Fear The Fed 😰
Fear The Fed 😰
Will the Fed give clear signals on rate cuts? Spot ETH ETF may have to wait. Alexey Pertsev accused of laundering $1.2B. Saudi Arabia eyes $40B AI investment. BlackRock's $100M BUIDL tokenised fund.
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Let's start with a good thought.
So, yes. Bitcoin just took a nasty tumble.
The price went down around 18% from its recent all-time high.
Bitcoin briefly fell below $61K on March 20.
Currently trading above $63K.
What's happening?
ETF Exodus: Investors are pulling their money out of Bitcoin ETFs – nearly $500 million in just two days. This could be due to pre-Fed jitters or tax season withdrawals.
Fed Fear: The Federal Reserve meeting looms large, and investors are waiting on pins and needles for their decision on interest rates. Any hawkish signals could spook the market further.
The chances: Chances of rate cuts in March and May are extremely low. The CME Group's FedWatch Tool shows only a 1% chance of rate cuts for March 20 and a 9.1% chance for the May FOMC meeting.
Is this all just pre-halving jitters?
But, some argues spot Bitcoin ETFs, not the halving, are driving the market.
Funding rates stay high: Even with the dip, futures markets show high funding rates, suggesting some analysts believe there's further downside for these cryptocurrencies.
Speculators are still holding onto their long positions (bets that prices will rise), despite the recent downturn. This could be due to limited supply or "diamond handed" believers.
Pension Fund Giant Eyes Bitcoin:
Japan's GPIF, the world's biggest pension fund, is exploring adding Bitcoin to its investment portfolio.
Is this a one-off? Nope. Other pension funds are also getting crypto-curious. South Korea's National Pension Service dabbled in crypto exchange Coinbase, and Arizona is considering allocating a slice of its retirement funds towards Bitcoin ETFs.
What's Up With Ethereum ETF?
Forget May, Ethereum enthusiasts - your dream of a spot ETF might have to wait. You can see it in the price.
Ethereum came way down from the highs of $4k
Bloomberg analyst, James Seyffart is throwing cold water on the hopes.
But hey, some experts say that's a good thing.
Traditional finance is still getting cozy with Bitcoin ETFs, which launched in January and gobbled up a whopping $12 billion. Experts say they need more time to digest this before diving into Ethereum.
Ethereum Enthusiasm Waning?: A recent survey suggests financial advisors are less excited about Ethereum compared to Bitcoin.
Alexey Pertsev Accused Of Laundering $1.2 B
Dutch authorities just indicted the developer behind Tornado Cash, for allegedly helping launder $1.2 billion through the crypto mixing platform.
36 specific transactions are cited as evidence, including one linked to the infamous Ronin Bridge hack.
Pertsev was initially arrested in August 2022.
He awaits trial in the Netherlands on March 26 for charges related to money laundering and other financial crimes.
The Surfer 🏄
Saudi Arabia Eyes AI: The Kingdom plans to become the world's biggest AI investor with a massive fund overseen by Silicon Valley giant Andreessen Horowitz (a16z). $40 billion, dwarfing Microsoft's investment in OpenAI ($13 billion).
Bankman-Fried's lawyers call the sentencing proposal a "medieval view of punishment." They argue a 40-50 year sentence is unnecessary and highlights Bankman-Fried's lack of a criminal record.
Argentina chooses BTC: Argentines are turning to Bitcoin instead of dollars due to inflation concerns. Bitcoin demand in Argentina is at its highest level in 20 months. The stronger peso in parallel markets is discouraging people from saving in dollars.
BlackRock's tokenised fund: BlackRock launched a digital liquidity fund. The fund, named BUIDL (a crypto term for "hold"), requires a hefty $100,000 minimum investment.
Grayscale's Gambit: Grayscale's proposed Ethereum ETF offers exposure to Ethereum and the potential for staking rewards. This follows Fidelity's recent move to include staking in its own Ethereum ETF proposal.
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