Biweekly Headlines 2024 Mar W5 – Apr W1

“If you can’t hold now, you have no chance of holding when the bear market comes. Think of now as practice.”  – Jimmy Song

Biweekly News Roundup

1. Bitcoin and Market Performance

Overview of Bitcoin’s price movements, including record highs and retracements

– Bitcoin hit a record high above $73,500 about three weeks ago and then quicklyretreated to the $61,000 area and retraced to the current $67,600.

– BTC rose 16.6% in March and over 68% in the first quarter.

– Grayscale says multiple metrics make it clear that Bitcoin is in the “middle of the bull run” as BTC once again traded above its 2021 peak.

The increase in derivatives and spot trading volumes

– The CoinDesk 20 Index jumped over 50% in the first three months.

– Derivatives trading volumes surged by 86.5% to a record high of $6.18T.

– Spot trading volume jumped 108% to $2.94T, the highest monthly volume since May 2021.

– The combined spot and derivatives trading volume increased 92.9% to a record $9.12T.

Bitcoin’s historical performance during U.S. election years

– BTC tends to perform well during U.S. election years, historically advancing 100%-200%.

2. Ethereum’s Growth

Ethereum’s earnings in Q1 2024 and its substantial growth in fees and revenues

– Ethereum tripled its earnings in Q1 2024 on a quarter-over-quarter basis, reaching $369M. The amount accounted for a 210% increase year-over-year from $119M in Q1 2023.

– Ethereum Q1 2024 fees and revenues increased 79% and 85% quarter-over-quarter, respectively.

Ethereum’s revenue from transaction fees

– Ethereum racked up $1.2 billion in revenue from transaction fees in Q1 2024, which is 155% more than in the first quarter of last year.

3. Altcoins and Memecoins

The profitability of the memecoin sector and specific examples like Dogecoin

– CoinGecko dubbed the memecoin sector the “most profitable crypto narrative” during the year’s first quarter with 1,312.6% returns on average, the highest among the top tokens by market capitalization.

– The dogecoin price surged to its highest level since December 2021 on Mar. 28, with trading volumes and futures open interest rising significantly.

CryptoPunks NFT sales as an indicator of the NFT market’s health

– CryptoPunks record another $16 million NFT sale in March.

4. Decentralized Exchanges (DEX) and Uniswap

Uniswap’s trading volume milestones and its position as the largest DEX

– Uniswap took 42 months to breach the $1T trading volume milestone — doubling to $2T just 24 months later, larger than Australia, Brazil and South Korea’s GDP.

– Uniswap remains by far the largest DEX by trading volume, having amassed $21.6B over the last week alone.

5. Tokenized Assets and Treasury Markets

The growth in the tokenized Treasury market

– The tokenized Treasury market has mushroomed over the past year, growing nine-fold from $100M in early 2023.

Notable entries by BlackRock and Franklin Templeton

– BlackRock’s tokenized fund quickly rakes in $245M, right behind Franklin Templeton’s older offering.

The market value of Treasury notes tokenized has crossed above $1B for the first time. The tally has risen nearly 10-fold since January 2023 amid elevated interest rates worldwide.

The potential for Ether to avoid being designated as a security

– JPMorgan says Ether could avoid designation as a security with centralization risk easing.

6. Bitcoin ETFs and Cryptocurrency Funds

Growth of IBIT and other related financial products

– IBIT, BlackRock’s spot Bitcoin ETF, is the fastest-growing ETF in the history of ETFs, averages a little over $260M in inflows per trading day.

– IBIT has nearly $18B in assets under management and took only two months to reach the $10B mark — a milestone that took the first gold ETF two years to reach.

– BlackRock has added Goldman Sachs, Citigroup, UBS, Citadel Securities and ABN AMRO as authorized participants for the iShares Bitcoin Trust. This brings the total number of APs to nine.

Fidelity’s application for a spot Ether ETF

– Fidelity filed an S-1 application with the SEC on March 27 to create a spot Ether ETF.

The anticipation of an Australian Monochrome spot Bitcoin ETF

– Australian Monochrome spot Bitcoin ETF is expected to launch within 2 months.

7. Regulation and Crypto Exchanges

The London Stock Exchange’s plans for crypto ETNs

– The London Stock Exchange will accept applications for trading bitcoin and ether crypto exchange traded notes (ETN) from April 8 and will roll out a market for BTC and ETH ETN on May 28.

The UK’s regulatory adjustments aimed at becoming a crypto hub

Regulators have been moving to make the country more crypto-friendly following several announcements from the U.K. government to make the country a crypto hub.  

Coinbase’s acquisition of a Canadian license

– Coinbase achieved Canadian license that makes it Canada’s biggest registered crypto exchange.

8. Legal and Institutional Moves

Sam Bankman-Fried’s sentencing and FTX’s plans to sell its Solana holdings

– On March 28, Sam Bankman-Fried was sentenced to 25 years in prison and fined $11B on seven counts of fraud and conspiracy.

– FTX will sell its balance of 41 million Solana, worth $7.65B at the time of publication, to institutional investors at around $60, or a 68% discount to its current market price.

BTIG’s revised Microstrategy price target

– BTIG raised its Microstrategy price target to $1,800 from $780 with the shares’ outsized gains up 155% year-to-date.

April 6, 2024

Add a Comment

Your email address will not be published. Required fields are marked *