It has been another big week for cryptocurrency news. Read on for the ultimate roundup of what has been happening.
BlockFi Reaches Deal with FTX
In last weeks cryptocurrency news update we mentioned that according to the Wall Street Journal, exchange FTX was in negotiations with BlockFI to acquire a stake in the company. One week on, there has been a major announcement on the deal.
While CBNC reported that the sale price for BlockFI is just 25 million, BlockFI CEO Zac Prince announced Friday morning that they have reached an agreement to give FTX the right to acquire BlockFi, along with a $400 million credit facility.
In a tweet shared on Thursday, Prince stated that “I can 100% confirm that we aren’t being sold for $25M”. He also encouraged people to “only trust details that you hear directly from BlockFi.”
Prince also said the deal is still subject to shareholder approval and has a total value of “up to $680 million.”
EU agrees on groundbreaking cryptocurrency regulation
Cryptocurrency in Europe is becoming more regulated. The new law (known as Markets in Crypto-Assets, or MiCA), has been introduced to curb the risk of volitality with stablecoins.
The European Securities and Markets Authority (also known as ESMA), will be given additional powers to ban or restrict crypto platforms if they are found to threaten market integrity, financial stability or if they do not not properly protect investors.
The new law will not apply tokens without issuers, such as bitcoin.
Petr Kozyakov, CEO of payment infrastructure firm Mercuryo believes the new regulations are a “welcome step in the right direction.”
“There is a real desire for a clear set of rules to protect individuals and businesses who have adopted cryptocurrencies already, to weed out bad actors, and to encourage others to adopt crypto as a result”, he said.
Deutsche Bank analysts predicting Bitcoin price recovery by December
A new report from Deutsche Bank analysts Marion Laboure and Galina Pozdnyakova offers a new perspective on the medium-term outlook for Bitcoin. Their insights point to cryptocurrency markets mirroring the movements of the Nasdaq 100 and S&P 500 since late 2021.
The two analysts believe that the S&P will rebound to its January levels and in turn Bitcoin’s correlation to the index may lead to a 30%. If their report is correct, this would see BTC back up to around $28,000.
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