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Bitcoin rallied to start the week, touched a new 2023 high to end it and suffered a brief drop in between, weighed down by the trouble at Binance. Bitcoin ended the week higher by about 4% after touching a new 2023 high on Friday above $38,000. Coin Metrics measures a week in crypto, which trades 24 hours a day, from 4:00 p.m. Optimism about the likely approval of a spot bitcoin ETF has been building for the past couple months, serving as the biggest catalyst for the cryptocurrency. The challenge is that active crypto trader positioning appears long, he added, based on activity in crypto futures, options, open interest and funding rates.
Persons: Bitcoin, Zach Pandl, bitcoin, Pandl, Michael Rinko, Biden, there's Organizations: CNBC, Regulators, Delphi Locations: Binance, Argentina, U.S
Industry insiders are cheering the end of a "CZ"-led Binance as a necessary move for crypto going forward. Some say it was perhaps even critical for what could be the next big step for the industry: the approval of a bitcoin ETF. Having this settlement behind us could be the final big, big step needed for this ETF." The crypto industry has long sought the creation of a bitcoin ETF (efforts to launch one go back at least a decade). "Binance is globally the major liquidity pool for crypto trading despite losing market share this year," she said.
Persons: Zhao, Binance, , Franklin Templeton, Michael Rinko, Sam Bankman, Fried, Rinko, Sam Callahan, Callahan, Yesha Yadav Organizations: Industry, Department of Justice, , Fidelity, Delphi, Securities, Exchange Commission, Binance, CZ, DOJ, Futures Trading Commission, Treasury Department, BlackRock, Invesco, Ark, Vanderbilt University Law School Locations: BlackRock
Market participants put the move on attempts to bring meme mania back to the crypto market. Pepecoin (PEPE), based on the Pepe the Frog internet meme, is up more than 120% over the past 24 hours, CoinMarketCap said. Ethereum gas fees have been revived by the return of memecoins, just today hitting 1-year highs." "As gas fees increase, more ETH is burned, and at current activity levels ETH is a deflationary asset, which should help boost ETH's price," Ryder added. "In the last 24 hours, trading volumes for PEPE on Uniswap have surpassed the volumes of Tether and Wrapped Bitcoin, some of the highest volume tokens on the exchange."
Bitcoin's market dominance has been climbing in March and is now up to levels not seen since June. Investors use it to determine which parts of the crypto market are outperforming or underperforming relative to their peers. When bitcoin dominance climbs, it implies that bitcoin is doing well, but more specifically, it means its outperforming altcoins. Bitcoin dominance has risen steadily since March 8, the day after Silvergate Bank announced its voluntary liquidation. "That's reflecting a view that a lot of macro investors have, that we're either at or very near the bottom of this macro cycle."
Unlike in previous crypto winters, however, macro forces outside the crypto industry are the biggest drivers of the market. The Shanghai upgrade Ethereum developers are gearing up for the network's next big upgrade, the "Shanghai" upgrade, which has a target release of March 2023. "The problem right now is if you stake ether into the network, your ether will be locked until the Shanghai upgrade," Lau said. "There will be more liquidity of ether after the Shanghai upgrade," he added. Gox but the expected distribution of the bitcoin recovered from the exchange's 2014 implosion could be a near-term headwind for bitcoin investors.
Cryptocurrency prices dropped Thursday to new October lows after key U.S. inflation data came in hotter than expected. The price of bitcoin fell 4% to $18,388.00, and ether slid 6% to $1,216, according to Coin Metrics. Bitcoin dropped below $19,000 early on Thursday as investors anxiously awaited the latest read on the consumer price index. Cryptocurrencies have been trading mostly sideways since the end of August, with bitcoin hovering within $19,000. Bitcoin continues to trade within a tight range since June," said Michael Rinko, venture associate at AscendEx.
Twice during the week, as bitcoin dipped below the $19,000 level, ether hovered at $1,300 (about 70% below its all-time high). Many expected the merge to be a buy-the-rumor/sell-the-news event, and there are growing concerns in the crypto community about the post-merge Ethereum. Ahead of the merge, many investors were buying spot ether and shorting ether perpetual futures , in order to get tokens of the "forked" version of Ethereum for free, without the ether price exposure. Growing concerns Ahead of the merge, there were two main concerns the crypto community had begun exploring. "It looks like Ethereum Classic has been the main beneficiary post merge," JPMorgan's Nikolaos Panigirtzoglou said in a note this week.
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