Calvin Tanguma

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[Calvin Tanguma @CalvinTang20009]

MicroStrategy adds $620m Bitcoin to massive BTC stash

Michael Saylor’s MicroStrategy now holds some 189,150 Bitcoin worth over $8 billion as of Dec. 27.

MicroStrategy bought an additional 14,620 Bitcoin (BTC) at an average price of $42,110 per coin, according to Michael Saylor, who founded the company back in 1989. Saylor’s firm spent $615.7 million acquiring its latest BTC purchase.

The company started buying BTC in 2020 following a global pandemic as Saylor sought to mitigate what he called “the eroding threat of inflation”. MicroStrategy has injected roughly $5.9 billion into Bitcoin since then.

Saylor’s investment strategy means the company has made around $2 billion in profits on its BTC portfolio by acquiring crypto’s top token through a mix of cash, debt, and equity. Investing in BTC has also been a boon for MicroStrategy’s stock. According to Google Finance, the company’s stock gained over 300% in 2023 alone and traded for $603.89 at press time.

The decision to double down on Bitcoin coincides with multiple applications from Wall Street stalwarts and crypto-native asset managers seeking approval for a spot BTC ETF, an exchange-traded fund that would hold the crypto and offer Bitcoin exposure to American investors.

13 filers including BlackRock, Hashdex, and ARK 21Shares submitted bids with the U.S. Securities and Exchange Commission (SEC). It is unknown if the SEC will approve these applications, although the watchdog has engaged firms concerning their filings, which has prompted amendments and fueled speculation that spot BTC ETFs may finally be approved in America.

Saylor opined that spot Bitcoin ETFs could become a watershed moment for traditional finance and the crypto industry if approvals arrive. ETF experts and speculators alike believe a decision will be made in early January 2024, about three months before BTC’s halving event in April.

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Could GBTC’s shrinking discount turn to a premium?

Last week, the discount at which Grayscale Bitcoin Trust shares trade compared to its net asset value closed at a level unseen since 2021.

But it is unlikely to get much lower than its current 8% discount, some segment observers say. Its shares trading at a premium are even less probable, they agree.

Eligible shares of GBTC are quoted on the OTC Markets Group. The value at which those are sold has fluctuated in the form of premiums and discounts to the value of bitcoin that it holds.

The shares haven’t traded at a premium since February 2021, according to https://t.co/Y7JhQsdiLz. And the discount was as steep as 46% in January, the data shows.

But the discount shrunk to roughly 8% on Friday, reflecting increased investor confidence in the potential approval of a bitcoin spot ETF. Following its court win against the US Securities and Exchange Commission, Grayscale is working on converting GBTC to an ETF �� a move the firm has said would essentially get rid of the current discount on its shares.

The discount has historically moved as bitcoin’s price has.

A dip in price to about $35,700 last week — as news unfolded about the guilty pleas of Binance and its CEO — was offset by clarity that such regulatory action against the exchange had been resolved, Fineqia International analyst Matteo Greco said in a Monday research note. This led to what he called “renewed stability in the market.”

Bitcoin’s (BTC) price was at about $37,500 around 12:00 pm ET Monday — down 0.4% in the previous 24 hours.

“Any news related to settlements between law enforcement and digital asset service providers plays a vital role in bridging traditional finance and digital assets, increasing the likelihood of capital inflow from traditional finance investors,” Greco added in the note

[Calvin Tanguma @CalvinTang20009]

Teng’s Commitments and Future Direction

The newly appointed CEO, Richard Teng, assumed the mantle immediately. He pledged to lead Binance into its next development phase while prioritizing security, transparency, compliance, and expansion. Teng’s extensive thirty years of experience in financial services and regulation positioned him as a figure with the expertise to navigate the challenges facing Binance.

Despite stepping down as CEO, CZ assured stakeholders of his continued involvement. He expressed readiness to provide consultations when needed, leveraging his stakeholder status and deep understanding of the company’s history. Additionally, he outlined his plans for sabbatical and passive investments in blockchain, AI, biotech, and DeFi startups, signalling a shift in focus while denying allegations of financial misconduct.

Richard Teng’s vision as CEO emphasized the importance of maintaining financial stability, security, and safety at Binance. He highlighted the need for regulatory compliance with global regulations and collaboration with authorities. Notably, he underlined the necessity of adhering to U.S. laws when serving U.S. customers, aligning with the position of the U.S. government.

The Binance case encompasses a series of legal actions by regulatory bodies, the attempted dismissal of the CFTC lawsuit based on jurisdictional claims, the SEC’s additional allegations, CZ’s unexpected resignation, the appointment of Richard Teng as CEO, and the new leadership’s commitment to compliance and collaboration.

These developments have far-reaching implications for the world’s largest cryptocurrency exchange and the broader crypto industry. The market reacted with several sharp downfalls, but recovered almost fully. It seems that the bullish trend is gaining momentum despite a lot of negative regulation-related cases.

#CryptoNews #Binance

[Calvin Tanguma @CalvinTang20009]

Binance's Jurisdiction Battle: CZ Steps Down, What’s Next?

In March 2023, the U.S. Commodity Futures Trading Commission (CFTC) initiated legal proceedings against Binance, its CEO Changpeng Zhao (CZ), and former Chief Compliance Officer Samuel Lim. The CFTC alleged that Binance operated an “illegal” exchange and maintained a “sham” compliance program, citing violations of the Commodity Exchange Act and other federal regulations. This marked the beginning of a legal battle that would shape the future of the world’s largest cryptocurrency exchange.

Binance responded by seeking the dismissal of the CFTC lawsuit. One key argument put forth by Binance was its jurisdictional claim. Despite CZ being a Canadian citizen, Binance’s parent company is in the Cayman Islands. Binance contended that since its primary clientele were non-U.S. residents and businesses, the CFTC lacked jurisdiction over their operations. To support this claim, Binance cited a precedent from 2007 stating that “United States law governs domestically but does not rule the world.”

#CryptoNews #Binance

[Calvin Tanguma @CalvinTang20009]

Another Drop In BTC in 2023 and 2024 ?

If Bitcoin fails to rise above the $37,750 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $37,200 level.

The next major support is $37,000 and the 100 hourly Simple moving average. The first key support is at $36,750 or the 50% Fib retracement level of the upward move from the $35,645 swing low to the $37,848 high. If there is a move below $36,750, there is a risk of more downsides. In the stated case, the price could drop toward the $36,000 support in the near term. The next key support or target could be $35,650.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $37,000, followed by $36,750.

Major Resistance Levels – $37,750, $38,000, and $38,800.

#Bitcoin #CryptoNews

[Calvin Tanguma @CalvinTang20009]

Prepare for Bitcoin ETF Approval

Binance has now turned over a new leaf, and an appointed auditor will continuously report the exchange’s activities to the US government for three years. This means Binance is now fully compliant with the US. A new era begins without speculation, positions against investors, and the risk of KYC violations. This also puts pressure on the SEC for the approval of a spot Bitcoin ETF. Gensler previously highlighted the “excessive market share on unregulated exchanges” in previous rejections. If the volume king exchange (Binance) has been tamed (according to the US), ETF approval may come now.

Bitcoin futures contracts should normally trade with a 5% premium. However, the current rate of 8% reflects the excessive demand for long positions. Although this level is lower than the 11.5% seen in mid-November, it highlights strong optimism regarding ETF approval.

At the time of writing, the Bitcoin price is at $37,500, and if Binance does not experience a surprise bank run and drag the market into chaos (despite the efforts of the US), 2024 could be a real bull market.

Disclaimer: The information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and associated risks of cryptocurrencies and conduct their own research before making any transactions.

#Binance #Bitcoin #CryptoNews

[Calvin Tanguma @CalvinTang20009]

Good News for Crypto Investors: Binance Case Dismissed and Bitcoin ETF Approval Imminent

Crypto investors who experienced challenging times in 2022 received some great news, especially in the second half of this year. It all started with BlackRock entering the crypto market and other trillion-dollar companies following its lead. Then came the XRP Coin victory and ETH ETF applications. Now, fears of a crypto crash due to the Binance case have been eliminated.

Unless there is a major surprise, the question should be when will it reach $40,000. The Binance lawsuit, which has been discussed for months, was handled in such a way by the US that it prevented massive losses for investors worldwide. If there had been no settlement and harsh measures, including global sanctions, the potential bank run could have even toppled a powerful exchange like Binance.

Imagine the chaos if Binance users were subjected to OFAC sanctions. Indeed, this was done for the Tornado Cash mixer, and most Ethereum validators still comply with these restrictions. The US government prepared an indictment against Binance and Changpeng Zhao in the state of Washington on November 14th, but the documents were unsealed on November 21st. After admitting the charges, CZ stepped down from Binance management as part of the agreement. As a result, the incident was resolved with a $4.36 billion fine.

#Bitcoin #CryptoNews

[Calvin Tanguma @CalvinTang20009]

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