Draper predicts $250k Bitcoin by 2024 on ETFs and halving

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Draper predicts $250k Bitcoin by 2024 on ETFs and halving

Venture capitalist Tim Draper predicts a significant rise in Bitcoin’s value, potentially reaching $250,000 by the end of 2024. Draper cites the anticipated inflow from spot Bitcoin ETFs and the upcoming Bitcoin halving as key drivers of this surge. He suggests that Bitcoin ETFs provide a more accessible investment option for those hesitant about self-custody and also act as a safeguard against fiat currency devaluation.

Draper emphasizes Bitcoin’s finite supply and its growing use as a payment method as factors that will bolster its appeal, especially as fiat currencies face inflationary pressures. He views Bitcoin as a secure alternative to traditional currencies, which are subject to political and economic fluctuations that can erode their value over time.

The upcoming fourth Bitcoin halving, expected on April 20, is another event Draper believes investors should not overlook. He equates the halving to a fundamental economic principle where a decrease in supply, coupled with an increase in demand, naturally leads to higher prices. Draper also advocates for a modest Bitcoin investment as a hedge against potential bank failures and the weakening of sovereign currencies.

Bitcoin surge to $72k liquidates $102m in shorts

Bitcoin’s price surge past $72,000 has triggered a massive liquidation of short positions, totaling over $102 million in the past day. The cryptocurrency’s ascent towards $73,000, just shy of its record high, has led to the accumulation of new short bets. Data from CoinMarketCap indicates a slight 0.55% dip in Bitcoin’s value in the last 24 hours, with the price hovering above $70,400.

The market witnessed a significant shakeout of leveraged positions, with Coinglass reporting $186.8 million in total liquidations, of which Bitcoin shorts constituted $33.9 million. The largest single liquidation order was a $4.49 million Bitcoin position on Binance. Despite this, the recent short liquidations were less than the $38 million seen on April 2, which also saw a sharp $165 million leverage wipeout in under two hours.

As Bitcoin approaches the $73,000 mark, analysts are closely monitoring the potential for further short squeezes, with Binance data suggesting over half a billion dollars in shorts could be liquidated at this level. The recent price movements and liquidations have led to a reset in Bitcoin futures funding rates, indicating a healthier market sentiment. This price action confirms a bullish breakout pattern, as noted by crypto analysts, with expectations of continued momentum influenced by spot ETF inflows and the upcoming Bitcoin halving event.

Voyager secures $484m for creditor repayment

Voyager Digital, the bankrupt cryptocurrency firm, has successfully secured $484 million to repay its creditors, a sum that represents about a quarter of the total claims against the company. The funds were recovered through settlements with FTX and ongoing litigation with Three Arrows Capital, as well as from Directors and Officers insurance claims. The majority of the funds, approximately $450 million, come from the settlement with FTX, following Voyager’s Chapter 11 bankruptcy filing amidst the 2022 crypto market turmoil.

The company is also expecting to receive additional funds from the liquidation of Three Arrows Capital’s assets, with $20.43 million already allocated to Voyager as part of an initial distribution. Moreover, a minimum of $14.35 million will be directed to creditors from a D&O insurance settlement. These developments are part of Voyager’s efforts to navigate its financial recovery and manage operational challenges, such as the significant number of uncashed checks issued to creditors.

Despite the progress in financial recovery, Voyager continues to address the fallout from an FTX data breach that compromised creditor information. The company has set a deadline for creditors to cash in their checks, after which they will become void. Voyager’s restructuring plan, as of May 2023, aims to allow customers to recover 35.7% of their claims in cryptocurrency or cash, following a substantial settlement with the FTC in November 2023.

SEC targets Uniswap with enforcement notice

The U.S. Securities and Exchange Commission has delivered a Wells notice to Uniswap, a leading decentralized exchange, indicating potential enforcement action. Uniswap’s chief legal officer, Marvin Ammori, expressed disappointment on social media, highlighting the lack of regulatory clarity for self-custodial, non-intermediated products like Uniswap. The notice allows Uniswap to argue against the SEC’s proposed action, emphasizing that the protocol does not fit the legal definitions of a securities exchange or broker.

Uniswap, which operates on the Ethereum blockchain, facilitates the swapping of crypto tokens without traditional intermediaries. The SEC’s scrutiny of Uniswap Labs, the developer behind Uniswap, dates back to 2021, and has led to the delisting of certain tokens in response to regulatory pressures. Uniswap Labs maintains that it merely develops the interface for the protocol, which is autonomous and publicly available code.

The SEC’s action against Uniswap comes as part of a broader trend of regulatory challenges facing crypto exchanges and DeFi protocols. In contrast to the SEC’s approach, the European Union is progressing with its Markets in Crypto-Assets (MiCA) regulation, aiming to assess the need for specific regulations for the DeFi market by the end of 2024. This includes considering how to regulate decentralized systems without a clear issuer or service provider.

MACD histogram and crossover trading strategy

MACD trading strategy

The MACD histogram is an essential tool for traders, providing insights into the momentum of the market by illustrating the distance between two moving averages. Here’s a brief on how to interpret this powerful indicator:

🔹 The MACD histogram crossover aligns with the moving averages crossover, offering a clear signal for potential buying or selling opportunities.

📊 By examining the chart, one can observe these crossovers and their correlation with shifts in market momentum. The vertical lines on the BTC/USD daily chart pinpoint the exact moments of the MACD crossover: initially bearish, followed by bullish, and turning bearish once more. The final bearish crossover is particularly noteworthy, preceding a significant price decline of nearly 50%.

🔄 Each crossover represents a critical juncture where the balance of power shifts between buyers and sellers, akin to the swing of a pendulum between bullish and bearish sentiment.

To gain a deeper understanding of the MACD histogram and how to incorporate it into your trading strategy, visit GoodCrypto for a comprehensive article that explores this topic in detail. Dive into the full article here!

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April 11, 2024

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