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Peter Davis

An writer at FOMOdrive

  • Dec 11, 2023
  • 3 min read

Bitcoin suddenly fell below $41,000 - what's happening?

On Monday, Bitcoin experienced a sharp decline, dropping by more than $3,000 (a decrease of 7% or more).

Investments in crypto funds have seen a decrease in growth.

Support for the Russian ruble is being discontinued by Binance P2P.

161 addresses from the US sanctions list have been blocked by Tether.

On December 11, Bitcoin experienced its biggest drop in nine months, which some experts attributed to the strong US labor market data released on Friday. This BTC decline could be the beginning of altcoin season.

VDX notes that the improving labor market has somewhat diminished expectations for a Federal Reserve rate reduction in the beginning of next year. Additionally, gold prices dropped in response to an increase in the US dollar index.

It is believed by Metalpha that the potential for a continuation of the correction exists due to the US inflation data being published this week on Tuesday and the Federal Reserve meeting taking place on Wednesday.

CoinShares reported that investments in crypto funds rose by $43 million last week, marking the 11th consecutive week of inflows. Of this, $20 million was invested in Bitcoin, $10 million in Ethereum, $3 million in Solana, and $9 million in funds that allow shorting Bitcoin.

The recent surge in prices has caused a notable decrease in investments in crypto funds compared to the weeks prior. Additionally, there has been a considerable amount of short interest in BTC as some investors anticipate a potential drop in prices. On the other hand, CoinShares reports that the week saw the largest ever weekly inflow of $126 million into shares of blockchain companies.

Mishaboar, a board member of the Dogecoin Foundation and a user of the X network, has cautioned against fraudulent crypto projects that are pretending to be the popular memecoin, DOGE. He has expressed his concern over the increasing number of tokens that are masquerading as Dogecoin.

Tether, the issuer of the largest stablecoin USDT, has announced its voluntary cooperation with the US authorities. The company has blocked 161 wallets associated with people and organizations under sanctions in its smart contract, of which 150 were empty.

Paolo Ardoino, CEO of Tether, acknowledged the difficulties in verifying the company's reserves accurately, yet he guaranteed that they are more than 100%.

The US National Vulnerability Database (NVD) has augmented its list of cybersecurity threats with the inclusion of BTC inscriptions generated by the Bitcoin Ordinals protocol.

From February 2024, users of the Binance P2P peer-to-peer platform will no longer be able to exchange rubles, as the Binance cryptocurrency exchange continues to systematically wind down its operations in Russia.

Despite Binance's agreement with the Ministry of Justice, the US Securities and Exchange Commission (SEC) will still pursue legal action, according to Bloomberg's sources.

John Reed Stark, a former attorney for the US Securities and Exchange Commission, likened the numerous allegations made by US government agencies against Binance to a destructive tsunami that could potentially annihilate the cryptocurrency platform's operations.

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