? Crypto Market Overreact?! | This Week in Crypto – Oct 23, 2023

?ETF hype sends markets on a rollercoaster, Binance is making changes in Europe and did an FTX prosecutor really reference Dumb and Dumber?! These stories and more, this week in crypto.

Bitcoin Tests $30,000 On ETF Momentum

Bitcoin’s price tested the $30,000 mark twice this week with growing anticipation of a long-awaited Bitcoin spot ETF. Ethereum and the broader altcoin market also trended higher. Even though a published report that a spot ETF had been approved was later retracted, several large market participants this week expressed their confidence in an eventual US spot Bitcoin ETF approval.

News Error Causes $100M Losses

Nearly $100 million were liquidated in an hour after erroneous reports of an approved spot Bitcoin ETF sent the currency’s price soaring just before a hasty correction. Posted on X, Cointelegraph’s account posted that the SEC had approved a Bitcoin ETF, but that report turned out to be premature. An internal investigation revealed that the report was published before meeting Cointelegraph’s social media protocol and only on the basis of an unconfirmed Telegram message.

Crypto Market Unite on Bitcoin ETF

Market players reiterated their expectations about a spot Bitcoin ETF. Coinbase’s chief legal officer Paul Grewal said it’s likely now that the SEC will approve an ETF soon. Grewal highlighted the fact that the regulator could not block Grayscale in court from converting its GBTC bitcoin fund into an ETF. Investment bank, JPMorgan confirmed in a report to investors that they expect an ETF approval before January 10, which is the final deadline for the Ark 21Shares applications. And BlackRock ETF insider Anthony Scaramucci went even further, saying the ETF approval will drive Bitcoin’s price up to $330,000.

Top US Crypto Firms Named in $1Bn Fraud Lawsuit

US prosecutors have accused three high-profile cryptocurrency firms of defrauding investors of more than $1bn. Prosecutors say that US exchange Gemini lied to customers about the risks of an investment account that paid high interest rates on crypto. Genesis, a crypto lender, and its parent company Digital Currency Group which were also involved in the program are now facing charges as well.

Binance Making Changes to European Services

Binance’s Visa debit card services will close down in the European Economic Area in December as Binance’s card issuer, Contis Financial Services will stop issuing the card. The crypto exchange also announced that it’s introducing new fiat partners to provide euro services after Binance’s European provider, Paysafe ceased its support in September.

US Crackdown on Crypto Mixers

The US has stepped up its crackdown on illicit crypto activity, with a focus on crypto mixing services. The Treasury department is planning to force more transparency on trades that pass through crypto mixers to combat money laundering and national security risks by curbing the use of digital tokens for financing sanctioned groups like Hamas.

Ferrari Accepts Crypto in the US

Ferrari now accepts cryptocurrency for its luxury cars in the US and intends to extend that plan into Europe. Ferrari said the decision came in response to demand from the market and requests from dealers as many of its clients have invested in crypto. Customers can use Bitcoin, USDC, and Ether to make Ferrari car purchases.

FTX Trial Is Getting Out of Control

Social media excitement surrounding Sam Bankman-Fried’s trial is unleashing a hyper-online horde of crypto obsessives and self proclaimed “degenerates,”. Reporters have to compete for seats in the courtroom everyday with crypto influencers and online personalities. In one quirky moment, prosecutors likened the defense’s argument to a scene from the movie “Dumb and Dumber,” where one character claims that IOUs, well…”that’s just as good as money, sir.”

That’s what’s happened this week in crypto, see you next week.