Bitcoin reaches $67k on Friday after institutional drives and
regulatory expectations
On Friday, Bitcoin’s price (COIN:BTCUSD) experienced a strong
recovery, surpassing US$ 67,000 after a brief drop below US$ 65,000
the previous day. Bitcoin’s price was currently around US$ 67,160,
with a 3% increase over 24 hours. The recovery was fueled by
several positive entries in Bitcoin ETFs, which recorded additions
for four consecutive days. Significant institutional contributions
were also observed; notably, Morgan Stanley revealed a significant
investment of US$ 269.9 million in the Grayscale Bitcoin Trust
(AMEX:GBTC). Additionally, the expectation of crucial regulatory
developments in the US next week and the optimistic prospects for
the approval of an Ethereum ETF by Coinbase also contributed to the
momentum.
Decisive movement for cryptocurrency regulation in the US
The US House of Representatives is preparing to vote on the
FIT21 bill, a significant step towards official cryptocurrency
regulation. This bill will designate the Commodity Futures Trading
Commission (CFTC) as the primary regulator of digital assets,
establishing clear guidelines in collaboration with the Securities
and Exchange Commission (SEC). In addition to consumer protections,
the law proposes barriers against risky practices, aiming to
accelerate blockchain technology advancement, promote financial
inclusion, and reinforce national security. The vote is scheduled
for next week.
Expiry of US$ 2.1 billion in Bitcoin and Ethereum options may
increase volatility
The cryptocurrency market is on the brink of a significant
liquidation, with US$ 2.1 billion in Bitcoin and Ethereum options
set to expire. About 18,183 Bitcoin option contracts with a nominal
value of US$ 1,184 million will expire this Friday, similar to last
week’s volume. Additionally, 321,925 Ethereum contracts are also
scheduled to expire today, with a nominal value exceeding US$ 940
million.
Prospects for the approval of Ethereum ETF and market impact
David Han, an analyst at Coinbase Global (NASDAQ:COIN), suggests
that the market might be underestimating the probability of
approving spot Ethereum ETFs, despite the generally pessimistic
view. Han highlights that there are no significant oversupplies on
the supply side that could pressure Ether’s price. With crucial SEC
decisions expected on May 23 and 24 regarding the applications from
VanEck and ArkInvest/21 Shares, the scenario is uncertain. Although
approval seems distant, Coinbase maintains a “when, not if” outlook
based on previous Bitcoin ETF approvals. Han also points out
crucial differences between Ethereum and Bitcoin, especially the
proof of stake mechanism, as factors that might influence the
decision.
Record entries in US Bitcoin ETFs while Hong Kong records outflows
On May 16, US Bitcoin ETFs received a notable entry of US$ 257.3
million. The three biggest highlights were BlackRock’s ETFs
(NASDAQ:IBIT), with a daily entry of US$ 93.7 million, Fidelity’s
ETF (AMEX:FBTC) which added US$ 67.1 million, and ARK 21Shares
(AMEX:ARKB), with entries of US$ 62.0 million. Conversely, in Hong
Kong, the three listed BTC ETFs experienced outflows of US$ 13.2
million on May 16, marking one of the largest withdrawal days for
digital asset ETFs in the region.
Impact of the Smart Nav Pilot on the rise in Chainlink’s price
The Depository Trust & Clearing Corporation (DTCC) revealed
positive results from its Smart NAV pilot, which utilized
distributed ledger technology to improve data dissemination in
mutual fund services. Chainlink’s technology was crucial for
enabling interoperability and data transmission between
blockchains, highlighting the potential for its expansion in
broader financial processes. This advance boosted the price of
Chainlink (COIN:LINKUSD), which reached a high of US$ 16.77, quoted
at US$ 16.06 at the time of writing. The token has risen by 13.22%
over the past 7 days.
Solana dominates in transaction speed among major blockchains
Solana established a new standard for speed in significant
blockchains, achieving a record of 1,504 transactions per second
(TPS) on April 6, driven by the popularity of memecoins. This puts
Solana 46 times ahead of Ethereum and more than 5 times above
Polygon, Ethereum’s leading scaling solution. Despite this
leadership, Solana operated at only 1.6% of its theoretical maximum
capacity of 65,000 TPS. With increasing transaction volumes, the
network faced congestion, raising questions about how future
updates might improve its actual processing capacity.
LocalMonero shuts down after nearly seven years of operation
As of May 14, LocalMonero, a peer-to-peer exchange platform for
the privacy-focused cryptocurrency Monero, ceased all trading and
plans to fully shut down in six months, announced AgoraDesk, the
parent company. The decision to close after nearly seven years was
attributed to a combination of internal and external factors.
LocalMonero faced increasing challenges, particularly due to
regulatory pressure on privacy coins.
Coinbase shares rise after Bank of America recommendation
The Bank of America (NYSE:BAC) upgraded its rating on Coinbase
Global from “Underperform” to “Neutral” and raised the target price
from $110 to $217. The move boosted Coinbase shares by 4.7% during
Friday’s trading. The improved rating reflected a favorable
macroeconomic environment benefiting the cryptocurrency market and
trading volumes, according to analysts led by Mark McLaughlin. They
also cited strict expense management and greater diversification at
Coinbase as factors that could boost the company’s profits, despite
regulatory risks and reliance on transaction revenues.
Binance executive denied bail in Nigeria
In Abuja, Justice Emeka Nwite of the Supreme Court refused to
grant bail to Tigran Gambaryan, a Binance executive, citing flight
risk. Gambaryan, who is facing charges of money laundering and tax
evasion, has been detained since his arrival in the country in
February for discussions about the company’s operations.
Binance collaborates with Taiwanese authorities on money laundering
case
Binance, in collaboration with the Investigation Bureau of
Taiwan’s Ministry of Justice and the Taipei District Prosecutors
Office, tackled a money laundering scheme involving 200 million New
Taiwan dollars, equivalent to $6.2 million. The operation
dismantled a digital asset fraud, where criminals used false
documents and IDs to illegally move large sums through
cryptocurrencies. The initiative helped prevent evasion of
authorities and highlighted transnational cooperation in financial
investigations.
French regulator warns about unauthorized operation of Bybit in
France
The Autorité des Marchés Financiers (AMF) of France issued a
warning on May 16, advising cryptocurrency investors that Bybit
does not have the necessary registration to operate in the country.
The regulator highlighted that Bybit, the third-largest exchange by
trading volume, has not met local requirements to register as a
digital asset service provider. The AMF had already blacklisted
Bybit since May 2022 and now considers taking legal actions that
may include blocking access to the platform in France. The AMF
advises investors to protect their assets in light of the potential
service disruption.
Stablecoin sUSD fluctuates after a spike in selling volume
The decentralized stablecoin sUSD, from Synthetix, deviated from
its $1 reference value on Friday due to a spike in sales on
decentralized exchanges. The sUSD, which aims to maintain parity
with the dollar through an over-collateralized system of crypto
assets, dropped to $0.92, later recovering to $0.96. The
instability followed the withdrawal of a major liquidity provider
on the Curve exchange, who sold significant amounts of sUSD,
directly impacting its market value.
Digital yuan expansion to Hong Kong in pilot test
The People’s Bank of China (PBoC) and the Hong Kong Monetary
Authority (HKMA) launched a pilot test that enables the use of the
Digital Yuan (e-CNY) for cross-border payments. Announced on May
17, the program aims to facilitate safer and more innovative
transactions between Hong Kong and mainland China. Users in Hong
Kong can top up their digital wallets in yuan through 17 local
banks, connecting to the Fast Payment System (FPS) without needing
a mainland bank account.
Dolce & Gabbana faces lawsuit over delays in NFT deliveries
Dolce & Gabbana USA is being sued for failures in the
delivery of its non-fungible tokens (NFTs). According to Bloomberg,
Luke Brown, who spent $6,000 on NFTs and lost $5,800, initiated the
lawsuit in the Southern District of New York. He claims that the
promised NFTs, including digital clothes for use in the metaverse,
were delivered with significant delays and with usage restrictions
on a less popular platform.
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