Coin360

Although traders should be ready for any eventuality, the pace of the rise in Bitcoin does point to a possible major bottom. There are likely to be bumps down the road but the dips are likely to be aggressively purchased by traders.

Bitcoin’s sustained recovery may encourage buying in select altcoins.

Let’s study the charts of Bitcoin and select altcoins that are showing strength in the near term.

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Terra lending protocol Mars to launch mainnet

The Mars Hub will launch an independent Cosmos application chain and issue MARS to users who hold the token during the two snapshots on Terra Classic.

Binance Charity to provide over 30K Web3 scholarships in 2023

Among the education centers involved include colleges in Australia, Cyprus and Germany, Nigerian-based tech hub Utiva, Women in Tech, and two Ukrainian organizations.

Binance's SWIFT banking partner set to ban USD transfers below $100K

Binance stressed that credit and debit card payments will continue to be accepted and that non-USD bank transfers would still be processed through the SWIFT payment system.

Genesis files for bankruptcy, FTX explores a reboot, and Bitzlato news: Hodler’s Digest: Jan. 15-21

Top Stories This Week

Crypto lender Genesis files for Chapter 11 bankruptcy

FTX contagions continue to spread through the crypto industry, with Genesis Capital filing for bankruptcy protection in New York, estimating liabilities in the range of $1 billion to $10 billion, and assets at the same level. The company plans a “dual track process,” which will pursue “sale, capital raise, and/or an equitization transaction” and enable the business “to emerge under new ownership.” Genesis’ derivatives, spot trading, broker-dealer and custody businesses are not included in the proceedings, according to the company. In an effort to maintain liquidity, Genesis parent company Digital Currency Group suspended dividend withdrawals.

Bitzlato and its founder face enforcement actions from US authorities

United States authorities have taken enforcement actions against crypto firm Bitzlato, seizing the company’s website and labeling the business as a “primary money laundering concern” connected to Russian illicit finance. As part of the case, FBI officials arrested Russian national Anatoly Legkodymov in Miami. The criminal complaint claims the firm was a “crucial financial resource” for the Hydra darknet marketplace, allowing users to launder funds, including those from ransomware attacks.

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Bitcoin due new 'big rally' as RSI copies 2018 bear market recovery

Bitcoin (BTC) is in for a new “big rally” as market strength copies conditions from after the 2018 bear market.

According to the latest analysis, BTC/USD will continue to head higher “after some consolidation” thanks to key signals from its relative strength index (RSI).

Bitcoin prints never-before-seen bullish divergence

With the BTC price gains still coming, Bitcoin bulls are feeling increasingly confident despite widespread mistrust of the longevity of the current rally.

For popular trader Crypto Wolf, a key phenomenon now underway sets Bitcoin’s latest recovery apart from all others.

RSI, he noted on Jan. 18, had printed a long-awaited bullish divergence on weekly timeframes — something which has never happened before.

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Dead cat bounce? Bitcoin price nears $23,000 in fresh 5-month high

Bitcoin (BTC) took a swing at $23,000 into Jan. 21 as Asia buyers drove fresh market strength.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bid liquidity causes suspicion

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD battling bears to reach $22,790 on Bitstamp overnight — its highest since August.

With new multi-month peaks coming in quick succession despite fears of a major correction, Bitcoin continued to surprise as traders cleared the way for more upside.

As noted by intraday trader Skew, Asia was leading the way into the weekend, with sellside pressure from market makers being absorbed on exchanges.

“Another rally driven by asia bid. TWAP buyers absorbing the sell pressure from MMs. Large spot bid lifting offers & ask wall pulled prior to another short squeeze,” Skew commented on a composite chart.

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Bitcoin price rally provides much needed relief for BTC miners

Bitcoin’s prolonged breakout above $22,000 is easing pressure on razor thin profit margins for BTC miners.

Bitcoin price rally provides much needed relief for BTC miners

Bitcoin mining powers network transactions and BTC price. During the 2021 bull run, some mining operations raised funds against their Bitcoin ASICs and BTC reserves.

Miners also preordered ASICs at a hefty premium and some raised funds by conducting IPOs. 

As the crypto market turned bearish and liquidity seized within the sector, miners found themselves in a bad situation and those who were unable to meet their debt obligations were forced to sell the BTC reserves near the market bottom or declare bankruptcy

Notable Bitcoin mining bankruptcies in 2022 came from Core Scientific, filing for bankruptcy, but BTC’s early 2023 performance is beginning to suggest that the largest portion of capitulation has passed.

Despite the strength of the current bear market, a few miners were able to increase production throughout 2022 and on-chain data shows Bitcoin miner accumulation began to increase in December 2022 and momentum appears to be continuing into 2023.

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DeFi should complement TradFi, not attack it: Finance Redefined

Top 100 DeFi tokens continued their bullish momentum into third week of January with majority of the tokens trading in green on weekly charts.

GameFi needs a wider choice of products to take off, Animoca Brands CEO says

A wider choice of quality games is what is needed for bringing the masses into GameFi, according to Robby Yung, CEO of Animoca Brands.

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