Weekly Roundup 20.10.23
Cointelegraph Shares False Reports on Spot Bitcoin ETF Approval News
The price of Bitcoin briefly touched US $30,000 on a few cryptocurrency exchanges in response to a misleading post on the social media platform X (formerly known as Twitter).
Bitcoin experienced a sudden price surge following a false rumour of a US Bitcoin ETF approval. This rumour initially spread via a post on X from crypto media outlet Cointelegraph, causing a significant spike of nearly 11% in Bitcoin’s price.
The ensuing market volatility led to hourly liquidations exceeding US $100 million.
This incident highlights the remarkable impact that rumours and speculation can have on the cryptocurrency market, highlighting the need for accurate information and responsible reporting in the crypto space.
The post on X was immediately deleted as sources who had insight into the SEC’s operations circulated that the reports had been inaccurate.
Cointelegraph, your go-to for the crypto news for the past decade, seems to have fumbled the crypto ball with an internal hiccup! Investors have come out of this scratching their heads and wallets.
Australia’s Crypto Exchanges Under New Licensing & Custody Rules for 2024
Back on Australian shores, regulators have stepped in to be the judge and the jury for cryptocurrency exchanges and other digital asset platforms.
Cryptocurrency exchanges would need to seek a financial services licence from the Australian Securities and Investments Commission (ASIC), the country’s regulatory authority overseeing financial market conduct.
This move signifies a significant step towards creating a more level playing field for the cryptocurrency industry and positions cryptocurrency exchanges on par with traditional stockbroking firms that offer a range of financial instruments. By requiring cryptocurrency exchanges to obtain financial services licences and adhere to regulatory oversight from ASIC, it ensures a more standardised and regulated environment.
This added scrutiny can enhance investor protection, foster market integrity, and contribute to the industry’s maturation.
Australian cryptocurrency exchanges are finally witnessing progress in the often-delayed realm of crypto regulations as they emphasise the need for swift execution.
The announcement came on Monday, as the nation’s Treasury unveiled a proposal and consultation process, outlining the government’s intent to introduce draft legislation encompassing licensing and custody regulations for crypto asset providers by 2024.
Tesla Still Holds US $275 Million in Bitcoin.
A recent October 2023 Tesla earnings reports confirm that the company continues to hold its Bitcoin.
Elon Musk has undoubtedly become a major force in influencing both the cryptocurrency and stock markets. His immense reach on social media platforms, particularly X, allows him to broadcast his thoughts, ideas, and decisions, which often result in significant market movements.
Musk’s involvement with cryptocurrencies like Bitcoin and Dogecoin has sparked considerable volatility – his tweets and public statements can send these digital assets surging or plummeting. Likewise, his role in leading innovative companies like Tesla adds another layer of influence, as Tesla’s performance and Musk’s comments directly impact stock prices.
In the latest earnings update from Tesla, the electric vehicle giant disclosed its ongoing ownership of 9,720 bitcoins, valued at approximately US $275.6 million at the time of this report.
Strikingly, the quarterly report made no reference to any bitcoin-to-fiat conversions, indicating that the company’s profitability and cash balance remain unaffected, unlike previous quarters.
While Tesla’s motivation for retaining its Bitcoin remains undisclosed, it’s a significant move given its history of influencing the cryptocurrency market. As Musk once promised, this sustained Bitcoin ownership may hint at a potential revival of Bitcoin payments for Tesla products in the future.