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Crypto Exodus: 6 Weeks Of Consecutive Outflows Raise Alarms Amid Shifting Sentiment

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Crypto investment products have reported their sixth consecutive week of outflows, according to data from CoinShares, raising concerns among investors as the digital asset market faces challenges and shifting sentiment between regions.

For the week ending September 24th, the total outflows from digital asset investment products amounted to $9 million. This prolonged streak of outflows reflects a cautious approach among investors in the cryptocurrency space as the market grapples with regulatory uncertainty and other factors.

This week’s notable development was the significant sentiment divergence between European and US investors. While European investors seized the opportunity presented by recent regulatory disappointments, pouring in a total of $16 million, their counterparts in the United States withdrew $14 million.

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This contrasting sentiment highlights the varying attitudes towards cryptocurrency investments in different parts of the world.

Altcoin Space Attracts Discerning Crypto Investors

Amidst the outflow trend, the altcoin space has a silver lining. Investors are displaying discernment by directing their funds towards specific cryptocurrencies. Notably, XRP and Solana have continued to garner investor interest, with inflows totaling $0.66 million and $0.31 million, respectively.

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Bitcoin saw minor outflows for the third consecutive week, totaling $6 million. Additionally, short-Bitcoin investment products experienced outflows of $2.8 million. While there was a brief influx of $15 million into short-Bitcoin products earlier in the month, this appears to have been an isolated event. 

Over the past 22 weeks, outflows have dominated, amounting to a substantial 78% of assets under management (AuM), indicating that investors may be relinquishing their short positions.

Ethereum has faced a similar fate to Bitcoin, with outflows for the sixth consecutive week totaling $2.2 million. The challenges faced by Ethereum and the broader altcoin market have also affected multi-asset investment products, which have witnessed a consistent trickle of outflows throughout the year. The total outflows for these products have now reached $32 million for the year to date.

In all, the cryptocurrency market continues to experience turbulence, with investors carefully assessing their options and making selective investments. However, the enduring appeal of specific altcoins like XRP and Solana demonstrates that investors are still finding opportunities amidst the challenges.

Related Reading | Crypto Cold Storage Surge: Bitcoin Investors Go Offline Amid Market Turbulence

Coinbase’s Victory in Spain: Bank of Spain Registration Expands Crypto Services

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Coinbase, a leading cryptocurrency exchange, has achieved a significant milestone in its global expansion strategy by securing registration with the Bank of Spain as an Anti-Money Laundering (AML) compliant cryptocurrency exchange and custodian wallet provider. 

This move allows Coinbase to offer its services to users in Spain, further fueling the growth of the cryptocurrency market in the country.

The official blog post from Coinbase highlighted their commitment to broadening their global presence, emphasizing Phase II of their “Go Broad, Go Deep” strategy. Users in Spain will now have access to a range of services, including custody of crypto assets, buying or selling crypto assets in legal tender, and trading crypto assets against other cryptocurrencies.

Nana Murugesan, Vice President of International and Business Development at Coinbase, expressed excitement about the registration:

We are excited to have achieved this registration from the Bank of Spain to support and grow our retail consumers, institutional clients, and developer partners in Spain.

Coinbase has been actively working to obtain various registrations and licenses worldwide. In the past year alone, the exchange secured VASP registrations in Italy, Ireland, and the Netherlands, with launches in Singapore, Brazil, and Canada. Collaborating with regional regulators aligns with Coinbase’s strategy to grow internationally.

Spain’s growing interest in cryptocurrencies is evident, with 29% of adults considering crypto as the future of finance. Cryptocurrencies have also gained traction as a payment method, surpassing traditional bank transfers in popularity. 

Bitnovo’s research indicates that many Spanish citizens view cryptocurrencies as long-term investments or a means of making payments. The development coincides with Spain’s vibrant blockchain ecosystem, featuring 178 Blockchain in Financial Services startups and high demand for blockchain skills. 

Additionally, the recent adoption of the Markets in Crypto-assets Regulation (MiCA) by the European Union demonstrates increasing regulatory clarity and support for emerging technology in the region.

Coinbase’s Revenue Diversification

Coinbase’s expansion efforts come as the company seeks to diversify its revenue streams beyond cryptocurrency trading. Despite expanding its offering to over 600 currency pairs, Bitcoin and Ethereum continue to dominate the platform’s activity, highlighting the challenges of generating trading fee revenue solely through asset expansion. 

Moreover, the company has also ventured into non-trading revenue sources, such as yield-bearing services and stablecoin-related revenue, reflecting the exchange’s adaptability in a rapidly evolving crypto landscape.

Related Reading | Belgium Welcomes Back Binance: Crypto Giant’s Rebound Amid Shifting Tides

MicroStrategy’s $147.3M Bitcoin Acquisition Dominates Crypto Trends

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Santiment, a well-known analytics platform, has reported that the keyword “MicroStrategy” is currently the hottest topic in the crypto world. This surge in interest comes on the heels of the company’s significant acquisition of 5,445 Bitcoins, worth approximately $147.3 million.

The company’s de­cision to acquire a significant amount of BTC has undoubtedly caused a stir within the­ crypto community. This move has sparked increased discussions and interest in the firm, with the­ keyword “MicroStrategy” dominating conversations re­lated to cryptocurrency.

The acquisition occurred just six days before Bitcoin’s impressive surge, propelling it above the $30,000 mark. This strategic move by MicroStrategy not only reflects the company’s continued confidence in the cryptocurrency but also reaffirms its position as one of the prominent institutional players in the digital asset space.

MicroStrategy’s Ongoing Commitment To Bitcoin

The revelation of this significant acquisition emerged yesterday when MicroStrategy disclosed its latest crypto investment. The company acquired 5,445 BTC at an average price of $27,053 per Bitcoin. 

As of September 24, MicroStrategy’s Bitcoin holdings stand at an impressive 158,245 BTC, acquired at an aggregate purchase price of approximately $4.68 billion, with an average purchase price of roughly $29,582 per Bitcoin, considering fees and expenses.

According to an official statement released by MicroStrategy on September 25, 2023, the acquisition occurred between August 1 and September 24. 

The company and its subsidiaries spent approximately $147.3 million in cash for these Bitcoins. This strategic move aligns with MicroStrategy’s ongoing commitment to Bitcoin as a significant asset in its corporate treasury.

As part of a relate­d financial maneuver, on August 1, MicroStrategy e­stablished a Sales agreement with Cowen and Company, LLC, Canaccord Genuity LLC, and Be­renberg Capital Markets LLC. In this agre­ement, they we­re appointed as sales age­nts.

This agreement allowed the company to issue and sell its class A common stock shares. The aggre­gate offering price could reach up to $750.0 million through the Agents.

On Septe­mber 24, the company successfully issue­d and sold a total of 403,362 Shares under this Sales agreement. After accounting for sales commissions, this accomplishment resulted in net procee­ds of approximately $147.3 million for the company.

In June­ 2023, the firm garnered atte­ntion by acquiring 12,333 BTC for $347 million, at an average purchase price­ of $29,668 per BTC. However, its re­cent acquisition further solidifies its optimistic outlook on Bitcoin. 

Binance Japan Pioneering Stablecoins to Fuel Web3 Adoption

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In a strategic move to fortify its comeback, Binance, the world’s largest crypto exchange, is setting its sights on expanding its footprint into the Japanese market with the launch of stablecoins pegged to the dollar, euro, and yen. This endeavor is being spearheaded by its local subsidiary, Binance Japan Inc., in collaboration with Mitsubishi UFJ Financial Group’s trust banking arm.

The ambitious plan includes the introduction of these three stablecoin variants, with a roadmap that envisions the addition of more tokens in 2024. The collaborative journey between these two entities has already commenced, marked by joint exploration and in-depth studies, a development reaffirmed by Takeshi Chino, the general manager of the trust banking unit, in an official statement. The overarching objective of this partnership is nothing short of accelerating the adoption of cutting-edge Web3 technologies within the Japanese landscape.

To bring this vision to fruition, the dynamic duo intends to harness the capabilities of a platform known as “Progmat Coin.” This platform has been meticulously crafted to align with the stringent regulatory standards governing stablecoin issuance and management within Japan. It’s worth noting that the visionary Japanese bank, Mitsubishi UFJ Trust and Banking Corporation [MUTB], which boasts the distinction of being the world’s largest by assets, is spearheading the development of the “Progmat Coin” platform.

Binance Boosting Its Comeback

This platform, in essence, serves as the bedrock infrastructure for the issuance of stablecoins, meticulously tailored to adhere to the guidelines delineated in Japan’s recently revised and enforced Payments Services Act. While the “Progmat Coin” platform presently extends support for stablecoin issuance on the Ethereum network, it harbors the potential for expansion to encompass the BNB Chain, a prospect propelled by Binance’s strategic partnership. Binance has emphasized this promising dimension in its official statement, underlining its commitment to innovation and scalability.

In a noteworthy development that underscores Binance’s resurgence, the exchange recently revealed plans to feature 34 tokens, including leading cryptocurrencies like Bitcoin [BTC], Ethereum [ETH], Cardano [ADA], and its native coin, BNB, in the Japanese market. This move marked a significant milestone as Binance made a triumphant return to Japan after a hiatus prompted by a warning from the Financial Services Agency [FSA] two years earlier, cautioning the exchange about its allegedly illegal operations. This reentry signals Binance’s determination to navigate the complex regulatory landscape while delivering innovative solutions to the Japanese crypto community.

Belgium Welcomes Back Binance: Crypto Giant’s Rebound Amid Shifting Tides

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Binance, one of the world’s largest cryptocurrency exchanges, has reopened its doors to Belgian users after a three-month hiatus prompted by a regulatory crackdown. This decision follows an order from Belgium’s financial regulator, the Financial Services and Markets Authority (FSMA), which instructed Binance to cease all cryptocurrency-related services in the country.

In June, FSMA raised concerns that Binance was offering crypto-related services to Belgian residents “from countries that are not members of the European Economic Area,” which was deemed a violation of Belgian laws pertaining to Anti-Money Laundering and Combating the Financing of Terrorism. FSMA issued an immediate cease and desist order to the exchange.

However, Binance Belgie recently announced on its official Twitter account that it is once again accepting new registrations from Belgian residents. Moreover, various Binance products and services have been made accessible to Belgian users who have accepted the new Terms of Use. The exchange expressed gratitude for the unwavering support of its community during these challenging months.

https://twitter.com/binanceflemish/status/1706310144366129565

Shake-Up At Binance.US

Whereas Binance.US is facing a series of unfortunates, after a two-year tenure, Shroder announced his departure for a “deserved break.” Approximately 100 employees also lost their jobs on the same day, accounting for about one-third of the workforce.

This leade­rship change and subsequent layoffs sparke­d a significant exodus of funds from Binance to other platforms, such as Jump, AU21 Capital, QCP Capital, and Winte­rmute. Within the crypto industry, trust and influence have become pre­ssing concerns, and these e­vents serve as stark re­minders of how managerial changes can profoundly impact cryptocurre­ncy platforms.

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Source: Blockanalia/X

Jim Graham, a cryptocurrency analyst at PsyBold, e­mphasizes the vital role of trust in the­ crypto space. According to him, crypto platforms must work towards gaining trust comparable to that of traditional banks with their we­ll-established long-term cre­dibility. However, building trust poses challenges for crypto platforms due to their re­latively short existence­ and the absence of e­xtensive regulation.

The ongoing de­bate surrounding cryptocurrency regulation contributes to the uncertainties within the­ industry. Some investors advocate for re­gulations as a means to safeguard their inve­stments, while others oppose­ it, seeing it as contradictory to the de­centralized nature of cryptocurre­ncies. This lack of clarity and regulatory ambiguity may discourage pote­ntial investors.

Related Reading | Shiba Inu’s Path to $0.0001: Predicted 2 ‘Zeroes’ Removal and a 1,500% Spike

Shiba Inu’s Path to $0.0001: Predicted 2 ‘Zeroes’ Removal and a 1,500% Spike

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Shiba Inu is presently being traded at levels around $0.000007 and faces difficulties in removing its fifth decimal place, even with the introduction of Shibarium. This year has not seen a significant uptrend in the token’s value, as the initial excitement surrounding the launch of the layer-2 network quickly faded away. It has been nearly half a year since Shiba Inu last traded with five zeros, which is putting the patience of its investors to the test. SHIB boasts nearly 1.3 million investors, and a substantial portion of them find themselves in a loss position due to the declining price.

Shiba Inu Token Forecast

Telegaon, a prominent on-chain metrics and price forecasting company, has offered an optimistic outlook for Shiba Inu. According to their price projection, Shiba Inu could eliminate two decimal places and reach $0.0001 by mid-2027. The forecast suggests that SHIB will maintain an average price of $0.000153 in 2027, following a peak of $0.000198 during the same year. This translates to a substantial increase and a potential return on investment (ROI) of around 1,500%.

However, the prediction indicates that SHIB might continue trading with three decimal places until the end of the decade. Nevertheless, the price estimate asserts that the dog-themed token is unlikely to reach $0.01 even 17 years from now. Achieving the 1-Cent milestone appears to be a formidable challenge, given the slow pace of the token burn process. The notion of Shiba Inu burning trillions of tokens annually seems more like a myth at the moment. For a more realistic price forecast on when SHIB could eventually reach the $0.01 mark, you can refer to the linked article. As of the latest update, SHIB is trading at $0.000007, marking a 0.2% decline in the past 24 hours.

Shiba Inu
Shiba Inu's Path to $0.0001: Predicted 2 'Zeroes' Removal and a 1,500% Spike 5

Furthermore, SHIB has experienced a significant drop of nearly 92% from its all-time high of $0.00008616, which it achieved in October 2021. It has been nearly two years since the dog-themed token saw a significant price decrease, and it has struggled to regain its previous peak.

Crypto Cold Storage Surge: Bitcoin Investors Go Offline Amid Market Turbulence

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A recent significant shift in Bitcoin storage practices has caught the attention of analysts. Crypto Rover, a prominent cryptocurrency analyst, recently took to Twitter to highlight a noteworthy trend: Bitcoin is being withdrawn from exchanges and moved into cold storage at an unprecedented rate. 

The shift towards self-custody of BTC signifies a growing preference among investors to secure their assets offline in wallets and hardware devices rather than keeping them readily available on crypto exchanges. 

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However, the potential selling pressure on the market is expected to decrease. This move is seen as a strategic move to HODL and ride out the turbulence in the crypto market, as opposed to panic selling during bearish phases.

Bitcoin’s Potential Surge to $200,000: Six Reasons Why

Not content with one revelatory tweet, Rover went on to speculate about the potential impact of the approval of the BlackRock Spot ETF. In a bold prediction, he suggested that Bitcoin could soar to heights exceeding $200,000 if the ETF garners the green light from regulators. 

His argument is backed by six compelling reasons that highlight the imminent possibility of this approval.

Firstly, Rover points out that BlackRock boasts an impressive track record of ETF approvals, with a staggering 99.8% success rate. Only one rejection in its history underscores the company’s expertise in navigating the regulatory landscape.

Secondly, during the tumultuous waters of the 2008 financial crisis, both the U.S. government and the Federal Reserve turned to BlackRock for guidance. This fact speaks volumes about the level of trust in the world’s largest asset manager, making it a formidable player in the cryptocurrency market.

Furthermore, the CEO of BlackRock has recently expressed a favorable stance on Bitcoin, likening it to “digital gold” and emphasizing its potential as a diversification tool within investment portfolios.

Adding to the intrigue, BlackRock has previously introduced a private Bitcoin ETF catering to institutional investors, showcasing their interest and expertise in the crypto space.

Moreover, spot Bitcoin ETFs have already gained regulatory approval and are active in both Europe and Canada, indicating a growing acceptance of these financial instruments.

Last, other major asset management firms such as Vanguard and Fidelity have submitted their own applications for Bitcoin spot ETFs during this cycle, further underscoring the rising institutional interest in cryptocurrency.

Related Reading | Bitcoin ETFs Await SEC Decision As Second Deadline Nears

Shiba Inu Forecast: Machine Learning Tool Foresees SHIB Price on October 1

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Shiba Inu (SHIB) undoubtedly emerges as one of the most beloved cryptocurrencies. This relatively new meme coin generated significant excitement in the market and managed to ascend the cryptocurrency rankings. However, its growth was hindered by the prevailing market conditions. Despite the introduction of Shibarium, the coin’s performance didn’t meet expectations. In the past month, the asset witnessed a 10.3% decrease in its value.

Despite the challenging September, the SHIB community remains hopeful for an eventful October. Currently, Shiba Inu is trading at $0.00000732, indicating a minor 0.8% decline in its daily value. Notably, earlier today, the asset saw an increase from its lowest point of $0.00000728 to as high as $0.00000741. Additionally, it’s essential to highlight that this meme coin currently maintains a price level that is 91% below its all-time high of $0.00008616.

Shiba Inu’s Trend Reversal: What to Expect in October

It appears that the meme coin is likely to maintain its current price range in the upcoming month as well. According to data obtained from the PricePredictions machine learning algorithm, SHIB is projected to trade at approximately $0.0000073 as October commences. PricePredictions utilizes a diverse set of indicators to formulate predictions for the meme coin. This forecast relies on algorithms that conduct a comprehensive analysis of indicators such as the average true range (ATR), Bollinger Bands (BB), moving average convergence divergence (MACD), and relative strength index (RSI).

Shiba Inu
Shiba Inu Forecast: Machine Learning Tool Foresees SHIB Price on October 1 8

As depicted in the chart above, the entire month of October is anticipated to be challenging for SHIB, with a downward trend expected. Currently, only 10% of SHIB holders are experiencing gains, while nearly 88% of Shiba Inu holders are contending with losses. Given the lack of significant upward movements foreseen for this meme coin, it is likely that SHIB holders will continue to experience more losses than gains in the foreseeable future.

Ethereum Faces Bearish Trends Amidst Potential Short Squeeze & Inflation Shift

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In recent weeks, Ethereum has faced a bearish onslaught, but a potential short-squeeze event may be lurking on the horizon. CryptoQuant.com’s tweet on the matter has raised eyebrows in the crypto community. 

According to the tweet, “Consistent negative funding rates can potentially trigger a cascade of short liquidations, which in turn could lead to a sudden price rebound.” The insight comes from trader Shayan, who suggests a significant price turnaround might be in the cards.

To understand this prediction, one must delve into the futures market. The Ethereum funding rates metric, which indicates periodic payments to traders based on the difference between perpetual contract markets and spot prices, has been negative. These negative readings signal a prevailing bearish sentiment among futures traders. 

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As Ethereum’s price undergoes consolidation after sharp declines, the negativity in funding rates implies that traders anticipate further price drops. However, a noteworthy aspect is the potential for a short squeeze.

A cascade of short liquidations can occur when consistent negative funding rates persist. It could result in an abrupt price rebound, catching bearish traders off guard and potentially leading to a short squeeze, where short sellers are forced to buy back their positions, further driving up the price.

Ethereum’s Shift from Deflation to Inflation

Apart from short-term price concerns, ETH has witnessed a shift in its inflationary dynamics. Recent data shows that Ethereum’s inflation rate stands at 0.270%, a notable change from the deflationary trend observed earlier this year. This shift can be attributed to decreased network activity and lower on-chain fees, which have curtailed base fee burning.

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The transition from a deflationary to an inflationary trend was primarily driven by two key events: the implementation of EIP-1559 (London hard fork) and The Merge’s switch from proof-of-work (PoW) to proof-of-stake (PoS). EIP-1559’s fee-burning mechanism and PoS consensus have significantly influenced Ethereum’s issuance rate.

In terms of transaction activity, Ethereum has experienced a noticeable lull, with daily transactions hitting significant lows in mid-year and early September. Network fees have mirrored this reduced activity, with September 9 and 10 registering the lowest daily fees of the year.

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Source: Dune Analytics

Nevertheless, Ethereum finds itself at a crossroads with potential short-squeeze risks and a shift towards inflation. The crypto market’s resilience and Ethereum’s adaptability will play crucial roles in determining its future trajectory.

Related Reading | Hong Kong’s Crypto Crisis: Mixin Network Temporarily Halts Services

Shiba Inu’s Giant Leap: Minting the Last BONE Token & Beyond

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The Shiba Inu team disclosed their latest strides towards renouncing the contract for Bone ShibaSwap [BONE], the gas token of Shibarium. As unveiled by an anonymous developer, the SHIB team is inching close to the completion of minting the remaining BONE supply. The feat, while seemingly technical, signifies a profound shift that involves surrendering control and ownership of the coveted token.

This groundbreaking development gave the birth of a placeholder token, called “Calcium.” This creation was carefully engineered for the sole purpose of disengaging the project from the BONE contract. Shiba Inu developer Kaal Dhairya sounded a clarion call of caution, resonating through the community: Calcium may exist, but it remains devoid of liquidity and is unsuitable for any trading activities.

Describing the minting of the final BONE token and the subsequent contract renunciation, Shiba Inu’s project lead recently emphasized its pivotal role in solidifying the forthcoming Layer 2 blockchain operations. As the meme token ecosystem hurtles toward a new era, he articulated,

This is a vital step in the initiation of our blockchain, as a substantial chunk of BONE is allocated to the first role in our impending system, the VALIDATORS. Furthermore, Bone will serve as a gateway to the future, functioning as the token DELEGATORS stake to partake in rewards, the GAS TOKEN for transaction fees, and an integral component of technology GOVERNANCE within our nascent system.

Shiba Inu’s BONE: Minting To Empowering Validators

The narrative unfolds further with an impressive 28.02 million BONE tokens already entrusted to the 12 validators currently presiding over Shibarium’s ecosystem. Leading the charge is Unification, with 5.53 million BONE tokens, closely followed by ShibArmy Africa, Chainmasters, and ShibArmy America, each commanding substantial holdings of 4.17 million, 4.02 million, and 4 million BONE tokens, respectively.

In essence, the ongoing journey of Shiba Inu towards contract renunciation and the empowerment of Shibarium validators stands as a testament to the resilience and dedication of the project’s community and developers.

Another noteworthy advancement occurred when the Shiba Inu hardware wallet, Tangem, joined forces with ChangeNOW, a well-known centralized cryptocurrency exchange, to introduce an innovative crypto-oriented offering named “Tangem Express.” This collaboration has ushered in a realm of opportunities within the cryptocurrency arena.