bitcoin price today

Here’s what happened in crypto today

Need to know what happened in crypto today? Here is the latest news on daily trends and events impacting Bitcoin price, blockchain, DeFi, NFTs, Web3 and crypto regulation.

A U.S. federal court has approved the settlement between Binance and the Commodities Future and Trading Commission (CFTC), which will see Binance pay $2.7 billion in penalties. Meanwhile, Lido DAO is the center of a class-action lawsuit claiming the it duped the public into investing in an unregistered securities offering,and spot Bitcoin (BTC) exchange-traded funds (ETFs) could trigger unwanted consequences for crypto exchanges like Coinbase.

A United States court has entered an order against crypto exchange Binance and its former CEO, Changpeng “CZ” Zhao, that will see Binance pay $2.7 billion and CZ pay $150 million to the Commodity Futures Trading Commission (CFTC).

In a Dec. 18 statement, the CFTC announced that the U.S. District Court for the Northern District of Illinois had approved the previously announced settlement and concluded the enforcement action first issued by the CFTC in November.

What happened in crypto this weekend?

Tether is working closer with U.S. law enforcement, revealing it has already frozen 326 wallets linked to criminals, while VanEck CEO has pled a bullish case for the future of Bitcoin.

Stablecoin issuer Tether (USDT) has revealed it has frozen 326 wallets linked to criminals, totaling $435 million as of Dec. 15, and is working closer with U.S. law enforcement agencies than ever before.

“We have assisted in freezing, as of the date of this letter, approximately 326 wallets totaling approximately USDT 435 Million,” the firm’s CEO Paolo Ardoino explained to Senator Cynthia Lummis and U.S. Representative French Hill on Dec. 15.

Tether said it also onboarded the United States Secret Service into its platform to strengthen its compliance measures with U.S. law enforcement and is in the same process with the FBI.

4 signs the Bitcoin price rally could top out at $26K for now

BTC price faces pullback risks thanks to bearish on-chain movements and challenging technical resistance levels.

Bitcoin (BTC) received a substantial boost this week as United States inflation levels for February were in line with market expectations. On March 14, the BTC/USD pair surged to a 2023 peak at $26,550 after the news.

But, while the macroeconomic conditions may currently favor risk-on buyers, certain on-chain and market indicators hint at a potential correction in the near term.

BTC flows back to exchanges as price rises

On March 13, Glassnode’s exchange flow data recorded the most significant inflow to exchanges since May 2022. This means more supply on exchanges and potentially higher selling pressure.

The coin days destroyed indicator, which measures the time-weighted transfers of Bitcoin, also shows a small spike, indicating that old hands are moving coins. The indicators might signal profit booking by long-term holders, which can lead to a correction.

*Bitcoin exchange netflow volume. Source: Glassnode*

Bitcoin funding rates, RSI jump

Moreover, the funding rate for Bitcoin perpetual swaps is also elevated with the latest Consumer Price Index print. In other words, more traders are betting on the upside with leveraged positions, increasing the risk of a correction.

*Funding rate for Bitcoin perpetual contracts. Source: Coinglass*

The sharp price movement has also recorded a significant spike in the Relative Strength Index (RSI), a technical momentum indicator, with a reading of as high as 82. This means that BTC/USD is generally considered “overbought” in the short term.

BTC vs. USD painting a bearish pattern

BTC price is currently forming a broadening wedge pattern, which depicts the heightened level of volatility. Both buyers and sellers are pushing the price beyond support and resistance levels, with the reversals coming quickly.

*BTC/USD 4-hour price chart. Source: TradingView*

Buyers failed to stage a pattern breakout on March 14, and are now facing resistance at its ceiling of $26,700. At the same time, there is a chance that the price will correct back toward the bottom of the pattern, around $19,500, in the coming days.

On the contrary, if Bitcoin’s price breaks above the top trendline, the bulls will likely pile in to push the price toward $30,000. There are potentially welcome signs for the bulls that this could happen — namely in the BTC options and futures markets.

As Cointelegraph reported, there’s still room to run, as the indicators have yet to reach previous peak levels.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin price flash spikes to $50K on Binance after USD Coin peg snaps

The market frenzy that started with the Silicon Valley Bank collapse is pushing the BTC price higher, with some casualties left behind.

The panic caused due to USD Coin’s (USDC) depeg from the U.S. dollar manifested itself in a wrong order, costing traders $50,000 per Bitcoin (BTC), albeit for several minutes.

Bitcoin price sees $50K in “fat finger” error

The BTC/USDC pair on Binance flash spiked to $50,000 on March 12 around 7:00 pm UTC. The reason for the impulse spike is unknown and was likely due to a “fat finger” trade of a large order.

*BTC/USDC hourly price chart on Binance. Source: TradingView*

The potential reason for the flash spike is likely due to thin order books for the newly launched BTC/USDC pair on Binance. The exchange listed the pair only a few hours before the impulse price surge.

According to a trader on Crypto Twitter, it is likely that a Bitcoin market order ate through the limit sell-orders on the pair up to $50,000.

The pair’s trading price returned toward the market spot price of around $22,000 in minutes following the spike, suggesting it was an isolated incident. Fortunately, the futures market remained unaffected by the spot BTC/USDC pair; otherwise, it could have triggered massive short-side liquidations.

But this isn’t the first time cryptocurrency exchanges have seen flash crashes and spikes. Multiple exchanges in the past had similar issues, inciting anger and refund requests from affected customers.

In August 2017, a flash crash on GDAX, now called Coinbase Pro, saw Ether (ETH) prices plummet to as low as $0.1 due to a customer error. Ether was trading at around $300 elsewhere at the time.

USDC stablecoin peg recovers

USDC’s value dropped to lows of $0.87 on March 11 after Circle, the issuer of USDC, revealed that it had $3.3 billion exposure to the defunct Silicon Valley Bank (SVB).

USDC trading pairs have been unstable on other exchanges since the SVB revelations. On March 11, the BTC/USDC pair on Kraken spiked to over $26,000 due to fears about the collapse of USDC.

At the time, USDC was trading at a 10% discount, which would have priced Bitcoin at around $22,200. However, the spike toward $26,000 indicates that panic causes serious volatility.

The fears amplified over the weekend due to uncertainty around the fate of SVB depositors. In response, the United States Treasury, Federal Reserve, and Federal Deposit Insurance Corporation decided to bail out the customers of SVB and Signature Bank but not the shareholders and other stakeholders, restoring market confidence for now.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Cathie Wood: Ark dumps 500K GBTC shares, adds Coinbase stock as Bitcoin recovers 40%

Ark’s GBTC weight in the portfolio actually increased despite the fund selling 500,000 shares in the past month.

Cathie Wood’s Ark Invest offloaded a chunk of its Grayscale Bitcoin Trust (GBTC) shares since November’s Bitcoin (BTC) price lows, the latest data shows.

Cathie Wood’s Ark short-term cautious on GBTC

Ark Invest added 450,272 GBTC shares worth $4.5 million to its ARK Next Generation Internet ETF (ARKW) in November 2022. At the time, GBTC was trading in the $7.46-$9.48 range versus $12.25 in January 2023.

GBTC price, of course, recovered alongside Bitcoin, rising roughly 40% from its November lows. The recovery in January also helped reduce the GBTC “discount” from nearly 50% to 40%, according to YCharts.

*GBTC daily price chart. Source: TradingView*

Interestingly, the share price rebound coincided with a reduction in ARKW’s GBTC holdings by 500,000 shares, suggesting profit taking in the short term.

*GBTC shares (purple) in Ark’s ETF versus its price (orange). Source: Cathiesark.com*

Moreover, Ark’s reduction in shares since November appears in line with its officially “bearish view” on the Grayscale Bitcoin Trust, as mentioned in its December report, which stated that:

“The Digital Currency Group (DCG) appears to be one of the biggest questions marks in the crypto industry at this time.”

The company also expressed concerns about Genesis Global, a cryptocurrency lender owned by DCG. Genesis filed for bankruptcy while claiming $1 billion to $10 billion in liabilities to over 100,000 creditors.

Meanwhile, Grayscale has been unable to convert its Bitcoin trust into an ETF following rejections from the U.S. Securities and Exchange Commission (SEC). As Cointelegraph reported, an approval from the SEC could reset GBTC’s discount to zero.

Nonetheless, as of Jan. 23, GBTC’s share weight in Ark’s portfolio has actually increased to 0.52% compared to its November 2022 low of 0.35%.

*GBTC shares’ weight (purple) across Ark ETFs. Source: Cathiesark.com*

Ark adds $17.6M in Coinbase stock

Ark’s selling of GBTC shares in the past weeks coincided with accumulation of Coinbase (COIN) shares.

Cathie Wood’s ARKW added 320,000 COIN shares (about $17.6 million) in 2023. As a result, the Coinbase stock’s weight in Ark Invest’s combined ETF portfolios has reached nearly 3.62% on Jan. 23 versus 2.73% at the start of this year.

*COIN shares (purple) in Ark’s ETF versus its price (orange). Source: Cathiesark.com*

Overall, Ark appears to be only increasing its exposure to the Bitcoin market, particularly as Wood is well known for her consistent $1 million BTC price prediction by 2030.

Can the GBTC price rally continue?

Similarly, Greenery Financial, an investment strategy firm, confirmed that it had shifted its GBTC exposure to ProShares Bitcoin Strategy ETF (BITO) due to the above-mentioned risks around DCG.

“Any bad news, be it Cathie Wood selling out of GBTC or DCG going bankrupt, will spark the same fears and doubt – of uncertainty – and likely cause an expansion of the discount once again,” the firm warned in its SeekingAlpha note, saying:

“With Bitcoin having no real catalyst in the short term and plenty of potential downside catalysts, there are plenty of risks here from the NAV side as well.”

Nonetheless Bitcoin and GBTC prices may keep on rallying through Q1 from a technical perspective.

On the daily chart, GBTC has reclaimed its 50-day exponential moving average (50-day EMA; the red wave in the chart below) near $9.68 as support.

Upward momentum could see it test the 200-day EMA (the blue wave) near $15 if it continues to float above the 50-day EMA wave, similar to what happened in March-April 2022.

The technical upside target falls in line with what Pat Tschosik, senior portfolio strategist at Ned Davis Research, predicts about the Grayscale Bitcoin Trust.

He argues that GBTC price could not only double by mid-2023, but also narrow the extant discount gap with Bitcoin’s spot price.

“We recommend GBTC…as a way to play Bitcoin because it has a ‘potential NAV kicker rebate,’ which not only means it would go up if Bitcoin goes up, but also closing its current large 35% rebate on NAV,” Ned Davis Research said in a note to clients.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin ditches $16K dip as ‘Leeroy Jenkins’ Bank of Japan flattens dollar

BTC price sees short-term relief as the DXY falls, but Bitcoin analysts warn that Japan’s move means carnage for global markets.

Bitcoin (BTC) recovered from an overnight dip on Dec. 20 as Japan’s central bank sparked chaos on global financial markets.

*BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView*

Analyst likens BoJ policy to FTX

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD returning to near $17,000 after falling over 3% through the course of Dec. 19.

The largest cryptocurrency benefitted from the flash United States dollar weakness, this coming on the back of a surprise policy tweak from the Bank of Japan (BoJ).

Long a deflationary environment with ultra-low interest rates, Japan woke up to a sea change on the day as policymakers lifted the cap on bond yields. The yen instantly gained against the USD, while Japan’s Nikkei plummeted.

Reacting, Bitcoin analysts were anything but jubilant despite the short-term benefits for BTC/USD.

Japan, seeming to follow the U.S. in attempting to tame inflation, had unleashed a can of worms which would only become apparent later, they said.

“That’s what happens when you artificially surprises the free market,” Arthur Hayes, former CEO of exchange BitMEX, tweeted, likely intending to write “suppress” instead of “surprises:”

“It blows up in your face. Expect 10yr JGB yields to trade at the 0.50% yield ceiling once USD liquidity falters in 1Q23. Yachtzee.”

Hayes had previously written about central banks’ practice of yield curve control (YCC), which at the time he said was irreversible once started.

A further post, meanwhile, focused on BoJ ownership of Japanese bonds, now above 50%. This scenario, he said, was reminiscent of the last days of the defunct exchange FTX.

“It’s like the BOJ is taking lessons from (FTX ex-CEO, Sam Bankman-Fried,” Hayes wrote:

“When you own over 50% of a market is it even a market anymore? $FTT = $JGB.”

*Japanese government bond 10-year yield chart. Source: TradingView*

Other responses were no less frank in their appraisal of the BoJ, with Marty Bent, founder of crypto media company TFTC, likening the move to it having “pulled Leeroy Jenkins on the global financial system.”

“A minor policy tweak has huge implications that will take weeks to play out,” part of remarks from portfolio manager Christian H. Cooper added:

“BOJ was the last low yield holdout and now that changes. Spike in rates, stocks lower (for weeks), + chaos.”

U.S. dollar meets “perfect storm”

The Japan story fed into an already fervent narrative over dollar strength, thus hitting six-month lows earlier in December.

“The perfect storm for a DXY top has formed,” popular analytics account Tedtalksmacro summarized.

The U.S. Dollar Index (DXY) thus abandoned its attempt at a sustained recovery on intraday timeframes, retreating to lows under 104 on the day:

“Major central banks are now playing catch-up to the Fed, including the most dovish —> the Bank of Japan. The race to tame inflation outside of the US is on, and the US look to have already done it.”

*U.S. dollar index (DXY) 1-day candle chart. Source: TradingView*

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.