Market update
Cointree Crypto Market Update - April 24th 2024
Market report for traders
🔮 BTC and altcoins
Over the last 7 days, Bitcoin ends at AU$102,583, rising +1.23% at the time of writing. Meanwhile, Ethereum ends at AU$4,978 moving +1.38% week-on-week. On the Altcoin side, Solana +11.95%, Cardano +6.83%, and Dogecoin +0.23%.
🗞 What’s happening in the news?
Introduction to Bitcoin's DeFi Surge
Bitcoin is currently experiencing a wave of activity reminiscent of Ethereum's "DeFi summer" in 2020, marked by the launch of the Runes token protocol. Analysts from Bernstein highlight this pivotal moment as Bitcoin transitions from being a passive investment to a bustling ecosystem filled with new apps and tokens, akin to Ethereum's transformation.
1) Record-Breaking Day for Bitcoin Miners
On April 20th, following Bitcoin's fourth halving, miners celebrated a historic day by collecting over $100 million in rewards, with transaction fees alone contributing approximately $80 million. This surge in transaction fees, which for a time exceeded block subsidy rewards across 100 blocks, illustrates the heightened activity and economic shifts within the Bitcoin network.
2) Runes Token Launch Fuels Hype
The launch of the Runes token standard has significantly influenced the spike in transaction fees. Developed for efficiently creating tokens on Bitcoin, Runes attracted a flurry of speculative trading. Initially, this led to a sharp increase in fees and miner revenues, although these have normalized somewhat as the initial excitement waned.
3) Long-Term Implications for Miners and the Network
Despite the post-halving drop in block subsidy rewards, transaction fees have begun to play a more substantial role in sustaining miner revenues. Analysts anticipate that transaction fees could reliably contribute around 15% of total miner revenues moving forward, maintaining the network's security and profitability for miners.
4) Outlook and Market Trends
As the crypto landscape continues to evolve, Bitcoin miner stocks have shown resilience and growth. The broader market implications of Bitcoin's halving and the rise of new token standards like Runes suggest both potential volatility and significant opportunities for investors.
BlackRock's Spot Bitcoin ETF: A Sign of Sustained Investor Interest
BlackRock's spot bitcoin ETF has emerged as a key player in the crypto market, achieving a milestone with 70 straight days of net inflows. This streak has placed the ETF among the top 10 for the longest continuous daily inflows, alongside other significant funds like the JETS ETF focused on the airline industry.
The remarkable growth of this ETF not only demonstrates robust investor confidence but also cements its status in a highly competitive ETF landscape. With over USD$600 million added to its assets under management (AUM) recently, the ETF's success reflects a broader acceptance and integration of cryptocurrency into traditional investment portfolios.
📖 What we’ve been reading
Ether ETFs Are Unlikely to Be Approved in May
The bank reiterated its year-end bitcoin and ether targets of $150,000 and $8,000, respectively.
Bitcoin Transaction Fees Come Crashing Down Post Halving
After the halving, fees spiked to $146 for a medium-priority transaction and $170 for a high-priority transaction.
Hackers leak code of state Bitcoin wallet
After leaking the entire database of Chivo users in early April, the hacker group CiberInteligenciaSV started releasing the wallet’s code.
Disclaimer: The information provided is for educational purposes and does not constitute financial product advice. You should obtain independent advice from an Australian financial services licensee before making any financial decisions.
