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Crypto asset manager 21Shares has announced the liquidation of two of its actively managed ETFs, ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) and ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY), in response to a broader market downturn affecting cryptocurrency prices. The ETFs, which have expense ratios of 1% and 0.93% respectively, will stop trading on March 27, with the liquidation process set to occur around March 28. This move coincides with a significant withdrawal of funds from U.S.-listed spot bitcoin ETFs, totaling over $1.66 billion this month, as investors pull out amid falling crypto values. Bitcoin has seen a year-to-date decline of over 12.8%, while the CoinDesk 20 Index (CD20) has lost about 24% of its value. Shareholders holding onto their shares until the liquidation date will receive a payout based on the net asset value of the funds.
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In a recent video, Benjamin Cowen, a prominent figure in the cryptocurrency analysis community, discussed the potential end of Bitcoin's bull cycle if the cryptocurrency falls below a critical price level. He highlighted that a drop below $60,000 could indicate the cycle's conclusion, especially if Bitcoin fails to hold above its 2024 low of approximately $71,000. Cowen compared the current market dynamics to those observed in 2017, suggesting that maintaining support above $70,000 to $73,000 could keep the bullish trend alive. He also expressed concerns about the broader market, noting that macroeconomic factors like inflation, Federal Reserve rate decisions, and tariffs are creating significant uncertainty. Cowen believes that risk assets, including Bitcoin, might not see a durable recovery until after the March options expiration, potentially extending into April, as markets await further economic data.
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Markus Thielen, head crypto researcher at 10x Research, has indicated that Bitcoin might repeat its 2024 price action, where it consolidated for most of the year after reaching an all-time high. He notes that Bitcoin's current chart shows signs of market indecision, resembling a "High and Tight Flag" pattern, which typically signals bullish continuation but currently suggests weakness. Despite Bitcoin's recent dip below $90,000, there's little incentive for investors to buy the dip, as evidenced by the outflows from spot Bitcoin ETFs. Thielen advises closing short positions but remains cautious about a strong price recovery in the near term. This comes amidst growing macroeconomic uncertainty, with other analysts predicting further declines for Bitcoin, potentially testing lower support levels.
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The article by Sasha Shilina discusses the potential transformation of the scientific research landscape through the integration of decentralized science (DeSci) and artificial intelligence (AI), termed DeScAI. Shilina highlights how traditional scientific institutions, with their gatekeeping mechanisms like paywalled journals and bureaucratic funding processes, are ill-prepared for this shift. DeSci, which has grown from a niche concept to a significant movement with a market cap of around $1 billion by early 2025, aims to dismantle these barriers. AI's role in this new paradigm is not just as a tool but as a fundamental component that could enhance the speed and quality of research by analyzing vast datasets, identifying patterns, and facilitating real-time, transparent peer reviews. DeScAI proposes a world where research data and findings are freely accessible, and where AI helps in creating a dynamic, interconnected research ecosystem. This system would allow for global collaboration without the constraints of geography or institutional affiliations, potentially leading to a more democratic and efficient scientific community. However, Shilina acknowledges that resistance from established institutions is expected, as they might see this shift as a threat to their control over knowledge production.
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This week's financial news highlights the evolving relationship between traditional finance and cryptocurrencies. Binance's founder, Changpeng Zhao, refuted a Wall Street Journal report suggesting he was seeking a pardon from the Trump administration, clarifying that no such discussions took place. Meanwhile, Coinbase announced its registration with India's Financial Intelligence Unit, signaling its intent to expand retail services and invest further in the region. Bit Digital showcased a pivotal year with a 140% revenue increase, driven by the expansion into high-performance computing (HPC) alongside its traditional bitcoin mining operations. Analyst updates included JPMorgan's adjustments to bitcoin miner models, with IREN being highlighted as a top pick due to its strong mining operations and potential in HPC. Additionally, Cantor Fitzgerald lowered the price target for HIVE Digital but remained optimistic about its future growth in both mining and AI cloud services. These developments underscore the dynamic shifts within the crypto and traditional finance sectors, with companies adapting to new opportunities and regulatory landscapes.
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Recent economic analyses and market reactions suggest a looming recession in the U.S., driven by uncertainties around tariffs and a softening job market. President Donald Trump's tariff policies have been pinpointed as a significant contributor to the recent stock market turmoil, with the Dow Jones Industrial Average dropping nearly 900 points in a single day. The tech-heavy Nasdaq also saw a sharp decline, marking its worst day since September 2022, largely due to the fall in stocks like Tesla, which has seen its gains from Trump's election wiped out by backlash over CEO Elon Musk's relationship with the president. Moreover, Morgan Stanley has raised alarms about a potential 5% drop in the S&P 500, suggesting that the initial market surge following Trump's election might not hold. Amidst this economic uncertainty, discussions on cryptocurrency, particularly Bitcoin, continue with predictions of significant growth by 2026, despite the negative impact of meme coins on the broader crypto market.
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In a remarkable display of technological prowess and a nod to cryptocurrency's growing acceptance, 1,000 drones lit up the night sky to form the Bitcoin symbol "₿". This event, highlighted by Gemini on Twitter, underscores the increasing mainstream interest in Bitcoin. Concurrently, legislative moves are being made to integrate Bitcoin into the U.S. financial system. President Trump has initiated an executive order to establish a Strategic Bitcoin Reserve, aiming to position the U.S. as a leader in digital asset management. This reserve would be funded through seized Bitcoin from legal actions. Congressman Byron Donalds is pushing to make this order permanent through legislation. Additionally, Senator Cynthia Lummis is set to reintroduce the Bitcoin Act, suggesting that Bitcoin could be used to significantly reduce the U.S. national debt. However, this approach has met with skepticism from experts like Stephen Cecchetti, who caution against the risks of using such a volatile asset for national financial strategy. Despite these concerns, Bitcoin's market value continues to rise, currently trading at $83,820.06.
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Since August 2020, Strategy (formerly MicroStrategy) has seen its stock value soar by over 1,800%, outpacing even the impressive gains of Bitcoin and tech giant Nvidia. This remarkable performance is largely due to Strategy's strategic pivot to become a Bitcoin Treasury Company, focusing exclusively on accumulating Bitcoin. The company now holds nearly 500,000 Bitcoins, surpassing even the U.S. government's holdings. However, this aggressive Bitcoin acquisition strategy, including plans to finance $42 billion in new Bitcoin purchases with a mix of equity and debt, has sparked debate. Critics question the sustainability of Strategy's valuation, which is currently much higher than the value of its Bitcoin reserves, especially given the volatile nature of cryptocurrency markets. Despite these concerns, some analysts remain optimistic about Strategy's future, particularly if Bitcoin's value continues to rise. The company's founder, Michael Saylor, advocates for even more aggressive Bitcoin buying by entities like the U.S. government, which could potentially drive up Bitcoin's value and, by extension, Strategy's stock price. However, the article suggests caution, highlighting the risks associated with Strategy's high exposure to Bitcoin's price fluctuations.
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The Goldman Sachs 2024 annual letter to shareholders discusses the bank's perspective on blockchain, cryptocurrencies, and digital assets, noting an increase in competition within the financial sector due to these technologies. The bank has engaged with distributed ledger technology through various avenues including client facilitation, investments, and as a third-party vendor. However, the report also expresses concerns about the vulnerabilities of these technologies, particularly in terms of cyber security and market stability. Despite these reservations, Goldman Sachs is set to explore tokenization projects to enable clients to invest in traditional assets like real estate via blockchain technology. CEO David Solomon has indicated a cautious approach towards cryptocurrencies, suggesting potential participation in Bitcoin and Ethereum markets if U.S. regulations become more favorable. Additionally, the bank has significantly increased its holdings in Bitcoin ETFs, with a notable investment in BlackRock's iShares Bitcoin Trust, indicating a strategic interest in digital assets without a full pivot towards them.
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In the past 24 hours, Solana's SOL and XRP have led the gains among major cryptocurrencies, with SOL surging 7% after a contentious governance proposal was rejected, maintaining its inflation schedule. This decision was pivotal as it could have disrupted Solana's DeFi ecosystem and potentially deterred institutional interest. XRP's rise was bolstered by Ripple Labs' recent achievements, including securing a payments license in the UAE and nearing the resolution of its legal issues with the SEC. Meanwhile, the broader crypto market saw a shift towards memecoins, with notable increases in PEPE, TOSHI, and DOGE, reflecting traders' move towards higher-risk assets amid a flat market for Bitcoin. Bitcoin itself has been trading sideways, with significant volatility and sensitivity to macroeconomic factors, suggesting it's behaving more like a risk-on asset. Analysts are watching for a break above $89,000 as a potential signal for a bullish turn, amidst ongoing geopolitical and economic uncertainties influencing market dynamics.
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Bitcoin is currently facing resistance at the $85,000 mark, with traders on Polymarket betting against a significant rally. The prediction market shows a less than one percent chance of Bitcoin reaching $200,000 by the end of March, with the majority of bets favoring a price below $75,000. Despite this bearish sentiment, macro investor Dan Tapiero remains bullish, suggesting that Bitcoin's current consolidation phase is healthy and predicting a potential rise to $180,000 by year-end. Bitcoin's price has seen a slight uptick to $83,234, with other major cryptocurrencies like Ethereum, Solana, BNB, and Dogecoin also experiencing gains. However, trading volumes have decreased, with February witnessing a 20% drop in activity across centralized exchanges, attributed to macroeconomic concerns including trade tensions and tariff threats.
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The article discusses the current market dynamics affecting Dogecoin, highlighting a significant sell-off by miners which coincides with a broader price decline from mid-February highs of over $0.30 to around $0.17. This selling pressure is attributed to concerns over profitability and market stability, exacerbated by macroeconomic factors like inflation fears and liquidity tightening. Despite these challenges, Dogecoin has received notable endorsements from Elon Musk, who has labeled it as the "people's crypto" and integrated it into payment systems for Tesla and SpaceX. However, the immediate market sentiment remains bearish, with potential for Dogecoin to drop to $0.15 if the selling continues. On a more optimistic note, some traders point to historical patterns suggesting Dogecoin could experience a significant surge in the future, potentially reaching $1 or more, although this would require a reversal of current trends and stabilization above key support levels.
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SEC Commissioner Hester Peirce, a long-time advocate for the crypto industry, has taken the helm of the SEC's newly formed crypto task force. In a recent interview with CoinDesk, she outlined her vision for reshaping the SEC's approach to cryptocurrency regulation. Peirce highlighted the importance of distinguishing between what falls under the SEC's jurisdiction and what does not, aiming to provide clarity and reduce uncertainty for crypto businesses. She stressed the need for public engagement in the regulatory process, encouraging industry stakeholders to provide feedback on how to move forward. The SEC is set to host a significant event on March 21, 2025, to discuss crypto policy, signaling a proactive stance on addressing the regulatory challenges posed by cryptocurrencies. Additionally, Peirce pointed out the legislative efforts in Congress, particularly around stablecoins and market structure, which could help define clearer regulatory boundaries for centralized entities in the crypto ecosystem. Her approach seeks to foster an environment where innovation can thrive without undue regulatory burden, while still ensuring investor protection and market integrity.
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Bitcoin's price dynamics are closely tied to broader market trends, particularly the S&P 500, as it failed to maintain levels above $85,000 despite gains in the stock market. Despite a significant drop from its all-time high, Bitcoin derivatives metrics indicate resilience with no signs of stress. The Bitcoin basis rate, which had briefly signaled bearish sentiment, has now returned to neutral levels, suggesting a balanced market sentiment. Analysts point out that while Bitcoin's price has been correlated with traditional markets, central banks' potential stimulus measures could drive its value up, especially if economic conditions improve. However, if the market continues to face recession fears, Bitcoin might underperform, particularly if there are sustained outflows from Bitcoin ETFs. The current sentiment in Bitcoin margin markets remains bullish, with no immediate signs of bearishness, supporting the possibility of Bitcoin reclaiming the $90,000 mark in the near future.
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A Democrat lawmaker, House Representative Gerald E. Connolly, has called on the US Treasury to halt the Trump administration's plans for a cryptocurrency reserve, arguing that it serves no benefit to the American public and could enrich President Trump and his donors. Connolly criticized the plan in a letter to Treasury Secretary Scott Bessent, highlighting the lack of strategic need for such a reserve and describing it as a speculative hedge for Bitcoin speculators. He pointed out potential conflicts of interest due to Trump's links with the crypto platform World Liberty Financial and the TRUMP memecoin, which has reportedly generated significant trading fees. Despite the White House's assertion that the reserve would use only forfeited cryptocurrency and budget-neutral strategies, Connolly has demanded transparency regarding the plan's development and steps to mitigate conflicts of interest. The reserve would initially use forfeited cryptocurrencies, with plans to include other digital assets like XRP, Solana, Cardano, and Ether.
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A proposal to dynamically adjust Solana's inflation rate based on staking participation, known as SIMD-228, was rejected by the Solana community. Despite the proposal's defeat, it was celebrated as a significant event for Solana's governance process. The vote saw participation from 74% of the staked supply across 910 validators, marking it as one of the largest governance votes in cryptocurrency history. However, only 43.6% voted in favor, with 27.4% against and 3.3% abstaining, failing to meet the required 66.67% approval threshold. The proposal aimed to shift from a fixed inflation schedule to a market-based model, potentially reducing inflation by up to 80% to stabilize the network and encourage more active use of SOL in DeFi. Critics argued that lower inflation could challenge smaller validators' profitability and introduce network instability due to unexpected shifts in staking rates. Despite the proposal's rejection, the Solana ecosystem viewed the event as a successful stress test of its governance capabilities.
