Crypto Week-in-Review


Bitcoin’s Price Surge Sparks Volatility

  • 20% Surge: Bitcoin experienced a remarkable 20% surge in its price this week, triggering a wave of excitement among investors.
  • Volatility Soars: The surge led to an influx of buyers for short-dated options, driving Bitcoin’s volatility to its highest level since last year. This heightened volatility could result in rapid and significant price swings.
  • Leverage Resurgence: Leverage has made a comeback across various crypto sectors, including NFTs, mining, and DeFi.
  • Derivatives’ Open Interest: Bitcoin derivatives’ open interest has surged by 90% since October, indicating increased market activity and interest.

Crypto Market Cap Surpasses $2 Trillion

  • Market Cap Milestone: In a resounding comeback, the total crypto market cap surged past the $2 trillion mark, fueled by positive market sentiment and continuous inflows into spot Bitcoin ETFs.
  • Top 10 Global Assets: Bitcoin’s market cap surpassed $1 trillion, propelling it into the list of the top 10 largest assets globally.

Spot Bitcoin ETF Success and BlackRock’s Record Inflows

  • SEC Approval Impact: Seven weeks after SEC approval, spot Bitcoin ETFs now hold 344,000 BTC in assets under management, worth over $21 billion.
  • BlackRock’s Record Inflows: BlackRock’s Bitcoin ETF, IBIT, experienced a record-breaking $612 million inflow in a single day, reinforcing the success and growing acceptance of ETFs in the market.
  • Vanguard’s Potential Entry: 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, raising questions about its next move given its substantial $7 trillion under management.

Unrealized Gains and Global Reactions

  • MicroStrategy and El Salvador: Despite Bitcoin’s recent surge, MicroStrategy’s chairman, Michael Saylor, insists on holding onto the company’s holdings, and President Nayib Bukele of El Salvador defends the country’s Bitcoin strategy with unrealized profits exceeding $173 million.
  • Nigeria-Binance Controversy: Nigeria is reportedly seeking nearly $10 billion in fines from Binance, accusing the crypto giant of manipulating foreign exchange rates. However, a government representative denies the report’s accuracy, labeling the fine as possible.
  • Crypto’s Role in Nigeria’s Crisis: Nigeria, facing a currency devaluation crisis with the Naira losing 70% of its value, sees increased interest in crypto as an alternative.

Gemini’s Settlement and Trader’s Fat-Finger Error

  • Gemini’s Settlement: Gemini, owned by the Winklevoss twins, will return a minimum of $1.1 billion to customers in a settlement with the New York Department of Financial Services, facing a $37 million fine for “significant failures” during the November 2022 crypto crash.
  • Ordinals Trader’s Mistake: A Bitcoin Ordinals trader faced a costly fat-finger error, mistakenly thinking he paid $1300 for an NFT listed at $13,000. The incident serves as a cautionary tale, highlighting the need for vigilance among traders.
  • Generosity Amidst Embarrassment: The NFT’s seller, Dan Anderson, noticed the trader’s post and offered to buy back the NFT, demonstrating a surprising act of generosity within the crypto community.
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