Archive October 2021

Bitcoin surges to a 5-month high above $57,000, outperforming wider crypto sector

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Bitcoin surged to a five-month high on Monday, climbing back above $57,000 to outperform the broader cryptocurrency sector.

The digital currency claimed an intraday high of $57,776 before paring gains to trade up 3.48% at $57,331 as of 12:50 p.m. ET Monday. The largest cryptocurrency by market capitalization hit a record high of $65,000 in April.

Tim Frost, the CEO of the digital-wealth-management platform Yield App, couldn't point to one particular reason behind the rally. Catalysts could include the Securities and Exchange Commission's recent approval of an exchange-traded fund made up of stocks with bitcoin exposure, growing institutional adoption of the digital asset, and the daily settlement hitting $31 billion worth of transactions for the first time last week, he said.

But bitcoin could be headed for another short-term dip.

Continue reading at businessinsider.com

Robinhood warns crypto, payment for order flow regulation poses risk to business model

Robinhood has sounded the alarm to investors about potential risks to its business model related to increased regulatory scrutiny of cryptocurrencies and payment for order flow (PFOF), a payment arrangement with market makers which allows trading platforms to offer low-commission or commission-free trading.

According to Robinhood, payment for order flow and transaction rebates from cryptocurrency trading accounted for 79% of the company's total revenue in the second quarter, with PFOF making up 38% and cryptocurrencies making up 41%.

"Regulation of the cryptocurrency industry continues to evolve and is subject to change. Moreover, securities and commodities laws and regulations and other bodies of laws can apply to certain cryptocurrency businesses,"  the platform said in an amended S-1 filing on Friday.

Continue reading at foxbusiness.com