Former Binance CEO Changpeng Zhao, commonly known as “CZ,” is set to appear before a federal judge, over 160 days after he admitted guilt to a felony charge under a plea agreement with U.S. authorities.

On April 30, United States District Court for the Western District of Washington, under Judge Richard Jones, will conduct a hearing involving statements from both the prosecution and CZ’s defense team. This session ranks among the most closely watched legal events in the cryptocurrency industry following the conviction and sentencing of ex-FTX CEO Sam Bankman-Fried.

Although Zhao’s sentencing was previously postponed, it is scheduled to proceed by the end of the month according to the latest report.

Former Binance CEO Could Get Up To 10 Years In Federal Prison

In November 2023, Zhao admitted guilty to a single charge of failing to maintain an effective Anti-Money Laundering (AML) program at Binance, thereby breaching the Bank Secrecy Act. As part of the plea agreement, he stepped down from his role as CEO, and together with the cryptocurrency exchange, agreed to a $4.3 billion settlement to resolve civil regulatory enforcement actions in the United States, excluding any legal action by the Securities and Exchange Commission (SEC).

According to U.S. sentencing guidelines, Judge Jones has the authority to sentence Zhao to a maximum of 10 years in federal prison, although the guideline range for his offense is 12 to 18 months. In comparison, Bankman-Fried was sentenced to 25 years on March 28 under different circumstances, despite both individuals being prominent figures in the cryptocurrency sector. Observers have noted that Zhao’s cooperative stance and guilty plea might allow him to avoid prison time altogether.

Moe Vela, a former Director of Administration for then-Vice President Joe Biden, explained that while the charges in these cases differ, they are alike in demonstrating the U.S. Justice Department, SEC, and federal government’s commitment to not tolerating wrongful acts. Vela suggested that U.S. officials might be attempting to deter criminal activities within the cryptocurrency field, and speculated that Zhao might receive leniency from the judge due to his cooperation and acknowledgment of wrongdoing.

Terrorism Surrounding Hamas Could Affect Former Binance CEO Sentencing

Mark Bini, a former Assistant U.S. Attorney from the Eastern District of New York, informed that CZ’s legal issues appeared more regulatory in nature compared to the criminal case against Bankman-Fried. However, Bini noted that the recent Hamas attack on Israel could potentially sway the sentencing judge in CZ’s case.

Following the attack by Hamas, numerous reports have linked cryptocurrency to the financing of terrorist groups. These reports may be indirectly connected to the charges faced by the ex-Binance CEO, including his failure to establish an adequate anti-money laundering (AML) program, alongside the civil lawsuit against the exchange.

Bini pointed out that public perception and government stance might converge due to allegations against Binance for laundering funds linked to Hamas. This perspective could be used to demonstrate the severe implications of what might otherwise seem like a mere regulatory violation, possibly influencing the prosecution’s arguments for harsher penalties.

Bini also mentioned that the gravity of the facts could lead the judge to consider a more severe sentence for CZ. Since his guilty plea, Zhao has been largely allowed to travel within certain U.S. regions on a $175 million bond, although requests for him to visit family in the United Arab Emirates before his hearing have been consistently denied by the judge.

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Following reports that the protocol’s deployer created millions of new tokens, Grand Base’s token value plummeted nearly 100%, sparking fears of a potential rug pull.

The tokenization protocol of real-world assets, Grand Base (GB), which operates on Coinbase’s native layer-2 blockchain, incurred losses amounting to $1.7 million due to a compromise of a private key.

An admin of the protocol conveyed in a Telegram chat that an exploit occurred in their contracts at 03:01:27 AM +UTC on April 15, advising all community members to avoid the compromised contract as it was no longer secure.

An Excess Number Of Grand Base Tokens Were Minted Without Authorization

Blockchain analytics firm PeckShield reported that a leak of a private key led to the theft of $1.7 million in tokens from its liquidity pools. The stolen tokens were exchanged on-chain for Ether (ETH) and then transferred to an external address. In the aftermath of this security breach, the protocol’s native token plummeted by 99% in value within 24 hours.

An administrator from the Grand Base Telegram channel warned users that the token contract was no longer secure and advised against swapping or interacting with it. They assured users that updates on further actions would be provided promptly.

Further examination by blockchain analytics firm CertiK revealed that the hacker had accessed Grand Base deployer contracts, illegally minted an excessive number of GB tokens, and subsequently withdrew them.

Grand Base staff later stated that they had identified all wallet addresses associated with the hacker and were coordinating with centralized exchanges (CEXs) to potentially freeze any transferred funds, indicating ongoing efforts to mitigate the fallout from the hack.

User Comments On The Hectic Situation

In the Grand Base Telegram chat, a user expressed deep regret for those affected by the hack and advised against further investments, urging people not to deposit more money into the platform under any circumstances.

Another user pointed out potential security vulnerabilities within the contract, noting that despite the discrepancies, the total balance appeared unchanged, raising questions about whether these issues were an oversight by the developers or intentional.

Before the incident, the Grand Base protocol, which was introduced less than five months ago, had a limit of 50 million GB tokens. The protocol allowed participants to use collateral to mint real-world assets as ERC-20 tokens and provided opportunities to earn rewards through liquidity provision for these tokenized assets.

Grand Base Team Says That Losing Control Of The Developer Wallet Was The Main Point Of Attack

Analysts from the AI Web3 security firm Cyvers underscored the critical nature of the recent security breach. They pointed out that the attacker’s capacity to mint new tokens not only escalated the financial impact but also revealed significant security vulnerabilities.

The loss of access control by the compromised deployer’s wallet was particularly alarming, with Cyvers analysts stressing the need for stronger security measures and continuous monitoring to prevent such substantial future losses.

The breach was further highlighted by two major unauthorized transactions that were recorded from the compromised wallets, transferring 206 and 319 ETH to external addresses, respectively.

In reaction to this security issue, Grand Base communicated the breach via its Telegram channel, reassuring users of their proactive efforts to resolve the security issues. The team specifically noted that losing control of their developer wallet was a critical aspect of the security breach.

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Landesbank Baden-Württemberg (LBBW), the largest state-owned bank in Germany, has disclosed its intention to introduce crypto custody services later this year. The bank has partnered with Austrian-based Bitpanda to initiate these services, which will initially concentrate on Bitcoin and Ethereum, the two leading cryptocurrencies by market value.

The two companies have formed a strategic alliance that will equip LBBW with Investment-as-a-Service infrastructure for the storage and procurement of cryptocurrencies such as Bitcoin (BTC) and Ether (ETH).

The Bank Will Offer Crypto Custody To Corporate Clients While Ensuring Security

Landesbank Baden-Württemberg (LBBW), the largest state-backed Landesbank lender in Germany, has declared its plans to introduce cryptocurrency services alongside its traditional lending and commercial banking products. LBBW is set to launch its crypto custody service in partnership with Bitpanda by the second half of 2024. The bank’s leadership has observed an increasing interest in crypto assets and believes that these will become a permanent part of the financial landscape.

Dr. Jürgen Harengel, COO of the Corporate Bank at LBBW, expressed that there is growing demand from corporate clients for digital assets, and the bank is committed to integrating crypto assets as essential components of future business models. Through this partnership, the bank is proactively establishing the necessary technical and regulatory framework to effectively support the diverse cryptocurrency strategies of its corporate clients.

New partnership alert: Bitpanda x LBBW

Landesbank Baden-Württemberg, Germany's largest federal state bank will enhance their digital asset offering in partnership with Bitpanda!

Bitpanda Technology Solutions provides LBBW with an "Investment-as-a-Service" infrastructure in… pic.twitter.com/hIwNXp9Wp4

— Bitpanda (@Bitpanda_global) April 15, 2024

Furthermore, Bitpanda has specified that its Bitpanda Technology Solutions division will provide LBBW with an “Investment-as-a-Service” infrastructure. This will enable the bank to offer cryptocurrency solutions to its corporate customers. Stefanie Münz, a member of the LBBW Board of Directors, emphasized on Monday that by providing crypto-asset custody, LBBW aims to deliver significant added value to its corporate clients while adhering to the highest security standards.

LBBW Is No Stranger To The Blockchain Technology

LBBW has been leveraging distributed ledger technology (DLT) for an extended period. In 2017, the bank participated in a promissory note transaction, issuing a €100 million corporate Schuldschein for Daimler. Among its significant projects was its involvement in the Marco Polo trade finance platform, which is now discontinued.

More recently, LBBW has supported DekaBank’s SWIAT tokenization platform. Additionally, it was one of the early adopters of Deutsche Börse’s D7 digital securities platform, which, although initially centralized, operates on a blockchain basis.

Crypto Custody Services Are Now Promoting Internal Competition In Germany

Apart from LBBW, Bitpanda serves notable clients including the Austrian community bank Raiffeisenlandesbank NÖ-Wien and the German neobank N26. Additionally, Bayern Munich, the German football club, announced a multi-year partnership with Bitpanda, as reported by Finance Magnates. Bitpanda has become the club’s platinum partner and official crypto trading sponsor. The partnership was revealed at Bayern’s home stadium, the Allianz Arena, during a match against TSG Hoffenheim on January 12 this year.

Several major German banks have unveiled plans for cryptocurrency custody and trading. Deutsche Bank has formed a partnership with Taurus, while Commerzbank obtained a crypto custody license from BaFin towards the end of last year. Additionally, DZ Bank is developing a cryptocurrency solution for its network of 737 community banks (Raiffeisenbank).

However, the competition extends beyond traditional banks. Deutsche Börse has introduced its DBDX cryptocurrency trading platform. Its subsidiary, Crypto Finance, handles settlement and custody services. Furthermore, Börse Stuttgart has long provided retail cryptocurrency services and offers institutional custody solutions.

German Banks Are Now Structuring Themselves For The New Crypto Regulations In Europe

Several major banks in Germany have begun preparations for the implementation of the Markets in Crypto-Assets (MiCA) regulatory framework, which is set to become the inaugural comprehensive legal structure for the crypto industry in Europe by the end of December 2024.

With the enactment of MiCA, cryptocurrency exchanges will be officially recognized as legal entities. The MiCA legislation is nearing completion, with the second consultation package concerning reverse solicitation guidelines due to end on April 29. The outcomes of this consultation will have a substantial influence on the final application of MiCA in December.

It will specifically address how exchanges and other crypto-asset service providers (CASPs) from non-EU countries can offer services to EU citizens without a license and the appropriate methods for marketing these services in Europe. These results will play a crucial role in the effective deployment of MiCA.

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Vitalik Buterin, the co-founder of Ethereum, has officially supported RailGun, a DeFi protocol that aims to improve the anonymity of cryptocurrency transactions. He praised the protocol for its ability to safeguard user privacy while maintaining security, which subsequently led to a surge in RailGun’s token value.

Furthermore, Buterin has been involved in a series of transactions that have sparked curiosity. He utilized the Railgun privacy protocol to move 100 ETH, worth roughly $325,000, though the purpose of these transfers remains undisclosed.

Vitalik Buterin (vitalik.eth) transferred 100 ETH (approximately $325,000) to Railgun at 17:40 UTC+8 today. Railgun is a EVM privacy protocol that enables DeFi private transactions. Over the past six months, Vitalik Buterin has been interacting with the Railgun using small…

— Wu Blockchain (@WuBlockchain) April 15, 2024

Buterin Praised RailGun For Its Advanced Privacy Pool Technology

Buterin has highlighted the essential need for privacy in cryptocurrency transactions, particularly after it was revealed that he has used the privacy-centric tool RailGun to hide his transaction details.

Buterin praised RailGun for its advanced privacy pool technology, noting that privacy should be considered a standard expectation. This technology significantly bolsters security by complicating the infiltration process for malicious actors without compromising the privacy of legitimate users.

Following Buterin’s endorsement, RailGun, which is listed under the ticker RAIL, experienced a significant price increase, soaring by +250%. This rise reflects the broader positive trend in the cryptocurrency market, which has seen a 3% increase in its total market capitalization over the past 24 hours.

Source: TradingView

This isn’t the first instance of an Ethereum-based token experiencing a price surge following Vitalik Buterin’s endorsement of its protocol either on platform X or through a blog post. In January, when Buterin highlighted the Ethereum Name Service as a proponent of trustless, Merkle-proof-based solutions, the value of its native cryptocurrency, ENS, climbed by nearly 40% soon thereafter.

Buterin’s support arrives at an important moment as privacy tools face heightened scrutiny from regulators worldwide. Last week, a U.S. Treasury Deputy Secretary pointed out the potential for misuse of privacy-enhancing technologies by harmful entities. Consequently, major cryptocurrency exchanges like Binance and OKX have started to delist such assets, moving towards compliance with stricter regulatory standards.

What Makes RailGun So Interesting For Buterin?

Railgun’s security network provides a mechanism for users to execute fully private cryptocurrency transactions by concealing four essential pieces of identifying information: the identity of the sender, the recipient, the type of asset transferred, and the transaction amount.

The network ensures this privacy by using private balances, which are an anonymous collective of funds that seem to be the source of the transactions. These private balances create an anonymity set, implying that any transaction could ostensibly be conducted by any contributor to the fund pool, making it indistinguishable to external observers.

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The UK plans to roll out new legislation targeting crypto staking and stablecoins by July, as declared by Economic Secretary Bim Afolami at the Innovate Finance Global Summit in London. Afolami emphasized the government’s swift efforts to finalize and implement the regulatory framework.

He highlighted that the forthcoming legislation would, for the first time, bring a variety of crypto asset activities under regulation. These activities include operating cryptocurrency exchanges and managing the custody of customers’ assets, among others.

Afolami Intends To Put Forward Stablecoins Legislation “as soon as possible.”

The UK government’s announcement of nearly completed legislation follows its revised stablecoins regulations in October 2023. The regulations aim to reduce the risk of harm to consumers and address the conduct, prudential, and financial stability risks associated with stablecoins.

With an election anticipated later this year, the current Conservative government may encounter challenges in implementing its long-term financial regulatory plans for the cryptocurrency sector.

Presently, the Labour Party holds a significant lead over the Conservative Party, with polls from April 2024 indicating a 65% disapproval rating for Prime Minister Rishi Sunak. A staunch advocate for cryptocurrencies and a former analyst at Goldman Sachs, Sunak has been vocal about his ambitions to position the UK as a central hub for the cryptocurrency industry.

At a cryptocurrency event in February 2024, Afolami had previously indicated the government’s urgency in introducing stablecoins legislation, emphasizing the need to act swiftly.

The FCA Plans To Combat Market Abuse In The Cryptocurrency Sector

The UK government has quickly implemented several policies affecting the cryptocurrency industry, culminating in the passage of the Financial Services and Markets Bill (FMSB) in June 2023.

The UK’s Payment Service Regulator (PSR), an independent subsidiary of the Financial Conduct Authority (FCA), clarified that the act explicitly allows for the regulation of payment systems that handle stablecoins.

In March, the FCA announced its intention to tackle market abuse in the cryptocurrency sector by enhancing its market surveillance and developing sophisticated analytical tools.

𝗟𝗢𝗡𝗗𝗢𝗡 𝗜𝗦 𝗥𝗘𝗔𝗗𝗬

@BimAfolami, MP and Economic Secretary to HM Treasury outlines that legislation is being developed to regulate #stablecoins and #staking, with plans to finalize proposals by their summer recess ( July 24)

Upon… pic.twitter.com/GAkBLWAbn4

— Subjective Views (@subjectiveviews) April 15, 2024

This recent regulation on digital assets by the UK coincides with efforts by US lawmakers to enact similar legislation concerning stablecoins.

US Representatives Maxine Waters (D-CA) and Patrick McHenry (R-NC) are leading these efforts. They are considering attaching stablecoins regulations to a larger, mostly unrelated legislative bill to garner bipartisan support.

However, it remains uncertain whether this legislative strategy will succeed before the US presidential election in November.

FATF Shows That Under 30% Of The World’s Jurisdictions Are Regulating The Crypto Industry

In February, the U.K. treasury outlined new regulations for the cryptocurrency industry, proposing that digital asset companies be regulated in the same manner as traditional financial institutions. The government aims to regulate the burgeoning sector while positioning Great Britain as a major global center for cryptocurrency.

The treasury highlighted in its announcement that its stringent regulatory approach reduces significant risks and capitalizes on the benefits of crypto technologies. This strategy is designed to allow the emerging sector to prosper safely, thus stimulating job creation and investment.

Despite these efforts, a significant portion of the cryptocurrency sector remains largely unregulated. A recent Financial Action Task Force (FATF) report indicated that fewer than 30% of global jurisdictions have implemented regulations for the industry.

T. Raja Kumar, head of the FATF, expressed that virtual assets tend to migrate towards less regulated areas, which can be exploited by criminals and terrorists for regulatory arbitrage. He emphasized the critical need for a strong regulatory framework across all jurisdictions to prevent such misuse.

Furthermore, a report last month from the FBI’s Internet Crime Complaint Center (IC3) revealed that in 2023, over 43,000 complaints were filed by Americans regarding cryptocurrency scams, with financial losses from such frauds and scams amounting to $3.9 billion, marking a 53% increase from the previous year.

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The government of Norway has announced its intention to propose new laws governing the country’s data centers.

According to a local news report, Ministers of Digitalization Karianne Tung and Energy Terje Aasland stated that these measures are mainly aimed at reducing energy-consuming activities such as cryptocurrency mining, which they believe does not meet Norway’s environmental targets. The bill would oblige data centers to register with the local authorities and provide them with extensive operational data.

JUST IN: Norway becomes the first country in Europe to introduce regulations for data centers aimed at controlling which projects are permitted.

They state #Bitcoin mining “is an example of a type of business we do not want in Norway” pic.twitter.com/NjmiCdkhc1

— Bitcoin News (@BitcoinNewsCom) April 15, 2024

The ministers raised concerns about the environmental impact of unregulated industries, especially issues related to cryptocurrency mining. Minister Aasland also said that these activities are a significant source of greenhouse gas emissions and thus should not be conducted in the country to pursue sustainability objectives. Norway, being a country with a lot of renewable energy resources, made it a natural choice for these industries and, hence, this legislative response.

Registration and Disclosure Requirements

Under the new regulations, all data centers in Norway will have to register and supply full details on their operations, including details on ownership and management. This registration process aims to improve the transparency and government control of the data center industry. Minister Tung stressed that these regulations are aimed at eliminating projects that do not align with Norway’s infrastructure objectives.

The legislation is not only to regulate but also to steer what kind of data centers shall be beneficial to the country’s infrastructure. Minister Aasland indicated the government’s favoring of data centers that provide services for social infrastructure, whereby he was able to distinguish between utility-driven and purely profit-driven initiatives.

The Response to Crypto Mining

The Norwegian government’s stance on cryptocurrency mining has been clear, with both ministers Tung and Aasland indicating a firm opposition to the industry. Despite the economic opportunities presented by the relatively low cost of electricity in regions like Northern Norway, the environmental costs have raised significant concerns. Reports from local media indicate that certain Bitcoin mining operations in the region consume electricity at rates comparable to small municipalities.

This legislative action is expected to empower local authorities to make informed decisions about allowing or rejecting data center projects in their jurisdictions. By mandating detailed reporting from these centers, local policymakers will be better equipped to assess the potential benefits and drawbacks of proposed data center projects, ensuring alignment with regional and national objectives.

Norway’s approach to regulating data centers could serve as a model for other countries grappling with similar issues around technology, energy consumption, and environmental responsibility. The Norwegian government’s proactive measures reflect a commitment to maintaining control over the growth of digital infrastructure while fostering a sustainable and environmentally friendly approach.

The legislation is anticipated to reshape the landscape of data center operations in Norway, potentially discouraging the establishment of new cryptocurrency mining facilities that do not meet the latest regulatory standards. This shift not only affects the crypto mining sector but also sets a precedent for how Norway intends to integrate technological advancements with its robust environmental policies.

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Hong Kong has authorized the launch of several spot Bitcoin (BTC) and Ethereum (ETH) Exchange-Traded Funds (ETFs).

This decision makes Hong Kong one of the growing leaders in the crypto financial sector, which is part of the city’s general plan to position itself as a regional hub for virtual assets. The approvals, which included the ETFs from China Asset Management, Harvest Global Investments, and a partnership between Bosera Asset Management and HashKey Capital, were made public on Monday.

BREAKING: Hong Kong just approved the first batch of spot #Bitcoin ETFs. pic.twitter.com/TbjXPgZyH8

— Bitcoin Magazine (@BitcoinMagazine) April 15, 2024

These approvals were granted by the Hong Kong Securities and Futures Commission (SFC), which indicated a positive approach towards the integration of digital currencies. In contrast to its neighboring Chinese mainland, which has looked dimly on cryptocurrency operations, Hong Kong has embraced a friendly atmosphere for crypto enterprises, as confirmed by the crypto licensing regime that was launched in June 2023.

Collaborations to Enhance ETF Offerings

According to China Asset Management, its Hong Kong unit obtained the in-principal approval from the SFC to offer retail asset management services related to these spot crypto ETFs. The firm has partnered with OSL and BOCI International to launch the ETFs, with OSL acting as the lead trading and sub-custodian partner. This partnership is meant to use OSL’s strong infrastructure to provide the safety of trading and accurate asset management.

Similarly, Harvest Global Investments has partnered with OSL to roll out its two spot crypto ETFs after the SFC provided provisional approval for them. These ETFs are structured to resolve the issue of excessive margin requirements, making it easier for cryptocurrency market participants to invest.

Potential Market Forces and Investor Focus

The timing of the approval of these ETFs is crucial for the cryptocurrency markets. Traditionally, the launch of similar financial instruments has caused market activity to grow and price surges. For example, the introduction of spot BTC ETFs in the United States this year significantly affected Bitcoin’s further rise by 73,737 dollars in March. Now that Hong Kong has come to this game, market analysts are expecting a possible surge in BTC and ETH prices driven by fresh flows to these newly approved funds.

In addition, what makes the Bosera HashKey partnership unique is its intention to let investors purchase their ETF shares using Bitcoin and Ether directly, which can be a very attractive feature. This is critical for the Bitcoin halving event due to the typical revaluing of the Bitcoin based on the reduced influx of supply.

Hong Kong’s strategic moves to approve these ETFs not only enhance its portfolio of financial services but also reinforce its status as a global financial center open to innovation in digital asset management. The region’s distinct regulatory environment, compared to the stricter measures seen on the Chinese mainland, offers a favorable landscape for crypto enterprises and investors alike.

The recent regulatory approvals are part of Hong Kong’s broader initiative to attract crypto-related businesses. The licensing regime for crypto trading platforms, which began last year, has already granted licenses to two major platforms, HashKey and OSL. This sets a regulatory framework that supports safe and regulated growth in crypto trading activities.

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In a bid to tackle the rising congestion issues on the Solana network, a new update has been released on the mainnet beta. Since the problems with congestion and failed transactions started, there have been over 75% of failed or delayed transactions in the network.

Solana rolls out v1.17.31 to fix congestion problems, what changed?

In a significant development, Solana has released the v1.17.31 mainnet update to address the issues of congestion on the network. According to a post by Solana Status on X, the new release is recommended for general use by mainnet beta validators. Per the report, the new release contains improvements that will help to reduce the present congestion on the Solana network. Therefore, to stop more network congestion on Solana, the validators must update with the release.

Meanwhile, a post on Github highlights the changes that have been made on the network. According to the release, this is what has changed;

v1.17: Show staked vs non staked packets sent down/throttled

v1.17: quic: use smallvec to aggregate chunks, save 1 alloc per packet

v1.17: BankingStage Forwarding Filter

tighten the minimal streams per 100ms for staked node

v1.17: Treat super low staked as unstaked in streamer QOS

v1.17: default staked client in LocalCluster

Commenting on the latest update, Anatoly Yakovenko, the co-founder of Solana mentioned that it takes around 30 patches for a major release to be completed. Additionally, the v1.18.11 release of the Solana-focused devshop Anza was recently released on devnet. The Solana chain’s persistent congestion problems will be resolved with the update. Anza stated that the main causes of network congestion are a QUIC implementation and the Agave validator client’s actions. Following this, a subsequent release of v1.18 will be rolled out to continue improvements on the network as regards congestion.

Solana (SOL) price reaction

Following this development, the price of Solana (SOL) has been seen to react positively. According to data from CoinMarketCap, the price of SOL has surged by 6.92% in the last 24 hours reaching a price of $154.53. What is more, its market cap has also increased similarly to $69 billion. However, the trading volume of Solana over the last day has dropped by 36.2%.

Source: CoinMarketCap

In hindsight, SOL has dropped 15% in the last seven days and a notable 20% over the last month. Meanwhile, the open interest in Solana futures has increased by over 6% over the past four hours and 3% in just one. This indicates significant purchases by derivatives traders. The total open interest in SOL futures across exchanges increased to $2.14 billion, according to Coinglass statistics.

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Trending cryptocurrency Toncoin (TON) has made headlines today reaching a new all-time high with its recent surge and pushing it to the #8 position on the largest cryptocurrency by market cap list. The update has raised excitement across the crypto market as investors print in massive returns.

Toncoin (TON) surges by 12% to new ATH

Against the backdrop of the global crypto market volatility, Toncoin (TON) has defiled all odds as it recorded substantial gains in the last 24 hours. According to data from CoinMarketCap, The Open Network (TON) has grown by 12.42% over the last day to reach an all-time high of $7.18 on April 15. As a result, TON has pushed Dogecoin (DOGE) out of the way to become the 8th-largest cryptocurrency with a live market cap of $24.77 billion.

TON has maintained an impressive price movement in hindsight. Per CMC data, TON has spiked by 28.86% in the last seven days and has witnessed exponential growth of 84.37% over the last month. What is more, Toncoin’s trade volume has increased significantly during the previous week, rising by more than 300% every day on average.

Toncoin was initially launched in 2018 as Telegram Open Network, however, after a series of back and forth with the United States SEC, a group of new developers, namely NewTon, rebranded the project and called it The Open Network. Toncoin is the native token of the ecosystem and it is used for activities like staking within the Proof-of-stake-based mechanism.

With the new price rally, investors are keeping a close eye, checking for potential growth to the $10 zone.

Toncoin (TON) technical analysis

Meanwhile, the Toncoin price has been climbing in an ascending channel pattern on the technical chart, indicating that bulls have persisted in buying the dips. Over the weekend, the bears took center stage, pulling the price below the channel. Nevertheless, the forming of longtails on the candlestick signifies huge bull activities close to the support line.

The failure to sustain lower levels probably attracted buyers, who are now attempting to push the price in the direction of the resistance line at $7.50, a breach of which might lead to a further advance to $10.

Source: TradingView

The RSI is still in the positive zone and both moving averages are going higher, suggesting that buyers are in the lead right now. This bullish prediction, nonetheless, might be refuted if the TON/USDT pair takes a severe dip and closes below the support line. Under such circumstances, there may be a drop in price near the 50-day SMA ($4.28).

Source: TradingView

Therefore, the question of whether TON can ascend to the $10 mark soon remains on the balance and will be influenced by the pressure of the bulls and the positive sentiment surrounding the token and the general crypto market.

At the time of writing, TON is changing hands at $7.09 representing a 9.14% growth with a 24-hour trading volume of $661 million.

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An Ethereum whale has transferred a substantial amount of ETH tokens worth over $50 million from the Binance crypto exchange amid the global crypto market correction. This move has sparked speculations across the crypto sphere with members wondering the reason behind it.

The crypto market ended the previous week in the red zone with Bitcoin (BTC) trading around $67k. Other altcoins in the market like Solana (SOL), XRP, and Dogecoin (DOGE) fell drastically by 12.5%, 11.11%, and 13% respectively. However, the new week starting April 15 has shown a positive rebound as the majority of the tokens in the market are trading in the green zone.

Source: CoinMarketCap

In the center of this rebound, a significant transaction carrying ETH, the second-largest cryptocurrency by market cap was recorded consequently fueling the price growth by almost 3% at the time of writing.

Over $50 million worth of ETH tokens shifted from Binance

Less than an hour ago, Lookonchain, a blockchain data translator, reported a massive movement of ETH tokens from Binance, the largest exchange in the world by trade volume. According to the report, a whale shifted exactly 16,300 ETH worth $51.1 million. In addition, Lookonchain highlighted that the wallet is linked to Matrixport, a crypto-financial service platform that allows users to invest, trade, loan, and buy crypto assets.

Furthermore, it was revealed that this transaction is only one of many initiated by the same wallet since March. Per the report, the wallet has withdrawn a total of 67,286 ETH tokens which is worth approximately $228.33 million at an average price of $3,393.5 per token.

A wallet related to #Matrixport withdrew 16,300 $ETH ($51.1M) from #Binance again 20 mins ago.

This wallet has frequently withdrawn $ETH from exchanges since Mar 29, withdrawing a total of 67,286 $ETH ($228.33M) at an average price of $3,393.5.https://t.co/R43ImnYb5H pic.twitter.com/qmmzAxHzCV

— Lookonchain (@lookonchain) April 15, 2024

Other data from WhaleAlert, a blockchain large transaction tracker, shows a massive transfer of 10,749 ETH tokens from a wallet labeled “unknown” to the US-based cryptocurrency exchange, Coinbase. The total worth of the transaction equals $33,757,171 ($33.7 million). The purpose of these movements is still unknown, but one thing for sure is that the price of Ethereum has reacted positively.

Ethereum (ETH) price movement

According to data from CoinMarketCap, Ethereum began the week on a high note, surging by 4.66% in the last 24 hours to trade at $3,223. What is more, its market cap has also grown by over 3% to $386.9 billion within the time. However, activities surrounding ETH tokens as measured by the trade volume have reduced significantly in the last day. Per CMC data, ETH trading volume has dropped by 32.35% over the last day to $22.1 billion.

Meanwhile, reports from last week indicated that today, April 15, Hong Kong would approve the spot Ethereum ETF. However, on this issue, further formal confirmation is still needed. This might end up being one more thing that pushes the price of ETH up.

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The conflicts in the middle east took a turn for the worse over the weekend as Iran launched an attack against Israel. Of course there has been some turmoil in the region ever since the October 7th attack on Israel committed by Hamas. Howe er, these latest actions have been seen as a significant escalation and has many worried that this will drag into a larger conflict. There is worry that allied countries may be pulled into the current conflict if deescalation measures are not taken.

Given the fact that most financial markets are closed on the weekend it can be tough to get a gauge on how investors may react. Many traditional investors will look to futures markets to get a feel for whether or not the news will be absorbed well, or if selloffs should be expected. 

Crypto Market’s Initial Reaction Is Bearish

Of course, the cryptocurrency market operates 24/7 365, which means it too can be used to judge investors initial reactions. The crypto market’s initial reaction was a significant dip in prices almost immediately. Bitcoin (BTC) had been experiencing a month-long pullback that appeared to be ending. However, prices went south one more time, and at its low point on Saturday BTC dipped by as much as 10% in a 24 hour period. 

By no means is that a massive dip, especially in crypto standards, however it should worry traditional markets. The initial reaction seems to show that investors are very cautious and worried at the moment. It will be vital to keep an eye on “riskier” assets on Monday. Should we see a significant pullback in risk assets and tech stocks there may be cause for concern. 

Signs Of Conflict Can Be Seen In Financial Markets

Monday’s action will go a long way towards giving signs of whether or not this may have lasting effects on the market. Should commodities prices rise, that could be seen as a sign that inventors expect prolonged conflict and trouble in trade and markets. 

Geopolitical tensions, especially in regions prone to conflict like the Middle East, often trigger speculation in financial markets. Investors closely monitor such events, as they can have significant implications for various asset classes. In times of heightened geopolitical risk, investors tend to flock to safe-haven assets such as gold, government bonds, and the Japanese yen, seeking protection from uncertainty. There’s an argument to be made that recently investors have been using Bitcoin as a safe haven asset in times of crisis as well. Conversely, risk assets like stocks and high-yield currencies may experience selling pressure as investors adopt a more risk-averse stance.

Commodities, particularly oil, are also closely watched during geopolitical tensions, especially when they involve major oil-producing regions. Conflicts in the Middle East, for example, can disrupt oil supplies, leading to spikes in crude oil prices. Additionally, geopolitical tensions can impact supply chains and trade routes, affecting the prices of other commodities such as metals and agricultural products.

Financial markets often react swiftly to geopolitical developments, with sharp movements in asset prices reflecting investor sentiment. Signs of escalating tensions, such as military mobilizations, diplomatic breakdowns, or hostile rhetoric, can trigger market volatility even before any actual conflict occurs. Moreover, geopolitical risks can influence central bank policies, with some institutions opting for more dovish monetary stances to cushion their economies from potential shocks.

Monday’s price action will be critical in gauging investor’s worry and medium term outlook. 

Overall, monitoring financial markets can provide valuable insights into investor sentiment and expectations regarding geopolitical tensions. If crypto has given us any signs it is that we may be entering a pause of sorts. The crypto market now has a neutral short to medium term outlook. After months of bullish price action, expect a bit of a pause in action over the next few weeks, perhaps the next couple of months. 

 

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The Grayscale Bitcoin Trust (GBTC) has been experiencing a steady stream of capital outflows despite previous comments from Grayscale CEO Michael Sonnenshein suggesting a potential stabilization. 

Recent data shows that on a single day, April 12, GBTC saw more than $166 million and over 2,500 Bitcoins withdrawn from its holdings. The outflow situation is consistent with the trend observed from the beginning of the year, with total outflows of more than $16.2 billion since January, according to Farside Investors data.

With GBTC struggling with fund outflows, minimal inflows have been reported by some of the bitcoin exchange-traded funds (ETFs), pointing to generally less investor interest in these products. Just this week, GBTC recorded outflows of $767 million, which mirrors the general negative flow into Bitcoin ETFs, as per data from Farside Investors.

Inflows to the 9 new bitcoin ETFs, ex. GBTC, were just $572 million this week, the worst week to date. pic.twitter.com/pMzS5gH26I

— Joe Consorti (@JoeConsorti) April 13, 2024

Competition and Fee Structures

The competition from other players in the market, notably BlaBlackRock’sIT Bitcoin ETF, is one of the most significant challenges that GBTC needs to contend with. Despite outflow problems with GBTC, IBIT has witnessed its assets under management skyrocket beyond the $15 billion mark. This expansion is probably supported by the migration of investments from GBTC, where elevated fees may dissuade investors. GBTC has an annual management fee of 1.5%, which is much higher than the average of 0.30% that its competitors charge.

Though competitive pressure has been mounting, GraGrayscale’snagement has been hesitant to lower its fee structure. This trend is part of a larger market trend where initial enthusiasm for new financial products is replaced by concentration on a few products with relative fees and strong management.

Markets Dynamics and Prospects

The volatility of the cryptocurrency investing environment is demonstrated via the daily changes in outflows from GBTC. Records of the previous week indicated outflows of $17.5 million on April 10, down massively from that of $154.9 million in the day before. However, this variability highlights the unstable investor sentiment regarding Bitcoin ETFs at the moment.

GBTC itself underwent a major change at the beginning of the year and became an ETF in January 2023. The change came after a long-drawn legal tussle with the Securities and Exchange Commission, which was decided in favor of Grayscale by the court. A number of new Bitcoin ETFs are now part of the market, which makes it competitive.

GBTC, which started in 2015 and is now an ETF, is a big player in the cryptocurrency investment space. Nonetheless, the recent bankruptcy of the crypto lending company Genesis is another factor to consider. Genesis dumped around 36 million GBTC shares, getting 32,041 Bitcoin in the process. These kinds of actions affect the overall market and invinvestors’nfidence in GBTGBTC’sability and attractiveness.

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While the Bitcoin market expects the forthcoming halving event, the significant on-chain metric that can indicate changes in the cryptocurrency’s price trajectory is being focused on. The Mean Dollar Invested Age (MDIA) metric has started to play an important role in Bitcoin investment statistics.

The MDIA calculates the dollar age of dollars invested in Bitcoin, and this figure remains stationary within wallets. Growth in this metric means that investments are aging, and hence, periods of inactivity when coins are not traded are suffering. On the other hand, a reduction indicates that older coins are being transferred, which might mean increased trade and potential price increases.

Recent Market Trends and MDIA’s Role

The last weeks have seen the price of Bitcoin struggling to touch its earlier maximum with a sudden value drop witnessed on April 12, where it fell from $70,000 to below $67,000. Such a decrease is indicative of the general ambiguity in the cryptocurrency market, as even Bitcoin had earlier gone up to $73,737 in the middle of March. The MDIA metric stability in the last weeks has not helped in making any predictions, as it has neither gone up nor down, which cannot be considered to show signs of the market.

The upcoming Bitcoin halving, set to happen next week, will decrease the mining reward from 6.25 BTC to 3.125 BTC. Similar halvings have traditionally been positively linked to cryptocurrency because they suggest a reduction in the new supply. Tracking the MDIA as the halving approaches, investors and market analysts are keeping a close eye on this cryptocurrency in search of any movement that could indicate a new bull run.

According to Santiment reports, there is a correlation between the movement of MDIA and the performance of Bitcoin prices. In previous bull runs, a falling MDIA was quite common before price hikes, indicating a bullish market where long-time-held coins went into circulation once more.

With many traders waiting for the #crypto #bullrun to resume following a month of price chopping, one of the primary signals to watch is Mean Dollar Invested Age. This metric tracks the average age of investments in an asset that have sat in the same wallet.

Rising line =… pic.twitter.com/Cc1MbCTvNk

— Santiment (@santimentfeed) April 12, 2024

At the moment, the neutrality of this metric indicates the hesitation created in the minds of the investors; most probably, they are waiting for the post-halving market reaction to make the next step.

This metric is important to the firm because it has historically proven to be an accurate measure of the arrival of active trading periods. A renewed drop in the MDIA might signify that whales are shifting their positions to take advantage of or react to the halving. This action could revive market dynamics and help Bitcoin recover its price.

Outlook of the Market and Trading Activity

According to CoinMarketCap data, Bitcoin was trading at $67,402 as of writing, having declined by 5.17% over the last twenty-four hours at press time. This price movement highlights the market’s response to outside economic forces and internal events, including the halving.

Investors should closely watch the MDIA. A reduction would indicate a comeback of lively trading activity and a possible start of a bull run. Nevertheless, a horizontal movement of the metric might suggest that the market would be cautious and low-key for a while.

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Coinbase has formally requested a United States court to examine a central legal issue in its ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC). 

This request follows a recent denial by U.S. District Judge Katherine Failla to dismiss the SEC’s allegations against Coinbase, which accuses it of operating as an unregistered exchange, broker, and clearing agency. The legal question at the heart of Coinbase’s request concerns the necessity of post-sale obligations in defining an investment contract.

Coinbase argued in an April 12 filing with the U.S. District Court for the Southern District of New York that this legal question is devoid of factual disputes and thus ripe for immediate review. The exchange contends that the determination of this question could greatly influence the conduct of the lawsuit, potentially disposing of the SEC’s principal claims.

Legal Arguments Presented

On April 12, Paul Grewal, Coinbase’s chief legal officer, posted on X about the “controlling question” in the case. He claimed that the latter depends on whether an investment contract pursuant to securities law calls for some form of contractual obligation post-sale.

Today @Coinbase filed a brief asking the Court’s permission to seek an interlocutory appeal in our @SECGov case on this controlling question: whether an “investment contract” requires something contractual – we think it does, the SEC disagrees. 1/5 https://t.co/M5HgMQxCLF

— paulgrewal.eth (@iampaulgrewal) April 13, 2024

According to Coinbase’s argument, an investment contract cannot exist without post-sale duties, which is in contrast to the SEC’s point of view that such duties are unnecessary.

Coinbase’s request for an interlocutory appeal seeks to resolve this issue quickly, highlighting its immediacy in view of its broader significance for the digital asset sector. The company argues that speed is important not only for Coinbase but for the entire U.S. digital asset sector, which suffers from regulatory unpredictability.

New Developments and Industry Situation

This judicial demand comes soon after a big legal win for Coinbase. On April 6, a civil lawsuit in which Coinbase was sued was ruled on by the United States Court of Appeals for the Second Circuit, and the decision was that secondary sales of cryptocurrencies on its platform were not a violation of the Securities Exchange Act. This ruling is especially important since it deals with similar legal matters of the character of digital assets and securities law.

Furthermore, Grewal pointed out that Coinbase’s appeal request was somewhat proactive, being filed a mere 17 days after the motion to dismiss was denied. This quick reaction indicates the strategic value that Coinbase gives to prompt resolution of these legal issues.

The legal battle between the SEC and Coinbase is closely monitored by the cryptocurrency industry, which is experiencing a complex and changing regulatory environment. This case will have an important and defining effect on the legal precedents concerning the classification of digital assets and the regulatory requirements of cryptocurrency exchanges in the United States.

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The global crypto market has experienced a sharp crash today April 13 with the majority of the tokens trading in the red zone. A look at the broad market looks like a bloodbath. Investors were already optimistic about the market recovery 24 hours ago when Bitcoin traded above $70k, but has now taken a nose dive.

This development has created tension among participants as investors hurriedly sell off their holdings across several crypto exchanges leaving members of the community with speculations about the cause of the fast decline. Consequently, the global crypto market cap has dropped by a significant 7% to $2.45 trillion in the last 24 hours. However, the total trading volume has witnessed an upsurge of 77% to $140.25 billion.

The confidence of investors has dropped drastically as seen in the crypto fear & greed index, a stat used to measure the sentiment of the crypto market. According to Alternative data, the metric now points to 72, representing a 6-point drop from yesterday’s 79. A slide from ‘extreme greed,’ to ‘greed.’

Source: Alternative The global crypto market ends the week in the red

According to CoinMarketCap data, Bitcoin, the most popular cryptocurrency in the world has lost 4.7% of its value over the last day, now trading at $67,380. Additionally, its market cap has slid by almost 5% within the time to $1.32 trillion. The trading volume of BTC has witnessed a spike to $48.2 billion, signifying a 61.4% increase over the last day.

The price of Ethereum (ETH) has also suffered greater loss per data from the aforementioned tracker. In the last 24 hours, ETH has declined by 7.3% to trade at $3,259. What is more, its market cap has dropped by 8% to $391 billion. However, the activities involving ETH as measured in its trading volume have surged by 88% to $25.2 billion.

Other altcoins on the top ten list like Solana (SOL), XRP, and Dogecoin (DOGE) have lost 12.5%, 11.11%, and 13.13% of their values respectively. At the time of writing, they are changing hands at $151, $0.5, and $0.17 respectively.

Trending tokens like Ethena (ENA) and Dogwifhat (WIF) are not left out of the catastrophe. CoinMarketCap data shows that Ethena (ENA) is now trading at $1.30 which signifies a notable 10% decline in the last day. Similarly, memecoin Dogwifhat has dropped by a massive 21.86% within the observed time to trade at $2.67.

With these price updates, investors are wondering why the market took a sharp U-turn. Let us take a look.

Why did the market fall today?

According to observations, increased economic uncertainty and geopolitical concerns contributed to the market’s collapse. So, cryptocurrencies joined the fall without any delay as traditional markets trembled. In response to fresh inflation statistics showing a third consecutive month of acceleration, U.S. stock markets saw a decline at the same time as this market collapse. Any lingering hope for immediate Federal Reserve interest rate cuts has been dashed by this hotter-than-expected Consumer Price Index (CPI) data, casting doubt on the notion that inflation was almost under control.

Meanwhile, as the crypto market eagerly waits for the next Bitcoin halving which is scheduled to take place between April 19th and April 20th, the hopes of a rebound continue to loom. Experts predict that the price of Bitcoin will shoot above $80,000 following the halving event. Some investors see this as an opportunity to buy cryptocurrencies at discounted prices, while others lose confidence and leave their positions.

Ultimately, the crypto market collapse today was caused by major economic uncertainties, a shift in investors’ confidence, and a pre-market collapse ahead of the coming Bitcoin halving event.

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On Friday (April 12), Bitcoin (BTC) and other cryptocurrencies experienced a sharp decline as negative sentiment from traditional markets, heightened by increased geopolitical tensions, spilled into the digital asset space.

During a rapid sell-off in the U.S. trading session, Bitcoin dropped below $66,000, having neared the $71,000 mark just a few hours earlier. By the time of reporting, Bitcoin had recovered slightly to $66,700, representing a drop of over 5% in the last 24 hours.

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, saw a decrease of up to 12% to $3,100, although a subsequent recovery reduced the loss to 8%.

Smaller Cryptos Followed Bitcoin And Suffered Losses Of 15-20%

During this volatile market episode, smaller cryptocurrencies were impacted by even steeper declines. The CoinDesk 20 Index, which tracks major digital assets, fell by nearly 10%. Notably, Cardano’s ADA, Avalanche’s AVAX, Bitcoin Cash (BCH), Filecoin (FIL), and Aptos (APT) experienced sharp drops ranging from 15-20%.

This downturn led to the most significant leverage liquidation event in a month, with approximately $850 million worth of leveraged derivatives positions across all cryptocurrencies being wiped out, according to CoinGlass data. Of these, $770 million were long positions that had anticipated price increases but were abruptly liquidated due to the sudden market drop.

The market downturn coincided with a decline in U.S. stock markets, driven by escalating concerns of an expanding conflict in the Middle East following warnings from U.S. officials that Iran might be preparing a significant assault on Israel.

Risky Scenario Made Treasury Bonds And The US Dollar Surge

As traders sought out protective investments, Treasury bonds and the U.S. dollar index (DXY) experienced a significant increase, while major U.S. stock indices, including the S&P 500 and Nasdaq 100, declined by 1.7% shortly before the market closed. Gold, traditionally viewed as a safe-haven asset, reached a new record high above $2,400 before reducing its gains, and oil prices edged up by 1%.

The digital asset investment firm Ryze Labs, previously known as Sino Global Capital, indicated in a commentary released on Friday that it expects some “short-term market softness” for cryptocurrencies during the impending tax season. Despite this near-term caution, Ryze Labs remains optimistic about the long-term prospects, projecting that a slowdown in quantitative tightening and possible adjustments in monetary policy to support U.S. government debt rollovers will bring some relief to the asset class.

According To Most Halving Predictions, Bitcoin Will Most Likely Bounce Back To The $70K Mark

Despite all action, there is no definitive reason for Bitcoin’s downturn today, but it appears to be a normal market correction, given that trading volumes have increased by 15% in the last day. It is expected that the cryptocurrency may rebound within the next day. However, the upcoming Bitcoin halving is likely to stabilize its price, preventing significant declines unless an exceptionally major event occurs.

Predictions related to the Bitcoin halving suggest a swift recovery, potentially pushing its value above $70,000 soon. The recent decline might simply represent a brief lull before more dramatic market activity. It is anticipated that Bitcoin will reach new record highs this month following the halving, alleviating current concerns about its stability.

This event is expected to influence not only the cryptocurrency market but also the market for precious metals. As Bitcoin gains popularity, the price of gold could decrease as investors increasingly view Bitcoin as a superior investment option. This makes the upcoming halving event particularly important in shaping alternatives to the US dollar.

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During the first quarter of 2024, the crypto bull market triggered a significant rise in the demand for sophisticated cryptocurrency products, as indicated by data from multiple exchanges.

According to Bitget’s Q1 2024 Report, there was a dramatic 100% increase in both spot and futures trading volumes, reaching $1.4 trillion and $160 billion respectively.

This growth marks a substantial escalation compared to the previous year, where futures trading volume was $658 billion and spot trading volume stood at $59 billion during the first quarter of 2023.

Crypto Bull Market Made Bitget Add 186 New Tokens To Its Exchange

During the first quarter, Bitget expanded its user base to over 25 million through its web3 wallet and trading platform.

The Bitget report highlighted a strong market recovery in February, with Bitcoin reaching new highs. The report also noted increased interest in Solana and significant developments in the artificial intelligence sector, illustrating the crypto bull market activity.

In Q1 2024, Bitget added 186 new tokens to its exchange. Notable among these were Dogwifhat (WIF), a Solana-based meme coin, and Altayler (ALT), a rollup utility token that saw its value surge by over 1,000% following its listing.

However, the exchange’s own token, BGB, has achieved a market capitalization of $2.6 billion.

Research indicated that among the top 12 derivatives exchanges, Binance dominated with a 47.0% market share of total volumes in March. OKX was second with a 21.8% share, and Bitget held a 12.8% share of the market.

How The Crypto Bull Market Is Affecting The CEXs

CCData has reported a surge in open interest for derivatives and futures contracts, highlighting Binance at 37.7%, Bitget at 34.7%, and OKX at 10.4%.

Furthermore, CCData observed that the market share for derivatives increased by 2.5% in March, marking the highest rise among centralized exchanges (CEX).

Meanwhile, Bitget’s native BGB token has been trading at $1.34, having increased by 5.51% over the last 24 hours. Since the start of 2024, the token has experienced a dramatic rise of 434%, significantly outperforming Bitcoin and other cryptocurrencies on centralized exchanges.

Bitget’s Future Plans And Expansions

Bitget Wallet has announced the launch of its own ecosystem token, BWB, complemented by an innovative BWB Points airdrop event. The token has a capped supply of 1 billion, with a significant 5% reserved for community airdrops. This initiative marks an effort by Bitget to activate its user community and promote greater involvement. The introduction of BWB also translates into an important shift towards enhancing user empowerment, ecosystem growth, and community-led governance.

Additionally, Bitget Wallet has introduced a new ‘Smart Money’ feature that leverages sophisticated AI technology to analyze on-chain data and monitor high-performing Ethereum addresses. This feature aims to refine trading strategies by providing real-time insights. Alongside this, Bitget has rolled out GetScribe, a cutting-edge full-stack management tool designed for omnichain inscriptions. Supporting more than 19 blockchains, GetScribe offers functionalities like batch inscriptions, a market leaderboard, and analytical tools.

Further updates from Bitget Wallet include the integration of ARC-20 inscription support and the Bitcoin Lightning Network, which improve compatibility with the Bitcoin ecosystem and expand inscription capabilities. These strategic updates are intended to ease user engagement with new tokens and inscriptions while lowering the barriers to entry.

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Fraud victims of an investment scheme have urged China’s Ministry of Foreign Affairs to engage in discussions with the UK government to reclaim 61,000 Bitcoin, which were confiscated during a money laundering probe and valued at $4.3 billion at the time of reporting.

These Bitcoins originated from a $6.2 billion wealth management scam that occurred from 2014 to 2017, orchestrated by the Chinese company Tianjin Lantian Gerui Electronic Technology, defrauding over 128,000 individuals.

The Masterminds Behind The Scheme Involving The Fraud Victims

The UK government was alerted to suspicious activities when former restaurant employee Jian Wen tried to buy a $30 million property using Bitcoin, but the deal fell through because Wen could not account for the origins of the funds.

This led to an investigation that resulted in a raid on a property leased by Wen, who was acting as a nominal figurehead, and her employer Zhimin Qian, who was believed to be the orchestrator behind the scheme. During the raid, authorities confiscated 61,000 Bitcoins, valued at $1.7 billion at that time.

Faced with the incriminating evidence, Wen initially insisted the Bitcoins were mined. Later, she altered her explanation, claiming the Bitcoins were a gift from Qian, who escaped abroad following the raid.

Jian Wen was eventually tried for aiding Qian in laundering the cryptocurrency into cash, jewelry, and real estate. Despite her denials, Southwark Crown Court found her guilty on three counts of money laundering on March 20th.

Fraud Victims Now Want It All Back

Following the conviction of the fraud perpetrators, a representative group of the fraud victims is making efforts to recover the Bitcoin, now valued at $4.3 billion, that was bought with their funds.

This group has formally approached China’s Ministry of Foreign Affairs through a letter, pressing for diplomatic talks with the UK to retrieve the substantial amount of Bitcoin that was confiscated. They have also reached out to China’s Ministry of Public Security, supported by nearly 2,500 victim signatures, to present their case to both Chinese ministries.

Following a five-year operation, Met detectives secured justice as part of the largest Bitcoin seizure in UK history.

Read press release here: https://t.co/ahHKDUbJH5 pic.twitter.com/bhwcdul2o3

— Metropolitan Police (@metpoliceuk) March 22, 2024

In their letter, the fraud victims advocate for a cooperative effort between the Chinese government and UK judicial authorities to present proof affirming their rightful ownership of the Bitcoin. They expressed their clear refusal to accept any scenario where the Bitcoin remains in UK custody without being returned to them.

As of now, the UK government has not responded regarding its plans for the seized Bitcoin, and the individual named Qian remains free.

Should the UK authorities conclude that no other claims to the Bitcoin are valid, the proceeds are typically allocated between the police and the Home Office.

Compensations Were Distributed To A Few Sufferers

Despite enduring severe financial hardships that led to family disruptions, debts, and inability to afford medical care, the fraud victims have received some relief.

Four victims disclosed that since last May, those registered with Chinese police have obtained two compensations from a task force led by authorities in Tianjin, recovering 8% and 5% of their invested funds from assets seized from Lantian Gerui and its ex-employees.

Moreover, the Industrial and Commercial Bank of China, the nation’s leading bank, has pledged support in facilitating the return process and reported that 207,000 individuals had invested in the scam.

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Bitcoin is approaching its fourth mining reward halving in just eight days, an event that automatically cuts the rate of new supply expansion by 50%. This event, which occurs every four years, has traditionally signaled the start of extended bull markets.

However, before this critical milestone, Bitcoin Cash (BCH), a derivative of Bitcoin (BTC), is signaling caution, urging traders to temper their expectations for an immediate price surge following the halving.

Perpetual Futures Contracts Tied To Bitcoin Cash Has Plummeted By 70%

The surge in Bitcoin Cash, a cryptocurrency born in 2017 from a hard fork of the original Bitcoin blockchain, lost momentum after reaching a peak of over $715, coinciding with its parent blockchain reducing its per block coin emission to 3.125 BCH on April 4. Following this event, BCH prices have fallen by 15% to $604, according to CoinDesk.

The notional open interest, or the total dollar value of active perpetual futures contracts tied to Bitcoin Cash, has plummeted by 70% to $376 million within a week, as reported by CoinGecko. Additionally, at the start of this week, the annualized perpetual funding rates on major exchanges shifted to negative, reflecting a reduction in bullish positions. A negative funding rate suggests that perpetuals are trading below the spot price of the underlying asset.

Source: CoinGecko

Algorithmic trading firm Wintermute has observed that Bitcoin Cash is often used as a stand-in for BTC in anticipation of Bitcoin’s upcoming halving, which could lead to selling pressure on the leading cryptocurrency after April 20. Wintermute noted in a newsletter that there has been brisk trading in Bitcoin Cash as a speculative proxy for Bitcoin’s halving, highlighting an intriguing trend in funding rates with perpetuals trading below spot.

Multiple analysts have cautioned that BTC may have already factored in the expected slowdown in supply growth and might experience a drop in a typical “sell the news” scenario after the halving. JPMorgan, the investment banking giant, predicts a sell-off to $42,000 once the excitement over the halving wanes.

Post-Halving Sales By Miner Could Overpower Market Bulls

Bitcoin is currently trading at $70,700, marking a 67% increase since the beginning of the year, by the time of writing. The cryptocurrency recently exceeded its 2021 high, setting a new record above $73,000 well before the anticipated halving event. Historically, Bitcoin has reached new highs several months following a halving.

10X Research has indicated that post-halving sales by miners could pose challenges for market bulls attempting to drive prices higher in the upcoming summer. Markus Thielen, founder of 10X Research, stated that miners are expected to sell approximately $5 billion worth of Bitcoin following the halving. This expected sell-off could extend for four to six months, potentially leading Bitcoin’s price to stabilize or move sideways as it has in similar past scenarios.

Bitcoin miners are responsible for solving complex mathematical problems to verify transactions and add new blocks to the blockchain, earning BTC as rewards. The upcoming halving will slash these rewards by half, reducing the incentive per block.

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This week, the security markets are looking at the impact that a large Bitcoin options expiry could have with $1.5 billion in contracts to be settled.

With the expiry date set for April 12, market participants are evaluating the possible effect that the event might have on the price of Bitcoin, which is currently above its weekly resistance level of $69,000. The “max pain point” at $69,000 is the level at which most options would expire unfun, and it is a very important point for traders.

Pseudonymous trader Greeks highlighted on X that with a put-to-call ratio of 0.62, there’s a skew towards calls, indicating that many traders might have bet on prices higher than $69,000. While the max pain point provides an insight into trader positioning, it does not necessarily dictate the future movement of Bitcoin’s market price.

Despite the near halving of Bitcoin and a significant increase in BTC volatility this week, the downward trend in IV across all major terms is very clear, with BTC Dvol falling to 69% and ETH Dvol falling to 71%.Margin released from quarterly delivery is gradually turning into… pic.twitter.com/ju40gdSZDl

— Greeks.live (@GreeksLive) April 11, 2024

Market Dynamics and Bitcoin Stability

Despite the expiration of the nearing options, experts like Hao Yang from the Bybit exchange suggest that the actual impact on Bitcoin’s price might be limited. According to Yang, the size of the options market, though substantial, still represents only a fraction of the broader crypto derivatives market, which may mitigate any significant volatility. 

Yang explained, 

“The max pain point refers to an option strategy outcome and not to the direct market dynamics.” 

According to CoinMarketCap data, Bitcoin was trading at $70,441 at press time, maintaining a steady position above the speculated max pain threshold. The stability comes despite the expiration of impending options, suggesting that external market factors and trader sentiment are also at play, maintaining Bitcoin’s price above critical levels.

BTC/USD 1-day price chart (Source: CoinMarketCap)

External Economic Factors

However, the options expiry is a very important indicator, and other major economic indicators are influencing the price dynamics of Bitcoin. The latest U.S. Consumer Price Index (CPI) data showed a 3.5% y/y raise, beating forecasts and pointing to the intensification of inflationary pressures. The above economic conditions usually cause more interest in alternative assets, with Bitcoin being considered by some as an inflation hedge.

Furthermore, the market’s response to macroeconomic changes was very clear earlier in the week, when the price of bitcoin went below $70,000 for a minute and then recovered very quickly as many investors took advantage of the lower prices. Andrey Stoychev of Nexo pointed out that although the options expiry is important, 

“market sentiment and macroeconomic factors such as inflation are more determinative in driving the price of Bitcoin.”

ETFs and the Market of Bitcoin

The upcoming Bitcoin halving has had a noticeable effect on investment flows, mostly in exchange-traded funds (ETFs). The decelerating speed of ETF inflows as the halving is near shows that investors are rather cautious. Per Dune analytics data, the previous week saw spot Bitcoin ETFs in the United States receive $220 million in net inflows, in sharp contrast to previous weeks when the inflows were significantly higher.

Moreover, this pattern reflects the overall mood of the crypto markets as investors navigate various economic indicators and market situations. The aggregate on-chain holdings of Bitcoin ETFs are now at 839,000 BTC, which is equal to 4.26% of the total supply, showing the considerable impact these funds make on market dynamics.

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