Bitcoin Bounces Back to $70,000 Amid 2024 High Volatility: CNBC Crypto World
Bitcoin is surging, reclaiming $70,000 within striking distance. FTX has found a buyer for part of its stake in AI startup anthropic, while Chris Kyper of fidelity digital assets shares his 2024 outlook for Bitcoin ETFs. Welcome to CNBCโs Crypto World, where the market is roaring back over the weekend and starting the week in the green. Bitcoin climbed over 6%, trading just under $70,000 by noon Eastern, with ether rising 5.2% and solana jumping a staggering 99.4%. However, volatility remains high at 224, even as the cryptocurrency rebounds from its recent dip back to $63,000.
US Civil Fraud Trial Against Terraform Labs Co-Founder Begins
The US civil fraud trial against Terraform Labs co-founder Do Kwan has kicked off in New York. The SEC will present its case alleging that Doan and Terraform Labs defrauded investors by marketing crypto securities in the form of Luna. The subsequent collapse of Luna led to significant losses for investors, amounting to $40 billion. Although Doan is currently in Montenegro, awaiting extradition to either the US or South Korea, the trial continues in his absence. The countryโs Supreme Court has ordered his return to South Korea, but a challenge from a lower court has temporarily stalled the process.
- US Civil fraud trial against Terraform Labโs co-founder Do Kwan commences
- SEC accuses Doan and Terraform Labs of defrauding investors with Luna
- Losses estimated at $40 billion from Luna collapse
- Doan remains in Montenegro, awaiting extradition
Nigeria Files Tax Evasion Charges Against Binance Executive
In Nigeria, a top Binance executive has escaped custody as the government files tax evasion charges against the crypto exchange. Nigeriaโs Federal Inland Revenue Service has lodged four new charges, including non-payment of value-added tax (VAT) and failure to submit tax returns. While two senior executives were initially detained, one has reportedly escaped. Binance is cooperating with Nigerian authorities to resolve the situation swiftly. These developments mark a significant legal challenge for the exchange in the African nation.
- Nigerian government files tax evasion charges against Binance executive
- Charges include non-payment of VAT and failure to submit tax returns
- Two senior executives taken into custody, one escapes
- Binance collaborates with Nigerian authorities for resolution
FTX Finds Buyer for Stake in AI Startup Anthropix
FTX has successfully offloaded its stake in AI startup anthropic, acquired three years ago for $500 million. The stake is now valued at over a billion dollars, with two dozen buyers purchasing most of the shares for around $880 million. Buyers include the United Arab Emirates and Jane Street, a former employer of FTXโs founder, Sam Bankman-Fried. This divestiture plays a crucial role in FTXโs efforts to exit bankruptcy proceedings, ensuring the firm can fulfill its financial obligations to customers and stakeholders.
- FTX sells stake in AI startup anthropic for over $880 million
- Acquired the stake for $500 million three years ago
- Buyers include United Arab Emirates and Jane Street
- Deal facilitates FTXโs exit from bankruptcy
Christopher Kyper of Fidelity Discusses 2024 Bitcoin Outlook
Christopher Kyper, the director of research for Fidelity Digital Assets, shares insights on Bitcoinโs volatility and his 2024 forecast for spot Bitcoin ETFs. Highlighting the recent surge in prices, Kyper discusses the impact of new exchange-traded products on demand. He notes a significant influx of capital into Bitcoin ETFs, contrary to expectations of a gradual uptake. Kyper predicts continued market growth and adoption, driven by increased interest from both retail and institutional investors.
- Fidelityโs Christopher Kyper discusses Bitcoin volatility and ETFs
- New exchange-traded products boost demand for crypto
- Surprising influx of capital into Bitcoin ETFs drives prices up
- Kyper anticipates sustained market growth and adoption
Corporate Adoption of Bitcoin as a Store of Value
Kyper also addresses the trend of corporations holding Bitcoin on their balance sheets, citing examples such as Tesla and MicroStrategy. He notes the potential benefits for corporations seeking uncorrelated assets as store of value in the face of inflation. Highlighting the diversification and hedging opportunities that Bitcoin offers, Kyper views corporate adoption as a strategic move to protect purchasing power and enhance long-term returns. The growing interest from institutions in allocating larger portions of their portfolios to Bitcoin reflects a shift towards alternative assets.
- Corporate adoption of Bitcoin as a strategic move
- Bitcoin seen as an uncorrelated store of value
- Diversification and hedging benefits for corporations
- Growing trend of institutions allocating larger portions to Bitcoin
Hot Take: Embracing Bitcoinโs Growth and Potential
Bitcoinโs resurgence to $70,000 marks a significant milestone in the cryptocurrency market. With ongoing volatility and regulatory challenges, the industry faces both risks and opportunities. As institutions and corporations warm up to Bitcoin as a store of value and investment asset, the landscape continues to evolve. Embracing the growth and potential of Bitcoin requires a nuanced understanding of its dynamics and implications. Stay tuned for more updates and insights on CNBCโs Crypto World.
Nathan Coben emerges as an alchemist of the crypto world, seamlessly blending the roles of analyst, researcher, and editorial maestro. In the intricate tapestry of digital currencies, Nathan navigates with a compass of insight, crafting pathways of understanding that captivate minds across the spectrum. His flair for deciphering the enigmatic threads of cryptocurrency intricacies is an art he weaves into his editorial tapestry, transforming complexity into a harmonious composition of clarity. As a luminary for both the intrepid traveler and the curious wanderer within the crypto realms, Nathan’s narratives stand as guiding stars amidst the ever-shifting constellations of digital assets. With meticulous craftsmanship, he crafts a narrative that enriches the evolving chronicle of the crypto cosmos.