Yuichiro Chino | Moment | Getty Images
Executives in the cryptocurrency industry called the start of a new bull run with a growing number of voices calling for fresh all-time highs for bitcoin in 2024 above $100,000.
Bitcoin has rallied more than 120% this year, with many optimistic about the surge continuing into 2024.
“It feels that was a year to get ready for the bull run that is yet to come. But the sentiment is very hopeful for  and 25,” Pascal Gauthier, CEO of Ledger, told CNBC last week in an interview.
The digital currency’s last record high of nearly $69,00 was hit in November 2021.
Since then, the crypto industry has been hit with a litany of issues from the collapse of coins and projects to bankruptcies and criminal trials. FTX, once one of the world’s biggest exchanges, collapsed with its founder Sam Bankman-Fried facing over 100 years in prison after he was found guilty on seven counts of criminal fraud.
Meanwhile, Binance chief Changpeng Zhao pleaded guilty to criminal charges and stepped down as the company’s CEO as part of a $4.3 billion settlement with the U.S. Department of Justice.
Many in the industry see the two cases concluding as a line being drawn under issues that have plagued the crypto market.
“I think that once you get the speculative phase out of the way, which I think we’re almost done with, probably not yet completely done, then you can get real builders focusing on the technology and the problems that can solve in the world, rather than just having a giant digital casino for people to trade,” David Marcus, CEO of Lightspark, told CNBC last week in an interview.
Marcus, the former leader of Facebook’s failed Diem stablecoin project, is now working on technology to improve bitcoin as a payments network.
Now that those issues are out the way, investors are focused on what the industry sees as positive developments. The first is the growing excitement that a bitcoin exchange-traded fund, or ETF, might be approved soon. This could bring in larger traditional investors who previously did not want to touch crypto.
“I think what the ETF means really is that bitcoin is going mainstream, and that’s what people were waiting for,” Gauthier said.
The second development is the bitcoin halving, which takes place every four years and is scheduled for May 2024. Halving is when miners, which are entities who uphold the bitcoin network, see the rewards for their work cut in half. This keeps a cap on the supply of bitcoin — of which there will ever only be 21 million coins — and often is a factor behind a new rally.
“A number of market participants are expecting a bull run some time after the halving, but given the ETF news, we could very well have a run before that leaving most investors on the sidelines. That could cause a massive upward run in the price,” Vijay Ayyar, vice president of international markets at cryptocurrency exchange CoinDCX, told CNBC.
There have already been some bold calls for bitcoin in 2024.
It began with Standard Chartered last week which reiterated an April price call that bitcoin would hit $100,000 by end of 2024. The bank said this will be driven by the approvals of numerous ETFs.
That would mean a roughly 160% rally from Friday’s price of around $38,413, according to CoinDesk data.
Matrixport, which bills itself as a crypto financial services firm, released a note last week projecting bitcoin would reach $63,140 by April 2024 and $125,000 by the end of next year.
“Based on our inflation model, the macro environment is expected to remain a robust tailwind for crypto. Another decline in inflation is anticipated, prompting the Federal Reserve to likely initiate interest rate cuts,” Matrixport said in its report.
“Combined with geopolitical crosscurrents, this healthy dose of monetary support should push Bitcoin to new highs in 2024.”
Many commentators see easing monetary policy as supportive for bitcoin which is viewed as a risky asset. Meanwhile, some see bitcoin as a sort of “safe haven” asset to pour money into in times of geopolitical strife.
When asked if bitcoin would hit $100,000 in 2024, Gauthier said “maybe,” but declined to give a price prediction.
“What we see is strong fundamentals,” he said.
Ayyar said that the price of bitcoin is “consolidating” below a “key level” of $38,000, which is bullish for bitcoin. Once this level is broke, bitcoin could rally to between $45,000 and $48,000 next, he said.
However, he warned the rally, which is in large part built on expectations of an ETF approval, could fail if the product is rejected by regulators again.
“An all out ETF rejection could play havoc to this run as well, hence definitely something to be mindful of,” he said.
Nvidia briefly surpasses $2 trillion in market cap during intraday trading
Nvidia CEO Jensen Huang speaks onstage during The New York Times Dealbook Summit 2023 at Jazz at Lincoln Center in New York City on Nov. 29, 2023.
Slaven Vlasic | Getty Images
After rising earlier in the day, shares of Nvidia were down about 1% at 11 a.m. ET. Nvidia stock closed up 16% Thursday.
Nvidia posted $22.10 billion in revenue for its fiscal fourth quarter, a 265% increase from a year ago and above the $20.62 billion expected by analysts polled by LSEG, formerly known as Refinitiv. Nvidia reported $12.29 billion in net income during the quarter, up a staggering 769% from $1.41 billion last year.
The company has benefited from the tech sector’s insatiable demand for artificial intelligence capabilities over the past year. Nvidia makes the pricey graphics processors for the servers that power large AI models.
Nvidia said it expects $24.0 billion in sales in the current quarter, surpassing the $22.17 billion expected by analysts.
“Fundamentally, the conditions are excellent for continued growth,” Nvidia CEO Jensen Huang said during the company’s quarterly call with investors Wednesday.
— CNBC’s Kif Leswing contributed to this report.
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AI can ‘disproportionately’ help defend against cybersecurity threats, Google CEO Sundar Pichai says
Google CEO Sundar Pichai speaks in conversation with Emily Chang during the APEC CEO Summit at Moscone West on November 16, 2023 in San Francisco, California. The APEC summit is being held in San Francisco and runs through November 17.
Justin Sullivan | Getty Images News | Getty Images
Munich, GERMANY — Rapid developments in artificial intelligence could help strengthen defenses against security threats in cyber space, according to Google CEO Sundar Pichai.
Amid growing concerns about the potentially nefarious uses of AI, Pichai said that the intelligence tools could help governments and companies speed up the detection of — and response to — threats from hostile actors.
“We are right to be worried about the impact on cybersecurity. But AI, I think actually, counterintuitively, strengthens our defense on cybersecurity,” Pichai told delegates at Munich Security Conference at the end of last week.
Cybersecurity attacks have been growing in volume and sophistication as malicious actors increasingly use them as a way to exert power and extort money.
Cyberattacks cost the global economy an estimated $8 trillion in 2023 — a sum that is set to rise to $10.5 trillion by 2025, according to cyber research firm Cybersecurity Ventures.
A January report from Britain’s National Cyber Security Centre — part of GCHQ, the country’s intelligence agency — said that AI would only increase those threats, lowering the barriers to entry for cyber hackers and enabling more malicious cyber activity, including ransomware attacks.
“AI disproportionately helps the people defending because you’re getting a tool which can impact it at scale.
CEO at Google
However, Pichai said that AI was also lowering the time needed for defenders to detect attacks and react against them. He said this would reduce what’s known as a the defenders’ dilemma, whereby cyberhackers have to be successful just once to a system whereas a defender has to be successful every time in order to protect it.
“AI disproportionately helps the people defending because you’re getting a tool which can impact it at scale versus the people who are trying to exploit,” he said.
“So, in some ways, we are winning the race,” he added.
Google last week announced a new initiative offering AI tools and infrastructure investments designed to boost online security. A free, open-source tool dubbed Magika aims to help users detect malware — malicious software — the company said in a statement, while a white paper proposes measures and research and creates guardrails around AI.
Pichai said the tools were already being put to use in the company’s products, such as Google Chrome and Gmail, as well as its internal systems.
“AI is at a definitive crossroads — one where policymakers, security professionals and civil society have the chance to finally tilt the cybersecurity balance from attackers to cyber defenders.
The release coincided with the signing of a pact by major companies at MSC to take “reasonable precautions” to prevent AI tools from being used to disrupt democratic votes in 2024’s bumper election year and beyond.
Adobe, Amazon, Google, IBM, Meta, Microsoft, OpenAI, TikTok and X, formerly Twitter, were among the signatories to the new agreement, which includes a framework for how companies must respond to AI-generated “deepfakes” designed to deceive voters.
It comes as the internet becomes an increasingly important sphere of influence for both individuals and state-backed malicious actors.
Former U.S. Secretary of State Hillary Clinton on Saturday described cyberspace as “a new battlefield.”
“The technology arms race has just gone up another notch with generative AI,” she said in Munich.
“If you can run a little bit faster than your adversary, you’re going to do better. That’s what AI is really giving us defensively.
president of security at DXC
A report published last week by Microsoft found that state-backed hackers from Russia, China, and Iran have been using its OpenAI large language model (LLM) to enhance their efforts to trick targets.
Russian military intelligence, Iran’s Revolutionary Guard, and the Chinese and North Korean governments were all said to have relied on the tools.
Mark Hughes, president of security at IT services and consulting firm DXC, told CNBC that bad actors were increasingly relying on a ChatGPT-inspired hacking tool called WormGPT to conduct tasks like reverse engineering code.
However, he said that he was also seeing “significant gains” from similar tools which help engineers to detect and reserve engineer attacks at speed.
“It gives us the ability to speed up,” Hughes said last week. “Most of the time in cyber, what you have is the time that the attackers have in advantage against you. That’s often the case in any conflict situation.
“If you can run a little bit faster than your adversary, you’re going to do better. That’s what AI is really giving us defensively at the moment,” he added.
Ride-hailing giant Grab posts first profitable quarter, announces $500 million share buyback
A attendee walks past a banner with a Grab logo before a bell-ringing ceremony as Grab begins trading on the Nasdaq, in Singapore, on Thursday, Dec. 2, 2021.
Ore Huiying | Bloomberg | Getty Images
This compares with a $391 million loss recorded in the same period a year ago. The boost was “primarily due to the improvement in Group adjusted EBITDA, fair value changes in investments, and lowered share-based compensation expenses,” the company said.
Revenue for the quarter hit $653 million, exceeding LSEG analysts’ estimates of $634.86 million.
Losses for full year 2023 came to $485 million, down 72% from $1.74 billion a year ago.
In addition to ride-hailing, the company also provides financial services like payments and insurance, as well as deliveries for food, groceries and packages.
“We exited [2023 with] mobility exceeding pre-Covid levels. We are seeing a very strong demand in the mobility space,” Grab CFO Peter Oey told CNBC in an exclusive interview on Friday, adding that tourism is “growing very much.”
“If you look at the deliveries business, we have another record 13% year-over-year growth. We have now more users on our platform also at the same time. So we have really strong momentum,” he said on CNBC’s “Squawk Box Asia.”
Grab announced Thursday it would be repurchasing up to $500 million worth of class A ordinary shares for the first time.
Grab was largely unprofitable during its years of operation, having amassed billions of dollars in losses since its inception in 2012.
In the initial years of business, tech startups tend to prioritize growth over profitability, which usually means burning a lot of cash. But with global macro uncertainties slowing growth, they have been forced to renew their focus on profitability and be more prudent with costs.
During the fourth quarter, total incentives — which include partner and consumer incentives — were further reduced to 7.3% of total value of goods sold, Grab said in its report. That’s compared to 8.2% in the same period a year ago “as we continued to improve the health of our marketplace.”
Grab had been doling out incentives to attract drivers and passengers to its platform but that’s tapering now as the company moves to drive up profitability.
On whether Grab would reach a time where it wouldn’t need to incentivize people to stay on the platform, Oey said incentives will “always be a lever” for the business.
“I don’t think we’re going to see a world where there’s no incentive whatsoever,” he told CNBC, adding that incentives help “to make sure we have enough supply” of drivers and attract price-sensitive customers.
For 2024, Grab expects revenue to come in between $2.70 billion and $2.75 billion, lower than LSEG analysts’ consensus of $2.8 billion.
Grab’s shares closed 8.41% lower on Thursday. Its share price has plummeted 75.8% from its $13.06 opening price in December 2021, when the firm first listed on the Nasdaq.
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