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The UK government’s Insolvency Service has shut down a crypto advisory firm for accounting negligence and the loss of investors’ money. The firm seemingly claimed to help users with investments while promoting crypto schemes that resulted in millions lost.

False Crypto Expert Company Shut Down

On Monday, The UK’s government published a press release unveiling a web of lies weaved by Amey Finance Academy Ltd. Amey Finance was “an established and successful independent consultancy providing a plethora of financial services.”

The crypto advice company claimed to run an “industry-leading education academy” that guides customers through investment opportunities and teaches them about crypto.

Instead, the company promoted scheme projects, resulting in the loss of investors’ money. On April 30, the UK’s Insolvency Services obtained a winding-up order from the High Court in London.

In 2018, Desmond Amey created Amey Finance Academy to “offer financial advice and education on cryptocurrencies.” Amey was the London-based company’s sole director and shareholder and considered himself a “wealth creation expert.”

The director assured customers that their crypto investments “were solid.” However, investors informed authorities that they lost money in the opportunities offered by the firm.

Despite claiming to have the required licensing from the Financial Conduct Authority (FCA), it was revealed that the company was operating without authorization. In 2022, the FCA informed investors that Amey Finance Academy offered financial services and products as an unregistered company.

According to Mark George, the Insolvency Service’s Chief Investigator, Amey used the company “to recklessly persuade individuals to invest in cryptocurrency schemes and mislead them about the risks of doing so.”

The Chief Investigator revealed that the firm failed to deliver up-to-date accounts during the investigation. As a result, the Insolvency Services couldn’t establish the full extent of Amey Finance’s activities.

Despite the lack of transparency, the agency determined that at least £5 million passed through the company’s bank accounts between 2019 and 2022:

The failure to deliver adequate accounting records and a general lack of transparency shown has prevented the Insolvency Service from establishing the true extent of the company’s activities, its assets and liabilities, or the use of £5 million which passed through the company’s bank account between October 2019 and March 2022.

‘Trust Me Bro’ Director Promotes Schemes

According to the press release, Amey misrepresented the investment opportunities he offered. He assured customers their investments would not “drop below 90%” before losing all their money.

The investigation revealed that Amey Finance promoted crypto schemes run by other companies. Among these schemes, the firm endorsed companies like HyperFund, which raised $1.7 billion worldwide.

HyperFund raised the alarm of regulatory entities in the UK and New Zealand, who issued customer warnings against the company. The US Securities and Exchange Commission investigated the company, ultimately charging its founder with fraud in January 2024.

The director’s contradictory statements prevent Insolvency Services from unveiling the true relationship between Amey Finance and HyperFund. However, Amey claimed he only used his firm’s bank account to “help people buy cryptocurrency via a separate company called Bleuguava.”

During the investigation, the Insolvency Services had access to some messages from the director. Amey had told customers that the crypto investments were “100 certy” and asked investors to “trust me bro.”

Further investigations showed that the director’s email signature stated he was the Managing Director of Amey Commercial Finance Ltd, a company dissolved in 2017. In 2023, he had been evicted from the company’s address in London despite claiming to still have a presence there.

Ultimately, Amey’s web of lies resulted in the loss of millions for the investors and his company’s shutdown and future liquidation.

The Oost-Brabant district court in the Netherlands has sentenced Alexey Pertsev, co-developer of Tornado Cash, to 64 months in prison for his involvement in creating and maintaining the crypto mixing tool. The court alleges that Tornado Cash enables “criminal activity and terrorism.” 

Pertsev, along with two other individuals, developed Tornado Cash, a tool for concealing the origin, ownership, and destination of cryptocurrency transactions.

Tornado Cash Accused Of Facilitating $2B Money Laundering Operation

The court’s investigation revealed that Tornado Cash allegedly facilitated the laundering of approximately $1.2 billion in Ethereum (ETH), derived from 36 different thefts or hacks. However, when considering parameters for selecting these hacks, the estimated amount laundered could exceed $2.2 billion. 

The court also acknowledged the possibility of cryptocurrency laundering from other crimes. Despite Pertsev’s claim that Tornado Cash aimed to offer privacy solutions for the crypto community without intending to facilitate criminal activities, the court found the tool actively involved in money laundering.

The court emphasized that Pertsev and his co-founders were responsible for the tool’s operation and its “lack of measures to prevent abuse.” The court alleges that they had developed Tornado Cash with full knowledge of its potential use for money laundering. 

The court further claims that Pertsev was aware of discussions in chat groups about stolen Ether and cryptocurrency with criminal origins being deposited into Tornado Cash. Yet, he continued to develop and offer the tool without incorporating restrictions or controls.

Arrest And Charges

Tornado Cash was designed to provide maximum anonymity and concealment, rendering identification, control, or investigation challenging. The Dutch court contends that its automatic execution of concealment acts for money laundering made it attractive to criminal users. 

The court noted that nearly $450 million in cryptocurrency stolen in the infamous “Axie Infinity hack” by the notorious North Korean hacking organization Lazarus Group was deposited into Tornado Cash and subsequently laundered, highlighting the tool’s “significant value to the criminal underworld.”

In sentencing Pertsev to 64 months in prison, the court agreed with the prosecution’s demand. The court also ruled against returning Pertsev’s seized Porsche and approximately €1.9 million worth of cryptocurrency. 

As Bitcoinist reported, one of the other founders of Tornado Cash, Roman Storm, was arrested in the United States last year, while the third co-founder, Roman Semenov, remains a fugitive and has been charged with money laundering.

At the time of reporting, the total valuation of the cryptocurrency market stands at $2.1 trillion. The price of Bitcoin (BTC), the leading cryptocurrency in the market, is currently trading at $61,800. This places Bitcoin’s support line at $61,000 under scrutiny, which is crucial in preventing further downward movements.

Featured image from Shutterstock, chart from TradingView.com

Ethereum remains under immense selling pressure, shaving over 30% from March 2024 highs. With prices recently dropping below $3,000 and sellers doubling down, there could be no reprieve for optimistic buyers in the sessions to come. 

Analyst Expects One More “Washout” To $2,700

Taking to X, one analyst notes that the coin is still bearish and moving inside a falling wedge. The trader predicts that ETH will continue dropping below immediate support levels. 

In a post, the trader predicts a potential “washout” for ETH that would likely see the coin fall below $2,700. The analyst added that despite the prevailing fear, the overall structure of Ethereum price action remains unchanged. 

The Ethereum candlestick arrangement in the daily chart shows that Ethereum prices are within a bearish breakout formation. Following the sharp losses in mid-April, buyers have yet to unwind losses. 

Accordingly, unless there is no strong push above $3,300 and the descending wedge, the odds of sellers further pressing on remain high. In the current formation, Ethereum has strong support at $2,800. If there is a “washout,” as the analyst says, ETH may fall below $2,700 towards $2,600 and $2,200, two of the immediate support levels.

Prospects Of Spot Ethereum ETFs Dimming

 

Adding fuel to the bearish fire are growing odds that the United States Securities and Exchange Commission (SEC) might reject the approval of spot Ethereum exchange-traded funds (ETFs) this month. This speculation stems from analysts pointing to the commission potentially classifying Ethereum as a security, derailing ETF approval.

A finance lawyer on X confirmed that the United States SEC is considering classifying ETH as a security in their upcoming spot ETF decisions. Unlike Bitcoin, whose spot and futures ETFs were approved without such scrutiny, ETH faces this additional hurdle. 

Should the Gary Gensler-led commission deem ETH security, dire consequences would exist. While all spot ETF applications could be denied, there would be more. As part of Grayscale’s Ethereum trusts, ETHE, terms and conditions, if the United States SEC classifies ETH as a security, all ETHE will be liquidated, and the trust closed. 

In late April, Consensys, led by Ethereum’s co-founder Joseph Lubin, said they are suing the United States SEC to protect the broader crypto ecosystem. By threatening to classify ETH as a security, ConsenSys said the regulator “would jeopardize the United States’ ability to use Ethereum and similar blockchain technology.”

The return of Keith Gill (also known as “Roaring Kitty”), the man who largely contributed to the GameStop short squeeze in 2021, and the Dogecoin run, has led to talks about another imminent meme coin mania. If so, some meme coins are worth watching, as they could be the biggest beneficiaries of such development. 

Pepe (PEPE) And Dogwifhat (WIF) Could Lead The Way For Meme Coins

PEPE and WIF look set to lead the way if there is another meme coin mania due to Gill’s return. Gill was at the helm of the GameStop saga in 2021 when a group of Reddit traders staged a financial revolution against hedge fund managers who had been shorting the retail company’s stock. This led to GameStop’s stock rising from under $3 to $483 in under a month.

This event is believed to have paved the way for the meme coin frenzy, which began afterwards as many retail investors came into crypto following that event. This led to a parabolic rally in the prices of different meme coins, including the foremost ones, Dogecoin and Shiba Inu. However, with Dogecoin and Shiba Inu looking to have lost most of their bullish momentum, newer meme coins like Pepe, WIF, and even Bonk could lead the way this time around. 

These newer meme coins have recorded significant gains in the last 24 hours since Gill made his first X (formerly Twitter) post announcing his return. Specifically, Pepe has been the largest gainer among the top-ranked meme coins, posting a price gain of over 25%, according to data from CoinMarketCap. WIF and BONK have also recorded price increases of 11% and 9%, respectively. 

Dogecoin and Shiba Inu also recorded significant price gains. However, in the long run, Pepe, WIF, and BONK are expected to outshine the two largest meme coins by market cap since they have more room to make parabolic moves to the upside. 

Meanwhile, Gill’s return can also be considered timely since meme coins were already projected to be one of the leading narratives for this bull run. As such, this can further ignite a notable surge in the meme coin market. 

The Event That Leads To Mainstream Adoption

Crypto expert Scott Melker predicted that mainstream crypto adoption would return when Dogecoin hits a new all-time high (ATH). However, Gill’s return could very well be the event that marks the return of retail investors into the crypto space. Moreover, what happened following his return makes a strong case for why crypto is the future of finance. 

The New York Stock Exchange (NYSE) was reported to have halted the trading of GameStop’s stock due to its volatility following Gill’s numerous X posts. Such an occurrence is impossible on-chain, which could further convince traditional finance (TradFi) traders that using decentralized protocols is a better option. 

Unlike the NYSE, these decentralized exchanges didn’t halt trading despite the GameStop (GME) meme coin, which isn’t affiliated with the retail company, soaring by over 3000% in a single day. 

As the cryptocurrency world anxiously awaits the decision regarding Ethereum Spot Exchange-Traded Funds (ETFs) from the United States Securities and Exchange Commission (SEC), much has been said about the variables that could influence the Commission’s ruling.

Author and finance lawyer Scott Johnsson enters the discussion and highlights an important point: the SEC might consider Ethereum’s security status when deciding on the exchange products in the upcoming days, particularly on May 31.

Ethereum Security Question Poises Approval Hurdles

In an X post, Scott Johnsson shared a few screenshots that highlight the question of whether the Nasdaq Stock Market LLC (“Nasdaq” or “Exchange”) has properly filed its proposal to list and trade Shares of the iShares Ethereum Trust under Nasdaq Rule 5711(d), Commodity-Based Trust Shares, given the nature of the underlying assets held by the trust.

With the Commodity-Based Trust Shares being defined as a security, the question suggests that the SEC might be classifying ETH as a security, which poses a potential setback to the spot ETH ETFs.

While Johnsson thinks this is a possibility being discussed publicly, he believes it is official proof that the SEC is considering the security question for ETH in the impending spot ETF verdict. This is because this question was never raised when considering the same products for the largest cryptocurrency asset, Bitcoin.

The Post read:

I’m aware this is widely considered a possibility, but this is your official notice that the SEC is considering the security question for ETH in this upcoming spot ETF order. Note that this question was never (AFAICT) asked regarding a spot/futures BTC ETF product.

According to the lawyer, 15 U.S.C. 78s(b)(2)(B) mandates that the SEC give notice of the grounds for rejection under consideration. Although the question above was never asked or observed for a Bitcoin spot ETF filing, it was raised for every ETH spot ETF filing in their Request For Comments (RFCs).

The evident goal why the SEC brought up this question according to Johnsson is to maybe reject Ethereum spot ETFs on the grounds that the filings do not qualify if they are holding securities and were filed incorrectly as commodity-based trust shares.

Johnsson states that the broader crypto space considers his insights a potential reason behind the SEC’s action, but there could be more to the development than the community knows.

Final Reviewable Agency Action

Before the May 31 deadline, Johnsson claims the SEC will most likely provide at least 30 pages of analysis addressing whether or not it believes an Ethereum spot ETF complies with Exchange Act regulations. Thus, it will be the last agency action that can be reviewed before the deadline.

Furthermore, they will have to go beyond the framework they established to approve Bitcoin futures and spot products under the Securities Act of 1933 and the restrictions imposed on them after the GBTC verdict by the DC Circuit.

Johnsson believes there are several options available to the regulatory watchdog, and each will have far-reaching consequences.

Shiba Inu (SHIB) has expanded into the e-commerce market, scoring another major listing from the cryptocurrency payment platform, CoinGate. The payment company disclosed that it had boosted its cryptocurrency offerings with the doggy-themed cryptocurrency, allowing users to purchase traditional products like sports gear, gift cards and more. 

Shiba Inu New Listing

In a recent X (formerly Twitter) post, CoinGate announced that it had officially integrated Shiba Inu into its list of cryptocurrency payments. The popular blockchain payment processor not only listed Shiba Inu but extended its support for Polygon (MATIC) and Binance Chain (BNB). 

As a payment gateway for web-based crypto payments, CoinGate offers a variety of cryptocurrency options, including USDT, Bitcoin, Dogecoin, Ethereum, Litecoin, XRP, Tron and now Shiba Inu. On this platform, cryptocurrencies are used to buy gift cards like Amazon, Xbox, eBay and many more. 

Additionally, CoinGate acts as a gateway between the cryptocurrency industry and traditional finance, enabling the modern trade of products and services in exchange for cryptocurrencies. 

The blockchain payment processor revealed in its post that users now have the capability of using Shiba Inu tokens for a myriad of transactions, including booking Airbnb accommodations, acquiring the latest games from gaming providers like Steam and PS5, and refreshing their wardrobes with purchases from renowned brands like Nike and Zalando.  

Amidst the present soaring demand for Shiba Inu, this new listing stands as further evidence to its popularity in the cryptocurrency and financial landscape. Numerous crypto payment platforms and exchanges have added the popular meme coin to their crypto offerings this year alone. A prime example is Shiba Inu’s recent addition to Binance’s Japan listing which has exposed the cryptocurrency to Japanese markets. 

SHIB To See Major Adoption?

As a Lithuanian-based company in Europe, CoinGate opens more doors for Shiba Inu, expanding its reach to European customers in a population with millions of people. 

The integration of Shiba Inu into the e-commerce landscape also marks a significant milestone for the cryptocurrency, positioning it for widespread adoption and establishing it as a viable financial solution for facilitating international payments. 

This move not only expands the token’s already robust utility but also enhances its appeal to global audiences. As a meme coin boasting the second largest market capitalization, exceeding $14 billion, Shiba Inu has steadily gained influence, securing over 50 listings from top cryptocurrency payment providers. 

The cryptocurrency has also seen its price surge following the announcement of the new listing. At the time of writing, SHIB is trading at $0.000023, marking a 6.35% increase over the past 24 hours. 

Just a day ago, the price of the doggy-themed meme coin hovered around $0.000022. However, as investors and traders have begun showing increasing interest in Shiba Inu, the cryptocurrency experienced a remarkable 313.5% surge in its daily trading volume, surpassing $979 million. 

On-chain data shows the Bitcoin mining hashrate has registered a decrease of 11% recently as miner profitability has dropped to a 3-year low.

Bitcoin Miners Haven’t Been Under This Much Stress In 3 Years

As pointed out by CryptoQuant community manager Maartunn in a post on X, Bitcoin miners are being significantly underpaid right now. The indicator of relevance here is the “miner profit/loss sustainability,” which basically tells us whether the miner revenues are fair or not currently.

Here is the chart shared by the analyst that shows the trend in this BTC metric over the last few years:

From the chart, it’s visible that the Bitcoin miner profit/loss sustainability had been at positive levels earlier when the rally towards the new all-time high had occurred.

Miners make their income from two sources: the block rewards that they receive for solving blocks on the network and the transaction fees that they get as compensation for handling individual transfers.

During rallies, transfer fees can spike due to high network activity and block rewards become more valuable as a result of the rising BTC price. As such, it’s not surprising that the profitability of these chain validators was at notable levels during the earlier surge.

Recently, however, the indicator’s value has plunged deep into the negative territory, implying miners have become extremely underpaid. Bitcoin has gone through some bearish price action in this period, but the lower spot value isn’t the only reason that miner financials have now come under stress.

The much-anticipated Halving that occurred last month would be the much bigger factor at play here. During this event, BTC’s block rewards were permanently slashed in half, so it’s easy to see how it would affect mining economics.

Interestingly enough, the Halving day itself saw pretty high revenues for miners, with the miner profit/loss sustainability shooting into the overpaid territory, as is visible by the lone spike in the chart. This was a result of the arrival of Runes on the network.

This new protocol, which allows users to mint fungible tokens on the Bitcoin network, saw immediate popularity, and the resulting transaction activity sent blockchain fees soaring. However, the hype couldn’t last for too long, though, and transaction fees have once again returned back to lower levels.

The halved rewards combined with the relatively low fees are why miner profitability has taken such a hit. “This is likely to cause substantial strain, especially for less efficient miners,” notes Maartunn.

It would appear that some of the miners under stress have already started pulling out, as the Bitcoin hashrate, a measure of the computing power connected to the network by the miners, has seen a decline of 11% in its 7-day average chart since the all-time high set alongside the Halving.

Miners can now only hope for the BTC price to see enough surge so as to offset the revenue decrease caused by the Halving, or for the transaction fees to perhaps see another boom.

BTC Price

Bitcoin has seen yet another recovery rally fizzle out as the asset’s price has dropped to $61,700 after having returned back above $63,000 yesterday.

Crypto analyst Rekt Capital recently suggested that the worst might be over for Bitcoin. If so, the flagship crypto may be primed for a move to the upside, rising to as high as $100,000, which some other crypto analysts have predicted would be the case. 

Bitcoin Is Out Of The “Danger Zone”

Rekt Capital mentioned in an X (formerly Twitter) post that the Bitcoin Post-Halving “Danger Zone” is officially over. He added that Bitcoin is “celebrating with a good bounce from the Re-Accumulation Range Low support.” The crypto analyst had previously explained that the danger zone was the downside wick that Bitcoin experienced 21 days after the halving in 2016.

Related Reading: Crypto Analyst Predicts 3,000% Surge For Shiba Inu – Here’s The Timeline

Rekt Capital also revealed back then that Bitcoin had repeated the 2016 history “perfectly,” with the flagship crypto dropping below the bottom of its current Re-Accumulation range. Meanwhile, based on the crypto analyst’s previous analysis, Bitcoin is now headed for the Re-Accumulation phase, which occurs after the halving.

Rekt Capital claimed this period usually lasts up to five months but added that it could be shorter this time. The crypto analyst predicts that BTC may maintain a “Regular sideways range and may not last very long before additional uptrend continuation.” Rekt Capital also suggested that $60,600 would likely be the base of the Re-Accumulation range. 

In a subsequent X post, Rekt Capital hinted that things would likely improve from here on for the flagship crypto. He said, “Bitcoin is showing early-stage signs of slowing down in its sell-side momentum, slowly developing a curl against the $60,000 support.” “$60,000 needs to continue to hold as it has long as it has been holding thus far for this curl to progress and eventually lift up,” he added. 

Rekt Capital noted in another X post that this move to the upside might take time but will eventually happen. According to him, this month and next month may be “unremarkable” for Bitcoin is running out of “unremarkable months” before the “parabolic phase of the cycle begins.”

Arthur Hayes, the co-founder and former CEO of the BitMEX crypto exchange, also echoed a similar sentiment when he stated that Bitcoin had found its local bottom and would range between $60,000 and $70,000 until August. 

$100,000 May Be BTC’s Next Stop After This Phase

Based on price predictions made by several crypto analysts, Bitcoin will likely climb to $100,000 once this period of consolidation is over. One of these analysts is Pseudonymous crypto analyst PlanB, who claimed that BTC hitting this price level this year is “inevitable.” Tom Dunleavy, Partner and Chief Investment Officer (CIO) at MV Capital, had also predicted earlier in the year that Bitcoin would reach $100,000 after the halving. 

Meanwhile, crypto analyst Ali Martinez suggested that Bitcoin will at least come close to this price level even if it doesn’t eventually reach it. He stated that a surge above $66,250 would give the flagship crypto enough strength to move towards $69,150. Martinez claimed that BTC could advance to a new all-time high (ATH) of $92,190 if it eventually breaches that resistance level.

The next two weeks could be decisive for the crypto industry as it faces significant legislative developments in the US Congress. These developments may potentially reshape the regulatory landscape for digital assets in the United States.

3 Major Crypto Legislations Are Up For Vote

The community is closely monitoring the Senate’s upcoming vote on the repeal of Staff Accounting Bulletin No. 121 (SAB 121). Initially issued by the Securities and Exchange Commission, SAB 121 requires financial institutions to list on their balance sheets the digital assets they hold in custody for clients.

This practice diverges from traditional custodial asset handling, which does not consider custodied assets as part of a company’s own balance sheet. Critics argue that this could unjustly inflate a bank’s assets and liabilities, leading to increased capital reserve requirements and potentially stifling the growth of crypto custody services.

Last week, the House of Representatives saw a bipartisan effort to repeal this regulation, with 21 Democrats joining Republicans. “Last week 21 Democrats took a tough vote and joined Republicans in repealing the SEC’s SAB 121. This is an issue that is important for both banks/crypto and a personal priority for SEC Chair Gensler,” said Ron Hammond, Director of Government Relations at the Blockchain Association via X.

The Senate, led by Senator Cynthia Lummis, is expected to follow suit this week. However, President Biden has indicated plans to veto the repeal, necessitating a challenging two-thirds majority in Congress to override the veto.

“Given the razor thin majorities in both Chambers, we’ve seen a few Congressional Review Acts (CRAs) get to the President’s desk on a bipartisan basis, but have failed at that stage. This requires a 2/3 congressional vote to overturn. Biden plans to veto so tough hill to climb,” Hammond remarked.

Another key legislative item on the agenda is a bill introduced by Representatives Larry Bucshon and Lisa Blunt Rochester. Scheduled for a vote this week, this bipartisan initiative requires the Department of Commerce to serve as the principal adviser to the President on blockchain issues. The bill also proposes the creation of an advisory group within the Commerce Department to further integrate blockchain technology into federal governance and policy-making.

Another highly anticipated legislative push is the upcoming vote on the FIT 21 bill, set around May 23-24. Authored by Patrick McHenry, chair of the House Financial Services Committee, this bill represents the first comprehensive attempt to establish a regulatory framework for cryptocurrencies at a federal level.

“FIT 21 is Patrick McHenry’s legacy and the first time Congress will vote on a regulatory framework for crypto. This is a moment that has been in the making for nearly a decade,” Hammond highlighted. The bill has garnered significant attention, and its amendments will be crucial in shaping its final form, appealing to both Democratic and Republican legislators.

Political And Regulatory Context

These legislative efforts occur against a backdrop of heightened regulatory scrutiny by the SEC under Chair Gary Gensler and broader concerns expressed by the Biden administration regarding the alleged risks associated with crypto assets.

The administration argues that SAB 121 is vital for protecting investors and maintaining stability in the financial system. Conversely, many in Congress and the industry believe that the SEC’s current approach hampers innovation and fails to provide clear compliance guidelines.

Moreover, the intersection of crypto policy and election year dynamics cannot be understated. With former President Donald Trump’s recent endorsements of cryptocurrency and its bipartisan potential, crypto policy is emerging as a significant campaign issue.

“Trump inserting himself in crypto has little political risk, but major benefit given the bipartisan campaign wins crypto has been picking up in the primaries,” noted Hammond. This positions crypto as a unique issue that could influence voter demographics, particularly among younger voters who have shown consistent interest in digital asset technologies.

At press time, the total crypto market capitalization stood at $2.208 trillion, still 37% away from its all-time high of November 2021.

Institutional investors and US states are displaying heightened interest in the Bitcoin ETF market following regulatory approval by the US Securities and Exchange Commission (SEC) in January.

The latest development reveals that Wisconsin’s investment board has invested approximately $100 million in BlackRock’s iShares Bitcoin Trust ETF.

US States Eye Bitcoin ETF Market

According to a recent 13F form filed with the SEC, the Wisconsin investment board acquired $98.6 million worth of shares in the BlackRock ETF.

This significant investment contributes to BlackRock’s growing presence in the newly regulated market, which has experienced a substantial increase in inflows and trading volume since January.

In addition, demonstrating the growing interest of US states in exploring opportunities to invest in the Bitcoin ETF market, Keith Ammon, New Hampshire State Representative and Vice Chair of Commerce and Consumer Affairs, recently initiated a discussion on diversifying the state’s financial reserves by investing in Bitcoin ETFs. 

BTC ETFs Poised For Expansion?

As reported by Bitcoinist on Monday, Ammon’s analysis highlights the potential benefits. It states that if New Hampshire had allocated just 5% ($4.65 million) of its 2016 rainy day fund to Bitcoin, it would now be worth nearly half a billion dollars ($473 million), representing a substantial 10,000% return on investment.

Ammon also references Manuel Nordeste, Fidelity’s Vice President of Digital Assets, who emphasizes the growing trend among major pension funds and big banks towards allocating funds to spot Bitcoin ETFs. 

Nordeste’s insights reveal that 25% of pension managers personally own digital assets, indicating a significant shift in interest within the digital asset market. 

Ammon suggests that if only 1% of state pension assets under management ($5.5 trillion) were to flow into Bitcoin, it would surpass mining revenue, creating a supply shortage relative to demand and driving further price increases for Bitcoin.

In sum, these developments underscore the increasing appeal of Bitcoin ETFs to institutional investors and US states alike. With continued regulatory approval and growing interest, the Bitcoin ETF market seems to be poised to experience further expansion in the coming months.

At press time, the largest cryptocurrency in the market is trading at $61,600 after failed attempts to consolidate above Monday’s high of $63,000. 

Featured image from Shutterstock, chart from TradingView.com

United States President Joe Biden has ordered the shutdown and sale of a Chinese-originated crypto mining operation located near a critical Air Force base in Wyoming, the New York Times reported.

The executive order, issued on Monday, mandates the immediate cessation of operations at the facility, which is situated just a mile from the F.E. Warren Air Force Base, a key site for the control of nuclear-armed intercontinental ballistic missiles, the report said.

High-Tech Espionage Risks Highlighted

The cryptomining facility, operated by MineOne Partners Limited and related MineOne entities registered in Delaware, was flagged as a potential security risk due to its proximity to sensitive military installations and a nearby Microsoft data center that supports the Pentagon.

Microsoft had previously alerted the federal Committee on Foreign Investment in the United States (CFIUS) about the dangers posed by the mining operation, suggesting it could facilitate extensive intelligence-gathering activities by China.

In a report obtained by NYT, Microsoft detailed how the industrial-level computing power of the cryptomining facility, combined with the presence of Chinese nationals, could open significant threat vectors for espionage. The investigation by CFIUS confirmed these risks, prompting President Biden’s decisive action to mitigate any potential threats.

Broader Crackdown On Foreign-Owned Tech Enterprises

This executive order is part of a broader strategy by the Biden administration to scrutinize and regulate foreign investments in sectors deemed critical to national security.

Just weeks earlier, a bipartisan bill was signed to ban the social media app TikTok in the United States unless its Chinese owner divests ownership.

The targeting of the Wyoming cryptomining facility reflects a growing consensus in Washington to protect the nation’s technological and strategic infrastructure from foreign interference.

States are also taking similar measures. Arkansas recently enacted laws prohibiting foreign ownership of cryptocurrency mining operations, particularly those from China, Iran, and Cuba.

This legislative action aims to curb the influence of foreign nationals in critical sectors, following reports of Chinese investors operating multiple cryptomines in the state.

The Arkansas laws require foreign-owned cryptomines to divest within a year and impose strict operational restrictions to address local concerns about noise and environmental impact.

Impact On The Crypto Industry

The shutdown order highlights the increasingly challenging regulatory environment for the cryptocurrency industry, particularly for operations with foreign ownership.

Chinese-owned cryptomining facilities have proliferated across the US since China banned such activities domestically in 2021, drawn by the US’s cheap electricity and favorable legal landscape. However, these operations are now under heightened scrutiny due to their potential national security implications.

With President Biden’s order, the MineOne facility must remove all equipment within 90 days and sell or transfer the property within 120 days. The vast majority of the machinery used in these operations is manufactured by Chinese companies, further complicating the security landscape.

Future Of US-China Tech Relations

Biden’s actions represent a clear stance on prioritizing national security over economic or commercial interests when foreign investments pose potential threats. This move is likely to set a precedent for future scrutiny and regulation of foreign-owned enterprises in sensitive sectors.

As the geopolitical rivalry between the US and China intensifies, the intertwining of national security concerns with technology and economic policies will become more pronounced.

Businesses, especially those in high-tech and critical infrastructure sectors, will need to navigate this complex environment, reassessing their operations and compliance strategies to align with stringent US national security policies.

Featured image from Utah’s Adventure Family, chart from TradingView

The Terra community isn’t relenting in its efforts to revive the LUNC and USTC tokens and take them back to their old glory days. This time, the community has proposed a proposal to ensure that the Luna Classic’s (LUNC) circulating supply data is well documented. 

Terra Community Proposes All Allnodes As An Official Organization

The text proposal titled ‘Change official CS API endpoint to Allnodes FCD’ aims to make Allnodes an official organization of the Terra community. Allnodes will be responsible for “hosting the endpoint, providing the correct circulating supply data for Luna Classic.” The proposal also aims to get an agreement from community members about how this circulating supply should be calculated. 

Related Reading: Crypto Price Predictions For 2024: Dogecoin To $2 And XRP To $3

Furthermore, the proposal highlighted why the appointment of an organization like Allnodes has become necessary. It noted that the absence of a named individual or organization to provide this circulating supply data has opened up the possibility of just anyone making changes to this data, which “could be harmful to the chain.” The proposal also included that such unauthorized changes can usually be made without informing developers, validators, or community members

Therefore, it has become essential to appoint an “official source” like Allnodes, which will be the go-to platform for getting the correct data on LUNC’s circulating supply. To accomplish this, Allnodes will be asked to update to the latest FCD version that implements the agreed mechanism for calculating LUNC’s supply. 

The Proposed Method For Calculating LUNC’s Circulating Supply

The proposed method for calculating LUNC’s circulating supply is to deduct unvested tokens, community pool holdings, and staked and bonded tokens from the total supply. Before now, LUNC’s circulating supply is said to have been calculated by deducting the unvested tokens, community pool holdings, and configured bank accounts from the total supply. This former calculation led to LUNC being handled differently from all other native tokens. 

Related Reading: XRP 7-Year Long Accumulation Draws To An End, What This Means For The Price

Meanwhile, the proposal noted that the circulating supply inside FCD must not be changed without a governance vote going forward. If passed, Allnodes FCD API will also act as the official information source for USTC and all other native tokens besides Luna Classic. Allnodes already agreed to take up the role as long as the proposal is passed. 

Interestingly, data from the Galaxy Station (where the proposal was put up) shows that Allnodes has yet to vote on it. Meanwhile, twelve validators have voted yes in favor of the proposal, one has voted no against the proposal, and one other validator has voted no with veto power. 

Only 5.46% of those authorized to vote have voted, meaning the quorum of 40% needed to pass the proposal is far from being met. However, voting closes on May 19, so there is still enough time for the proposal to pass. 

John E. Deaton, a fervent advocate for XRP and critic of current regulatory approaches to digital assets, has officially secured his place on the Massachusetts Republican ballot for the 2024 US Senate elections. Deaton’s campaign announcement has stirred notable attention, setting the stage for a direct challenge against incumbent Democrat Senator Elizabeth Warren.

Pro-XRP Lawyer Is Officially On The Ballot

Deaton’s entry into the political arena follows his vocal criticism of what he perceives as overreach by the Securities and Exchange Commission (SEC) and particularly targets Senator Warren’s stance on cryptocurrency regulations. “Bad news for one of Washington’s most entrenched career politicians. Elizabeth Warren: Look who’s on the ballot!” Deaton announced on X after confirming the validation of 11,873 signatures needed to secure his candidacy.

I misspoke: 11,873 Certified Signatures.

Bad news for one of Washington’s most entrenched career politicians.

⁦@ewarren⁩: Look who’s on the ballot! pic.twitter.com/vmySVEwUJW

— John E Deaton (@JohnEDeaton1) May 13, 2024

In a series of statements shared on X, Deaton expressed his gratitude towards his supporters: “I am proud to announce I am officially on the ballot for the US Senate. A huge thank you to all the volunteers and supporters who worked tirelessly to collect over ten thousand signatures.”

He added, “Make no mistake, I am in this fight to win. Voters in Massachusetts are sick of Washington corruption. Senator Elizabeth Warren’s extremism represents everything that is wrong with our current politics, and why voters are telling me they’re ready for change.”

Deaton has been a significant figure in the legal battles involving XRP, a digital currency often in the crosshairs of US regulators. He pointedly criticized the SEC’s classification of XRP as a security, which contrasts with the stance of several other countries that deem it a non-security asset.

“Japan was one of the countries that declared XRP NOT a security. Yet, our SEC, without any support in the law, declared XRP itself a security,” Deaton remarked. He highlighted his representation of 75,000 XRP holders in the US and globally, arguing their case pro bono, which ultimately led to a legal victory where US District Judge Analisa Torres ruled that XRP itself is not a security.

Reflecting on his legal achievements and his advocacy for cryptocurrency, Deaton positioned his Senate run as part of a broader battle against governmental overreach. “Our next biggest victory against government intrusion and oppression will be when I defeat Warren, come November,” he declared.

Deaton’s campaign has already attracted support from various corners, including crypto-related political action committees (PACs) and individuals within the crypto community like Cardano founder Charles Hoskinson as well as individuals from outside the community like Mark Cuban who view his candidacy as a counter to Senator Warren’s allegedly “irrational attacks on the crypto industry” and her efforts to sever connections between banks and cryptocurrency entities.

As the first GOP candidate to make it onto the Massachusetts ballot for the upcoming election, Deaton’s campaign is poised to be a focal point for discussions on cryptocurrency regulations and their role in broader US policy.

At press time, XRP traded at $0.50588.

After five weeks of fleeing the digital asset market, investors are cautiously dipping their toes back in, with Bitcoin (BTC) emerging as the clear favorite. A recent report by CoinShares reveals a net inflow of $130 million into crypto investment products, marking a potential turning point after a period of sustained outflows.

US Investors Lead The Charge

The United States emerged as the primary driver of this shift, contributing the lion’s share of the inflows. This trend can be attributed, at least partially, to a slowdown in selling pressure from Grayscale, the world’s largest digital currency asset manager. Grayscale’s Bitcoin Investment Trust (GBTC) witnessed its lowest weekly withdrawals in five months, further bolstering investor confidence.

Hong Kong Joins The Inflow Party

While the US spearheaded the net inflow movement, Hong Kong also displayed a newfound interest in Bitcoin. Hong Kong-based Bitcoin ETFs attracted nearly $20 million, showcasing a growing regional appetite for the flagship cryptocurrency. However, these inflows paled in comparison to the dominance of Wall Street offerings, which raked in more than $130 million across various Bitcoin-focused products.

ETP Trading Volume Hints At Investor Caution

Despite the positive news surrounding net inflows, the report also highlights a concerning trend – a significant decline in overall trading volume within Exchange Traded Products (ETPs).

Compared to last month’s $17 billion weekly average, the current volume of $8 billion suggests a more cautious approach from investors. Analysts interpret this as a sign that while some are dipping their toes back in, a large portion of investors remain on the sidelines, waiting for a clearer market picture.

Bitcoin Sentiment Rebounds, Ethereum Outflows Persist

The recent price fluctuations within the crypto market appear to have had a contrasting impact on investor sentiment towards Bitcoin and Ethereum (ETH). Bitcoin, which witnessed a downward spiral of outflows earlier in May due to plummeting prices, seems to be regaining investor favor with the recent inflows.

However, the story is quite different for Ethereum. Unlike Bitcoin, the world’s second-largest cryptocurrency continues to experience outflows, amounting to $14 million last week.

Regulatory Uncertainty Clouds Ethereum’s Future

Analysts point towards the ongoing regulatory uncertainty surrounding Ethereum ETFs in the US as a major factor contributing to the outflows. The SEC’s delay in approving spot Ethereum ETFs has fueled skepticism among investors, leading many to believe that regulatory approval may not materialize.

This sentiment has been further solidified by recent enforcement actions taken against Ethereum-related entities like Consensys, Uniswap, and even crypto trading platforms like Robinhood.

Light At The End Of The Regulatory Tunnel?

While the SEC’s current stance remains ambiguous, there’s a potential ray of hope on the horizon. Proposed bills and initiatives in Congress might bring much-needed clarity regarding the regulatory body that will oversee the crypto industry. A definitive framework could significantly impact future market trends and investor confidence.

Featured image from Gangnam Times, chart from TradingView

In a court filing on May 13, 2024, Ripple Labs has formally requested the United States District Court for the Southern District of New York to seal various documents that were submitted in connection with the SEC’s Motion for Judgment and Remedies. These documents, collectively referred to as the “Remedies Materials,” contain sensitive financial data, including audited financial statements, revenue, expenses, and other confidential business information.

Breaking Down Ripple’s Request To Seal

Ripple’s legal counsel, Andrew J. Ceresney of Debevoise & Plimpton LLP, articulated in the letter to Judge Analisa Torres the rationale behind the request. Ceresney’s argument focuses on the potential damage to the company’s competitive position, noting, “Public disclosure of this information would be highly detrimental because it would reveal detailed information about Ripple’s financial condition, long-term business plans, revenue streams, and expense structures to the marketplace, including competitors, customers, and future business partners and customers.”

A core objective of Ripple is to seal the discounts offered to institutional buyers of XRP. The motion lays out three main reasons to justify their request for sealing.

Protection of Highly Confidential Financial Information: Ripple emphasizes the critical nature of the documents it seeks to seal, particularly its audited financial statements and related materials.

According to Ceresney, “The documents and information are non-public and their disclosure would cause significant harm to Ripple’s business interests and competitive standing.” He argues that these documents contain sensitive financial metrics that are vital to maintaining the company’s proprietary strategies and competitive position in the marketplace.

Preservation of Negotiating Power: Another significant aspect of the request is to protect the details of its financial terms negotiated with third-party business partners. The company asserts that revealing the XRP sale terms could compromise its competitive position and adversely affect its negotiating capabilities in future deals.

The motion details the potential repercussions, noting, “Revelation of the financial terms of its contracts with counterparties and customers […] could result in serious damage to Ripple’s negotiating position with future counterparties, and would cause competitors to adjust their sales plans and pricing policies to compete with Ripple in the marketplace.”

This section underscores the concern that such disclosures could not only harm its individual bargaining power but also provide competitors with unjust insights into the company’s strategic operations.

Ensuring Privacy of Non-Parties: Ripple also seeks to redact the identities of non-party entities like XRP investors, customers, and business partners, asserting that their privacy should be protected as their identities and contact information are irrelevant to the legal issues at hand and could be misused if disclosed.

The motion articulates, “The identities of these non-parties have no bearing at all on the Court’s resolution of the Remedies Motion and therefore their privacy interests outweigh the presumption of public access.” Ripple stresses that such disclosure poses unnecessary risks to the individuals and entities involved and does not contribute to the resolution of the case.

Ripple’s legal team also points out that the SEC has not opposed several of the sealing requests, which might play in favor of their motion. Citing previous cases where the court granted similar requests for sealing and redaction, the motion suggests that there is a strong precedent supporting their request.

Pro-XRP lawyer Bill Morgan commented, “a company has every right to seek to protect commercially sensitive information. In this situation, the need for Ripple to even apply to seal information on discounts arises from the SEC putting this in evidence and its weak argument that pecuniary harm is suffered by a sophisticated institutional investor […].”

At press time, XRP traded at $0.507.

The Commodity Futures Trading Commission (CFTC) has taken action against crypto brokerage firm Falcon Labs, a company based in the Seychelles, for failing to register as a futures commission merchant (FCM) in the US. 

Interestingly, this marks the CFTC’s first enforcement action against an unregistered futures commission merchant involved in providing “unauthorized access” to crypto exchanges.

Falcon Labs Faces CFTC Crypto Crackdown

Under the CFTC order, Falcon Labs is required to immediately cease acting as an unregistered FCM, specifically by facilitating US individuals’ access to digital asset derivatives trading platforms. 

In addition, Falcon Labs was ordered to pay a disgorgement of $1.7 million and a civil penalty of $589,000, the latter in recognition of the company’s cooperation with the CFTC’s Division of Enforcement, as described in the order.

Ian McGinley, the Director of Enforcement at the CFTC, emphasized the agency’s commitment to maintaining integrity in the derivatives markets and ensuring compliance with registration requirements. He stated: 

The CFTC’s enforcement program has made clear it will not tolerate digital asset exchanges that fail to register with the CFTC or comply with the agency’s rules that maintain integrity in the derivatives markets,” said Director of Enforcement Ian McGinley. And now the CFTC is taking the fight one step further by, for the first time, charging an intermediary that inappropriately facilitated access to those exchanges. Today’s action highlights that the CFTC will not hesitate to charge any entities—exchanges or intermediaries—who are providing customers access to digital asset products and services that require registration but have failed to appropriately register. 

‘Unregistered Activities’ In Crypto Derivatives Market

The CFTC’s order reveals that from around October 2021 through at least March 27, 2023, Falcon Labs solicited and accepted orders for digital asset derivatives from US-based customers. 

Acting as an intermediary, Falcon Labs facilitated customer trading on various digital asset exchanges, including institutional customers in the United States.

According to the CFTC, Falcon Labs provided direct exchange access by creating a main account in its name and associated sub-accounts. Notably, the sub-account holders’ customer-identifying information was generally not required by the exchanges, nor provided by Falcon Labs.

During the period in question, Falcon Labs collected net fees totaling approximately $1.1M from customers engaging in crypto-derivative transactions facilitated by the company. 

Following the CFTC’s complaint against Changpeng Zhao, Binance Holdings Limited, Binance Holdings (IE) Limited, Binance (Services) Holdings Limited, and Samuel Lim in 2023, Falcon Labs reportedly increased its controls for identifying customer locations.

Featured image from Shutterstock, chart from TradingView.com

Toronto-based Bitcoin mining company Bitfarms has announced the termination of its interim president and chief executive officer (CEO), Geoffrey Morphy after he filed a $27 million lawsuit against the company. 

According to Bloomberg, the lawsuit alleges breach of contract and “wrongful termination” and seeks compensatory and punitive damages. Bitfarm believes the claims are without merit and intends to defend itself.

Bitfarms Shifts Leadership

Geoffrey Morphy, who assumed both leadership positions in late 2022, was initially slated to leave the company pending the appointment of his successor. However, following the lawsuit, Bitfarms immediately terminated Morphy’s employment, and he no longer serves as a company director.

Bitfarms has named Nicolas Bonta, the company’s chairman and co-founder, interim president, and CEO, while the search for a permanent replacement is underway. The search is nearing completion, with Bitfarms anticipating the appointment of a new CEO within the next few weeks.

Earlier in March, Bitfarms issued a press release emphasizing its commitment to meeting the growing investor interest in Bitcoin and mining worldwide. The company expressed its dedication to expanding operations to drive higher returns and maximize shareholder value.

Bitcoin Mining Industry Challenges Impact Bitfarms

Chairman Nicolas Bonta expressed gratitude for Morphy’s leadership and contributions, noting his instrumental role in modernizing Bitfarms’ management infrastructure, expanding its mining portfolio, and facilitating international diversification. 

Notably, Morphy oversaw the company’s expansion into the United States, Paraguay, and Argentina, as well as its Bitcoin mining operations in Quebec. According to the Bitcoin mining company’s press release, Morphy’s efforts have positioned the company for future growth and a seamless transition in leadership.

Reflecting on his tenure, Morphy expressed pride in the accomplishments achieved as a team, including operational expansion, strengthening the balance sheet, and setting the stage for significant growth. He expressed confidence in the management team’s ability to achieve Bitfarms’ growth targets for 2024.

The Bitcoin mining industry has been grappling with several challenges in 2024, including elevated energy prices, intensifying competition, and the impact of the Halving event software code update in April. This update significantly reduced the main revenue stream for mining companies.

Although Bitcoin’s price surged in the first quarter, the production of new coins declined due to the surge in mining difficulty, which measures the computing power required to create new Bitcoin. Consequently, Bitfarms’ shares have declined by approximately 40% this year, with the stock closing at $1.73 on Friday.

As of press time, Bitcoin is trading at $62,700, having rebounded from the $60,000 support level that prevented further price declines in recent days.  

Featured image from Shutterstock, chart from TradingView.com 

Chinese law enforcement has disrupted a covert banking network that leveraged cryptocurrencies to execute unauthorized foreign exchange transactions totaling around 2.14 billion yuan ($295.8 million).

This illicit operation mainly converted the Chinese yuan into the South Korean won, evading the established legal frameworks for currency exchange.

Uncovering The Shadow Crypto Banking Network 

In Jilin province, police apprehended six people connected to this operation, underscoring the growing role of digital currencies in bypassing standard financial regulations.

According to official statements, this clandestine banking entity utilized cryptocurrencies’ inherent “anonymity and decentralization” to carry out these unlawful transactions.

It was reported that the accused managed domestic bank accounts to receive and channel funds and conduct over-the-counter cryptocurrency trades.

These activities primarily served several business types, including South Korean purchasing agents, cross-border e-commerce entities, and firms engaged in import-export trade. This setup enabled the illegal exchange of currencies between the yuan and the won, violating regulatory norms.

Notably, the busting of this underground bank is part of a broader crackdown by Chinese authorities on crypto-related activities. Despite banning cryptocurrencies and related operations like Bitcoin mining, China remains active in policing the sector.

This action follows the recent investigation of Yao Qian, a former pro-blockchain official, under suspicions of “serious violations of discipline and law.” However, details of the allegations against Qian remain unclear, with authorities only citing vague violations. The report noted:

Yao Qian, Director of the Science and Technology Supervision Department and Director of the Information Center of the China Securities Regulatory Commission, is suspected of serious violations of discipline and law and is currently under investigation by the Central Committee.

Challenges Facing China’s Digital Currency Initiatives

While China combats illegal crypto operations, it faces challenges in promoting its central bank digital currency (CBDC), the e-CNY, or digital yuan.

Despite government efforts to pilot the e-CNY in various cities and reports of billions in transactions, public reception remains tepid.

For instance, state employees in some regions are paid partly in digital yuan. Due to the lack of incentives and limited merchant adoption, they frequently convert their holdings back to cash.

The digital yuan struggles to compete with well-established digital payment platforms like Alipay and WeChat Pay, which dominate online and offline transactions.

Sammy Lin, an account manager at a Chinese state bank, noted the absence of benefits in holding the digital yuan, stating, “There’s no interest if I leave it there, and there aren’t many places where I can use it.”

This sentiment reflects broader concerns about the e-CNY’s practicality and the need for more compelling use cases to ensure widespread adoption.

Featured image from Unsplash, Chart from TradingView

Crypto analyst Davie Satoshi has dropped a bullish prediction for Shiba Inu as part of what might be the future outlook for major meme coins. According to the analyst, SHIB is one of the meme coins with the potential to go on a 1,000% to 3,000% price surge amidst a flurry of cryptocurrencies in the meme coin niche. SHIB, on the other hand, is currently struggling with bearish price action as the bulls find themselves outnumbered by the bears.  

Surge Potential For Shiba Inu

The crypto market is full of different meme coins, each with its own community. Particularly, meme coin demand has shot up this year, with many new meme coins shooting up in value. However, investing in meme coins has its own demerits. This is because the value of these cryptocurrencies is driven by hype and sentiment, as most of them do not have a real-world utility to back up their value. As a result, some of them can tank quickly and go back to zero as easily as they shot up.

Related Reading: Bitcoin ‘Danger Zone’ In 2 Days: Crypto Expert Explains What This Means

Despite this risk, some of these meme cryptocurrencies have established themselves as major industry players over the years. According to Davie Satoshi, SHIB is one of the few cryptocurrencies that fall in this safe category and can “never go to zero.”

From his viewpoint, SHIB can go on a 10x to 30x journey in the current market cycle. This translates to a 1,000% to 3,000% surge to a price range of $0.0002250 to $0.0006750. Interestingly, this prediction is way above the current SHIB all-time high, which is at $0.00008616.

How Feasible Is This Price Target For SHIB?

SHIB is no stranger to price rises of epic proportions. After the last halving, SHIB went on an 800,000% price surge and turned many of its early holders into crypto millionaires overnight. However, the crypto landscape has evolved since then and SHIB would need to gain a better mainstream adoption and develop utility before a similar price surge can occur. 

SHIB has grown over the years from its early days as a meme cryptocurrency and now stands behind only DOGE in terms of meme coin market cap. The Shiba Inu ecosystem is now home to its own community projects including a layer-2 scaling solution (Shibarium), other tokens like BONK and LEASH, and many others. 

Shiba Inu’s team members are actively working to transform the cryptocurrency into a utility-based cryptocurrency. According to a similar prediction from crypto analyst Xanrox, Shiba Inu will definitely go higher later this year. Per his analysis, the best price to get in and catch the bounce to the upside is $0.00002249. 

At the time of writing, SHIB is trading at $0.00002181 and is down by 3.45% in the past 24 hours. Davie Satoshi also mentioned DOGE, PEPE, WIF, and COQ as meme cryptocurrencies with the potential to grow by 10x to 30x.

On-chain data suggests a Bitcoin indicator is currently mirroring the same trend that led to the top of the bull run in 2021.

Bitcoin Long-Term Holder Distribution Appears To Be Ending

As explained by CryptoQuant community manager Maartunn in a post on X, the BTC long-term holders are currently showcasing a trend that’s reminiscent of 2021.

The “long-term holders” (LTHs) are Bitcoin investors who have been keeping their coins dormant (that is, not transferring or selling them from their wallet) for more than 155 days.

Generally, the longer a holder keeps their coins still, the less likely they are to move them at any point. As such, the LTHs, with their long holding times, are considered the market’s resolute hands.

These investors usually don’t react to events in the wider market, like a rally or crash, but this year’s price surge towards the new all-time high (ATH) has forced even these HODLers into selling.

The chart below shows the trend in the total Bitcoin supply held by the addresses belonging to the LTH cohort over the last few years:

As the graph shows, Bitcoin LTHs were accumulating between the May 2021 crash and this year’s rally. With this rise towards the new ATH, though, the supply of these HOLDers has started observing a downtrend instead.

Something to keep in mind is that the indicator has a 155-day delay when it comes to buying, as only mature supplies can count under it.

Thus, when the metric goes up, it doesn’t mean that there is accumulation in the present but rather that some buying occurred 155 days ago, and these coins have just now aged enough to count under the LTHs.

For selling, though, no such delay is attached, as coins exit the group as soon as they are transferred on the network. As such, the latest decline would correspond to a selloff that has been happening in the present.

Recently, as the Bitcoin price has fallen prey to stagnation, the LTHs have slowed down their selling, with the supply more or less moving sideways. As Maartunn has highlighted in the chart, this trend is similar to what was observed in 2021.

The LTHs ending their distribution then meant a top for the cryptocurrency. A similar pattern was also witnessed during the 2017 bull run. Therefore, going by these historical precedents, the latest flat movement in the LTH supply could also suggest a potential peak for the latest bull run.

This is only if, of course, the LTH distribution has truly ended. The chart shows that in each of the last two bull markets, the initial sharp selling from the LTHs was followed up by a phase of slower-paced distribution.

This slowed-down decline continued for months before the metric reached the consolidation phase and the asset’s top occurred. It now remains to be seen if the latest trend shift in the Bitcoin LTH supply corresponds to the former or the latter phase.

BTC Price

At the time of writing, Bitcoin is floating around the $62,700 level, down almost 2% over the past week.