Blockchain

Stablecoins like USDC have become a cornerstone in the cryptocurrency ecosystem, offering unique stability and reliability. This article provides an in-depth exploration of the USDC Coin, offering you a detailed understanding of its functions, market dynamics, and the organization behind it, particularly Circle USDC. As you navigate through this guide, you’ll gain insights into the USDC price and its stability, explore whether USDC is fully reserved, and understand its role and impact within the broader crypto ecosystem.

What Is USDC? An Overview

USDC, or USD Coin, stands as a paradigm of stability in the volatile world of cryptocurrencies. It is a type of stablecoin, which means its value is pegged to a stable asset, in this case, the US dollar. This pegging mechanism is designed to combine the flexibility and speed of cryptocurrency transactions with the stability of a fiat currency.

USDC operates on several blockchain platforms, including Ethereum and Solana, making it a multi-chain asset. This flexibility allows for broader adoption and integration into various decentralized finance (DeFi) applications and ecosystems.

One of the critical features of USDC is its backing by fiat currencies, typically held in reserve by regulated financial institutions. This backing not only provides a level of security but also enhances trust among users, as each USDC token is purportedly equivalent to one US Dollar held in reserve.

Moreover, USDC’s adherence to regulatory compliance and transparency standards, particularly in terms of reserve audits, further cements its position as a reliable and trustworthy digital currency in the crypto market.

The Basics of USDC In The Crypto World

In the dynamic landscape of cryptocurrencies, USDC has carved out a niche as a stablecoin that bridges the traditional financial world with the burgeoning digital economy. Its creation and ongoing management by Circle, in collaboration with Coinbase, reflect a commitment to ensuring that the coin maintains its 1:1 peg to the USD through regular audits and compliance with financial regulations.

The utility of USDC extends beyond mere value storage. It is a crucial instrument in various crypto-related activities, including trading, lending, and yield farming, as it provides a stable medium of exchange and value reference. Additionally, USDC’s integration into various blockchain ecosystems has made it a linchpin in the DeFi space, facilitating seamless transactions across different platforms without the typical volatility associated with other cryptocurrencies.

As such, USDC is not just a digital version of the dollar; it is a vital tool for financial innovation and digital economy expansion, reflecting the evolving nature of money and finance in the 21st century.

The Mechanics Of USDC Stablecoin

Understanding the mechanics of USDC is crucial for comprehending its stability and efficiency as a digital currency. In this section, we delve into the technical aspects that govern USDC’s functionality and its practical usage through the USDC contract address.

How Does The Stablecoin Function?

At first, USDC was an ERC-20 token on the Ethereum blockchain, but it has expanded to other blockchains like Solana and Algorand. This interoperability allows for broader utilization across various decentralized platforms. The fundamental principle behind USDC’s functioning is its 1:1 peg to the US Dollar, maintained through a reserve of equivalent fiat currency. This reserve is audited to ensure transparency and trust.

The minting and redemption process of USDC is a critical aspect of its mechanics. Users can create USDC by depositing USD into a bank account managed by Circle, the consortium behind USDC. In return, an equivalent amount of USDC is minted and sent to the user’s blockchain address. Conversely, USDC can be ‘burned’ or destroyed to withdraw the equivalent USD, maintaining the stablecoin’s value in parity with the fiat currency.

USDC Contract Address

The USDC contract address or “USDC Token Address” is a fundamental component of its operation on various blockchains. These addresses represent a unique identifier for the smart contract that governs the USDC token on a specific blockchain. It is through these contract addresses that USDC interacts with the blockchain ecosystem, enabling transactions, minting, and redemption processes.

Here are the USDC contract addresses on different blockchains:

Ethereum (ERC-20): 0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48
Binance Smart Chain (BSC): 0x8ac76a51cc950d9822d68b83fe1ad97b32cd580d
TRON (TRC-20): TEkxiTehnzSmSe2XqrBj4w32RUN966rdz8
Solana: EPjFWdd5AufqSSqeM2qN1xzybapC8G4wEGGkZwyTDt1v
Avalanche: 0xB97EF9Ef8734C71904D8002F8b6Bc66Dd9c48a6E

Each blockchain has its unique contract address for USDC, allowing for seamless integration and interoperability across different platforms. These addresses enable the tracking and verification of USDC transactions, ensuring the integrity and transparency of the token across multiple networks.

The Organization Behind USDC Coin

At the helm of USDC’s development and ongoing operations is Circle, a prominent financial services company specializing in digital currency solutions. In partnership with Coinbase, one of the largest cryptocurrency exchanges globally, Circle co-founded the Centre Consortium, which oversees the USDC project.

 

Circle’s role in the USDC ecosystem is multifaceted. It involves overseeing the issuance of USDC, maintaining regulatory compliance, managing reserve assets, and ensuring the stablecoin’s overall integrity and transparency. Circle’s commitment to adhering to stringent regulatory standards, conducting regular audits, and publishing transparency reports has been instrumental in establishing and maintaining trust in USDC among users and regulators alike.

Moreover, the collaboration between Circle and Coinbase under the Centre Consortium umbrella is a testament to the synergy between traditional finance and modern fintech innovation. This partnership leverages Circle’s expertise in financial compliance and Coinbase’s robust platform and user base, creating a stablecoin that is widely accessible, highly secure, and seamlessly integrated into the broader cryptocurrency market.

Who Owns And Manages USDC?

Ownership and management of USDC are structured around the CENTRE Consortium, jointly created by Circle and Coinbase. This structure ensures a balance of power and shared responsibility in managing the stablecoin. While Circle plays a pivotal role in the operational aspects of USDC, including minting, redemption, and ensuring regulatory compliance, Coinbase contributes to its widespread distribution and integration into the cryptocurrency ecosystem.

The governance of USDC is designed to be transparent and compliant with existing financial regulations. Regular audits and public reports of the reserve holdings back the stablecoin, providing assurance of its backing and stability. This governance model is part of a broader strategy to maintain user trust and to ensure that USDC remains a stable and reliable digital asset within the volatile cryptocurrency market.

USDC Price And Market Dynamics

The USDC price is designed for stability, maintaining a 1:1 peg with the US dollar. This stability comes from a corresponding reserve of dollars, contributing to its minimal volatility compared to non-stable cryptocurrencies.

However, market dynamics can still influence USDC’s price, albeit in a more constrained manner. Factors such as transaction volume, liquidity in various exchanges, and overall demand for stablecoins can cause slight fluctuations in its value, often reflected in the premium or discount of USDC during high volatility periods in the broader crypto market. These deviations, although typically small, can create opportunities for arbitrage.

Arbitrage, in the context of a depegged USDC, involves capitalizing on the price difference between USDC and the actual USD. Traders can buy USDC at a discount (when its value falls slightly below one dollar) and redeem it for a full dollar, or conversely, sell it at a premium (when its value rises above a dollar). This practice, while potentially profitable, requires swift action and a keen understanding of market conditions, as the window for arbitrage is often narrow.

Conversion Mechanics

The conversion process between USDC and USD is a foundational aspect of its functionality. Users can convert US dollars into USDC by sending USD to the issuer’s bank account, triggering the minting of an equivalent amount of USDC. The reverse process involves ‘burning’ USDC, removing it from circulation, and withdrawing the equivalent amount in USD. This one-to-one exchange mechanism is facilitated by smart contracts on the blockchain, ensuring the transparency and audibility of the stablecoin’s supply.

The ease of conversion between USDC and USD underpins the token’s utility as a digital stand-in for the dollar, providing a stable medium for transactions and value storage in the cryptocurrency ecosystem.

Price Chart And Predictions

Despite its stable nature, analyzing USDC’s price charts can offer valuable insights, particularly during depegging events. Such analyses involve observing deviations from its pegged value, which can indicate market stress or changing perceptions about the stability of the stablecoin. While USDC is generally restored to its peg quickly, these fluctuations are closely watched by traders for arbitrage opportunities.

Long-term predictions about USDC often focus on its adoption rates, regulatory developments, and the overall growth of the stablecoin market. Observing transaction volumes and patterns also provides indicators of the broader crypto market’s liquidity and stability, informing investment strategies and risk management within the cryptocurrency space.

Safety: Is USDC Fully Reserved?

The safety and stability of USDC, a major concern for users and investors alike, hinge significantly on whether the stablecoin is fully reserved. To address this, Circle, the issuer of USDC, has implemented robust practices for transparency and accountability.

Notably, Circle provides monthly transparency reports. These are crucial in disclosing USDC’s reserve holdings and the associated minting and burning activities of the coin. These reports offer a clear view of the assets backing USDC, ensuring that each token is fully collateralized.

The backbone of this transparency lies in the audited consolidated financial statements, confirming that a mix of cash, cash equivalents, restricted cash, and USDC deposits back USDC. This approach aims to maintain a dollar-for-dollar parity, a critical factor for the trust and stability of the stablecoin.

In a significant move towards enhanced transparency and trust, Circle announced in January 2023 that it switched its auditing partner from Grant Thornton to Deloitte, one of the ‘Big Four’ accounting firms. This change aligns Circle with Coinbase, which also uses Deloitte for its accounting and audits. Remarkably, the decision to partner with Deloitte for proof of reserves audits represents a step forward in ensuring the highest standards of financial scrutiny and transparency for USDC.

Regulatory Insights: SEC Vs. Circle

Circle, the issuer of USDC, has actively engaged with the SEC to navigate the evolving regulatory landscape of cryptocurrencies. In July 2021, Circle received an investigative subpoena from the SEC, requesting information about its holdings, customer programs, and operations. Circle has cooperated fully with this investigation, demonstrating its commitment to regulatory compliance​​.

Furthermore, Circle has taken a firm stance that stablecoins like USDC should not be classified as securities. In September 2023, during its intervention in the SEC’s case against Binance, Circle argued that payment stablecoins like USDC, tied to assets like the dollar, lack features of an investment contract because their users do not expect profits from standalone purchases. This position suggests that such assets, according to Circle, fall outside the SEC’s jurisdiction, supported by decades of case law that distinguishes asset sales from investment contracts​​.

Conclusion: Is USDC Safe?

Assessing the safety of USDC involves considering several factors, including its reserve backing, regulatory compliance, and Circle’s proactive engagement with regulatory bodies. The fact that each USDC is backed by a dollar in reserves, verified by regular independent audits, provides a strong foundation for its stability.

Circle’s cooperative stance with the SEC and its argument that USDC does not constitute a security further highlight its commitment to compliance and transparency. While no digital asset is entirely risk-free (see below section about historical depegs), these measures position USDC as one of the more reliable and secure stablecoins in the cryptocurrency market.

USDC In The Cryptocurrency Market

As a key player in the cryptocurrency market, USDC’s role and performance can be best understood in the context of its interaction with other stablecoins and its historical stability, particularly during depeg events.

Comparison With Other Stablecoins

USDC is often compared with other major stablecoins like Tether (USDT) and Binance USD (BUSD) due to its similar goal of providing stability in the volatile crypto market. While all these stablecoins aim to maintain a 1:1 peg with the US dollar, they differ in their operational approaches, transparency levels, and regulatory compliance.

USDC stands out for its strong commitment to regulatory standards and transparent auditing practices, setting it apart from competitors like USDT, which has faced scrutiny over reserve backing. Unlike the “offshore” labeled USDT (Tether), a top-tier firm audits USDC’s operations and reserves, enhancing its credibility and trust. Tether, on the other hand, has drawn criticism for its less transparent reserve audits, not conducted by a ‘Big Four’ audit firm.

On the other hand, BUSD, which is a stablecoin issued by Binance in partnership with Paxos, has faced regulatory issues. Binance announced in August 2023 that it will gradually end support for BUSD, following a directive from the New York Department of Financial Services (NYDFS) to Paxos to halt the minting of new BUSD tokens.

USDC Depeg: A Brief History

USDC has a strong track record of maintaining its peg to the USD, but it has faced moments of depegging. A notable instance occurred during the banking turmoil involving Silicon Valley Bank (SVB) in March 2023.

Circle disclosed that it had $3.3 billion of its reserves in SVB. Amid fears of a banking crisis, USDC’s price on exchanges like Kraken plunged to 87 cents, a significant deviation from its $1 peg. This event led to a surge in trading volumes as market participants rushed to arbitrage opportunities, and decentralized exchanges saw record-high volumes.

Circle swiftly addressed the situation by removing about 3.9 billion USDC from circulation, exceeding the amount minted, and confirmed the transfer of its reserves to BNY Mellon. Subsequently, USDC regained its peg, highlighting its resilience despite the temporary depeg caused by external banking pressures​.

Use Cases For The Stablecoin

USDC’s versatile nature enables its use in a variety of financial activities, ranging from straightforward buying and selling to more complex applications like staking, earning interest, and participating in lending and borrowing schemes.

Buying, Staking And Earning Interest

Users can stake USDC by locking up their tokens to support a blockchain network’s operation, earning interest in return. Additionally, many platforms offer interest-earning accounts where depositing USDC can yield returns, similar to a traditional savings account but often at higher rates.

Notably, the interest rates vary greatly depending on the platform. The rate can be an indication of how risky the provider’s practices are in order to earn the interest. You should always read the terms and conditions in detail to understand what is happening with your money.

Borrowing, Lending And Practical Uses

In decentralized finance (DeFi), many use USDC for borrowing and lending. Users can lend their USDC to earn interest or use it as collateral to borrow other assets. This flexibility makes USDC a valuable tool for liquidity and risk management in the crypto ecosystem. Here, too, you should understand the risks of the respective products before you invest.

How To Buy USDC?

Buying USDC typically involves registering on a crypto exchange or platform that supports USDC trading. Users can purchase USDC using fiat currencies like USD or exchange it for other cryptocurrencies. The process involves creating an account, completing any required KYC procedures, and then executing the purchase through the platform’s trading interface.

The Future Of USDC

USDC’s future is taking shape with its growing role beyond traditional cryptocurrency trading and speculation, as it ventures into global payments, decentralized finance (DeFi), and the emerging metaverse.

Growth and Future Projections for USDC

Several emerging use cases could drive USDC’s growth:

Mainstream Cross-Border Payments: USDC could revolutionize mainstream e-commerce and B2B payments across borders. Its advantages over traditional bank wires, demonstrated by partnerships like Visa’s with Circle, highlight its potential in real-world commerce​​.
Financial Inclusion: USDC presents opportunities for expanding financial inclusion, particularly for the unbanked and underbanked. It offers an accessible digital payment infrastructure that bridges geographic and cost barriers, potentially transforming access to financial services worldwide​​.
DeFi Ecosystem: In the DeFi space, USDC is a popular choice due to its price stability. The stablecoin sees widespread use for loans, borrowing, and yield farming on DeFi lending platforms. Moreover, decentralized exchanges use USDC as a base pair for trading.
NFT Market: The rise of NFTs has seen USDC emerge as a preferred medium for transactions. It’s offering a more affordable way to purchase NFTs compared to high gas fees associated with other cryptocurrencies​​.
Metaverse Economies: As virtual worlds in the metaverse evolve, USDC is becoming an important digital currency for in-world transactions, offering price stability for buying virtual goods and services​.

Innovations And Developments In The Ecosystem

USDC stands ready for continuous innovation, potentially expanding its blockchain integration and developing new features to meet user needs. Its role in facilitating more equitable financial services and its integration into evolving digital economies positions USDC as a significant player in the future of digital currency and global finance.

Frequently Asked Questions (FAQ)

What Is USDC Coin?

USDC, or USD Coin, is a digital stablecoin pegged to the US dollar. It offers stability in cryptocurrency transactions compared to more volatile digital currencies.

Is USDC ERC-20 Based?

Yes, USDC is primarily based on the Ethereum blockchain, following the ERC-20 standard. It’s also available on other blockchains like Solana and Algorand.

What’s Circle USDC?

Circle USDC refers to the USDC stablecoin issued by Circle, a financial technology firm. Circle co-founded the CENTRE Consortium with Coinbase to govern USDC.

What USDC Interest Rates Can You Earn?

Interest rates for USDC vary by platform. DeFi protocols and crypto lending platforms often offer competitive rates for lending USDC.

What Is True About USDC?

USDC, a stablecoin, maintains a 1:1 peg to the US dollar. Equivalent assets back the value of USDC.

What Is USDC Crypto?

USDC Crypto refers to the USDC stablecoin. It serves various purposes in the cryptocurrency market, including transactions, trading, and acting as a stable store of value.

Who Owns USDC?

Circle issues USDC, and the CENTRE Consortium, a collaboration between Circle and Coinbase, governs it.

What Are The Latest USDC News?

For the latest USDC news, check NewsBTC.com and Bitcoinist.com.

What Is The USDC Contract Address?

The USDC contract address varies by blockchain. For Ethereum, it’s 0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48.

What Is The USDC Token Address?

The USDC token address refers to the specific address for USDC on various blockchains, like the ERC-20 address on Ethereum. It’s: 0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48.

Can You Borrow And Lend USDC?

Yes, you can use USDC for borrowing and lending on various DeFi platforms.

What Can You Do With USDC?
You can use USDC for transactions, trading, staking, lending, and as a stable store of value in digital finance.
What Is The USDC Meaning?

USDC stands for USD Coin, signifying its peg to the US dollar.

How Does USDC Work?

USDC works by maintaining a stable value pegged to the US dollar. Equivalent reserves back it, and it operates on blockchain technology.

Where Can You Check The USDC Reserves?

You can check USDC reserves through Circle’s transparency reports and independent audit statements.

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As anticipation builds for the long-awaited approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC), an encouraging sign has emerged, further increasing the likelihood of approval. 

The SEC issued an investor alert regarding “crypto asset securities,” prompting speculation that the spot Bitcoin ETF may be closer than ever. 

Spot Bitcoin ETF Approval On The Horizon?

The recent investor alert issued by the SEC has garnered significant attention in the cryptocurrency community. While the alert does not explicitly mention the spot Bitcoin ETF, many market participants believe it is a positive indicator for its potential approval.

The parallel between the investor alert and the approval of Bitcoin Futures adds to the growing optimism surrounding the spot Bitcoin ETF. Before approving Bitcoin Futures, the SEC issued similar alerts and warnings, indicating their concern and engagement with the underlying asset class. 

Consequently, market observers, including Bloomberg’s ETF expert Erich Balchunas, are interpreting the investor alert on “crypto asset securities” as a potential precursor to the approval of a spot Bitcoin ETF. Balchunas stated: 

Oh snap, SEC tweeting out educational materials, warnings on crypto investing, which is something they also did ahead of $BITO

It is important to note that the SEC will evaluate various factors, including investor protection, market integrity, and compliance with existing regulations, before making a final determination on the spot Bitcoin ETF. 

However, given the increased attention and progress in cryptocurrency, the issuance of the investor alert signifies a step in the right direction.

Potential BTC Surge To $48,000 

Renowned crypto analyst, Crypto Con, has made interesting observations regarding BTC’s current market dynamics that shed light on the potential next steps for the largest cryptocurrency on the market.

According to Crypto Con, money has been pouring into BTC at a rate not witnessed since the last cycle’s peak, with historical data indicating similar patterns on only five prior occasions. 

This influx of funds has heightened the market’s sentiment and created anticipation for potential further price gains. Crypto Con highlights the significance of Bitcoin’s Money Flow Index (MFI), a technical indicator used to measure the strength and volume of funds flowing into or out of an asset, which reached a value of 91.57, historically indicating the presence of additional bullish momentum.

Furthermore, the analyst identifies the .618 cycle retrace of weekly candle bodies as a point of interest for potential target ranges. This level aligns with other significant price regions, further bolstering its importance. 

Crypto Con suggests that Bitcoin’s price could likely reach the range of $47,000-$48,000 based on these target ranges. However, the analyst also notes that significant price increases are often followed by retracements at this stage in the market cycle.

Crypto Con highlights the potential for a retracement after the completion of the current price rise. The analyst identifies the $31,000-$32,000 range as an area of interest for a potential retracement based on long-term data. 

As of the time of writing, Bitcoin (BTC) is being traded at $43,800, showcasing a noteworthy recovery within the past 24 hours following a retracement below $42,900 on Thursday. 

While this price rebound is encouraging, it remains uncertain whether the prevailing market dynamics possess sufficient strength to propel Bitcoin beyond its current yearly high of $44,500. There is a possibility that Bitcoin may experience another failed attempt to surpass this level, which could subsequently result in a deeper retracement before witnessing another upward movement.

Featured image from Shutterstock, chart from TradingView.com 

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BONK, a Solana-based meme coin, has continued to outperform the likes of Dogecoin and Shiba Inu over the last week. As the SOL price has rallied, so has its ecosystem coins continued to rise. This has led to a Solana-based meme coin becoming the third-largest meme coin in the space.

BONK Meme Coin Beats Out PEPE For Third Place

Despite BONK debuting on the meme coin scene months before PEPE, the latter had been able to quickly capture a larger market share and eventually became the third-largest in the space. PEPE would maintain this dominance for months, even after an over 60% decline from its all-time high. But it seems that dominance has come to an end.

Over the last week, the BONK price has continued to rally, eventually rising above $0.000012. This put its market cap above $700 million, eventually beating out PEPE’s market cap. For context, the PEPE market cap is currently sitting at $650 million compared to BONK’s $717 million.

In the same vein, the BONK meme coin has also outperformed the top 10 meme coins by market cap. In a one-week period, BONK has risen 192% compared to PEPE’s 40% and FLOKI’s 27%. Even 9GAG’s Memecoin (MEME) falls behind with 41% gains in the 7-day period.

BONK’s price has risen 40% in the last 24 hours alone and its trading volume has not been left out of the action. Currently, the BONK daily trading volume is sitting at $213 million which is a 119% increase from its previous day’s figures, data from CoinMarketCap shows.

Dogecoin And Shiba Inu See Positive Headwinds

Despite not seeing a performance as good as BONK, other meme coins such as Dogecoin and Shiba Inu have also been seeing positive headwinds. Both assets have performed quite well in the last seven days as DOGE rose 15.4% and SHIB rose 20.1%.

There are also other metrics that are driving the positive headwinds for these assets. For Shiba Inu, its volatility has remained high which has historically been a bullish thing for the price. If this holds, then there could be more rallies to come.

Then for Dogecoin, multiple upcoming events could trigger a price rally. First is the Dogecoin moon mission which is taking a physical DOGE coin to the moon in December. Then in 2024, the DOGE-1 mission is expected to take off and it is the first space mission fully funded by crypto and paid for entirely in Dogecoin. DOGE’s open interest has also been on the high side, something that has often been a signal of a rally in the past.

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While the recent Bitcoin and crypto momentum is cooling off, Ethereum (ETH) rejects lower lows, especially against Bitcoin (BTC). Taking to X on December 8, decentralized finance (DeFi) researcher DefiIgnas shared insights that suggest ETH could be on the verge of a rally that would potentially see the second most valuable coin usurp BTC’s current position as the best-performing asset. 

Reasons That Might Drive Ethereum Bulls

The researcher observed that ETH is down 24% versus BTC in 2023. However, multiple fundamental indicators show that this is about to change. First, DefiIgnas noted that crypto investors are increasingly drawn to discounted Grayscale Ethereum Trust (GETH), which has been rallying over the past few months, outperforming Ethereum spot prices. 

GETH surged by 298% in the past few months, while ETH only rose by around 100% in the same period. As GETH share prices increased, its discount with spot ETH decreased. This means more capital indirectly flowed into ETH, leading to higher demand.

Besides GETH rising, the researcher remains bullish on Ethereum because of the recent developments surrounding the approval of the first spot Bitcoin ETF. The crypto community expects the Securities and Exchange Commission (SEC) to authorize multiple products, including those proposed by Fidelity and BlackRock.

In DefiIgnas’ assessment, once the spot Bitcoin ETF goes live, likely in early 2024, all “attention, narrative, and speculation” will shift toward the agency approving the first spot Ethereum ETF. BlackRock, the world’s largest asset manager, has already applied with the SEC to issue the first spot Ethereum ETF.

The expected activation of the Cancun upgrade in H1 2024 will also likely support Ethereum prices. Over the years, Ethereum has integrated multiple upgrades. This includes shifting to proof-of-stake (PoS) from proof-of-work (PoW) and overhauling their fee auction mechanism, introducing ETH burning.

However, with Cancun, the goal is to directly enhance the main net’s capabilities by activating several proposals, including EIP-4844 proto-dank sharding, which aims to reduce gas fees associated with rollups. This update will further cement Ethereum’s quest to significantly increase on-chain scalability and reduce gas fees over the years.

ETH Looks Firm, Resistance At November Highs

At spot rates, ETH is firm versus BTC, looking at the candlestick arrangement in the daily chart. How prices react in the days ahead remains to be seen.

Even so, if there is confirmation of the December 7 gains, ETH might extend gains. In that case, it can break above the current consolidation as bulls aim to break above November 2023 highs of around 0.058 BTC.

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The crypto market is on the brink of a potentially game-changing shift, as investment management firm VanEck predicted. In a recent analysis, VanEck forecasts a substantial inflow of funds into Bitcoin spot exchange-traded funds (ETFs), expecting more than $2.4 billion to be injected in the first quarter of 2024 alone.

This bullish prediction aligns with the anticipated launch of the first Bitcoin spot ETF in the US, which could positively change the crypto landscape.

Bitcoin Bullish Forecast

This forecast emerges against a backdrop where investors are increasingly gravitating towards ‘hard money’ assets, those which remain largely unaffected by the whims of US authorities, as indicated by VanEck

In this context, Bitcoin emerges as a particularly appealing option due to its “resilience” and limited correlation with conventional financial markets.

Despite the expected market volatility, VanEck’s analysts maintain strong confidence in Bitcoin’s market stance, projecting that its price will unlikely fall below the $30,000 mark in early 2024.

VanEck’s report delves further into Bitcoin’s future, highlighting the significance of the upcoming Bitcoin halving in April 2024. This event is anticipated to “proceed without a major fork or missed blocks” catalyzing a surge in Bitcoin’s value.

Unsurprisingly, the firm predicts that November 9, 2024, could witness Bitcoin attaining a new all-time high three years after its last peak.

VanEck added that such a milestone could even see Bitcoin’s mysterious creator, Satoshi Nakamoto, being named Time Magazine’s “Man of the Year,” particularly if Bitcoin reaches the $100,000 threshold.

VanEck 15 Crypto Predictions for 2024

Prediction #1. The US recession will finally arrive, but so will the first spot #Bitcoin ETFs. Over $2.4B may flow into these ETFs in Q1 2024 to support Bitcoin’s price.

— VanEck (@vaneck_us) December 7, 2023

Ethereum And Solana’s Rising Tide: VanEck’s Perspective On Altcoin Market Dynamics

In contrast to Bitcoin’s expected dominance, VanEck casts a different light on Ethereum’s future. The firm anticipates that while Ethereum will not surpass Bitcoin in market cap in 2024, it is likely to outperform every major tech stock.

However, Ethereum is projected to face challenges from other smart contract platforms like Solana, which present fewer uncertainties regarding scalability. VanEck’s analysis suggests that while Ethereum will show strong performance, it will lose market share to these emerging platforms.

The report also touches upon geopolitical implications for Bitcoin. Countries like Argentina are expected to follow El Salvador’s lead by sponsoring state-level Bitcoin mining and leveraging their energy resources.

This trend, combined with Bitcoin’s regulatory clarity and energy intensity, is predicted to draw attention from quasi-state entities in Latin America, the Middle East, and Asia.

According to VanEck’s insights, the post-halving period will see a market rally led by Bitcoin, with value eventually flowing into smaller tokens.

Lastly, VanEck casts a spotlight on Solana, predicting its rise to become a top-three blockchain by market cap, Total Value Locked (TVL), and active users. This ascent is anticipated to fuel Solana’s entry into the spot ETF wars, with a surge of filings expected from asset managers.

Featured image from Unsplash, Chart from TradingView

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Chainlink has seen long contracts pile up on Binance during the past day, which may lead toward a top for the cryptocurrency.

Chainlink Funding Rate On Binance Has Turned Highly Positive

According to data from the on-chain analytics firm Santiment, the Chainlink funding rate on Binance has now reached the highest level in about four weeks. The “funding rate” refers to the periodic fee that derivative traders on any given platform are exchanging with each other right now.

When the value of this metric is positive, it means that the long holders are currently paying a fee to the short investors in order to hold onto their positions. Such a trend suggests a bullish mentality is dominant on the platform.

On the other hand, negative values imply a bearish sentiment is shared by most LINK traders on the exchange as the shorts outweigh the longs.

Now, here is a chart that shows the trend in the Chainlink funding rate on cryptocurrency exchange Binance over the last few months:

As displayed in the above graph, the Chainlink funding rate on Binance has assumed significantly positive values following the asset’s surge beyond the $16 mark.

Longs currently outweigh the shorts by the highest ratio since November 11th, when the cryptocurrency’s price set its then-yearly high, which the coin has now surpassed.

Historically, longs piling up on the derivatives market have often been negative for the price. This is because a mass liquidation event called a “squeeze” is usually more likely to affect the side with the most positions.

In a squeeze, a sudden swing in the price triggers a large amount of liquidations, which only feed into the swing further and end up leading to a cascade of more liquidations.

As the Chainlink funding rate is significantly positive, a long squeeze could be more likely to happen than a short squeeze. Last month, the asset hit its local top in these conditions, so the same might also repeat this time.

If LINK does observe a drawdown shortly, though, the decline may not be too extended. This is because there appears to be some strong on-chain support present between the $14.4 and $14.8, as analyst Ali pointed out in an X post yesterday.

In on-chain analysis, levels are defined as resistance and support based on the total number of investors who acquired their coins at said levels. From the chart, it’s visible that 17,000 addresses have their cost basis inside the $14.4 to $14.8 range, which means it’s possibly a zone of strong support.

On the contrary, the levels above the current one are thin with investors, meaning that they shouldn’t pose too much resistance should the rally continue.

“As $LINK has regained the $16 threshold, watch if a bit of FOMO forms a local top, or if prices continue surging toward $20 with little resistance,” notes Santiment.

LINK Price

LINK had earlier broken past the $17 mark, but the asset has since seen some pullback as it’s now trading under the level once more.

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Dogecoin (DOGE) has been up close to 75% in the last 45 days and if one analyst’s projection is anything to go by, this rally isn’t coming to an end anytime soon. This comes at a time when many are hoping that DOGE can hit the $0.10 mark and possibly reach new highs. 

Why DOGE’s Future Is Bullish 

In a video posted on his YouTube Channel, crypto analyst Austin Hilton highlighted Dogecoin’s significant gain in the last 45 days and discussed the future trajectory of the meme coin. Austin sounded so bullish on DOGE as he gave reasons why he believes this rally will continue. 

Firstly, he alluded to the fact that the crypto market as a whole was currently enjoying an upward trend as liquidity was flowing into the ecosystem. He noted that Bitcoin and other major altcoins have picked up as a result of this. DOGE hasn’t been left behind, as the meme coin is also riding this wave. 

With this in mind, he believes that Dogecoin will continue to rise as more liquidity is expected to flow into altcoins like the meme coin. He attributed these inflows to the bullishness around Spot Bitcoin ETFs, which many expect the SEC to approve in January. 

The second reason why he is bullish on DOGE’s future is based on his assertion that December happens to be “very, very good” for crypto. As such, he doesn’t expect this December to be any different. So far, this month has undoubtedly been good for the crypto market, and this momentum is likely to continue as many position themselves ahead of January. 

Dogecoin Also Looking Good On The Charts

Several crypto analysts have also weighed in on DOGE’s future trajectory from a technical analysis perspective. Based on their projections, the meme coin could end the year on a high and possibly enjoy similar gains to the one it enjoyed in 2021. 

Specifically, crypto analyst JD recently noted that Dogecoin’s MACD (Moving Average Convergence Divergence) was on the verge of having another bullish cross. The last time this happened was in 2021, which led to the meme coin seeing a 370x gain in its price. Based on the chart that JD shared, this bullish cross could happen again in 2024.

Based on another crypto analyst’s projections, Dogecoin could gain over 900% in a move that will see it rise to $0.7, And 2024 is also predicted to be the year that this could happen. The fundamentals also complement these technical analyses as there are plans in place to send DOGE to the moon (and up the charts).

At the time of writing, DOGE is trading at $0.09, up by over 1.50%, according to data from CoinMarketCap.

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Bitcoin has encountered a critical resistance level going into the weekend and could move sideways following a massive rally. According to an expert, the cryptocurrency has been breaching every major obstacle, making it one of the best-performing assets.

As of this writing, Bitcoin (BTC) trades at $43,600 with sideways movement in the last 24 hours. Over the previous seven days, BTC recorded a 14% increase, with Ethereum following its footsteps, recording a 13% rally.

Bitcoin vs. Gold: The Digital Currency’s Journey to $40,000

Jurrien Timmer, Director of Macro for Fidelity, offers insightful analysis of Bitcoin’s trajectory, likening it to “exponential gold.”

His thesis suggests that Bitcoin, much like its elder counterpart, gold, holds value in times of structural inflation, yet it boasts an added venture twist. In that sense, Timmer believes both assets are prime to capture attention from investors looking to protect themselves from “reckless monetary inflation.”

As seen in the chart below, if Bitcoin follows a similar trajectory to the previous, its price could target $100,000 and $1,000,000 by early 2025.

2020 was pivotal for Bitcoin and gold, with fiscal and monetary stimulus bolstering their appeal. However, Bitcoin differentiates itself with its capped supply of 21 million coins, contrasting gold’s continual but modest annual supply growth.

This limited supply has propelled Bitcoin’s “stock-to-flow” (S2F) ratio significantly higher than gold’s. Moreover, Bitcoin’s journey reflects the classic S-curve path of technological innovations. Its exponential growth trajectory mirrors historical trends in technology from railroads to cell phones.

However, predicting Bitcoin’s future based on these S-curves is complex, as slight deviations in these growth phases can “dramatically” alter outcomes, the expert claims.

SEC Deliberations And Institutional Interest Shape Bitcoin’s Future

Timmer’s observations include a potential impact of the SEC’s anticipated decisions on the Bitcoin spot Exchange Traded Fund (ETF). He theorizes that pending product applications could attract new investors, yet he remains cautious about whether this will trigger a “sell-the-news” event and a large drawdown.

Interestingly, a small percentage of Bitcoin is held for under three months, suggesting that the recent price surge is not merely “speculative,” offering support for a longer bullish trend.

The true believers in Bitcoin, as indicated by the growing percentage held for over five or ten years, are unlikely to be swayed by short-term news. However, there is notable activity in the Bitcoin futures market, particularly among asset managers, which could suggest anticipation of the SEC movement.

Any updates from the SEC would arrive in a transformed macroeconomic environment. Unlike the liquidity-rich period of 2020-21, the US Federal Reserve’s (Fed) recent policy shifts have reversed the surge in monetary inflation.

This shift aligns the current situation more with the post-World War II era than the inflationary 1970s, impacting the urgency of the value proposition for gold and Bitcoin.

As BTC matures, its relationship with traditional financial markets and global economic trends becomes increasingly intricate. With the SEC’s decision and a shift in the macro-arena, the coming months are poised to exercise influence over the premier cryptocurrency and the nascent sector.

Cover image from Unsplash, chart from Tradingview

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Binance Co-founder and former Chief Executive Officer (CEO) Changpeng CZ Zhao, has been confined to remain in the United States in advance of his sentencing expected to take place next year.

Former Binance CEO No Longer Leaving The US

The Binance co-founder has been ordered by US District Judge Richard Jones to remain in the country in a ruling on Thursday. Zhao was instructed to stay in the US due to the significance of his recent guilty plea.

The ruling read:

As relief, the government requests that Mr. Zhao be required to remain in the continental United States in the period between his plea and sentencing.

The Thursday ruling reversed an earlier decision that would have allowed Zhao to return to the United Arab Emirates (UAE). Jones acknowledged in his decision the arguments provided by Zhao, which ordinarily would result in the government’s motion being denied. 

However, Jones highlighted the distinctive features of Zhao’s case. These include his riches, the absence of an extradition treaty with the UAE, and Zhao’s family living in the UAE.

Furthermore, the judge also highlighted that Zhao poses a flight risk if he were allowed to return to the UAE. This is due to the former CEO’s substantial assets and the meager connections he has to the United States.

Additionally, knowing that the Binance ex-CEO faces a potential 18-month sentence in prison also sparks a possible flight risk. Jones asserted that Zhao is asking for a lesser sentence, which might lead to 18 months of incarceration as indicated by the government.

The judge stated that despite promises that CZ wouldn’t flee if permitted to travel to the UAE, the court wasn’t convinced. This led to the order that he should remain in the US until his sentencing on February 23, 2024.

So far, the court stated in the ruling that its decision is not based on Zhao’s citizenship and alienage. “The risk of the defendant not showing up is posed by the circumstances surrounding their combined facts,” the court said.

Changpeng “CZ” Zhao’s Guilty Plea

Last Month, the former Binance CEO pleaded guilty and stepped down from the cryptocurrency exchange he founded about 6 years ago. Zhao’s plea to one count of violating the Bank Secrecy Act was formally accepted by Judge Jones.

Jones accepted the plea after a thorough consideration report and recommendation of the United States Magistrate Judge which found him guilty.

Jones wrote:

This Court, having considered the Report and Recommendation of the United States Magistrate Judge, to which there has been no timely objection, hereby accepts the plea of guilty of the defendant.

His plea was accepted just over two weeks after both he and Binance acknowledged a number of criminal and civil charges. These include failure to maintain an appropriate anti-money laundering program, running an unlicensed money transfer business, and violation of sanctions law.

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The XRP price is still underperforming the general crypto market raising concerns among holders. However, it is not all bad for the cryptocurrency which boasts of one of the strongest communities in the sector. As for its price, the optimism toward a recovery remains high as crypto analyst JD has given a rather bullish prediction for the altcoin’s price.

XRP Price Confirms Golden Cross Fo 1000% Rally

In his latest analysis of the XRP price, crypto analyst JD has pointed out a bullish formation that could bode very good news for the altcoin. According to him, the cryptocurrency has confirmed a rare Golden Cross on its 4-day chart, and historical performance points to an at least 700% increase following this.

JD’s chart shows what happened the last two times that the XRP price confirmed such a Golden Cross. The first was back in 2017 when the asset’s price completed the Golden Cross after a four-year trendline breakout. Following this, the XRP price would go on to rise 700% in short succession.

The next time that the Golden Cross appeared on the chart was back in 2020 just as the bull market was starting. This time around, there was a 1000% surge in the XRP price after this pattern was confirmed, mounting an even bigger rally than the previous occurrence.

If the XRP price sticks to this historical performance, then there could be an 800% increase, on average, for the price of the coin. However, if it also follows the trend of the most recent surge being higher than the last, the token could be looking at a more than 1000% increase, which would put its price above $6.

Beware The Pullback Before The Rally

While JD’s analysis paints an incredibly bullish picture for the XRP price, the analyst also warns of a pullback in the price before the rally. Both times that the Golden Cross has appeared, the token’s price has seen a pullback before confirming the breakout.

In 2017, there was a 64% price correction before the 700% surge. Then again in 2020 when the Golden Cross appeared, there was a 40% price correction before the price rallied 1000%. So it stands to reason that there will be a pullback this time around before a rally begins.

Currently, XRP bulls seem to be waking up once again after a brief period of consolidation. The price broke out above $0.64 on Thursday, and the bullish trend is expected to continue as Bitcoin and the crypto market recovers.

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