The buzz around Bitcoin mounts, millions of dollars go missing from a DeFi platform
The third week of December was quite productive. Bitcoin is on the rise, foundations and business companies continue to pour their funds into it. It even makes U.S. banks worry about how Gold will be positioned because of that.
BTC reaches $24,000
Bitcoin continues to set records, its price has already reached $24,000. Experts predict that altcoins will actively follow suit since investors fix profits from Bitcoin and start considering other promising coins as investment assets. Some experts recommend to stake on Ethereum with its huge potential, while others suggest to pay attention to rarer tokens.
Is Bitcoin replacing Gold?
Meanwhile, U.S. banks worry about the value of Gold amid the growing popularity of cryptocurrencies. As we know, many investors, including institutional ones, now view bitcoin as a backup asset that can protect their capital from inflation. This role originally belonged to Gold. Others prefer to avoid bitcoin due to its high volatility.
Chicago Mercantile Exchange adds Ethereum trading contracts
The Chicago Mercantile Exchange is adding Ethereum trading contracts. They will be available in February 2021. The reason for adding them is a high customer demand, which is always a key factor for making such decisions. On the other side, this very news had a noticeable effect on the cryptocurrency market as a whole. The BTC rate broke above $20,000. Ethereum, in its turn, renewed its price record established back in 2018.
Coinbase goes for an IPO
Coinbase has applied to the SEC (U.S. Securities Commission) to become a public company and issue its own securities. The details of the IPO are not yet known, and it is too early to rush and buy shares. Let’s wait for the SEC decision, as it is still reviewing the application.
Funds buy BTC
Hedge fund One River Asset Management announced that it is going to buy $600,000 worth of bitcoins in addition to the $400,000 worth already bought. The company didn’t draw much attention to the purchase in November so as not to provoke a rate hike. Now many companies and funds have already leaped in both feet, so there is nothing to be afraid of. For example, the Ruffer investment fund also invested 2.5% of its assets which exceed $27 billion in total.
A recently launched DeFi platform Warp.finance has been active for as little as one week before being hacked. The financial loss was estimated at $7.7 million. The hackers used a credit scheme involving dYdX and Uniswap platforms for the theft. The company pledged to pay most of the sum back to users with money from the bailout fund.
However, most of this week’s news is positive. The crypto market is developing and growing, and more institutional investors set their eyes on it. That’s a good sign!