Buckle Up Crypto 🐿️
Bitcoin halving in the most charged global geo-political scenario. Goldman Sachs calls it 'buy the rumour, sell the news' event. Worldcoin launches Ethereum L2. Crypto VCs back in love with Web3.
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The most special day of the year after Jan 10 for Bitcoiners.
Like the calendar leap year. Once in four years.
Bitcoin halving is here.
Flippin through the past halvings.
But are we excited? Bitcoin prices took a dip below $60,000 on April 17 before bouncing back slightly ($61K).
Ethereum below $3k.
The total total liquidations - $247.28 million.
Why? Federal Reserve Chair Jerome Powell signalled no near-term interest rate cuts.
"Right now, given the strength of the labor market and progress on inflation so far, it's appropriate to allow restrictive policy further time to work and let the data and the evolving outlook guide us."
How bad is it?
Outflows from Bitcoin ETFs and a lack of "big money" buying suggest waning demand.
The lack of demand is due to a growing risk aversion.
But, before you call it volatile and risky, Bitcoin's performance should be viewed in the context of its developmental trajectory.
Few things to look at
Bitcoin's price plunge is creating buying opportunities for major miners like like Marathon and CleanSpark, who are eyeing smaller rivals for acquisition.
Google searches for "Bitcoin halving" are at their highest point ever, with projections showing it could be more than double the interest of the 2020 halving.
Bitcoin ETFs are gobbling up coins. This means there will be even fewer available after the halving.
Analysts recommend Riot and CleanSpark stocks as they position themselves for "superior execution" during the consolidation.
With halving, Bitcoin might become a more mature asset class, with steadier growth and Governments might create regulations that favour Bitcoin over other cryptos.
Block That Quote 🎙️
Goldman Sachs, global financial institution.
“The halving might be a buy the rumour, sell the news event”
Bitcoin's halving is here, but will it trigger a price surge like clockwork? Goldman Sachs throws cold water on the idea, stressing the unpredictable future.
Goldman's Fixed Income, Currencies and Commodities (FICC) and Equities team said in a note to clients on April 12.
"Historically, the previous three halvings have been accompanied by BTC price appreciation after the halving, although the time it took to reach the all-time highs differs significantly.
Caution should be taken against extrapolating the past cycles and the impact of halving, given the respective prevailing macro conditions.
Whether BTC halving will next week turn out to be a ‘buy the rumour, sell the news event’ is arguably less impactful on BTC’s medium term outlook, as BTC price performance will likely continue to be driven by the said supply-demand dynamic and continued demand for BTC ETFs, which combined with the self-reflexive nature of crypto markets is the primary determinant for spot price action.”
Worldcoin To Launch World Chain
Worldcoin is launching its own Layer 2 blockchain called World Chain this summer.
This new blockchain will be built on top of Ethereum for security but will be owned and governed by Worldcoin.
What's the benefit?
Scale Up: Handle more users joining the platform.
Speed Up: Make transactions faster and cheaper.
Reward Humans: Give verified users priority over bots and even some free transaction fees.
In the Numbers 🔢
55%
Crypto VCs are back in love with Web3.
Investments surged 55% in Q1 2024, with the number of deals rising 36% too, according to a Q1 on-chain report by QuickNode and Artemis.
Where's the money going?
AI and Gaming projects are the hottest tickets, attracting the most investment.
Early-stage deals are seeing the biggest growth, with Seed rounds up 53% compared to last quarter.
Major VCs are making big bets.
Venture capital firm Andreessen Horowitz said that it raised $7.2 billion across five different funds
Paradigm led a $225 million round for a new layer-1 blockchain competitor to Solana.
Pantera Capital backed a $21 million raise for a Bitcoin "economic layer" project.
Paradigm is even rumoured to be raising a record-breaking $850 million crypto fund.
Guy At A Club Yelling Into A Girl's Ear
Remember the meme of the guy yelling in a club while the girl clearly doesn't care?
That image, known as "Milk Edinburgh" (because it was taken at a club named Milk), is now being auctioned as an NFT.
The original photographer, David Wilkinson, is teaming up with Feisty DAO to sell the NFT. They helped sell the Dogwifhat dog meme NFT for the pup's owner.
The auction starts April 22nd with a minimum bid of 15 ETH (around $45,000).
The Surfer 🏄
OKX, Binance, and Bybit saw their monthly trading volumes triple since late 2023. Major decentralised exchange Uniswap v3 also experienced a 320% increase in volumes. OKX had a 278% surge in volumes, Binance had a 239% increase, and Bybit added 264%.
Tether, the operator of the USDT stablecoin, is restructuring to expand beyond stablecoin development. The company has introduced four new divisions: Tether Data, Tether Finance, Tether Power, and Tether Edu.
Bitwise's spot bitcoin ETF, BITB, experienced outflows of $7.3 million for the first time on Wednesday. Total net outflows have continued for four consecutive trading days.
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