Bitcoin has rebounded sharply, climbing above $93,000 as traders anticipate a potential interest rate cut from the Federal Reserve. This surge comes as approximately $3 billion in short positions are at risk of liquidation if Bitcoin rises just 3% to $96,250, highlighting the precarious positioning of many traders ahead of the Fed's decision. With a significant $19 billion in leveraged positions recently flushed from the market, analysts are noting signs of "seller exhaustion," which could support further price increases. The current market sentiment is cautiously optimistic, with Bitcoin's price showing resilience despite previous volatility.
The launch of the Grayscale Chainlink Trust ETF, which attracted approximately $41.5 million on its first day, reflects growing institutional demand for altcoins beyond Bitcoin and Ethereum. This ETF marks a significant milestone in the expansion of cryptocurrency investment products, potentially paving the way for further institutional adoption. Additionally, XRP ETFs have seen positive inflows for 11 consecutive days, with assets under management surging to $844 million. This trend indicates a robust institutional appetite for cryptocurrency exposure, particularly as the market begins to recover from recent downturns.
Bitcoin is currently testing critical resistance levels, with a break above $93,321 potentially triggering the liquidation of $570 million in short positions. The asset's recent price movements suggest a stabilization phase, with traders eyeing the $103,000 supply zone as a target for future gains. Meanwhile, XRP is showing signs of strength, trading at $2.17 with a potential rally target of $2.50. The asset's price has been buoyed by strong ETF inflows and positive technical indicators, suggesting a bullish outlook if it can break above key resistance levels.
The convergence of institutional interest and favorable macroeconomic conditions could signal a new phase for the cryptocurrency market. As traditional finance increasingly integrates digital assets, the potential for sustained recovery in Bitcoin and altcoins appears promising. With the Federal Reserve's upcoming decision likely to influence market sentiment, traders are positioned for volatility. The combination of institutional ETF activity and technical recovery signals could set the stage for significant price movements in the coming weeks.
Axis has raised $5 million in a funding round led by Galaxy Ventures to launch its onchain yield protocol for USD, bitcoin, and gold. The company has also deployed $100 million in private capital through its closed beta to stress-test its delta-neutral arbitrage engine.
Ostium, a protocol focused on real-world assets (RWAs), has raised $24 million to scale its decentralized perpetuals exchange beyond U.S. markets.
Binance has appointed co-founder Yi He as the new co-CEO alongside Richard Teng. This announcement was made during Binance Blockchain Week.
Solana Mobile is set to launch its native SKR token in January 2024, with a total supply capped at 10 billion tokens. This token is integral to the Solana mobile ecosystem, specifically designed to enhance control, economics, incentives, and ownership within the platform. The introduction of SKR is anticipated to bolster user engagement and drive adoption of the Seeker phone, a device aimed at integrating mobile technology with blockchain capabilities.
The SKR token's launch is a strategic move by Solana Mobile to expand its ecosystem and enhance user interaction. By tying the token to the Seeker phone, Solana aims to create a more integrated experience for users, potentially leading to increased adoption rates. This initiative reflects a broader trend in the crypto space where mobile technology is increasingly intertwined with blockchain, suggesting a growing market for mobile-centric blockchain applications.
Ethereum has successfully activated the Fusaka upgrade on its mainnet, which took place on December 3 at 22:04 UTC. This upgrade introduces PeerDAS technology, allowing for up to 8x data throughput for rollups and increasing the gas limit from 45 million to 60 million units. Currently, Ethereum processes between 1.3 and 1.8 million transactions daily, and the upgrade is expected to enhance the network's performance significantly, especially for Layer 2 solutions and rollups.
As of the latest reports, Ethereum holds over $73 billion in value locked in decentralized finance (DeFi) applications. The Fusaka upgrade is anticipated to further bolster this figure by improving transaction capabilities and user experience through enhanced rollup economics.
Following the Fusaka upgrade, Ethereum's price surged past the critical $3,200 resistance level, contributing to a broader market rebound. DeFi tokens experienced gains exceeding 5%, indicating a positive shift in market sentiment, although Bitcoin's selling pressure remains a concern as new addresses are holding fewer coins.
The U.S. Securities and Exchange Commission (SEC) has halted the launch of several proposed exchange-traded funds (ETFs) that aimed to deliver three to five times the daily performance of cryptocurrencies, including Bitcoin and Ether. The SEC's intervention stems from concerns that these funds violate Rule 18f-4 under the Investment Company Act of 1940, which restricts a fund's value-at-risk exposure to 200% of its reference benchmark. ProShares, one of the firms affected, has been instructed to either amend its filings or withdraw them entirely, resulting in the immediate retraction of several applications for 3x leveraged crypto ETFs, including those linked to Solana and XRP. This regulatory move indicates a tightening stance by the SEC on high-risk financial products in the crypto space, as no 5x leveraged ETFs have ever been approved in the U.S. and even 3x products face stringent limits.
At the DealBook Summit, BlackRock CEO Larry Fink acknowledged the evolving utility of Bitcoin, while Coinbase's Brian Armstrong revealed that the exchange is conducting pilot programs with major U.S. banks focused on stablecoin and crypto trading. Armstrong highlighted that recent legislative efforts regarding stablecoins and market structure are indicative of a significant shift in the policy landscape, suggesting that 2025 could be a pivotal year for crypto regulation. This growing institutional interest is seen as a driving force behind the mainstream integration of digital assets into the financial system.
The UK has passed a new law concerning crypto property, which is expected to enhance the legal framework surrounding digital assets in the country. This development aligns with a broader trend of regulatory evolution in various jurisdictions as they seek to adapt to the growing significance of cryptocurrencies. The implications of this law could facilitate clearer ownership rights and foster greater confidence among investors in the UK crypto market.
Two Ukrainian nationals have been arrested for the torture and murder of a 21-year-old student in Vienna whose body was found burned beyond recognition in his Mercedes following a violent assault that left his crypto wallet drained. The victim's teeth were allegedly knocked out before he was doused with gasoline and set on fire, suffocating on his own blood before the flames consumed him. Police detected withdrawals from the victim's crypto wallet and seized a large amount of cash from the suspects, though the motive remains officially unclear.
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