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, 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.
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.
Binance boss Changpeng Zhao has become the most powerful cryptocurrency figure to fall in a two-year period chaotic even by the standards of the notoriously volatile industry.
Zhao stepped down as CEO of Binance — the largest crypto exchange in the world — after he and the company pleaded guilty on Tuesday to sweeping US money laundering violations and agreed to fines of more than $4 billion.
Here are three of the highest-profile crypto executives who have fallen foul of the law since last year:
Changpeng ‘CZ’ Zhao
Born in China in 1977, Zhao moved with his family to Canada in the 1980s and later got a degree in computer science from McGill University, according to his profile in the Bloomberg Billionaires Index.
Zhao Changpeng, chief executive officer of Binance, speaks during a Bloomberg Television interview in Tokyo, Japan, on Thursday, Jan. 11, 2018. The world’s biggest cryptocurrency exchange keeps getting bigger. Binance.com is adding “a couple of million” registered users every week, with 240,000 people signing up in just an hour on Wednesday, said Zhao. Photographer: Akio Kon/Bloomberg
He founded Binance in 2017 in Shanghai, and led the company’s explosive growth into the world’s biggest cryptocurrency exchange.
An outspoken celebrity in the crypto world with 8.7 million followers on X, Zhao became the richest known figure in the nascent industry. His net worth peaked at around $65 billion in 2022, according to a Forbes index.
With the prestige and wealth came increased scrutiny of Binance’s operations, as prominent crypto firms around the world began to buckle under a wave of criminal investigations.
The United States accused Zhao and Binance of multiple violations, including knowingly allowing transactions to militant groups such as the Islamic State and in barred jurisdictions such as North Korea and Iran.
On Tuesday, they pleaded guilty. The firm has agreed to total penalties of nearly $4.4 billion, while he will pay $50 million, according to court documents.
Zhao resigned as CEO of Binance and while he will reportedly retain his shares in the company, he has been banned from any involvement in its business. He is expected to face sentencing later.
Forbes listed his net worth as $10.2 billion as of Wednesday.
Sam Bankman-Fried
If Zhao was the richest and most powerful person in crypto, Sam Bankman-Fried was easily the most famous.
Born to Stanford University professors, Bankman-Fried graduated from MIT with a degree in physics.
In 2019, he founded FTX, which skyrocketed to become the world’s second-largest crypto exchange.
Along the way, Bankman-Fried built up his image as the unofficial ambassador for the cryptocurrency industry, with high-profile appearances in the media and even the US Congress.
At one point in 2022, he had a net worth of $24 billion, according to Forbes.
But he had been walking a dangerous path — his team used customers’ money for everything from buying posh real estate to covering risky moves by affiliate Alameda Research.
It all came crashing down when these moves were revealed in the media in November 2022. Within hours, rival CZ Zhao said Binance would sell all the FTX tokens it held.
It sparked a stunning collapse of FTX and Bankman-Fried’s empire, his fame turning to notoriety.
Arrested in the Bahamas in January, he was found guilty this month of what US prosecutors described as “one of the biggest financial frauds in American history”. He faces up to 110 years in prison.
During his trial, the 31-year-old admitted to making “mistakes” but denied trying to defraud anyone.
Do Kwon
South Korean entrepreneur Do Kwon co-founded Terraform Labs in 2018, developing the cryptocurrencies TerraUSD and Luna.
Do Kwon, co-founder and chief executive officer of Terraform Labs, poses in the company’s office in Seoul, South Korea, on Thursday, April 14, 2022. Kwon is counting on the oldest cryptocurrency as a backstop for his stablecoin, which some critics liken to a ginormous Ponzi scheme. Photographer: Woohae Cho/Bloomberg via Getty Images
The Stanford grad successfully marketed them as the next big thing in crypto, attracting billions in investments and global hype.
Media reports in South Korea described him as a “genius”.
But in May last year, the value of these currencies — marketed as “stablecoins” — plummeted, wiping out around $40 billion in investments and sending a shock wave through the rest of the industry.
It led to more than $500 billion in further losses on global crypto markets, industry data suggested.
Experts said Do Kwon — whose full name is Kwon Do-kyung — had marketed a glorified Ponzi scheme.
Brash and outspoken on social media, Do Kwon left South Korea before the collapse and spent months on the run.
He was arrested in Montenegro this year after being caught trying to catch a flight using fake Costa Rican travel documents.
He faces multiple criminal charges in the United States and South Korea.
Trigger Warning:The following content contains discussions of violence, crime, and death.
Argentinian cryptocurrency influencer Fernando Perez Algaba, who had been reported missing for more than a week, was tragically discovered deceased on Wednesday. According to a report by the New York Post, his remains were found inside a suitcase near a stream in Buenos Aires. The disturbing incident came to light when a group of children found the red suitcase containing body parts while playing by the stream on Sunday.
Upon being informed by the children’s parents, the authorities initiated an investigation. The suitcase contained Algaba’s legs and forearms, while one of his arms was found in the stream. Subsequently, on Wednesday, the police located the missing head and torso. The dismemberment appeared to have been skillfully performed, indicating the involvement of someone with expertise in such matters.
Autopsy results revealed that Algaba had suffered three gunshot wounds before his body was dismembered. The police were able to identify him through his fingerprints and distinctive tattoos on the body parts.
Fernando Perez Algaba was a self-made millionaire based in Barcelona, known for showcasing his opulent lifestyle to nearly one million Instagram followers. He accumulated his wealth through luxury vehicle rentals and cryptocurrency sales. Algaba had been in Argentina for a week before his disappearance and alleged murder.
The circumstances surrounding Algaba’s death led to the arrest of one individual, and the authorities are currently investigating the motive behind the crime. While they suspect that financial debts may have played a role in the tragedy, a comprehensive investigation is still underway.
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.
The Pakistani government announced on Wednesday that it will suspend cryptocurrency services provided over the internet in the country in order to prevent illicit digital currency transactions.
According to Geo, the State Bank of Pakistan (SBP) and the Ministry of Information Technology have already begun the process of prohibiting cryptocurrencies, complying with the directives.
During a briefing to the Senate Standing Committee on Finance, Dr Aisha Ghaus Pasha, the Minister of State for Finance and Revenue, emphasised that cryptocurrency will never be legalised in Pakistan.
She revealed that the Financial Action Task Force (FATF) has imposed restrictions on the matter, stating that the condition set by FATF is that cryptocurrency will not be legalised.
Supporting Pasha’s stance, Sohail Jawad, the Director of SBP, stated that crypto transactions carry high risks and will therefore never be granted permission in Pakistan. He explained that cryptocurrency is a virtual currency with over 16,000 types currently in existence. Additionally, he mentioned that the market, which was valued at $2.8 trillion, has now shrunk to $1.2 trillion.
Senator Saleem Mandviwalla from the Pakistan Peoples’ Party (PPP) expressed concerns over the billions of dollars invested in the market. In response, the SBP official reassured him by mentioning that the Federal Investigation Agency (FIA) and the Financial Monitoring Unit (FMU), a financial intelligence unit aiding Pakistan in combating terrorism financing and money laundering, are actively addressing these concerns.
Pakistan has witnessed a surge in cryptocurrency trading and mining, as evidenced by the growing interest in related social media videos and online exchange transactions.
Although the government had previously banned trading and mining of virtual currencies in April 2018, cryptocurrency mining continues to thrive in the country, despite the closure of several mining farms.
Most exchanges operate discreetly through undisclosed partners, evading regulatory oversight. Nevertheless, the government persists in its efforts to curtail crypto trading activities.
Elon Musk has replaced Twitter’s bird logo with a doge meme featuring Kabosu, the Shiba Inu that inspired the Doge meme. Both the loading screen and display a picture of Twitter’s homepage feature the new logo.
Musk announced the change on Twitter with a screenshot of a conversation with a user who suggested replacing the bird with a doge. Musk responded, “Haha that would sick.” It’s unclear whether this was an April Fools’ joke, but it caused a 10 per cent increase in the price of Dogecoin.
However, Dogecoin’s value is still below its peak in May 2021. Additionally, Musk is facing a $258 million racketeering lawsuit accusing him of promoting Dogecoin as part of a pyramid scheme.
In other news, Musk announced that legacy accounts on Twitter will lose their blue checkmarks starting April 1.
Many accounts have already lost their verification sign, but Musk claims that the process is delayed due to staff shortages.
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.
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.
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.
