Cryptocurrency Market News: Bitcoin Price Seesaws as Bitcoin .The price of bitcoin dropped to under $57,000 from over $64,500 last week, but by Saturday it had rebounded to above $64,000 once more. The spot bitcoin ETF market saw its biggest-ever outflows for a single day on Wednesday amid the price decline. Chang peng Zhao, the founder and former CEO of Binance, received a four-month prison sentence for breaking the Bank Secrecy Act while leading the cryptocurrency exchange. Bitcoin Price News Fintech startup Block said in a Q1 2024 shareholder letter that it will allocate 10% of its monthly gross income from bitcoin-related goods toward future bitcoin acquisitions.
The price of Bitcoin (BTC) dropped to about $57,000 on Wednesday from about $64,500 on Monday, but it made a strange week-long recovery. Last week, investors appeared to lose interest in spot bitcoin exchange-traded funds (ETFs), as seen by record-breaking net outflows on Wednesday.
In addition to the fluctuations in bitcoin prices, this past week saw the sentence of Changpeng Zhao, the founder and former CEO of Binance, and the announcement on Thursday by fintech company Block (SQ) that it will use a percentage of its earnings to purchase further bitcoin.
Bitcoin ETFs Post Record Outflows
Due to a record net outflow of $563.7 million on Wednesday amid price swings for the underlying crypto asset, investors in spot bitcoin ETFs closed the week with more money taken out than coming in.
On that day, a net $36.9 million left Blackrock’s iShares Bitcoin Trust (IBIT), which saw withdrawals for the first time since the fund’s trading debut on January 11. A record $191.1 million was taken out of Fidelity’s Wise Origin Bitcoin Fund (FBTC) in a single day last week.
These two ETFs have been the most well-liked choices up to now for novice investors looking to get into the spot bitcoin ETF market.
According to statistics from Farside Investors, Grayscale Bitcoin Trust (GBTC), the largest bitcoin ETF by assets and the subject of the biggest and most consistent outflows to date, saw its first net inflows on Friday.1 GBTC reported net inflows of $63 million on that day, but since January 11th, the fund has had net outflows of $17.46 billion. The fact that the spot bitcoin ETF still charges 1.5%, a significantly higher fee than other available options, was a major factor in the shock that accompanied the inflows into GBTC.2.
Some analysts argued that investors would not need to worry too much despite the withdrawals. Demand from spot bitcoin ETFs was given credit for the price surge in bitcoin earlier this year, but Coinbase experts laid out that this might not be the only factor affecting prices going forward.
In a commentary published on Friday, Coinbase analysts David Han and David Duong stated, “While this indicates a slowdown of capital inflows to the asset class via the ETF product, we think that ETF flows (while important) only drive a portion of BTC price discovery given the global and deeply liquid markets on
Former Binance CEO Gets Four Months in Prison
Yesterday, a Seattle court sentenced former Binance CEO Zhao to four months in prison. Zhao admitted to breaking the U.S. Bank Secrecy Act and resigned as the CEO of the biggest cryptocurrency exchange in the world in November. As a result of Binance’s guilty plea, the company had to pay almost $4.3 billion, making this one of the biggest corporate settlements in the history of criminal accusations against a CEO.
To put it mildly, Sam Bankman-Fried, the former CEO of FTX, received a 25-year prison sentence for misusing customer funds. Zhao makes a fairly modest statement. Naturally, Zhao was not accused of stealing customer funds, which was a significant difference between the two ca
Block To Put 10% of Profits from Bitcoin Products Into Bitcoin
The firm that created Cash App and Square, Block, announced that it will use ten percent of its monthly gross profit from its bitcoin-related venture to purchase further bitcoin.4
For comparison, Block’s first-quarter gross profit from bitcoin via Cash App increased to $80 million, a 59% year-over-year increase. For the period, Cash App’s revenue from bitcoin sales to consumers was $2.73 billion, a 26% increase over the same period the previous year. Bitcoin Price News Nevertheless, the corporation only devotes roughly 3% of its resources to bitcoin-related initiatives.
“We were one of the first public companies to put bitcoin on our balance sheet: we invested $220 million into bitcoin, and that investment has grown by approximately 160% to $573 million as of the end of the first quarter,” Jack Dorsey, CEO of Block, wrote in the letter.
What To Expect in the Markets This Week
Monday began with Robinhood (HOOD) revealing that it may be subject to enforcement action from the Securities and Exchange Commission (SEC) after receiving a Wells Notice over its cryptocurrency operations earlier in May. The SEC’s actions against Coin base (COIN) and Kraken last year for registering as broker-dealers and selling cryptocurrency tokens that it views as unregistered securities may be comparable to this one.
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