Bitcoin Soars Despite Bankruptcy Reports – Here’s What You Need to Know

The Most Recent Crypto Market Price Changes in the Context of February 12, 2024

Bitcoin stays below $48K while Immutable X experiences significant growth.

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Despite bitcoin (BTC) starting the week lower, the leading cryptocurrency by market value has risen more than 13% in the seven days to Feb. 12, the biggest one-week gain since October. The Blocking.net 20 Index, a measure of the biggest cryptocurrencies, added 11%. Continued inflows into the U.S.-based spot BTC exchange-traded funds (ETFs) probably overshadowed reports of bankrupt crypto lender Genesis seeking approval to liquidate its $1.6 billion bitcoin holdings. Ether (ETH) was down almost 2% on Monday and bitcoin lost around 1%. The token of Immutable X (IMX), a layer-2 scaling solution on Ethereum that focuses on NFTs and gaming, jumped as much as 8% over the same period. IMX has gained 33% in seven days. At the end of January Immutable launched zkEVM early stage mainnet access. The ecosystem is supposed to help games thrive, offering gas-free interaction for gamers and smart contract compatibility.

The news of bitcoin’s rise amidst reports of crypto lender Genesis filing for bankruptcy can be likened to a superhero emerging victorious despite being surrounded by villains. Just when it seemed like bitcoin could be in trouble, it soared to new heights, leaving its adversaries in the dust.

Philippines Plans to Issue a Central Bank Digital Currency (CBDC)

The Philippines is likely to issue a wholesale central bank digital currency (CBDC) within two years, central bank Governor Eli Remolona Jr told journalists, but doesn’t plan to use the blockchain or digital ledger technology that underpins many virtual assets. “Other central banks have tried blockchain, but it didn’t go well,” Remolona said, the Inquirer reported Monday. CBDCs are digital tokens issued by central banks. Retail CBDCs can be used by the general public whereas wholesale ones are exclusively for institutional use. The Philippines central bank started an exploratory study into CBDC’s in 2020. The Bank for International Settlements, which coordinates between central banks worldwide, in November said the institutions aren’t sufficiently prepared for the risks posed by CBDC.

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The Philippines’ decision not to use blockchain or digital ledger technology for its CBDC is like a general refusing to utilize a highly advanced weapon in battle. While other central banks have attempted blockchain solutions, the Philippines is taking a different path. However, it remains to be seen if this decision will jeopardize the security and efficiency of their CBDC.

NY Attorney General Amplifies Civil Fraud Case Against Digital Currency Group

New York Attorney General Letitia James amplified the civil fraud case against Digital Currency Group (DCG), now saying the company is responsible for $3 billion in investor losses tied to the Gemini Earn product and to direct investments with Genesis, according to a Friday court filing. As stated in October’s initial $1 billion fraud lawsuit against DCG, its defunct lending platform Genesis and Gemini Trust Co., the companies are accused of misleading investors and assuring them of the safety of their money even as the companies’ managements were aware that doom fast approached them. The fraud case focused at first on the Gemini Earn investment program that Genesis and Gemini ran together, but after the lawsuit, James’ office said many more investors raised complaints of being swindled by Genesis more directly.

The civil fraud case against Digital Currency Group feels like a never-ending rollercoaster ride. Just when you think it’s reaching its climax, it takes another thrilling twist. The increased allegations and the involvement of more investors suggest that the case is far from over, and the true magnitude of the fraud may still be uncovered.

Chart of the Day

• The chart shows the ratio between Deribit’s ether and bitcoin DVOL indices. DVOL represents annualized 30-day implied volatility or expectations for price turbulence over the next four weeks.
• The negative ratio shows that ether volatility is underpriced relative to bitcoin, even though Ethereum’s Dencun upgrade is just four weeks away.
• Source: Amberdata

Analysis:

The chart reveals an interesting relationship between ether and bitcoin volatility. Despite an upcoming upgrade on the Ethereum network that could potentially cause turbulence, ether’s volatility is considered relatively low compared to bitcoin. This indicates that the market may be underestimating the potential impact of the upgrade. Investors should remain cautious and keep a close eye on the developments surrounding this upgrade.

Trending Posts

• Ethereum Validator Entry Queue Signals Renewed Interest in Staking
• New Zealand Central Banker Adrian Orr Says Stablecoins Aren’t Stable: Report
• Ripple-Owned Crypto Custody Firm Metaco’s CEO and Head of Product Depart

Edited by Sheldon Reback.

Reference List:

1. Biggest Crypto Gainers Today: Uniswap, AZR, YES, Pandora
2. TrueUSD Wobbles Towards $1 Peg Amid Reported Redemption Issues
3. An Exploratory Study into CBDC’s in 2020
4. Prepared for the Risks
5. Ethereum Validator Entry Queue Signals Renewed Interest in Staking
6. New Zealand Central Banker Adrian Orr Says Stablecoins Aren’t Stable: Report
7. Ripple-Owned Crypto Custody Firm Metaco’s CEO and Head of Product Depart

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