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Cardano Founder Celebrates Next Step To Reach ‘Global Scale’
Charles Hoskinson, the founder of Cardano, has expressed his enthusiasm for the formation of PRAGMA, a new independent open source association. This initiative marks a pivotal move towards achieving global scalability—a goal that Cardano aims to fulfill as it endeavors to become the financial operating system of the world.
Cardano Makes Crucial Step ForwardDuring a recent update shared on X, the Cardano Foundation, alongside partners Blink Labs, dcSpark, Sundae Labs, and TxPipe, announced the launch of PRAGMA. This association aims to foster a robust and diverse ecosystem, crucial for the scalability and resilience required at a global level.
Hoskinson highlighted the critical nature of such developments in his statement, saying, “Multiple clients and a diverse and resilient ecosystem of open source projects and utilities are required for a global scale protocol seeking to build the financial operating system of the world. I’m excited to see groups come together to start building these clients and projects.”
Interestingly, PRAGMA’s formation comes as a distinct and independent initiative within the ADA community, not directly coordinated with existing governance bodies such as IOHK. When questioned about the new group’s relation to these entities, Hoskinson stated, “They decided to form an entirely different group and not coordinate with Intersect. I’ve never had a formal meeting with them about their intent or the exactly structure and funding behind Pragma. I was actually only recently informed about their existence.”
He further elaborated on the potential benefits of PRAGMA’s independence, stating, “I’m glad to see the community forming their own structures and development priorities. While Pragma will not speed up feature delivery to Cardano, it does add operational resilience and also a second set of eyes on the formal specifications of Cardano.”
What Pragma Is AboutThe official press release by the Cardano Foundation sheds more light on PRAGMA’s mission and initial projects. It stated that this new not-for-profit open source association is dedicated to advancing blockchain software projects and fostering an alternative open-source ecosystem for ADA and potentially other blockchains. The signing of statutes, scheduled for 22 April, signifies the formal commencement of the association’s activities.
Sebastian Bode, Director of Engineering at the Cardano Foundation and a Board Member of PRAGMA, underscored the collaborative spirit driving this initiative. “PRAGMA represents an important step forward in the Cardano Foundation’s mission to support Cardano becoming a public infrastructure. Together, we are a team of passionate software engineers from various backgrounds who build open-source tools for developers aiming for mass adoption of blockchain.”
PRAGMA’s initial focus will be on a select number of pivotal projects. One such project is Amaru, which is the development of a full node written in Rust and designed to operate side-by-side with the existing Haskell nodes in a fully interoperable manner. Another key initiative is Aiken, a smart contract platform that aims to both simplify and enhance the development of smart contracts.
Frederik Gregaard, CEO of the Cardano Foundation, emphasized the broader implications of PRAGMA’s establishment for the ecosystem. “At the Cardano Foundation we are advocates for the open source maturity of the Cardano ecosystem, supporting collaborative initiatives that increase the diversity, as well as the quality and quantity of blockchain solutions. PRAGMA represents a significant milestone on this path.”
Looking ahead, PRAGMA plans to expand its membership to developers within the broader ADA ecosystem by 2025. This long-term strategy aims not only to integrate existing projects but also to stimulate the emergence of new and meaningful tools that could fundamentally enhance blockchain technology’s adoption and functionality.
At press time, ADA traded at $0.517.
Андре Драгош: «Благодаря халвингу биткоина рынок постепенно восстанавливается»
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Reuters: Государственная нефтяная компания Венесуэлы перейдет на расчеты в USDT
Всем с пляжа! Работают «Хибины»
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Рауль Пал: «В 2030 году криптовалютами будет владеть половина мирового населения»
Crypto Platform Case: SEC Prosecutors Axed Or Forced To Quit After ‘Gross Abuse Of Power’
The relationship between the US Securities and Exchange Commission (SEC) and the burgeoning crypto industry has taken a dramatic turn for the worse. A recent court ruling against the SEC in a case against crypto platform DEBT Box has exposed accusations of misconduct and cast doubt on the agency’s regulatory tactics.
The controversy centers around a lawsuit filed by the SEC in August 2023, alleging a $50 million crypto fraud scheme perpetrated by DEBT Box. To halt the Utah-based company’s operations, the SEC secured a temporary freeze on its assets and restraining orders against its executives.
However, the case unraveled spectacularly in March 2024 when Judge Robert J. Shelby of the Utah District Court sanctioned the SEC for “egregious misrepresentations” during the initial hearing.
SEC UNDER FIRE: LAWYERS RESIGN IN WAKE OF CRYPTO CASE SCANDAL
– Two SEC lawyers, Michael Welsh and Joseph Watkins, resigned after a federal judge sanctioned the agency for “gross abuse of power” in a crypto case.
– The case involved Digital Licensing Inc., known as DEBT Box,… https://t.co/sXqUDdAvvz pic.twitter.com/Dz3v4sGYzK
— BSCN (@BSCNews) April 22, 2024
Crypto Case: SEC Accused Of Fabricating EvidenceJudge Shelby’s scathing ruling accused the SEC of presenting evidence that “lacked any basis in reality” and was “deliberately misleading.” The court documents allege that SEC attorneys, led by Michael Welsh and Joseph Watkins, knowingly submitted false information to obtain the emergency freeze.
When questioned about the discrepancies, Welsh reportedly attempted to “gloss over” the issue instead of correcting the record. These allegations have severely damaged the SEC’s credibility and raised questions about its commitment to fair and ethical legal practices.
Lawyer Resignations Raise Questions About Internal DissentThe fallout from the court’s decision has extended beyond public perception. Significantly, both Welsh and Watkins resigned from the SEC earlier this month. While the official reasons remain undisclosed, sources close to the case suggest they were pressured to leave after the judge’s harsh rebuke. These resignations could point to internal dissent within the SEC regarding its crypto enforcement strategy.
‘Regulation By Enforcement’ Strategy Draws CriticismThe DEBT Box case is not an isolated incident. The SEC, under Chairman Gary Gensler, has faced criticism for its “regulation by enforcement” approach towards the crypto industry. Critics argue that instead of providing clear regulatory guidelines, the SEC relies heavily on lawsuits and enforcement actions to police the space.
This strategy, they claim, creates significant uncertainty for businesses and stifles innovation in the rapidly evolving crypto landscape.
The recent court ruling and lawyer resignations add fuel to this criticism. Critics argue that the SEC’s aggressive tactics, exemplified by the DEBT Box case, could ultimately undermine US competitiveness in the global digital asset market.
Featured image from Pixabay, chart from TradingView
Посольство Китая в Анголе призвало граждан воздержаться от майнинга криптовалют
Кристиано Вентричелли: «Для токенизации активов подходит не только блокчейн Эфириума»
Ripple Responds To SEC Remedies With A $10 Million Power Move
In the XRP lawsuit, Ripple has filed its opposition to the US Securities and Exchange Commission’s (SEC) motion for remedies and entry of final judgment. The fintech company counters the agency’s for nearly $2 billion in penalties with a proposed fine of just $10 million maximum. Filed late Monday, Ripple’s 186-page opposition document details its arguments against the SEC’s severe demands following a court ruling that found Ripple in violation of securities laws by selling XRP to institutional investors without proper registration.
Ripple Vs. SEC: $10 Million Or $2 Billion?Ripple begins by acknowledging the violation, affirming its recognition of the court’s decision and detailing its compliance adjustments. “Ripple has publicly acknowledged that ruling, and does so again now. It has changed the way it sells XRP and changed its contracts to avoid the problems identified by this Court,” the document states. This acknowledgment is crucial as it sets the stage for the company’s argument that no further punitive measures, such as an injunction, are necessary.
The company strongly opposes the SEC’s proposed injunction, arguing that it has already implemented significant changes to prevent future violations. A key passage from the document asserts, “The SEC fails to establish a reasonable likelihood of future violations.” This argument is built on the premise that Ripple’s proactive remedial measures effectively mitigate the risk of repeating the past missteps.
Addressing the SEC’s demand for disgorgement, the fintech company contends that the request is unwarranted because the SEC has not demonstrated that Ripple’s actions caused any pecuniary harm to investors. The opposition states, “The SEC fails to show that any disgorgement is warranted. Govil bars disgorgement because the SEC cannot show pecuniary harm.” This point is critical in Ripple’s defense, emphasizing the lack of direct financial damage to investors as a result of its actions.
Regarding civil penalties, Ripple argues for a significantly reduced amount, citing the disproportionality of the SEC’s request compared to penalties in similar cases. “ANY CIVIL PENALTY SHOULD NOT EXCEED $10 MILLION,” the document states, suggesting that such a figure is more in line with precedent and the nature of the violations.
Legal precedents play a significant role in the defense, with numerous citations intended to bolster its position against harsh penalties. One such precedent is Arthur Lipper Corp. v. SEC, which the company uses to argue against the necessity of an injunction. The document notes that an injunction serves to “prevent threatened future harm” and requires “positive proof of a reasonable likelihood that past wrongdoing will recur,” something Ripple contends is not present given its corrective actions.
Reactions From The XRP Lawyer CommunityReactions from the pro-XRP legal community reflect a belief in the strength of arguments. Bill Morgan, a notable pro-XRP lawyer, commented on the strength of Ripple’s position against disgorgement, “In summary, I think this argument is correct and disgorgement should not be awarded where it would give investors a windfall. Ripple looks in good shape for Torres to apply Govil and order no disgorgement.”
Additionally, Jeremy Hogan argued via X, “The SEC has BIG legal problems to address if it wants to get a win against Ripple, and I still think it squandered its opportunity to get ahead with its first brief.”
James “MetaLawMan” Murphy explained what to expect next. According to him, Judge Torres has not set a deadline for a decision. “But, I would expect that this decision will come substantially quicker than the summary judgment rulings. Best guess would be 60 to 90 days after the last brief (May 6).”
At press time, XRP traded at $0.54921, up 2.5% in the last 24 hours.
Стратегическая диспозиция по рублю
В среднесрочной перспективе тренд на девальвацию рубля предопределен в соответствии с актуальной конфигурацией трансграничных потоков капитала и приростом рублевой денежной массы.
В данном случае не так важно, будет ли девальвация ступенчатой (агрессивный период ослабления рубля с последующей консолидацией на 6-10 месяцев) или в плавном непрерывном режиме низкой интенсивности.
Что следует учитывать в контексте рубля? Темпы прироста рублевой денежной, специфику трансграничных расчетов, склонность к оттоку капитала, величину профицита счета текущих операций.
Сейчас двухлетние темпы прироста денежной массы в России составляют 46-50% (это около 32 трлн руб чистого прироста за два года) по сравнению с 13-26%, которые наблюдались с 2015 по 2021 (в среднем чуть больше 20%), т.е. с 2022 темпы выросли в 2.5 раза в относительном выражении. Основным источником прироста денежной массы являются кредитный и бюджетный каналы.
Насыщение экономики ликвидностью создает платежеспособный спрос на импорт товаров и услуг и увеличивает способность (но не всегда склонность) к оттоку капитала. Рублевая денежная масса, выраженная в долларах, имеет высокую долгосрочную корреляцию с интегральным оттоком валюты по всем направлениям.
Чем балансируется дисбаланс избыточности рублевой денежной массы в контексте валютного рынка?
• Высоким притоком валюты (экспорт товаров и услуг, инвестсчета в рамках прямых или портфельных инвестиций, внешнее фондирование и так далее). Так было в 2004-2008, когда высокие темпы роста денежной массы балансировались рекордным за всю историю России притоком капитала относительно ВВП и рубль укреплялся, а резервы росли.
• Рыночными механизмами через курс рубля. В среднесрочной перспективе среднеквартальный курс рубля балансируется в соответствии с профицитом СТО. Другими словами, если профицита СТО недостаточно, а денежная масса растет быстро, курс рубля ослабевает в темпах прироста денежной массы, чтобы сбить избыточный платежеспособный спрос на импорт и отток капитала – это было в середине 2023.
В 2015-2020 профицит СТО был относительно слабым, но тогда денежная масса росла экстремально низкими темпами, и это позволяло курсу рубля быть устойчивым.
• Стравливание золотовалютных резервов (ограниченно эффективная мера), чтобы устранить разрывы в платежном балансе, генерируемыми частным сектором экономики, и стабилизировать валютный рынок. Примерно этим занимается Банк России с 2023, «погасив» ЗВР на 10 млрд в 2023 и еще на 6.9 млрд в 1кв24.
Сброс ЗВР не может продолжаться вечно, учитывая, что ликвидных и доступных к продаже ЗВР осталось достаточно мало (около 200 млрд долл).
• Административные меры контроля капитала (эффективны исключительно краткосрочно в режиме экстренного закрытия дыр в пределах 1-6 месяцев, но крайне неэффективны долгосрочно). Всегда, во все времена и во всех странах мира административные меры контроля капитала приводили к появлению черного рынка валюты, множественным курсам и неизбежной будущей девальвации опережающими темпами. Можно держать курс два-три года, а потом девальвировать в три раза, законы экономики обмануть и обуздать невозможно.
Хороший сценарий для России заключается в темпах девальвации плюс-минус на уровне прироста денежной массы, но может быть и плохой сценарий.
• Специфика трансграничных расчетов с 2022 предполагает накопление дебиторки и торговых кредитов из-за особых партнеров (Белоруссия, Турция, страны СНГ) и часто возникающих трудностей в расчетах с Китаем и Индией (лаги в расчетах и ограниченно конвертируемая валюта).
• По комплексу причин может возникнуть концентрированный отток капитала, который был в 3кв23, что усиливало давление на рубль.
• Может произойти сжатие СТО из-за усиление контроля за санкциями, падения цен, спроса на сырье вследствие глобального кризиса.
Поэтому прорыв выше сотки – вопрос времени, в конце 2024 – скорее да, чем нет.
Что следует учитывать в новой санкционной реальности в России?
• Обнулены потоки международного капитала (нерезидентов), обусловленного дифференциалом процентных ставок, уровнем рентабельности и скоростью роста финансово-экономических показателей в России. Ни уровень ставок в России, ни прибыльность бизнеса, ни конъюнктурные особенности теперь не влияют на приток или отток иностранного капитала.
• Блокировки российских резидентов делают невозможным свободный отток капитала резидентов РФ так, как это было до 2022 (прямые и портфельные внешние инвестиции практически обнулены с 2022), а весь отток концентрируется в денежных активах, торговых кредитах и дебиторке.
• Растет доля расчетов в нацвалюте и валюте нейтральных стран растет. До 2022 около 85% экспорта и 66% импорта было в валюте недружественных стран, а теперь 25% экспорта и 28% импорта.
• Свыше 40% в структуре оттока валюты из России с 2022 формировал внешний долг (необходимость погашения), а к 2024 практически весь внешний долг погашен, что в будущем снизит спрос на валюту.
Все же, одним из основным направлений аккумуляции спроса на валюту является внешняя торговля (импорт товаров и услуг).
Способность к импорту обусловлена текущим движением валюты (отображается в платежном балансе), накоплением валютных остатков на внутренних и внешних денежных и инвестиционных счетах и наличием рублевых потоков (доходов) и остатков (денежная масса).
Рублевые потоки и активы оказывают непосредственное давление на валютный рынок через конверсионные операции.
На графике отображена высокая корреляция между рублевой М2, выраженной в долларах, и объемом импорта товаров и услуг за год.
Что это означает? При высоких темпах роста денежной массы курс рубля выступает, как естественный рыночный ограничитель избыточного спроса на импорт без возможности абсорбации через экспорт и инвестприток валюты.
С середины 2022 резко выросла М2 в долларах из-за крепкого рубля, что было компенсировано опережающей девальвацией с июня по сентября 2023.
Продление требований по возврату валютной выручки до конца 2024.
Согласно данным Ведомостей власти решили продлить действие указана №771, введенного в октябре 2023, по репатриации 80% валютной выручки в 60-дневнй срок на внутренний валютный рынок и реализации не менее 90% поступившего объема. Указ действует до 30 апреля.
️• Компании выступали против, мотивируя это повышением издержек. В этом есть определенная логика, т.к. не вся выручка, формально полученная за экспорт, доступа для репатриации из-за специфики расчетов в новой санкционной реальности.
• Растут поставки в долг (товар отправлен, платеж не получен). По данным платежного баланса речь и может идти о сумме свыше 100 млрд долл с начала 2022.
• Время исполнения расчетов может возрасти, в том числе используя сложную цепочку контрагентов для обхода вторичных санкций.
• При получении выручки на счет российской компании или аффилированных компаний требуется не менее сложная спецоперация по выводу денег в Россию, причем зачастую это самое проблемное звено цепочки, т.к. внешние контрагенты избегают любого прямого или косвенного ассоциирования с Россией.
• Подобная схема делает невозможным взаиморасчеты и любые формы квазибартер или бартера. Например, российская компания поставляет в Китай нефть, договаривается с китайскими посредниками и получает китайское промышленное оборудование для НПЗ.
▪️Центробанк выступал преимущественно нейтрально или против возврата валютной выручки, мотивируя свою позицию бессмысленностью схемы на макро-уровне. Экспортеры, которые завели валюту на внутренний рынок, могли сразу использовать возможность покупки и последующего вывода, где конечное сальдо могло быть близко к нулю (условно, завели миллиард, вывели 800 млн).
▪️По факту возврат валютной выручки работал и достаточно эффективно. Абстрагируясь от курса рубля, приток валюты действительно вырос. С окт.23 по мар.24 среднемесячный объем продажи составил 12.8 млрд vs 7.7 млрд в среднем за полугодие до внедрения указа. Прирост на 5 млрд в месяц или 67%, тогда как средние цены нефти и газа изменились незначительно за указанный период.
4-5 млрд в месяц – этот тот объем валюты, которого не хватало, чтобы сгладить разрывы по платежному балансу, что в конечном итоге и привело к стабилизации курса рубля. Надолго ли?
На рубль действуют, как стабилизирующие, так и дестабилизирующие факторы?
Стабилизирующие факторы:
• Рост доли расчетов по внешней торговли в рублях
• Снижение интенсивности погашения внешнего долга
• Ограничительные меры для российских резидентов по инвестированию на внешнем рынке.
Дестабилизирующие факторы:
• Обрушение до нуля притока иностранного капитала в санкционном режиме (свыше 95% прямых и портфельных инвестиций генерировали недружественные страны до 2022).
• Высокий темп роста денежной массы, повышающий способность к оттоку капитала
• Значительные лаги в расчетах по экспортным контрактам и критические трудности в валютных транзакциях
• Риски падения спроса и/или цен на сырье из-за усиления санкционного контроля и/или глобального кризиса
• Потенциальное бегство капитала, если что-то пойдет не так.
Интегрально, учитывая тенденцию прироста денежной массы и валютный баланс, спрос на валюту практически всегда будет выше, чем предложение, что в долгосрочной перспективе предопределит тренд на девальвацию рубля.
Валютный контроль или обязательства по продаже валютной выручки – временные решения в рамках операционных мер реагирования, но нужно быть готовым к тому, что девальвация, вероятно, будет неизбежно – вопрос в масштабе и в тайминге.
‘Buy Bitcoin’ Note From Janet Yellen Testimony Nears $140,000 In Auction
In a significant development, a legal pad with the handwritten words “Buy Bitcoin” is currently garnering significant attention in the form of bidding, reaching nearly $140,000 in an ongoing online auction, as reported by Bloomberg.
Janet Yellen’s ‘Buy Bitcoin’ Sign Sparks Auction FrenzyThe message, a rallying cry for cryptocurrency enthusiasts, gained notoriety after being displayed behind former Federal Reserve (Fed) Chair Janet Yellen during her congressional testimony about seven years ago. Bidding on the ink drawing is expected to close late Wednesday.
According to the report, the sign’s improvised creation can be attributed to Christian Langalis, a 22-year-old Bitcoin owner and intern at the libertarian think tank Cato Institute at the time.
Seeing an opportunity, Langalis positioned himself behind Yellen during her appearance before the House Financial Services Committee in July 2017, quickly jotting down the now-famous phrase.
However, his bold publicity caught the cameras’ attention, and he was quickly removed from the hearing. Unexpectedly, Langalis received about seven Bitcoin in unsolicited donations as a result.
During that period, BTC was experiencing its initial surge in public consciousness. It traded at around $2,300, a significant increase from its value of less than $1,000 just six months earlier. The market’s leading cryptocurrency skyrocketed over 13,000% in 2017, followed by a 74% crash the following year.
Today, with established financial institutions such as BlackRock and Fidelity embracing cryptocurrencies through the spot Bitcoin ETF market, Langalis is looking to capitalize on the momentum that pushed BTC to an all-time high of $73,700 on March 14.
Impressive Bids In AuctionAccording to Bloomberg, in 2019, Langalis sold 21 replica editions of the iconic sign, with an average realized price of 0.8 BTC each. These numbered and time-stamped replicas, “meticulously” crafted by hand, were well-received by crypto supporters.
Recently, Langalis was offered five Bitcoin, valued at approximately $330,000, for the original sign but decided to opt for the auction route, hoping to achieve an even higher price that would benefit his Bitcoin software work and his family.
The auction listing describes the item as an “Ink Drawing on Legal Pad” weighing half a pound. The legal pad also contains Langalis’s notes from the momentous hearing.
The page featuring the sign drawing was initially detached from the notepad but has since been reattached using clear archival wire, preserving this “historical artifact.”
The auction winner will be announced at Pubkey, a BTC-themed eatery in New York City, where Langalis currently works as a co-working space.
Currently trading at $66,400, BTC is inching closer to the $70,000 barrier that has acted as a notable wall of resistance for the largest cryptocurrency on the market over the past month.
Featured image from Shutterstock, chart from TradingView.com
Halved Revenue? Bitcoin Miners Don’t Care As Hashrate Sets New ATH
The fourth Halving has now been completed for Bitcoin. Here’s how the miners have reacted to the event regarding their total hashrate.
Bitcoin 7-Day Average Hashrate Hit New All-Time High RecentlyHalving is a periodic event for Bitcoin in which its block rewards—that is, the rewards that miners receive for solving blocks on the network—are permanently cut in half.
This event takes place roughly every four years, and the latest one was completed just recently. This was the fourth Halving the cryptocurrency has gone through, and its block rewards have now come down to 3.125 BTC from 6.25 BTC.
Bitcoin miners earn their living from two sources: the block rewards and transaction fees. Historically, however, the former has been a much more dominant income stream, as transaction fees have often stayed relatively low.
Since the Halvings drastically affect the block rewards, these events are naturally relevant for the miners. One way to track how the miners react to these events is through their hashrate.
The “hashrate” refers to the computing power the Bitcoin miners have connected to the network. Changes in this value can reflect the sentiment among the miners.
When the indicator goes up, it means that miners are finding the blockchain attractive to mine on right now. On the other hand, a decline could imply that some miners are finding it unprofitable to mine BTC and have decided to disconnect from the network.
As analyst James Van Straten pointed out in a post on X, the Bitcoin mining hashrate has always gone down following Halving events.
But what about this time? Are miners capitulating? Here is a chart that shows the trend in the 7-day average Bitcoin mining hashrate over the past year.
As the graph shows, the 7-day average Bitcoin hashrate actually set a new all-time high (ATH) of 650 EH/s on the day of the Halving. This could mean that miners weren’t worried about the Halving, or they may just have made a final push to get in on the higher block rewards while they still lasted.
The metric has declined since the event, implying some miners have disconnected. The indicator, however, is still floating around 629 EH/s, suggesting that the drawdown isn’t significant and that the hashrate continues to be around ATH levels.
Thus, only a few miners have been shaken out so far. However, this still doesn’t necessarily mean that miners are more persistent this time. As Straten has discussed in another X post, the miner revenue from the fees has been quite extraordinary since the Halving.
This spike in transaction fees has come due to the arrival of Runes for the cryptocurrency, a new protocol that allows users to create fungible tokens on the Bitcoin network.
While the hype has cooled down a bit, as fees now account for 30% of the total miner revenue instead of more than 75% as it was earlier, the revenue percentage they are contributing to is still quite high compared to the past, and this may be the reason why miners are sticking around post-halving.
BTC PriceAt the time of writing, Bitcoin is trading at around $66,100, up more than 3% over the past week.
Bitcoin Versus Gold: Analyst Says The Yellow Metal Is A “Slow-Moving Rug Pull”
Taking to X on April 22, Willy Woo, an on-chain analyst, notes that the tides are turning in the age-old battle between gold and Bitcoin. While gold has enjoyed a 6,000-year reign as a scarce asset, advancements in mining technology have eroded its scarcity narrative, going by the accelerated production rate in the past few decades.
Gold Versus Bitcoin: Which Is A Better Store Of Value?Meanwhile, Bitcoin’s supply is decreasing as gold risks an oversupply in the next few years. With the Halving event on April 20, the BTC’s scarcity is only set to become even more pronounced in the years to come.
Since launching, the Bitcoin network has reduced daily issuance to miners through Halving. In the fifth epoch, the network rewards 3.125 BTC to every successful miner or mining pool every 10 minutes. This rate is down 50% from epoch four when rewards stood at 6.25 BTC per block.
Overall, Gold and Bitcoin are considered safe-haven assets. However, over the past centuries, the scarcity of gold has made it the preferred store of value assets for banks and countries. Nearly all central banks in the world hold gold in their reserves.
However, due to technological advancements increased production rate, Woo now thinks gold holders will face rough times in the coming years as new supply floods the market.
Woo backs Bitcoin, a digital asset considered digital gold due to its predetermined and transparent issuance schedule. Traditional gold investors have failed to recognize that the yellow metal is a “slow-moving rug pull” playing out over the next decade, Woo says.
Is BTC Preparing For A Sharp Rally?In another post on X, Woo argues that the Bitcoin Price ratio suggests that the coin is gearing for a mega run upward. The rally, the analyst continues, has not even started despite Bitcoin surging to as high as $73,800 in March 2024.
The spike in the coin’s valuation above the previous all-time high of $70,000 was a deviation from historical performance.
Even so, if history guides and prices surge even higher in the current epoch, a new all-time high will be recorded in alignment with Woo’s projections.
By analyzing how the Bitcoin Price ratio behaved relative to previous Halving events, Woo now thinks the current leg up will be a unique blend of solid market demand and dominance.
Mt. Gox Users Finally Receive Payments, BTC, Bitcoin Cash Selling Pressure Incoming?
Bitcoin exchange Mt. Gox has reportedly begun repaying its users, providing a glimmer of hope for those affected by the exchange’s infamous hack over a decade ago.
The trustee of Mt. Gox confirmed the verification process for eligible repayment clients three months ago, and now users are seeing actual payments being made. However, the repayment process raises concerns about the potential impact on the Bitcoin market.
Mt. Gox Users Receive Payments, But Challenges PersistUsers of the social media site Reddit have reported receiving payments from Mt. Gox, as the trustee added specific amounts and completion dates to their claim accounts.
While some users expressed satisfaction with the repayment process and the absence of fees, others faced challenges such as failed transfers and extended deadlines.
As seen in the image below, the trustee has been regularly updating the redemption tables to provide transparency on progress. However, users and customers of the defunct exchange remain concerned about the fees incurred during the redemption process.
As noted in the image, the payments made so far have been cash redemptions, leaving BTC and Bitcoin Cash payments pending. If users decide to sell the tokens they received, this is expected to impact the prices of both cryptocurrencies further.
200,000 BTC To Be Release And Bitcoin Price OutlookWith over 10 years passing since the hack that resulted in the loss of 809,000 BTC, the release of 200,000 BTC to users could potentially impact the cryptocurrency’s price.
Additionally, Mt. Gox still holds 143,000 BCH and 69 billion Japanese yen, adding further complexity to the situation. The potential selling of the received BTC by users waiting for their funds for years might dampen Bitcoin’s bullish sentiment and the ongoing price recovery.
While the amount of cash refunded has not been disclosed, it has come to light that users are being paid in Circle’s USDC stablecoin. This leaves Mt. Gox users who requested to be paid in BTC or Bitcoin Cash as key players in the market, as they could play a significant role in the current market conditions.
The timing of the repayment and the users’ strategy toward holding or selling their BTC and Bitcoin Cash are critical factors determining the long-term effects on Bitcoin’s price.
Currently, BTC is trading at $65,900, showcasing a 1.9% surge within the last 24 hours. The $60,000 mark has emerged as a crucial threshold for BTC bulls striving to establish a strong consolidation above this level.
On the other hand, Bitcoin Cash (BCH) is trading at $510, reflecting a 2.1% increase over the past 24 hours and an impressive 8.5% growth over the past month.
Featured image from Shutterstock, chart from TradingView.com
Investors Panic: $206 Million Flees Crypto Funds As Interest Rate Fears Mount, CoinShares Reports
Global crypto investment products saw a net outflow of $206 million last week, reflecting investor concerns over the “potential impacts of Federal Reserve policy decisions on interest rates,” as reported by Coinshares.
Global Impact Of Crypto Outflows On Bitcoin ETFs And Market VolumeCoinShares revealed that the recorded net outflow of $206 million marks the second consecutive week of outflows, driven by expectations that the Federal Reserve will maintain high interest rates for an extended period.
The outflows were particularly notable in crypto investment products offered by asset managers such as Ark Invest, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares.
CoinShares Head of Research James Butterfill noted:
The data suggests appetite from ETP/ETF investors continues to wane, likely off the back of expectations that the FED is likely to keep interest rates at these high levels for longer than expected.
Interestingly, global exchange-traded products saw a slight decline in trading volume last week, totaling $18 billion, which accounted for 28% of the total Bitcoin trading volume. This figure marks a decrease from the 55% observed a month ago.
The net outflows in the US spot Bitcoin ETFs significantly contributed to the global weekly outflow, reaching $204.3 million.
However, amidst this trend, BlackRock’s IBIT emerged as the sole spot for Bitcoin ETFs to sustain weekly inflows. It garnered $165.4 million in inflows, prolonging its streak to 69 consecutive days before the Bitcoin Halving.
Waking up on 4/20 to see $IBIT took in cash for the 69th straight day, which was also the halving. It’s a little too perfect https://t.co/7Z8W3t9L7h
— Eric Balchunas (@EricBalchunas) April 20, 2024
Region-Based Crypto Fund Flows And Market TrendsAccording to the coinshares report, adding crypto futures products in the United States led to total net outflows of $244 million last week.
Conversely, Canada and Switzerland-based funds saw net inflows of $30 million and $8 million, respectively. Global Bitcoin funds accounted for $192 million of the total net weekly outflows.
Notably, short-Bitcoin products experienced minimal outflows of $300,000 despite the outflows, indicating that few investors saw this as an opportunity to short, according to Butterfill.
Furthermore, Ethereum-based investment vehicles carried on with their outflow streak for the sixth consecutive week, with $34 million in outflow. On the other hand, Litecoin and Chainlink products saw inflows of $3.2 million and $1.7 million, respectively.
Meanwhile, blockchain equities faced an eleventh consecutive week of outflows totaling $9 million. James Butterfill states this is so “as investors continue to worry over the consequences of the halving on mining companies.”
Amidst these fund flows, the overall crypto market has shown a slight uptick in the past 24 hours. Bitcoin, the largest crypto by market capitalization, recorded a 1.2% increase, while Ethereum, the second-largest, saw nearly 1% growth over the same period.
This price action coincided with Bitcoin’s fourth halving on April 20, reducing miners’ block subsidy rewards from 6.25 BTC to 3.125 BTC.
Featured image from Unsplash, Chart from TradingView
BlackRock’s Bitcoin ETF Nears New Record With 69-Day Inflow Streak
The Bitcoin ETF market has witnessed a notable inflow streak, with BlackRock’s iShares Bitcoin Trust ETF (IBIT) leading the race. Since gaining approval from the US Securities and Exchange Commission (SEC) on January 10, the ETF market has experienced over three months of trading.
However, BlackRock stands out as the frontrunner, boasting an impressive inflow streak of 69 consecutive days, on the verge of setting a new record.
Bloomberg ETF expert Eric Balchunas highlights this achievement, underscoring the growing interest in BlackRock’s Bitcoin ETF and the overall adoption of the largest cryptocurrency in the market.
BlackRock’s Bitcoin ETF Nearing Top 10 ListBlackRock’s iShares Bitcoin Trust ETF has consistently attracted inflows for 69 consecutive days, inching closer to a new record. Balchunas points out that the ETF will enter the top 10 list with just one more day of inflows and tie with the airline JETS ETF.
Delving into the inflow data, IBIT has witnessed an average inflow of $223.4 million during April trading. Farside data reveals that the ETF recorded a maximum inflow of $849 million and a minimum inflow of $18 million.
In comparison, the runner-up in the spot Bitcoin ETF race, Fidelity’s FBTC ETF, experienced an average inflow of $118 million in April, with a maximum of $473 million.
It is worth noting that Fidelity’s ETF experienced zero inflows for three days in April (April 12th, 15th and 17th). Meanwhile, most of the other eight ETFs recorded zero inflows for more than eight days in April, highlighting the strong investor interest in Fidelity and BlackRock’s Bitcoin ETFs.
In contrast, the Grayscale Bitcoin Trust (GBTC) experienced significant outflows over the past three months, losing almost 300,000 Bitcoin. In April alone, GBTC recorded total outflows exceeding $1.6 billion. On the other hand, BlackRock’s Bitcoin ETF has gained similar Bitcoin inflows during the same period.
In light of these developments, Grayscale appears to be taking action to boost performance and inflows to the firm’s assets under management (AuM).
Grayscale Introduces Low-Fee “Mini Bitcoin ETF”Grayscale has revealed plans to launch a new spin-off version of its GBTC fund, a “Mini Bitcoin ETF,” with a significantly reduced fee of 0.15%. According to Grayscale’s latest filing, this fee is expected to be the lowest among all available spot Bitcoin ETFs.
The move can be seen as a strategic response to Grayscale’s recent challenges, including the absence of inflows into its flagship product due to its current high 1.5% fee.
With the forthcoming launch of the Bitcoin Mini Trust, which features a competitive 0.15% fee, Grayscale aims to regain its popularity among investors. Presently, the Franklin Bitcoin ETF (EZBC) holds the title for the lowest-cost Bitcoin ETF, with a fee of 0.19%.
BTC is trading at $66,300, up 2% over the past 24 hours.
Featured image from Shutterstock, chart from TradingView.com
Dogecoin Chart Flashes Buy Signal, Can DOGE Price Reach $1?
Crypto analyst Ali Martinez has provided a bullish narrative for the foremost meme coin, Dogecoin (DOGE). Based on his recent analysis, there is a likelihood that Dogecoin can hit $1 sooner rather than later.
Dogecoin’s Chart Flashes Buy SignalMartinez mentioned in an X (formerly Twitter) post that the TD Sequential has flashed a buy signal on the Dogecoin daily chart. This indicates that the meme coin could experience an “upswing of one to four days,” the analyst claimed. In a subsequent X post, Martinez offered a more bullish outlook for DOGE, suggesting that the upward trend could last longer.
He stated that Dogecoin “is showing its classic pattern once again,” as the meme coin is “currently consolidating after breaking out from a descending triangle.” He added that based on past trends, DOGE might just “rocket towards $1 in the coming weeks.” Martinez’s analysis undoubtedly adds to the growing belief that DOGE can attain such heights.
Other crypto analysts, such as Mikybull Crypto, Altcoin Sherpa, and DonAlt, have also predicted that Dogecoin would rise to $1 in this bull run at some point. However, Martinez’s analysis suggests that DOGE’S move to $1 is imminent and could happen even earlier than expected.
One factor that could play a significant role in Dogecoin’s rise to this price level soon is the institutional interest in the meme coin. This interest will skyrocket once Coinbase launches DOGE’S future for its institutional clients on April 29. Depending on how bullish they are, these institutional investors can inject an impressive amount of liquidity into the Dogecoin ecosystem, which could lead to further price surges.
The Only Way For DOGE Is UpCrypto analyst Myles G mentioned in an X post that Dogecoin has bottomed and boldly claimed that this is the lowest the market will ever see the meme coin at again. This means that DOGE will likely continue its upward price action from now on.
Crypto analyst Kevin (formerly Yomi OG) also recently suggested another rally for the meme coin was on the horizon. He stated that Dogecoin still has “multiple weeks of upward price action away from achieving this bull market milestone.”
In a recent X post, Kevin remarked that DOGE needs to achieve a monthly close above $0.16 for this bullish momentum to be confirmed. He said a close above that price level “would confirm a perfect retest of the previous bear market accumulation range” and set the “monthly momentum strongly for more upside.”
At the time of writing, Dogecoin is trading at around $0.16, up in the last 24 hours, according to data from CoinMarketCap.
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