Bitcoin’s volatility reflects significant price and market capitalization fluctuations
Bitcoin (COIN:BTCUSD) once again exhibited its well-known market instability, briefly reaching the $38,000 mark before retreating to around $36,500. This movement was mirrored by its market capitalization, which saw an increase from $715 billion to $740 billion before regressing to the initial level. It’s worth noting the daily increase in market capitalization by 4.5%, jumping from $697 billion to $729 billion, one of the most significant daily percentage growths in Bitcoin’s history. The crypto market saw liquidations exceeding $440 million in a 24-hour period, resulting in a more than 5% drop in open interest. In this volatile scenario, the Chicago Mercantile Exchange (CME) surpassed Binance in terms of open interest.
JPMorgan (NYSE:JPM) analysts express skepticism about Bitcoin’s recent appreciation, considering it exaggerated given the cryptocurrency’s fundamentals. The 30% rise in the past month, driven by the expectation of a Bitcoin ETF in the US and legal victories in the sector, is viewed with skepticism. The report points out that the enthusiasm for the ETF and the legal defeats of the SEC are not enough to sustain Bitcoin’s ascent. Furthermore, they believe that the impact of the next Bitcoin halving is already reflected in current prices.
BlackRock advances in the crypto asset market
BlackRock Advisors registered the creation of the iShares Ethereum Trust entity on the website of the Delaware Department of State’s Division of Corporations today. This suggests a possible strengthening of the asset management giant’s interest in cryptocurrencies. While BlackRock (NYSE:BLK) awaits the SEC’s decision on its Bitcoin ETF, the price of Ether (COIN:ETHUSD) has risen by 8% in the last 24 hours, surpassing the $2,000 mark. The company also filed for a Bitcoin ETF in June, which influenced the market. The SEC has not yet received the Ethereum Trust filing, but similar moves preceded the Bitcoin ETF filing, indicating possible imminent registration. Major trading companies are preparing to support BlackRock’s Bitcoin ETF if approved.
ARK Invest and 21Shares innovate with digital asset ETFs
ARK Invest, led by experienced investor Cathie Wood, has teamed up with exchange-traded product provider 21Shares to create new digital asset index funds (ETFs), aiming to diversify options for investors in the crypto asset market. The companies will use on-chain signals and industry expertise to offer long-term capital appreciation through Bitcoin and Ethereum futures contracts. These ETFs will be listed on CBOE and will not allow direct investment in spot Bitcoin, focusing on indirect exposure and blockchain technological growth. In other news, ARK Invest is intensifying its investment strategy in Robinhood (NASDAQ:HOOD), a cryptocurrency-friendly app. On November 8, ARK acquired 1.1 million shares of Robinhood, investing approximately $9.5 million in just one day, according to a trading notification. The investment was spread across three innovation ETFs managed by ARK, with the ARK Innovation ETF (AMEX:ARKK) acquiring the majority. This massive purchase follows consistent but smaller acquisitions of Robinhood by ARK while simultaneously selling shares of the Grayscale Bitcoin Trust (USOTC:GBTC).
HT, GAMEE, and Netvrk tokens record significant gains
Huobi token (COIN:HTUSD), from the HTX exchange, saw a significant 15% increase, reaching $2.75 in the last 24 hours, the highest in five months, driven by rapid trading volume growth. Breaking a 12-month downtrend, HT is resurging as signs of a bullish market begin to appear in the crypto market. Despite the rise, Justin Sun, HTX consultant, claimed to be unaware of the reasons for the appreciation.
Smaller digital currencies are also gaining value. GAMEE tokens (COIN:GMEEEUSD) surged over 13% in 24 hours and nearly 500% in the past week. Netvrk (COIN: NTVRKUST), a token from a social virtual reality platform, grew in the last 24 hours and 178% in the past week. Despite these impressive jumps, there are considerable risks due to volatility and security issues in their smart contracts.
Slowdown in Base with a decline in DeFi activities
Base, backed by Coinbase (NASDAQ:COIN), has experienced a significant reduction in decentralized finance (DeFi) activities, with the total locked value (TVL) falling by approximately 30% over the last two months. Data from DeFillama indicates that the TVL on the Ethereum layer2 network has plummeted to $284.59 million, a steep decline from the peak of $411.5 million in September. Despite a recovering market, investors have withdrawn more than $100 million from network protocol assets, contradicting initial expectations of success following its launch in August.
Gemini adapts to new crypto asset regulation guidelines in the UK
In response to new regulations for virtual asset service providers in the UK, the cryptocurrency exchange Gemini announced changes to comply with the so-called “Travel Rule.” Starting on November 17, Gemini will only allow outgoing transfers of Bitcoin and other cryptocurrencies to a specific list of 58 companies registered with TRUST. Furthermore, starting on December 1, incoming transfers from providers not registered with TRUST may be restricted, aiming for transparency in transactions. Additional information will be requested for all transfers, following the evolving regulatory standards in the UK’s digital asset sector.
Ten finalists of the crypto innovation challenge revealed by Bybit and DMCC
Bybit, in partnership with the Dubai Crypto Centre DMCC, highlighted ten finalists from the “Crypto Innovation Challenge: Unleashed Web3.” They were selected from among a hundred applicants for their innovative proposals in Web3, covering GameFi, DeFi, NFTs, and sustainable blockchain solutions in the UAE. These teams will have the opportunity to present their projects at an event on November 22, competing for prizes of up to 100,000 USDT. Initiatives range from decentralized assessment of digital assets to redefining cloud computing, aiming to boost efficiency and transformation in the digital asset sector.
$100 million joint venture in the crypto enterprise in the UAE
SBI Holdings and the investment arm of Standard Chartered (LSE:STAN), SC Ventures, have joined forces to create a $100 million joint venture in the United Arab Emirates, focused on cryptocurrency startups. The venture aims to support everything from market infrastructure to the Metaverse, including DeFi and consumer payments, with investments ranging from early-stage to Series C. The joint venture will also leverage the region’s rapidly developing infrastructure and talent, recognizing the UAE as a growing hub for fintechs in the digital asset space.
Launch of a blockchain-focused investment fund by Lightspeed Faction
Lightspeed Faction, specializing in blockchain investments, has initiated a $285 million fund for early-stage projects. With a team of former employees from Amber Group, Blockchain.com, and Coinbase (NASDAQ:COIN), they will provide specialized consultancy to supported initiatives.
Spartan Group strengthens DeFi support with a new investment in Pendle Finance
Singapore-based digital asset investment firm Spartan Group has increased its bet on the decentralized finance (DeFi) protocol Pendle Finance with a new financial investment, the amount of which was not disclosed. Supporting Pendle since its inception in 2021, Spartan’s venture capital arm, Spartan Capital, made an additional investment through an over-the-counter purchase. The partnership between the two entities, dating back to the creation of the DeFi project, aims to support Pendle’s future ambitions, recognizing its significant role in advancing yield trading on-chain.
India advances in cybercrime combat training with cryptocurrencies
The annual report from India’s Ministry of Home Affairs reveals cryptocurrency forensics training for police officers during the fiscal year 2022-2023. A total of 141 officers were trained in darknet and cryptocurrency-related investigations. Additionally, more than 2,800 cyber police officers enhanced their skills in digital forensics and other emerging technologies. As India arms itself against crypto crimes, the state-owned oil company HPCL implemented a blockchain system for automated purchase order authentication.