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3 Weeks In, and Traders Are Like "Meh"
Yo, listen up, crypto crew! Three weeks have passed since the much-anticipated launch of that Bitcoin ETF, and guess what? The excitement level is, well, let's just say it's about as thrilling as watching paint dry.
Traders are just kinda shrugging their shoulders and saying, "Meh, been there, done that." The hype surrounding the ETF has fizzled out quicker than a wet firecracker.
Looks like the market's not exactly tripping over itself to embrace this revolutionary new financial instrument. Could it be that the ETF's arrival was met with a collective yawn from the crypto community?
So, dear traders, if you're expecting this ETF to be the next big game-changer, you might wanna lower those expectations. It seems like the crypto market's got its own unique rhythm, and it's not always in sync with the traditional financial world.
But hey, who knows? Maybe it's just a matter of time before this ETF starts making waves. Until then, let's all just chill and enjoy the ride.
🚀 Ottochain's Grand Airdrop: A 50% Airdrop to show its commitment to supporting community based governance
🙌 we're thrilled to unveil the LARGEST airdrop of 2023! We're sharing 50% of Ottochain's total tokens as a heartfelt gesture to the entire web3 community and supporting ecosystems.
🌟 Airdrop Allocation Breakdown: Sharing the Wealth 🌟
Despite being 2000 miles away from my PS5, I can still enjoy #GodOfWarRagnarokValhalla with the PS Portal. 🔥
I honestly love this thing! 💙
Will you be playing the new God of War DLC today? 🤔
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Gemini creditors revolt over ‘brutal’ Bitcoin slashing reorg plan
Gemini Earn creditors oppose DCG’s plan: The article reports that the creditors of Gemini Earn, a program that allowed users to lend crypto to Genesis Global Capital, are unhappy with the proposed reorganization plan by Digital Currency Group (DCG), the parent company of Genesis1.
DCG’s plan offers lower recovery rates: The article claims that DCG’s plan would only give creditors a payout equal to their crypto balances as of Jan. 19, 2023, the date that Genesis filed for bankruptcy. This would result in much lower recovery rates than the current market value of their crypto1.
Gemini sues DCG and Genesis for fraud: The article mentions that Gemini Trust, the operator of Gemini Earn, filed a lawsuit against DCG and its CEO Barry Silbert in June, accusing them of fraud and breach of contract. Gemini alleges that DCG and Genesis misled them about the risks and safeguards of the lending program1.
SEC sues Gemini and Genesis for selling unregistered securities: The article also notes that the U.S. Securities and Exchange Commission (SEC) filed a civil suit against Gemini and Genesis in January for allegedly selling unregistered securities through the Earn program. Gemini and Genesis have moved to dismiss the case1.
#Cryptocurency #Bitcoin
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Bitcoin derivatives data shows room for BTC price to move higher this week
Bitcoin (BTC) rallied to a 2023 high at $23,100 and the move followed a notable recovery in traditional markets, especially the tech-heavy Nasdaq Composite Index, which gained 2.9% on Jan. 20. Economic data continues to boost investors’ hope that the United States Federal Reserve will reduce the pace and length of interest rate hikes.
For instance, sales of previously owned homes fell 1.5% in December, the 11th consecutive decline after high mortgage rates in the United States severely impacted demand. On Jan. 20, Google announced that it would lay off 12,000 workers, more than 6% of its global workforce.
The bad news continues to trigger buying activity on risk assets, but Dubravko Lakos-Bujas, chief U.S. equity strategist at JPMorgan, expects weaker earnings guidance to “put downward pressure" on the stock market.
The fear of recession increased on Jan. 20 after Federal Reserve Governor Christopher Waller said that a soft recession should be tolerated if it meant bringing inflation down.
Some analysts have pegged Bitcoin’s gains to a subsidiary of Digital Currency Group filing for Chapter 11 bankruptcy protection — allowing the troubled Genesis Capital to seek the reorganization of debts and its business activities.
But, more importantly, the move decreases the risk of a fire sale on Grayscale Investments assets, including the $13.3 billion trust fund Grayscale GBTC.
Let’s look at derivatives metrics to understand better how professional traders are positioned in the current market conditions.
Bitcoin margin longs dropped after the pump to $21,000
Margin markets provide insight into how professional traders are positioned because it allows investors to borrow cryptocurrency to leverage their positions.
For example, one can increase exposure by borrowing stablecoins to buy Bitcoin.
On the other hand, Bitcoin borrowers can only short the cryptocurrency as they bet on its price declining.
Unlike futures contracts, the balance between margin longs and shorts isn’t always matched.