Newsletter Volume 70
19th April 2024
THE MARKET THIS WEEK
The price of Bitcoin has historically increased following the previous three halvings, however the times taken to reach the all-time highs have varied considerably. Given the different current macro conditions, care should be exercised in extrapolating historical cycles and the impact of halving, according to a note sent to clients on April 12 by Goldman’s Fixed Income, Currencies and Commodities (FICC) and Equities team.
For the second time this week, the price of Bitcoin temporarily dropped below $60,000 following reports of explosions at an airport in central Iran. As the April 20 halving event draws near, bitcoin holders might also be preparing for further volatility. The halving event reduces miners’ earnings in half every four years. Since last week’s greed index of 79, the Crypto Fear and Greed Index, a key indicator of market sentiment in cryptocurrency markets, has dropped by 13 points.
When Runes, a new Bitcoin token standard, are published when the halving happens at block 840,000, a new revenue stream will become available. The introduction of NFT-like Ordinals inscriptions in January 2023 has helped Bitcoin miners earn more revenue from transaction fees.
The cryptocurrency division of TradeStation was recently acquired by Kraken. An email from a Kraken representative stated, “The transaction is part of our efforts to accelerate our U.S. presence and will unlock further growth and new product opportunities for Kraken in the U.S.” The business refused to reveal the payment amount. The acquisition was not previously made public.
“Tether’s expansion beyond its well-established USDT stablecoin signifies a paradigm shift in its approach to financial empowerment,” the business stated in a statement. “By focusing on sustainable solutions adaptive to the needs of individuals, communities, cities and countries, responsible Bitcoin mining, Artificial Intelligence infrastructure and decentralised communication platforms, Tether is actively contributing to a future-proof financial and tech ecosystem.”
KEY METRICS
Total Crypto Market Cap : $2.65T
Bitcoin Market Cap : $ 1.32T
Ethereum Market Cap : $ 421.48B
ETH/BTC Ratio : 0.05
Ethereum Gas Price : 9 gwei
DeFi TVL : $180.33b
Fear and Greed Index : 66 (Extreme Greed)
Federal Reserve Balance Sheet : $7.43 T
BATTLE OF THE BULL AND BEAR
After the market rallied following reports of just minor damage from an Israeli strike on Iranian military facilities, Bitcoin (BTC) surged back above $62,000.
Even if it made a small comeback, Ether (ETH) was still trading below $3000. Run by Paxos, PAXG is a tokenized form of gold that is up over 3%.
DeFi drives Q1 sales, putting Ethereum on course for a $1 billion yearly profit. Ethereum only turned a profit for the first time last year, and if it maintains the same rate as its 2024 first-quarter earnings, it may end up with $1 billion in revenue annually. In 2024, there were more over 1.15 million average daily transactions, which is a small increase from 1.05 million the previous year and just below the 1.25 million recorded in 2021.
Bitcoin price rises 5% from its low of $59.7K. After falling below $60,000, Bitcoin is trying to recover, and traders are daring to hope for an altcoin rally. “Throughout this cycle, one important thing to keep in mind regarding Bitcoin’s Re-Accumulation Ranges is this: Wicks on the downside below the Range Lows frequently happen to mislead investors into believing in a phony breakdown.
For the third day in a row, Bitcoin costs surpass Ethereum’s as the halving draws near. After the halving, transaction fees will be crucial to keeping Bitcoin miners afloat because the reward for mining a block will decrease from 6.25 BTC to 3.125 BTC.
Blockchain protocol for data availability Avail reports a 600 million token airdrop. A year after Avail had split off from Polygon Labs, the airdrop was declared. Users of the Polygon or Avail ecosystems are not the only ones who can access the airdrop. According to Avail, “Web3 unification necessitates unification at the most fundamental level.” Bitcoin, Ethereum, Solana, Cosmos, Avalanche, Near, and other companies that have each contributed in a different way to the blockchain ecosystem are included in this airdrop.
WEEKLY REVIEW OF IC15
The global cryptocurrency market slipped due to several reasons, such as geopolitical tensions between Iran and Israel and ETF outflows. The IC15 Index was down 1,642 points to 76,815 at 4 p.m. Major contributors to the Index down were Dogecoin, Solana, Polygon, and Toncoin in the 3- 8% range, while Litecoin and BNB were the only gainers, with 4.53% and 0.30% up.
The Bank of Israel is starting a sandbox for its CBDC, the digital shekel, to test its use cases, polish the design, and ensure its advanced application capacity. The Bank of Korea is moving forward in the race for CBDC as it plans to accelerate its pilot project with 1,00,000 participants. They are collaborating with key regulatory bodies to test the use cases of their CBDC and establish a network.
The Dubai Multi Commodities Centre (DMCC) published a report that reveals that the UAE secured $25 billion in crypto transactions in 2022 and is attracting further investments through accommodative regulatory policies. Dubai launched a new initiative called the Blockchain for Good Alliance (BGA) with industry experts to address global social, economic, and environmental challenges.
All the constituents in the Index were red, with Solana, Toncoin, Shiba Inu, and Avalanche being the major losers in the 10–15% range.
Weekly Spotlight
A number of factors, including ETF withdrawals and geopolitical tensions between Iran and Israel, contributed to the decline in the global cryptocurrency market. At 4 p.m., the IC15 Index had dropped 1,642 points to 76,815 points. Litecoin and BNB were the only gainers, with 4.53% and 0.30% up, respectively, while Dogecoin, Solana, Polygon, and Toncoin were the main contributors to the Index down in the 3–8% range.
To test use cases, refine the design, and guarantee the digital shekel’s enhanced application capabilities, the Bank of Israel is launching a sandbox for it. With intentions to expedite its pilot project with one million participants, the Bank of Korea is making progress in the competition for CBDC. To evaluate the applications of their CBDC and create a network, they are working with important regulatory organizations.
According to a research released by the Dubai Multi Commodities Centre (DMCC), the United Arab Emirates (UAE) successfully handled $25 billion in cryptocurrency transactions in 2022 and is currently drawing in more capital thanks to welcoming regulatory frameworks. In order to address global social, economic, and environmental concerns, Dubai and industry professionals developed a new effort dubbed the Blockchain for Good Alliance (BGA).
Every component in the Index was red, with the top losers in the 10–15% area being Solana, Toncoin, Shiba Inu, and Avalanche.
