What Are Crypto Investors Anticipating Next Week?

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The Most Important Highlights of This Week

SEC Opts Against Appealing Grayscale’s Landmark Legal Victory

>>> SEC Declines to Contest Grayscale’s Legal Victory, Nearing Approval of Spot Bitcoin ETFs

The United States Securities and Exchange Commission (SEC) has reportedly chosen not to pursue an appeal in the significant case involving Grayscale Investments.

According to sources, the SEC has no intentions of challenging the groundbreaking decision in Grayscale Investments’ favor.

An anonymous insider familiar with the matter recently disclosed this, raising the likelihood of Grayscale’s Bitcoin Trust (GBTC) undergoing a transformation into a Market Bitcoin Exchange Traded Fund (ETF).

The U.S. Government Emerges as One of the World’s Largest Bitcoin Holders

>>> The U.S. Government Emerges as One of the World’s Largest Bitcoin Holders

In an unexpected twist, the U.S. government has cemented its status as a major player in the world of Bitcoin ownership. Recent reports from the Wall Street Journal reveal that they have amassed around 200,000 Bitcoins, a stash currently valued at over $5 billion USD, thanks to substantial seizures.

The bulk of these Bitcoins originated from seizures involving cybercriminals and illegal activities on the darknet. As the digital era has advanced, so has cybercrime, with malevolent actors exploiting cryptocurrencies for unlawful transactions and money laundering. In response, U.S. agencies have intensified their efforts to combat these activities, resulting in the accumulation of this substantial digital asset.

The secure storage of this vast cryptocurrency haul is of paramount importance. According to the Wall Street Journal’s investigation, the majority of these Bitcoins are securely stored in hardware wallets, overseen by various government entities, including the Department of the Treasury and the Internal Revenue Service (IRS).

This development raises important questions about the U.S. government’s future intentions for this stockpile. While the primary objective of these seizures is to curb criminal activities, the management and potential utilization of these digital assets remain subjects of significant interest.

BlackRock CEO Addresses Bitcoin Price Surge Triggered by False ETF News

>>> BlackRock CEO Addresses Bitcoin Price Surge Triggered by False ETF News

Larry Fink, CEO of BlackRock, has commented on the recent controversy sparked by a false report falsely stating that the U.S. Securities and Exchange Commission (SEC) had approved the company’s application for the iShares Bitcoin Trust ETF. The fake news created a frenzy on social media and led to a 10% surge in Bitcoin’s price.

Fink addressed this situation during a recent appearance on Fox Business, stating, “It’s a clear example of the high level of interest in cryptocurrencies. I believe today’s rally is due to a flight to quality.”

This perspective signifies a notable shift in how the day’s events unfolded. The misinformation was triggered when cryptocurrency news outlet Cointelegraph tweeted that BlackRock’s highly anticipated Bitcoin ETF application had been approved, without providing any sources to support this claim.

Both BlackRock and the SEC promptly denied the rumor, and Cointelegraph retracted the post. However, by that time, Bitcoin’s price had surged to nearly $30,000 for the first time since July. Ultimately, the leading cryptocurrency reached $29,483 on the basis of the rumor but dropped to below $28,000 within 15 minutes following its debunking.

Tesla Holds Steady on Bitcoin and AI Amid Earnings Disappointment

>>> Tesla Holds Steady on Bitcoin and AI Amid Earnings Disappointment

In its most recent earnings call, Tesla reaffirmed its continued ownership of Bitcoin, maintaining a consistent stance for the fifth consecutive quarter, despite the cryptocurrency market’s fluctuations. As of September 30, 2023, Tesla’s digital assets remain valued at $184 million, stemming from its initial $1.5 billion Bitcoin purchase in March 2021.

Tesla’s approach in the cryptocurrency market has remained steadfast. After a significant sell-off in Q2 2022, during which they divested 75% of their holdings, resulting in a remarkable $936 million profit from more than 30,000 BTC, Tesla has neither increased nor decreased its Bitcoin position. Instead, the company has shifted its attention towards the advancement of artificial intelligence (AI) technologies.

Tesla proudly announced that its computing capacity for AI projects has more than doubled, with a focus on expanding training data and integrating AI systems, including their humanoid robot, Optimus.

Bitcoin Surges to $29,000, Setting New Milestones

Bitcoin has recently surged to the $29,000 USD mark, breaking through key resistance levels represented by the weekly SMA200 and EMA200 moving averages, highlighting its significant achievement.

Matrixport suggests that the approval of BlackRock’s spot Bitcoin exchange-traded fund (ETF) could potentially trigger a substantial price increase for BTC, possibly reaching $56,000. Their analysis indicates that if the total market capitalization of the leading stablecoin, Tether, increases by $24 billion, acting as a gauge for potential ETF inflows, the current price of the flagship cryptocurrency at $28,800 could potentially rise to $42,000.

Furthermore, in the event of an influx of $50 billion, representing a 1% allocation from registered investment advisors, the price of Bitcoin could conceivably reach $56,000. This $50 billion estimate is based on a previous report that assessed the U.S. registered investment advisor (RIA) community, consisting of approximately 15,000 professionals overseeing assets totaling around $5 trillion.

Events Coming Up next week

October 24

S&P Global Comp Flash PMI

October 26

U.S Labor Department report of initial state jobless benefit claims.Unemploymentinsurance data for regular state programs. Initial claims – Any notice ofunemployment filed:

(1) to request a determination of entitlement to and eligibility forcompensation or

(2) to begin a second or subsequent period of eligibility within a benefit yearor period of eligibility.