Bitcoin (BTC-USD) is facing a rise in volatility as the halving event in the world’s largest cryptocurrency draws closer. This week, BTC has largely consolidated around the $70,000 level. Alongside this, FTX founder Sam Bankman-Fried (SBF) was sentenced to 25 years in prison and Microstrategy shares (NASDAQ:MSTR) crumbled when Kerrisdale Capital disclosed a short position in the stock.
SBF’s Prison Term
In a pivotal moment for the crypto world, FTX founder Sam Bankman-Fried (SBF) was sentenced to 25 years in prison for fraud, money laundering, and conspiracy. The saga at FTX included billions of dollars being siphoned off from FTX to its associated hedge fund, Alameda Research. Subsequently, FTX filed for bankruptcy amid a customer rush for fund withdrawals.
Shorts Make a Play in MSTR
Meanwhile, Michael-Saylor’s Microstrategy (NASDAQ:MSTR) came under pressure this week after Kerrisdale Capital disclosed a short position in the stock. MSTR’s mega BTC hoard has made holding the stock a similar play to go long on BTC for investors. In fact, MSTR has rallied by around 585% over the past year, far outstripping the 147% jump in Bitcoin. The disclosure from Kerrisdale came amid elevated short interest in MSTR stock and a series of share sale transactions from the company’s insiders.
LSE Warms Up to Cryptos
While the curtains may have closed on the FTX saga, the trend of rising institutional adoption of crypto continues to chug along. The London Stock Exchange (LSE) is set to introduce BTC and Ether (ETH-USD) exchange-traded notes (ETNs) in May. The exchange will start accepting applications for crypto ETNs in April. ETNs are unsecured debt securities that are backed by the issuing party’s credit.
Following the recent consolidation in Bitcoin, the TipRanks Technical Analysis Tool is flashing mixed signals on the cryptocurrency, with Oscillators leaning towards a Sell.
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