In the world of cryptocurrency today, Bitcoin is anticipated to undergo increased volatility soon, as major financial institutions like Bank of America, Goldman Sachs, Deutsche Bank, and Citi are entering the stablecoin market. Additionally, the prediction platform Kalshi has raised $300 million for its global expansion.
Bitcoin may face fluctuations due to Trump tariff concerns: Executive
Swan Bitcoin’s CEO, Cory Klippsten, indicated that Bitcoin’s price volatility could persist after the cryptocurrency experienced a brief drop to $102,000 on Friday, a reaction to US President Donald Trump’s announcement of a 100% tariff on Chinese imports.
“If the broader risk-off sentiment continues, Bitcoin may fluctuate before it finds support and begins to separate again,” Klippsten shared with Cointelegraph on Friday.
He advised Bitcoin investors to prepare for some market instability in the upcoming days. “Such macro-driven declines typically eliminate leveraged traders and weak hands, resetting positions for the next upward movement,” Klippsten explained.
In the past 24 hours, approximately $2.19 billion in Bitcoin long positions were liquidated, contributing to a cumulative total of $8.02 billion in long liquidations across the overall crypto market, according to CoinGlass.
Banks working on a stablecoin tied to G7 currencies
A coalition of banks is currently exploring the development of stablecoins linked to some of the globe’s major fiat currencies, including the US dollar, euro, and Japanese yen.
In a statement released on Friday by BNP Paribas, it was noted that banks such as Bank of America, Goldman Sachs, Deutsche Bank, and Citi have initiated a project aimed at the “issuance of a 1:1 reserve-backed form of digital currency that acts as a stable payment asset on public blockchains,” tied to the currencies of the Group of Seven (G7) nations: the United States, Canada, the United Kingdom, France, Germany, Italy, and Japan.
“The goal of this initiative is to assess whether a new industry-wide offering could leverage the advantages of digital assets and enhance competition in the market, all while adhering to regulatory standards and best practices for risk management,” stated the banks.
The announcement did not specify a timeline for the project, which could face competition from Tether’s USDt (USDT), the leading stablecoin by market cap.
Among US financial institutions, their efforts might be supported by the recent nullification of the GENIUS Act, which regulates payment stablecoins, signed into law by US President Donald Trump in July. Although the law is already enacted, GENIUS is not expected to become effective for another 15 months, or 120 days following the US Treasury and Federal Reserve finalizing the regulations surrounding the bill.
Kalshi secures $300 million for global prediction markets expansion
Based in the United States, prediction marketplace Kalshi successfully completed another significant funding round to extend its services to over 100 countries globally.
Kalshi finalized a Series D funding round exceeding $300 million, led by Sequoia Capital and Andreessen Horowitz (a16z), with additional participation from Paradigm, the company reported on Friday.
The platform is now accessible in over 140 countries, according to a statement shared with Cointelegraph, and it has established itself as the “world’s only unified global prediction market, immediately adding billions of possible new customers.”
The latest $300 million raise followed Kalshi’s previous $185 million funding round in June, which was also led by Paradigm and featured Sequoia Capital.
With the Series D funding, Kalshi’s valuation has reached $5 billion, marking an increase of $3 billion from its prior fundraising round in June.
Included among the new round’s investors were CapitalG, Coinbase Ventures, General Catalyst, and Spark Capital, in addition to Sequoia and a16z.
Following a funding round valuing Kalshi at $5 billion, the platform also unveiled its plans for international expansion, launching in various new markets immediately.
“International users can now utilize the platform through the Kalshi website with an experience identical to that of American users,” the company stated.
