Here are the latest updates from the crypto world.
Bitcoin BTC$100,488 experienced a significant drop last week, plunging from $69,000 to $60,800 — an approximate 18% decrease from this month’s record high of $73,800. This decline was partly driven by outflows from the 11 newly launched exchange-traded funds (ETFs) for Bitcoin. Between March 18-21, a total of $836 million was withdrawn from these funds, according to data from Farside Investors.
Are new investors getting nervous? How likely are they to keep holding onto Bitcoin if the downward trend continues? Notably, this is the first time Bitcoin has reached a new all-time high before — rather than after — its halving, which is set to occur in April.
3 Traders And Their Thoughts-
Lucas Kiely, Chief Investment Officer for Yield App
Since the introduction of ETFs, Bitcoin's movements have been closely tied to the equity markets. At certain times of the day, there are inevitable surges in liquidity and price activity.
For instance, 4 p.m. in London, FX Fix: Cryptocurrency funding resets align perfectly here.
9:30 a.m. in New York: U.S. cash equity markets open, and the game begins.
5 p.m. London: European traders head home, while New York enjoys lunch.
4 p.m. in New York: U.S. cash equity markets close, creating another opportunity.
These moments have been our golden hours for capturing big BTC moves and pocketing tidy profits.
2. Michael van de Poppe, CEO and founder of MN Trading Consultancy
The recent drop in ETF investments is probably a result of the latest Federal Reserve (FOMC) meeting, as markets and institutions usually become risk-averse before FOMC meetings. Moreover, the Bank of Japan has begun raising its interest rates, negatively affecting risk-on markets. This is typical. In the end, this event is unlikely to have any impact on the markets. The initial buyers of the ETF are expected to hold onto it for a long time, but as Bitcoin's value increases, the initial interest in the ETFs may diminish.
3. Chris Newhouse, DeFi analyst at Cumberland Labs
I believe people are aware of the instability of digital assets due to previous news reports. Those investing in ETFs are seeking exposure to this asset class.
Today's buyers should be aware of distinguishing between purchasing due to 'FOMO' (fear of missing out) and buying based on long-term demand. Recognize that short-term volatility will persist, and consider whether you're entering an ETF to trade on this volatility or to invest for the long haul. If it's the former, be prepared to actively manage timing and momentum. If it's the latter, remember that dollar-cost averaging (DCA) is beneficial.
Activist investor Starboard Value has acquired a “significant position” in Bitcoin miner Riot Platforms, according to The Wall Street Journal. While the financial specifics were not disclosed, the announcement caused Riot's shares to rise.
Sources cited by the WSJ claim that Starboard Value is pushing Riot to allocate some of its Bitcoin mining capacity to hyperscalers — large data center users — which have increased significantly due to the artificial intelligence surge.
The newspaper also mentioned a statement from Riot confirming discussions and quoted Riot as saying: “We are committed to creating value for all shareholders, and we look forward to constructive dialogue with Starboard on ways to achieve this shared goal.”
Starboard's website states that the firm “seeks to invest in deeply undervalued companies and actively engage with management teams and boards of directors to identify and execute on opportunities to unlock value for the benefit of all shareholders.”
The Arbitrum Foundation and Ubisoft, a major French gaming company, have revealed Dec. 18 as the release date for Captain Laserhawk: The G.A.M.E., a Web3-enabled top-down shooter.
The game takes place in the Ubisoft gaming universe and includes characters from games such as Far Cry: Blood Dragon, Rayman, Assassin’s Creed, Beyond Good and Evil, The Crew, Rainbow Six, Splinter Cell, and Watch Dogs. Captain Laserhawk’s gameplay merges traditional top-down shooter elements with competitive leaderboards and Web3 features.
In terms of story, it is a media spinoff of the 2023 Netflix series Captain Laserhawk: A Blood Dragon Remix. This title is part of Ubisoft's lineup of games that delve into Web3, blockchain, and non-fungible tokens (NFTs).