updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131The New York Stock Exchange (NYSE) Group President, Lynn Martin has hailed the launch of Bitcoin ETFs and the liquidity it infused into the financial market. Traditional finance executives have increased their appetite for the asset class directly or indirectly through ETFs spurring price jumps around the crypto market.
The launch of Bitcoin ETFs on Jan 11 sparked a new drive among traditional investors in the crypto market. Lynn Martin stressed the benefits so far recorded in terms of price and liquidity to the underlying market.
“We’ve been having conversations with the Securities and Exchange Commission (SEC) for more than six years about Bitcoin ETFs. I think you can’t argue with the success of Bitcoin ETFs and the liquidity it has brought to the underlying market.”
Appreciating the success of Bitcoin, she noted the inflows of funds and its effect on the market’s liquidity. Bitcoin price spiked to an all-time high above $73,000 since the launch of spot ETFs in the United States. The wider market cap has also seen massive numbers with bulls attempting a bull run consolidation.
To put gains into perspective, Bitcoin ETFs have notched nearly $60 billion in inflows with BlackRock’s IBIT up to $19.9 billion.
Approval of spot Bitcoin ETFs also led to anticipation around Ethereum ETFs with increased appetite from Wall Street. The approval also led to a sense of legitimacy around the asset class in the United States which has had a spell of uncertain rules.
The launched funds dominated market sentiments in Q1 2024 and led to banks and other financial institutions gaining exposure to these assets. This month, firms disclosed their spot Bitcoin ETF holdings sparking a frenzy within the crypto spaces.
Institutions like Wells Fargo, Morgan Stanley, and Bank of Montreal among others disclosed spot ETF holdings. At press time, Bitcoin price stands at $68,284 making a slight correction as sentiments plunge. The launch of spot ETFs is projected to lead the wider market adoption.
Also Read: Bybit Overhauls Leadership After Troubled Notcoin Launch
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Despite seeing a surge in product demand for Q4 2022, Boeing sustained a gigantic $663 million loss due to macroeconomic constraints.
Boeing (NYSE: BA) recently posted its Q4 2022 financial report, which showed a losing effort characterized by labor and supply strains. The American aeronautics manufacturing giant posted a loss of $663 million in the fourth quarter amid supply chain constraints. These unsavory operational elements overshadowed the increased revenue the company realized from higher demand in aircraft sales and deliveries.
Nonetheless, Boeing chief executive officer Dave Calhoun optimistically viewed the latest quarterly outing. Calhoun stated:
“We had a solid fourth quarter, and 2022 proved to be an important year in our recovery. Demand across our portfolio is strong, and we remain focused on driving stability in our operations and within the supply chain to meet our commitments in 2023 and beyond.”
In addition, the company’s CEO also said Boeing continues to invest in its business while innovating and prioritizing safety. Furthermore, he explained that Boeing would strive for quality and transparency in all its operational deeds.
For the fourth quarter of 2022, Boeing reported a revenue haul of $19.98 billion compared to the higher $20.38 billion analysts expected. Furthermore, the company’s adjusted loss per share came in at $1.75 versus the much lower expected earnings per share of 26 cents.
Amid the rise in demand for Boeing’s products, the Chicago-based company’s top executives refrain from ramping up production. In a memo to staff, Calhoun said:
“We’re proud of how we closed out 2022, and despite the hurdles in front of us, we’re confident in our path ahead. We have a robust pipeline of development programs; we’re innovating for the future, and we’re increasing investments to prepare for our next generation of products.”
Despite the labor and supply drawbacks, Boeing also generated positive free cash flow in 2022 for the first time since 2018. Since the easing of pandemic restrictions, aircraft operators and manufacturers have benefited from a sharp rebound in air travel. During the height of Covid, the airline space ranked high among the most affected industries across the globe.
For Q4 2022, Boeing generated $3.1 billion in cash flow. This sum came in much higher than the consensus estimates of $2.3 billion for the year and represented the most since 2018. In the ensuing time, the aeronautics corporation endured a years-long crisis sparked by the second of two fatal 737 Max crashes.
Calhoun admitted that despite glaring challenges, Boeing remains well-positioned to restore its operational and financial strength.
Boeing’s BA shares were trading 1% lower in premarket trading following its latest quarterly results.
Last July, Boeing received a substantial order from Delta Air Lines Inc (NYSE: DAL) for 100 737 Max 10 planes. According to reports, the delivery of said aircraft would commence in 2025 in a deal worth around $13.5 billion. Furthermore, the deal is Delta’s first with Boeing in over 10 years and includes an option for 30 more Boeing planes.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
The frenzy around meme stocks is back, echoing the headiest highs of last year — and it’s spilling over into meme cryptocurrencies such as dogecoin and shiba inu.
Home retailer Bed Bath & Beyond (BBBY) has surged up to 360% in August, including a 67% rally on Tuesday, after Redditors were inspired by GameStop chair Ryan Cohen’s sizable stake in the firm.
Cinema chain AMC has also seen a resurgence, having jumped almost 47% in the month to date, as of Wednesday’s close. Retail investors last year saved the firm from bankruptcy and thwarted its short sellers.
Game retailer and seminal meme stock GameStop (GME) has also found fresh retail interest, albeit relatively smaller, with 19% gains over the same period.
These moves represent a turnaround in risk assets from a relatively quiet July, when the macro environment was more tense. In the past few months, markets remained spooked by tighter monetary policy to combat soaring inflation and warnings about the onset of a recession.
Recent meme stock frenzy has coincided with a jump in their cryptocurrency counterparts. Dogecoin is up about 16% this month while copy-cat shiba inu has gained 24%. For scale, bitcoin has only broken even; ether has popped 9%.
Gains in these riskier corners of the market appear to arise from market events somewhat stabilizing, with stocks climbing from their mid-June lows, according to Jae Yang, CEO of crypto software firm Tacen. Benchmark indexes S&P 500 and NASDAQ 100 are both up around 4%, led slightly by the latter.
“It seems like there’s still quite a bit of money out there that people are willing to risk, which is a good sign,” Yang told Blockworks, adding that traders tend to wait for a volatility squeezes and catalysts to push trade volumes.
In January 2021, the infamous GameStop short squeeze brought attention to stocks that were highly-shorted by Wall Street institutions. A group of Reddit traders then banded together to pump similarly embattled stocks in a meme-fueled defiant display of retail power and influence over the stock market.
Meme coins, on the other hand, refer to cryptocurrencies whose brand derives from a popular online meme or viral image. In the cases of shiba inu and dogecoin, the meme is a breed of Japanese hunting dog.
This trait is apparently more relatable to the retail investor crowd, as compared to Ethereum’s more technical octahedron, for example.
While they’re not designed to offer competition on the utility front to major players like bitcoin and ether, they are fun to trade, Santiago Portela, CEO of Web3 firm FITCHIN told Blockworks in an interview.
“I think there’s a group of people — and we’re not talking about five or 10 but in the 1000s — that really like the concept of meme coins, meme stocks and saying ‘I’m just having fun, and I want to have fun’,” Portela said.
The phenomenon of investing in dog coins first struck a major chord during the previous crypto bull run, when Tesla CEO Elon Musk began hyping dogecoin on social media.
Musk once described it as his “fav cryptocurrency,” but it’s often hard to tell whether Musk is serious (he later referred to dogecoin as a “hustle” on Saturday Night Live, causing its price to sink up to 35%).
Pumping meme asset prices has led dogecoin and shiba inu’s correlation with meme stocks to rise dramatically over the past month.
Shiba inu’s 40-day correlation with AMC, for example, is now at 0.79 (with 1 being exactly correlated), up from -0.12 one month ago, according to TradingView.
Dogecoin’s correlation with GME and BBBY has made almost analogous moves — but so has ether’s and bitcoin’s. In fact, ether’s correlation with AMC is now at 0.82, way up from -0.34 recorded in mid-July.
“Meme coins are usually the ones most affected by bear markets as participants usually invest aiming to capture a speculative rally that could trigger huge returns,” said Manuel Ortiz-Olave, co-founder at tokenization platform Brickken.
Daniel Tal, project lead at crypto infrastructure startup ICHI, said the market for meme coins is wholly based on speculation, and that sentiment is currently driven by the approach of Ethereum’s Merge, which will see the blockchain switch from proof-of-work to proof-of-stake.
“While you do see larger usage of some coins like dogecoin in the last two months, I think that may have little to do with the increase in price,” Tal said.
He reasoned that ETH’s recent price growth, fueled by the Merge, has brought shiba inu and dogecoin along for the ride, “as retail users flock back to crypto with the hype around the event.”
David Canellis contributed reporting.
Get the day’s top crypto news and insights delivered to your inbox every evening. Subscribe to Blockworks’ free newsletter now.
Are we in a bear market? Opinions vary, but it certainly feels like one. Markets across the board and across the world are in the red, and the bitcoin and crypto ones are no exception. If you’ve been paying attention, you know how all of this happened, but a refresher course wouldn’t hurt. Using ARK Invest’s latest Bitcoin Monthly report as a guide, let’s go through the tragic sequence of events and evaluate the bitcoin market as it stands.
According to ARK, the road to the bear market went like this:
“Beginning with the Terra collapse in early May, contagion spread to major crypto lenders including Blockfi, Celsius, Babel, Voyager, CoinFlex, contributing to the insolvency of the once highly-respected hedge fund, Three Arrows Capital (3AC). Since Terra’s collapse, total crypto market capitalization has dropped ~$640 billion.”
Nevertheless, there seems to be a light at the end of the tunnel. “Promisingly, however, recent fallout (Babel, Voyager, CoinFlex, Finblox) appears lower in magnitude compared to Terra, Celsius, and 3AC.” That doesn’t mean the end of the bear market is near, nor that capitulation is already over. Especially if the Mt. Gox victims receive the rumored 150K BTC.
First, let’s follow ARK as they analyze two of the main players in this drama. Then, let’s check the stats of the bitcoin market to see if we can find signs and clues that point out to the end of the capitulation stage. SPOILER ALERT: The jury is still out on that one. Some signs point to an early end, others to further downside. Aren’t bear markets fun?
When Terra fell, the earth trembled. The Luna Foundation Guard sold nearly all of their 80K BTC reserve trying to defend the UST peg to the dollar. This event could’ve been the catalyst for the bear market. The worst was yet to come, though. Several once-respected institutions were heavily exposed to Terra through its Anchor protocol, and the UST collapse sent them all into a still ongoing death spiral.
According to ARK, “Celsius froze withdrawals on June 12th in response to significant outflows. Its DeFi debt outstanding is $631 million but the magnitude of its nonDeFi exposure is unclear.” There was still hope for its clients, as the company paid several loans. However, Celsius filed for Chapter 11 bankruptcy, leaving them all high and dry.
What really happens to the coins you deposit to reputable lending platforms. pic.twitter.com/RQh7jfrrNZ
— softsimon (@softsimon_) July 13, 2022
The Chief Commercial Officer at Choise.com, Andrey Diyakonov, analyzed the situation for NewsBTC:
“To put things into perspective, we need to turn it upside down, and ask, how much of the recent price action on the markets was influenced by or outright created by Celsius’ actions? What goes around always comes around. It’s so much more ironic given those credible reports that Celsius withdrawals were among those that sent UST and Terra position down the rabbit hole to find out where the bottom is.”
Our team covered that particular claim and the company’s response.
Then, there was “Three Arrows Capital (3AC), a highly regarded crypto hedge fund reportedly managing $18 billion at its peak, appears to be insolvent after taking on too much leverage.” That’s according to ARK, who also says, “Seemingly, 3AC took on excess leverage to try and recover the losses. Its creditors included major players in the industry like Genesis, BlockFi, Voyager, and FTX.”
All of those companies except FTX seem to be counting down to extinction.
BTC price chart for 07/15/2022 on Velocity | Source: BTC/USD on TradingView.com
Is the bottom in? Opinions vary. In a section titled “Market Contagion Sets Bitcoin Into Capitulation,” ARK analyzes all of the indicators and can’t reach a final conclusion. The numbers are extremely interesting, though.
This “suggests extremely oversold conditions,” which is a great sign. However…
The “condition has not been met,” but it’s close. Very close.
Miners who didn’t practice proper risk management have been selling at the present low levels. Miners who know what they’re doing will keep holding until we come out of the bear market. The question is, how many companies are in the first group and haven’t sold just yet?
Historically, this suggests capitulation is over. Or is it?
If we’re going to reach 25%, that means there’s still a long way to go.
Is the bear market just beginning or about to end? The data is unclear. But capitulation seems to be nearing its end, which would be the first step in the right direction.
Featured Image by Marc-Olivier Jodoin on Unsplash | Charts by TradingView
Ethereum is making progress towards its transition from a Proof-of-Work (PoW) consensus to a Proof-of-Stake consensus algorithm. In an event dubbed as “The Merge”, the current network and its decentralized application will begin operating on the latter.
Related Reading | Analyst Hints Huge Chances For Ethereum Killers To Surge, Sides With Solana And AVAX
Core ETH Developer Tim Beiko recently announced the successful roll-out of a Beacon Chain, or a mainnet PoS network, for its longest-lived PoW testnet “Ropsten”. This will aid developers in launching “The Merge” on this test network. The event is set for June 8th.
If successful, Ethereum and its developers could be steadily moving to a mainnet Merge event at some point in the coming months. The Ropsten Beacon Chain must meet certain requirements before operating on a PoS consensus, as Beiko clarified:
For The Merge to happen, we now need two things on Ropsten. First, its beacon chain must activate the Bellatrix upgrade, scheduled for June 2. Then, a PoW total difficulty value, the Terminal Total Difficulty (TTD) will be chosen to trigger the transition.
In that sense, Beiko asked node validators to prepare for the upcoming PoS transition. This could be one of the largest “The Merge” milestones in recent months and could provide validators with experience about “what a post-merge node is like”.
Beacon Chain node validators will need to fulfill requirements to stay active on The Post Merge network, such as running execution clients. PoW node validators will need to run a consensus layer client.
Beiko added the following on what could be a glimpse of an Ethereum mainnet post “The Merge”:
Post-merge, validators receive the priority fees from transactions
This happens on the execution layer, so those fees aren’t locked on the beacon chain. To get them, you need to set a “fee recipient” address upon starting your validator.
This testnet will have no direct implications for Ethereum holders or users. However, ETH Ropsten miners will stop operating under the new consensus layer.
Once the mainnet completes its Merge event, ETH miners will be unable to continue operating with this cryptocurrency. This could potentially induce a short-term shock to the crypto space.
ETH is one of the most popular cryptocurrencies, and one of the best to mine. The Merge is probably the most hyped event in this cryptocurrency’s history.
This combination of ingredients, a sudden shift in the system, and a highly anticipated event could contribute to the creation of volatility around “The Merge”. In the long term, the PoS migration could be a bullish catalyzer for the price of ETH.
Related Reading | TA: Ethereum Tests $2K, Why ETH Could Extend Rally
At the time of writing, ETH’s price trades at $1,900 with a 3% profit in the last 24-hours. The cryptocurrency has been lagging as Bitcoin takes over the market due to an increase in uncertainty in the macro-environment.
✓ Share: