Bitcoin plunged by $5,000 within a span of 24 hours as interest rates surged, marking a turbulent start to April for cryptocurrencies and related stocks, especially mining stocks.

The flagship cryptocurrency, Bitcoin, experienced a more than 6% decline on Tuesday, dropping to $65,150.00, resulting in a two-day loss of around 7%, according to Coin Metrics. This decline followed a trading price of approximately $70,000 on Monday morning. The drop was attributed to data indicating growth in the manufacturing sector for the first time since September 2022, coupled with cooling investor bets on June rate cuts. Bitcoin is currently down about 11% from its all-time high reached on March 14.

Ether also faced a decline, losing 6% to trade at $3,240.27.

Concurrently, the 10-year U.S. Treasury yield reached its highest level of the year, while the U.S. dollar, which typically has an inverse relationship with bitcoin, hit its highest level in nearly five months.

The decline in Bitcoin’s price was possibly exacerbated by a large bitcoin holder, or “whale,” who transferred more than 4,000 bitcoin to the Bitfinex exchange late Monday night. Data from CryptoQuant indicates a spike in the exchange’s reserves, which typically signifies increased selling activity, aligning with the sudden drop in bitcoin’s price late Monday night.

Stocks associated with bitcoin’s performance also experienced declines. Cryptocurrency exchange Coinbase dropped 4%, while software provider MicroStrategy, which largely trades as a proxy for the price of bitcoin, lost nearly 7%. The largest mining stocks, Marathon Digital and Riot Platforms, experienced losses of 7% and 6%, respectively. CleanSpark, one of the best-performing miners this year, slid 6%.

The month of April could prove to be tumultuous for cryptocurrencies and related stocks, particularly mining stocks, as investors are eyeing the bitcoin halving event, which is set to slash the reward, and therefore revenue, of bitcoin miners in the second half of the month. While this event could negatively impact miners’ performance, historically it has set bitcoin up for rallies of 300% or more in the following months.

Despite the recent downturn, Bitcoin is still up 53% for the year 2024.

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Tether, one of the leading stablecoin issuers, has announced the completion of a System and Organization Controls 2 (SOC 2) audit, marking the highest level of security compliance achievable for an organization. This independent audit, developed by the American Institute of Certified Public Accountants (AICPA), highlights Tether’s dedication to ensuring a secure user experience.

Paolo Ardoino, CEO of Tether, emphasized the significance of this compliance measure in assuring customers that their assets and data are managed in an environment adhering to the highest standards of data protection and information security. Ardoino highlighted Tether’s dedication to being the most trusted and compliant stablecoin in the world.

In line with its ongoing dedication to security, Tether has pledged to undergo annual SOC 2 audits to verify that its security practices consistently align with established standards. The firm aims to achieve SOC 2 Type II certification by the end of 2025, which evaluates the effectiveness of internal controls over 12 months.

Tether’s flagship stablecoin, USDT, boasts a market capitalization exceeding $104 billion, making it the third-largest cryptocurrency by market capitalization after Bitcoin and Ether. The recent milestone of reaching a $100 billion market cap on March 4 reflects a notable 9% year-to-date growth.

Beyond stablecoins, Tether is venturing into new territories. The company plans to invest approximately $500 million in constructing Bitcoin mining facilities in Uruguay, Paraguay, and El Salvador. With the goal of growing its computing power to represent 1% of the Bitcoin mining network, Tether aims to expand its direct mining operations to 450 MW by the end of 2025. The company’s approach involves setting up facilities within movable containers to adapt to changing electricity prices.

Ardoino emphasized that Tether’s mining endeavors are focused on gradual learning and growth, with no rush to become the largest miner globally. This strategic expansion aligns with Tether’s broader vision of innovation and resilience in the cryptocurrency ecosystem.

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Coinbase and Circle, two prominent players in the cryptocurrency industry, are contesting aspects of a proposal from the Basel Committee on Banking Supervision that aims to introduce stricter criteria for the regulatory treatment of stablecoins held by banks.

The committee’s consultation document, released in December, outlines requirements for stablecoins to qualify for preferential regulatory treatment under a “Group 1b category.” These requirements include maintaining low volatility and adequate liquidity. Comments on the proposal were due by March 28.

In response, Coinbase expressed disappointment with the committee’s approach in a letter submitted on March 28, criticizing many of the requirements as not being based on the actual risk these assets pose to banks. Coinbase argued that the proposed criteria seem to reflect broader policy objectives rather than strictly financial risk considerations.

Additionally, Coinbase accused the committee of aiming to significantly limit banks’ ability to hold and utilize stablecoins.

Circle, the issuer of a popular stablecoin, also raised concerns about the committee’s treatment of permissionless blockchains. The committee suggested that permissionless blockchains present unique risks and indicated they would not be allowed in Group 1 for the time being.

Circle argued that banks should be encouraged to leverage technologies like permissionless blockchains to enhance their digital transformation and cybersecurity efforts. They emphasized their successful partnerships with global banking institutions and advocated for a collaborative approach rather than stigmatizing blockchain-based financial services.

The Basel Committee on Banking Supervision, comprised of global standard setters, plays a crucial role in shaping regulatory frameworks for financial institutions worldwide.

Coinbase and Circle are pushing back against proposed stablecoin regulations from the Basel Committee on Banking Supervision. The proposed regulations aim to determine preferential treatment for stablecoins held by banks. Coinbase criticized the criteria as not being based on actual risk assessment, while Circle advocated for the use of permissionless blockchains in banking.

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Bitkub Capital Group Holdings, the parent company of Thailand’s leading cryptocurrency exchange, is ramping up its workforce as it prepares for its anticipated initial public offering (IPO) on the Stock Exchange of Thailand (SET) in 2025.

CEO Jirayut Srupsrisopa revealed to Bloomberg on April 1 that Bitkub is actively seeking financial advisors to support its IPO listing, aiming to secure new capital and enhance its market presence.

In a strategic move, Bitkub is embarking on a hiring spree despite previously reducing its headcount by 6% in 2022 and 2023. The exchange plans to recruit 1,000 new employees by 2025, effectively doubling its current workforce of 2,000 individuals.

Bitkub’s IPO plans were initially hinted at in a shareholder letter in 2023, with the company now solidifying its intentions.

Based in Bangkok, Bitkub dominates the Thai crypto market, commanding 77% of the market share as of December 2023, according to HashKey data. The exchange handles approximately $30 million in daily trading volumes.

Thailand’s burgeoning crypto landscape has attracted significant attention, with the country boasting over 13 million crypto users as of 2023, representing about 18% of its population. This figure is projected to rise to 17.7 million users by 2028.

Competitive pressures in Thailand’s crypto sector are intensifying, with industry giants like Binance establishing local subsidiaries and domestic banks, such as Kasikornbank, making strategic investments in crypto exchanges like Satang.

Bitkub’s IPO plans follow its sale of a 9.2% stake in its crypto exchange unit, Bitkub Online, to tech holding company Asphere Innovations in July 2023, signaling confidence in the platform’s growth potential.

Jirayut anticipates a surge in Bitkub Online’s valuation as trading volumes approach levels reminiscent of the 2021 crypto bull market. The platform currently contributes around 80% of Bitkub Capital’s earnings.

Despite regulatory challenges, including a failed acquisition attempt by SCB X in 2022, Bitkub remains optimistic about its prospects in Thailand’s evolving crypto landscape.

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XRP’s price is witnessing a decline today, following the broader trend in the crypto market. Currently, down by over 5.5% to $0.59, it continues its volatile trading pattern seen in recent days.

The current dip in XRP’s price reflects a retracement that commenced in March after reaching a peak of $0.74. Since then, it has decreased by approximately 18.5%, with several factors contributing to its decline.

U.S. Manufacturing Data Impact on XRP Price

The downward movement in XRP’s price aligns with similar drops across the cryptocurrency market. Investors are reassessing their expectations regarding the Federal Reserve’s interest rate cuts following robust U.S. manufacturing data.

The Institute for Supply Management’s manufacturing index rose by 2.5 points to 50.3 last month, signaling a halt to a 16-month decline in manufacturing activity. This data suggests that the Fed may opt for two rate cuts this year instead of the previously anticipated three.

Reduced Interest in XRP and Whale Activity

Lower interest rates typically favor cryptocurrencies like XRP, which do not offer interest. However, recent trends indicate a decline in the number of significant XRP holders, often referred to as “whales.” Conversely, the number of addresses holding smaller amounts of XRP is increasing.

Market Outflows and XRP Dominance

XRP has underperformed compared to its major competitors in 2024, with a year-to-date performance of approximately -4.5%. The XRP Dominance Index has dropped by 36.55% during the same period, indicating a capital outflow from XRP to other cryptocurrencies.

This outflow is partly attributed to ongoing legal issues, including the SEC’s lawsuit against Ripple. Last week, Ripple’s chief legal officer revealed that the SEC is seeking a $2 billion penalty against the company.

Technical Analysis and Future Outlook

Technically, XRP’s current price decline is part of its fluctuation within an ascending triangle pattern. The cryptocurrency’s next downside target is projected around the triangle’s lower trendline, which intersects with its 200-week exponential moving average near $0.52 by mid-April. Conversely, a breakout above the triangle’s upper trendline could propel XRP’s price to $0.74, its local peak from March 11.

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