There are two potential risks to the price of Bitcoin – DL News

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Bitcoin ETFs continue to dominate the cryptocurrency markets.

Grayscale GBTC caused Bitcoin price to fall. Newly converted ETFs saw $2.2 billion in outflows in the first seven days of trading.

JPMorgan said Thursday that the bleeding from Grayscale’s ETFs could get worse. The investment bank said it could reach $10 billion.

In New York, Coinbase asked a federal judge to dismiss the lawsuit brought against it by the Securities and Exchange Commission. said a source close to the cryptocurrency exchange DL News Before the hearing, they expressed their admiration for the judge’s “examination of details.”

After the hearing, Elliott Stein, a senior litigation analyst at Bloomberg Intelligence, said there was a 70% chance the case would be dismissed outright.

Binance’s pre-trial hearing is scheduled to take place on Monday after the court postponed the proceedings due to weather.

What we watch

Bitcoin ETF euphoria has been a major market driver over the past few months. Now that spot ETFs have been approved, launched, and making money, it’s time to consider other influences, such as interest rates.

Following dovish signals from the US Federal Reserve in December, market participants factored in multiple interest rate cuts in 2024, which could have been a boon for Bitcoin’s price. These hopes are now fading.

Low interest rates benefit risk assets like Bitcoin as investors take on more risk in search of returns.

This also increases the money supply, which will impact Bitcoin due to its high correlation, Fidelity Digital Assets noted in its 2024 forecast.

But investors cannot count on interest rate cuts. Many Fed policymakers have warned against cutting interest rates too early. European Central Bank President Christine Lagarde shared similar hawkish statements, saying optimism does not help fight inflation.

The market responded by repricing its expectations this week. The probability that the Fed will cut interest rates by 25 basis points in March fell to 52% from 77% a week ago, according to the Chicago Mercantile Exchange’s FedWatch tool.

The US dollar is also affected by interest rate cuts, and has performed well since the beginning of January. The dollar index has risen about 2% so far this year, indicating improved strength of the dollar compared to other currencies.

The price of Bitcoin has a negative relationship with the dollar. When the dollar performs well, Bitcoin historically performs poorly. Its continued strength poses a significant headwind for Bitcoin.

The European Union is on the verge of banning and restricting some of the most valuable features in the cryptocurrency space

Restrict self-wallet payments. Increased traceability of crypto transfers. Ban privacy coins. These are the three crucial changes considered by EU lawmakers this week.

Telegram trading bot Unibot hits record usage on Solana after Ethereum success

Telegram bots welcome a flood of new users from the memecoin trading community on Solana. Solana now largely dominates trading volumes through Unibot, and competitors are taking notice.

BlackRock and Fidelity dominate the “two-way race” for billions in Bitcoin ETFs

Major investment firms BlackRock and Fidelity have emerged as the front-runners in the spot Bitcoin ETF race. ETFs for both companies reached more than $1 billion in assets under management as of Friday.