What's New In Bitcoin Market? Supply Shortage and Big Deals

Two weeks ago, spot bitcoin ETFs had inflows of more than $900 million. However, as the market assessed the accuracy of a report indicating that the US government was prepared to sell almost $6.5 billion in bitcoin that had been first taken from Silk Road, the price of bitcoin has now retreated this week, falling below $93,000.

With 9,457 bitcoins, MARA Holdings was the top miner in December. Riot mined 516 bitcoins, while Cleanspark mined 668, placing them in third place. Terawulf contributed 158 BTC while Bitfarms contributed 211 BTC. Some analysts have predicted that bitcoin will experience more notable rises during the year, with total US bitcoin ETF holdings currently approaching $110 billion.

Backpack Acquires European Branch of Collapsed FTX

Former workers of FTX and Alameda Research launched the cryptocurrency trading and digital wallet platform Backpack Exchange, which has purchased FTX EU. The Cyprus Securities and Exchange Commission authorized Backpack Exchange to supervise the distribution of its bankruptcy claims through the purchase of the European division of the defunct FTX exchange.

Armani Ferrante, the CEO of Backpack Exchange said the company's primary goals for acquisitions are customer restitution and restoring the trust of the industry. Early in 2024, Backpack Exchange's valuation was around $120 million.

As part of its larger European growth, Backpack EU apparently intends to provide decent crypto derivatives to European consumers under the new business. The FTX bankruptcy estate has further objected to the authorized sale, stating that Backpack will not be held accountable for money distribution. It is yet to see what effect it has on the overall market.

In January 2024, FTX said that it would concentrate on asset sales to pay back customers instead of resuming operations. 98% of creditors will get 119% of their authorized claims from November 2022, when the company collapsed, under the reorganization plan that was approved in October of that year. This only had a positive impact on the customers.

Does Kwon Enter a Not Guilty Plea to US Fraud Charges After Extradition?

After being extradited on December 31, Do Kwon, the creator of Terraform Labs and the Terra Luna cryptocurrency ecosystem, entered a not-guilty plea to fraud charges in the United States. Under Kwon's direction, Terraform Labs created the cryptocurrency Luna and the algorithmic stablecoin TerraUSD, both of which lost almost $40 billion in value when they crashed in 2022.

Do Kwon is charged with several offenses, including conspiracy to commit money laundering, securities fraud, and commodities fraud. As per the US federal authorities, Kwon deceived investors about the algorithm that was intended to tie terra USDs to the US dollar's value.

In 2025, Metaplanet Aims for Over 10,000 Bitcoin Through Strategic Growth

With a goal of owning 10,000 bitcoins this year, the Japanese investment company Metaplanet intends to greatly increase its bitcoin treasury. If implemented, this would more than quadruple its existing holdings of 1,761.98 bitcoins, which are valued at over $180 million. In May 2024, Metaplanet started adding bitcoin to its strategic reserves, and it has since grown its holdings.

After raising $60.6 million through the issuing of bonds, it most recently bought on December 23, when bought 619.7 bitcoins. According to the company's leadership, its goals are to increase its impact within the larger Bitcoin ecosystem and generate value for shareholders. Japan's Nikkei 225 index dipped 1.48% on Monday, despite Metaplanet's shares increasing 2.73%. The world's largest corporate bitcoin holding is still MicroStrategy.