ARK Invest sees Bitcoin at $2.3 million with asset diversification and market updates
ARK Invest predicts that Bitcoin could reach $2.3 million with a reallocation of 19.4% of global assets. The report highlights Bitcoin (COIN:BTCUSD) as an attractive investment, with an annualized return history of 44% over the past seven years, outperforming other assets. ARK Invest’s strategy of including Bitcoin in portfolios to maximize risk-adjusted returns reflects a long-term view despite market volatility. Adoption by institutional investors and its position as a safe asset in times of uncertainty are key factors. The 11 approved Bitcoin ETF applicants represent approximately 3.3% of the total Bitcoin supply, indicating growing institutional accumulation.
On Friday, the price of Bitcoin, which had recovered to the $43,000 level, slightly dipped below this level in the last 24 hours, and speculation about a reduction in interest rates in the US may impact the market. “Nearly 60% of players believe that US interest rates may fall in May after the Federal Reserve Chairman’s speech this week. The market is liking this hypothesis, which is keeping BTC above $40,000 and causing exchanges to break historical highs,” commented Fernando Pereira, an analyst at Bitget. Additionally, nearly $1 billion in Bitcoin options are set to expire today, with a significant expiration of 230,000 Ethereum (COIN:ETHSD) contracts also on the horizon.
Valkyrie announces BitGo as new custodian for Bitcoin ETF
Valkyrie (NASDAQ:BRRR), a pioneer in Bitcoin ETFs in the US, has chosen BitGo as the second custodian for its fund, emphasizing diversifying the security of its digital assets. This collaboration, marked as a milestone by BitGo’s Mike Belshe, suggests a growing trend among ETFs to strengthen investment protection. The industry closely watches this development, anticipating similar moves from other funds in response to Valkyrie’s innovative risk management.
BlackRock and ProShares ETFs surpass GBTC in trading volume
BlackRock’s (NASDAQ:IBIT) and ProShares’ (AMEX:BITO) ETFs surpassed Grayscale’s (AMEX:GBTC) ETF in trading volume on Thursday, with IBIT reaching $306 million and BITO reaching $298 million, compared to GBTC’s $291 million. This milestone, observed for the first time, highlights a shift in the Bitcoin market, with daily ETF volumes falling below $1 billion. Investors transitioning from GBTC to new ETFs reflect diversification and evolving preferences in crypto asset investments.
Hong Kong’s VSFG moves towards Ethereum ETF
Hong Kong’s Venture Smart Financial Holdings (VSFG) is close to applying for a Bitcoin ETF and anticipates an Ethereum ETF in the second quarter, pending regulatory approval. VSFG’s President, Lawrence Chu, emphasizes careful preparation for regulatory submission and potential fee competition among asset managers in the city, where the cryptocurrency ETF market is gaining traction.
Chainlink reaches a 22-month peak and outperforms major cryptos
Chainlink (COIN:LINKUSD) achieved a notable 22-month peak, with LINK surpassing $18.5 on Friday, outperforming Bitcoin (COIN:BTCUSD) and Ether (COIN:ETHUSD) with a 35.14% jump in one week. This breakthrough ends a three-month stagnation, highlighting Chainlink’s vital role in connecting blockchains with external data. Growing interest in LINK futures contracts and the potential for real asset tokenization reinforce optimism around LINK.
Solana DEX surpasses Ethereum after JUP airdrop
The Jupiter token airdrop on Solana generated significant enthusiasm, causing Solana’s DEXs to outperform those on Ethereum in trading volume, with $1.14 billion in 24 hours. This event underscores Solana’s growth in DeFi, especially after the $700 million JUP airdrop to nearly one million wallets, stimulating record activity on the network. Despite the recent advantage, Solana still trails Ethereum in weekly volume, with the network’s stability evident even amid heavy traffic.
Meta Platforms boosts the market with profits and impacts AI tokens
After reporting positive earnings and announcing a $50 billion share buyback, Meta’s (NASDAQ:META) shares surged on Friday, leading to an increase in artificial intelligence tokens. With CEO Mark Zuckerberg highlighting advances in AI and the metaverse, the company, which also announced its first dividend, saw a cascading effect benefiting AI tokens like Render (COIN:RNDRUSD) and Fetch.ai (COIN:FETUSD), with increases of 0.87% and 3.92% in the last 24 hours, respectively.
Victoria VR drives the metaverse on Apple’s Vision Pro
Victoria VR, an innovator in cryptography and VR, announced the launch of its metaverse app for Apple’s Vision Pro (NASDAQ:AAPL), promising advanced graphics and immersive gameplay. Available in the second quarter, the app promises a rich digital experience, leveraging the capabilities of Vision Pro and the strength of Web3. Apple’s pioneering VR with Vision Pro faces competition from Meta Quest. Victoria’s metaverse is powered by the VR token, which has appreciated by 60%, encouraging active participation and rewarding users with a share of in-game sales revenue.
Polygon Labs streamlines team to reinforce efficiency
Polygon Labs (COIN:MATICUSD) reduced its team by 19%, cutting 60 positions, according to CEO Marc Boiron’s announcement on Thursday. The restructuring aims to accelerate progress and strategically align teams within the web3 ecosystem while maintaining a sharp focus on the company’s mission. This strategic decision, driven by efficiency rather than financial reasons, follows the separation of Polygon Ventures, now P2 Ventures, and the future independence of the Polygon ID team.
Avantis launches on the Base network with innovative perpetual swaps strategy
Avantis debuted on the Base mainnet, bringing an innovative solution to the challenges of crypto futures markets, focusing on the retail audience. As a pioneer in Layer 2 backed by Coinbase (NASDAQ:COIN), Avantis aims to introduce DeFi users to high-risk trading with leverage of up to 75x. After a two-month test with $5 billion in trading, the protocol proposes a unique method, offering discounts to traders taking opposite positions, mitigating risks, and encouraging diversified participation.
Binance freezes $4.2 million in XRP after exploit
Binance blocked $4.2 million in XRP (COIN:XRPUSD) following a $120 million exploit, following an alert from XRP Ledger developers. Binance CEO Richard Teng pledged to assist Ripple in investigations to recover the funds, monitoring transfers to the exchange. The breach, which affected Ripple co-founder Chris Larsen’s personal wallet, resulted in the diversion of 213 million XRP, some of which was laundered through various exchanges.
OPNX announces closure of operations in February
Open Exchange (OPNX), the successor to Coinflex, will cease its operations in February 2024. The platform instructed users to settle positions by February 7th and withdraw funds by February 14th, promising an organized closure. Linked to the founders of Three Arrows Capital, OPNX expressed gratitude to its community for its support.
El Salvador maintains commitment to Bitcoin under Bukele
El Salvador will continue to adopt Bitcoin (COIN:BTCUSD) as a legal currency if President Nayib Bukele is reelected, according to Vice President Felix Ulloa. The decision reinforces the country’s pioneering position in Bitcoin integration, inspired by the recent approval of Bitcoin ETFs in the United States. Bukele, known for his innovative policies, also plans to advance the proposal for Bitcoin City, powered by volcanic geothermal energy.
Hut 8 and Ionic Digital partner for Bitcoin mining
Hut 8 (NASDAQ:HUT) has entered into a four-year agreement with Ionic Digital, newly emerged from Celsius’s bankruptcy, to provide managed Bitcoin mining services. The partnership involves the expansion and operation of facilities in Texas and New York, with Hut 8 managing 127,000 miners and a 300 MW infrastructure. This agreement promises to strengthen Hut 8’s position in the industry, generate significant revenue, and include an equity stake in Ionic.