🔴 Cryptocurrency market overreaction?! | Cryptocurrency News of the Week – October 23, 2023
ETF Hype Is Taking Markets on a Rollercoaster, Binance Is Making a Difference in Europe, and Is FTX Inspection Actually Referring to Dumb and Dumber?! This week we bring you these stories and more in cryptocurrency.
Bitcoin tests $30,000 in ETF Momentum
Bitcoin price has tested the $30,000 level twice this week as expectations rise for the long-awaited Bitcoin spot ETF. Ethereum and the broader altcoin market also saw gains. Despite published reports that a spot ETF had been approved that were later retracted, several large market participants this week expressed confidence in the approval of an eventual U.S. spot Bitcoin ETF.
$100 million lost due to news error
A misreporting of an approved spot Bitcoin ETF led to the liquidation of nearly $100 million after the currency’s price surged on the verge of a hasty correction. Cointelegraph’s account posted on X posted that the SEC approved a Bitcoin ETF, but that report turned out to be premature. An internal investigation found that the report was published solely based on Telegram messages that had not been verified before meeting Cointelegraph’s social media protocols.
Cryptocurrency market unites with Bitcoin ETF
Market participants reiterated their expectations for a spot Bitcoin ETF. Paul Grewal, Coinbase’s chief legal officer, said the SEC is now likely to approve the ETF soon. Grewal highlighted the fact that regulators will not be able to stop Grayscale from converting its GBTC Bitcoin Fund into an ETF in court. Investment bank JPMorgan confirmed in a note to investors that it expects ETF approval before the Jan. 10 final deadline for Ark 21Shares applications. And BlackRock ETF insider Anthony Scaramucci went even further, saying that ETF approval would push Bitcoin prices up to $330,000.
Top US Cryptocurrency Company Named in Billion Dollar Fraud Lawsuit
U.S. prosecutors have indicted three prominent cryptocurrency companies on charges of defrauding investors of more than $1 billion. Prosecutors say U.S. exchange Gemini lied to customers about the risks of investment accounts that pay high interest on cryptocurrencies. Cryptocurrency lender Genesis and its parent company, Digital Current Group, which participated in the program, also now face prosecution.
Binance changes European services
Binance’s Visa debit card service will end in the European Economic Area in December as Binance’s card issuer, Contis Financial Services, ceases issuing the cards. The cryptocurrency exchange also announced that it would introduce a new fiat partner to provide Euro services after Binance’s European provider Paysafe discontinued support in September.
US crackdown on cryptocurrency mixers
The United States has strengthened its crackdown on illegal cryptocurrency activities, with a focus on cryptocurrency mixing services. The Treasury Department plans to increase transparency about transactions passing through cryptocurrency mixers to combat money laundering and national security risks by curbing the use of digital tokens to finance sanctioned groups such as Hamas.
Ferrari allows cryptocurrency in the US
Ferrari now accepts cryptocurrency for its luxury cars in the United States and plans to expand the plan to Europe. Ferrari said the decision was made based on market demand and dealer requests, as many of its customers had invested in cryptocurrencies. Customers can purchase Ferrari cars using Bitcoin, USDC, and Ether.
FTX Trial Is Getting Out of Control
The social media excitement surrounding Sam Bankman-Fried’s trial is fueling a hyper-online swarm of cryptocurrency-obsessed people and self-described “degenerates.” Journalists have to compete with cryptocurrency influencers and online celebrities every day for courtroom space. In one clever moment, the prosecution likened the defense’s argument to a scene from the movie Dumb and Dumber, where one character claims an IOU… “It’s as good as money.”
This is what happened in the cryptocurrency market this week. I will see you next week.
