Bitcoin’s price surged by 3% in the past 24 hours, reaching a peak of around $64,082. However, the flagship cryptocurrency encountered resistance at this level, coinciding with its 200-day moving average. As a result, Bitcoin retraced approximately 1%, trading at about $63,434 during the mid-London session. The volatility led to over $50 million in liquidations in the leveraged market, with the largest single liquidation on OKX amounting to $5 million.
Technical indicators suggest that Bitcoin might experience further corrections before potentially rallying towards its all-time high. Crypto analyst Ali Martinez noted that the TD Sequential indicator has signalled a sell signal, which may lead to a midterm correction over the weekend. However, he anticipates that if Bitcoin consistently closes above the $64K liquidity level, it could pave the way for a new peak.
In addition, recent data shows that Bitcoin supply on exchanges has dropped significantly, with miners increasing their trading activities. Notably, dormant miners have reactivated their wallets, moving approximately 250 BTC. The growing demand for spot Bitcoin ETFs has contributed to this decline in supply, with net inflows exceeding $700 million over the past two weeks.
As global economic conditions shift, particularly following interest rate changes by the US Federal Reserve, analysts predict a liquidity boost for the crypto market. Bitcoin is expected to follow the bullish trends of precious metals like gold, which recently hit an all-time high, indicating a positive outlook for the crypto market in the upcoming months.
MicroStrategy has announced an increase in its convertible note offering to $875 million, intending to use the funds to pay off existing debt and acquire more Bitcoin. It marks another bold move by the company, which is known for its aggressive Bitcoin acquisition strategy.
The raised funds will help MicroStrategy redeem $500 million of its current senior secured notes due in 2028, with the remaining amount allocated for purchasing additional Bitcoin and general corporate purposes. The company’s total reserves now hold approximately 244,800 BTC, bought at an average price of around $38,585 per Bitcoin.
These convertible notes, set to mature in 2028, will be offered to qualified institutional investors, with holders given the option to convert them into cash, shares of MicroStrategy’s Class A stock, or a combination of both.
Binance founder Changpeng Zhao, better known as CZ, is due to be released from a US prison on 29th September. Zhao, 47, has been serving a four-month sentence for breaching US anti-money laundering and sanctions laws, particularly for allowing transactions with sanctioned countries such as Iran and Cuba. His legal troubles started in November 2023 when Binance and Zhao admitted to multiple charges, resulting in a substantial $4.3 billion fine for the company and a personal penalty of $50 million for Zhao.
Initially facing a potential three-year term, Zhao’s sentence was significantly reduced after US District Judge Richard Jones determined there was insufficient evidence to prove his direct involvement. The judge also considered Zhao’s personal history and character as mitigating factors. As part of the settlement, Zhao agreed to step down as Binance’s CEO.
Although Zhao’s legal woes have rattled Binance, the exchange continues to operate. Following his release, there is speculation about his future role in the crypto world. Earlier in 2024, Zhao hinted at launching a new venture, Giggle Academy, a free educational platform for underprivileged children, signalling his intent to leave a legacy beyond cryptocurrency.
Ethereum has declined, hitting its lowest value against Bitcoin since April 2021. The cryptocurrency has fallen over 55% from its peak in 2021, now trading at 0.039 BTC, down 24% this year and 35% from its yearly high. Ethereum has also dropped to $2,300 in US dollar terms, marking its lowest price since February.
The downturn is largely due to a lack of interest from institutional investors, with Ether-focused ETFs seeing outflows of $581 million. This sharply contrasts with Bitcoin spot funds, which have attracted $18 billion in inflows. Meanwhile, Ethereum has faced competition from layer-2 networks like Base and Polygon, which offer faster transactions at lower costs.
Further contributing to the drop are large-scale sales from key figures like Vitalik Buterin and the Ethereum Foundation. High-profile investors, including Jump Trading, have also reduced or completely liquidated their Ether holdings, further fuelling concerns about Ethereum’s future.
MicroStrategy has announced plans for its third debt offering this year, aiming to raise $700 million by issuing convertible senior notes due in 2028. The company intends to use the funds to pay off $500 million in existing senior secured notes and purchase more Bitcoin, with any remaining proceeds going towards general corporate purposes. The notes will be unsecured and will begin paying interest from March 2025, available only to qualified institutional buyers.
This marks MicroStrategy’s third debt offering in 2024, following similar issuances in March and June. The company, one of the largest public holders of Bitcoin, currently holds 244,800 BTC, valued at approximately $14 billion. However, the volatility of its Bitcoin holdings has affected its financial performance, with the company posting a net loss of $102.6 million in the second quarter of 2024, largely driven by a $180.1 million digital asset impairment.
Despite concerns about its significant exposure to Bitcoin, MicroStrategy’s stock has performed well. Its share price has surged nearly 295% over the past year, with a 96% increase so far in 2024, reaching $134 as of 16 September.
A group of US Senate Democrats has called on the nation’s largest Bitcoin ATM operators to step up efforts in preventing fraud targeting elderly Americans. The Senators, led by Senate Judiciary Committee Chair Dick Durbin, addressed the growing number of scams using Bitcoin ATMs, urging companies to take immediate action to protect vulnerable populations.
Data from the Federal Trade Commission reveals that in the first half of this year alone, Bitcoin ATM-linked fraud amounted to $65 million. Older adults, particularly those aged 60 and over, were disproportionately affected, being three times more likely to report financial losses than younger users. Senators, including Elizabeth Warren, pointed to recent reports showing scammers coercing elderly individuals into sending funds through Bitcoin ATMs.
The Senators have asked major Bitcoin ATM firms to respond by early October, detailing their measures to combat fraud. This comes amid broader concerns over the rise in crypto scams, with the FBI reporting a significant increase in overall crypto-related fraud this year.
Circle, the company behind the USDC stablecoin, is confident that stablecoins will become a mainstream form of money. With increasing competition in the market, Circle’s chief strategy officer Dante Disparte emphasises the need for global regulatory harmony to ensure proper compliance for all stablecoin issuers, particularly in areas like financial crime prevention and conservative reserving practices.
Circle is also preparing to relocate its global headquarters to New York by 2025, as it continues to advocate for federal stablecoin regulations in the US. Disparte argues that the lack of a clear framework poses a risk to American interests, potentially allowing foreign entities to exploit trust in the US dollar without proper oversight.
Meanwhile, Europe’s new MiCA regulation has provided much-needed clarity for stablecoins, with Circle achieving compliance under this framework. As competition heats up with entrants like PayPal and Ripple, Circle remains at the forefront of regulatory discussions, pushing for clearer rules that foster innovation while safeguarding consumers.
On Friday, US spot Bitcoin ETFs experienced a significant rise in inflows, totalling $263 million as Bitcoin’s price surged over $60,000. Fidelity’s Bitcoin ETF led the pack, pulling in $102 million, while ARK Invest and 21Shares followed closely with $99 million in net inflows. This marks a shift in sentiment after weeks of outflows, signalling renewed investor optimism in the crypto market.
Despite the positive inflows for most ETFs, BlackRock’s iShares Bitcoin Trust and WisdomTree’s Bitcoin Fund recorded no new investments. However, US spot Bitcoin ETFs collectively closed the week with more than $400 million in net inflows. This, combined with Bitcoin’s 12% price increase, reflects growing confidence in the market.
The wider cryptocurrency market also benefited, with Ethereum rising by 8% and altcoins like Toncoin, Chainlink, and Avalanche performing strongly. Investors remain hopeful as expectations build for a potential interest rate cut by the US Federal Reserve, which could further boost the crypto market.
Former US President Donald Trump has announced the launch of his cryptocurrency project, World Liberty Financial, set to go live on 16 September. In a video posted on X, Trump described the project as a move towards decentralised finance (DeFi) to move away from traditional banking systems. Trump’s sons, Donald Trump Jr. and Eric Trump, will be in charge of the project, which promises to offer services such as digital wallets, lending, and investing in crypto assets.
World Liberty Financial is also exploring the use of US dollar-pegged stablecoins and has hinted at a collaboration with the DeFi platform Aave, suggesting it may operate on the Ethereum blockchain. Despite Trump’s support for the crypto sector, some in the industry have expressed concerns about the launch timing, which comes just 50 days before the US presidential election, where Trump is a candidate.
The project has faced significant challenges, including attempts by hackers and scammers to exploit its hype. Accounts linked to Trump’s family were recently compromised, and false advertisements and giveaways have been circulating online. Despite these issues, Trump’s crypto venture continues to generate a mix of excitement and scepticism within the crypto community.
The UK government has introduced a new Property Bill aimed at clarifying the legal status of digital assets such as cryptocurrencies, non-fungible tokens (NFTs), and carbon credits. The proposed legislation would create an additional property category under UK law, recognising digital assets as ‘things’ and providing a clear legal framework for handling them in cases like divorce settlements. It is seen as essential to ensure the law keeps pace with evolving technologies, according to Labour MP and Minister of State Heidi Alexander.
The bill also seeks to protect digital asset owners and businesses from fraud and scams, while giving judges clearer guidance in complex property disputes involving digital holdings. The proposal stems from a 2023 report commissioned by the Ministry of Justice, which highlighted the unique nature of digital assets and their need for distinct legal recognition under personal property law.
This legislation forms part of the Labour government’s broader efforts to address blockchain and digital asset regulation, following their recent victory in the July election. It reflects a growing trend of governments worldwide reassessing their stance on digital assets, with similar discussions taking place in the United States ahead of the 2024 election.
