Today Bitcoin Rises back to the $664,000 Mark to end the week a New York jury Convicts a crypto Trader in the Justice Department's first ever cryptocurrency Market manipulation case and in the Final hours before the having we explore Why this time is different from those in The Past welcome to cnbc's crypto world I'm Jordan Smith digital currencies are Making around higher to close out the Week as we entered the final hours Before the Bitcoin having by noon Eastern Bitcoin jumped back above 6 $4,000 a gain of about 1.5% ether traded A little under $3,100 and salana Rose to $146 things have been a little unsteady For Bitcoin in this final runup to the Having the cryptocurrency fell as low as The $559,000 level in recent days as the Economic and geopolitical pressures are Mounting today's gains weren't enough to Push Bitcoin higher for the week though It's Fallen more than 3% in the past 7 Days in ether it's dropped more than 4% In that same time as Bitcoin moved lower This week the spot Bitcoin ETFs also Felt the pressure coindesk reports that Outflows for the ETFs reached $4.3 Million on Thursday adding to a 4-day Streak of withdrawals the question will Be how markets respond post having we'll Talk more about that in just a bit all Right let's talk about the top stories
Matt Hogan bitwise asset Management's CIO joined squawkbox this morning to Discuss markets and whether Bitcoin can Be considered a store of value or Safe Haven asset especially amid Rising Tensions in the Middle East this morning Israel launched retaliatory strikes Against Iran crypto prices were first Impacted by Iran's unprecedented drone Strike against Israel last Saturday That's when Bitcoin was hovering around $70,000 the next day the cryptocurrency Hit a low of $6,995 according to coin metrics but Later rebounded a bit and remained Volatile for the rest of the week there Are a lot of crosscurrents in bitcoin's Price right now there's ETF demand There's the having there's tax related Selling and of course there's these Geopolitical events I think you can try To reach too much into the short-term Trading activity it's better to pan out If you look big picture it's done a Great job of protecting us in against Inflation postco I think eventually it Will be a good hedge against Geopolitical uh disruptions but it's a Bit too much to ask for Bitcoin to both Be a perfect risk-off asset and deliver Exponential returns it's an emerging Risk-off asset when it gets to be fully Mature and is a perfect Hedge for the Events like we saw in Iran and Israel
Over the past week or so those Exponential returns will be gone so I Think you have to keep that big picture In mind Bitcoin is still growing into What it will eventually be next a New York Federal jury convicted a crypto Trader with the doj calls a Multi-million dollar scheme that was the Department's first ever crypto open Market manipulation case prosecutors Said 28-year-old Abraham Eisenberg Fraudulently obtained about $10 million Worth of crypto from the mango markets Exchange and its customers by Artificially driving up the price of Both Futures contracts and the mango Token he then borrowed crypto based on The value of the inflated assets without Planning on paying it back Eisenberg who Was living in Puerto Rico now faces a Maximum possible sentence of 20 years Behind bars for wire and commodities Fraud as well as Commodities Manipulation charges he's scheduled to Be sentenced in Manhattan federal court In July last the SEC argues that Justin Sun traveled to the US extensively During the time that his tokens were Promoted offered and sold which gives Sway to the agency's lawsuit against the Tron founder and his company the SEC Made that argument in this court filing Yesterday responding to son's request a Few weeks ago to dismiss the lawsuit in
Their request for dismissal the Defendants argued that the SEC lacked The jurisdiction a claim that sun made When he was on our show back in May in The filing the defendant said that the Sec's case stretches beyond the Regulator's scope and that extending the US Securities laws to cover Predominantly foreign conduct go too far And should be rejected however the SEC Argues that the court has personal Jurisdiction over the defendants because They quote purposefully took actions in And directed toward the United States by Doing things like promoting TRX and BTT Tokens to us investors the SEC sued son Tron bit torrent foundation and Rainberry in March of last year alleging The groups offered and promoted Unregistered Securities along with Committing fraud and Market manipulation We reached out to Justin son's team for Comment but didn't hear back right Away all right for our main story the Bitcoin having is just a few hours away Countdown on nice hash estimates that it Should happen sometime between tonight And tomorrow so what exactly is this Much anticipated event well Bitcoin Miners get paid in Bitcoin to validate Transactions and every four years that Reward is haved historically the having Cut to supply has led to significant Rallies for Bitcoin but with prices
Rallying so much in the runup to the Having event this year things look a lot Different so some say to expect a huge Rally While others like JP Morgan Analysts say the price could go down Right after the event crypto world's t Mckel explores why the having is so Uncertain for markets this Year 2024's Bitcoin having is getting a Lot of attention the technical event That cuts the reward paid out to minors Happens roughly every four years in the Past it was only celebrated by a few of The cryptocurrencies biggest Cheerleaders this year though the having Is a Hot Topic sometime in the next 12 18 months you know Bitcoin can be over 1 15,000 Around The Happening where the The amount of Bitcoin coming to Market Is cut in half after that time period You see another year of a bull market And the reason for all the attention There are way more people who care about And invest in Bitcoin than there were in 2020 during the last having that's Thanks to a wave of adoption during the Last cycle and new investment options For crypto curious investors like spot ETFs this was the defining moment I Think of Bitcoin at least right in in This era of its history like this was Its kind of um IPO like moment Pandora's Box is now open for institutional Adoption of the asset class investors
Are excited because the having has Historically set the stage for bitcoin's Next Bull cycle the event cuts the Number of new Bitcoin entering the Network each day and that means tighter Supply Bitcoin now has a clear uh Demand On a very scarce asset and that asset is About to get even more scarce with Bitcoin housing that added scarcity Often kickstarts bitcoin's rally to new All-time highs looking back at the 2012 2016 and 2020 having bitcoin's price ran Up about 93 times 30 times and 8 times Respectively from its having day price To its cycle top of course past Performance isn't indicative of future Results and the market is very different This time around huge maturation of the Asset class infrastructure development More people than ever being interested In it investors are hoping that this Having event will also lead to Big gains But others think that those Golden Days Of the having supercharging the market Might be behind us Julio Mareno of Crypto Quant called the having a one- Significant event so with all the hype In debate what should you expect for Bitcoin's price in the near term so Immediately after if we're going to Define that as like 24 hours 48 hours a Week like really shortterm I don't Expect you're going to see much at all It's not a short-term phenomena this is
A $30 million a day reduction in cell Pressure that effect builds over time so While that will have an effect on the Market one day two days 3 days 4 days After I don't think you're going to see A whole lot and in the long term well if You noticed earlier each having event Has provided diminishing returns 2012 Saw a bigger rally than 2016 and so on There are also more ways than ever for Investors to push bitcoin's price higher I'll come out and say I am a a skeptic On the fact that the diminishing returns Will happen this year I think this year We see a greater return than last cycle Because you know ultimately what drives An asset price up any asset price is not Financial models it's not cash flows It's people hitting the buy button in Their brokerage account I think it's a Little bit of a self-fulfilling prophecy Where certainly you know a reduction in Issuance of Bitcoin does help the uh Price by making it more scarce but a Large part of it is also just bringing It back into headlines having it be top Of mind you know in practice the ETF Flows are substantially larger than any Sort of increased issuance in in Bitcoin From Bitcoin miners so I think it's not A more of a material change and more of Just a change in in perception of the Asset all right that's all for crypto World this week we'll be back again on
Monday we'll see you then [Music]
