Matrixport predicts 20% rise in Bitcoin, US court orders SEC to address Coinbase’s crypto problems and more

FTX Group is trying to recover nearly $3.9 billion in funds, consisting of cash and cryptocurrency, from insolvent digital asset lender Genesis Global Capital LLC and its solvent affiliate, GGC International Ltd.

> The funds in question relate to $1.8 billion in loans and $273 million in collateral provided by Alameda Research Ltd., the now-defunct cryptocurrency trading firm founded by Sam Bankman-Fried, to Genesis Global Capital prior to its bankruptcy and simultaneous collapse of FTX , as indicated by court documents filed Wednesday.

> In addition, FTX Group claims in the legal filings that $1.6 billion in assets were withdrawn from its trading platform by Genesis Global Capital prior to the bankruptcy, along with $213 million extracted by GGC International. Continue here.

Matrixport, a cryptocurrency services provider, released a research report on Thursday suggesting that Bitcoin (BTC) has the potential to increase by 20%, reaching a value between $35,000 and $36,000.

> The report highlights that Bitcoin has been confined within a tightening wedge, which is expected to break upwards soon, possibly leading to a 20% increase, corresponding to the initial formation of the wedge.

> The research also mentions that despite the Federal Reserve’s recent decision to raise interest rates by 25 basis points, this is highly likely to mark the end of the current rate hike cycle.

> This development could pave the way for a robust market rally. Details here.

A US court has asked the Securities and Exchange Commission (SEC) to hear Coinbase’s complaint regarding the application of securities laws to digital assets.

> The Third Circuit Court of Appeals on Wednesday mandated that the SEC must file its response within a 10-day period, after which Coinbase has seven days to file a counter-response.

> Coinbase recently argued that the SEC has failed to provide adequate regulatory guidance for US companies operating in the cryptocurrency industry, arguing that the commission “must at least state how these inappropriate and inappropriate requirements will be aligned with digital assets.”

> The crypto exchange referenced a 2022 petition calling for formal rulemaking in the digital asset sector, which the SEC has yet to address. Full report here.

Coinbase, the prominent crypto exchange, has announced that it will discontinue its lending program effective May 10, 2023.

> The program enabled users to secure loans using bitcoin as collateral.

> In a Wednesday email to customers, Coinbase stated, “Beginning May 10, 2023, customers will no longer be able to take out new loans with Coinbase Borrow.”

> The company assured borrowers that current loans would not be affected and that no immediate action would be required.

> Borrowers will still have access to their loan history and the entire loan overview.

> A Coinbase spokesperson cited a lack of demand for the product as the reason for its termination, saying, “We regularly evaluate our products to ensure we are prioritizing the offerings our customers care about most.” Look here.

OpenSats, a non-profit promoting open source Bitcoin and Nostr projects, has secured $10 million from Jack Dorsey’s #startsmall initiative.

> The funds will support the development of a sustainable ecosystem for free, open source projects and protocols.

> Half of the donation will be allocated to the growing Nostr ecosystem.

> OpenSats aims to strengthen its efforts and make operations more efficient with the funding.

> The organization emphasized the importance of free software and open protocols to promote a free and prosperous society.

> OpenSats will maintain its 100% pass-through model, ensuring that all donated funds go directly to projects approved by the board.

> OpenSats expands its efforts by establishing a Nostr Development Committee, including Nostr creator fiatjaf and Coinkite CEO NVK, to review projects and protocol contributions. Details here.

As fans around the world celebrate Star Wars Day with lightsabers in hand, Cryptoys has revealed a partnership with Disney to sell digital collectibles featuring three of the franchise’s most iconic characters.

> Cryptoys, backed by Andreessen Horowitz, Mattel and Dapper Labs, will launch 15 limited edition digital toys of Luke Skywalker, Princess Leia and Darth Vader.

> Disney, known for its successful marketing and merchandising based on popular intellectual property, has not ventured significantly into the crypto space so far.

> But last year the media giant posted a LinkedIn job ad for a transactional lawyer to explore new technology opportunities.

> Cryptoys’ Star Wars NFTs will be powered by Dapper Labs’ Flow blockchain and will be available for $39.99 each. More here.

On Thursday, Bitcoin (BTC) remained relatively stable, trading slightly below $29,000 for most of the day, which has been the case for the past 10 days.

Investors weighed interest rate hikes by US and European central banks and the latest issues in the fast-growing banking crisis.

The leading cryptocurrency by market cap was trading at around $28,800, down 0.3% in the last 24 hours.

BTC fell below $29,000 on Thursday morning as US stock markets opened and fluctuated between $28,700 and $29,000.

Ether (ETH), the second-largest cryptocurrency by market capitalization, showed a similar trend, trading at around $1,877, down 0.6% from Wednesday at the same time.

The prices of major cryptocurrencies saw minimal movement throughout the day.

Litecoin’s LTC token traded almost flat at about $87.8, while Solana’s SOL token fell around 0.8% to trade at $21.70.