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Investing In Bitcoin Around the Chinese New Year Has Been Profitable for The Past Eight Years

Ahead of the Lunar New Year and Spring Festival celebrations across Southeast Asia, Bitcoin rallied to its highest level since August, extending gains over the weekend.

 

According to data compiled by CoinMarketCap, the leading cryptocurrency saw a dramatic increase on Saturday, rising to over $23,000 and gaining as much as 10% from the previous day. The coin has hit an all-time high of almost $23,282, a mark not witnessed in the past five months. Bitcoin has been trading at about $22,900, remaining relatively unchanged from yesterday.

 

Ethereum, the second-largest cryptocurrency, too, saw huge gains, reaching a local high of roughly $1,674—a level not seen since September of last year, when the highly awaited Merge upgrade was implemented. Total market capitalization now exceeds $1 trillion.

 

Due to its strong performance in the days leading up to the Lunar New Year holiday, Bitcoin has been enjoying a rally. The Lunar New Year is an excellent opportunity to get into the market, says Markus Thielen, head of research at Matrixport.

 

Year to date, Bitcoin and Ethereum have been up over 38% and 35%, respectively. The crypto market gained steam after the U.S. Department of Labor issued new statistics last week showing a slowing in inflation, suggesting that a number of reasons may have contributed to crypto’s good start this year.

 

Compared to November’s 7.1% annual rate, December’s figure of 6.5% was a decrease. To the extent that lower inflation puts pressure on the US Federal Reserve to cut down interest rate hikes, this is generally seen as favorable for risk assets like crypto.

 

While Ethereum might reach between $2,400 and $3,200 this year, Bitcoin could reach between $35-$44,000. This is according to Sean Farrell, head of the digital asset strategy at Fundstrat.

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Crypto Featured News News

Initiation of the Shadow Fork on the Shanghai Mainnet of Ethereum

Ethereum’s core developers revealed on Monday that the first mainnet shadow fork had been successfully deployed in order to test the readiness of ETH staking withdrawal capabilities, a feature planned to arrive in March.

 

By simulating the effects of a fork on the mainnet, developers can check for bugs in the system’s design and make adjustments before the real thing is implemented. The Shanghai upgrade, which will bring staked ETH withdrawals to the Ethereum ecosystem, was tested on Monday, providing a sneak peek at what’s to come.

 

After Ethereum’s landmark merging in September, which switched the network to a proof-of-stake method, Shanghai will be the first big update since then. As a result of the integration, users can now stake ETH with the network in order to validate on-chain transactions. This has allowed them to earn incentives from newly created ETH.

 

Since December 2020, users have risked about $26.5 billion USD in ETH in hopes of receiving these payouts. However, users won’t be able to withdraw their newly-minted ETH or their initial ETH deposits until Shanghai is live.

 

On Monday, Ethereum core engineer Marius Van Der Wijden revealed on Twitter that, despite a few initial hiccups that have since been fixed, the first ETH withdrawal mainnet shadow split had begun successfully.

 

This suggests that Ethereum is on track to release ETH withdrawal functionality within the next five to eight weeks.

 

The network’s core developers have been working hard to meet that deadline, even if it means delaying development on other enhancements.

 

Proto-danksharding, a streamlined data sampling technique that would make layer-2 transactions on Ethereum substantially cheaper and faster, and EOF, a long-overdue update to the Ethereum Virtual Machine, was also rumored to be included in Shanghai (EVM).

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Crypto Featured News News

Despite Rumors of a Fed U-Turn, Ark Invest’s CEO Predicts a Possible Cryptocurrency Upswing

Ark Invest’s CEO predicts a massive reversal for crypto assets this year due to falling inflation and a U-turn by the Fed. Cathie Wood, began a video blog post on the company’s website on January 23 by discussing the state of the economy as a whole. She said “several signals” indicate that inflation will be declining, so “the Fed should pivot soon.”

 

As the macroeconomic picture brightens and people open their wallets, risk-on assets like cryptocurrency stand to benefit.

 

She also said that the company anticipates inflation will fall to the Federal Reserve’s 2% target. As the money supply has been decreasing, Wood has forecast that inflation could go below this level and perhaps into negative territory.

 

She continued, “we anticipate that will happen in the first half of 2023,” suggesting that the market was waiting for a signal from the Federal Reserve. If interest rates drop below expectations, as she predicted, Ark Invest portfolios will do quite well.

 

The six active Ark funds are all related to either technology or financial services. They include a cryptocurrency asset fund, blockchain venture investments, a disruptive innovation fund, and an exchange-traded fund (ETFs).

 

At the same time, Chief Futurist Brett Winton of Ark discussed AI, predicting rapid development in the field by 2023. The value of cryptocurrency, he said, would surge this year.

 

He said that when the macro climate shifts and the Fed “changes its spots,” there is a greater chance for “growth and value realization within the venture and public market space.”

 

After analyzing the effects of these technical advancements, Wood came to the conclusion that they are deflationary and will “create a boom in the products and services linked with this innovation.”

 

Recently, Ark Invest cashed out on the part of its Grayscale Bitcoin Trust (GBTC) assets and piled into Coinbase (COIN) to the tune of $320,000, or around $17.6 million.

 

With the launch of the Ethereum Shanghai Mainnet Shadow Fork, members of the largest smart contract network in the world may get closer to accessing the over $26 billion in ETH that has been staked.

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A Recent Round of Layoffs at Gemini, A Cryptocurrency Exchange, Involved 10% Of the Staff

A representative for the cryptocurrency exchange Gemini informed CNBC on Monday that they would be laying off 10% of their staff. For Gemini, which was co-founded by Cameron and Tyler Winklevoss and is subject to New York banking regulation, unlike many of its competitors, this is at least the third round of layoffs in less than a year.

 

According to PitchBook data, Gemini had 1,000 employees as of November 2022, thus, a reduction of about 100 jobs seems likely. TechCrunch stated in July 2022 that Gemini had reduced its workforce by 7%, following a 10% reduction in June 2022.

 

In recent weeks, Gemini has fought to protect its customers’ money. Since the cooperation with Barry Silbert’s insolvent company Genesis, the exchange has also been involved in a legal battle with the Securities and Exchange Commission over an alleged unregistered offering and sale of securities.

 

Gemini’s high-yield loan product, Gemini Earn, has gotten the company into a heated spat with Silbert’s Genesis Trading. This cryptocurrency lending service has made a killing for Gemini customers.

 

As a result of FTX’s bankruptcy filing, ties between the two companies deteriorated. Shortly afterward, Genesis suspended loans and redemptions, leaving Gemini customers short an estimated $900 million. The failed cascade also resulted in the temporary suspension of the Gemini Earn product.

 

Gemini’s 340,000 clients have become more dissatisfied in the months following the discontinuation of the Earn product. Many have joined forces to file a class lawsuit against the stock market.

 

On January 19th, Genesis began the process of declaring bankruptcy. There is a list of the 50 largest unsecured creditors in the filing, and Gemini comes in at number one with a claim of $765.9 million. This is more than $300 million higher than the subsequent highest creditor.

 

Since Sam Bankman-cryptocurrency Fried’s exchange FTX filed for bankruptcy on November 11, several crypto firms, including Crypto.com, Coinbase, Kraken, and Genesis, have slashed employment. For the second time in as many months, Coinbase reduced its personnel by 20% at the beginning of January. The move was made to conserve funds during the bear market in cryptocurrencies.

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Crypto Featured News News

FBI: North Korea Responsible For $100 Million Crypto Theft

U.S. authorities believe that hackers from North Korea were responsible for stealing digital assets worth $100 million last year from a crypto company based in the United States.

 

The FBI claimed on Monday that the cyber robbery on crypto company Harmony last June was carried out by hacking gangs Lazarus Group and APT38, both based in North Korea.

 

The FBI has alleged that earlier this month, North Korean cyber criminals utilized the privacy protocol Railgun to launder more than $60 million worth of Ethereum stolen during the crime.

 

In June, California-based blockchain company Harmony revealed that hackers had stolen $100 million worth of digital coins via Horizon bridge, a so-called blockchain bridge used to transfer cryptocurrency between multiple blockchain networks.

 

With the help of several virtual asset service providers, the FBI, which had earlier issued an advisory on the “TraderTraitor” malware campaign used in the robbery, announced that it had frozen a portion of the stolen funds.

 

The FBI has pledged to continue to “detect and disrupt” efforts to steal and launder bitcoin that fund the unnamed state’s illegal missile and nuclear weapons programs.

 

Officials in the United States and the United Nations have accused North Korea, headed by third-generation dictator Kim Jong Un, of organizing an intensifying campaign of cyber theft to fund its activities, including the construction of long-range ballistic missiles and nuclear weapons.

 

In December, the South Korean intelligence service stated that hackers from North Korea had stolen $1.2 billion in virtual assets over the preceding five years, with $800 billion of that total occurring in 2022 alone.

 

According to a report published by blockchain analysis firm Chainalysis in January of last year, the value of assets stolen in cyberattacks tied to North Korea increased by 40% between 2020 and 2021.