Bitcoin

In a landmark decision at London’s High Court, the claim by Australian computer scientist Craig Wright to be Bitcoin‘s pseudonymous creator, Satoshi Nakamoto, was firmly rejected. Wright, who has long asserted his role in authoring the pivotal 2008 Bitcoin white paper, found his claims challenged by the Crypto Open Patent Alliance (COPA). COPA’s legal action aimed to protect Bitcoin developers from Wright’s lawsuits by seeking judicial clarification of his claims.

Judge James Mellor, presenting his verdict, highlighted the “overwhelming” evidence against Wright’s claim, stating unequivocally that Wright was not the architect of the Bitcoin white paper nor did he operate under the Nakamoto pseudonym between 2008 and 2011. This ruling was celebrated by COPA and the wider open source and development community as a triumph for truth and integrity in the face of intimidation and false narratives.

COPA’s pursuit of truth exposed Wright’s extensive document forgery efforts to support his claims, actions that were denounced as “a brazen lie” by COPA’s legal representatives. These revelations underline the significance of this legal victory in safeguarding the principles of open source development and the authenticity of Bitcoin’s origins.

Get ready for a significant shift in the crypto landscape! Bitcoin ETFs are on a trajectory to secure over 10% of the total Bitcoin supply by the third quarter of this year. This insight, provided by the sharp analysts at Crypto Intelligence, underscores the increasing influence of spot Bitcoin ETFs in the market.

Why is this important? Well, it hinges on the expectation that applications for Ether spot ETFs in the US might not get the green light in the near term. Should these Ether ETFs face rejection, the spotlight remains firmly on Bitcoin ETFs, potentially boosting their demand as they become the primary crypto product for investors and institutions alike.

However, it’s not just about exclusivity. The dynamic between Ether and Bitcoin is fascinating. With Ether adopting a deflationary approach and Bitcoin’s supply still expanding (albeit at a slowing rate post-April halving), investor preferences could significantly shift, especially with Bitcoin ETFs playing a central role in the market.

Already holding more than 4% of the entire 21 million BTC that will ever be mined, these Bitcoin ETFs are not just passive observers. They are active market participants, with their growing influence potentially leading to a supply crunch. Such a scenario could catapult the price of Bitcoin to soar beyond the $120,000 threshold.

The impact of this trend is already visible, with Bitcoin showcasing remarkable gains, currently trading near the $73,000 mark. Ethereum has also seen a price uptick, crossing the $4,100 mark, though it’s still in the race to reach new heights.

Imagine a world where Bitcoin becomes so coveted that finding it feels like searching for a needle in a haystack. That’s the scenario we might find ourselves in, as Bitcoin ETFs are rapidly absorbing the available BTC, leading to a potential sell-side liquidity crisis in just six months. This is not a drill; it’s a wake-up call for investors and market watchers alike.

As we delve into the mechanics of this phenomenon, it’s clear that the popularity of Bitcoin as an institutional investment is skyrocketing. With US-based spot Bitcoin ETFs amassing nearly $30 billion, they’ve marked their spot in history. But this surge comes with a twist – the possible scarcity of BTC for eager investors.

Industry analysts, echoing the sentiments of CryptoQuant’s Ki Young Ju, highlight a critical juncture ahead. The continued influx into ETFs could drastically reduce the BTC available for purchase, triggering a supply crunch unlike any we’ve seen. And as these ETFs squirrel away more than 30,000 BTC weekly, the reality of a liquidity crisis looms larger with each passing day.

Interestingly, the Grayscale Bitcoin Trust (GBTC) presents a counter-narrative with its daily outflows. Yet, despite these movements, the value of GBTC’s holdings remains stable, thanks to BTC’s price resilience.

What does this all mean for the market? A sell-side liquidity crisis could propel BTC prices to unforeseen heights, driven by the sheer scarcity of sell-side liquidity. As accumulation addresses continue to grow, the market braces for an unprecedented shift.

This narrative isn’t just about numbers; it’s a story of supply, demand, and the unrelenting power of innovation in the crypto space. Stay tuned as we navigate these tumultuous waters together, witnessing the unfolding of a new chapter in Bitcoin’s history.

Breaking news for all cryptocurrency enthusiasts and investors alike: BlackRock’s Bitcoin spot ETF, known as the iShares Bitcoin Trust (IBIT), has just surpassed a monumental threshold of 200,000 BTC. This remarkable achievement underscores the growing confidence and interest in digital currency investments.

The iShares Bitcoin Trust, BlackRock’s spearhead into the Bitcoin ETF domain, has been a game-changer since its debut on the Nasdaq. In a mere two months, it has amassed an astonishing $14.5 billion in assets under management (AUM), all backed by Bitcoin, solidifying its position as a pivotal player in the cryptocurrency investment space.

Comparatively, BlackRock’s gold spot ETF, the iShares Gold Trust (IAU), showcases an AUM of nearly $27 billion, yet it pales in comparison to the trading volumes and rapid growth witnessed by IBIT. This shift signifies a potential paradigm shift in investment preferences towards digital currencies.

Moreover, the landscape of Bitcoin ETFs is becoming increasingly competitive, with the iShares Bitcoin Trust setting new precedents in trading volumes and AUM. Other funds, recognizing the trend, are starting to allocate significant portions of their portfolios to Bitcoin ETFs, further propelling the digital currency’s legitimacy and appeal in the investment world.

This development not only marks a significant milestone for BlackRock but also for the entire digital currency ecosystem, heralding a new era of investment strategies that embrace the innovative potential of cryptocurrencies.

Hey there! Let’s dive into President Biden’s vision for America’s fiscal future, as outlined in his recent State of the Union Address and the proposed 2025 budget. It’s a plan that’s stirring up quite the conversation, featuring a mix of higher taxes for businesses and the wealthy, alongside a sprinkle of tax credits and more intricate rules for all taxpayers.

Last week, President Biden sketched out a picture of an America where businesses and high earners chip in a bit more, with the promise of a $5.1 trillion tax increase over the next decade. But it’s not just about paying more; it’s about navigating a maze of new rules, credits, and carveouts designed to tweak the economic landscape.

The proposed budget aims to trim the deficit while making bold assumptions about economic growth and the extension of tax cuts. Key highlights include raising corporate taxes to 28%, doubling down on minimum taxes for large corporations, and a suite of measures aimed at promoting research & development over offshoring profits.

On the individual side, we’re looking at higher rates for those earning above $400,000, a push to tax unrealized capital gains, and a novel “billionaire minimum tax” to ensure the ultra-wealthy pay their fair share. Plus, there are proposed tweaks to retirement contributions, estate taxes, and even the taxation of digital assets, including a new focus on the energy used in cryptocurrency mining.

Yet, amidst these tax hikes, there’s a silver lining with proposed extensions and expansions of various tax credits aimed at supporting children, workers, and healthcare affordability. Not to forget the incentives for first-time homebuyers and efforts to boost affordable housing.

As we peel back the layers of Biden’s budget proposal, it’s clear that the vision is one of complexity and change, aiming to steer the economy towards a more equitable future. But with big ideas come big debates on effectiveness, growth, and competitiveness in the global market.

What do you think? Will these proposed changes pave the way for a stronger economy, or are we looking at potential challenges on the horizon? Join the conversation and let’s explore the future of America’s fiscal policy together.

It’s been a monumental week in the world of digital assets, with investment funds seeing a staggering $2.7 billion of inflows, pushing the year-to-date total to an impressive $10.3 billion. This trend suggests that the record annual inflow of $10.3 billion in 2021 could be surpassed as early as next week, not even three months into 2024.

**Bitcoin (BTC)** is at the forefront of this investment wave, contributing $2.6 billion to last week’s inflows. The launch of U.S.-based spot ETFs has played a significant role, with thousands of coins being added daily amid a major price rally. This year, bitcoin inflows have risen to account for 14% of bitcoin assets under management.

Looking at other notable tokens, **Solana (SOL)** also made headlines with $24 million in inflows last week. Moreover, Bitcoin reached a new lifetime high, breaking the $72,000 mark and setting the stage for a potentially groundbreaking year for cryptocurrencies.

Imagine a world where the glint of gold is not from a metal bar, but from a digital currency. Michael Saylor, the Executive Chairman of MicroStrategy, believes Bitcoin is on the verge of doing just that. He confidently stated, “Bitcoin is digital gold and it’s going to eat gold.” With its remarkable attributes, Bitcoin outshines gold by being more accessible, secure, and efficient.

MicroStrategy’s recent acquisition of an additional 12,000 Bitcoin, boosting their total to 205,000 tokens, showcases their belief in Bitcoin’s enduring value. This strategic move not only underscores the company’s confidence in Bitcoin but also highlights the cryptocurrency’s growing acceptance and value. Bitcoin has indeed surpassed silver to become the world’s eighth most valuable asset, with a market cap soaring above $1.4 trillion.

Moreover, Saylor highlights an exciting event for Bitcoin enthusiasts – the upcoming Bitcoin halving in April. This event is anticipated to further fuel Bitcoin’s value as the supply of new tokens will be halved, making it even more scarce and desirable. As the world watches Bitcoin’s ascent, it’s clear that it’s not just challenging gold’s supremacy but also redefining the very concept of value storage and investment in the digital age.

Recently, there’s been a buzz about Dynamic Dollar-Cost Averaging (DCA) in the crypto community. Unlike traditional DCA, dynamic DCA is a flexible approach that adjusts investments based on market conditions. The goal is to invest more during bear markets and less or exit during bull markets by using various metrics and indicators.

Backtesting this strategy has shown higher returns and reduced emotional stress. It’s about making smarter decisions, whether it’s taking profits during bull runs or adjusting your investment amounts.

Here’s a quick guide to getting started with dynamic DCA:

1. Select a Risk Metric: Choose a reliable metric to gauge the market’s state. A good metric can tell you when the market is overbought or oversold.
2. Set Your Risk Thresholds: Define the risk levels at which you’ll invest more, hold, or sell. For example, you might invest more as the risk decreases and start exiting the market as the risk increases.
3. Stick to Your Strategy: Regularly check the risk metric and adjust your investments accordingly. Consistency is key.

There are several risk metrics available, each with its strengths and weaknesses. Here are a few that stand out:

• S Tier: AlphaSquared’s Risk Metric and Benjamin Cowen’s Risk Indicator are top choices for their accuracy and comprehensive analysis.
• A Tier: CoinTalksCrypto’s Bitcoin Bull Run Index is a decent free option, though it has its limitations.
• B Tier: Tools like Bitcoin Risk Level and LookIntoBitcoin’s Reserve Risk offer useful insights for dynamic DCA.
• C Tier: The Fear and Greed Index is more of a sentiment gauge and may be less useful for dynamic DCA.

Dynamic DCA isn’t about timing the market perfectly; it’s about making informed decisions and adjusting your investments based on market conditions. With the right approach and tools, dynamic DCA can be a powerful strategy for crypto investing.

Over the weekend, Pershing Square Capital Management’s founder and CEO, Bill Ackman, shared his intriguing thoughts on Bitcoin (BTC). He playfully suggested a scenario where the price of Bitcoin could skyrocket beyond imagination.

Ackman’s hypothesis goes like this: “Bitcoin’s price rise leads to increased mining and greater energy use, driving up the cost of energy, causing inflation to rise and the dollar to decline, driving demand for Bitcoin and increased mining, driving demand for energy, and the cycle continues.” He then humorously added, “Bitcoin goes to infinity, energy prices skyrocket, and the economy collapses. Maybe I should buy some Bitcoin.”

However, Ackman also acknowledged the flip side, noting that this cycle could also work in reverse. His comments quickly sparked a conversation within the Bitcoin community, with notable figures like MicroStrategy’s founder and Executive Chairman, Michael Saylor, chiming in. Saylor offered to discuss the matter further with Ackman, pointing out that most Bitcoin miners are actually driving down the cost of electricity for other consumers.

While Ackman has mostly kept his distance from Bitcoin and cryptocurrencies, he did reveal in 2022 that he had invested in some crypto projects and venture funds as a hobbyist eager to learn more about the space.

Welcome to a thrilling week in the world of Bitcoin as it dances with fresh all-time highs, showcasing the indomitable spirit of BTC price volatility.

Bitcoin has not only achieved its highest-ever weekly close but continues to defy expectations. The tussle between bulls and bears intensifies, with Bitcoin navigating through a familiar yet exhilarating path of resistance and support, courtesy of spot ETFs and market sentiment.

The influence of ETF buying has taken many by surprise, prompting even the staunchest bulls to rethink their long-term BTC price forecasts. Could $1 million per Bitcoin be a modest prediction?

On the flip side, the rapid pace of the bull run raises concerns about a potential macro price peak. But, with pivotal US macro data and Federal Reserve decisions on the horizon, all eyes are on Bitcoin’s next move.

Bitcoin miners are also in the spotlight, strategically securing profits as we edge closer to April’s block subsidy halving.

Join us as we dive deeper into these developments and explore what might be next for Bitcoin’s price in this week’s must-read analysis.

Bitcoin’s journey to breaking the $71,000 barrier is nothing short of historic, further energized by the approval of spot bitcoin ETFs in the U.S., marking a significant milestone for the cryptocurrency.

The rally has not only lifted spirits but also the futures premium, hinting at an influx of traders and heightened market liquidity.