Bitcoin’s 12-day ETF outflows, derivatives data and the crypto market in tandem trading with tech stocks suggest traders will continue to cut exposure to risk assets. Key takeaways: Heavy outflows from Bitcoin exchange-traded funds and massive liquidations show that the market is purging highly leveraged buyers. Bitcoin options metrics reveal that pro traders are hedging for further price drops amid a tech stock sell-off. Read more
Speaking on the company's earnings call, CEO Terry Duffy said the exchange is exploring a CME-issued token and is also piloting tokenized cash infrastructure with Google. Chicago-based derivatives exchange CME Group is weighing the launch of its own digital token as it explores how tokenized assets could be used as collateral across financial markets, according to comments from CEO Terry Duffy. Speaking on a company earnings call, Duffy said CME is reviewing different forms of margin, including tokenized cash and a CME-issued token that could operate on a decentralized network. He said: He added that collateral issued by a “systemically important financial institution” may offer greater comfort to market participants than tokens issued by a “third or fourth-tier bank trying to issue a token for margin.” Read more
The proposed laws are meant to create a mass-surveillance state and are not about protecting children, Pavel Durov warned on Wednesday. Pavel Durov, the co-founder of the Telegram messaging platform, sounded the alarm about the Spanish government’s plan to usher in online age verification and restrict social media platforms for individuals under the age of 16. The proposed law will lead to increased government-led censorship of online content, breaches of privacy through de-anonymizing users and mass-surveillance, Durov said on Wednesday. Spain’s Prime Minister Pedro Sánchez announced on Tuesday that the country will enact online age verification policies seen in other parts of Europe, including the United Kingdom. Read more
Futures traders drastically reduced their activity as Bitcoin’s weakness extends and new year-to-date lows become a daily occurrence. Cointelegraph reviews traders’ BTC price expectations. Bitcoin’s (BTC) struggle to hold above $70,000 carried into Wednesday, raising concerns that the a drop into the $60,000 range could be the next stop. The sell-off was accompanied by futures market liquidations, a $55 billion drop in BTC open interest (OI) over the past 30 days, and rising Bitcoin inflows to exchanges. The price weakness has analysts debating whether crypto-specific factors or larger macro-economic issues are the driving factor behind the sell-off and what it may mean for BTC’s short-term future. Key takeaways: Read more