Today's Top Crypto Headlines:

Hey there crypto crew!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.
We’ve heard your feedback and are going to jump right into today’s headlines!

📰 News Highlights:

🚀 Bitcoin Soars to $40K (Link) (Link) (Link) (Link)

Bitcoin has just cracked the $40,000 ceiling for the first time in 19 months from its Nov. 10, 2021, all-time high of over $69,000, giving us a taste of the old-school crypto euphoria.

In a 24-hour frenzy, Bitcoin galloped from under $39,500 to a dazzling $40,000 on December 3, marking a 19-month high. It's like Bitcoin decided to dress up for the holidays, and the market is celebrating with a resounding cheer. This uptrend is attributed to several factors:

• Dovish hints from the Fed: Chair Jerome Powell's recent comments suggesting a potential pause in interest rate hikes fueled optimism.

• Bitcoin ETF anticipation: Hopes for a U.S. spot Bitcoin ETF approval are rising, boosting investor sentiment.

• Increased Bitcoin withdrawals: Holders taking direct custody of their coins indicates confidence in Bitcoin's long-term potential.

What's more, our crystal ball—courtesy of Matrixport's visionary Markus Thielen—hints at a promising future.

Thielen predicts Bitcoin may shimmy its way to over $60,000 by April 2024, with a grand finale anticipated at $125,000 by the end of that year. It's a crypto spectacle with historical backing, considering Bitcoin's penchant for bullish cycles after mining reward halvings.

Also, the Federal Reserve Chairman, Jerome Powell, recently hinted that it's too early to talk about cutting interest rates, emphasizing a "keeping policy restrictive" stance. He acknowledged a potential slowdown in spending and output but didn't rule out more interest rate hikes. So, fellow hodlers, fasten your seatbelts for a potential Bitcoin rollercoaster ride!

⚽ Binance & Rinaldo Dodge DOJ, Crypto Sponsorship Deals Stay Strong (Link)

Binance, the world's largest crypto exchange, seems to be shaking off recent legal troubles and regulatory hurdles. Despite a class action lawsuit against its celebrity promoter Cristiano Ronaldo and a settlement with the US Department of Justice, Binance's sports sponsorships remain largely intact.

Ronaldo remains unfazed by the lawsuit, even hinting at further collaboration with Binance. This suggests a confident attitude from both sides, potentially signaling that the legal challenges won't significantly impact Binance's brand image.

Binance's financial stability is likely a key factor in its resilience. Unlike its competitor FTX, which recently faced bankruptcy, Binance maintains its ability to fulfill its sponsorship obligations, making it a reliable partner for sports organizations. The overlap between sports fans and crypto users creates a lucrative target audience for crypto companies. This trend is likely to continue, with Binance potentially waiting for the dust to settle before resuming its sports marketing efforts.

💼 SEC's Dance with DEBT Box (Link) (Link) (Link)

In the legal theater of crypto, we witness a riveting act featuring the SEC and Digital Licensing Inc., aka DEBT Box. Brace yourselves—United States District Judge Robert Shelby has thrown a curveball, hinting at sanctions for SEC lawyers due to, well, let's call it "creative storytelling." 

A federal judge is considering sanctions against Securities and Exchange Commission (SEC) lawyers for reportedly using "false and misleading" information to obtain a court order freezing the assets of crypto firm Debt Box. U.S. District Judge Robert Shelby expressed concern that the SEC's lawyers made "misleading" arguments about Debt Box's alleged attempts to move assets overseas, causing the court to freeze the project's bank accounts. The judge stated that these "misrepresentations" not only harmed Debt Box irreparably but also undermined the integrity of the case's proceedings.

An excerpt from the court documents state..

“The Commission made materially false and misleading representations that violated Rule 11(b) and undermined the integrity of the proceedings” - Judge Robert J. Shelby.

Apparently, Judge Shelby's not thrilled with the commission’s false statements and demands written explanations for the false statements within the next 14 days, raising questions about the SEC's credibility in the courtroom.

🔗 Grayscale's GBTC Ballet – A Graceful Transformation (Link) (Link)

In the ballet of digital assets, Grayscale is pirouetting towards a potential transformation. Picture this: Grayscale Bitcoin Trust (GBTC) might metamorphose into a Bitcoin ETF, seeking approval from the SEC for a move from OTCQX to the prestigious NYSE Arca exchange.

This is important because GBTC is an investment trust that owns over 3% of all Bitcoin currently in circulation.

Each share of GBTC is currently backed by 0.0008968 Bitcoin and is held in secure offline storage. GBTC does not employ any leverage or use any derivatives such as Bitcoin futures contracts. As a trust, share owners are forced into a long holding period where they are unable to liquidate their shares. This has caused the GBTC to trade at either a premium or discount to the actual spot Bitcoin price.

The whispers about an SEC, ETF decision in January add suspense to this unfolding drama, leaving us to wonder if the SEC is orchestrating an intricate dance of its own.

💔 KyberSwap's Decentralized Heartache (Link) (Link)

In the realm of decentralized finance, KyberSwap is mending broken hearts after a recent exploit led to a $48.8 million loss. In a surprising turn of events, KyberSwap is reaching into its treasure chest, planning to grant financial aid to those affected by the security breach.

It's more than just a compensation package; it's a gesture to reassure the community, showcasing KyberSwap's commitment to its users. As the platform recovers stolen funds and reviews its security protocols, it's a unique act of transparency and responsibility in the often tumultuous world of DeFi.

💡 Features of the Day:

FTX and Alameda's Crypto Symphony (Link) (Link) (Link)

In a financial opera conducted by FTX and Alameda Research, the latest movement is a $22 million transfer of digital assets, a crescendo in a symphony of transactions totaling $551 million across 59 diverse tokens since October 2023.

This dynamic duo of FTX and Alameda Research continues to compose financial sonatas, that echo through the crypto landscape. The movement of these funds may indicate that the firms plan to sell some assets to pay back creditors.

It's a story of liquidity, transfers, and a court-approved plan to sell digital assets, keeping members of the crypto community who had funds on the platform on the edge of their seats.

🔍 Industry Insights:

@fraxfinance is set to introduce a new lending approach without relying on oracles and avoiding hard liquidations.  (Link)

Here's the breakdown:

• Lenders will possess debt in an LP token rather than a single token.

• No need for oracles since the debt operates on the principle xy=k.

• Instead of hard liquidations, collateral is softly liquidated into the debt token at a discount.

• Similar to @CurveFinance LLAMMA but distinct; Curve lenders initially hold debt as a single token, while LLAMMA relies on oracles.

• Frax BAMM resembles @0xfluid's "Smart Collateral," but on Frax, borrowing is limited to the token from the LP.

A novel approach to say the least, but if it succeeds, it will be a game-changer for the industry!

🔍 Technical Analysis Monday: 

Guess what? Our in-house wizard of technical analysis has some juicy insights for you on the recent rollercoaster ride, featuring the rockstars Bitcoin and Ethereum.

Bitcoin's Weekend Joyride: Altcoins, Not So Much

Bitcoin experienced a substantial weekend surge, climbing by $3,600 (9.54%) to hit a new annual peak of $41,800. While this marked a significant move for Bitcoin, some traders are feeling a bit salty as altcoins struggle to gain momentum.

BTC.D, indicating Bitcoin's dominance, is not giving much room for altcoins to breathe, putting pressure on their prices. Last week, the importance of the range and potential scenarios were highlighted, focusing on key bounce areas for Bitcoin. The recent retest of the range high before the weekend surge provided favorable entry points for attentive readers. Currently, the recommended approach is to stay on the sidelines and observe further price action. The age-old advice holds true: buy low, sell high!

Over the weekend, Ethereum saw a bit of a pump influenced by Bitcoin's momentum. However, it's crucial to recognize that the ETH/BTC pair is in a significant downtrend, indicating that Ethereum is not performing as strongly as Bitcoin.

To provide context, while Bitcoin had a 9% increase, Ethereum only experienced a 6% pump, despite having a higher market capitalization. The target for Ethereum remains at a clear range of around 2400-2600 as its initial major resistance.

Right now the market is, suggesting we kick back, watch the show, don’t FOMO, and remember the golden rule: buy low, sell high.

No brainer, right?

📈 Investor's Corner: 

5 Phases of The Bitcoin Halving SOURCE

Today we will be breaking down the commonly discussed but often misunderstood Bitcoin Halving and it’s effects on Bitcoin’s price action.

1. Pre-Halving period

Approximately 5.5 months remain until the Bitcoin Halving in April 2024

Historically, any deeper retraces that occur during this period tend to generate fantastic returns on Investment for investors in the several months after the Halving 

2. Pre-Halving rally

Then ~60 days before the Halving, a Pre-Halving rally tends to occur (light blue)

In anticipation of the Halving, investors "Buy the Hype" to "Sell the News"

3. Pre-Halving retrace

A Pre-Halving retrace tends to occur around the Halving event itself (dark blue circle)

In 2016, this Pre-Halving retrace was -38% deep

In 2020, this Pre-Halving retrace was -20% deep

This Pre-Halving retrace makes investors question whether the Halving was a bullish catalyst on price after all

4. Re-Accumulation

The Pre-Halving retrace is followed by multi-month re-accumulation (red)

Many investors get shaken out in this stage due to boredom, impatience, and disappointment with the lack of major results in their BTC investment in the immediate aftermath of the Halving

5. Parabolic Uptrend

Once Bitcoin breaks out from the re-accumulation area breakout into the parabolic uptrend (green) It is during this phase Bitcoin experiences accelerated growth on its way to new All-Time Highs

🍪 Crypto Bites: Tasty Tidbits from the Crypto Sphere

• North Korean hackers have pilfered $3B of crypto over the past six years

• Binance dodges DOJ, crypto sponsorship deals stay strong

• Zodia Custody and Ripple's Metaco Forge Alliance

😂 Crypto Memes of the Day:

Newbies during a crypto rally be like…

Friday’s Poll Results:
Q - As the CEO of Kyberswap, you face an unprecedented crisis: a hacker has stolen millions of dollars worth of cryptocurrency and is demanding complete control of the company in exchange for its return.

The results were astounding!
100% of respondents say they would “Refuse to give in and lose all $48 million.”
While 0% of our readers would “give into the hackers demands.”

Wow interesting results.

And that’s it for this today!

Thanks for reading and stay tuned for tomorrow's updates.

As you know we are just starting out so feel free to reply back to this email with any recommendations or suggestions you might have on how we can improve the reading experience, any feedback is greatly appreciated.

See you again tomorrow,
Jonathan Gibson
UseTheBitcoin.com