The price of Bitcoin has plummeted more than 7.5% in the last 24 hours, plunging to around $62,000 on several major exchanges.

At the time of this publication, Bitcoin is trading at approximately $64,300 per unit.

Bitcoin's downfall was not an isolated event. The S&P 500 index, which comprises the largest American companies, also experienced a significant decline in the past week, accentuated on the last business day. The same occurred with markets in other countries, indicating a global market reaction.

The primary apparent reason for these market movements is the escalating tensions in the Middle East, specifically the conflict in Israel and the potential for a larger-scale conflict brewing, as Iran has launched attacks.

What Could Reverse the Trend?

The imminent approval of Bitcoin ETFs in Hong Kong, one of the world's five largest financial markets, could be a turning point. The impact of such a measure would be substantial, as it could potentially influence the Chinese government to relax restrictions on the use of digital assets.

Additionally, the next Bitcoin halving event, which reduces the issuance of BTC per mined block by half, is just days away. This event typically generates significant media attention and visibility for Bitcoin, serving as a remarkable marketing opportunity.

Furthermore, each halving reminds the market that Bitcoin is a scarce asset and that the available quantity for acquisition will become increasingly limited, which has historically acted as an upward catalyst for its price in the medium and long term.

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Author: Mark Pippen
London Newsroom
GlobalCryptoPress | Breaking Crypto News

 

On numerous occasions, China has banned various activities with bitcoin (BTC) and cryptocurrencies, including trading, transactions, and mining. For this reason, in mainland China, the launch of exchange-traded funds (ETFs) based on this type of financial asset is not permitted.

However, Hong Kong, while part of China, is considered a 'special administrative region' able to govern itself separately from mainland China in certain cases, one of which is the ability to regulate Hong Kong-based investment firms. When it comes to crypto, Hong Kong allows companies and residents to invest, putting them at odds with mainland China, where crypto remains banned.

Bitcoin ETF's via Hong Kong....

Financial news outlets in China are now reporting that financial giants such as Harvest Fund and Southern Fund have submitted applications to launch bitcoin ETFs through their Hong Kong subsidiaries. Harvest Fund manages more than $230 billion in total assets, while Southern Fund manages over $280 billion.

Additionally, smaller companies like 'Jiashi Fund' are attempting to use their Hong Kong subsidiary, 'Jiashi International,' to offer clients access to a Bitcoin ETF.

Regardless of size, all companies that have applied are now awaiting the decision of the Hong Kong Securities and Futures Commission, the regulatory authority that will be deciding on these applications.

Approval May Come Soon - Catching Many Off-Guard...

According to reports from China, these firms are expecting to receive approval to launch their Bitcoin ETF products and believe they could be actively promoting them as early as this quarter.

Bitcoin ETF approval in Hong Kong would be another major milestone for Bitcoin, making it easily accessible in one of the world's largest financial markets.

China has been off the radar for most crypto investors, there's been little reason to pay much attention as it's remained firm on their existing ban. While trading continued in Hong Kong, the volume coming from this small beacon of freedom isn't determining any winners and losers.   But ETF's bring the potential for large investments from Chinese corporations, also potentially attracting other Asian nations already active in the Chinese markets. 

An Influence on Mainland China...

If Bitcoin ETFs in Hong Kong turn out to be a success, and especially if they manage to attract international capital, companies in mainland China will likely respond by putting pressure on the government to reconsider their stance toward bitcoin.

Chinese President Xi Jinping will find it difficult to defend his position if the US, European nations, and now Hong Kong companies stake their claim in the multi-billion dollar Bitcoin ETF market, while those in mainland China are forced to remain spectators.

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Author: Adam Lee 
Asia News Desk / Breaking Crypto News

Sam Bankman-Fried's sentence of 25 years came down this week, following his lawyers and family making all possible attempts at getting him a shorter sentence.

Here we will review those attempts, knowing that ultimately in the end, they failed. 

Sam's Parents Fear His Social Awkwardness Puts him in 'Extreme Danger' in a Prison Environment...

Sam's family made a desperate plea to the judge, begging for leniency in his sentencing for the FTX cryptocurrency fraud case. His parents, Barbara Fried and Joseph Bankman, warned that their son's social awkwardness and inability to read social cues could put him in "extreme danger" behind bars, fearing for his life in a typical prison environment.

In a heartfelt letter, Barbara Fried described her son's touching but naive belief in the power of facts and reason, arguing that his outward presentation and misinterpretation of social cues could lead to potentially disastrous situations with fellow inmates. Joseph Bankman echoed these concerns, cautioning that his son's "odd" social responses could be misconstrued as disrespect or evasion, putting him at significant physical risk.

Also included, a letter from Sam's current jail bunkmate, a former NYPD officer arrested after being caught soliciting underage teens for explicit images on twitter, calling Sam the 'least intimidating person here' which has led to other inmates targeting him for harassment. 

Lawyers Argue for a DRASTICALLY Shorter Sentence...

With the value of crypto increasing, it appears the FTX's holdings are worth enough to fully cover everything owed to customers.

Focused on this new factor, Bankman-Fried's legal team also made an effort to secure a lighter sentence, arguing for a prison term of no longer than 78 months, or 6 ½ years. They say the trial largely revolved around the story of a rogue, careless CEO whos actions caused his customers to lose billions.

However, this argument inspired the team handling the FTX bankruptcy to write a letter to the judge, where they say removing Sam is the only thing that stopped the bleeding, and that he deserves no credit for the company's ability to pay users back today, because at the time he was spending customers money without their knowledge, he was gambling, and easily could have lost it all.  

In the End, All Attempts for a Lighter Sentence FAILED...

All hopes for leniency were shattered when U.S. District Judge Lewis Kaplan handed down a 25-year sentence for Bankman-Fried's role in the fraud that led to the collapse of FTX. Judge Kaplan firmly rejected Bankman-Fried's statements from the trial when he took the stand in his own defense,  accusing him of lying during his testimony.

"He knew it was wrong," Kaplan said, "He knew it was criminal. He regrets that he made a very bad bet about the likelihood of getting caught. But he is not going to admit a thing, as is his right."

Bankman-Fried was taken away by US Marshalls to begin his 25-year sentence - now living out the worst fears expressed by his concerned parents.

In conclusion...

It's expected that Sam's legal team will appeal, his parents stating they will "continue to fight" for their son, but the odds of that succeeding would be extremely low without some major new information coming to light.  

While Sam and his family may find it hard to find anything positive in how things ended, it's worth noting that his crimes gave the judge the option of sentencing him for up to 110 years in prison. While Sam's family and lawyers argued for a much shorter 6 years, getting 25 seems like a huge defeat - but compare to 110 years it seems the judge was still fairly lenient.

Sam will probably be free again, at 57 years old. It's widely believed that Sam has a secret stash of Bitcoin tucked away in a wallet no one knows belongs to him - what do you think the price of BTC will be in 2049?

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- Miles Monroe
Washington DC Newsroom
GlobalCryptoPress.com

That's what one lucky trader who used crypto exchange Bitmex managed to do yesterday.  As the market was in freefall and clearly intending to 'buy the dip' - the still anonymous user's 'dip' was more like a massive free leading deep under ground, finally landing at a discount of about $54,000!

The Obvious Question: How!?

It's important to note that there is no official answer to this question, yet. The exchange says they're "investigating the massive sell orders to better understand the circumstances that led to this unusual market activity".

We do know someone dumped 400 BTC onto the exchange, which is a lot for any exchange to immediately handle, and in the case of BitMEX they're not even among the top 10 exchanges daily volume.

Without any signs of a hack, or bug on the exchanges end, it appears the seller and his poor choice of where to sell his 400 Bitcoin was enough to cause a "flash crash" or a liquidity crisis. Flash crashes occur when there is a large sell order or a cascade of sell orders overwhelming the buy orders in the order book.

In Other Words, Someone Messed Up, BADLY...

While an exchange like Binance or Coinbase could handle selling 400 BTC  without causing any drastic price movement, BitMEX often doesn't move this much Bitcoin in an entire day.

Still, the seller could have at least set a fixed price near market value to prevent selling for much lower.  But this seems to have been a market order - which is designed to sell as fast as possible by accepting every offer on the books until they have nothing left to sell. 

For just a few seconds, Bitcoin drops under $9000, a price not seen since 2018...

It's strange, because this mystery trader was someone smart enough to have accumulated 400 BTC, but dumb enough to accidently sell them at price.

In Other Words, Someone Messed Up, BADLY...

While an exchange like Binance or Coinbase would have been able to handle a sell of 400 BTC  without causing any drastic price movement, BitMEX often doesn't move this much Bitcoin in an entire day.

Still, the seller could have at least set a fixed price near market value to prevent selling for much lower.  But this seems to have been a market order - which is designed to sell as fast as possible by accepting every offer on the books until they have nothing left to sell. 


How You Could Benefit from Situations like This in the Future...

Flash crashes are gone... in a flash, and you won't spot one happening until it's over.   So if you want to give yourself the very small chance that one day a flashcrash will benefit your wallet, you need to place low bids for your favorite coins now.  Make sure the orders are set 'Good Until Canceled' so your offers sit there ready to be accepted if they ever get the chance. But realistically, you should consider the funds used for this as funds you're simply HODLing, as the end result will probably be the same. 

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Author: Ross Davis
Silicon Valley Newsroom
GCP | Breaking Crypto News

The USDT (Tether) stablecoin, issued by the Tether company, has exceeded $100 billion in market capitalization for the first time ever.

While used on many blockchains, the Ethereum and Tron blockchains account for 99% of the total supply. 

This achievement not only reinforces USDT's position as the leading stablecoim , but also widens its lead over its main competitor, Circle's USDC , which currently boasts a market capitalization of just $28 billion. 

Tether Says Every USDT Token is Backed 1:1 with the US Dollar - This Was Once a Controversial Claim... 

"A few years ago there were major issues with Tether withholding information and putting off 3rd party audits, all while consistently minting millions of new tokens as they grew. Concerns that Tether had secrets that could crash the market were voiced by dozens of established industry members...."  says Global Crypto Press Association editor Ross Davis "Now this part is just my opinion, but I think these concerns were true at one point, but Tether managed to avoid the issue long enough that with their continued growth, they had the time and money to fix the problem."

Tether now undergoes 3rd party auditing, and publicly shares their treasury holdings on their website. Currently, Tether has $5 Billion more in assets than they have in liabilities.

A Bullish Signal...

More USDT being issued it considered a bullish indicator, showing increased intention to invest in the crypto market - there's really no reason to have USDT unless you plan to turn that into some other coin.

- Miles Monroe
Washington DC Newsroom / GlobalCryptoPress.com

Virunga National Park, deep within the Congo, is home to 1,000 mountain gorillas whos population has been on a steady decline for decades, leading to the species officially labeled 'endangered' in 2018.

Now they've launched a two-part plan that implements wildlife conservation, and creates a way for the park to fund these efforts long term.  The economic solution comes in an unexpected form - cryptocurrency mining.

The park was recognized by the World Economic Forum (WEF) in a recently published video, praising those involved with finding creative solutions to the challenge of preserving wildlife within it. 

Clean Energy Mining...

Rivers within the Virunga National Park are used run hydroelectric generators, operated by technicians from nearby villages, providing clean renewable energy to Bitcoin mining operations inside the park. 

Another benefit of having this energy source is that they're able to attract miners currently running miners on electricity from coal-burning power plants. Not only highly polluting, coal has become a black market in the region, so the park aims to "reduce the incentive for illegal charcoal trafficking, an activity that has fueled violence led by militias in the region," says Foro from Economic World.

The Park's Hydroelectric Power Supplies the Miners with Clean Energy.

Surplus energy is channeled into cocoa production and nearby communities, while revenue generated from Bitcoin mining maintain the park's infrastructure, and pay their staff. 

Affordable energy is typically the largest expense of the cryptocurrency mining operation, so this is a rare situation where truly everyone wins! In the future we hope to see this new relationship between crypto and nature conservation mirrored in other places around the world!

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Author: Mark Pippen
London Newsroom
GlobalCryptoPress | Breaking Crypto News

It wasn't long ago when Riot Platforms launched North America's largest mining farm in Rockdale, Texas - but now they want to go even bigger.

Just announced, they've begun construction at a colossal new site in Corsicana, Texas - once complete, it will become the biggest Bitcoin mining facility in the world!

The new location will be even larger than their existing facility in Rockdale, seen here.

Known as the US State Most Welcoming to Miners, the Infamous Texas Heat Poses a Challenge...

Mining rigs generate intense heat, making cooling a paramount concern, most of the daily work of running a mine revolves around keeping the rigs from overheating. This is why many mining companies seek locations year-round frigid temps - but even in the winter you won't find temperatures this low anywhere in Texas.

To combat this, Riot partnered with HashHouse Tech to use immersion-cooling, which surrounds the miners with a flow of liquid coolant, capable of cooling at 20X the efficiency of air. This strategic move ensures they can stay operational even in the Lone Star State's scorching sun. 

Massive Mining Power...

Riot expects their total mining power (hashrate) to hit 20.1 EH/s once the new facility launches by the end of 2024. Crunching the numbers, first taking the next halving event into account, and using $50k for bitcoin's price, at that hashrate the company should earn around $800,000 per day.

Of course, that's before they pay the bills, and mining always has a big one huge bill - electricity. It's common for the majority of earnings to be lost to the power bill.  Riot is part of a special program in Texas that involves mining companies pre-paying for electricity, but when the grid is reaching capacity they have the ability to lower their usage and sell some of this power back to the grid. 

Texas officials have praised the program as a solution that prevents the grid shutting down when overwhelmed on hot summer days. Last year Riot earned over $30 million selling power back to Texas, but remember they first had to buy it up front so only a small portion of that is profit. It's hard to imagine any deal where less than 50% of revenue goes to paying electricity costs.

Profit Potential...

Last month Riot mined 520 BTC, worth around $250 Million - and this is before the largest mining farm in the world joins in. Along with the additional ability to sell stock (Nasdaq Symbol RIOT)  when they need to raise funds, Riot is quickly becoming a vital member of the industry.

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Author: Oliver Redding
Seattle Newsdesk  / Breaking Crypto News
 

As BTC ETF anticipation gripped the market last year, traders have been looking at ether as the next likely candidate to get spot ETF approval in the U.S.

Will the SEC Approve an ETH ETF? Let's look at the arguments both ways...

Why Some Believe the SEC will DENY The Applications...

JPMorgan's analysts are skeptical. “While we are sympathetic... we are skeptical that the SEC will classify ether as a commodity as soon as May” lead analyst Nikolaos Panigirtzoglou said in a note to clients on Jan. 18, adding that the chances of approval of a spot ether ETF by May this year is “not higher than 50%.”

The main reason - Ethereum’s transition from the proof-of-work to proof-of-stake consensus mechanism in 2022 and the negative impact this has had on decentralization.  

Ether now looks similar to altcoins the SEC has classified as securities.

Why Some Think an ETH ETF Will Soon be APPROVED...

The SEC recently sued virtually every major US crypto exchange for selling unlicensed securities, providing all with a list of which coins they believe violate regulations - Ethereum was missing from all of them. 

Another potentially positive sign is the approval of ether futures-based ETFs in September last year, which implies the SEC has officially deemed Ethereum a commodity.

Note that the ETH Futures ETF's that were approved last year are generally used for speculative or hedging purposes - with a 'futures' ETF no party involved needs to actually purchase any crypto. Investors instead buy contracts where they attempt to guess what the price will be on preset dates the contract expires. A true ETF, like what was just approved for bitcoin, requires the company selling shares of the ETF it to truly own the coins the ETF represents, and the only price that matters is the actual price it is trading at.

What You Can Do Now...

Both sides have some very valid points/concerns, so what does that mean? In my opinion, the main takeaway is that there are legitimate reasons to speculate ETH ETF's may be approved.

Sure, same goes for it being denied, however, current ETH holders did not invest because they believed an ETF was eventually coming, so the potential of one being denied won't cause current investors to sell. However, the potential an ETF being approved brings in new buyers and causes existing investors to buy more.

This scenario where existing investors see no reason to sell if the ETF news is bad, while the potential for good news becomes a reason for people to buy, can only result in gains as anticipation builds. Of course, a non-ETF related story that overshadows everything could happen as well - but unless it does, there may be a great short-term opportunity regardless of the final outcome.

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Author: Justin Derbek
New York News Desk
Global Crypto Press Association / Breaking Crypto News

With the approval of Bitcoin ETF's in the US, many were expecting to see the gains in Bitcoin's price to continue, but despite optimistic forecasts that the long-awaited ETFs would trigger a bitcoin price surge, the opposite happened - now we're learning why.

Heavy selling by FTX's bankruptcy estate appears to be a major contributor to bitcoin's price drop since the launch of US ETFs.

The Grayscale Bitcoin Trust (GBTC) was among those receiving ETF approval, so they converted their 'Trust' account into an ETF on January 11. 

FTX had purchased 22.3 million shares of GBTC valued at $597 million in October 2022, but when this converted to an ETF the value of FTX's position jumped to around $900 million.

This is when FTX liquidators decided it was time to sell, all of it.  

FTX's bankruptcy estate dumped 22 million GBTC shares worth close to $1 billion since ETFs were approved.

The irony is painful - Bitcoin ETFs finally receive approval, the crypto world celebrates this 'new gateway for mainstream investors' to get in the crypto market, logically many expected a boost in demand and price.

Instead, we're once again helpless and unable to do anything but watch Bankman-Fried's actions lead to consequences for people far outside of FTX. Their liquidation spree officially put a dampener on any immediate ETF boosts to the market. 

The Bright Side...

Now that FTX has sold its full position, pressure to sell may greatly decrease, bringing back the bull market. 

But for now, bears remain in control as today brought more downward movement. 


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Author: Mark Pippen
London Newsroom
GlobalCryptoPress | Breaking Crypto News

The announcement couldn't have happened any weirder, as the Bitcoin ETF's that were approved today were first announced by the SEC on X (Twitter) two days ago... but then they claimed their account was hacked, and stated that no ETFs had been approved.

Now that we know the supposed 'hack' simply posted accurate information before it was official, some are questioning if it was an error all along.

But how we found out doesn't really matter anymore, because it's now confirmed and re-confirmed that the Securities and Exchange Commission officially approved 11 applications for Bitcoin ETFs, the largest firms among them include BlackRock, Ark Investments/21Shares, Fidelity, Invesco, and VanEck.

Trading Begins...Now!

Because the SEC must respond to applications  ETF applicants were anticipating an answer from the SEC at any moment, they were ready to go before officially receiving approval - because of this, they went live the next day.

In their first day, the newly approved Bitcoin ETFs saw a combined $5 billion in volume, top performers so far are BlackRock's iShares Bitcoin Trust which is trading under "IBIT.O", Grayscale Bitcoin Trust "GBTC.P", and ARK 21Shares Bitcoin ETF with symbol "ARKB.Z".

They Say It's a "Game Changer" - But To Who?

Traders from both the stock and crypto world have repeated the words "game-changer" when describing the impact this could have on cryptocurrencies, citing the new investors who now have exposure to the world's largest cryptocurrency. So who are these investors? If they're interested in Bitcoin, what were they waiting for?

The newly launched ETFs all fighting over what they believe is a large segment of both individuals and companies that are interested in investing in Bitcoin, but hesitated to pull the trigger and buy some. Many potential investors cite their main concern is simply how to securely hold worth of a digital assets, which can be intimidating on a technical level.

For a company, acquiring crypto comes with all new cyber-security concerns, where every employee is a potential security hole. Stocks can't really be 'hacked' and stolen, gold and silver can be stored in any bank vault - while storing crypto safely and securely is easy to do, people who aren't experienced with tech are often too intimidated by the risks.

Now, individuals, companies, and even smaller investment firms can pass the responsibility of storing Bitcoin securely on to the industry giants, who have the budget necessary for hiring cybersecurity experts and the tech needed to implement multi-level security systems.

A Tsunami of Money Headed Towards Crypto?

Many believe the floodgates are now open for massive amounts of institutional investment funds to enter the market, and their reasoning actually makes a lot of sense.

The companies that were just approved to offer Bitcoin ETFs represent $20+ trillion in assets under management - meaning if just 2% of that goes toward crypto we'll see $400,000,000,000 (400 billion) injected into the market. 

The crazy thing is, that estimate may be way too small, as we've talked with multiple financial advisors at multiple firms over the past few years when covering various stories about crypto being implemented into their business - one thing we repeatedly heard was that they recommend their client's portfolio to contain anywhere from 5% to 10% crypto.

A recent survey of financial advisors conducted by VettaFi and Bitwise found that 88% said they support investing client's funds in bitcoin, but were waiting for spot bitcoin ETF to be approved.

Then Why Did Bitcoin DROP Following ETF Approval?

With the overwhelming opinion being that the ETFs would be approved, along with the deadline of Jan 10th being public, by the time the ETFs were officially approved every investor who bought more bitcoin with this in mind bought days or weeks ahead. 

Which is why the quote "buy the rumor, sell the news" is something most in the crypto world are used to seeing.  Most buying relating to a news story happens as speculation grows, once that speculation becomes fact, people sell.

Massive Bull Run About to Begin... VERY Soon?

In closing, the only thing we've officially gained this week are new possibilities, a 'reasonable expectation' for Bitcoin's future price just went up.  But if there's one thing I've learned in my 6 years in the crypto world; prepare for what COULD come next, and never believe you know what that will.

With that said, prices have returned to where they were before ETF hype took over the headlines - so if the 'sell the news' process is complete, the market is probably about to turn positive. If it does, I believe it'll have some strength behind it - many people recently took some profits, and in the Bitcoin world a lot of selling is followed by lot of buyers looking to buy more at a lower price. 

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Author: Oliver Redding
Seattle Newsdesk  / Breaking Crypto News