Category: Cryptocurrency

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Bitcoin’s inflation rate has plummeted to a historic low of approximately 1.74% following the recent Bitcoin halving. With 93.3% of Bitcoin already mined, amounting to 19.6 million out of a possible 21 million BTC, the scarcity element is poised to escalate demand, potentially propelling the leading cryptocurrency’s price surge. In contrast, fiat currencies grapple with higher inflation rates due to governmental controls and economic policies. For instance, in 2023, countries like Argentina encountered exceptionally high inflation rates, hitting 161.0%, as per Inflation Data. The European Union reported more moderate levels, with the euro area’s annual inflation rate at 2.9% in December 2023.

The recent halving event is anticipated to further diminish Bitcoin’s inflation rate, impacting both its scarcity and investor sentiment. The trend suggests that each halving event, which halves the reward for mining new blocks, tends to bolster buyer interest due to reduced supply growth.

According to a report from CoinGecko, historical data reveals a consistent trend of significant growth in Bitcoin prices following each halving event. Following the first halving in 2012, Bitcoin’s price surged by an impressive 8,858%. Subsequent halvings witnessed diminishing returns, with increases of 294% and 540% respectively, yet the pattern of price spikes post-halving remains discernible. These events not only affect Bitcoin but also resonate across other leading cryptocurrencies, such as Ethereum, albeit with varying impacts due to differing supply mechanisms.

The completion of the fourth halving has triggered speculation within the cryptocurrency community regarding short-term market dynamics. Recently, Bitwise noted that while the month immediately following the halving typically witnesses a modest price decline, the subsequent year often heralds exponential gains. After the 2012 halving, Bitcoin experienced a meager 9% increase in the month post-halving, only to soar by a staggering 8,839% over the following year. Similar patterns were observed after the 2016 and 2020 halvings, with Bitcoin’s price witnessing significant surges in the year following each event.

Bitcoin’s market cap fluctuations around halving events provide valuable insights into consumer behavior during these critical periods. Initially pegged at $123.3 million during the first halving, the market cap swiftly surged to $947.4 million shortly thereafter. 

Similar patterns were observed in subsequent halvings, reflecting a tendency among Bitcoin holders to speculate around halving events, often opting to hold onto their assets in anticipation of value increases. The analysis of pre-and post-halving periods suggests a strong inclination toward holding Bitcoin, deemed to become more valuable as future supply constraints tighten post-halving.

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Runes, resembling BRC-20s, emerge as a significant protocol utilizing the Bitcoin network, claiming a substantial 68% share in Bitcoin transactions since the halving. However, Bitcoin miners face diminishing returns amidst this surge.

Similar to BRC-20s, Runes operates by compensating fees in Bitcoin to mint new tokens. Differing from Ordinals’ “inscription” account model, Runes utilizes the Unspent Transaction Output (UTXO) framework to imprint new tokens on the Bitcoin network. This methodology enables users to allocate unique identification numbers to individual satoshis, embedding them with diverse data directly into the Bitcoin blockchain.

Since its inception on April 20th, Runes has processed over 2.38 million transactions, as per data from a Dune Analytics dashboard shared by Crypto Koryo, a blockchain research firm. Pitted against Ordinary peer-to-peer Bitcoin transactions, BRC-20s, and Ordinals, Runes accounts for a significant portion of the total Bitcoin transaction volume.

On April 23rd, Runes witnessed its peak transaction volume, exceeding 750,000 transactions. However, the subsequent day witnessed a notable decline, with transactions dwindling to 312,000.

Much of the initial fervor stemmed from the halving event at block 840,000, where users vied for prime digital real estate in Bitcoin’s history, utilizing the Runes protocol to imprint “rare satoshis” on the block. Consequently, Runes contributed over $2.4 million in miner fees, constituting over 70% of the total fees on halving day.

Amidst declining mining rewards post-halving, from 6.25 BTC to 3.125 BTC, Runes Protocol was initially touted as a lifeline for struggling miners, offering a new avenue for income. Pseudonymous Ordinals developer Leonidas stated, “Runes degens have single-handedly offset the drop in miner rewards from the halving.” However, the sustainability of this assertion has been questioned, given the fluctuating daily total fees post-halving, ranging between 33% and 69%.

Community sentiment remains divided regarding whether Runes can provide a stable revenue stream for Bitcoin miners. Notably, the Bitcoin Miners’ Position Index (MPI) fluctuated between -1 to -0.15 post-halving, suggesting no significant movement in miners’ Bitcoin holdings and indicating no imminent sell-off.

While Runes may face challenges in sustaining its momentum, recent groundbreaking developments offer potential alternative revenue streams to mitigate the impact of the halving on miners.

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When news broke about the U.S. Federal Trade Commission’s decision to prohibit non-compete agreements, it brought back memories of my own experience leaving a blockchain startup to join another early-stage company. Upon my departure, my former employer sent a cease-and-desist letter alleging a breach of a non-compete clause in my employment contract.

Despite the weak legal grounds of their claim, I found myself entangled in a lengthy dispute, facing financial losses, emotional strain, and months of unemployment. My story is not unique. Nearly one in five Americans is bound by non-compete agreements, leading to unnecessary hurdles for both employees and employers.

The FTC’s move to ban non-compete agreements is a significant step forward, with Chair Lina M. Khan estimating it could spur the creation of 8,500 new startups through increased competition. As someone working in the blockchain and digital assets sector, I see this decision as aligning with the open-source ethos fundamental to our industry’s innovation.

It’s ironic that a blockchain startup, built on principles of decentralization and collaboration, would resort to enforcing restrictive non-compete clauses. Furthermore, the contrast between my experience and California’s long-standing ban on non-competes highlights the potential impact of such regulations on fostering innovation and entrepreneurship.

The FTC’s action signals a positive shift, not only for individual employees like myself but also for the broader crypto industry, where talent mobility and innovation thrive in an environment free from unnecessary constraints.

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Paystand (NASDAQ:PAYS) has made a strategic move by acquiring spend management software startup Teampay, aiming to establish a “no-fee B2B digital payment and spend powerhouse.”

While the financial terms of the deal were not disclosed, Teampay has successfully raised $65 million since its inception in 2016.

The merger brings together two entities servicing over 1 million businesses on a commercial blockchain, with a transaction volume exceeding $10 billion to date, representing close to 2% of annual U.S. business-to-business payments.

Jeremy Almond, CEO of Paystand, shared with TechCrunch that Teampay represents a new breed of fintech companies, offering innovative products to CFOs seeking to modernize their workflows. The acquisition aligns with Paystand’s vision of providing next-gen experiences to its customers amidst a significant modernization wave.

Maintaining the Teampay brand is a strategic decision due to its established reputation in the market, according to Almond.

The acquisition of Teampay marks Paystand’s second in two years, following the purchase of payment platform Yaydoo in 2022. With a valuation surpassing $1 billion and $98 million in venture capital funding since its inception in 2014, Paystand aims to leverage Teampay’s capabilities to enhance both accounts receivable and accounts payable processes.

Almond emphasizes the trend of consumerization in the enterprise space, aiming to replicate the seamless payment experiences seen in consumer finance apps like Venmo and CashApp within the B2B realm.

Despite fintech’s recent growth, the banking industry grapples with outdated payment rails, resulting in higher fees, increased intermediaries, and delays. Paystand addresses these issues by leveraging decentralized financial infrastructure powered by the Ethereum blockchain, offering zero-fee business-to-business payments through its Paystand Bank Network.

Almond believes that blockchain technology represents a paradigm shift away from traditional central banking systems, offering real value to businesses and finance teams. He asserts that the readiness of blockchain and decentralized finance networks lies in their ability to create tangible benefits for users.

In conclusion, Paystand’s acquisition of Teampay signifies a strategic move towards revolutionizing B2B payments within the decentralized finance landscape, offering businesses enhanced efficiency, reduced costs, and streamlined processes.

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Amidst a broader market crash, Ethereum experiences a 2.50% decline, fueling concerns of a potential drop to $3,000. Despite this setback, some investors maintain optimism for long-term gains, pointing to the possibility of a bullish trend triggered by Bitcoin Halving. However, ETH faces resistance even as it finds support at $2,850, with conflicting signals from technical indicators adding to market uncertainty.

Ethereum, the leading altcoin by market capitalization, has not escaped the recent market downturn, witnessing a 2.50% decline in price. Worries about a potential descent to $3,000 have emerged following this setback and amid broader concerns of a significant market correction.

Nevertheless, despite the current downturn, certain investors remain hopeful about Ethereum’s long-term trajectory. The historical precedent of Bitcoin Halving sparking an altcoin season hints at the potential for a future uptrend.

With a market capitalization of $382 billion, Ethereum has experienced an 18% drop over recent weeks. However, the ETH price has found support around the 50% Fibonacci level, approximately $2,850.

The consolidation on the weekly chart between the 50% and 61.80% Fibonacci levels has been prolonged by the latest downturn. The smaller rejection from the 50% Fib level suggests a possible bullish breakout, potentially leading to sustained levels above $3,000.

Can Ethereum Regain Momentum?

At its current trading price of $3,140, Ethereum displays an intraday Doji candle, highlighting the altcoin’s volatile nature. The resumption of an upward trend for Ethereum may occur if the market manages to avoid further losses.

Technical indicators offer a mixed outlook for Ethereum. The bearish crossover in the MACD and signal lines on the weekly chart reflects the recent pullback phase. However, a rebound from the 50% Fib level in ETH price could reignite positive momentum.

A potential breakout above the $3,265 resistance level may signal an entry opportunity for a bull run continuation. Such a scenario could test the formidable $4,000 resistance level, potentially resulting in a 25% increase.

However, while the likelihood of a drop to $3,000 remains minimal, it still concerns investors amidst the current market conditions. The prevailing uncertainty prompts investors to carefully evaluate the potential outcomes for Ethereum’s price movement.

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Industry insiders anticipate the Securities and Exchange Commission (SEC) will reject proposals for exchange-traded funds (ETFs) linked to the price of ether in the coming month, according to sources familiar with the matter.

Several firms, including VanEck and ARK Investment Management, have submitted applications to the SEC seeking approval for ETFs that would mirror the spot price movements of ether, the second-largest cryptocurrency by market capitalization. The SEC is slated to make decisions on VanEck’s and ARK’s applications by May 23 and May 24, respectively.

Meetings between these firms and the SEC in recent weeks have reportedly been disheartening, with agency staff offering little insight into the concerns surrounding the proposed ETFs. This stands in stark contrast to the extensive deliberations that preceded the approval of bitcoin-based ETFs earlier this year.

Led by crypto skeptic Gary Gensler, the SEC had historically rejected bitcoin ETFs due to concerns over market manipulation. However, pressure mounted after Grayscale Investments successfully challenged the SEC’s stance in court, leading to the recent approval of spot bitcoin ETFs. Despite arguments from ETF issuers citing precedents set by bitcoin ETFs and ether futures-based ETFs approved last year, the SEC appears poised to deny the current filings, signaling a setback for the cryptocurrency industry.

While some issuers intend to submit additional documentation to the SEC to prolong discussions, expectations of a rejection have already impacted ether’s price. Although the cryptocurrency has seen a modest increase in value this year, it has lagged behind bitcoin, which reached new all-time highs recently.

The SEC’s scrutiny of ether ETFs has been limited thus far, with only a few meetings reported, including one with crypto exchange Coinbase. Coinbase argued that the rationale behind approving bitcoin ETFs should extend to ether products, given the correlation between ether futures and the spot market.

If the SEC rejects the ether ETFs, it may be due to concerns regarding the availability and reliability of statistical data on the ether market. Some observers speculate that the SEC may require more time to assess the impact of ether futures trading before greenlighting spot ETFs.

Despite the anticipated rejection, some industry insiders believe that legal challenges could eventually pave the way for ether ETFs. However, for now, the prospect of approval remains uncertain, leaving the cryptocurrency market in a state of flux.

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Financial markets are experiencing a profound transformation with the rise of asset tokenization, signaling more than just a passing trend among technology enthusiasts. It represents a fundamental evolution in the management and transaction of assets on a global scale.

The distinction between crypto-native tokens and tokenized real-world assets is paramount. While crypto-native tokens like bitcoin and ether exist purely in the digital realm and serve various purposes within their ecosystems, tokenized RWAs bridge the gap between digital and traditional finance. They enhance liquidity and fractionalization, making previously illiquid assets more accessible.

The recent launch of BlackRock’s BUIDL, a tokenized private short-term treasury fund, is a significant milestone in the realm of tokenization. BUIDL attracted nearly $300 million in assets within its first month, signaling BlackRock’s endorsement of tokenization as the future of markets. Tokenized government treasuries, exemplified by products like BENJI and USDY, have seen exponential growth, with the market surpassing $1.2 billion.

Currently, on-chain RWAs represent a $7.5 billion market, but the pace of growth and the widening array of tokenized assets, including treasuries, commodities, real estate, and more, suggest a tipping point. Forecasts indicate that the market for tokenized assets could reach $16 trillion by 2030, facilitating the development of new financial ecosystems across DeFi protocols.

A new demographic of investors has emerged within the crypto-native space, accustomed to accessing financial products and services directly from their wallets. These investors have benefited from a decentralized ecosystem operating 24/7, with lower barriers to entry compared to traditional financial systems.

Geopolitical events can have a significant impact on tokenized assets, as demonstrated by the trading behavior of PAXG during heightened tensions between Iran and Israel. This underscores the importance of asset safety, a principle that applies to both traditional and digital markets.

The concept of “Bring Your Own Wallet” represents a paradigm shift, empowering individual investors to manage and access their assets without relying on intermediaries. As more assets transition to blockchain, asset managers will adapt

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CoinPoker, a crypto betting app, has recently abolished all withdrawal fees on its platform, aligning itself with industry trends seen in online gambling sites like Rollbit.

This strategic move is expected to enhance CoinPoker’s competitiveness and potentially attract more users over time, especially as it offers similar features to Rollbit and introduces unique propositions such as poker games against human opponents.

The elimination of withdrawal fees, coupled with the recent success of gambling coins like Rollbit, could drive positive momentum for CoinPoker’s native CHP token.

The platform’s official announcement emphasized that only blockchain network fees will apply to withdrawals, highlighting a user-centric approach aimed at fostering growth and stability.

Previously, CoinPoker imposed nominal withdrawal fees to support site security and stability. However, advancements in security measures now allow the platform to waive these fees without compromising user experience or safety.

Currently ranked 90th globally in the poker category by SimilarWeb, CoinPoker has seen steady growth, rising 14 places between February and March. With its strong user experience and unique offerings, CoinPoker is poised to climb further in industry rankings.

The platform’s Crypto Series of Poker tournament, featuring a guaranteed prize pool of $1 million, has garnered significant attention, attracting renowned players like Tony G. who recently won over $300,000.

As CoinPoker solidifies its position as a leading destination for crypto-friendly poker, it stands to gain market share from competitors like Rollbit. This potential growth trajectory could also bolster the value of CoinPoker’s CHP token.

Despite recent declines, CHP has shown resilience, prompting investor interest following the withdrawal fee announcement. With consistent platform expansion, CHP may mirror the success of Rollbit’s RLB token, which has surged by 670% over the past year.

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As the Dollar Index (DXY) experiences a recent pullback, crypto traders are banking on continued dollar weakness to fuel a resurgence in Bitcoin (BTC), although some banks hold a contrary view.

Recent trends have seen Bitcoin trading within the $60,000 to $70,000 range since mid-March, with the dollar’s bounce on the DXY contributing to this stabilization. However, a reversal in the DXY’s trajectory, coupled with expectations of a weaker dollar, has reignited optimism among Bitcoin bulls.

Mike Alfred, a value investor and managing partner at Alpine Fox LP, anticipates a turnaround in the DXY, projecting a move back towards 102-103, which he believes will coincide with a bitcoin rally towards $90,000 in the short term. While some banks foresee continued dollar strength, others see signs of a potential peak, with projections ranging between 107 and 110 for the DXY.

Societe Generale’s Cross Asset Research Team and Scotiabank are among those forecasting a resilient dollar, citing expectations of a prolonged hold on interest rates by the Federal Reserve. Additionally, the possibility of a U.S.-China trade war escalation, with proposed tariff hikes on Chinese imports, could further bolster the dollar, according to Barclays.

Despite divergent opinions, crypto traders remain focused on the potential impact of a weaker dollar, which historically correlates with increased risk-taking and a favorable environment for Bitcoin and the broader crypto market. As such, traders are closely monitoring shifts in the DXY and geopolitical developments that could influence the dollar’s trajectory in the coming weeks.

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This Friday, Deribit, a leading derivatives exchange, braces for a substantial expiration of cryptocurrency options, totaling over $9.4 billion, with bitcoin options comprising the majority at $6.35 billion.

The upcoming expiry has sparked notable activity in the options market, particularly for Bitcoin, where the put-call ratio stands at 0.68, signaling an increased interest in put options compared to calls. In contrast, ether options, valued at $3.08 billion, exhibit a lower put-call ratio of 0.49, suggesting a more bullish sentiment among traders.

Amidst this activity, attention is drawn to the largest open interest in year-end expiry calls, notably at a $100,000 strike price for Bitcoin. This optimistic outlook reflects a belief among derivatives players in Bitcoin’s potential to surpass this milestone by December.

QCP Capital analysts interpret this surge in options activity as investors positioning themselves for a post-halving resurgence in bitcoin’s value, anticipating a breakout from its two-month consolidation period.

Standard Chartered’s recent analyst note aligns with this sentiment, projecting a year-end target price of $150,000 for bitcoin and $8,000 for ether.

Options, as derivative contracts, offer traders the right, but not the obligation, to buy or sell the underlying asset at a predetermined price within a specified timeframe. The distribution of put and call options is often used to gauge market sentiment, with put options typically indicating bearishness and call options suggesting bullishness.

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