The Bitcoin DeFi ecosystem displayed a stellar growth in 2024, and Mark Hendrickson believes this sector is here to stay.
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Analysts at Goldman Sachs, a leading global banking and investment management firm, have offered valuable insights into the anticipated effects of the forthcoming Bitcoin halving, on the price of the cryptocurrency. They emphasize that while the Bitcoin halving is a noteworthy event, other major factors will likely exert greater influence on Bitcoin’s future value. Bitcoin Halving To Play Lesser Role In BTC’s Outlook In a note to clients, Goldman Sach’s analysts have cautioned against reading too much into the past Bitcoin halving cycles and their impact on the cryptocurrency. Based on historical trends, the Bitcoin halving cycles tend to have a favorable effect on the value of Bitcoin, often triggering a bull run. The bank noted that whether the Bitcoin halving scheduled for April 20, becomes a “buy the rumor, sell the news event,” it would hold less significance for the cryptocurrency’s medium-term outlook. They argue that the future performance of the pioneer cryptocurrency would be more heavily influenced by the supply and demand dynamics within the current market. Additionally, the analysts highlighted that the growing interest and demand for Spot Bitcoin Exchange Traded Funds (ETFs) combined with the self-reflexive nature of the crypto market would be the primary contributing factor to Bitcoin’s price action and future outlook. Sharing a similar perspective, analysts at CryptoQuant disclosed earlier in April that the 2024 Bitcoin halving was no longer a primary catalyst for Bitcoin’s bullish surge. They highlighted that factors such as increasing demand from large-scale investors and diminishing supply were now the key drivers of Bitcoin’s upward momentum. Analysts Warn Of Macroeconomic Influence On New Halving Cycle Analysts at Goldman Sachs have predicted that macroeconomic factors such as inflation could have a significant influence on the upcoming Bitcoin halving event. “Caution should be taken against extrapolating the past cycles and the impact of halving, given the respective prevailing macro conditions,” Goldman Sachs analysts noted. Related Reading: Crypto Analyst Says Don’t Buy Altcoins Just Yet – Here’s Why Unlike previous halving cycles, the present economic conditions display high inflationary pressures and interest rates, which could cause the 2024 Bitcoin halving cycle to diverge from historical patterns. In other words, the analysts have suggested that for Bitcoin’s historical halving bull runs to occur, macro conditions need to be supportive of investor risk-taking. Currently, the United States faces challenges with high inflation, while interest rates stand above 5%. These conditions may exert pressure on Bitcoin’s market dynamics. However, despite the prevailing circumstances, many see the digital currency as a formidable inflation hedge and a beacon of hope against escalating inflationary pressures. BTC price at $62,000 | Source: BTCUSD on Tradingview.com Featured image from CryptoSlate, chart from Tradingview.com
BTC dominance is creeping upwards as Layer-1s and Artificial Intelligence tokens had a rough week, while Google search interest in the halving skyrockets.
Cryptocurrency exchange and trading platform, Bybit has released a new report highlighting the impacts of the upcoming Bitcoin halving event on the supply dynamics of Bitcoin within exchanges in the crypto space. The crypto firm has provided valuable insights on how the halving event would enhance scarcity and considerably influence the price of BTC. Exchanges Set To Face Bitcoin Supply Crunch On Tuesday, April 16, Bybit published a new report, providing a detailed analysis of the Bitcoin halving event set to take place this month. The crypto firm disclosed that the Bitcoin reserves within the world’s crypto exchanges have been depleting at a rapid pace, leaving only nine months of BTC supply left on exchanges. Related Reading: Arbitrum’s Massive $107 Million Token Unlock Threatens To Send Price Below $1 For a clearer perspective, Bybit explains that with just two million Bitcoin left in its total supply, a daily influx of $500 million into Spot Bitcoin ETFs would result in approximately 7,142 BTC leaving exchanges daily. This suggests that it would take only nine months to completely consume all of the remaining BTC reserves on exchanges. Bybit has stated that a major contributor to this supply squeeze would be the upcoming Bitcoin halving event, which would reduce the cryptocurrency’s total supply by 50% by cutting Bitcoin miners’ rewards in half. The crypto exchange has also disclosed that after the halving event, the sell-side supply of BTC flowing into Centralized Exchanges (CEXs) will become grossly reduced. Additionally, Bitcoin’s “supply squeeze will ostensibly be worse.” BTC To Become “Twice As Rare As Gold” In its report, Bybit compared Bitcoin’s supply after the halving event with that of gold. The crypto exchange revealed that Bitcoin was steadily growing to become one of the safest investment choices, even for the most seasoned and sophisticated investors within the crypto space. According to the exchange, the Bitcoin halving event would significantly impact the cryptocurrency’s scarcity factor, making it an even rarer asset than gold. Basing this analysis on the Stock-to-Flow (S2F) ratio, Bybit disclosed that Bitcoin’s S2F ratio is around 56 currently, while gold’s ratio is 60. After the halving event this April, Bitcoin’s S2F ratio is projected to increase to 112. Related Reading: Arkham Releases Top 5 Crypto Rich List – You Won’t Believe How Much Is Inaccessible “Each Bitcoin halving sharpens the narrative of Bitcoin as not just a currency, but a scarce digital asset, akin to digital gold. This upcoming halving in 2024 will thrust BTC into an era of unprecedented scarcity, making it twice as rare as gold,” the Co-founder and CEO of Bybit, Ben Zhou stated. While highlighting the significance of Bitcoin’s rarity following the halving event, another report also disclosed that the price of Bitcoin would experience significant upward pressure post-halving. This suggests that BTC’S supply squeeze could potentially propel its price to new heights during this period. Furthermore, the report revealed that several crypto analysts predict that the post-halving increase in Bitcoin’s price would be less remarkable than the early pre-halving surge which saw the price of Bitcoin hitting new all-time highs of more than $73,000. BTC price drops below $63,000 | Source: BTCUSD on Tradingview.com Featured image from Analytics Vidhya, chart from Tradingview.com
BTC price continues its tests of bid liquidity after the latest Wall Street open, but confidence over the Bitcoin bull market remains.
Many analysts are looking at how the cryptocurrency’s inflation rate will compare to gold’s after the halving, expected on April 19.
Bybit's analysis predicts a Bitcoin exchange depletion with reserves drying up in nine months, as the halving event nears.
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Bitcoin miner selling could last for four to six months after the halving, amounting to as much as $5 billion worth, according to an analyst.
Explore how the latest Bitcoin halving is transforming market expectations and miner behaviors, with a focus on scarcity and price trends.
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“There exists a large, untapped pool of capital within the Bitcoin ecosystem that remains dormant,” Wintermute’s OTC desk told CoinDesk.
Crypto traders expect the upcoming halving to send BTC price much higher, but what does the options market say about pro traders' expectations?
It is a “likely foregone conclusion” that high Bitcoin ETF activity will continue leading up to the halving, said Santiment.
Bitcoin's price volatility for the last 30 days stands around 4% — down from nearly 18% in April 2013. It's starting to look more like a traditional equity.
Key management is crucial to Bitcoin maintaining decentralization. But, as hacks and exploits have grown in number, the dream of self-custody has become more difficult to maintain.
The massive overall demand for Bitcoin along with macroeconomic factors will play a far bigger role in driving the price of Bitcoin this year.
Max pain Bitcoin price is at around $50,000 as over 134,000 BTC are set to expire on Deribit this Friday.
An unidentified individual or entity who received 2,000 Bitcoin in mining rewards in 2010 has consolidated them into a single wallet.
Bitfinex analysts say Wall Street funding of public Bitcoin mining companies has significantly altered the incentive structure behind Bitcoin mining.
Learn how Bitcoin halving impacts the crypto ecosystem far beyond its blockchain, shaping the future of cross-chain interoperability.
Major mining firms expect the Bitcoin halving to reduce profitability and cause an increase in network fees, which could challenge the existence of less efficient miners.
Bitcoin price has historically retraced ahead of previous Bitcoin halvings, but when will it bounce back?
Bitcoin attempts to recover from significant weekend downside with old all-time highs back in place as BTC price resistance.
Bitcoin has historically dipped in the weeks before the halving and might repeat such a move within the next week.
Fewer Bitcoin entering circulation after the halving will be met with increased demand from spot Bitcoin ETF issuers, leading to a “continuous, but volatile upward grind” in price, a mining analyst says.
Along with the growing retail interest, Bitcoin transfers to Coinbase have also started to surge. Are investors preparing to take profit?
Investors are pouring money into spot ETFs while avoiding miners due to risks related to Bitcoin's halving event.
The price of Bitcoin stumbled amid a big day of Grayscale’s ETF outflows. JPMorgan analysts think more price corrections are coming post-halving.
Bitcoin miners in the United States explain how energy-efficient models will help keep operations profitable post-halving.
The new service should speed things up for large and/or non-standard Bitcoin transactions.
According to Grayscale, Bitcoin ETFs can fundamentally change the cryptocurrency’s demand-supply ratio, counterbalancing the halving’s sell pressure.