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Bitcoin blew past $60,000 for the first time in more than two years on Wednesday as the popularity of spot ETFs drove a renewed trading frenzy for volatile cryptocurrencies — and crashed popular crypto exchange Coinbase.

The price of bitcoin soared to nearly $64,000 in the early afternoon, nearing it’s all-time high of $$68,789 in November 2021, before falling to around $61,000 by 6 p.m. That marked an 18% increase in the leading digital currency compared to one week ago and 40% bump compared to a month ago.

In the midst of Wednesdays rally, Coinbase, one of the largest digital asset exchanges, warned users that its website was experiencing issues but assured customers that their assets are safe after several complained that their digital wallets showed “$0.00.”

“We are dealing with a large surge of traffic — apologies for any issues you encounter, Coinbase CEO Brian Armstrong posted on X.

The bullish run on the world’s most popular crypto token could be the start of what Split Capitals Zaheer Ebtikar called a pretty clear FOMO kind of rally, referring to the “fear of missing out.”

More and more people are just convinced to buy, Ebkitar told Bloomberg.

The massive early success of recently approved spot bitcoin ETFs — which allow investors to acquire stakes in funds that own bitcoin offered by Blackrock, Fidelity and other firms has played a key role in the surge, experts told The Post.

The boom drove $520 million into BlackRocks Bitcoin ETF, a one-day record.

I do think the fact this is happening concurrent with the ETFs and you can look at the inflows of those things that seems to be a pretty big driver for this [rally], said Colin Harper, head of research at the bitcoin mining software firm Luxor.

Theres a large segment of the population that sees regulatory approval as, well, the states okay with this, theyre not going to ban it, institutions are cleared now. Theres a lot more legitimacy to it for the average person, Harper added.

However, other market experts warned that investors may soon see a “sharp correction” of 20% or more.

“This move has been very sharp, leverage is very high at the moment,” AnB Investments’ Jaime Baeza Baeza told Bloomberg.

The overall market capitalization for the cryptocurrency market hovered at a whopping $2.31 trillion as of Wednesday afternoon after crossing the $2 trillion threshold earlier this month for the first time in two years.

Cryptocurrencies have re-emerged as a hot asset alongside other trendy bets such as AI chipmaker Nvidia and weight-loss drug maker Eli Lilly, according to Jake Dollarhide, CEO of Longbow Asset Management.

You have the additional momentum of it being legitimatized by the SEC approving the ETFs from Blackrock and others. And then, frankly, the trash was hauled off to the curb in the form of Binance and FTX, Dollarhide said. You get rid of some bad actors and you rebuild trust within the crypto space.

The latest rally in bitcoins price brought it within striking distance of its all-time high of $69,000 a number that seemed unattainable over the last two years as a so-called crypto winter crushed demand for cryptocurrencies.

Bitcoins struggles throughout 2021 and 2022 were compounded by a number of scandals, including the collapse of convicted crypto fraudster Sam Bankman-Frieds FTX empire.

We are dealing with a LARGE surge of traffic – apologies for any issues you encounter. The team is working to remediate.

Other bullish factors include investor optimism that the Federal Reserve will cut sky-high interest rates at some point this year as well as a looming bitcoin halving a pre-planned event due in April that reduces the amount of digital currency people receive for mining by half.

Bitcoins halvings are meant to ensure the currencys scarcity over time. While the exact impact of each halving on bitcoins value is up for debate among experts, the price of bitcoin has soared ahead of past halvings that occurred in 2020, 2016 and 2012.

As the halving approaches, supply of new coins will be cut in half while demand is buoyed by the ETFs, said Christopher Alexander, chief analytics officer at Pioneer Development Group.

Once the small retail investors fully regain confidence in crypto exchanges there will be demand pressure at a level that has never been seen before, Alexander added.

With Post wires

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New York lawmaker wants to tax crypto sales and transfers

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New York lawmaker wants to tax crypto sales and transfers

New York lawmaker wants to tax crypto sales and transfers

New York Assemblymember Phil Steck introduced a bill that would see the state tax the sale and transfer of crypto assets.

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Garantex had ‘contingency plans’ last time authorities tried to shut it down

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Garantex had ‘contingency plans’ last time authorities tried to shut it down

Garantex had ‘contingency plans’ last time authorities tried to shut it down

The US government redesignated Garantex on Thursday to its list of sanctioned entities, along with its successor, Grinex, but TRM Labs suggests it may be ineffective.

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Four things we learned from Sir Mel Stride’s Electoral Dysfunction interview

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Four things we learned from Sir Mel Stride's Electoral Dysfunction interview

Since last year’s general election, Sir Mel Stride has become a familiar face for those of us who like our politics.

During the campaign, he regularly found himself on breakfast TV and radio. So much so, Sir Mel was referred to as the “minister for the morning round” by some of our industry colleagues.

By our count, he was on Sky News Breakfast at least 10 times during the campaign’s 43 days.

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Following the election, and losing the Conservative leadership race to Kemi Badenoch, Sir Mel now puts questions to Rachel Reeves as shadow chancellor.

Still seen as a safe pair of hands, Sir Mel’s penchant for doing the “morning round” hasn’t slowed down either, making regular appearances on breakfast TV and radio.

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Luckily, he found some time between all that to sit down for an interview with Sky’s Beth Rigby for the Electoral Dysfunction podcast. He spoke about his transition to Opposition, taking on Reform, and the most controversial topic in Westminster – lunch.

Here’s what we learned:

1. Opposition isn’t ‘awful’ – but it is like ‘warfare’

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‘I think people will see through Reform’s populism’

Before the election, Sir Mel served as work and pensions secretary. Shifting to the Opposition was not “awful”, despite losing the muscle of the civil service.

“But it is like guerrilla warfare,” he said.

“You suddenly lose all the trappings of government. Somebody once said to me, ‘when you get in the back of a car and you sit down and it doesn’t go anywhere, that’s when you realise you’re no longer a minister’.

“So it is that sort of sense of being looked after that disappears.”

There’s also a smaller team of Conservatives in the Commons. Before the election, Rishi Sunak had 343 MPs behind him.

Ms Badenoch currently only has 119.

“When you’re down to 120 MPs – and some set piece events, there might be only a fraction of those people there – it’s much quieter.

“What I actually often do is I can be quite provocative of the Opposition to get them going, because then at least you get something to feed off. Sometimes I do that to, just get the energy in the chamber.”

2. Being at the despatch box on big days can be ‘tricky’ – but he has a ‘secret’

You may remember Sir Mel’s lively response to Rachel Reeves’s spring statement in March. He revealed that, on those big political days, he isn’t told what the chancellor will say until about half an hour before it’s said in the Commons.

“It does give you and your team literally 10 or 15 minutes to… work out what the main things are,” he said.

However, he tells Electoral Dysfunction that you do have to be able to think on your feet in that scenario.

He said: “You are thinking about ‘what are the attack lines I’m going to use?’… and amend what you’re going to do.”

He added that he doesn’t get nervous. That might have to do with Sir Mel having been president of the Oxford Union debating society “many, many years ago”.

“Now the secret’s out. The secret is out Beth, and you’re the first to have gleaned that secret from me,” he said.

To be fair, it is on his website.

3. He’s not a huge fan of Reform

Nigel Farage
Image:
Nigel Farage

As the Conservatives battle with Reform for the right, Sir Mel didn’t have many positive words for Nigel Farage’s party.

“With Reform… these are populists, who peddle fantasy economics,” he said.

“‘Take everybody out of income tax up to £20,000 costs about £80bn according to the IFS [Institute For Fiscal Studies].”

The IFS has said it needed “more detail” to exactly cost Reform’s proposal, but “it could easily be in the range of £50 to £80bn a year”.

“I think ultimately,” Sir Mel says, “people will see through a lot of the populism that Reform stands for.”

He added that he believed that Reform’s 2024 manifesto, was, economically, “a work of fiction”.

“I mean, it’s quite dangerous, actually. I think if they’d been elected… the economy would have gone into a very bad place,” he said.

4. His ideal lunch? A cheese and ham toastie

Ms Badenoch and Sir Mel see eye-to-eye on many things - lunch isn't one of them. Pic: PA
Image:
Ms Badenoch and Sir Mel see eye-to-eye on many things – lunch isn’t one of them. Pic: PA

Sir Mel also addressed the most pressing issue of all – lunch.

If you’re unaware, this has proven a controversial subject in Westminster. Ms Badenoch told The Spectator in December she was “not a sandwich person… lunch is for wimps”.

In March, however, Ms Reeves gave a rebuttal to Electoral Dysfunction, revealing she whips up a cheddar sandwich in 11 Downing Street when she can.

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Labour MP hits out at ‘farce’ anti-corruption trial in Bangladesh
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Sir Mel falls more in line with his opposite number than his leader.

“I’ve always liked a sandwich, particularly a toasted sandwich,” he said.

“I’d go with the Cadillac, the Rolls Royce of sandwiches, a ham and cheese.”

Sir Mel has previously, however, been partial to some more peculiar fillings.

“Do you remember those Breville toastie makers? When I went to university, I had one of those, or whatever the equivalent was,” he said.

“You could put baked beans in, eggs in, and all sorts of things.

“It was fantastic.”

To each, their own.

Electoral Dysfunction unites political powerhouses Beth Rigby, Ruth Davidson, and Harriet Harman to cut through the spin, and explain to you what’s really going on in Westminster and beyond.

Want to leave a question for Beth, Ruth, and Harriet?

Email: electoraldysfunction@sky.uk

WhatsApp: 07934 200444

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