Tag: Bitcoin

  • April was Bitcoin’s worst month since late 2022 as investors took profits

    April was Bitcoin’s worst month since late 2022 as investors took profits

    Bitcoin experienced a significant downturn for the third day in a row on Wednesday, capping off its worst monthly performance in April since late 2022.

    This downward trend comes as investors shifted their focus away from cryptocurrencies in anticipation of the Federal Reserve’s upcoming interest rate decision.

    The world’s most traded cryptocurrency fell nearly 16 per cent throughout April as investors cashed in their gains from a recent rally.

    Bitcoin had reached record highs, topping $70,000, but the recent slide has taken the price to $57,055, a 4.7 per cent drop and its lowest point since late February.

    Ether, the second-largest cryptocurrency by market cap, also saw a decline, falling 3.6 per cent to $2,857, its weakest level since February.

    The sharp downturn has pushed bitcoin into bear market territory, with its current price sitting 22 per cent below its March peak of $73,803.

    Despite this, Bitcoin has still achieved a 35 per cent increase so far in 2024 and has doubled its value compared to the same time last year.

    This surge in value was largely driven by significant investments in newly launched exchange-traded funds (ETFs) at the beginning of the year.

    According to Matteo Greco, a research analyst at Fineqia, the recent decline in bitcoin’s price is due to profit-taking by investors who entered the market during the downturns of 2022 and 2023.

    Additionally, ETF investors, who saw their shares appreciate significantly in early 2024, also contributed to the sell-off as they locked in profits.

    Looking at the broader economic landscape, the Federal Reserve is not expected to change interest rates later this week.

    However, a growing consensus among investors suggests that the central bank may refrain from cutting rates altogether in 2024.

    This uncertainty has cast a shadow over interest rate-sensitive assets, including cryptocurrencies, emerging market stocks, bonds, and even commodities. Investors are adjusting their portfolios accordingly.

    The 10 largest U.S. spot bitcoin ETFs have seen their biggest weekly outflow since their inception earlier this year, highlighting the impact of shifting investor sentiment on the cryptocurrency market.

    As the market reacts to both macroeconomic factors and investor behavior, the coming days will be crucial in determining whether this downtrend continues or stabilizes.

  • Bitcoin surges to new heights, breaking $70,000 barrier

    Bitcoin surges to new heights, breaking $70,000 barrier

    In a surge of volatile trading, Bitcoin soared to an all-time high of $70,000 on Friday, fueled by the ongoing frenzy in the crypto investment landscape.

    This marks a significant milestone for the leading cryptocurrency, driven by increased investor demand for new U.S. spot exchange-traded crypto products and optimistic expectations of a global decline in interest rates.

    The cryptocurrency reached an impressive $70,105 before experiencing a swift drop, currently settling at $68,317.72. The recent influx of billions of dollars into exchange-traded funds (ETFs) has provided substantial support.

    Furthermore, a positive market outlook is influenced by the upcoming upgrade to the Ethereum blockchain platform, which houses the second-largest cryptocurrency, Ether.

    Additionally, anticipation surrounds the bitcoin “halving” event scheduled for April, which is expected to slow down the rate of bitcoin minting.

    However, scepticism persists regarding the speculative nature of these digital assets. Despite reaching a record high earlier in the week, Bitcoin encountered a sharp reversal, plummeting more than 10 per cent and slipping below the $60,000 threshold.

    Antoni Trenchev, co-founder of the crypto lending platform Nexo, acknowledged the challenges of navigating historic highs, stating, “Volatility defines bitcoin bull markets, and 2024 will be littered with sudden and gut-wrenching 10 per cent–20 per cent plunges.”

    The approval of 11 spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission in late January marked a pivotal moment for the crypto industry.

    This comes after an 18-month-long crypto winter plagued by corporate bankruptcies and scandals.

    In a noteworthy shift, institutional investors, who were once cautious due to the unpredictable nature of crypto, are now committing long-term investments.

    Analysts believe that this institutional support could play a vital role in sustaining the current upward momentum.

    According to LSEG data, net flows into the ten largest U.S. spot bitcoin funds reached $2.2 billion in the week ending March 1, with over $2 billion of that directed towards BlackRock’s iShares Bitcoin Trust (IBIT.O).

  • Bitcoin’s price soars close to $69,000, then pulls back to $65,000

    Bitcoin’s price soars close to $69,000, then pulls back to $65,000

    Bitcoin, the leading cryptocurrency by market value, surged to a two-year peak, surpassing $68,600 on Tuesday and approaching its all-time high.

    The cryptocurrency has seen a notable 50 per cent surge this year, with a significant portion of the increase occurring in recent weeks, marked by inflows into US-listed bitcoin funds.

    During Asian trading hours on Tuesday, Bitcoin hovered around $68,500, reaching a session high of $68,828, just shy of the record peak of $68,999.99 set in November 2021.

    The approval of spot bitcoin exchange-traded funds in the United States earlier this year attracted new significant investors, reigniting enthusiasm reminiscent of the 2021 bull run.

    However, Bitcoin has now retreated to $65,000 as of 9:50 p.m. Kyle Rodda, senior markets analyst at Capital.com, described the current market conditions as “crypto mania 4.0,” suggesting that continued low bond and rate volatility could sustain the momentum, though acknowledging signs of irrational behaviour.

    In the week ending March 1, net flows into the ten largest US spot bitcoin funds totaled $2.17 billion, with over half directed towards BlackRock’s iShares Bitcoin Trust, according to LSEG data.

    Tony Sycamore, a market analyst at IG, expressed optimism about Bitcoin’s potential move towards $80,000 despite short-term overbuying.

    The cryptocurrency rally aligns with record-breaking performances in global stock indexes, including Japan’s Nikkei, the S&P 500, and the Nasdaq.

    Simultaneously, volatility measures in equities and foreign exchange markets are trending downward.

    Ether, Bitcoin’s smaller rival, also surged over 50 per cent for the year, reaching $3,649. Speculation about exchange-traded funds driving inflows has contributed to Ether’s momentum.

    A regulatory filing on Monday revealed that the US Securities and Exchange Commission has delayed its decision on BlackRock’s application for a spot ethereum exchange-traded fund.

    In a separate development, Tether announced that the number of dollar-pegged stablecoins it issued has surpassed $100 billion, providing stability in the cryptocurrency market.

  • Interbank closing: PKR continues winning streak, settles at Rs281.22

    Interbank closing: PKR continues winning streak, settles at Rs281.22

    The Pakistani rupee (PKR) extended its upward trend against the US dollar for the fifth consecutive session, gaining 0.02 per cent in the inter-bank market on Tuesday.

    The State Bank of Pakistan (SBP) reported that the rupee concluded at Rs281.22 after a rise of Re0.06. In the preceding session on Monday, the rupee had experienced a slight increase, settling at Rs281.28 against the US dollar.

    On a global scale, the US dollar took a pause in its rally on Tuesday, with traders expressing confidence in multiple Federal Reserve rate cuts this year.

    This optimism is based on the belief that the slowdown in US inflation is significant.

    Meanwhile, in the cryptocurrency realm, bitcoin maintained its position near the highest level since April 2022, driven by growing expectations of the imminent approval of spot bitcoin exchange-traded funds (ETF).

    These market movements were influenced, in part, by the New York Fed’s recent Survey of Consumer Expectations, revealing that US consumers’ short-term inflation expectations in December reached the lowest level in almost three years.

    A key reading on US inflation is scheduled later in the week, offering additional insights into the Federal Reserve’s potential room for interest rate adjustments this year.

    Futures currently indicate the pricing in of nearly 140 basis points worth of easing by the Fed in the coming year.

    Against a basket of currencies, the US dollar experienced a slight decline of 0.08 per cent, settling at 102.22, following a 1 per cent increase in the previous week.

  • Massive data breach: 2.2 million Pakistani citizens’ personal information for sale online

    Massive data breach: 2.2 million Pakistani citizens’ personal information for sale online

    According to a report from Geo News, the personal data of 2.2 million Pakistani citizens has been compromised and put up for sale online. This breach occurred when hackers gained unauthorised access to a private company-made database that is utilised by hundreds of restaurants. 

    The hackers have even gone so far as to display some citizens’ data as samples in their online sale advertisement. In their claim, the hackers asserted, “We have hacked the databases of over 250 restaurants,” and they listed numerous food outlets. 

    The compromised citizen data includes contact numbers and credit card details. The affected software is widely used by many restaurants across the country. Furthermore, details such as the number of transactions and the amounts paid by citizens are available for purchase online. 

    The hackers are demanding 2 Bitcoins in exchange for the compromised citizen data, which equates to approximately $54,000, considering that one Bitcoin is valued at $27,000 based on market sources. In Pakistani rupees, this amounts to over Rs15 million. 

    As of now, the Federal Investigation Agency’s (FBR) cybercrime circle has not received any complaints regarding this incident. 

    It is worth noting that the federal government recently issued a directive advising all information technology (IT) and financial institutions, including regulators, to avoid collaborating with, installing, or using Indian-origin artificial intelligence (AI) and information and communication technology (ICT) products.  

    This advisory was issued due to concerns that these products could pose a constant, concealed, and force multiplier threat to Pakistan’s critical information infrastructure (CII). 

    The government shared this cybersecurity advisory with federal and provincial ministries and sectoral regulators. The advisory highlighted that globally, AI products and services are widely employed by various industries, including the financial and banking sectors, to accelerate their growth. 

    The document also noted that the fintech sector in Pakistan, along with some banks, was engaged with Indian-origin companies that offered IT products, cybersecurity solutions, and AI solutions.  

    The use of Indian security products and solutions was considered a potential threat to Pakistan’s CII, particularly the banking sector, due to the possibility of backdoors or malware collecting logs, data traffic analysis, and personal identifiable information (PII).  

    Additionally, it pointed out the risk of direct Indian ingress into Pakistan’s CII through technical means and access control with passive monitoring capability. 

  • Bitcoin surges to 13-month high as US judge rules in favour of Ripple

    Bitcoin surges to 13-month high as US judge rules in favour of Ripple

    Bitcoin reached its highest price in almost 13 months this year on Friday, fueled by a significant legal triumph for the crypto industry. A US judge ruled that Ripple Labs did not violate federal securities law by offering its XRP token on public exchanges. Bitcoin initially surged to $31,818 before settling around $30,935 on Friday.

    The second-largest token, ether, experienced its most successful session since March on Thursday. Similarly, XRP, which the US judge declared legally tradable on public crypto exchanges, skyrocketed by 73 per cent on Thursday and maintained most of these gains on Friday.

    The favorable legal ruling and market performance have triggered optimism among industry experts. Matthew Dibb, the Chief Investment Officer at crypto asset manager Astronaut Capital, remarked that the regulatory landscape is evolving and recent developments indicate positive changes lie ahead.

    Justin d’Anethan, Head of Business Development in Asia at Keyrock, a digital assets market maker based in Hong Kong, believes that the court’s decision sets a potentially influential precedent, offering much-awaited regulatory clarity to Ripple stakeholders.

    In response to the ruling, major cryptocurrency exchanges such as Coinbase and Bitstamp resumed trading XRP on their platforms. Binance.US also announced the re-enablement of XRP trading on its exchange.

    The market reaction was particularly encouraging for Coinbase, which had been sued by the US Securities and Exchange Commission (SEC) for alleged securities law violations. Following the Ripple case ruling, Coinbase’s shares surged by almost 25 per cent on Thursday as investors hoped for a favorable outcome in their own legal battle.

    This landmark case represents the first victory for a cryptocurrency company in a lawsuit initiated by the SEC. Although the ruling pertains to this specific case, it has generated optimism among crypto investors, who believe that other cryptocurrencies may also avoid being classified as securities.

    However, the positive sentiment was somewhat tempered by reports from the Wall Street Journal indicating that Binance, the world’s largest cryptocurrency exchange, has undergone substantial layoffs in recent weeks. According to an insider, the ongoing layoff process could result in a workforce reduction of over a third for the exchange.

  • Bitcoin price surpasses Rs4.5 million for the first time in 2 months

    Bitcoin price surpasses Rs4.5 million for the first time in 2 months

    On Saturday, Bitcoin surpassed $20,000 (Rs4.5 million) for the first time in more than two months. The strongest and most popular cryptocurrency in the world gained $922 from its previous closing to appreciate 4.6 per cent to $20,853 at 1:00 GMT on Saturday.

    Since January 1’s low of $16,496 for the year, the cryptocurrency has increased by 26.4 per cent.

    On Saturday, the price of Ether, the digital currency linked to the Ethereum blockchain network, rose by $85.90 to $1,536.3.

    Both traditional and cryptocurrency investors were pleased with the report’s findings. But it also occurs at a moment when Washington has a revived interest in cryptocurrency.

    Legislators are on high alert after FTX’s fall in November. Sam Bankman-Fried, the founder and former CEO of FTX, was detained last month and charged with eight offenses, including wire fraud and violations of campaign financing laws.

    While many on Twitter are happy with Bitcoin’s recent gains, $20,000 is still 71 per cent below the cryptocurrency’s previous record high of just over $69,000.

  • Crypto heist: Hackers steal $100 million from Harmony blockchain bridge

    Crypto heist: Hackers steal $100 million from Harmony blockchain bridge

    A blockchain bridge titled Harmony, which helps in transferring cryptocurrency tokens between each other, recently disclosed that $100 million in digital currency was stolen on Thursday morning from its Horizon bridge.

    Harmony revealed that its Horizon Ethereum Bridge was a victim of a “malicious attack” in a blog post outlining the incident.

    Harmony said that its separate bridge used for bitcoin wasn’t affected by the hack and that its funds and assets are safe. They have notified other exchanges and stopped its bridge “Horizon” to prevent further transactions as the company investigates the heist. 

    In order to track down the hacker and recover the stolen money, the platform has started working with local law enforcement and forensic experts.

    The hack and ransacking of Horizon weren’t the first this year. In March, cybercriminals stole about $620 million worth of cryptocurrency from a network used to process in-game transactions for Axie Infinity, one of the world’s most popular NFT video games.

  • Bitcoin surrenders weekend gains, slides 5 per cent

    Bitcoin surrenders weekend gains, slides 5 per cent

    Cryptocurrencies continued their steady decline on May 16, surrendering the gains made over the weekend as regulators loomed.

    European authorities have reinforced their warnings about the vulnerabilities of cryptocurrencies. Bitcoin slumped 5 per cent to roughly $29,700 in Asian trade on Monday, falling alongside markets amid concerns about burgeoning inflation and borrowing costs.

    As the catastrophic collapse of TerraUSD, a so-called stablecoin, has roiled crypto markets already plunging amid widespread selling of risky assets, the world’s largest cryptocurrency has lost almost a fifth of its value so far this month.

    Read more: Pakistani rupee crashes to historic low of Rs194 against US dollar

    Stablecoins are vulnerable to investor runs, according to the US Federal Reserve, because they are underpinned by commodities that could depreciate or become worthless in adverse economic conditions.

  • ‘Stablecoin’ crashes, bitcoin set for a record losing run

    ‘Stablecoin’ crashes, bitcoin set for a record losing run

    Following the collapse of TerraUSD, a so-called stablecoin, resonated across markets, cryptocurrencies suffered significant losses on Friday, with bitcoin trapped below $30,000 and on track for a record losing streak.

    Concerns about high inflation and rising interest rates have prompted widespread dumping of hazardous investments, including crypto assets.

    However, sentiment is particularly shaky, as tokens that were intended to be tethered to the dollar have failed.

    Bitcoin, the most valuable cryptocurrency by market capitalization, attempted a recovery early in the Asian session, rising 2 per cent to $29,500, a recovery from a 16-month low of roughly $25,400 on Thursday.

    It is still trading well below week-ago levels of around $40,000 and is on track for a record sixth consecutive weekly loss unless weekend activity improves.

    “I don’t believe the worst is gone,” Scottie Siu, investment director at Axion Global Asset Management, a Hong Kong-based firm that manages a crypto index fund, said. “I believe there will be further decline in the days ahead”.

    “I believe what we need to see is a significant drop in open interest, so that speculators are forced out, and then the market will stabilise”.

    Read more: Pakistan’s cement exports fell by 82.15 per cent in April 2022

    This week, TerraUSD (USDT) lost its 1:1 peg to the dollar, as its method for maintaining stability, which relied on another virtual token, failed under selling pressure.