Bitcoin’s price has risen about 10% in the past week, approaching its all-time high of over $73,500. Meanwhile, Do Kwon and Terraform Labs were found guilty of defrauding investors in relation to the collapse of the algorithmic stablecoin Terra USD. In other news, VanEck and Ripple are both involved in launching new stablecoins in the crypto market.
Analysts are closely monitoring the inflows of spot bitcoin ETFs, which saw a strong outflow of $85.7 million at the beginning of April due to GBTC’s outflows. However, inflows have since rebounded and reached $484.5 million by the end of the week. This rise in bitcoin’s price comes as the halving event approaches, with reports indicating that its impact may be overshadowed by the supply and demand dynamics of spot bitcoin ETFs.
In addition, Tether (UST) added 8,888 bitcoins (worth around $640 million) to their reserves in the first quarter of the year, making it the seventh largest holder of bitcoin. Stablecoins have been a major focus in the market, with VanEck and Ripple both launching new offerings. Agora, a fintech company, raised $12 million to launch its stablecoin offering backed by VanEck’s reserves. Ripple Labs also announced its own stablecoin, backed by assets like US dollar reserves and short-term Treasury bills.
Meanwhile, a New York jury found Terraform Labs and its founder Do Kwon liable for defrauding investors in a civil lawsuit brought by the US Securities and Exchange Commission. The SEC alleged that the company and Kwon made misleading statements about the stability of their algorithmic stablecoin, which ultimately led to its collapse.
Looking ahead, investors can expect volatility in the short-term, especially with the halving event approaching. Implied volatility for bitcoin options contracts has spiked in the past weekend, indicating rising expectations for near-term volatility. Analysts will also be monitoring spot bitcoin ETF inflows closely, as well as the potential impact of the US government selling $2 billion worth of bitcoin related to the Silk Road hack.
