Tether Hits $2.5B in Q3 Profit, and Trump’s Crypto Fund Faces Setbacks - November 1, 2024

Also, Ethereum drops 5.8%, and CZ makes his first public appearance.

TL;DR: Crypto Insights in Seconds

• Tether: Tether’s record profit is backed by $100B in U.S. Treasury holdings.

• Trump: Weak demand forces Trump’s crypto business to drastically reduce its fundraising target.

• Ethereum: Drops 5.8% and drags many major cryptocurrencies with it. 

• U.S. Crypto: Blockchain Association announced SEC conflicts have cost $400 million to the crypto market.

• CZ: Binance CEO makes his first public appearance after his release. 

Price Update 

Bitcoin’s Price Pulls Back to $72.5K Amid Major ETF Inflows

Bitcoin’s price has experienced a slight dip, trading at approximately $72.5K after briefly slipping below $71K. Despite this pullback, Bitcoin ETFs continue to see strong demand, with inflows exceeding expectations. Analysts suggest this ETF momentum could provide long-term support, though short-term volatility remains high as markets adjust to these record levels.

Ethereum Leads Market Correction with 5.8% Drop

Ethereum saw a 5.8% decline, leading to a wave of losses among major cryptocurrencies. This pullback reflects the market’s heightened sensitivity to macroeconomic factors and recent profit-taking by investors. Analysts suggest that while Ethereum’s price may stabilize, volatility is likely to persist in the near term.

Business News

Trump’s Crypto Fund Slashes Fundraising Target by 90%

After underwhelming sales, Trump’s crypto venture, which initially aimed for a high fundraising target, has cut its goal by 90%. This decision is a clear sign of lower-than-expected demand for the project, raising questions about the viability of celebrity-backed crypto initiatives and their appeal among mainstream investors.

Tether Reports $2.5 Billion Q3 Profit Amid $100B in Treasury Holdings

Stablecoin giant Tether has announced a substantial $2.5 billion profit for Q3, underpinned by over $100 billion in U.S. Treasury holdings. Tether’s large Treasury reserves show commitment to transparency and regulatory resilience, especially as scrutiny over stablecoin backing intensifies. 

Don’s Miss Anything

Blockchain Association Highlights SEC’s $400M Impact on Crypto

The Blockchain Association has reported that SEC Chair Gary Gensler’s policies have cost the crypto industry an estimated $400 million in regulatory expenses since his tenure began. This big number highlights the real friction between the crypto sector and U.S. regulators as firms adapt to stricter regulatory demands.

CZ Makes First Public Appearance After Release

Binance CEO Changpeng “CZ” Zhao appeared at Binance Blockchain Week in Dubai, making his first public appearance since his release from detainment. CZ’s reemergence comes during heightened scrutiny on Binance’s global operations, with his appearance reaffirming Binance’s commitment to regulatory compliance.

Tether’s robust Q3 performance emphasizes stablecoin resilience, even as regulatory discussions heat up. Meanwhile, Trump’s reduced fundraising target shows the challenges of a celebrity-backed crypto initiative. With regulatory, institutional, and market factors converging, the crypto space continues to unwind rapidly. As the market evolves, being informed and adaptable is crucial for investors and participants. Stay tuned for tomorrow’s newsletter to get the latest insights and updates in the market.