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first_img Bitcoin ETF holders return to profitability as the price approaches $87,000

Bitcoin exchange-traded fund (ETF) holders have returned to profitability. Bloomberg ETF analyst James Seyffart posted on the X platform on Monday, stating that the rise in the New York market on Monday morning brought the average investor's cost basis for the ETF (approximately $81,700) back into the profit zone for the first time since January of this year. Despite last week's setback of key cryptocurrency legislation, the Clarity Act, and the Federal Reserve's interest rate hike, Bitcoin still broke through $86,000, reaching a daily high of $86,800, and is currently reported at approximately $86,800, but still over 30% lower than the historical high of $126,000 set last year.In terms of capital flows, U.S. spot Bitcoin ETFs managed by institutions such as BlackRock, Fidelity, Grayscale, and Morgan Stanley recorded a net inflow of over $6 million last week, with investors pouring nearly $593 million on Thursday and Friday alone. According to Coinglass data, these ETFs currently manage a total of $98.8 billion in assets.In the background, Bitcoin began to rise in August after the U.S. Treasury announced it would at least double the scale of long-term bond repurchases, achieving the best weekly performance since 2023. Subsequently, the price reached a historical high in October, but fell back at the end of the month due to the largest liquidation in cryptocurrency history (over $19 billion in positions were liquidated). Despite the Federal Reserve's hawkish turn, investors continued to flock to the so-called "currency devaluation trade," driving the price rebound.

first_img Gemini's stock price has fallen 80% since its IPO, and acquisition speculation has resurfaced

According to CoinDesk, the stock price of the cryptocurrency platform Gemini has fallen by about 80% since its listing, with its market value dropping from a peak of approximately $4 billion to $753 million. Trading volume, revenue, and platform assets have all continued to decline, leading to renewed speculation about a potential acquisition. Gemini's exchange revenue in the second quarter decreased by 38% year-on-year to $12.5 million, spot trading volume fell by 66% to $3.8 billion, and platform assets decreased from $18.2 billion to $8.4 billion.Lorenzo Valente, Director of Digital Asset Research at ARK Invest, posted on X last month that the offshore perpetual contract platform Hyperliquid should acquire Gemini, using it as a gateway to enter the regulated U.S. market for perpetual contracts and prediction market business. The Winklevoss brothers hold 94.5% of the voting rights in Gemini, which may simplify transaction negotiations but also means that any sale must be approved by both individuals. There are currently no signs that Hyperliquid is actively pursuing an acquisition.Despite the decline in exchange business, Gemini still holds regulatory licenses and approvals that are difficult for competitors to replicate. Potential buyers may weigh the cost of acquisition against the time and legal fees required to apply for licenses independently. This aligns with the trend in cryptocurrency mergers and acquisitions where buyers increasingly value regulatory infrastructure, distribution channels, and market access, such as Keyrock's acquisition of BlockFills' trading assets and Ondo exploring an acquisition of up to $500 million. CoinDesk reported in April that potential buyers were considering acquiring Gemini's closed European and UK operations to obtain licenses. Gemini declined to comment on this.

first_img T. Rowe Price Digital Asset Head: Bitcoin has become the core of discussions on currency devaluation

According to Bitcoin Magazine, Blue Macellari, the head of digital assets at asset management giant T. Rowe Price, stated in an interview with Bitcoin Magazine that Bitcoin has now become the central topic of discussion regarding currency devaluation. She pointed out that bond vigilantes are making a comeback, U.S. Treasury financing is shifting from foreign buyers to domestic buyers, and the debt situations in Japan and Italy are not comparable to the U.S. buyer base.Macellari has 20 years of experience in emerging market sovereign debt and distressed debt investment, and later was responsible for establishing T. Rowe Price's digital asset business. In the interview, she reviewed the evolution of internal discussions on digital assets within the institution, the considerations for launching actively managed multi-token ETFs, and discussed the trends of asset management tokenization and automation, as well as the liquidity fragmentation risks brought by 24/7 trading.Additionally, Macellari assessed whether the demand for stablecoins under the GENIUS Act represents a substantive change or is merely wishful thinking, and she believes that devaluation trading has indeed driven institutional allocation to Bitcoin. She also stated that volatility can serve as a portfolio tool, and there are significant generational differences in Bitcoin allocation.
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