Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial. The year 2024 marks a watershed moment for financial markets globally as the U.S. Securities and Exchange Commission greenlit the first Bitcoin ( BTC ) spot ETF, a pivotal development signalling a shift toward greater institutional acceptance of digital assets. This milestone underscores the dramatic evolution of cryptocurrencies from niche speculative assets to cornerstone investment opportunities. You might also like: The promises of Bitcoin-backed loans for institutional portfolios | Opinion Major financial entities are increasingly leveraging digital assets for robust portfolio diversification and as a strategic hedge against inflationary pressures. As regulatory frameworks mature and economic necessities press, the integration of cryptocurrencies into traditional financial systems is not just a trend—it is redefining the very mechanics of how financial markets operate, setting the stage for a new era in digital finance. From scepticism to strategy: The institutional pivot to crypto Cryptocurrencies are increasingly recognized for their unique benefits as a diversification tool, offering low correlation with traditional financial assets. The 2024 Gemini Global State of Crypto Report underscores that institutional investors are now more bullish on digital assets than ever, viewing them as essential for portfolio diversification. Concurrently, amid global inflation spikes, cryptocurrencies like Bitcoin are being embraced as alternative hedges. According to Ernst & Young’s 2024 report , institutional investors are gravitating towards Bitcoin for its stability as a store of value, preferring it over traditional assets like gold during inflationary periods. This sentiment is reinforced by data showing that nearly 94% of institutional investors acknowledge the long-term potential of cryptocurrencies and blockchain technology, with 55% planning to increase their digital asset holdings within the next two to three years. As regulatory frameworks continue to evolve, institutional confidence is strengthening. Recent developments, such as the EU’s Markets in Crypto-Assets Regulation , have created a more structured and secure investment environment, reducing the operational risks previously associated with crypto assets. Additionally, the recent U.S. presidential election, which saw the reelection of Donald Trump, is poised to influence the regulatory landscape further. His administration’s historically light regulatory approach to cryptocurrencies may boost investor confidence and foster an environment more conducive to blockchain innovations. This shift could ease the integration of cryptocurrencies into traditional financial systems, marking a significant step toward broader governmental acceptance of digital assets. Moreover, the establishment of dedicated crypto custody solutions by major financial institutions like BNY Mellon and Goldman Sachs highlights the sector’s ongoing maturation, bringing it closer in line with traditional financial operations. Institutional impact: Reshaping market dynamics Institutional investments have substantially enhanced market liquidity in the cryptocurrency sector. According to a 2024 report by Cointribune, institutional inflows into cryptocurrencies reached unprecedented levels, with $14.9 billion entering the market, surpassing the prior record set in 2021. BlackRock’s launch of a blockchain-backed ETF has played a pivotal role in this surge, enhancing liquidity by providing additional entry points for institutional funds and mitigating market volatility. This move by BlackRock has facilitated greater entry points for institutional money, significantly reducing market volatility and stabilizing price fluctuations. Alongside improvements in market liquidity, the influx of institutional investments has also raised the bar for compliance and security within the cryptocurrency sector. The professionalization of the market is exemplified by major banks like JPMorgan, which has introduced a Cryptocurrency Exposure Basket. By offering these innovative products, JPMorgan and similar institutions have established robust custody and security solutions that align with the regulatory standards expected in traditional finance. This advancement is critical in enhancing the trust and safety of investing in digital assets. Moreover, the increasing demand from institutional investors has catalyzed innovation within the financial product landscape. Financial giants such as Goldman Sachs have responded to this demand by expanding their offerings to include Bitcoin futures trading. This development is significant as it represents a broader acceptance of cryptocurrencies within the fabric of traditional banking services, allowing established financial institutions to meet the evolving needs of their clients and incorporate digital assets into their broader investment strategies. Together, these developments—enhanced market liquidity, elevated compliance and security standards, and the proliferation of innovative financial products—illustrate the profound impact institutional investors have on the cryptocurrency landscape. As these trends continue to evolve, they are set to reshape the financial markets, making cryptocurrencies a permanent fixture in the investment portfolios of mainstream financial institutions. Institutional investors: Shaping the future of crypto markets While institutional capital introduces challenges like regulatory inconsistencies, cybersecurity vulnerabilities, and environmental concerns, these issues are catalysts for progress rather than obstacles. Addressing regulatory divergence is driving international efforts to create more unified frameworks, while advancements in cybersecurity are ensuring that digital assets are increasingly protected against evolving threats. Simultaneously, innovations in sustainable blockchain technologies are addressing environmental concerns, aligning crypto investments with ESG priorities and showcasing the industry’s commitment to responsible growth. These strides not only mitigate the challenges but also unlock new opportunities, such as the expansion of DeFi and asset tokenization. Institutional investors are playing a pivotal role in refining the cryptocurrency ecosystem. They are transforming digital assets into integral components of the global financial system, redefining investment paradigms, and heralding a future of greater diversification and stability in financial markets. Read more: Mass crypto adoption requires transparency and education | Opinion Author: Vineet Luthra Vineet Luthra is the co-founder and head of product at Hyblock Capital, a leading crypto trading and analytics platform. With extensive expertise in trading software within the finance and hedge fund space, Vineet has worked at Citigroup and Quantifi, specializing in institutional technology solutions and institutional software sales. Transitioning to the crypto industry, Vineet has adapted to the rapidly evolving landscape of crypto technology. He has a deep understanding of the innovative data sets and products emerging in this space, as well as the unique challenges faced by technology vendors. His extensive background in institutional software sales and product management has enabled him to effectively build, scale, and drive growth for Hyblock Capital. Under his leadership, Hyblock Capital has delivered exceptional value to its customers and established a strong market presence. Vineet’s key responsibilities at Hyblock include sales, strategy, and product management, with a particular focus on customer-facing features and enhancements. His expertise in trading technology and institutional sales, coupled with his insights into the crypto technology landscape, allows him to understand and address the needs of both retail and institutional users seeking advanced trading solutions.
Institutional investors are transforming digital assets into integral components of the global financial system, redefining investment paradigms.
The post Argentina Freezes $3.5 Million in USDT Linked to Rainbowex Pyramid Scheme appeared first on Coinpedia Fintech News Argentina’s justice system has ordered Tether to freeze over $3.5 million in USDT linked to Rainbowex, a suspected pyramid scheme under investigation. The freeze follows a large-scale operation that involved 22 search warrants and the detention of 10 individuals. Rainbowex, which misled investors with promises of high rewards through crypto transactions, was found to operate in a closed-loop system, preventing withdrawals. The Argentine authorities received technical support from exchanges like Lemon and Chainalysis in their efforts. The investigation continues, with international warrants issued for two individuals involved.
How long is correction of Binance Coin (BNB) going to last?
The post eToro Reveals 37% of UAE Retail Investors Are Bullish on Crypto for 2025 appeared first on Coinpedia Fintech News From 2023 to June 2024, the UAE experienced a huge $34 billion surge in cryptocurrency investments, a 42% increase from the year before. Bitcoin remains a major player, making up 19% of the market, while stablecoins like Tether dominate with 51%. As of now, UAE has boosted $40 billion in Bitcoin holdings which shows its Bitcoin love. Moreover, initiatives like the opening crypto center in Dubai have supported blockchain startups, with an aim to grow its Bitcoin reserves in the country. Over 30% of UAE investors plan to increase crypto investments in 2025 A survey by mobile investment app eToro found that 37% of UAE retail investors aim to boost their cryptocurrency investments in 2025, according to Cointelegraph. Among 1,000 investors, 40% plan to increase… — CoinNess Global (@CoinnessGL) December 24, 2024 Adding to the rising crypto interest, a recent survey by eToro has revealed exciting plans for retail investors in the UAE. The study, which included 1,000 participants, shows that 37% of UAE investors are ready to increase their investments in cryptocurrencies in 2025. This reflects a growing confidence in digital assets as a key part of financial strategies. While crypto is gaining traction, it’s not the only focus. About 40% of investors plan to divert their portfolios to traditional assets like stocks, bonds, and commodities. Real estate remains another popular choice, with 38% eyeing to invest in properties. How They Plan to Achieve It UAE investors are taking proactive steps to meet their financial goals. Over half (51%) plan to save more and invest regularly, while 41% are focusing on better budget tracking. Some are adopting economic habits, like cutting back on dining out, and 32% even plan to start a side business or part-time work for extra income. Plus, 28% are considering switching careers to boost their earnings. More Than Just Money The survey highlights that UAE investors are also keen on personal growth. Around 41% are prioritizing self-improvement, while 34% are focusing on health and well-being. Popular goals include staying fit, advancing professionally, and strengthening family and social bonds. George Naddaf, eToro’s regional manager, called these resolutions a sign of a forward-thinking mindset in the UAE. He noted that while people want financial security they are also adaptable to new technological changes. This shows how smart planning can lead the UAE to become the top crypto hub in the world in the year 2025. Crypto Impact In the meanwhile, the crypto market is bouncing back after a two-day dip, with the market cap increasing by 2.48% to $3.37 trillion. Despite a 42.36% drop in daily trading volumes to $207.62 billion, market sentiment stays optimistic, as shown by the Fear & Greed Index, which sits at a “Greed” score of 62. While Bitcoin is trading at $97,252.93, with a minor gain of 0.11% over the past 24 hours. Bitcoin is a trillion-dollar industry and at present more profitable than traditional financing methods hence all the countries are eyeing this industry to retain their crypto investors.
In a recent update, MicroStrategy’s founder, Michael Saylor, revealed that the company achieved a net income of 3,177 BTC through its financial operations over the past week. This impressive performance
The post North Korea Linked to $305M Hack of Japanese Crypto Exchange DMM appeared first on Coinpedia Fintech News North Korean hackers were behind the May 2024 theft of over 4,500 BTC from Japan’s DMM crypto exchange, resulting in a $305 million loss. U.S. and Japanese authorities revealed that the attack was affiliated with the TraderTraitor group, known for social engineering tactics. The hackers gained access to crypto wallet company Ginco’s communications system through a malicious Python script sent via LinkedIn. They later intercepted a legitimate transaction request from a DMM employee, leading to the theft. North Korea has been responsible for over half of crypto thefts in 2024, totaling $1.34 billion.
A known crypto millionaire, active investor, trader, and Ethereum ( ETH ) supporter continues to capitulate from a losing Ethereum-Bitcoin ( BTC ) trade. James Fickel is among the richest cryptocurrency investors and a recognized entrepreneur in longevity research as the Amaranth Foundation’s founder. In its most recent activity, Fickel swapped another 6,500 ETH for 235.6 wBTC in the Ethereum blockchain. This swap, currently worth around $22 million, is a partial close of the millionaire’s ETH long position against BTC. According to SpotOnChain’ s post , Amaranth’s founder has already lost approximately 22,000 ETH with this trade, worth over $70 million. His wBTC activity dates back from October 2023, supposedly when Fickel started his trades against the leading cryptocurrency. Previously, Finbold reported two partial closes of the crypto millionaire’s Ether-Bitcoin trade – one in August and the other in September . The first happened as decentralized finance (DeFi) investors considered removing wBTC from Aave ( AAVE ) following BitGo’s partnership with Justin Sun. wBTC In/Out flow of James Fickel’s Wallet 0xd85 since October 30, 2023. Source: SpotOnChain James Fickel’s ETH-wBTC position and trades on Aave Essentially, James Fickel is using a DeFi strategy to open long and short positions on spot, without using derivative contracts. Through lending platforms like Aave, investors can supply digital assets to smart contract pools. Then, use these supplied assets as collateral to borrow other cryptocurrencies from other decentralized pools. Therefore, an investor looking to long Ethereum against Bitcoin can supply ETH, use it as collateral to borrow wBTC, and use the borrowed tokens to buy more ETH in decentralized exchanges like Uniswap ( UNI ). If the ETH/BTC exchange rate increases, the trader can swap the purchased amount of ETH for wBTC, repay the debt plus the compounded interest rates, and pocket the profit in their preferred asset. In fact, the millionaire’s position currently has supplied 78,527.95 ETH, worth $317.11 million, according to Arkham Intelligence . With this collateral, Fickel holds a debt of 575.29 wBTC, worth $54.17 million, which he has been repaying. James Fickel’s Borrows & Loans. Source: Arkham Intelligence Ethereum vs. Bitcoin price, trades, and ETFs James Fickel is not the only crypto millionaire adjusting his Ethereum positions from a bearish or more cautious stance. The crypto-native trading firm Cumberland recently deposited $55 million worth of 16,201 ETH to Coinbase , as Lookonchain reported today. Cumberland deposited 16,201 $ETH ($55M) to #Coinbase 20 mins ago. https://t.co/ll57RHO7aa pic.twitter.com/k0YBDg3l1M — Lookonchain (@lookonchain) December 24, 2024 However, Wall Street traditional finance investors appear to be more bullish on ETH than on BTC. This is suggested by the two cryptocurrencies exchange-traded funds ( ETFs ) flows on Monday, with Ethereum leading with increased demand. While “ETH ETFs had a net inflow of $130.8 million,” wrote Sassal on X, “BTC ETFs had a net outflow of $226.5 million.” This highlights the unpredictable and volatile dynamics in the crypto market, with millionaires placing their bets on future price action. Featured image from Shutterstock. The post Crypto millionaire sells more Ethereum for Bitcoin in a $70M-losing trade appeared first on Finbold .
DeFi losses dropped 40% in 2024 as advanced security measures strengthened protocols, while CeFi breaches surged to $694M.
Bitcoin experienced a highly volatile trading session yesterday, with prices swinging between $92,300 and $96,420 throughout the day. The cryptocurrency now hovers near the $93,000 mark, struggling to establish a clear direction in the short term. As market participants await decisive action, uncertainty looms over whether Bitcoin will sustain its bullish structure or face a deeper correction. Related Reading: If History Repeats Dogecoin Has Potential For A Parabolic Rally – Details CryptoQuant analyst Axel Adler recently shared valuable insights, highlighting a significant trend among short-term holders (STH). According to Adler, these investors continue to sell their coins at high-profit margins, capitalizing on Bitcoin’s recent upward momentum. While profit-taking is a natural part of market cycles, the lack of consistent demand to absorb this selling pressure could challenge Bitcoin’s price stability. If demand fails to match the pace of active profit-taking, a local correction could occur, potentially leading to a decline in Bitcoin’s price. This delicate balance between profit-taking and market demand makes the coming days critical for determining Bitcoin’s next move. Will buyers step in to support the price, or will selling pressure lead to a deeper retrace? Investors and analysts are watching closely as Bitcoin navigates this pivotal moment. Bitcoin Demand Levels Responding Bitcoin has faced days of intense volatility as it struggles to break above the $100,000 psychological barrier while holding firm above the $92,000 support. The market remains in a state of flux, with investors and analysts closely monitoring Bitcoin’s next move. Despite the uncertainty, Bitcoin’s resilience at these key levels highlights the ongoing tug-of-war between bullish and bearish forces. Top analyst Axel Adler recently shared an insightful analysis on X, shedding light on the behavior of short-term holders (STHs). According to Adler, STHs are actively selling their coins at high profit margins, taking advantage of the recent price surges. While profit-taking is a normal part of market cycles, a lack of consistent demand to counter this selling pressure could lead to a local correction and a potential price decline. However, in the event of a price drop, STHs are unlikely to continue selling their holdings, as selling at a loss in a bull market is often considered an unwise move. This dynamic could provide Bitcoin with the breathing room needed to stabilize at its key support levels, currently around the $90,000 mark. Related Reading: Solana Holds Weekly Support At $180 – Analyst Expects $330 Mid-Term If Bitcoin successfully holds above $90,000, a period of consolidation around this level could create the foundation for the next rally, potentially propelling BTC to new all-time highs. The coming days will be critical in determining whether Bitcoin continues its ascent or faces a temporary setback. BTC Holding Above $90K Bitcoin is trading at $93,800 after enduring days of selling pressure and market uncertainty. Despite holding above key support at $92,000, the loss of both the 4-hour 200 moving average (MA) and exponential moving average (EMA) is a short-term bearish signal. These indicators, often viewed as gauges of market momentum, suggest that Bitcoin may need additional demand to regain upward traction. For bulls to reclaim control and ignite a fresh rally, Bitcoin must recover these critical levels. The 4-hour 200 MA at $96,500 and the 4-hour 200 EMA at $98,500 are essential hurdles. Successfully pushing above these thresholds and securing a decisive close beyond them would confirm renewed bullish momentum. Related Reading: Ethereum Whales Bought $1 Billion ETH In The Past 96 Hours – Details If Bitcoin achieves this feat, the stage could be set for a massive rally into price discovery, breaking through psychological barriers like $100,000 and paving the way for new all-time highs. On the flip side, failing to reclaim these indicators might signal extended consolidation or a potential retest of lower support levels. Featured image from Dall-E, chart from TradingView