<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107022966-1646167695171-107022966-16461545292022-03-01t170756z_744715044_rc2ots9calux_rtrmadp_0_ukraine-crisis-east.jpg" alt="" class="wp-image-415590" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107022966-1646167695171-107022966-16461545292022-03-01t170756z_744715044_rc2ots9calux_rtrmadp_0_ukraine-crisis-east.jpg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107022966-1646167695171-107022966-16461545292022-03-01t170756z_744715044_rc2ots9calux_rtrmadp_0_ukraine-crisis-east-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107022966-1646167695171-107022966-16461545292022-03-01t170756z_744715044_rc2ots9calux_rtrmadp_0_ukraine-crisis-east-160x90.jpg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>Pro-Russian separatists are seen next to an abandoned tank on a road between the separatist-controlled settlements of Mykolaivka (Nikolaevka) and Buhas (Bugas), as Russia’s invasion of Ukraine continues, in the Donetsk region, Ukraine March 1, 2022. Alexander Ermochenko | Reuters</figcaption></figure>



As Moscow’s war on Ukraine rages on and the Russian economy and currency&nbsp;spiral to new lows, Washington is&nbsp;reportedly trying out a new way&nbsp;to dial up the pressure on Putin:&nbsp;sanctions targeting&nbsp;cryptocurrencies like&nbsp;<a href="https://www.cnbcafrica.com/quotes/btc=x/">bitcoin</a>&nbsp;and&nbsp;<a href="https://www.cnbcafrica.com/quotes/eth=x/">ethereum</a>.



The Department of Justice announced early Wednesday a&nbsp;new task force&nbsp;broadly designed to enforce sanctions. As part of that, it will target efforts to use cryptocurrency to evade U.S. sanctions, launder proceeds of foreign corruption or evade U.S. responses to Russian military aggression.



Taking aim at Russia’s access to digital cash&nbsp;comes as the U.S. and its allies, including notoriously neutral Switzerland,&nbsp;levy heavy punitive measures&nbsp;against Moscow.



The concern is that the Kremlin, as well as other ancillary actors supporting the offensive on Ukraine, will evade the sanctions regime via digital tokens, which are not owned or issued by a central authority like a bank. Bitcoin, like most cryptocurrencies, is decentralized and borderless, which means that it doesn’t respect national boundaries. Because there is no central authority to block transactions, digital currencies are also resistant.



Since Russia invaded Ukraine on Feb. 24,&nbsp;stats from crypto data provider Kaiko&nbsp;show that transactions on centralized bitcoin exchanges in both the Russian ruble and the Ukrainian hryvnia have surged to their highest levels in months. This is likely part of the reason why Ukraine asked all the top crypto exchanges to ban Russian users — a request that has been&nbsp;rejected by many major players, who argue a move like that would go against the very reason why cryptocurrencies exist.



Despite growing signs of crypto adoption — as well as dialed-up rhetoric from world leaders about banning sanctioned Russians from digital currency exchanges — crypto as a pathway to sidestepping sanctions isn’t really a viable option at scale.



First of all, crypto markets offer thin liquidity and token transactions are, by design, traceable via a public ledger known as the blockchain. Aside from that, experts tell CNBC that ultimately there are better and smarter ways than using bitcoin to get around global financial blockades.



“The size and scale of crypto markets — and their state of liquidity — is not sufficient enough to offset what happens from banking disruptions and other disruptions from sanctions,” said Yaya Fanusie, a fellow at the Center for a New American Security who assesses national security and money laundering risks related to digital assets.



“It’s akin to, if someone were to block your paycheck for a month and then you had to rely on your piggy bank to make up for it,” he said.



<h2 class="wp-block-heading" id="h-russia-is-no-stranger-to-sanctions"><a></a>Russia is no stranger to sanctions</h2>



Russia is no stranger to sanctions, and its political class has spent years getting creative on workarounds.



Moscow faced international condemnation in 2014 after Russia annexed the Crimean peninsula in Ukraine. That was also the year that a passenger plane headed from the Netherlands to Malaysia was&nbsp;shot down by a Russian-made&nbsp;surface-to-air missile&nbsp;fired over territory held by&nbsp;pro-Russian separatists in eastern Ukraine.



Since then, President Vladimir Putin has built buffers to insulate Russia from the blowback of Western sanctions, which economists estimate has&nbsp;cost Russia $50 billion a year.



Typically, the way sanctions work is that a government generates a list of the individuals and companies that must be avoided, and those doing business with these banned entities are subject to heavy fines. But sanctions are only as good as the KYC (Know Your Customer) onboarding requirements, explained Sarah Beth Felix, an authority on anti-money laundering and sanctions compliance.



“Depending on how strict that is, then that drives the data, which drives whether or not the sanctions are actually effective,” Felix says. “That is agnostic when it comes to the underlying flow of funds, whether it be crypto, fiat, wires, payable-through accounts — it all lives or dies on the underlying data that’s captured and verified on the ownership of the company, the individual, and all that kind of stuff.”



Part of Putin’s strategy involved diversifying away from U.S. treasuries and the U.S. dollar, cultivating a new kind of debt structure largely based on euros and gold. Putin’s war chest includes $630 billion in foreign reserves, which serves as a sort of financial shield meant to dull the impact of sweeping sanctions.



The country’s underlying financial fundamentals have also helped to absorb the shock. CNBC has reported that Russia has a debt-to-GDP ratio of only 18%, a current account surplus, and the price of oil surging past $113 a barrel (its highest level in more than a decade) is certainly a boon. Thus far, the White House has&nbsp;steered clear of sanctioning&nbsp;Russian oil sales.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/russia-central-bank-more-than-doubles-interest-rate-to-20-to-boost-sinking-ruble/">Russia central bank more than doubles interest rate to 20% to boost sinking ruble</a></h3>



Moreover, experts tell CNBC that Russians have been bracing for this kind of crackdown for months.



“Russia’s elite and financial authorities have been preparing for sanctions for some time,” said Salman Banaei, head of public policy for North American for Chainalysis, which&nbsp;specializes in tracking activity on blockchain networks.



Any movement of funds likely happened prior to Russia’s invasion, Felix agreed.



“I would assume billions and billions of dollars already moved through these front companies and shell corporations that we have around the world that are owned by Russian businesses and individuals, regardless of whether it involved crypto or normal bank-to-bank wires,” said Felix.



Banaei agrees that it is unlikely that designated persons would opt to move around large quantities of crypto at this point. Instead, Banaei says that if cryptocurrency is being used to evade sanctions, it likely would have happened slowly, over the past several months.&nbsp;



“At the end of all of this, the glaring, massive gap that we have is in the transparency of who owns what companies, not just in the U.S., but around the world,” explained Felix.



<h2 class="wp-block-heading"><a></a>Bitcoin wouldn’t work anyway</h2>



Even if Russia wanted to use crypto to evade sanctions, its economy is too big, the crypto market is too small, and any huge transactions would likely be flagged.



“The size of crypto markets is small compared to what’s happening in the banking sector,” said Fanusie.



The U.S. has placed new debt and equity restrictions on some of Russia’s most critical state-owned enterprises with&nbsp;estimated assets of nearly $1.4 trillion. These entities won’t be able to raise money through the U.S. market, a critical source of capital. The&nbsp;total cryptocurrency market cap is&nbsp;at around $1.9 trillion.



Cryptocurrencies are also thinly traded, which means that it can prove difficult to buy large swaths of digital tokens like bitcoin. The bitcoin-ruble pair&nbsp;maxes out at about $250,000 per trade&nbsp;on Binance,&nbsp;the world’s biggest cryptocurrency exchange,&nbsp;versus the bitcoin and U.S. dollar pairing, which has a maximum market order&nbsp;of around $2.6 million.



Delston tells CNBC that the size of the transactions that the Russian government would need to conduct would be multiples of what individual Russian citizens might be doing right now. Not only would that prove difficult to do in terms of liquidity limitations, but it could also red flag the transaction entirely.



“On the blockchain, the size of the transaction is immediately available, and very sizable transactions would be very apparent to anyone looking,” Delston said, who added that cryptocurrencies aren’t the bastion of anonymity they are so often made out to be.



While crypto has the advantage of not involving wire transfers from bank to bank (which are heavily policed to ensure sanctions compliance), every transfer ever made is captured on a public, permanent, and immutable blockchain ledger and can be traced in nanoseconds.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/bitcoin-jumps-13-as-russia-ukraine-conflict-continues-and-u-s-imposes-further-sanctions/">Bitcoin jumps 13% as Russia-Ukraine conflict continues and U.S. imposes further sanctions</a></h3>



“If I hand you find a $5 bill, you can never trace that back to me, where if I were to transfer you money through my wallet, that’s always linked back to my wallet ID, which if I went through a regulated exchange, has all of my CIP (Customer Identification Program) information,” explained Felix.



Chainalysis’ Banaei tells CNBC that a single tip in the cryptocurrency market can, within hours, uncover a network of wallet addresses involved in ransomware fraud and money laundering, while a similar tip relating to a traditional bank wire could take several months to reach a similar level of visibility into a criminal network and its money laundering.&nbsp;&nbsp;



While there are&nbsp;privacy tokens like&nbsp;monero, dash, and zcash, which have additional anonymity built into them, they tend not to be as liquid as other tokens, since many regulated exchanges have chosen not to list them due to regulatory concerns.



There is also the question of what to do once you have the crypto in hand.



“It’s hard to buy stuff with cryptocurrency, especially big stuff,” Delston tells CNBC. He says that he doesn’t know of any major electronics companies, food exporters, or spare parts manufacturers that accept cryptocurrency as payment, which he notes are “all the kinds of things that a country like Russia would need, because it doesn’t produce it on its own.”



And while historically crypto exchange compliance with the global sanctions regime hasn’t been great, Fanusie says it’s actually getting much better, as these platforms beef up their internal compliance teams.



Federal prosecutors are adding muscle to their crypto policing duties, as well. In February, the U.S.&nbsp;Justice Department unveiled&nbsp;a new cryptocurrency enforcement team.



<h2 class="wp-block-heading"><a></a>What about a digital ruble?</h2>



While a lot of attention goes to the potential for bitcoin to facilitate sanctions evasion, the bigger story to Fanusie is what sanctioned actors are doing with central bank digital currencies, or CBDCs.



The Bank of Russia released&nbsp;a consultation paper for a “digital ruble”&nbsp;in October 2020, and Central Bank Governor Elvira Nabiullina said the country&nbsp;plans to prototype and pilot it&nbsp;this year.



The digital ruble would be a virtual version of the country’s national currency that —&nbsp;similar to China’s digital yuan&nbsp;— would be&nbsp;controlled centrally by the Bank of Russia&nbsp;and use some form of distributed ledger technology.



At the time it was first announced,&nbsp;a Moscow newspaper, citing officials, said a digital ruble would both reduce dependency on the dollar, as well as mitigate exposure to sanctions.



Well before the Russian invasion of Ukraine, former U.S. Treasury official Michael Greenwald&nbsp;told CNBC&nbsp;that a digital ruble could prove problematic for the U.S.



“What alarms me is if Russia, China, and Iran each creates central bank digital currencies to operate outside of the dollar and other countries followed them,” he said. “That would be alarming.”

107022966-1646167695171-107022966-16461545292022-03-01t170756z_744715044_rc2ots9calux_rtrmadp_0_ukraine-crisis-east

Bitcoin sanctions could be next, but most Russians won’t care

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/106928219-1629130755312-gettyimages-1234311531-sindeyev-notitle210729_np12K-1.jpeg" alt="" class="wp-image-415567" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/106928219-1629130755312-gettyimages-1234311531-sindeyev-notitle210729_np12K-1.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/106928219-1629130755312-gettyimages-1234311531-sindeyev-notitle210729_np12K-1-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/106928219-1629130755312-gettyimages-1234311531-sindeyev-notitle210729_np12K-1-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>A visual representation of bitcoin. STR | NurPhoto via Getty Images</figcaption></figure>



Bitcoin jumped 13% on Tuesday continuing its sharp rebound as the Russian assault on Ukraine continues and the U.S. ratchets up sanctions.



The cryptocurrency was up more than 13% at $43,500.16 as of 3:03 a.m. ET after hitting a high in the past 24 hours of $44,165.90, according to CoinDesk data. That rally comes after cryptocurrency prices plunged last week as risk assets such as stocks sold off following Russia’s invasion of Ukraine.



Ether was up nearly 11% at $2,922.86.



Over the years, bitcoin proponents have touted the cryptocurrency as “digital gold,” an asset that provides a safe haven for investors during times of turmoil or even as a potential hedge against inflation. But bitcoin has not performed that way. Instead, it has been more correlated to the movement of stock prices, even as inflation continues to hit multi-year highs and a military conflict plays out. That case for bitcoin as digital gold has unraveled in recent weeks.



Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, said that could be changing.



“Bitcoin and cryptocurrencies are arguably having their watershed moment against backdrop of global uncertainty and tension related to the Russia-Ukraine crisis,” Ayyar told CNBC.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/stocks-rise-rouble-jumps-over-1-ahead-of-u-s-russia-talks/">Stocks rise; rouble jumps over 1% ahead of U.S.-Russia talks</a></h3>



“Crypto is decoupling from traditional markets and can be clearly seen in the performance.”



People have been donating cryptocurrency to the Ukrainian army too, “proving that crypto is fundamentally a technology that cannot be ignored,” Ayyar added.



He also said that a bottom for bitcoin was already forming as the war was getting underway.



Michael Rinko, venture associate at AscendEx, told CNBC on Monday that $38,000 was a key level for bitcoin.



“More people bought at $38,000 than at any other level above or below for a good margin,” he said.



<h2 class="wp-block-heading" id="h-further-sanctions"><a></a>Further sanctions</h2>



Bitcoin’s rally comes as the U.S. imposed further sanctions on Russia. Washington targeted Russia’s central bank, effectively prohibiting Americans from doing any business with the bank as well as freezing its assets within the U.S.



That comes on top of sanctions that have targeted oligarchs and Russia’s sovereign debt as well as moves aimed at cutting the country off from the global financial system.



Debate has been raging over whether bitcoin, which is not owned or issued by a single authority like a central bank, could be used by Russia to evade sanctions. But the amount of money that Russia would need to convert to and from bitcoin might be too much, according to Ari Redbord, head of legal and government affairs at TRM Labs.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/the-case-for-bitcoin-as-digital-gold-is-falling-apart/">The case for bitcoin as ‘digital gold’ is falling apart</a></h3>



“You’re going to see Russia attempt to circumvent the U.S. financial system by turning to crypto. I think the issue is … the liquidity just simply isn’t there,” Redbord told CNBC’s “Squawk Box Asia.”



On Sunday, Mykhailo Fedorov, vice prime minister of Ukraine, asked major cryptocurrency exchanges to block the addresses of Russian users.



Binance, the world’s largest exchange, said it would freeze accounts for any Russians on the sanctions list, but would not “unilaterally” block accounts of all Russian users.



Other cryptocurrency exchanges took a similar stance.



— CNBC’s Tanaya Macheel contributed to this report.

106928219-1629130755312-gettyimages-1234311531-sindeyev-notitle210729_np12K-1

Bitcoin jumps 13% as Russia-Ukraine conflict continues and U.S. imposes further sanctions

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/104893268-GettyImages-818871806.jpg" alt="" class="wp-image-415449" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/104893268-GettyImages-818871806.jpg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/104893268-GettyImages-818871806-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/104893268-GettyImages-818871806-160x90.jpg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>Bitcoin on a mound of gold. bodnarchuk | iStock Editorial | Getty Images</figcaption></figure>



A key investment case for&nbsp;<a href="https://www.cnbcafrica.com/quotes/btc=x/">bitcoin</a>&nbsp;is deteriorating as geopolitical uncertainty and rising inflation hammer cryptocurrency prices.



The price of bitcoin&nbsp;fell to a two-week low&nbsp;Tuesday after Russian President Vladimir Putin ordered troops into Donetsk and Luhansk, two breakaway regions in eastern Ukraine, shortly after declaring them as independent.



Bitcoin is often referred to as “digital gold” by its backers. The term refers to the idea that bitcoin can provide a store of value similar to&nbsp;gold&nbsp;— one that’s uncorrelated with other financial markets, like stocks.



Bitcoin bulls also see the cryptocurrency as a “safe haven” asset that can serve as a hedge against global economic uncertainty and increasing prices, which reduce the purchasing power of sovereign currencies like the&nbsp;U.S. dollar.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/cryptocurrencies-tumble-with-bitcoin-falling-8-and-ether-down-9-in-the-last-24-hours/">Cryptocurrencies tumble, with bitcoin falling 8% and ether down 9% in the last 24 hours</a></h3>



With inflation at historic highs, you’d expect this would be bitcoin’s time to shine — U.S. consumer prices last month&nbsp;rose the most since February 1982, according to Labor Department figures.



Instead, the cryptocurrency has lost almost half of its value since reaching an all-time high of nearly $69,000 in November. That’s led analysts to question whether its status as a form of “digital gold” still rings true.



“Bitcoin is still early in its maturity curve to be firmly placed in the category&nbsp;of ‘digital gold,’” Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, told CNBC.



<h2 class="wp-block-heading" id="h-safe-haven-or-risk-asset"><a></a>Safe haven or risk asset?</h2>



The latest declines for bitcoin came in tandem with a rout in global stocks, with the&nbsp;S&amp;P 500&nbsp;closing out Tuesday’s session in&nbsp;correction territory. Bitcoin’s price has increasingly been tracking moves in the stock market, with correlation between bitcoin and the S&amp;P 500 steadily rising.



Experts say cryptocurrencies have become more closely linked to other speculative parts of the market such as tech stocks, which are falling due to fears that lofty valuations may come down as the&nbsp;Federal Reserve&nbsp;and other central banks begin to hike interest rates and wind down their huge stimulus packages.



“The correlation between crypto and stocks has been high over the last few months on both inflation-related macro news and the Russia-Ukraine geopolitical situation,” Chris Dick, a quantitative trader at crypto market maker B2C2, told CNBC.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/130-billion-wiped-off-crypto-markets-in-24-hours-as-bitcoin-ether-drop-to-multi-month-lows/">$130 billion wiped off crypto markets in 24 hours as bitcoin, ether drop to multi-month lows</a></h3>



“This correlation shows that bitcoin is firmly behaving like a risk asset at the moment — not the safe haven it was touted to be a few years ago.”



In fact, gold has actually been outperforming bitcoin lately. Spot rates for the precious metal reached their highest levels since June 1 on Tuesday, climbing as high as $1,913.89 per troy ounce.



“Bitcoin, the asset purported to be the answer to every question, has quietly weakened and is notably underperforming its arch enemy, gold,” John Roque, head of technical strategy&nbsp;at 22V Research, said in a research note Monday.



“We’re looking for Bitcoin to get back to 30,000 and then break below there and we continue to expect gold will make a new all-time high.”



<h2 class="wp-block-heading"><a></a>‘Crypto winter’</h2>



Bitcoin’s slump has resulted in increased talk about a prolonged bear market known as “crypto winter.” The last such occurrence of this took place during late 2017 and early 2018, when bitcoin plunged as much as 80% from then-record highs of close to $20,000.



Not all analysts are convinced the latest downturn in digital currency prices is indicative of a crypto winter, though, with many saying market conditions have changed. There are now plenty of institutions holding bitcoin which, according to experts, is one reason for why it’s become more closely correlated with stocks.



“The adoption of cryptocurrencies by investors from traditional asset classes is the driving force behind bitcoin’s correlation with equities,” B2C2′s Dick said. However, he added: “This relationship has the potential to be broken at any time given the different fundamentals for each market.”



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/crypto-trading-thrives-in-nigeria-despite-official-disapproval/">Crypto trading thrives in Nigeria despite official disapproval</a></h3>



To compete more effectively with gold as a store of value, bitcoin needs to achieve more widespread adoption, according to Luno’s Ayyar.



“The fundamentals have always&nbsp;made sense — limited supply currency not affiliated with any nation state,” he said.



“But bitcoin needs to undergo its due process of monetization, where it’s held by a large enough pool of participants — more retail flow, larger institutions adding bitcoin to their balance sheets, [and] potentially&nbsp;more nation states&nbsp;after El Salvador&nbsp;buying Bitcoin.”

104893268-GettyImages-818871806

The case for bitcoin as ‘digital gold’ is falling apart

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/107017289-1645181629703-gettyimages-462418965-78050369.jpeg" alt="" class="wp-image-415362" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/107017289-1645181629703-gettyimages-462418965-78050369.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/107017289-1645181629703-gettyimages-462418965-78050369-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/107017289-1645181629703-gettyimages-462418965-78050369-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>Thomas Trutschel | Photothek | Getty Images</figcaption></figure>



<a href="https://www.cnbcafrica.com/quotes/btc=x/">Bitcoin</a>&nbsp;may not see a bull market until late 2024 or the beginning of 2025, if past price cycles are any indication, according to the co-founder of Huobi, one of the world’s largest cryptocurrency exchanges.



Du Jun told CNBC that bitcoin bull markets are closely tied to a process called halving, which occurs every few years.



This relates to so-called miners on the bitcoin network,&nbsp;which&nbsp;run powerful specialized computers to solve complex mathematical puzzles to validate transactions on the bitcoin network.&nbsp;Miners are rewarded in bitcoin as a result.



Halving is written into bitcoin’s underlying code and cuts in half the reward that so-called miners get for validating transactions on the cryptocurrency’s network. It occurs roughly every four years.



The last&nbsp;halving took place in May 2020, and in 2021,&nbsp;bitcoin topped an all-time high above $68,000. A similar occurrence happened when halving took place in 2016. The following year, bitcoin hit what was&nbsp;at the time a record high.



<h3 class="wp-block-heading" id="h-read-more-cryptocurrencies-tumble-with-bitcoin-falling-15-and-ether-down-20">Read more: <a href="https://www.cnbcafrica.com/2022/cryptocurrencies-tumble-with-bitcoin-falling-15-and-ether-down-20/">Cryptocurrencies tumble, with bitcoin falling 15% and ether down 20%</a></h3>



Following both those peaks, bitcoin tumbled. Currently, bitcoin is sat nearly 40% off its record high from November, though it’s still off some of the lows seen in January. The next halving event is scheduled to take place in 2024.



“If this circle continues, we are now at the early stage of a bear market,” Du said, according to a CNBC translation of his comments in Mandarin.



“It is really hard to predict exactly because there are so many other factors which can affect the market as well — such as geopolitical issues including war, or recent Covid, also affect the market,” he said.



“Following this cycle, it won’t be until end of 2024 to beginning of 2025 that we can welcome next bull market on bitcoin.”



The recent price drop in cryptocurrency has&nbsp;got some market participants&nbsp;worried that a so-called “crypto winter,” or an extended period of bearishness, could be imminent. During such times, bitcoin&nbsp;may trade in a sideways pattern.

107017289-1645181629703-gettyimages-462418965-78050369

Next bitcoin bull run won’t happen until end 2024, says top crypto exchange co-founder

The bitcoin narrative could be tested this week as investors monitor tense developments between Ukraine and Russia and weigh the possibility of the Federal Reserve hiking interest rates by 50 basis points, or 0.5 percentage points, in March.



The largest cryptocurrency by market capital currency has long been regarded by early investors and enthusiasts as a safe haven asset — one that ideally could offset risk in investors’ portfolios and limit exposure to negative shocks.



However, in recent months bitcoin has has been trading like equities, specifically like riskier growth-oriented stocks. It’s still recovering from a big drop from earlier in the year, when rising rates led investors to shed positions in tech and other risky assets.



“Bitcoin is labeled by some as a stateless currency, and it has indeed performed well in the past when there were geopolitical tensions, so we could expect some demand as a safe haven asset,” said Yuya Hasegawa, crypto market analyst at Japanese bitcoin exchange Bitbank.



However, “the change in the landscape made bitcoin fragile to the U.S. stock market volatility, so bitcoin investors may not be able to feel at ease until the situation at the Russia-Ukraine border starts to settle down,” he added.



<h2 class="wp-block-heading" id="h-crypto-winter-for-a-few-months">Crypto winter for a few months</h2>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/107005904-1643117857182-gettyimages-1237577245-widak-bitcoind220106_npTUo-1-1.jpg" alt="" class="wp-image-415262" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/107005904-1643117857182-gettyimages-1237577245-widak-bitcoind220106_npTUo-1-1.jpg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/107005904-1643117857182-gettyimages-1237577245-widak-bitcoind220106_npTUo-1-1-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/107005904-1643117857182-gettyimages-1237577245-widak-bitcoind220106_npTUo-1-1-160x90.jpg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>Artur Widak | NurPhoto | Getty Images</figcaption></figure>



The price of bitcoin is about 10% down for the year, according to Coin Metrics, and about 38% from its November all-time high.



With a rising rate environment, tech and growth stocks could remain in a chokehold for a while. That means if this is crypto winter, a term that refers to an extended bearish period, it could last for several months more.



“If we are in a bear market we’ll see another eight or nine months of sideways to down [movement], which is an opportunity for the tourists to leave the market and the real players to continue building this technology,” said Chris King, CEO and founder of Eaglebrook Advisors.



<h3 class="wp-block-heading" id="read-more-130-billion-wiped-off-crypto-markets-in-24-hours-as-bitcoin-ether-drop-to-multi-month-lows">Read more: <a href="https://www.cnbcafrica.com/2022/130-billion-wiped-off-crypto-markets-in-24-hours-as-bitcoin-ether-drop-to-multi-month-lows/">$130 billion wiped off crypto markets in 24 hours as bitcoin, ether drop to multi-month lows</a></h3>



Katie Stockton, founder of Fairlead Strategies, said a resistance level at $46,730 should remain intact this week. Support is near $37,360, but bitcoin doesn’t look in store for a near-term test, she added.



Seasoned crypto investors have been here before and are rarely spooked by extended low periods. Bitcoin has experienced only one crypto winter before: In 2018, its price crashed by about 80% from its then all-time high. The market has evolved significantly since then.



<h2 class="wp-block-heading" id="setting-the-stage-for-the-next-bull-market"><a></a>Setting the stage for the next bull market</h2>



Low periods are a time for the industry to clean up and build the infrastructure and applications that will make it easier for the next wave of newcomers in the next bull market. Between decentralized finance, nonfungible&nbsp;tokens, the metaverse and more, there’s plenty of interest in new sectors of crypto that go beyond bitcoin.



“Use cases in adoption are burgeoning,” said Rodrigo Vicuna, chief financial officer at Prime Trust. “We’re just beginning to scratch the surface of where a lot of blockchains are going.”



For example, interest — and money — in NFTs boomed in 2021. Most people still only see them as digital art, a concept that’s hard to grasp for many. People also overlook other potential uses for NFTs. For instance, an NFT of a house deed could provide a history of property ownership, while NFT medical records may offer patients a safe way to share information with doctors, Vicuna said.



<h3 class="wp-block-heading" id="read-more-the-federal-reserve-is-scaring-markets-with-the-triple-threat-of-policy-tightening">Read more: <a href="https://www.cnbcafrica.com/2022/the-federal-reserve-is-scaring-markets-with-the-triple-threat-of-policy-tightening/">The Federal Reserve is scaring markets with the triple threat of policy tightening</a></h3>



King noted that despite new interest in decentralized finance, or DeFi, its still too early and underdeveloped for it to take off. DeFi allows users to participate in lending and other financial activities using blockchain and do so without any middlemen.



“We’re very long DeFi in some of our strategies,” King said as an example. “DeFi is still speculative. The infrastructure is still being built, it’s still clunky and hard to use. “Bitcoin in 2013 through 2016 was hard to buy, but companies like Coinbase and Gemini made it easier. DeFi needs that onramp to improve it and make it less speculative. It just takes time.”



With the bitcoin cycle lengthening and returns diminishing, these other assets play a big role in ushering new entrants into crypto broadly and increasing adoption. Bitcoin itself hasn’t found its killer app yet — that is, the feature that makes it indispensable — King said, but increasing adoption will get it there.



“The most important thing that we follow and look at both from a short- and long-term perspective is adoption, it’s really all that matters,” King said. Like Facebook, Instagram and Uber, he said, “hype around these assets and the price going up led to more users joining the network, which is ultimately what we care about.”

107005904-1643117857182-gettyimages-1237577245-widak-bitcoind220106_npTUo-1-1

Here’s the outlook for bitcoin as geopolitical tensions heat up and interest rates rise

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/01/106885587-16214575182021-05-19t203912z_144465080_rc28jn9cpt2v_rtrmadp_0_crypto-currency-bitcoin-1.jpeg" alt="" class="wp-image-414803" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/01/106885587-16214575182021-05-19t203912z_144465080_rc28jn9cpt2v_rtrmadp_0_crypto-currency-bitcoin-1.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/01/106885587-16214575182021-05-19t203912z_144465080_rc28jn9cpt2v_rtrmadp_0_crypto-currency-bitcoin-1-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/01/106885587-16214575182021-05-19t203912z_144465080_rc28jn9cpt2v_rtrmadp_0_crypto-currency-bitcoin-1-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>A representations of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken May 19, 2021. Dado Ruvic | Reuters</figcaption></figure>



The cryptocurrency market had around $130 billion wiped off its value over the last 24 hours as major digital coins continued their multi-day sell-off.



<a href="https://www.cnbcafrica.com/quotes/btc=x/">Bitcoin</a> was last down around 4% at $33,755.57, according to Coin Metrics, while <a href="https://www.cnbcafrica.com/quotes/eth=x/">Ether</a> plunged 7% to $2,239.08. Earlier in the morning both fell to their lowest points since July and are each about 50% off their all-time highs.



Cryptocurrencies are moving in tandem with stocks, which have continued to fall since the beginning of the year and just came off of their worst week since March 2020. Investors have been selling risk assets like technology stocks as they prepare for tighter monetary policy from the U.S. Federal Reserve and higher interest rates.



“Bitcoin and crypto have been reacting much more violently, given the nature of the asset class and we’re likely to test 30-32K given current sentiment and momentum,” Vijay Ayyar, vice president of corporate development and international expansion, told CNBC by written message.



<h3 class="wp-block-heading" id="h-read-more-cryptocurrencies-tumble-with-bitcoin-falling-15-and-ether-down-20">Read more: <a href="https://www.cnbcafrica.com/2022/cryptocurrencies-tumble-with-bitcoin-falling-15-and-ether-down-20/">Cryptocurrencies tumble, with bitcoin falling 15% and ether down 20%</a></h3>



Ayyar said that if bitcoin holds above $30,000 on a longer time frame such as one week, then there could be a base formed at those levels before the market moves higher. It could be some time for the market to turn bullish given the lack of confidence across the spectrum, he added.



Several other analysts have said they see $30,000 as the next level of support for the cryptocurrency to test. However, analyst John Roque of 22V Research said bitcoin could fall even further. He said he too has been using $30,000 as a target but noted that the median historical bear market for bitcoin is down 78%. Bitcoin is currently about 50% off of its all-time high.



“A 78% decline from the bitcoin high of nearly $69,000 would imply a potential downside figure of about $15,000,” he said in a note Monday. “It’s probably safe to say that not one bitcoin bull has that figure in their model. To be sure, we don’t either… but we think it’s worth keeping in our back pocket in case we need it.”



Investors are also grappling with rising inflation. Bitcoin proponents have long suggested the digital coin is a hedge against inflation, but that theory has not held up for many newer investors. As institutional interest poured into bitcoin last year, there are more short-term investors in the crypto market valuing bitcoin like a tech stock than ever before. Analysts say there’s concern a more hawkish Fed could take the wind out of the crypto market’s sails.



Meanwhile, investors are also assessing the impact of further regulation on the cryptocurrency market. Last week, Russia’s central bank proposed banning the use and mining of cryptocurrencies.

106885587-16214575182021-05-19t203912z_144465080_rc28jn9cpt2v_rtrmadp_0_crypto-currency-bitcoin-1

$130 billion wiped off crypto markets in 24 hours as bitcoin, ether drop to multi-month lows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/106957228-1633755515333-gettyimages-1312493974-_48p7891_2021041460349748.jpeg" alt="" class="wp-image-412808" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/106957228-1633755515333-gettyimages-1312493974-_48p7891_2021041460349748.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/106957228-1633755515333-gettyimages-1312493974-_48p7891_2021041460349748-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/106957228-1633755515333-gettyimages-1312493974-_48p7891_2021041460349748-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>Bitcoin on display.
Chesnot | Getty Images</figcaption></figure>



<a href="https://www.cnbcafrica.com/quotes/btc=x/">Bitcoin</a> prices fell sharply on Friday, while ether prices also dived, wiping off nearly $150 billion from the crypto market.



Bitcoin fell about 15% and was trading around $36,000 late Friday, according to Coin Metrics. <a href="https://www.cnbcafrica.com/quotes/eth=x/">Ether</a>, the second-largest cryptocurrency by market cap, dived about 20% to trade around $2,500.



The declines in cryptocurrencies follow Wall Street losses on Thursday. The Nasdaq Composite lost 7.6% this week, and the S&amp;P 500 fell 5.7% for its third straight weekly decline.



Rising rates have prompted investors to shed positions in riskier assets. Earlier this week, the benchmark 10-year Treasury yield traded above 1.9%.



The Federal Reserve have also indicated it plans to begin reducing its balance sheet, as well as tapering of bonds and raising interest rates.



A common investment case for bitcoin is that it serves as a hedge against rising inflation as a result of government stimulus, but analysts are saying the risk is that a more hawkish Federal Reserve may take the wind out of bitcoin’s sails.



<h3 class="wp-block-heading" id="h-read-more-cryptocurrencies-tumble-with-bitcoin-falling-8-and-ether-down-9-in-the-last-24-hours">Read more: <a href="https://www.cnbcafrica.com/2022/cryptocurrencies-tumble-with-bitcoin-falling-8-and-ether-down-9-in-the-last-24-hours/">Cryptocurrencies tumble, with bitcoin falling 8% and ether down 9% in the last 24 hours</a></h3>



As yields pulled back later in the week, however, foreign exchange trading firm Oanda senior market analyst Edward Moya said it was “a little disappointing to not see bitcoin react more positively to the reversal in Treasury yields.”



Bitcoin prices have fallen sharply since November, tumbling more than 40% from a record high of about $69,000.



Some experts warn that the crypto market could be heading toward a downturn soon, as heightened regulatory scrutiny and intense price fluctuations dampened bitcoin’s prospects.



Regulators are cracking down on cryptocurrencies too. China completely banning all crypto-related activities and U.S. authorities are also clamping down on certain aspects of the market.



In a Thursday note, Oanda’s Moya had predicted that bitcoin could tumble below $40,000 as Russia’s central bank had proposed a ban over the use and mining of cryptocurrencies on Russian territory, claiming the digital currency poses a risk to “financial stability and monetary policy sovereignty.”



Russia is among the top three countries for bitcoin mining, he noted.



—&nbsp;CNBC’s Ryan Browne contributed to this report.



Correction: This article has been updated to reflect that bitcoin’s all-time high in November was about $69,000.

106957228-1633755515333-gettyimages-1312493974-_48p7891_2021041460349748

Cryptocurrencies tumble, with bitcoin falling 15% and ether down 20%

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/01/105575331-1542244532670gettyimages-1035974108.jpeg" alt="" class="wp-image-414747" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/01/105575331-1542244532670gettyimages-1035974108.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/01/105575331-1542244532670gettyimages-1035974108-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/01/105575331-1542244532670gettyimages-1035974108-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>A photo illustration of the digital Cryptocurrency, Litecoin (LTC), Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) are seen on September 13 2018 in Hong Kong, Hong Kong. Yu Chun Christopher Wong | S3studio | Getty Images</figcaption></figure>



Bitcoin prices fell sharply on Thursday night, while ether prices also dived, wiping off nearly $150 billion from the crypto market.



Bitcoin fell by nearly 8% in the last 24 hours, and was trading at $38,709 as of 1:42 a.m. ET, according to CoinDesk data.



Ether, the second-largest cryptocurrency by market cap, dived over 9% in the last 24 hours. It was trading at $2,853 as of 1:42 a.m. ET, after falling as low as $2,809.51 in the last 24 hours, according to CoinDesk.



About $147 billion was wiped off the entire cryptocurrency market in the past 24 hours, according to Coinmarketcap.com



The declines in cryptocurrencies follow Wall Street losses on Thursday. The Nasdaq was down almost 5% this week, and the S&amp;P 500 is into its third straight week of losses.



As the 10-year U.S. Treasury yield spiked earlier this week, rising rates have caused investors to shed their positions in riskier assets. Yields move opposite to prices.



The Federal Reserve have also indicated it plans to begin reducing its balance sheet, as well as tapering of bonds and raising interest rates.



<h3 class="wp-block-heading" id="h-read-more-bitcoin-holds-steady-below-50-000-in-volatile-weekend-trading">Read more: <a href="https://www.cnbcafrica.com/2021/bitcoin-holds-steady-below-50000-in-volatile-weekend-trading/">Bitcoin holds steady below $50,000 in volatile weekend trading</a></h3>



A common investment case for bitcoin is that it serves as a hedge against rising inflation as a result of government stimulus, but analysts are saying the risk is that a more hawkish Federal Reserve may take the wind out of bitcoin’s sails.



As yields pulled back later in the week, however, foreign exchange trading firm Oanda’s Senior Market Analyst Edward Moya said it was “a little disappointing to not see bitcoin react more positively to the reversal in Treasury yields.”



Bitcoin prices have fallen sharply since November, tumbling more than 40% from a record high of about $69,000.



Some experts warn that the crypto market could be heading toward a downturn soon, as heightened regulatory scrutiny and intense price fluctuations dampened bitcoin’s prospects.



Regulators are cracking down on cryptocurrencies too. China completely banning all crypto-related activities and U.S. authorities are also clamping down on certain aspects of the market.



In a Thursday note, Oanda’s Moya had predicted that bitcoin could tumble below $40,000 as Russia’s central bank had proposed a ban over the use and mining of cryptocurrencies on Russian territory, claiming the digital currency poses a risk to “financial stability and monetary policy sovereignty.”



Russia is among the top three countries for bitcoin mining, he noted.



—&nbsp;CNBC’s Ryan Browne contributed to this report.



— Correction: This article has been updated to reflect that bitcoin’s all-time high in November was about $69,000.

105575331-1542244532670gettyimages-1035974108

Cryptocurrencies tumble, with bitcoin falling 8% and ether down 9% in the last 24 hours

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/12/106984655-1638720074358-gettyimages-1294303237-01_jan_01_005.jpeg" alt="" class="wp-image-413986" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/12/106984655-1638720074358-gettyimages-1294303237-01_jan_01_005.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/106984655-1638720074358-gettyimages-1294303237-01_jan_01_005-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/106984655-1638720074358-gettyimages-1294303237-01_jan_01_005-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>Business Trends Graphs and charts 3d image Vertigo3d | iStock | Getty Images</figcaption></figure>



<a href="https://www.cnbcafrica.com/quotes/btc=x/">Bitcoin</a> prices bounced around on Sunday but remained below $50,000, with the volatility continuing a weekend of wild trading that sent the cryptocurrency tumbling more than 17% in just 24 hours.



The cryptocurrency traded at $48,776 around 7:45 p.m. ET Sunday on Wall Street, according to data from Coin Metrics.



Earlier in the day the cryptocurrency slid more than 2% as the cryptocurrency struggles to regain the $50,000 mark. On Saturday prices dropped to a low around $43,000, down from the $57,000 bitcoin traded at Friday morning.



Bitcoin’s sharp tumble follows Friday’s risk-off tone in the broader market. All three major averages finished Friday’s trading in the red and posted losses for the week amid fears over what the omicron Covid variant means for the ongoing economic recovery.



Investors ditched equities in favor of safer areas of the market, with the yield on the 10-year U.S. Treasury moving lower.



The Nasdaq Composite underperformed the Dow and S&amp;P 500 on Friday, with technology stocks getting hit especially hard. This selling extended to cryptocurrencies, with no fundamental reason prompting the sharp declines across the crypto universe.



<h3 class="wp-block-heading" id="h-read-more-bitcoin-tumbles-from-recent-high-as-cryptocurrencies-take-weekend-hit">Read more: <a href="https://www.cnbcafrica.com/2021/bitcoin-tumbles-from-recent-high-as-cryptocurrencies-take-weekend-hit/">Bitcoin tumbles from recent high as cryptocurrencies take weekend hit</a></h3>



“It looks like somebody likely got hit with a margin call yesterday and thus was ‘forced’ to sell,” noted Matt Maley, equity strategist at Miller Tabak. “The Bitcoin market tends to be much more “thin” on the weekends, so that probably exacerbated the decline. Once the dust had settled, the buyer came back in and it stabilized.”



Still, the selling over the last 48 hours builds on recent declines for bitcoin. The cryptocurrency officially entered bear market territory on Nov. 26, after dropping to a then seven-week low around $54,000.



Maley added that where bitcoin stabilized on Sunday — under the $50,000 level — is notable given that it’s below the trend line from the July lows.



“Whether it regains that level or not next week (once regular trading activity resumes) should be important to Bitcoin,” he said.



Bitcoin is now nearly 30% below its all-time high close to $69,000, which it hit in early November.



“Bitcoin is in ‘no man’s land’ right now and that does not seem to be changing anytime soon,” noted Ed Moya, senior market analyst at Oanda. “The long-term bullish case remains intact but prices seem poised to consolidate between $52,000 and $60,000,” he added.



<a href="https://www.cnbcafrica.com/quotes/eth=x/">Ether</a> also stabilized on Sunday, advancing about 1.5% to $4,176. On Saturday the cryptocurrency hit a low near $3,500, after plunging more than 16% between Friday and Saturday morning. Ether is the world’s second-largest cryptocurrency by market value.



— CNBC’s Weizhen Tan and Tanaya Macheel contributed reporting.

106984655-1638720074358-gettyimages-1294303237-01_jan_01_005

Bitcoin holds steady below $50,000 in volatile weekend trading

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/GettyImages-1304134980-820x461.jpeg" alt="" class="wp-image-413656" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/GettyImages-1304134980-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/GettyImages-1304134980-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/GettyImages-1304134980-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/GettyImages-1304134980-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/GettyImages-1304134980-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/GettyImages-1304134980-scaled.jpeg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>NFT non fungible tokens infographics on colorful abstract background. Pay for unique collectibles in games or art. Vector illustration.</figcaption></figure>



If earning money for playing videogames sounds futuristic, think again. With GameFi, it’s already become a reality.



Bitcoin, Ethereum, NFT’s, DeFi,– cryptocurrencies, blockchain, and the technologies that are built off them are no longer simply buzzwords, but fast entering the mainstream. Cynicism toward the current global financial system and the promise of possible profits has driven many more people towards exploring the possibilities offered by blockchain based services – and that applies to gaming as well.



GameFi, a portmanteau of “gaming” and “finance”, has become one of the hottest topics in the cryptocurrency industry over the last year – essentially allowing players to earn rewards in the form of tokens or NFT’s (Non-Fungible Token) as a financial reward or generating income.



An NFT is a cryptographic token on the blockchain that represents a unique item, which can be a piece of artwork, a digital videogame avatar or even physical property – essentially solving the ownership verification challenge in a digital space. “Think of it [an NFT] like owning 1 of a kind item in a game, or like “owning” an Instagram post” tweeted musician and artist Mike Shinoda of Linkin Park fame, who recently sold an NFT which contained a newly released song for over $10&nbsp;000.



Videogames are leveraging this space within the GameFi world by using NFT’s in the structure of the games themselves; for example, your character or avatar in a videogame could be an NFT – such is the case with EtherOrcs, a role-playing game in which all of the games 5050 unique characters are their own NFT’s, and where all of the code running the game itself takes place entirely on the blockchain. Players can purchase and trade these on a marketplace, as well as put them to work. 



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Looks like I’ve just joined the <a href="https://twitter.com/EtherOrcs?ref_src=twsrc%5Etfw">@EtherOrcs</a> 🔥 <a href="https://t.co/z32SFXV58j">pic.twitter.com/z32SFXV58j</a>&mdash; Mike Shinoda (@mikeshinoda) <a href="https://twitter.com/mikeshinoda/status/1448030628528541699?ref_src=twsrc%5Etfw">October 12, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



 These individual characters all have worth by virtue of their uniqueness and scarcity, but like many other NFT-based games, leverage another aspect of the GameFi space; play-to-earn. By completing tasks and objectives within a game, users can be rewarded with further NFT’s or more commonly, in-game tokens, which can be exchanged for other cryptocurrencies or fiat currencies.



 Fundamentally, the main objective is still enjoyment. “The biggest take away from this “NFT 2021” moment that I don’t see being talked about is “fun”” tweeted Vayner Media CEO and NFT proponent Gary Vaynerchuck. “It’s just “fun” and a lot of adults need more “fun” board games were a big part of culture 3-4 decades ago”.



 While the popularity of NFT-based play-to-earn gaming is in relative infancy, blockchain based gaming has been around almost as long as the cryptocurrencies they are built on, with games like Minecraft having servers for years with built-in bitcoin integrations. However, DeFi (Decentralised Finance) through other cryptocurrencies and tokens such as Ethereum, which allow for smart contracts, lower fees and faster execution.



Early-adoption or no, the NFT gaming space offers massive opportunity, and major players are taking notice, with venture capital firms and game developers partnering up to explore and develop opportunities, and major gaming companies such as Ubisoft having launched an incubation program for crypto-based games which has been responsible for some of the most popular play-to-earn games on the market today, including the incredibly popular Axie Infinity, which reports more than 1.8 million daily users. “A friend of mine stopped working recently and told me about this game that they play to earn some extra cash online” says Jamaine Krige, who plays several different mobile-based NFT games. “I figured I was playing games anyway so I might as well be compensated for the time I’m spending.” 



While cryptocurrencies themselves have become codified and accepted, the opportunities offered by rapid developments in the space are growing, and GameFi looks to be one frontier about to massively expand.

NFT non fungible tokens infographics on colorful abstract background. Pay for unique collectibles in games or art. Vector illustration.

Game to earn – how the blockchain is transforming the face of videogames

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/106950027-16330001642021-09-30t110408z_12355870_rc2b0q9hz3vr_rtrmadp_0_usa-fed-digital-currency.jpeg" alt="" class="wp-image-413505" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/106950027-16330001642021-09-30t110408z_12355870_rc2b0q9hz3vr_rtrmadp_0_usa-fed-digital-currency.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/106950027-16330001642021-09-30t110408z_12355870_rc2b0q9hz3vr_rtrmadp_0_usa-fed-digital-currency-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/106950027-16330001642021-09-30t110408z_12355870_rc2b0q9hz3vr_rtrmadp_0_usa-fed-digital-currency-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>Representations of virtual currency Bitcoin are placed on U.S. Dollar banknotes in this illustration taken May 26, 2020. Dado Ruvic | Reuters</figcaption></figure>



U.S. Deputy Treasury Secretary Wally Adeyemo said that the dollar will continue to be the world’s dominant currency despite increasing interest in cryptocurrencies.



“One of the things that we know is that digital assets present an opportunity in lots of ways for the economy, but potentially it presents challenges,” Adeyemo told CNBC’s Hadley Gamble on Tuesday in Abu Dhabi, the United Arab Emirates.



“We know that digital assets have the ability to be used by those who want to illicitly move money through the system in a way that doesn’t touch the dollar and that we can’t see as easily. But we do think that ultimately working together with countries around the world, we can address this risk by calling on the creators of digital assets to follow the rules around anti-money laundering more closely.”



“Ultimately the thing that is going to drive the dollar’s position in the world are the decisions we make in America about investing in our economy. The reason that people are involved in the dollar-based economy … is because they want to invest in America,” he continued.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/bitcoin-is-inches-away-from-reaching-60000-amid-etf-speculation/">Bitcoin tops $60,000 for first time in six months as traders bet on ETF approval</a></h3>



Adeyemo said it was because of policy decisions, such as the $1 trillion infrastructure package signed into law on Monday, that would help to “unlock the potential” of the U.S. economy and create investment opportunities for other governments.



“As our economy grows, it is an opportunity for the global economy to grow and as that happens, the dollar will remain the dominant currency in the world as well,” he said.



His view echoed comments made by St. Louis Federal Reserve President James Bullard earlier this year, who dismissed bitcoin and other digital assets as a serious threat to the dollar’s position as the world’s reserve currency.



<h2 class="wp-block-heading" id="h-sanctions-policy"><a></a>Sanctions policy</h2>



Russian Central Bank Governor Elvira Nabiullina said last week that it would launch a prototype of the digital ruble platform early next year, according to Reuters. Nabiullina said Russia would undergo a pilot test before making a final decision on the launch of the digital currency.



Speaking to CNBC in early June, Nabiullina said she expected digital currencies to play a pivotal role in the future of financial systems as the economy moves online.



Many central banks around the world are developing sovereign digital currencies, which advocates say could promote financial inclusion and make cross-border transactions easier.



When asked whether the prospect of a digital ruble could make U.S. sanctions less effective, Adeyemo replied: “We believe that even if a digital ruble or other digital currencies come into place, there will still be scope for our sanctions to have an impact on their economies simply because the global economy is still inter-connected.”



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/bitcoin-drops-nearly-7-toward-60000-as-major-cryptocurrencies-plunge/">Bitcoin drops nearly 7% toward $60,000 as major cryptocurrencies plunge</a></h3>



“Companies in Russia still do a great deal of business around the world. A lot of that business is done in dollars, it is done with American financial institutions and that is because the American economy remains the biggest economy in the world,” he said.



“As long as that is the case, and as long as we make the investments that are needed, we are still going to have the ability to use our sanctions regime to make sure that we prevent the thing that it was created to prevent, which is illicit finance through the system and also to hold people accountable who take steps that are not considered in our national security.”



Washington has imposed sanctions on Russia for several reasons in recent years, from the suspected poisoning of opposition politicians to election interference and cyberattacks.



Adeyemo’s comments add to a report in October from the Treasury which there could be some impact on U.S. sanctions from cryptocurrencies. He reportedly told a Senate committee last month: “The advent of cryptocurrencies makes it harder for sanctions to be effective.”



— CNBC’s Abigail Ng contributed to this report.



Correction: This story has been updated to remove an incorrect reference to where U.S. Deputy Treasury Secretary Wally Adeyemo was speaking.

106950027-16330001642021-09-30t110408z_12355870_rc2b0q9hz3vr_rtrmadp_0_usa-fed-digital-currency

U.S. sanctions will still have an impact despite the rise of crypto, Treasury’s Adeyemo says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/106885587-16214575182021-05-19t203912z_144465080_rc28jn9cpt2v_rtrmadp_0_crypto-currency-bitcoin.jpeg" alt="" class="wp-image-413479" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/106885587-16214575182021-05-19t203912z_144465080_rc28jn9cpt2v_rtrmadp_0_crypto-currency-bitcoin.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/106885587-16214575182021-05-19t203912z_144465080_rc28jn9cpt2v_rtrmadp_0_crypto-currency-bitcoin-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/106885587-16214575182021-05-19t203912z_144465080_rc28jn9cpt2v_rtrmadp_0_crypto-currency-bitcoin-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>A representations of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken May 19, 2021. Dado Ruvic | Reuters</figcaption></figure>



<a href="https://www.cnbcafrica.com/quotes/btc=x/">Bitcoin</a> and other cryptocurrencies fell sharply on Tuesday retreating from near-record highs.



Bitcoin fell toward $60,000 during late morning trade Singapore time, according to CoinDesk data. It recovered some of those loses and was trading at around $60,600.10 at 2:42 p.m. Singapore (1:42 a.m. ET) , down nearly 8% from 24 hours before.



<a href="https://www.cnbcafrica.com/quotes/eth=x/">Ether</a>, meanwhile, fell nearly 8% to $4,310.96.



The impetus behind the price movement was not clear.



China’s state planner, the National Development and Reform Commission (NDRC), said during a press conference Tuesday that it will continue to clean up virtual currency mining in the country.



Earlier this year, China cracked down on bitcoin mining leading to an exodus of miners. Mining is the energy-intensive process which both creates new coins and maintains a log of all transactions of existing digital tokens. 



Beijing is concerned about the amount of energy being used by mining.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/bitcoin-is-inches-away-from-reaching-60000-amid-etf-speculation/">Bitcoin tops $60,000 for first time in six months as traders bet on ETF approval</a></h3>



Mining “causes large energy consumption and carbon emission. It has no active impact to lead industry development or scientific progress,” NDRC spokesperson Meng Wei said on Tuesday, according to a CNBC translation of her Mandarin comments.



“Regulating cryptocurrency mining activities has significant meaning in optimizing our industrial structure, saving energy and cutting emission, achieving carbon emission and neutrality goals.”



Chinese President Xi Jinping said last year that China aims to achieve carbon neutrality by the year 2060.



The NDRC said it will focus on state-owned companies involved in cryptocurrency mining. It also said it is considering imposing “punitive electricity prices” against those participating in cryptocurrency mining activities but paying a residential electricity price.



China’s authorities have been focusing on wiping out bitcoin mining since earlier this year.



Negative crypto-related comments from Chinese authorities have often led to a sell-off in digital coins, even if those comments are not overly new.



<h2 class="wp-block-heading" id="h-pullback-from-record-highs"><a></a>Pullback from record highs</h2>



The retreat in cryptocurrency prices also comes as many of them hit all-time highs in November.



Bitcoin reached a record high of $68,990.90 on Nov. 10 with ether following suit on Nov. 11.



“I think we’re seeing a healthy pullback after a 7 week rally from 40K to 69K, which is normal in an upward trend,” Vijay Ayyar, head of Asia Pacific at cryptocurrency exchange Luno, told CNBC via email.

106885587-16214575182021-05-19t203912z_144465080_rc28jn9cpt2v_rtrmadp_0_crypto-currency-bitcoin

Bitcoin drops nearly 7% toward $60,000 as major cryptocurrencies plunge

<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/106943534-GettyImages-1234636440.jpeg" alt="" class="wp-image-413313" width="798" height="449" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/106943534-GettyImages-1234636440.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/106943534-GettyImages-1234636440-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/106943534-GettyImages-1234636440-160x90.jpeg 160w" sizes="(max-width: 798px) 100vw, 798px" /><figcaption>Representation of Ethereum cryptocurrency is seen in this illustration photo taken in Sulkowice, Poland on August 12, 2021. Jakub Porzycki/NurPhoto | Getty Images</figcaption></figure>



Cryptocurrencies are starting the week on a positive note.



Ether, the world’s second-largest digital coin, surged more than 4% in 24 hours Monday to hit a new all-time high above $4,700. The token was last trading at a price of $4,740, according to Coin Metrics data.



Ether is the cryptocurrency of the <a href="https://www.cnbcafrica.com/quotes/eth=x/">Ethereum</a> blockchain. In the crypto market, the terms ether and ethereum are often interchangeable.



<a href="https://www.cnbcafrica.com/quotes/btc=x/">Bitcoin</a>, meanwhile, climbed 7% to a price of $66,250, inching back toward a record high above $66,900 set in late October.



The reason for the move wasn’t clear. Cryptocurrencies are known for their volatile price swings, with moves of up to 20% higher or lower relatively common.



Mikkel Morch, executive director at crypto hedge fund&nbsp;ARK36, said a $70,000 price for bitcoin now “seems imminent.”



“Importantly, the uptick doesn’t seem to be leverage-driven but rather results from the increased demand on the spot market where there’s currently very little sell-side liquidity,” Morch said in an emailed note Monday.



<h2 class="wp-block-heading" id="h-defi"><a></a>DeFi</h2>



It comes amid growing excitement about DeFi, or decentralized finance, a new trend in the crypto market which seeks to build financial applications like lending and trading on the blockchain.



Ethereum is a key player in DeFi. Some of the biggest DeFi services, including decentralized exchange Uniswap and lending platform Aave, run on the Ethereum network.



Still, DeFi has caught the attention of regulators lately, and experts have warned a crackdown is imminent.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/ethereum-price-rises-after-elon-musk-confirms-he-owns-the-cryptocurrency/">Ethereum price rises after Elon Musk confirms he owns the cryptocurrency</a></h3>



Ethereum is also the backbone for many nonfungible tokens, or NFTs, which are like digital receipts that keep a record of ownership for rare items like online art.



They have seen a boom in activity this year, with one token auctioned at Christie’s selling for a record $69 million.



Still, ethereum is up against some fierce competition. Rival tokens like solana and cardano have surged in price this year.



<h2 class="wp-block-heading"><a></a>Ethereum 2.0</h2>



Ethereum is undergoing a major upgrade which investors hope will make the network faster and more environmentally friendly.



Bitcoin and other cryptocurrencies have been criticized for their swelling consumption of energy.



The latest step in Ethereum network’s overhaul arrived late last month, when an upgrade called Altair went live.



Meanwhile, bitcoin jumped to a new all-time high of nearly $67,000 last month, following the listing of the first U.S. bitcoin futures exchange-traded fund.



Crypto bulls praised the move as another sign of growing acceptance for digital assets on Wall Street.



Alternative digital currencies often rally after significant climbs in bitcoin’s price, as investors search for returns elsewhere in the market.

106943534-GettyImages-1234636440

Ethereum hits new all-time high, bitcoin inches toward record as cryptocurrencies rally

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106928219-1629130755312-gettyimages-1234311531-sindeyev-notitle210729_np12K.jpeg" alt="" class="wp-image-411485" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106928219-1629130755312-gettyimages-1234311531-sindeyev-notitle210729_np12K.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106928219-1629130755312-gettyimages-1234311531-sindeyev-notitle210729_np12K-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106928219-1629130755312-gettyimages-1234311531-sindeyev-notitle210729_np12K-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>A visual representation of bitcoin.
STR | NurPhoto via Getty Images</figcaption></figure>



Shares of the first U.S. bitcoin-linked exchange-traded fund rose in their trading debut Tuesday.



The ProShares Bitcoin Strategy ETF, ticker “BITO,” jumped 4.8% to close at $41.94. The fund tracks CME <a href="https://www.cnbcafrica.com/quotes/btc=x/">bitcoin</a> futures, or contracts speculating on the future price of bitcoin, rather than the crypto itself.



That means investors in the ETF should expect the price and performance of the shares to differ somewhat from the price of bitcoin itself. This isn’t ideal for existing investors; many of them take a long view on cryptocurrencies and had hoped for an ETF that would track physical bitcoin that investors could buy and hold.



The price of bitcoin jumped more than 4% Tuesday to $64,206.51, according to Coin Metrics, about 1% from its all-time high from April 14 of $64,899. Bitcoin futures gained about 4% as well.



The launch highlights the remarkable growth of the ETF industry, Will Hershey, CEO of Roundhill Investments, told CNBC.



“Trading volumes are exceptional,” Hershey said of BITO’s day one trading activity. “BITO has traded in excess of $700 million notional. That puts its first day well ahead of retail ETF favorites like BUZZ and ARKX when compared to their respective launch days earlier this year.”



<h3 class="wp-block-heading" id="h-read-more-first-bitcoin-futures-exchange-traded-fund-starts-trading-tuesday-what-to-know-before-adding-it-to-your-portfolio">Read more: <a href="https://www.cnbcafrica.com/2021/first-bitcoin-futures-exchange-traded-fund-starts-trading-tuesday-what-to-know-before-adding-it-to-your-portfolio/">First bitcoin futures exchange-traded fund starts trading Tuesday. What to know before adding it to your portfolio</a></h3>



He noted that when the SPDR S&amp;P 500&nbsp;ETF debuted in 1993 it traded about $40 million on its first day. By the end of the trading session BITO had traded about $984 million in volume.



ProShares is the eighth-biggest ETF provider by assets, according to ETDB.com. The firm is known for its funds that use leverage to track moves in certain indexes multiplied by a certain amount. ProShares executives rang the opening bell at the NYSE, where the ETF trades. The fund has an expense ratio of 0.95%.



The crypto industry has been longing for a bitcoin-related ETF for many years. In about 2017, asset managers began applying to launch spot bitcoin ETFs but their proposals were rejected by the Securities and Exchange Commission, which maintained none were able to prove market resistance to manipulation. The rush of applications for futures-based ETFs came this year shortly after Chairman Gary Gensler took the helm of the agency.



“What you have here is a product that’s been overseen for four years by the U.S. federal regulator CFTC, and that’s being wrapped inside of something within our jurisdiction called the Investment Company Act of 1940, so we have some ability to bring it inside of investor protection,” Gensler said of the new ETF on CNBC’s “Squawk on the Street” on Tuesday. “It’s still a highly speculative asset class and listeners should understand that underneath this, it still has that same aspect of volatility and speculation.”



Some argue the impact of an ETF, particularly one tied to futures contracts, is lessened by adoption of crypto by companies and fintechs. Investors have many ways to get indirect exposure to bitcoin without actually owning it, through institutional-grade funds, financial apps like PayPal and Square’s CashApp, or crypto-related equities like Coinbase and mining stocks.



“The launch of the first bitcoin-linked ETF in the U.S. will bolster the broader crypto market and help an entirely new investor class experience the benefits of bitcoin as a legitimate asset,” said Anthony Bertolino, VP of growth at iTrustCapital. “However, a derivatives-based bitcoin ETF is not where we want to be long-term. One of the most attractive aspects of bitcoin is that it’s a bearer asset with a highly liquid 24/7 spot market. Investors will almost certainly come to desire a spot based, physically backed bitcoin ETF and 10 years from now, I would even expect some of the bitcoin ETFs to allow physical redemption for those that want it.”

106928219-1629130755312-gettyimages-1234311531-sindeyev-notitle210729_np12K

First bitcoin futures ETF rises more than 4% in trading debut on the NYSE

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/106957228-1633755515333-gettyimages-1312493974-_48p7891_2021041460349748.jpeg" alt="" class="wp-image-412808" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/106957228-1633755515333-gettyimages-1312493974-_48p7891_2021041460349748.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/106957228-1633755515333-gettyimages-1312493974-_48p7891_2021041460349748-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/106957228-1633755515333-gettyimages-1312493974-_48p7891_2021041460349748-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>Bitcoin on display.
Chesnot | Getty Images</figcaption></figure>



The first U.S. <a href="https://www.cnbcafrica.com/quotes/btc=x/">bitcoin</a> futures exchange-traded fund will launch on Tuesday, a milestone for the cryptocurrency industry, and others may soon follow.



The long-awaited ProShares ETF will offer exposure to bitcoin futures contracts — agreements to buy or sell the asset later for an agreed-upon price — rather than bitcoin itself.



“The ETF presents a disruption to what is available in the marketplace today,” said Karan Sood, CEO and managing director of Cboe Vest, a financial advisory platform in McLean, Virginia. “That’s what investors are excited about.”



Currently, investors may buy bitcoin through digital currency exchanges, but there are safety concerns as some worry about hackers or losing so-called private keys, which provide access to their assets.    



Another option, bitcoin trusts, offer an easier way to add bitcoin to portfolios through brokerage or retirement accounts. But these assets may come with higher fees and values may not mirror the digital currency price changes.



While bitcoin futures ETFs don’t offer what the industry eventually wants — funds that invest directly in digital currency — it provides another choice as companies vie for the green light from the Securities and Exchange Commission to launch regular bitcoin ETFs.



<a href="https://www.cnbcafrica.com/2021/bitcoin-is-inches-away-from-reaching-60000-amid-etf-speculation/">The price of bitcoin jumped more than 2% on Monday to $61,958.24</a>, according to Coin Metrics.



There are a few things prospective investors need to consider before piling money into bitcoin futures ETFs, financial experts say.



Although the funds may have a “very high correlation” with bitcoin, the asset won’t mirror values of the digital currency because it tracks the price of future contracts, Sood said. 



Moreover, it costs more to own funds over individual assets. But some investors are willing to pay more for an ETF’s “institutional level liquidity, custody and execution” versus managing the currency themselves, he said.



Still, some advisors see digital currencies as a speculative asset and say betting on prices of futures contracts can be unpredictable.&nbsp;&nbsp;



“It’s just the ultimate risk that you would ever take,” said certified financial planner Jordan Benold, partner at Benold Financial Planning in Prosper, Texas, explaining how the volatility of bitcoin paired with futures contracts may be a gamble. “You’re really into high-stakes poker at this point.”



Bitcoin’s value comes from supply and demand factors of an “unstable and unpredictable group of market participants,” making it inappropriate for an investment portfolio, said CFP Anthony Watson, founder and president of Dearborn, Michigan-based Thrive Retirement Specialists.



However, if someone’s retirement savings and other goals are on track, and they have “fun money” they want to invest in bitcoin futures, some advisors wouldn’t discourage a minimal amount of experimenting.



“I would just say do it on a very, very small scale,” Benold said. “Dip your toe into the water.”

First bitcoin futures exchange-traded fund starts trading Tuesday. What to know before adding it to your portfolio

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/106892639-1622836826337-bit-1.jpg" alt="" class="wp-image-412818" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/106892639-1622836826337-bit-1.jpg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/106892639-1622836826337-bit-1-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/106892639-1622836826337-bit-1-160x90.jpg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>Art at the cryptocurrency conference Bitcoin 2021 Convention at the Mana Convention Center in Miami on June 4, 2021.
Marco Bello | AFP | Getty Images</figcaption></figure>



<a href="https://www.cnbcafrica.com/quotes/btc=x/">Bitcoin</a> climbed above $60,000 Friday, pushing the digital coin further toward its all-time high, as traders speculated U.S. regulators would clear the first bitcoin futures exchange-traded fund. 



The world’s biggest cryptocurrency surged as high as $60,314, notching its highest level since Apr. 18. Bitcoin was last trading 4% higher in the last 24 hours, at a price of $59,945, according to Coin Metrics data.



Traders are optimistic about the chances of the U.S. Securities and Exchange Commission giving the green light to the first bitcoin futures exchange-traded fund, according to analysts.



The ProShares Bitcoin Strategy ETF is&nbsp;scheduled to debut at the New York Stock Exchange&nbsp;on Tuesday, and experts believe the SEC unlikely to object to the product.



The&nbsp;<a href="https://www.cnbc.com/quotes/CME" target="_blank" rel="noreferrer noopener">CME</a>&nbsp;bitcoin futures contract for October was last trading at $60,570, up about 4%.



Approval of an ETF that gives mainstream investors exposure to bitcoin would be a landmark for the crypto industry, which has long been pushing for greater acceptance of digital assets on Wall Street.



“The ETF news is being priced in with the market expecting an approval on Monday. This is driving the price up,” Vijay Ayyar, head of Asia Pacific at cryptocurrency exchange Luno, told CNBC.



<h3 class="wp-block-heading" id="h-read-more-crypto-trading-thrives-in-nigeria-despite-official-disapproval">Read more:<a href="https://www.cnbcafrica.com/2021/crypto-trading-thrives-in-nigeria-despite-official-disapproval/"> Crypto trading thrives in Nigeria despite official disapproval</a></h3>



However, Ayyar cautioned that a rejection of ProShares’ product could send bitcoin sharply lower.



Mikkel Morch, executive director at digital asset hedge fund ARK36, said bitcoin could rally above its near-$65,000 all-time high from April, but warned the cryptocurrency may subsequently undergo a “short-term pullback.”



“Investors should be aware that the hopes for a sustained rally above the $60K barrier and further through the previous all-time high may as well turn into ‘buy the rumour, sell the news’ scenario,” Morch said.



Not all cryptocurrencies got a boost from the ETF news Friday. Ether, the second-largest coin, rose 0.5% to $3,804 on spot exchanges. However, XRP and ada were both down about 2%.



Bitcoin and other cryptocurrencies have been on a wild ride this year. The number one digital coin hit an all-time high above $64,000 in April, before slumping sharply on the back of a crackdown on the crypto market in China. It’s since staged a comeback and has more than doubled in price so far this year.



Regulators have been taking a tougher line on crypto this year, as interest from investors has surged. The industry has been putting up a fight though, with&nbsp;Coinbase&nbsp;on Thursday&nbsp;calling on the U.S. to create a new regulator&nbsp;to oversee digital assets.



Earlier this week, Bank of England Deputy Governor Jon Cunliffe&nbsp;warned cryptocurrencies could spark a global financial crisis&nbsp;of similar magnitude to the 2008 crash.



“When something in the financial system is growing very fast, and growing in largely unregulated space, financial stability authorities have to sit up and take notice,” Cunliffe said in a speech Wednesday.

Bitcoin tops $60,000 for first time in six months as traders bet on ETF approval

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106928219-1629130755312-gettyimages-1234311531-sindeyev-notitle210729_np12K.jpeg" alt="" class="wp-image-411485" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106928219-1629130755312-gettyimages-1234311531-sindeyev-notitle210729_np12K.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106928219-1629130755312-gettyimages-1234311531-sindeyev-notitle210729_np12K-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106928219-1629130755312-gettyimages-1234311531-sindeyev-notitle210729_np12K-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>A visual representation of bitcoin.
STR | NurPhoto via Getty Images</figcaption></figure>



Jamie Dimon, JPMorgan Chase chairman and CEO, isn’t a fan of <a href="https://www.cnbcafrica.com/quotes/btc=x/">bitcoin</a>, the largest cryptocurrency by market value.



“I personally think that bitcoin is worthless,” Dimon said during an Institute of International Finance event on Monday, CNBC Pro reported.



But, “I don’t want to be a spokesperson — I don’t care. It makes no difference to me,” he said. “Our clients are adults. They disagree. That’s what makes markets. So, if they want to have access to buy yourself bitcoin, we can’t custody it but we can give them legitimate, as clean as possible, access.”



He’s held true to that statement: In February 2019, JPMorgan said it would roll out a digital currency called JPM Coin, and in October 2020, the firm created a new unit for blockchain projects. In August, it started giving its wealth management clients access to crypto funds, CNBC reported.



For his part, however, Dimon has held firm in his anti-crypto outlook.



Recently, he told Axios CEO Jim VandeHei that bitcoin has “no intrinsic value.” And although he thinks bitcoin will be around long term, “I’ve always believed it’ll be made illegal someplace, like China made it illegal, so I think it’s a little bit of fool’s gold.”



<h3 class="wp-block-heading" id="h-read-more-jamie-dimon-says-jpmorgan-is-hoarding-cash-because-very-good-chance-inflation-is-here-to-stay">Read more: <a href="https://www.cnbcafrica.com/2021/jamie-dimon-says-jpmorgan-is-hoarding-cash-because-very-good-chance-inflation-is-here-to-stay/">Jamie Dimon says JPMorgan is hoarding cash because ‘very good chance’ inflation is here to stay</a></h3>



Dimon also told VandeHei that he thinks “regulators are going to regulate the hell out of it.”



He may be right: Recently, the U.S. government has had a heightened focus on regulating cryptocurrency markets. On Friday, Bloomberg reported that the Biden administration is weighing an executive order that would direct federal agencies to study and offer recommendations on the crypto market.



However, though increased regulation may happen, Federal Reserve Chairman Jerome Powell clarified at the end of September that he has no intention to ban bitcoin in the U.S.



Some financial experts contend that well-thought-out regulation would be beneficial in the U.S. “If people want crypto to become more of a mainstream asset, then I think [regulation is] a necessary first step,” Anjali Jariwala, certified financial planner, certified public accountant and founder of Fit Advisors, previously told CNBC Make It.



However, cryptocurrency supporters are wary of further regulation — they worry that certain regulatory framework may stifle crypto innovation in the U.S. and push business overseas.



Bitcoin is currently trading at around $57,501, according to CoinMarketCap, with a market value of more than $1 trillion.

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U.S. sanctions will still have an impact despite the rise of crypto, Treasury’s Adeyemo says

Bitcoin drops nearly 7% toward $60,000 as major cryptocurrencies plunge

Ethereum hits new all-time high, bitcoin inches toward record as cryptocurrencies rally

First bitcoin futures ETF rises more than 4% in trading debut on the NYSE

First bitcoin futures exchange-traded fund starts trading Tuesday. What to know before adding it to your portfolio

Bitcoin tops $60,000 for first time in six months as traders bet on ETF approval

Jamie Dimon says bitcoin is ‘worthless’

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Crypto

Bitcoin sanctions could be next, but most Russians won’t care

Bitcoin jumps 13% as Russia-Ukraine conflict continues and U.S. imposes further sanctions

The case for bitcoin as ‘digital gold’ is falling apart

Next bitcoin bull run won’t happen until end 2024, says top crypto exchange co-founder

Here’s the outlook for bitcoin as geopolitical tensions heat up and interest rates rise

$130 billion wiped off crypto markets in 24 hours as bitcoin, ether drop to multi-month lows

Cryptocurrencies tumble, with bitcoin falling 15% and ether down 20%

Cryptocurrencies tumble, with bitcoin falling 8% and ether down 9% in the last 24 hours

Bitcoin holds steady below $50,000 in volatile weekend trading

Game to earn – how the blockchain is transforming the face of videogames

U.S. sanctions will still have an impact despite the rise of crypto, Treasury’s Adeyemo says

Bitcoin drops nearly 7% toward $60,000 as major cryptocurrencies plunge

Ethereum hits new all-time high, bitcoin inches toward record as cryptocurrencies rally

First bitcoin futures ETF rises more than 4% in trading debut on the NYSE

First bitcoin futures exchange-traded fund starts trading Tuesday. What to know before adding it to your portfolio

Bitcoin tops $60,000 for first time in six months as traders bet on ETF approval

Jamie Dimon says bitcoin is ‘worthless’

News Tips

Advertise With Us

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