Bitcoin Liquidity Crisis Around the Corner?

 This newsletter is brought to you by:

​Turning Masterpieces into Millions with Masterworks

Just imagine this: A stunning painting by Claude Monet, originally purchased for $6.8 million, has been sold to its new keeper for $8 million in just 631 days!  This feat was made possible by Masterworks, a platform dedicated to investments in high-value artworks.

Masterworks simplifies the sometimes complex art investment process. They handle everything from the meticulous selection and acquisition of artworks, to ensuring their safekeeping, and overseeing their eventual sale.

Upon the sale of an artwork, investors have the opportunity to earn a share of the net profits, offering them the opportunity to make some impressive investment returns.

The platform has already attracted more than 850,000 members, so don't let this opportunity pass you by!

Here's what we've got for you today:

• Bitcoin Predicted to Face ETF-Induced Liquidity Crisis in Six Months

• Tether Collaborates with US Government in Major Fraud Seizure

• Final Arguments Begin in COPA Case Against Craig Wright Over BTC Claims

• Coinbase Shares Dip After-Hours as Exchange Plans $1B Convertible Notes Offer

⚠️ Bitcoin Predicted to Face ETF-Induced Liquidity Crisis in Six Months

An analysis by Ki Young Ju suggests a potential Bitcoin supply crunch leading to a sell-side liquidity crisis could be a mere six months away.

• This prediction is based on the current trajectory of institutional inflows into the crypto market, especially through United States-based spot Bitcoin ETFs, which have seen unprecedented success.

• The continued influx of institutional investments into Bitcoin is creating a scenario where the demand might soon outstrip the available supply.

• Young Ju points out that with ETFs alone absorbing more than 30,000 BTC last week and with known entities like exchanges and miners holding around 3 million BTC, a supply-induced price shock is becoming more probable.

👍️ Tether Collaborates with US Government in Major Fraud Seizure

The U.S. Attorney's Office in Chicago, in collaboration with Tether and other federal agencies, confiscated $1.4 million in Tether USDT as part of a crackdown on a fraud operation.

• The stolen funds were believed to be from a complex customer support scam focusing on exploiting vulnerable groups, especially the elderly, by persuading them to convert their bank funds into USDT under the guise of asset protection.

• This scam resulted in victims losing access to their money, with the fraudsters stopping all communication after securing the funds in their possession.

• Tether played a vital role in the seizure and expressed pride in their cooperation with the U.S. government to fight financial fraud in the crypto space.

⚖️ Final Arguments Begin in COPA Case Against Craig Wright Over BTC Claims

The Crypto Open Patent Alliance has tried to show that Wright cannot be Bitcoin inventor Satoshi Nakamoto.

• Closing arguments in the lawsuit filed by the Crypto Open Patent Alliance (COPA) against Craig Wright, who claims to be Bitcoin's inventor Satoshi Nakamoto, began in London on Mar. 12.

• COPA's goal in the lawsuit is to get a court order to stop Wright from continuing to claim he is Nakamoto.

• Wright has been accused of massive forgery of the documents he used to support his claim of being Nakamoto.

📉 Coinbase Shares Dip After-Hours as Exchange Plans $1B Convertible Notes Offer

Coinbase plans to secure $1 billion through the issuance of senior convertible notes, in an effort to repay debts.

• The senior convertible notes, which can be transformed into equity like stock, will be exclusively available to qualified institutional buyers, with a repayment deadline set for Apr. 1, 2030.

• These notes serve as an effective way for companies to raise money, and Coinbase is seizing the opportunity to take on debt as investors seem confident in the company.

• Coinbase plans to allocate the proceeds from these notes towards the repayment of its existing outstanding convertible notes that are due in 2026, 2028, and 2031.

👀 QUICK NEWS

• Binance-Nigeria Brawl Continues as Country Asks Exchange to Submit List of Top 100 Users

• Solana-Based NFT Marketplace Tensor Announces Governance Token

• Ethereum’s Dencun Update Vital for Network’s Future

• Global Banks Participate in Large-Scale Blockchain Pilot Test

• SEC Orders First Trust and SkyBridge to Declare ETF Application as Abandoned

MEME OF THE DAY

That’s it for today. Don’t forget to share Coinpaper Digest with your friends!