Cryptocurrency roundup for May 5: Matrixport forecasts 20% upswing in Bitcoin, US court orders SEC to address Coinbase's crypto concerns and more

FTX Group is attempting to recover nearly $3.9 billion in funds, consisting of cash and cryptocurrency, from the insolvent digital asset lender Genesis Global Capital LLC and its solvent affiliate, GGC International Ltd.
> The funds in question are linked to $1.8 billion in loans and $273 million in collateral provided by Alameda Research Ltd., the now-defunct cryptocurrency trading firm founded by Sam Bankman-Fried, to Genesis Global Capital prior to its bankruptcy and concurrent collapse of FTX, as indicated by court documents filed on Wednesday.

> Additionally, FTX Group alleges in the legal filings that $1.6 billion in assets were withdrawn from its trading platform by Genesis Global Capital before the bankruptcy, along with $213 million extracted by GGC International. Continue here.

Matrixport, a cryptocurrency services provider, released a research report on Thursday suggesting that Bitcoin (BTC) has the potential to surge by 20%, reaching a value between $35,000 and $36,000.

> The report highlights that Bitcoin has been constrained within a tightening wedge, which is expected to break upward soon, possibly leading to a 20% increase, equivalent to the initial formation of the wedge.

> The research also mentions that despite the Federal Reserve's recent decision to raise interest rates by 25 basis points, there is a high likelihood that this marks the end of the current rate hike cycle.

> This development could pave the way for a robust market rally. Details here.

A US court has directed the Securities and Exchange Commission (SEC) to address Coinbase's grievance regarding the application of securities laws to digital assets.

> The Third Circuit Court of Appeals mandated on Wednesday that the SEC must submit its response within a 10-day period, after which Coinbase has seven days to file a counter-response.

> Coinbase recently argued that the SEC has failed to provide adequate regulatory guidance for US companies operating in the cryptocurrency industry, asserting that the commission must "at a minimum, set forth how those inapt and inapposite requirements are to be adapted to digital assets."

> The crypto exchange referred to a 2022 petition requesting formal rulemaking within the digital asset sector, which the SEC has yet to address. Full report here.

Coinbase, the prominent crypto exchange, has announced that it will discontinue its Borrow program starting May 10, 2023.

> The program enabled users to secure loans using bitcoin as collateral.

> In a Wednesday email to customers, Coinbase stated, "Beginning May 10, 2023, customers will no longer be able to take out new loans with Coinbase Borrow."

> The company reassured borrowers that current loans would not be affected and no immediate action would be necessary.

> Borrowers will still have access to their loan history and the full Borrow dashboard.

> A Coinbase spokesperson cited a lack of demand for the product as the reason for its discontinuation, stating, "We regularly evaluate our products to ensure we're prioritizing the offerings that our customers care about most." See here.

OpenSats, a non-profit promoting open-source Bitcoin and Nostr projects, has secured $10 million from Jack Dorsey's #startsmall initiative.

> The funds will support the development of a sustainable ecosystem for free, open-source projects and protocols.

> Half of the donation will be allocated to the growing Nostr ecosystem.

> OpenSats aims to enhance its efforts and streamline operations with the funding.

> The organization emphasized the importance of free software and open protocols in fostering a free and prosperous society.

> OpenSats will maintain its 100% pass-through model, ensuring all donated funds go directly to projects approved by its board of directors.

> OpenSats is expanding its efforts by establishing a Nostr development committee, including Nostr creator fiatjaf and Coinkite CEO NVK, to assess projects and protocol contributions. Details here.

As fans worldwide celebrate Star Wars Day with their lightsabers in hand, Cryptoys has revealed a partnership with Disney to sell digital collectibles featuring three of the franchise's most iconic characters.

> Cryptoys, supported by Andreessen Horowitz, Mattel, and Dapper Labs, will launch 15 limited-edition digital toys of Luke Skywalker, Princess Leia, and Darth Vader.

> Disney, known for its successful marketing and merchandise sales based on popular intellectual property, has not ventured significantly into the crypto space thus far.

> However, last year, the media giant posted a LinkedIn job advertisement for a transaction lawyer to explore emerging technology opportunities.

> Cryptoys' Star Wars NFTs will be powered by Dapper Labs' Flow blockchain and will be available for $39.99 each. More here.

On Thursday, Bitcoin (BTC) remained relatively stable, trading slightly below $29,000 for most of the day, which has been the case for the past 10 days.

Investors considered U.S. and European central bank interest rate hikes and the latest issues in the rapidly expanding bank crisis.

The leading cryptocurrency by market capitalization traded at around $28,800, a decrease of 0.3% in the past 24 hours.

BTC dipped below $29,000 Thursday morning as U.S. stock markets opened and fluctuated between $28,700 and $29,000.

Ether (ETH), the second-largest cryptocurrency by market capitalization, displayed a similar trend, trading at around $1,877, down 0.6% from Wednesday at the same time.

The prices of major cryptocurrencies experienced minimal movement throughout the day.

Litecoin's LTC token traded nearly flat at approximately $87.8, while Solana's SOL token dropped around 0.8% to trade at $21.70.