Citron Targets Coinbase for Shorting Amid Bitcoin Booming and Record ETF Trading
Summary:
Citron, an investment firm founded by a prominent Wall Street trader, plans to short Coinbase stock following technical issues during recent Bitcoin price fluctuations. Meanwhile, the U.S. government disposed of nearly $1 billion of Bitcoin confiscated from Bitfinex in 2016. Spot Bitcoin ETFs witnessed a record-breaking day with massive trading volumes and inflows. Amid these occurrences, Bitcoin's price surpassed $60,000 for the first time in over two years.
In a bold move, a well-known Wall Street trader's investment firm has set its sights on shorting Coinbase stocks. This comes as the U.S. government liquidates almost $1 billion worth of Bitcoin, which was confiscated from Bitfinex in 2016. On a related note, spot Bitcoin exchange-traded funds (ETFs) experienced a bumper sales day, setting trading volume records while attracting unprecedented net inflows. Citron, the investment firm helmed by a noted Wall Street short-seller, has directed its focus to the shares of Coinbase after the crypto exchange suffered technical glitches amidst the unpredictable Bitcoin price flux earlier this week.
Users of the Coinbase exchange were left in a panic after a brief system failure on February 28, seeing their account balances reduced to zero and obstructed digital asset transactions. Coinbase quickly reassured their clients that all balances remained secure, and the problem was rectified within a few hours. Ever since the endorsement of several spot Bitcoin ETFs by the U.S. Securities and Exchange Commission in January, Coinbase has risen to become the globe's fourth largest publicly-listed exchange. With Bitcoin breaking past a $60,000 valuation for the first time in over two years, the appeal of digital assets has skyrocketed in the past week.
The U.S. government recently transferred Bitcoin worth $922 million from two cryptocurrency wallets that received Bitfinex funds back in 2016. This coincidentally occurred on the same day Bitcoin busted through the $60,000 barrier for the first time in more than two years on February 28. The government had seized the funds four years earlier following Bitfinex falling victim to a massive cyber theft, with the stolen Bitcoin amounting to over 119,754 BTC, valued currently above $7.4 billion.
Spot Bitcoin ETFs, based in the US, set an all-time high for trading volume on a single day, blowing past the previous record by more than 1.5 times. Ten ETFs accumulated a staggering $7.69 billion in trade on February 28, according to data released by James Seyffart, Bloomberg ETF analyst. BlackRock's iShares Bitcoin Trust was responsible for 43.5% of the total, boasting a trading volume of $3.35 billion, twice the figure of its last record.
This record-breaking trading day unfolded as Bitcoin enthusiastically rallied over 10% to see more than a two-year peak at $64,000. Readers must not consider this report as investment advice or recommendations, as every investment action carries its own risk and should be undertaken only after conducting due diligence and individual research.
Published At
2/29/2024 10:12:08 PM
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