Bitcoin made a remarkable move, surging to $44,000 following the Wall Street opening on December 8, as the latest United States employment data quashed market speculations of imminent interest rate cuts.
The developments were closely monitored using data from Cointelegraph Markets Pro and TradingView, as the crypto market reacted to fresh signals of inflation in the US economy.
The official release from the US Bureau of Labor Statistics showed that nonfarm payrolls exceeded expectations, with 199,000 jobs added compared to the anticipated 190,000.
Additionally, the unemployment rate was lower than forecast, coming in at 3.7% instead of the predicted 3.9%.
These figures suggested that the full impact of the Federal Reserve’s monetary tightening had yet to materialize, leading to a nervous response from the markets.
Before the release of the November jobs report, there was a 60% likelihood of rate cuts commencing in March 2024.
However, after the latest data, the odds of rate cuts starting in January 2024 plummeted from 16% to just 6%.
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Notably, data from CME Group’s FedWatch Tool indicated that the probability of any changes to the interest rate at the upcoming Federal Reserve meeting was almost zero.
The US Dollar Index (DXY) experienced significant volatility in response to the data, briefly reaching its highest levels since November 20 before retracting gains and trading at 103.8 at the time of reporting.
Interestingly, while gold prices dipped by 0.8%, Bitcoin managed to hold its ground despite reduced expectations of imminent interest rate cuts.
The largest cryptocurrency remained within a multi-day trading range as traders monitored for signs of a continuation in the current trend.
Prominent analyst Matthew Hyland commented on the situation, stating, “Bitcoin still consolidating in an uptrend and holding strong after the recent move,” with clear support seen around the $43,000 level.
Another trader and analyst, Daan Crypto Trades, pointed out significant liquidity zones surrounding the current Bitcoin price, particularly at $42,900 and $43,800.
Furthermore, the crypto market’s attention remained focused on altcoins versus Bitcoin, with Ether (ETH) and Solana (SOL) taking the lead overnight.
There was renewed anticipation of a potential “alt season” making a comeback, with Michaël van de Poppe, the founder and CEO of MN Trading, highlighting that “Bitcoin still consolidating around $43K, while Ethereum is gaining more momentum.”
Babylon Chain, a groundbreaking protocol focused on Bitcoin staking, has secured $18 million in Series A funding, with Polychain Capital and Hack VC spearheading the investment round.
This development, as revealed in an announcement on December 7th, is set to propel Babylon’s Bitcoin Staking protocol forward, effectively connecting the decentralized finance (DeFi) landscape with the Bitcoin blockchain.
The central aim of Babylon Chain’s Bitcoin Staking protocol is to facilitate proof-of-stake (PoS) networks in staking BTC, thereby injecting liquidity and enhanced security into emerging blockchain ecosystems.
In the context of blockchain, PoS chains hinge on participants who validate transactions.
Validators, in order to create new blocks, are required to stake the native coin of the chain.
The overall security and reliability of a PoS chain are heavily contingent on the volume of coins staked.
However, Bitcoin deploys an alternative mechanism, known as proof-of-work (PoW), in which miners solve intricate mathematical problems to validate transactions.
Babylon’s vision is to bridge these two worlds seamlessly.
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The startup unveiled its Bitcoin staking minimum viable product back in October, asserting its ability to alleviate inflationary pressure on PoS chains, which could harness Bitcoin for capital infusion via staking while simultaneously fortifying the security of emerging chains.
One of Babylon’s major challenges, as outlined in its lite paper, revolves around the need to “slash all safety violations remotely without necessitating a smart contract on the Bitcoin chain.”
To tackle this, the protocol relies on accountable assertions, finality gadgets, Bitcoin emulation, and timestamps.
Importantly, Babylon emphasizes the modularity of its construction, highlighting its compatibility with all PoS consensus protocols.
Crucially, no soft or hard fork of Bitcoin is needed to implement the Bitcoin staking protocol.
The introduction of staking in the Bitcoin network may pave the way for an influx of developers looking to create innovative solutions.
This is a significant challenge facing the original blockchain. As the pioneer and most prominent cryptocurrency, Bitcoin boasts a market capitalization of $847.8 billion.
Notably, a Glassnode report revealed that a staggering 66% of its circulating supply has remained dormant for a minimum of one year.
Alex Pack, the managing partner at Hack VC, underlines the transformative potential of Babylon’s technology, stating that it “not only unlocks the largest blockchain asset, but can also make Bitcoin-backed security services (such as data availability service) possible for the broader blockchain ecosystem.”
In addition to Polychain Capital and Hack VC, several other prominent investors have participated in this funding round, including Framework Ventures, Polygon Ventures, Castle Island Ventures, OKX Ventures, Finality Capital, Breyer Capital, Symbolic Capital, and IOSG Ventures.
Binance’s Abu Dhabi branch has withdrawn its application with the Emirate’s financial regulator, the Financial Services Regulatory Authority (FSRA), citing unrelated reasons to its recent $4.3 billion settlement with U.S. authorities.
The decision was revealed in a statement to Cointelegraph on December 7.
BV Investment Management, the subsidiary of Binance responsible for the application, had sought regulatory approval from FSRA to manage a collective investment fund.
However, after a comprehensive evaluation of its “global licensing needs,” Binance decided not to pursue this particular application.
A Binance spokesperson emphasized that this choice had no connection to the recent settlement in the United States, which involved Binance’s founder Changpeng “CZ” Zhao pleading guilty to a felony charge and stepping down as CEO.
In his place, Richard Teng, the former head of regional markets, assumed leadership, asserting that the exchange had undergone significant transformation post-settlement.
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Despite withdrawing the application, Binance Limited still retains permission to conduct crypto custody-related financial services within the Abu Dhabi Global Market, as indicated on its official website.
Binance’s spokesperson expressed the company’s ongoing commitment to cooperating with global regulators as part of its expansion strategy, which includes establishing a presence in Dubai and other countries.
The $4.3 billion settlement with U.S. authorities, announced on November 21, stemmed from allegations of failure to maintain an effective Anti-Money Laundering program and violating the U.S. Bank Secrecy Act.
CZ Zhao, who was at the center of the controversy, was subsequently released on bail in the United States while awaiting a court decision on whether he could return to his family in the United Arab Emirates.
His potential sentence, set for February, could result in up to 18 months in prison.
In summary, Binance’s decision to withdraw its application with Abu Dhabi’s financial regulator appears to be a strategic move driven by an assessment of its global licensing needs, unrelated to its recent legal troubles in the United States.
Binance remains committed to its expansion plans and collaboration with global regulators, even as it navigates the challenges posed by its leadership changes and legal settlements.
Meanwhile Group, a pioneer in Bitcoin life insurance, has introduced a groundbreaking private credit fund denominated in Bitcoin.
This exclusive fund is closed to investors and promises a “conservative” yield in Bitcoin, while also extending BTC-based loans to institutional counterparts at the discretion of the fund managers.
The Meanwhile BTC Private Credit Fund, managed by Meanwhile Advisors, sets its sights on achieving a 5% yield for its participants.
One of its distinguishing features is its meticulous screening of loan recipients, effectively mitigating risks often associated with retail lending platforms that primarily serve individuals, as stated by the company.
Investors in the fund will contribute U.S. dollars, which will be converted into Bitcoin when the fund reaches its closure.
All funds lent out will be in Bitcoin, and fees will be assessed and collected in the same cryptocurrency.
Zac Townsend, co-founder and CEO of Meanwhile Group, emphasized the unique opportunity this private credit fund presents to institutional investors.
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It enables them to maximize the value of their Bitcoin holdings without relinquishing ownership.
Notably, Meanwhile Group enjoys the support of prominent figures and entities in the tech and finance sectors, including Sam Altman, CEO of Worldcoin, Lachy Groom, a former executive at Stripe, and Gradient Ventures, a Google-affiliated venture capital fund.
Meanwhile Group’s previous venture, Meanwhile Insurance, was launched in Bermuda in June with an initial funding of $19 million.
This innovative insurance provider exclusively accepts premiums and pays out benefits in Bitcoin.
While currently only available in the United States, the company is in the process of expanding its services to citizens of other countries through a waitlist.
Meanwhile Insurance specializes in whole life insurance policies, which not only offer a death benefit but also accrue a cash value in Bitcoin over time.
This move towards integrating Bitcoin into the insurance and financial sectors is part of a broader trend. In 2021, New York Digital Investment Group secured a substantial $100 million in funding from major insurance providers.
Their objective is to introduce “Bitcoin-powered solutions” for U.S.-based life insurance and annuity providers, further highlighting the growing intersection of cryptocurrencies and traditional financial services.
Hive Digital Technologies, a Bitcoin mining company, has revealed that its strategic move to acquire a fleet of Bitmain mining rigs in 2022 has already proven to be a lucrative decision, primarily attributed to the substantial increase in the price of Bitcoin (BTC).
In a statement released on December 8th, Hive Digital explained that their decision to acquire mining rigs began after the collapse of FTX, a move they believe will position them favorably for the upcoming Bitcoin halving scheduled for April 2024.
On December 22, 2022, Hive made a significant purchase of 3,750 Bitmain S19J rigs.
President and Chief Operating Officer, Aydin Kilic, noted that the team also updated its software stack to seamlessly integrate these new rigs.
While the S19J rigs were the top-of-the-line ASIC rigs in 2022, they have since been succeeded by the more energy-efficient S19Ks.
Hive Digital emphasized the significance of their acquisitions since the collapse of FTX in November 2022, which marked the beginning of a year-long bear market for Bitcoin.
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The company has procured a total of 29,000 ASICs at an attractive average price of approximately $13.70 per terahash (TH). These rigs boast an average output of 26 joules per terahash (J/TH).
As a result of these acquisitions, Hive Digital’s global fleet efficiency has surged to 28.9 J/TH, with an expected operating hash rate of 4.8 exahashes per second by the end of December 2023.
In November 2023 alone, the company produced 276.3 Bitcoin from both ASICs and GPUs, averaging 66.7 Bitcoin per exahash.
Bitcoin’s remarkable growth of over 160% since January 1st has greatly benefited miners, especially those who endured a challenging period in the crypto market from late 2021 through all of 2022.
Currently, Bitcoin is trading at $43,400, reflecting a 9.8% increase over the past seven days, according to data from Cointelegraph.
This upward trend has further solidified the profitability of Hive Digital’s strategic mining rig acquisitions, reaffirming their positive outlook for the future in the lead-up to the Bitcoin halving in 2024.
El Salvador has introduced a new citizenship-by-investment program, known as the “Adopting El Salvador Freedom Visa Program,” which offers residency and a path to citizenship for 1,000 individuals willing to invest $1 million in either Bitcoin or Tether within the country.
While this program represents a unique opportunity, it comes with a steep price tag compared to neighboring Caribbean nations, where citizenship programs can start as low as $100,000.
The initiative, announced on December 7th, is a collaboration between the Salvadoran government and the stablecoin issuer, Tether.
To participate, potential investors are required to make an initial nonrefundable deposit of $999, which is credited toward the total $1 million investment.
If all 1,000 spots are filled, El Salvador stands to generate $1 billion in revenue, a substantial income source reminiscent of countries like Vanuatu, which annually earns millions through its own citizenship-by-investment program.
Critics, including Alistair Milne, the founder of crypto hedge fund Altana Digital Currency, have deemed El Salvador’s offering as “uncompetitive in the global market.”
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Comparatively, other options exist, such as Malta, which offers citizenship by investment for €750,000 ($810,000), providing access to the EU’s visa-free Schengen Area covering 23 countries.
Additionally, neighboring Caribbean nations like Antigua and Barbuda, Dominica, and St. Lucia grant citizenships in exchange for a $100,000 contribution to sovereign development funds.
Grenada and St. Kitts and Nevis offer similar programs with contributions starting at $150,000 and $250,000, respectively.
Despite the higher price point, El Salvador’s unique appeal lies in its pro-Bitcoin policies initiated by President Nayib Bukele.
These policies include recognizing Bitcoin as legal tender and eliminating income and capital gains taxes for tech companies investing in the country for the next 15 years.
These incentives may attract crypto investors to consider relocating to El Salvador.
However, it’s essential to note that President Bukele’s tenure has also faced controversy, with concerns raised about human rights violations and arbitrary detentions during his efforts to reduce the country’s high murder rate.
Bukele stepped down from the presidency on December 1st to focus on his reelection campaign ahead of the general election scheduled for February 2024.
El Salvador’s new citizenship-by-investment program, while notable, comes with mixed reviews due to its relatively high cost compared to other options and ongoing concerns about governance.
YieldMax, a specialized exchange-traded fund (ETF) firm, has recently submitted an application to the United States Securities and Exchange Commission (SEC) to introduce a groundbreaking yield-bearing ETF product.
This innovative offering will be based on shares of MicroStrategy, the Bitcoin-focused holding company led by Michael Saylor.
If granted approval by the SEC, the ETF will be known as the “Option Income Strategy ETF,” with plans to launch in 2024, trading under the ticker symbol “MSTY,” which is just one letter different from MicroStrategy’s existing ticker “MSTR.”
YieldMax’s forthcoming ETF employs a unique “synthetic covered call” strategy. This strategy combines the purchase of call options and the sale of put options to generate revenue, with the earnings distributed to MSTY ETF holders on a monthly basis.
An interesting aspect of this ETF is that it will not possess any actual MicroStrategy shares; instead, it will exclusively derive income from trading MSTR derivatives.
To minimize potential losses, the fund limits its exposure to a 15% gain on call options each month.
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Importantly, the monthly yields from the ETF will not be directly linked to the performance of MicroStrategy shares, ensuring that investors can still receive yields even if MicroStrategy’s stock experiences significant declines.
Questions have arisen on social media platforms regarding the rationale behind investing in this ETF rather than directly purchasing MicroStrategy stock or its options.
Yield-bearing ETFs like this one tend to appeal to conservative investors seeking slightly higher-than-average returns from the volatile stock market.
The fund’s imposed gain limits make it a cautious yet potentially more profitable avenue for generating passive income from significant fluctuations in stock prices.
YieldMax already offers a range of 18 similar ETF products tied to major tech companies such as Tesla,
Apple, and Nvidia. In the case of MicroStrategy, its shareholders have enjoyed substantial gains in 2023, with the company’s shares appreciating by over 290% since the beginning of the year.
Furthermore, MicroStrategy made headlines when its co-founder, Michael Saylor, announced the acquisition of an additional 16,130 BTC for approximately $593.3 million on November 30th, at an average cost of $36,785 per Bitcoin.
As of November 29th, MicroStrategy held a substantial 174,530 BTC, valued at roughly $7.6 billion at the time of this report.
This underscores MicroStrategy’s commitment to its Bitcoin holdings and its prominent role in the cryptocurrency market.
Binance founder Changpeng “CZ” Zhao has been mandated to remain in the United States until his sentencing in February, as concerns over the risk of flight to the United Arab Emirates prompted a federal judge’s decision.
On December 7, Seattle district court Judge Richard Jones issued an order for Zhao to stay in the U.S. until his sentencing, scheduled for February 23, 2024.
This decision stems from Zhao’s guilty plea on November 21, in which he admitted to money laundering, carrying a potential prison term of up to 18 months.
Importantly, he agreed not to appeal any sentence up to this maximum duration.
Judge Jones justified this ruling by emphasizing Zhao’s substantial wealth and property overseas and his lack of significant ties to the United States.
The judge concurred with the arguments put forth by federal prosecutors, who contended that they would be unable to guarantee Zhao’s return to the U.S. in the event he chose not to come back voluntarily.
Furthermore, Judge Jones pointed out that Zhao’s family resides in the UAE, where he seems to enjoy preferential status.
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Under these circumstances, the court found insufficient clear and convincing evidence that Zhao would not attempt to flee if allowed to return to the UAE.
Consequently, the court granted the government’s motion, requiring Zhao to remain within the continental United States between his plea and sentencing.
In a related development, on December 6, Judge Jones accepted Zhao’s guilty plea, which had been submitted nearly two weeks earlier, but did not immediately decide on a federal prosecutor’s request to prevent him from returning to his residence in Dubai.
Zhao is currently on a $175 million bond, primarily consisting of assets beyond the government’s reach, as per Judge Jones.
The bond conditions permit Zhao to travel freely within the U.S. and allow visits from his family, which the judge characterized as minor restrictions on his freedom.
The legal troubles for Binance and Zhao began in November when they reached a settlement with U.S. regulators, agreeing to pay $4.3 billion.
The settlement involved admitting to running an unlicensed money-transmitting business and violating the Bank Secrecy Act, and it also led to Zhao stepping down from his role as CEO of Binance.
Asset manager VanEck has made several predictions for the cryptocurrency market in 2024, foreseeing a new all-time high for Bitcoin later in the year.
These predictions come in the context of a looming U.S. recession and regulatory changes following the 2024 U.S. presidential election.
VanEck, alongside other firms like BlackRock and Fidelity, is seeking approval for spot Bitcoin and Ethereum exchange-traded funds (ETFs).
The firm is confident that the first spot Bitcoin ETFs will receive approval in the first quarter of 2024.
Simultaneously, VanEck paints a gloomy picture for the U.S. economy, anticipating that a recession will finally occur, coinciding with the launch of these ETFs.
They predict that over $2.4 billion could flow into these ETFs during Q1 2024, bolstering Bitcoin’s price.
VanEck also downplays concerns about the Bitcoin halving, expecting minimal market disruption but a subsequent price increase.
The real catalyst for a new all-time high for Bitcoin, according to VanEck, may be political events and regulatory changes triggered by the U.S. presidential election scheduled for November 5, 2024.
VanEck does not anticipate Ether overtaking Bitcoin in 2024, though it expects Ether to outperform major tech stocks.
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They believe that Bitcoin will lead the market rally initially, with smaller tokens benefiting after the halving.
VanEck acknowledges that Ethereum’s market share may face challenges from other smart contract platforms like Solana, which has a more certain scalability roadmap.
Regarding Ethereum, VanEck predicts that Ethereum layer-2 networks will dominate the Ethereum Virtual Machine-compatible total value locked and trading volume after the implementation of the EIP-4844 scaling update.
In a separate report, venture capital firm Andreessen Horowitz (a16z) suggests that crypto could play a crucial role in decentralizing artificial intelligence (AI).
It argues that decentralized networks can counterbalance the centralized AI models currently controlled by tech giants, making it possible for anyone to contribute computing power and data to train large language models.
VanEck also anticipates a shift in the centralized exchange landscape, with Binance potentially losing its top position in trading volume to competitors like Coinbase, OKX, Bybit, and Bitget.
Regulatory pressures have weighed on Binance, culminating in its former CEO stepping down amid a substantial settlement with the U.S. Justice Department.
Additionally, VanEck expects the market capitalization of stablecoins to reach $200 billion, foresees a resurgence of Circle’s USD Coin, and predicts that decentralized exchanges will achieve record spot trading volumes.
They also anticipate Know Your Customer (KYC)-compliant decentralized finance platforms surpassing non-KYC ones in terms of user base and fees, driven by apps like Ethereum Attestation Service and Uniswap Hooks.
Do Kwon, co-founder of Terraform Labs, is making a final appeal against a Montenegrin court’s decision that could potentially lead to his extradition.
Local state media reported on December 6 that Kwon’s legal team had officially submitted an appeal against the November 24 ruling by the High Court of Podgorica.
This ruling had approved the possibility of Kwon’s extradition to either the United States or South Korea, pending a final decision by the Montenegrin Ministry of Justice.
The Montenegrin Ministry of Justice is now tasked with reviewing the appeal and reevaluating the initial extradition order.
A final decision on the matter is expected to be reached by December 15.
In a statement made on November 24 by the High Court of Podgorica, Kwon expressed his preference for extradition to South Korea over the United States.
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Kwon’s legal team had initially contested the extradition requests from the U.S. on September 28, arguing that any attempt to deport him before October 13 would be deemed “impossible” due to his ongoing detention in Montenegro.
This legal battle traces back to February 17 when the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against both Terraform Labs and Do Kwon, accusing them of orchestrating a multibillion-dollar crypto asset securities fraud.
The situation escalated when Kwon and the former chief financial officer of Terraform Labs, Han Chong-joon, were arrested on March 23 at Podgorica airport.
They were apprehended for attempting to depart for Dubai with falsified travel documentation.
Subsequently, Kwon found himself in extradition custody in Montenegro from June 15, and the court had ordered his imprisonment for six months while deliberating on whether he should be extradited to the United States or South Korea.
As Do Kwon’s fate hangs in the balance, the ongoing legal proceedings continue to draw significant attention from the cryptocurrency and legal communities, with the Montenegrin Ministry of Justice poised to make a pivotal decision regarding his extradition by mid-December.