A growing number of investors in the United States are turning to cryptocurrency-based financial products to navigate heightened market uncertainty brought on by shifting trade policies. Recent data shows a surge in demand for both leveraged exchange-traded funds (ETFs) and crypto derivatives, as US President Donald Trump's tariff plans inject new volatility into global markets. While some traders are seeking amplified exposure to risk assets like Bitcoin, others are hedging defensively with gold and cash. Traders Bet Both Ways as Volatility Reigns: Record Flows to Leveraged Long and Safe-Haven ETFs in 2025 Traders are simultaneously chasing high-risk rewards and sheltering in low-risk sanctuaries—often within the same trading day. According to newly released data from Bloomberg Intelligence, exchange-traded funds (ETFs) at both extremes of the risk spectrum are seeing record-breaking inflows, suggesting a bifurcated strategy among investors navigating what may be one of the most unpredictable markets in modern history. So far this year, ETFs that offer leveraged long exposure—typically amplifying the daily returns of volatile assets like tech stocks and cryptocurrencies—have attracted around $6 billion in net inflows. At the same time, cash and gold ETFs have collectively drawn approximately $4 billion, signaling a defensive posture among a significant segment of the investor base. “There’s basically record flows going into leveraged long ETFs but also cash and gold ETFs as people buy the dip and hedge the dip at the same time,” noted Bloomberg Intelligence senior ETF analyst Eric Balchunas in an April 23 post on X. “May the best degen win!” This strange duality reflects a market deeply divided—where some investors are betting on sharp rebounds while others brace for further corrections. Leveraged ETFs, often branded with 2x or 3x multipliers, are inherently speculative and popular among day traders and hedge funds. On the opposite end, gold and cash funds are traditionally seen as safe havens during periods of market stress. Tariff Shockwaves and the Resilience of Bitcoin The market's fragility was starkly exposed earlier this month when President Donald Trump shocked global trade partners by announcing sweeping tariffs on US imports on April 2. The S&P 500, which had shown signs of stabilization earlier in the year, swiftly dropped nearly 5% in the wake of the announcement, according to Google Finance. But while equities stumbled, Bitcoin demonstrated an uncharacteristic calm. As of April 23, Bitcoin was trading above $93,000, recovering the psychological $90,000 threshold for the first time in six weeks. April 22 alone saw nearly $1 billion in net inflows into US-listed spot Bitcoin ETFs, highlighting strong institutional interest even amid macroeconomic jitters. ”Even in the wake of recent tariff announcements, BTC has shown some signs of resilience, holding steady or rebounding on days when traditional risk assets faltered,” noted a Binance research report published this week. The report also addressed the long-standing debate over whether Bitcoin can fulfill its moniker as ”digital gold.” Despite the narrative, Bitcoin's correlation with gold remains weak, averaging just 0.12 over the past 90 days, compared to 0.32 with equities, suggesting that the asset behaves more like a tech stock than a safe-haven commodity. The Big Picture: Hedging Uncertainty with Extremes The growing divergence in ETF flows suggests more than just indecision—it reflects a market environment where investors no longer feel comfortable picking a single direction. Instead, they’re building portfolios for all possible outcomes: a tech-fueled bull run, a prolonged economic slowdown, or both. This hedging-on-steroids approach may be the only rational response in a world where central banks, geopolitics, and meme-driven momentum each hold sway over asset prices. Whether Bitcoin becomes the new gold or remains an ultra-volatile tech proxy, and whether tariffs crush growth or spark inflationary rallies, traders appear intent on capturing whichever scenario plays out first. US Crypto Exchanges Race for Derivatives Dominance as Trump’s Tariffs Spark Trading Surge In other news, United States-based cryptocurrency exchanges are doubling down on crypto derivatives. Exchanges like Coinbase, Robinhood, Kraken, and the Chicago Mercantile Exchange (CME) Group are aggressively expanding their derivatives offerings and exploring strategic acquisitions to seize control of what is rapidly becoming one of the most lucrative corners of the digital asset market. The push comes as investors seek tools to hedge against escalating macroeconomic uncertainty, fueled by Trump’s aggressive protectionist policies and a looming global trade war. The result has been a surge in demand for crypto futures and other derivatives, which are being increasingly used by both institutional investors and sophisticated retail traders. The market dynamic shifted dramatically in early April, when Trump unveiled his latest tariff plan, rattling traditional financial markets and amplifying interest in decentralized, hedge-capable assets like Bitcoin. In response, crypto derivatives platforms saw a spike in both trading volume and open interest. As of April 23, net open interest in Bitcoin futures surged approximately 30% month-to-date, hitting fresh year-to-date highs, according to data from Coinalyze. Net open interest in Bitcoin futures rose sharply in April (Source: Coinalyze ) Trump’s Election Victory Sparked the Fuse The derivatives boom can be traced back to late 2024, shortly after Trump secured his second term in office. Markets quickly began pricing in a more isolationist trade stance, and cryptocurrency exchanges saw record engagement. Coinbase reported in December that activity on its derivatives platform rose over 10,000% year-over-year. At the same time, the CME Group highlighted crypto derivatives as one of its fastest-growing product categories during its 2024 earnings call. But it was the April 2 tariff announcement that added fuel to the fire. Traders scrambled for exposure and protection, sending crypto derivatives volumes into overdrive. Futures, which are standardized contracts to buy or sell assets at a future date—often using leverage—became the go-to financial tool for navigating this new economic terrain. The intense demand has set off a race among US exchanges to outdo one another, with product innovation and acquisitions forming the key strategies. In February, Robinhood listed Bitcoin futures—its first foray into crypto derivatives. The following month, Coinbase launched several new contracts, including futures for Solana (SOL) and XRP, responding to rising interest in altcoin-based derivatives. Not to be outdone, CME Group also jumped into the altcoin game with its own Solana futures, which recorded $12 billion in volume on their first trading day, according to the exchange. Beyond product rollouts, consolidation is becoming a dominant theme. In March, Kraken acquired NinjaTrader, a legacy futures exchange, for $1.5 billion, significantly expanding its reach in derivatives. Meanwhile, Coinbase is reportedly in advanced talks to acquire Deribit, a top global crypto derivatives exchange, in a multibillion-dollar deal aimed at solidifying its foothold in the space. Strategic Importance in a Fragmenting Global Market “The recent wave of tariffs has transformed crypto derivatives exchanges into critical market infrastructure,” said Nic Roberts-Huntley, CEO of Web3 development firm Blueprint Finance. “While traditional markets faltered under tariff pressures, derivatives platforms have inversely flourished, serving both as speculative venues and protective hedging mechanisms in a fragmenting global trade landscape.” This shift marks a significant evolution in the role of crypto markets. Once considered the wild west of finance, derivatives exchanges are now being seen as key financial institutions—essential for managing risk in a macro environment increasingly defined by geopolitical friction and inflationary threats. The current moment also reflects a rare alignment of factors that favor crypto's ascent: regulatory tailwinds, institutional interest, macro-driven demand, and the increasing sophistication of exchange infrastructure. As the US barrels further into an era of economic nationalism, crypto derivatives are emerging as one of the most effective tools for navigating policy shocks. US exchanges are racing not only to meet the moment but to shape it—by positioning themselves as indispensable to a global financial system in transition. Whether through organic growth, strategic acquisitions, or product expansion, platforms like Coinbase, Kraken, and CME are setting the tone for what could be a multi-trillion-dollar derivatives market.

2025-04-24 13:00

This is a 66% increase from the previous year. Elderly victims were hit the hardest, with $2.8 billion in losses. Fraudulent investment schemes dominated, while sextortion and scams involving crypto ATMs also surged. AI-driven impersonation scams worsened the threat landscape, and was even recently seen in a case involving crypto influencers like Scott Melker. Meanwhile, victims of the Celsius Network collapse are still seeking justice. Over 200 impact statements were submitted ahead of Alex Mashinsky’s sentencing on May 8, where he faces up to 30 years in prison. FBI Reports Record-Breaking Crypto Fraud Losses The Federal Bureau of Investigation’s (FBI) Internet Crime Complaint Center (IC3) revealed a big surge in cryptocurrency-related fraud in its latest annual report . In 2024 alone, more than 140,000 complaints involving digital assets were submitted to the IC3, with reported losses soaring to an estimated $9.3 billion. This is a 66% increase compared to the $5.6 billion in losses that was reported in 2023. (Source: FBI ) The report pointed out that people aged 60 and older were disproportionately affected, and submitted close to 33,000 complaints. This group also accounted for $2.8 billion of the total losses. The elderly demographic not only experienced the most serious financial damage but also filed the highest number of complaints. (Source: FBI ) Fraudulent crypto investment schemes were responsible for the bulk of the financial losses, while the most frequently reported scam category was “sextortion,” in which criminals used manipulated images or videos to blackmail victims. Other common tactics included scams involving cryptocurrency ATMs and kiosks, which have become increasingly popular tools for fraud. According to the IC3, the total reported losses from all internet-related crimes in 2024 reached a record $16.6 billion. Ransomware was still the top threat to critical infrastructure, with incidents rising 9% year-over-year. Although the FBI made progress in mitigating these threats through “ Operation Level Up ,” which prevented an estimated $285 million in potential losses between January 2024 and January 2025, the report suggests the threat landscape is far from contained. Blockchain analytics firm Chainalysis reported that roughly $41 billion in crypto transactions in 2024 were linked to illicit activity. Around a quarter of those funds were associated with hacking, extortion, trafficking, or scams. The year also saw some of the largest crypto heists on record, including a $1.4 billion theft from Bybit in March and more than $1.3 billion that was allegedly stolen by North Korean hackers. (Source: Chainalysis ) Looking ahead, Chainalysis warned that 2025 could bring an even bigger wave of fraud, largely fueled by the growing accessibility and effectiveness of generative AI. These tools have made it a lot easier and cheaper for cybercriminals to scale their operations. This poses new challenges for regulators, law enforcement, and everyday users in the digital finance ecosystem. AI Fraudsters Steal Millions AI’s destructive role in crypto fraud recently came to light. Crypto podcaster Scott Melker, host of The Wolf Of All Streets , revealed that scammers are using his name, face, and even AI-generated identities to defraud unsuspecting victims. This included one individual who lost a staggering $4 million. In a post that was shared on April 23, Melker described feeling ”sick” after being informed by a private investigator that a Nigerian scam group impersonated him with a fake driver’s license and an email account designed to appear legitimate. The fraudsters even went as far as conducting sophisticated Zoom calls with AI avatars, and allegedly spoofed the identities of Melker’s wife and children to make their deception look more legit. Melker explained that the group scammed multiple people by using generative AI to create highly convincing identities and interactions. This is very similar to other incidents across the crypto space. Technical analysis group TheChartGuys reported a comparable case where scammers used deepfake voice technology to impersonate them. This led one victim to lose $5,000. While the tools that were used by these scammers are becoming increasingly advanced, not all of their tactics are flawless. Crypto trader and advisor “Nebraskan Gooner” shared that some of the AI-generated fake IDs had noticeable errors in formatting, which could be spotted with a basic internet search. He is quite shocked that such a well-organized operation could still produce documents with clear mistakes. On the bright side, the wave of AI-enabled fraud is not going unnoticed by authorities and industry experts. In March, California’s Department of Justice announced the emergence of seven new crypto scam formats taking advantage of artificial intelligence. Meanwhile, Microsoft also weighed in on the issue, and stated in a recent report that malicious actors are using AI to enhance their social engineering tactics. The software giant warned that AI tools are being employed to scrape the web for personal and corporate data, which scammers then use to construct highly believable lures and targeted attacks. Melker acknowledged the worrying trajectory. “It’s going to get exponentially worse, I would imagine,” he said. He is now one of many crypto personalities getting more worried about generative AI that blurs the lines between real and fake. Celsius Victims Plead for Accountability Even years after a crypto fraud case, victims still struggle to find some justice. Federal prosecutors recently submitted over 200 victim impact statements in the case against Alex Mashinsky, the founder and former CEO of the now-defunct crypto lending platform Celsius Network. According to a letter that was filed on April 23 by interim US Attorney for Manhattan Jay Clayton, the statements span 418 pages and outline the emotional and financial toll the platform’s collapse had on hundreds of victims. Many users recounted trusting Mashinsky’s repeated assurances that Celsius was a safe place to store their digital assets, only to lose very large portions of their savings. Alex Mashinsky Celsius once offered crypto yield accounts and loans collateralized by cryptocurrency, but stopped withdrawals in mid-2022 amid a broader crypto market meltdown before filing for bankruptcy in July of that year. Mashinsky was indicted in July of 2023 and later pleaded guilty to commodities and securities fraud in December. He faces up to 30 years in prison if the sentences are applied consecutively. (Source: X ) While most of the submitted statements call for the harshest possible sentence, a minority have asked for leniency. One letter from a person named “Mike” claimed without evidence that Mashinsky was targeted in a coordinated attack led by FTX founder Sam Bankman-Fried. Another, from Artur Abreu, argued that macroeconomic factors played a big role in Celsius’ downfall and urged the court to consider Mashinsky’s remorse. Mashinsky himself asked for a sentence of no more than one year and one day. His sentencing is scheduled for May 8, while the government's formal sentencing recommendation is expected on April 24.

2025-04-24 12:27

A new era in institutional Bitcoin investment and regulatory dialogue appears to be taking shape. As the US Securities and Exchange Commission welcomes Paul Atkins as its new chair, earning endorsements from key industry leaders including Michael Saylor, a major new player has entered the market. Twenty One Capital, a Bitcoin treasury firm launched by Strike founder Jack Mallers with $3.9 billion in BTC backing, aims to offer capital-efficient exposure to Bitcoin and challenge the dominance of Strategy, formerly known as MicroStrategy. Jack Mallers’ Twenty One Capital Takes Aim at Strategy With Bold Bitcoin Treasury Play Backed by Tether, SoftBank, and Cantor Strike founder Jack Mallers has unveiled Twenty One Capital, a new Bitcoin treasury firm that aspires to challenge Michael Saylor’s Strategy as the dominant corporate holder of Bitcoin. Backed by crypto heavyweights Tether and Bitfinex, Wall Street powerhouse Cantor Fitzgerald, and Japanese investment giant SoftBank, the company is launching with a staggering 42,000 BTC. With plans to go public on the Nasdaq under the ticker XXI, Twenty One is positioning itself as the ”superior vehicle for investors seeking capital-efficient Bitcoin exposure” — a direct challenge to Saylor's Strategy, which has long dominated headlines with its Bitcoin accumulation strategy. According to an April 23 investor presentation submitted to the US Securities and Exchange Commission (SEC), Twenty One Capital plans to secure its public listing via a blank-check merger with Cantor Equity Partners (CEP). CEP shares surged 54.2% to $16.50 following the announcement, and gained an additional 25.1% in after-hours trading, as investors responded enthusiastically to the potential impact of the merger and the $585 million equity and bond financing plan. Mallers, speaking with characteristic fervor, outlined his bold mission for the new firm: ”Our mission is simple: to become the most successful company in Bitcoin, the most valuable financial opportunity of our time. We’re not here to beat the market, we’re here to build a new one.” Twenty One's Bitcoin launch stack is comprised of 23,950 BTC from Tether, 10,500 BTC from SoftBank, and 7,000 BTC from Bitfinex, all of which will be converted into equity at $10 per share. Upon completion of its financing and listing, the firm would immediately become the third-largest corporate Bitcoin holder, trailing only Strategy (534,741 BTC) and MARA Holdings (47,600 BTC), according to data from BitcoinTreasuries.NET. Some of the largest corporate Bitcoin holders (Source: BitcoinTreasuries ) In an unusual but deliberate move, Twenty One's pitch to investors took direct aim at Michael Saylor’s Strategy. The firm’s presentation asserted that while Strategy has become synonymous with long-term Bitcoin accumulation, its sheer scale limits its ability to create additional shareholder value through further purchases. According to the document, the marginal impact on Bitcoin Per Share (BPS) decreases as Strategy requires exponentially larger buys to move the needle. Twenty One, by contrast, is branding itself as a “pure play” Bitcoin exposure vehicle — offering not only agility in capital deployment but also native Bitcoin operations and strategic flexibility. With its mix of heavyweight backers and a clean slate approach, the firm promises a more dynamic and scalable model for investors seeking BTC exposure. Beyond Bitcoin Stacking While many treasury plays focus solely on Bitcoin accumulation, Mallers’ vision is far more expansive. Twenty One Capital intends to build a multi-pronged Bitcoin-native financial ecosystem, which includes: Debt and equity products tied to Bitcoin A lending and advisory service tailored for institutional clients An educational platform to foster retail and institutional Bitcoin literacy Industry events and conferences to deepen its cultural and strategic footprint Tether will become the majority shareholder, further cementing its strategic influence beyond stablecoins and into the broader Bitcoin economy. Cantor Fitzgerald, which manages the US Treasury reserve holdings that back USDT and owns a 5% stake in Tether, is deepening its ties with the crypto ecosystem. Meanwhile, SoftBank, which has a track record of bold tech bets, will hold a significant minority stake, signaling confidence from traditional finance in the long-term institutionalization of Bitcoin. This venture comes amid a broader wave of institutional Bitcoin optimism, driven by ETF inflows, geopolitical instability, and the weakening credibility of fiat currencies among investors worldwide. The Market Reaction and What’s Next The explosive price rally in Cantor Equity Partners’ stock suggests investor excitement over the bold strategy. With Twenty One's IPO on the horizon and its $585 million capital raise underway, markets will closely watch how quickly it can finalize the merger and start trading under the XXI ticker. In many ways, this is more than a new company launch—it’s a declaration of a new phase in Bitcoin’s institutional adoption. And at its center is Jack Mallers, one of the space’s most outspoken and passionate Bitcoiners, with a war chest and vision to match. If Twenty One Capital’s promise holds true, Michael Saylor might soon have company — or competition — at the top. Michael Saylor and Crypto Leaders Rally Behind New SEC Chair Paul Atkins Amid Calls for Reform and Transparency Meanwhile, Saylor, the outspoken executive chairman of Strategy (formerly MicroStrategy) and the world’s top corporate Bitcoin holder, has thrown his weight behind newly appointed US SEC Chair Paul Atkins, expressing strong confidence in the agency’s future direction under his leadership. In an April 23 post on X, Saylor wrote, “SEC Chairman Paul Atkins will be good for Bitcoin,” in a clear endorsement that underscores growing optimism across the crypto industry. Atkins was officially sworn in as the 34th SEC chairman on April 21, having been appointed by President Donald Trump in late 2024. Saylor is not alone in his sentiment. Blue Macellari, head of digital assets at T. Rowe Price, echoed the optimism during an interview with Bloomberg, noting the SEC’s evolving posture under the new administration. She highlighted a notable shift in attitude, emphasizing the agency’s efforts to engage directly with the crypto community. This openness marks a stark contrast to the contentious regulatory environment under former SEC Chair Gary Gensler, whose tenure was marred by lawsuits, enforcement actions, and accusations of regulatory overreach. Vincent Liu, chief investment officer at Kronos Research, expressed particular enthusiasm about Atkins’ potential to deliver long-awaited regulatory clarity. A New Direction — Or a Conflict of Interest? Despite widespread praise from the crypto and investment community, Atkins’ appointment hasn’t been without controversy. Massachusetts Senator Elizabeth Warren, a vocal critic of the crypto industry, was quick to express concern during Atkins’ Senate confirmation hearings. She accused him of having shown “staggeringly bad judgment” during his previous tenure as an SEC commissioner from 2002 to 2008, which encompassed the buildup to the 2008 global financial crisis. Warren also cited potential conflicts of interest due to Atkins’ former role at Patomak Global Partners, a consulting firm that advised FTX, the now-defunct crypto exchange that collapsed in 2022 under allegations of massive fraud. Atkins disclosed a $327 million personal and family financial portfolio in a public ethics filing, raising additional eyebrows about potential conflicts. These concerns were mirrored in other corners of the administration, including Trump’s newly appointed AI and crypto czar David Sacks, whose VC firm reportedly sold over $200 million in crypto and related stocks before his appointment. In response to concerns over regulatory impartiality, Vincent Liu emphasized the need for robust ethics oversight and mandatory disclosures of past industry ties. “To maintain public trust and avoid even the perception of regulatory conflict of interest, it’s essential to implement clear guardrails,” Liu said. This includes transparent public comment periods for all crypto-related rules and full ethics disclosures. What Does Atkins Mean for Crypto? Crypto insiders say Atkins' track record and regulatory philosophy may be better aligned with innovation than previous administrations. Bitwise Asset Management’s general counsel Katherine Dowling called him a “great choice” in December, while Ripple Labs CEO Brad Garlinghouse stated Atkins would “bring common sense back to the agency.” With the SEC’s stance on digital assets likely to shape the future of the trillion-dollar crypto industry, Atkins’ leadership will be critical in defining what regulatory clarity and innovation-friendly oversight actually look like in practice. Already, insiders expect Atkins to accelerate progress on: Finalizing crypto custody rules Clarifying the security vs. commodity status of key digital assets Improving dialogue between regulators and industry stakeholders Enabling regulated crypto financial products for institutions and retail investors alike The next few months will test Atkins' ability to win the trust of both the public and the fiercely independent crypto community. For Michael Saylor and others at the forefront of corporate Bitcoin adoption, the stakes are higher than ever. Strategy now holds over 534,741 BTC, and regulatory clarity could significantly influence the company’s future capital deployment strategy and shareholder value.

2025-04-24 08:30

Alabama was the fifth state to withdraw from a coordinated legal effort targeting Coinbase's staking services. The move happened after the SEC’s formation of a task force to develop clearer rules for the digital asset space, which could mean that there is a shift toward unified federal oversight. Despite this progress, five states still continue their legal pursuit. Coinbase is capitalizing on this regulatory momentum by expanding its US operations, and announced plans to hire 130 new employees in Charlotte, North Carolina. These employees will mostly work in compliance and customer support roles. Riot Platforms secured a $100 million Bitcoin-backed loan from Coinbase. With its large BTC treasury and ongoing investments, Riot is signaling confidence in Bitcoin’s long-term value, while Coinbase cements itself as a major player in the crypto-fintech space. States Ease Off Coinbase The Alabama Securities Commission officially dropped its lawsuit against Coinbase, which is yet another positive step in the changing relationship between US regulators and the crypto industry. The lawsuit was originally filed in June of 2023, and it accused the crypto exchange of violating securities laws by offering staking services to customers. Alabama was one of ten US states, including California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington, and Wisconsin, that collectively took legal action against Coinbase over the matter. According to an April 23 legal filing that was shared by Coinbase’s chief legal officer, Paul Grewal, Alabama referred to the US Securities and Exchange Commission’s (SECs) ongoing efforts to establish clearer regulations for the crypto industry as the reason for dropping the case. The filing pointed out that the SEC recently announced the creation of a task force tasked with guiding rule-making for the regulation of digital assets. In light of this, the Commission decided that it will be better to pause state-level enforcement while federal policymakers work toward cohesive regulatory frameworks. Alabama is the fifth state to withdraw from the coordinated legal action, after the earlier dismissals by Vermont, South Carolina, and Kentucky. Vermont was the first to withdraw its lawsuit on March 13, followed by South Carolina on March 28 and Kentucky on April 1. Despite this growing trend, five states are still pursuing litigation against Coinbase, with four of them continuing to enforce bans on staking services offered by the exchange. Paul Grewal criticized the remaining states for what he described as unnecessary use of taxpayer funds and for limiting consumer choice by restricting access to staking services. He believes that while some progress has been made, the crypto sector still faces a lot of regulatory uncertainty and a fragmented landscape that needs to be addressed through coordinated action at both the state and federal levels. Coinbase Expands to Charlotte with 130 New Jobs What does Coinbase plan on doing with its newfound freedom? The exchange is deepening its commitment to the US market with plans to hire more than 130 employees in Charlotte, North Carolina. This means that the company is making a strategic investment in one of the country’s rising fintech and financial hubs. A company spokesperson confirmed the move, and explained that the hiring drive will primarily focus on roles in Compliance and Customer Support over the next six months. The spokesperson also mentioned that Charlotte’s growing reputation as a center for financial and tech talent makes it a compelling location for Coinbase’s physical expansion. Despite this new office, Coinbase still operates as a remote-first company. It adopted this model in 2020. While most of its workforce has the flexibility to work from home or in a hybrid model, the company acknowledges that certain roles are more effectively carried out in-office. About 95% of Coinbase employees currently have the choice to work remotely, from an office, or a mix of both. The company described its approach as a deliberate strategy to engage top talent wherever it may be located. The Charlotte expansion is part of a broader hiring initiative under CEO Brian Armstrong’s leadership. In early March, Armstrong stated that Coinbase plans to hire approximately 1,000 new US-based employees this year. He attributed the hiring surge to favorable regulatory signals from President Donald Trump’s administration, which took a pro-crypto stance. The additional hires will increase Coinbase’s headcount by roughly 27%, based on the latest data showing 3,772 current employees . Coinbase employee data (Source: Stock Analysis ) Coinbase’s push into Charlotte also coincides with its consideration of applying for a US federal bank charter, which will greatly expand its regulatory footprint and capabilities. Together, the hiring spree, regional expansion, and potential for broader financial services suggest that Coinbase is positioning itself to play a much bigger role in the US crypto and financial landscape. Riot Secures $100M Bitcoin-Backed Loan from Coinbase Meanwhile, Riot Platforms recently secured a $100 million credit facility from Coinbase, by using a portion of its sizable Bitcoin holdings as collateral. This is the Bitcoin mining firm’s first Bitcoin-backed loan, and according to CEO Jason Les, the funds will support general corporate operations and strategic growth initiatives. The credit line is set to mature in one year, with an option to extend it for another year. It carries an annual interest rate tied to the federal funds rate plus 4.5%, which currently puts it above 9%. The loan is backed by Riot’s very large Bitcoin treasury, which totals 19,223 BTC. This makes the company the third-largest corporate holder of Bitcoin. At current market prices, these holdings are worth approximately $1.8 billion. At press time, Bitcoin was trading hands at $92,994 after its price managed a small 0.04% price climb over the past 24 hours. BTC was, however, still in the green by more than 10% on its weekly time frame, and by more than 7% over the past 30 days. This is according to data from CoinMarketCap . BTC’s price action over the past 24 hours (Source: CoinMarketCap ) Riot has been actively expanding its Bitcoin reserves, including a $500 million purchase in December, and recently announced a plan to raise another $500 million through a private bond offering that will be aimed at funding even more BTC acquisitions. Top 10 largest Bitcoin holding companies (Source: BitcoinTreasuries.Net ) On April 23, shares of Riot Platforms surged by over 8% as Bitcoin miners and broader markets experienced a rally. Still, the company’s stock struggled throughout the year, and fell more than 40% since Bitcoin’s post-inauguration peak. Despite market volatility, Riot closed 2024 with record earnings, and reported $376.7 million in revenue and $109.4 million in net income. The firm’s next earnings call, covering the first quarter of 2025, is scheduled for May 1.

2025-04-24 08:18

U.S. spot exchange-traded funds based on Bitcoin have recorded record inflows over the past three months. The high performance indicates investors' confidence in the long-term growth of the main cryptocurrency's value. In addition, there are clearly visible signs of normalization of the market situation after the adoption of new customs tariffs by the U.S. government on the initiative of President Donald Trump. That is, in general, the situation with the coin industry has become much better. What's happening with Bitcoin ETFs Investment in Bitcoin-ETFs has recovered to levels seen in January. This indicates a return of positive investor sentiment after fears of a global trade war that essentially started but just as quickly ended. As a result, U.S. spot Bitcoin ETFs recorded inflows of $912 million through April 22. This is the largest result since January 17, 2025, that is, in more than three months. Investor optimism increased after U.S. President Donald Trump announced an impending reduction in import duties on Chinese goods, taking a softer stance in negotiations. Lower tensions and increased inflows into ETFs helped Bitcoin cross the $94,000 mark for the first time in seven weeks today. The U.S. Dollar Index (DXY), which reflects the dollar's strength against a basket of major currencies, has fallen 9 percent since the start of 2025, hitting a three-year low of around 98.8 points. This index was last recorded in April 2022. Crypto and traditional markets are ”balancing political tensions and economic reality,” with Bitcoin showing a strong recovery thanks to ”strong inflows into ETFs, institutional buying and a weak dollar.” This statement was made by Nexo analyst Ilya Kalchev. Here is his comment: Bitcoin's strength against a weak dollar, record gold prices and a new round of institutional interest shows how the market is redefining security. The narrative has clearly shifted. Bitcoin is no longer trading in the shadow of the technology sector - it is becoming a tool through which macroeconomic uncertainty is revalued. Nansen CEO Alex Svanevik also noted Bitcoin's resilience, emphasizing that over the past two weeks the asset has become ”less like Nasdaq and more like gold.” At the same time, on April 21, BitMEX co-founder Arthur Hayes suggested that this could be the ”last chance” to buy Bitcoin cheaper than $100,000, because the upcoming fiscal policy of the U.S. Department of the United States will be the next major catalyst for growth in the price of the main cryptocurrency. Comparison of Bitcoin with other global assets Bitcoin also overtook Alphabet (Google) today, along with silver, to become the world's fifth most valuable asset by market capitalization. As of April 23, BTC's capitalization rose to $1.87 trillion, slightly surpassing Alphabet's estimate of $1.859 trillion, according to Asset Rankings. BTC is now second only to gold, Apple, Microsoft and Nvidia. Of course, comparing the capitalization of a cryptocurrency and an entire company with its products and production is not quite right, but the overall trend is still noteworthy. Bitcoin's advantage over Alphabet has coincided with its continued move away from its longstanding correlation with U.S. tech stocks - especially in April, when the price of BTC surged 15 percent amid the Nasdaq 100's 4.5 percent return over the same period. This divergence followed several months of disappointment for bulls, who expected stronger growth after the US presidential election, which Trump won. However, even despite the April gains, the BTC price is still 14 percent below the all-time high of $108.7 thousand dollars reached in January. A macro analyst under the nickname Fejau emphasized that capital outflows from U.S. assets are likely to play into Bitcoin's hands, as it is impossible to impose duties on it. That said, it ”gives a high beta coefficient for a portfolio without the risks inherent in the U.S. tech sector.” The current market phase is what Bitcoin was created for. Once the market downturn is over, it will be the first to break out. Meanwhile, Alphabet is facing challenges in the form of regulatory pressure, antitrust litigation and declining digital advertising revenue. The rise of competitors focused on artificial intelligence and lowered growth forecasts also undermine confidence in Google's long-term leadership. By comparison, Bitcoin's $1.87 trillion valuation now exceeds the value of two companies Tesla. This electric car maker added BTC to its balance sheet in 2021, when the cryptocurrency's price was around $33,500. Now the return on that investment is about 180 percent. Tesla released its financial report today. It turns out that the giant is still storing 11,509 bitcoins, which are currently valued at $1.07 billion. The bottom line Amid a weakening dollar, renewed institutional interest and record inflows into ETFs, Bitcoin is finally emerging from the shadow of traditional markets. Its comparison with gold-like assets no longer looks like a stretch, with the cryptocurrency increasingly becoming the main beneficiary of global instability in the long run.

2025-04-23 23:19

The creator of the Bitcoin growth prediction model called Stock-to-Flow (S2F) has criticized Ethereum and mocked the project's founder Vitalik Buterin. The crypto enthusiast under the pseudonym PlanB stated that a significant portion of ETH is allegedly distributed by pre-mining, and the project itself is extremely centralized. However, many commenters on Twitter disagreed with this opinion, and his brainchild S2F really failed. Conflict with Vitalik Buterin On April 20, PlanB reposted Buterin's tweet from June 2022. In the previous post, the developer wrote that the S2F model ”doesn't look good right now,” and also voiced arguments against focusing on its predictions. It's actually Ethereum that's looking bad right now. I know it's not decent to gloat and all that, but I believe that shitcoins like ETH that are centralized and distributed by pre-mining, use PoS instead of PoW, change the rules of issuing an offer at the snap of a finger - are hurting the industry and deserve their criticism. Thus, the user copied the structure of Buterin's tweet and mocked him. In a separate tweet, PlanB noted that a full-fledged node of the Ethereum network requires nine terabytes of disk space to run and therefore he ”can't run it” on his hardware. Apparently, he was referring to the Ethereum archive node, which according to real network users requires about 21.8 terabytes when using the Geth client. A full-fledged Ethereum node on the Geth client with old state pruning on standard settings requires 1.28 TB. Such a node does not have access to all information about the blockchain and cannot generate Merkle proofs for old blocks, which limits its ability to research and find bugs. Nevertheless, such nodes can fully verify blocks and transactions, and thus are somehow suitable for blockchain operation and security. Full-fledged Bitcoin nodes require about 700 gigabytes of disk space and significantly less computing resources. This makes it easier to run nodes, increases their total number and promotes greater decentralization of the network. What is Stock-to-Flow? However, not all commentators found Efirium's criticism valid. For example, Trugard CTO and co-founder Jeremiah O'Connor stated the following. PlanB's opinion is a classic example of a Bitcoin maximalist's point of view. Loud, opinionated and without half of the picture. O'Connor explained that Ethereum and Bitcoin serve different functions. He noted that ”Ethereum's nodes are larger and more complex, as ETH is not just digital gold, but a full-fledged global computer.” The expert also admitted that dependence on centralized data providers like Infura is a problem for Ethereum. However, he added that there are trade-offs for centralization in every ecosystem, and network developers are already working to reduce it. Here is a comment on the topic: Calling ETH a scam just because it is not Bitcoin is the same as calling smartphones a scam because they are not corded phones. The expert noted that these are different tools with different tasks. He called Bitcoin a ”reliable means of storing value,” while Ethereum is a ”tool for developers,” thus emphasizing the fundamental value of projects. PlanB also questioned Buterin's influence on the development of Ethereum, calling him a ”weak link” in the altcoin community. That view is also easily refuted: this week, Ethereum Foundation member Tomasz Stanczak reported that Buterin is stepping away from day-to-day operations, to focus on long-term research. Which means his efforts in more pressing areas are not required. Finally, another PlanB argument is the 2016 DAO hack, where after the incident itself, the Ethereum network rolled back transactions and thus canceled fresh user activity. It's worth noting that Bitcoin also had a similar incident in its history. On August 15, 2010, a transaction was created due to a bug that allegedly involved 184 billion BTC in block number 74638. Satoshi Nakamoto, who was then still actively involved in the development of the main cryptocurrency, along with other programmers, released an update, rolling back the network to block 74637 and fixing the consequences of the incident. That is, Bitcoin experienced a kind of blockchain rollback at an early stage as well. The S2F model, proposed by PlanB almost a decade ago, is used to predict the value of Bitcoin based on its scarcity. It compares the amount of an asset in circulation (stock) to its annual issuance (flow). The higher the ratio, the more scarce the asset is considered to be. For Bitcoin, the model takes into account the reduction in the reward for mining during the halving procedure every 210,000 blocks or four years, and makes the prediction that the price of BTC should increase significantly as scarcity increases. However, over time, the model began to seriously outperform the actual market situation. After the 2020 halving, Bitcoin did increase in value, but already in 2022-2023, the price of BTC deviated significantly from the projected S2F values towards lower values. Critics point out that the model does not take into account macroeconomic factors, institutional demand, regulatory risks and overall market conditions. In addition, it is important to realize that the key tool for changing the rate of Bitcoin and other assets is the demand of buyers, not the trivial rate of new coins. The bottom line As a result, Bitcoin turned out to be a less predictable asset than anticipated and depends on a multitude of factors unrelated to issuance. This is why even PlanB himself later admitted that S2F no longer reflects the real market dynamics of the main digital asset. It is ironic enough that under such circumstances he is ready to criticize the actions and opinions of other well-known personalities in crypto, who have done much more for the development of the sphere than he has.

2025-04-23 20:21

This was the highest single-day inflow since January, and it was likely driven by easing trade tensions. This surge also helped push Bitcoin’s price above $93,000 and reignited bullish forecasts. Some analysts even predict a potential rise to $200,000 by the end of 2025. Meanwhile, Tesla still seems confident in BTC’s long-term potential as the company held on to its Bitcoin during a rough first quarter of the year. Bitcoin ETF Inflows Surge Investments in US spot Bitcoin exchange-traded funds (ETFs) recently rebounded very strongly, with inflows reaching levels that were last seen in January. According to data from Farside Investors , April 22 saw over $912 million in cumulative net inflows into Bitcoin ETFs. This was the largest single-day investment since Jan. 21. Bitcoin ETF flow (Source: Farside Investors ) This surge reflects a major turnaround in investor sentiment, which was previously dampened by concerns over global trade tensions. Luckily, market optimism was revived after comments from US President Donald Trump, who indicated that he might ease tariffs on Chinese imports. His softer stance appeared to alleviate fears of a prolonged trade standoff, and also fueled renewed confidence among institutional investors. The resurgence in ETF activity also contributed to a noticeable rise in Bitcoin’s price , which climbed above $93,000 for the first time in seven weeks. Analysts believe that these developments, alongside increasing institutional interest, could accelerate Bitcoin’s historical four-year cycle and potentially push the cryptocurrency to new all-time highs before the end of 2025. BTC’s price action over the past 24 hours (Source: CoinMarketCap ) Another supporting factor is the weakening US dollar. The US Dollar Index (DXY) dropped by 9% since the beginning of the year, and reached a three-year low of 98.8. This trend enhanced Bitcoin’s status as a safe-haven asset. Market analysts, including Bitget’s Ryan Lee , pointed out the rising correlation between Bitcoin and gold as investors look for hedges against economic uncertainty. Iliya Kalchev , an analyst at Nexo, believes that Bitcoin is no longer simply riding the coattails of the tech sector, but stepped up as a distinct barometer of macroeconomic sentiment. He said that the convergence of dollar weakness, record-high gold prices, and increased institutional buying is reshaping the market’s perception of what constitutes financial safety. Nansen CEO Alex Svanevik agrees with this, and suggested that Bitcoin’s recent performance reflects a shift toward a more mature asset class, which is increasingly seen as a store of value similar to gold rather than a tech-sector proxy. However, despite its resilience, some analysts still warned that ongoing concerns about a potential economic recession could temper Bitcoin’s upward momentum. BitMEX co-founder Arthur Hayes described the current price level as a critical opportunity for investors, and suggested that it may be the “last chance” to buy Bitcoin under $100,000 before further gains are triggered. Bitcoin Could Hit 200K in 2025 Bitcoin's price could even soar to $200,000 per coin by the end of 2025, driven by surging demand from institutional investors. This is according to recent research reports . Analysts at Standard Chartered and Intellectia AI pointed to the rapid adoption of ETFs and heightened interest from market participants looking to hedge against macroeconomic risks as key forces behind this bullish forecast. However, they also warned that this outlook is not guaranteed due to unforeseen regulatory or geopolitical events that could derail Bitcoin’s upward trajectory. The optimism surrounding Bitcoin’s price potential has been boosted by its recent rally above $93,000 for the first time in weeks, which coincided with the highest daily net inflows into US spot Bitcoin ETFs since January. This momentum is being supported by ongoing demand from major exchanges like Coinbase and Kraken, as well as corporate entities adding Bitcoin to their treasuries. In fact, these entities now collectively hold close to $65 billion in BTC. Bitcoin ETF flows (Source: CoinGlass ) Analysts also point to a broader shift in investor behavior. Gold and Bitcoin are increasingly seen as structural components in diversified portfolios as they offer protection against inflation and instability. However, this narrative is not without complications. While Bitcoin has often been likened to gold as a macroeconomic hedge, recent data suggests its correlation with gold weakened. Instead, Bitcoin revealed a closer alignment with equity markets. On the other hand, some people argue that the influx of institutional capital through ETFs may paradoxically weaken Bitcoin’s appeal as a hedge, by tying its performance more closely to traditional financial instruments. Spencer Yang , a core contributor at Fractal Bitcoin, shared that real resilience in Bitcoin’s future lies beyond speculative interest. He believes that sustained growth will depend on active network usage, rather than simply being held as a store of value on institutional balance sheets. Tesla Holds On To Bitcoin Some companies are already aware of Bitcoin’s long-term potential. Tesla held on to its Bitcoin holdings through the first quarter of 2025 , even as the company faced a big decline in both revenue and profit. The news came alongside CEO Elon Musk’s announcement that he plans to scale back his time spent working with the Trump administration as head of the Department of Government Efficiency, or DOGE, in order to focus more on Tesla. Musk’s commitment to reprioritize Tesla seems to have reassured investors, as Tesla’s stock rose 4.6% during regular trading on April 22 and climbed an additional 5.4% in after-hours trading to reach $250.80. Tesla YTD stock price (Source: Google ) Despite the positive market reaction, Tesla’s Q1 financial results revealed some challenges. The company posted $19.34 billion in revenue, missing Wall Street expectations by almost 8% and falling 9.2% compared to the same quarter last year. Net income plummeted to $409 million, which was a steep 80.8% decline from the previous quarter and a 70.5% drop year-over-year. While these figures point to mounting pressure on Tesla’s operations, investors are still encouraged by Musk’s renewed focus on the company. Tesla’s digital asset portfolio also experienced a shift in value, with its Bitcoin holdings dropping from $1.076 billion to $951 million in Q1. However, the recent market recovery pushed the value of Tesla’s 11,509 BTC back above $1.07 billion. The company’s Bitcoin stash remained untouched since June of 2022, and its valuation now reflects new Financial Accounting Standards Board rules that allow companies to report crypto assets at fair market value rather than only recording losses. During Tesla’s April 22 earnings call , Musk explained that he will be dedicating a lot more of his time to Tesla in the coming months. He explained that much of the foundational work in launching DOGE has already been completed and he plans to stay involved only a day or two per week going forward to maintain oversight. Tesla shares have struggled overall in 2025, and are down more than 37% year-to-date due to weakening sales, increased political distractions involving Musk, and economic uncertainty surrounding the Trump administration’s tariff policies. Nevertheless, Musk’s refreshed commitment to Tesla and the steadiness of its Bitcoin strategy provided a very welcome positive signal to investors.

2025-04-23 16:30