Crypto Hangover 🍺
Market trying to find ground with mixed macro signals. US elections & crypto's regulatory landscape. $4.2B boost for stablecoins. Mango market exploiter trial. Gen Z & millennials going all in.
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Bitcoin and its crypto buddies are feeling a bit hungover after Monday's rally.
BTC is back below $68K.
US inflation rate came in at 3.5% year-on-year, above the 3.4% expected by economists surveyed by Dow Jones and 0.3 percentage points higher than in February.
US stock futures dropped on the announcement. So did Crypto.
What happened?
Big drop in leveraged bets on rising prices got liquidated.
In the past 24 hours , 115,421 traders were liquidated, the total liquidations comes in at $308.87 million
The largest single liquidation order happened on Bybit - BTCUSD value $8.38M
This means investors who borrowed money to buy crypto and hoped for a price increase got burned.
Whales might be manipulating the price
Some analysts believe whales (large investors) are intentionally pushing the price down to buy more Bitcoin later.
Their target?
The upcoming CPI data release.
If the CPI report shows higher inflation than expected, Bitcoin might fall further.
So it did.
After pushing the price down, whales could swoop in and buy at a lower price, potentially causing a quick rebound.
Long-term holders cool off on profit-taking
Glassnode Insights report said.
"Profit-taking, typically by long-term holders, tends to ramp up around all-time high breaks, but is cooling down in recent weeks."
Glassnode warns of potential corrections exceeding 10%, which have been common in the past. So far, we've only seen a couple of minor dips since the March peak.
Are the bulls on their way?
According to Bitfinex analysts, prepare for a potential 160% increase, pushing Bitcoin to a new all-time high of between $150,000 and $169,000 within the next 14 months.
But, hold on
This pre-halving rally is unprecedented, meaning there could be significant selling pressure from those who bought in above $60,000.
Plus, the Federal Reserve's tightening could throw a wrench in the party, potentially causing a price dip around the halving.
However, there's a silver lining. Bitcoin ETFs are gobbling up Bitcoin, accumulating 4.28% of the circulating supply so far.
This institutional interest could provide long-term support for the price.
Block That Quote 🎙️
US Senator Cynthia Lummis
“There are a number of high-ranking policy positions that are held by people who are threatened by Bitcoin because they know they can't control it.”
Senator Lummis suggests upcoming elections could significantly impact cryptocurrency's regulatory landscape, particularly within the pivotal Senate Banking Committee.
Speaking at the Bitcoin Policy Summit, she highlighted how political shifts could benefit crypto advocacy.
“We're trying to view it [crypto] as a negative and foresee how we should regulate the negative side of it” she said.
Mango Market Exploiter Goes To Trial
Avraham Eisenberg is on trial for allegedly manipulating DeFi exchange Mango Markets to steal $116 million in crypto.
Eisenberg claims it was a "trading strategy," but prosecutors say it was fraud.
Here's the breakdown
Eisenberg allegedly inflated Mango's token price, then used it as collateral for massive loans.
This drained Mango's treasury, leaving it insolvent.
He later returned some funds, but now faces serious charges.
Potential penalty? Up to 20 years in prison.
In the Numbers 🔢
$4.2 billion
The amount investors poured in stablecoins in just the first week of April.
Stablecoin demand heats up.
This is the highest rate of new stablecoin creation since early 2022.
What's driving the surge?
Tether (USDT) leads the charge: Over half of the new stablecoins ($2.4 billion) are USDT, the stablecoin with the highest market cap, over $100 billion.
Other stablecoins see growth too: First Digital USD (FDUSD) and Ethena USDe are gaining traction, with FDUSD jumping 42% this month.
Launchpools and DeFi fueling demand: Binance launchpools using FDUSD and DeFi platforms like Ethena are attracting investors.
Gen Z and Millennials Going All In
A new survey shows that 1 in 5 Americans under 42 own crypto, making it almost as popular as real estate for younger generations.
Gen Z leads the charge: This generation is more likely to own crypto than stocks, with only 18% opting for traditional investments.
Not all generations are on board: Baby Boomers remain skeptical, with only 5% owning crypto. Gen X falls somewhere in between, with 10% ownership.
Why the shift? Soaring interest rates and skyrocketing home prices have made the American dream of buying a house seem distant for many young adults. Crypto, on the other hand, offers a perceived chance at high returns.
The Surfer 🏄
A new survey shows consumers are warming up to Bitcoin and cryptocurrencies in general. More than half (52%) now believe crypto will be an important asset class and payment method. That's up from less than 40% in September 2023.
Stepn is airdropping bonus points worth $30 million of GMT tokens to its users. Stepn is distributing 100 million "FSL" points that can be exchanged for GMT tokens.
Former Ethereum adviser Steven Nerayoff has filed a $9.6 billion lawsuit against the US government. Nerayoff claims false charges and mistreatment by federal agents between 2019 and 2023.
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