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🔴 The Rise of Altcoins: A Look at This Week’s Crypto News (Nov 13, 2023)

Dead crypto exchanges may get new life, Robinhood is expanding to new markets and can AI beat the Hodl strategy by 300%? These stories and more, this week in crypto.

Crypto Market Reacts to Optimism

Bitcoin hit an 18-month peak as optimism spread throughout the crypto market. The price surge caused $50 million in short liquidations in just 4 hours, further boosting Bitcoin’s price, which has now gained 120% this year. Altcoins also rallied with the top 100 digital assets index up 16%. Bitcoin dominance, or its share of the total crypto market cap, now holds at 49%, signaling growing risk appetite in the market.

Defunct Crypto Exchanges Revived

SEC Chair Gary Gensler suggested the possibility of the revival of FTX under new leadership, emphasizing the need for transparency and investor trust. Reports indicate that Tom Farley, ex-president of NYSE, is among the list of potential buyers for the bankrupt exchange. Meanwhile, the judge overseeing Celsius Network’s bankruptcy case is urging the SEC to expedite its decision as to whether to allow Celsius to transform into a crypto mining firm, as part of a plan to partially repay its customers, some of which have had their accounts frozen since June of 2022.

Robinhood Crypto Trading Expands

American trading platform Robinhood is expanding its crypto trading services into the European Union and launching brokerage operations in the UK in the coming weeks. Robinhood is moving forward with its expansion as some crypto firms are suspending services for UK customers, due to new promotion rules implemented in October, requiring clear risk labels and system changes.

Binance Launches Web3 Wallet

Binance has unveiled a new crypto wallet, which is accessible through the Binance mobile app. CEO Changpeng Zhao emphasized the importance of Web3 wallets as being more than just for storage, but that “they are an integral part of the Web3 framework, empowering individuals with the ability for self-sovereign finance.”. The wallet utilizes multiparty computation: dividing private keys into three parts to enhance security by mitigating the risk of compromise.

Optimism Spreads on ETFs’ News

The US Securities and Exchange Commission has opened talks with Grayscale to convert its GBTC trust into a spot bitcoin ETF. The agency’s reevaluation caused overall optimism in the crypto market, after a court decision deemed its prior rejection arbitrary and capricious. In addition, BlackRock registered the iShares Ethereum Trust, signaling a possible Ether ETF, fuelling a rally in Ether’s price.

XRP Briefly Tops Major Altcoin

Ripple’s XRP briefly surpassed Binance’s BNB as the fourth-largest token by market cap, with an eyecatching 11% price increase in a single day. The price surge was caused by Ripple’s announcement of its collaboration with Onafriq for remittance expansion in Africa, the Gulf States, the UK, and Australia. The partnership opens new blockchain-based payment corridors, serving over 400 million mobile wallets.

Musk’s Grok AI Spawned Scam Tokens

Despite Elon Musk’s declaration that his companies won’t create cryptocurrencies, over 400 scam tokens tied to his new AI, Grok, have already emerged, amassing over $10 million in market cap. At least 10 Grok tokens resulted in rug-pulls, causing $1 million in losses. In contrast, a new report shows the slowest pace of altcoin creation in 3 years due to decreased funding for blockchain projects.

AI Models Outperform Hodling by 300%

Academic researchers from two Greek universities have endorsed what is called “The efficient market hypothesis for Bitcoin trading”. They argue that their AI models based on the controversial theory can outperform the hodl strategy by nearly 300% in simulated crypto portfolios, enabling investors to achieve higher profits than with a traditional buy-and-hold strategy, although only in theory.

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

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