The cryptocurrency market as of early March 2024 shows promising trends and challenges, reflecting its dynamic nature. Despite occasional fluctuations, the overall trend in the cryptocurrency market remains bullish. Bitcoin, the flagship cryptocurrency, has been leading the charge and its price has surpassed important milestones.
Crypto markets continue bull run
Coinbase stock has caught the attention of Citron, an investment research firm established by a prominent short seller on Wall Street. This development comes after the crypto exchange faced technical challenges amid turbulent Bitcoin price fluctuations earlier this week.
The long Bitcoin/Short Coinbase trade is one of the most attractive in the cryptocurrency market due to the recent malfunction of the $COIN site. Citron explained on February 29. โThis means going LONG bitcoin through an ETF and shorting the bloated Coinbase exchange.โ
Users of the exchange reported zero account balances and errors when buying and selling digital assets during the brief Coinbase outage on February 28. Coinbase guaranteed the security of all user balances. The resolution of the problem occurred within a few hours.
Coinbase has risen to the position of the fourth-largest publicly traded stock exchange globally, following January's approval of multiple Bitcoin spot ETFs by the US Securities and Exchange Commission. This week was witnessed the highest level of demand for digital assets in over two years as Bitcoin surpassed $60,000.
The SEC went too far in the lawsuit against Kraken
Eight US state attorneys general issued a united amicus curiae brief, saying that the Securities and Exchange Commission exceeded its delegated authority in the action against cryptocurrency exchange Kraken.
The brief was filed on February 29 by authorities in Arkansas, Iowa, Mississippi, Montana, Nebraska, Ohio, South Dakota and Texas, as well as other participants, including industry lobbyists.
According to the filing, state authorities stated that they do not favor either party, but rather oppose regulation of crypto assets without an investment contract by the SEC because Congress has not granted this jurisdiction to the SEC.
The attorneys general argued that the SEC was expanding the definition of โinvestment contractโ and that states are in a position to prevent the SEC from violating state laws, including consumer protection laws, by attempting to regulate cryptoassets as securities.
Elon Musk sues Sam Altman
Elon Musk, owner of SpaceX, Tesla and X, is suing OpenAI and its CEO Sam Altman, alleging a breach of their nonprofit agreement.
According to a recent petition in the California Superior Court for San Francisco County, Musk claims that OpenAI's work with Microsoft deviates from the company's founding goals of promoting open source artificial general intelligence (AGI) for profit. of humanity.
Musk's legal case alleges breach of contract, breach of fiduciary duties and unfair business practices. He wants OpenAI to return to its open source ethos and is seeking a court order to prevent commercial use of AGI technology.
According to the court complaint, the launch of ChatGPT-4 in March 2023 drastically deviates from OpenAI principles. Despite being touted as a breakthrough in artificial intelligence (AI), GPT-4 is a closed model, unlike previous versions. Musk claims that this shift toward proprietary technology benefits Microsoft financially, which contradicts OpenAI's original charitable goal.
Bitcoin faces a market correction
Bitcoin declined more than 3% from its 24-hour peak on Feb. 29 after investors in the Grayscale Spot Bitcoin ETF withdrew $598.9 million, the fund's second-largest net outflow on record.
Bitcoin hit a 24-hour high of $63,585 early on February 29 and has subsequently fallen approximately 3.3% to just under $61,500. It comes as Grayscale Bitcoin Trust (GBTC), the asset managers' newly converted ETF, suffered daily net outflows of $600 million on February 29, according to preliminary statistics from Farside Investor.
The near-record outflows come just days after GBTC reported a record daily net outflow of $22.4 million on February 26.
โTwo steps forward, one step back,โ Bloomberg senior ETF analyst Eric Balchunas said in a Feb. 29 X post about the day's capital outflows.
New GBTC outflows may reduce the day's inflows. Full inflow data for the other nine ETFs is not yet available, but Farside data from February 29 already shows that the Fidelity Bitcoin ETF, one of the three largest funds by assets, gained just 44.8 million dollars in net inflows, its fourth-lowest day of inflows. .
