Crypto News Round-up (December 4th - December 8th 2023)

Crypto News Round-up (December 4th - December 8th 2023)
Here are the top stories that happened in crypto this week.
  • Bitcoin returns to $44,000
  • JP Morgan CEO Urges Government to Shut Down Bitcoin
  • Robinhood launches crypto trading service in the EU
  • Elon Musk comment halts Dogecoin Surge
  • Terra Luna Founder Facing U.S. Extradition Over TerraUSD and Luna Collapse

JP Morgan CEO Urges Government to Shut Down Bitcoin

During a Senate Banking Committee hearing, Jamie Dimon, CEO of JP Morgan Chase, expressed his strong objection to cryptocurrencies, specifically Bitcoin.

Dimon claimed that the only true use case for cryptocurrencies is for criminals involved in activities such as drug trafficking, money laundering, and tax avoidance. He went on to suggest that if he were in government, he would shut down cryptocurrencies altogether.

Dimon’s comments are not entirely new, as he has been a vocal critic of Bitcoin and other digital currencies in the past. He has previously referred to Bitcoin as a “hyped-up fraud” and even compared it to a “pet rock.”

Despite his negative view on cryptocurrencies, JPMorgan has actively engaged with blockchain technology, the underlying technology behind cryptocurrencies, and has been involved in various blockchain projects.

Bitcoin Returns To $44,000

Bitcoin (BTC) has been building on its upward momentum, with the cryptocurrency topping $44,000 for the first time since April 2022 on Tuesday.

The price of bitcoin was last higher by more than 4% to $43,794.99, according to Coin Metrics, extending gains from the previous day, as the drumbeat for a spot bitcoin exchange-traded fund in the U.S. grew louder. At one point, the coin traded as high as $44,903.45, its highest level since Apr. 7, 2022.

Tuesday’s gains bring Bitcoin up more than 160% for the year. Ether was higher by 1.6% on the day at $2,263.76. It’s up 88% for 2023.

Bitcoin has been reaching new highs more frequently over the past several weeks. It broke through $40,000 over the weekend for the first time since April 2022, after beginning November around the $34,000 level and climbing incrementally to new year-to-date highs in between.

Robinhood Launches Crypto Trading Service in The EU

Online brokerage giant Robinhood launched its crypto service in the European Union on Thursday, allowing users to buy and sell a range of over 25 digital currencies. This move pushes them further outside the United States as the company aim to unlock growth from international markets.

Robinhood said its new crypto product would allow customers to buy, sell, and hold from a range of more than 25 tokens, including Bitcoin, Ether, Ripple, Cardano, Solana, and Polkadot. The company hopes to offer more tokens and the ability to transfer and “stake” or earn rewards from crypto in 2024.

Robinhood is looking to tempt EU users into using its service with the ability to earn free bitcoin for users who trade lots and refer the app to their friends. The company will offer users up to one Bitcoin based on a percentage of their monthly trading volume and the number of users they refer when they sign up.

Meanwhile, the EU has proposed a comprehensive set of regulations, called the Markets in Crypto-Assets regulation, that would bring in stricter rules for crypto trading platforms and issuers of so-called stablecoins.

Elon Musk's Comment Halts Dogecoin Surge

DOGE surge started to reverse in U.S. morning hours Wednesday after Tesla CEO Elon Musk said that his artificial intelligence startup xAI was not "raising money." DOGE fell to $0.10 and is down 1.1% in the past hour, reversing some gains from a 14% rally over the past day.

DOGE jumped 7% on Tuesday after a U.S. Securities and Exchange Commission filing, which showed XAI (called X.AI in legal documents) might try to raise up to $1 billion – and had already raised $134.7 million.

Due to his apparent infatuation with the dog-themed meme token, DOGE has historically pumped on Musk's comments and public posts. In April, Musk teased DOGE payments on X, then known as Twitter, proposing dogecoin as one of the payment options for Twitter Blue, the site's subscription service with premium features.

Terra Luna Founder Facing U.S. Extradition Over TerraUSD and Luna Collapse

Do Kwon, the man behind the $40 billion collapse of crypto token TerraUSD, faces extradition to the US or South Korea after a Montenegrin court ruling. Arrested for using a forged passport, Kwon sparked an international manhunt following his escape from an investigation in South Korea into TerraUSD and Luna collapse, which triggered a widespread crypto market crash.

The US has charged him with multiple criminal counts, including securities and wire fraud, while South Korea seeks him for allegedly violating capital market rules.

The Montenegrin justice minister will decide which extradition request takes priority. Kwon's TerraUSD stablecoin, designed to bridge traditional and crypto markets, failed to maintain its value, leading to his infamy in the crypto industry. This incident heightened regulatory scrutiny on stablecoins, with US officials like Treasury Secretary Janet Yellen recognising the growing risks in this rapidly evolving sector.

Disclaimer:  The information provided in this crypto news round-up is for informational purposes only and should not be considered financial or investment advice. Obiex will not be held liable for your investment decisions.