Biweekly Headlines 2024 Apr W4 – May W1

“Once you fully internalize Bitcoin, you will be free from your intellectual chains.”  – Jimmy Song

Biweekly News Roundup

1.     Fed and Economic Indicators

·       Fed’s decision on benchmark fed funds rate

          As both the economy and inflation exhibit unanticipated strength, the Fed left its benchmark fed funds rate range unchanged at 5.25-5.50%.

·       Impact on U.S. dollar and cryptocurrencies

         The dovish Fed meeting results mean the U.S. dollar’s surge likely topped, helping cryptos, following soft U.S. jobs data.

2.     Bitcoin and Cryptocurrency Performance Metrics

·       Bitcoin’s transaction records and market capitalization

          Three days after the Bitcoin halving, BTC amassed a new all-time high of 926,842 transactions on April 23, surpassing the previous high of over 731,000 transactions reached in December 2023.

          The cryptocurrency industry could hit one billion users by 2025, according to Bitcoin analyst, while Boston Consulting Group estimates by 2030.

          BTC has made it the world’s ninth-largest asset with a $1.3T market capitalization, larger than Meta Platforms, Berkshire Hathway, Visa, or JPMorgan Chase.

·       Comparison with Tesla’s stock performance

          Over the past five years, Bitcoin’s price has risen over 1,180%, while Tesla’s stock price has risen over 806%.

          BTC rose 139% while Tesla fell over 11% over the past 12 months.

          Year-to-date BTC is up 49% while Tesla’s stock price is down 42%.

·       Predictions for Bitcoin’s future prices

          HashKey Capital predicts a $100K–$200K BTC price by the end of 2024.

          Standard Chartered reiterated its year-end bitcoin and ether targets of $150,000 and $8,000, respectively.

3.     Ethereum Network Developments

·       Creation of new wallets and network expansion

          On the 28th and 29th of April, the Ethereum network witnessed the creation of 266.6K new wallets, marking the most substantial two-day surge in network expansion since October 8th and 9th, 2022.

·       Deadline and discussions on spot Ethereum ETFs in the U.S.

          The deadline for the approval of spot Ethereum ETFs in the U.S., which has generated considerable discussion, is May 23.

4.     Global Cryptocurrency Adoption

·       Middle Eastern crypto markets’ growth

          Middle Eastern crypto markets surged by 166% year-over-year, with the UAE leading regional adoption.

·       Germany’s crypto services initiation

          Germany’s LBBW announced that it was launching crypto procurement and custody services later this year.

5.     Cryptocurrency Financial Products

·       Launch and performance of Asia’s first spot bitcoin and ether ETFs

          Asia’s first spot bitcoin and ether ETFs debuted in Hong Kong on Apr. 30 with a first-day trading volume of just $11M.

          Despite an inauspicious beginning, Kraken anticipates $1B AUM in Hong Kong ETFs by 2024 end.

·       Financial results and forecasts for cryptocurrency ETFs

          For the first time since going live on January 11, BlackRock’s spot bitcoin ETF did not draw any investor money, snapping a 71-day inflows streak.

          The total April net outflows of $343.5M have broken the three months of consecutive inflow streak for the spot Bitcoin ETFs.

          BlackRock sees sovereign wealth funds, and pensions coming to Bitcoin ETFs and its BUIDL becomes the largest tokenized treasury fund hitting $375M, toppling Franklin Templeton’s.

6.     Stablecoin Market Dynamics

·       Comparison of USDT and USDC in terms of value and transaction volume

          The current value of USDT, at $33.5B, is over three times the size of USDC, but the transaction volume of USDC has been on the rise since 2024.

          On March 24, 2024, USDC closed the week with almost five times more volume than USDT.

          By April 21, 2024, USDC’s weekly transactions reached $455B, while USDT fell to $89B.

7.     Crypto Mining Developments

·       Marathon’s increased hash rate target for 2024

          Marathon increases the 2024 hash rate target to 50 EH/s, marking more than a 100% increase in the firm’s hash rate since the start of 2024.

8.     Legal and Regulatory Actions in Cryptocurrency

·       Penalties imposed on major cryptocurrency projects and individuals

          The SEC is looking to impose its steepest fine yet on a cryptocurrency project, a $5.3B penalty for Do Kwon and Terraform Labs.

          It comes on the heels of the $4.3B fine imposed on Binance and follows its proposed $1.8B penalty for Ripple.

          The former CEO of Binance, CZ, was sentenced to four months in prison on Apr. 30.

9.     Technological and Governance Innovations

·       U.S. DHS’s launch of a new AI Safety and Security Board

          The U.S. DHS launched new AI Safety and Security Board on the 26th, and the 22-member board includes OpenAI CEO Sam Altman and NVIDIA CEO Jensen Huang.


May 4, 2024

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