The Road to $100k: Bitcoin's Unstoppable Rise
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Bitcoin has surged to an unprecedented $70,000 all-time high, marking a significant milestone in the cryptocurrency landscape. This surge is propelled by a combination of factors including the burgeoning interest in Bitcoin ETFs, strategic corporate investments, and the anticipation of the Bitcoin halving event slated for April 20, 2024.
The BlackRock iShares Bitcoin ETF (IBIT) has played a pivotal role in this phenomenon, accumulating more Bitcoin than MicroStrategy in less than two months of its existence. This ETF, along with others approved by the Securities and Exchange Commission, has attracted significant investment, contributing to Bitcoin's price rally. BlackRock's IBIT, in particular, reached $10 billion in assets faster than any US ETF in history, underscoring the growing institutional interest in Bitcoin as an investment vehicle.
Another key driver behind Bitcoin's price increase is the upcoming halving event in April 2024, where mining rewards will be slashed in half. Historically, halving events have led to increased prices due to the reduced supply of new Bitcoins entering the market. This anticipation has fueled investor enthusiasm, contributing to the current price surge.
Prominent figures and corporations are increasingly embracing Bitcoin, indicating a shift in the asset's perception. Bill Ackman's speculative interest in Bitcoin underscores the potential for its price to soar beyond expectations, highlighting the cyclical nature of Bitcoin's demand and its impact on energy prices and the economy. Similarly, MicroStrategy's continued investment in Bitcoin, along with BlackRock's strategic moves to incorporate Bitcoin ETFs into its funds, signals a strong belief in Bitcoin's value as a long-term investment.
Bitcoin's appeal as a hedge against inflation and a "digital gold" has been echoed by BlackRock CEO Larry Fink, who views it as a significant long-term store of value. This sentiment is shared by many who see Bitcoin as a safeguard against governmental inflationary policies, providing a secure and decentralized asset beyond the control of any government. However, SEC Chair Gary Gensler's comparison of Bitcoin to a rollercoaster and labeling it as a "highly speculative asset class" adds a note of caution to the narrative.
The market dynamics since the launch of Bitcoin ETFs have been intriguing, with significant inflows and outflows observed on platforms like Binance. Whales, or large-scale investors, have been moving Bitcoin off exchanges, signaling a bullish stance on the cryptocurrency's future. In contrast, retail investors have shown a tendency to move coins back onto exchanges, presenting a divergent view on Bitcoin's short-term movements. Noticeably, Bitcoin’s price action is diverging from the stock market.
Spot Bitcoin ETF trading volume surpasses $9.58 billion this week, a new record:
• BlackRock: $3,703,236,139
• Grayscale: $2,794,038,139
• Fidelity: $2,028,277,875
• ARK Invest: $483,929,681
• Bitwise: $294,442,475
• Invesco: $97,256,358
• WisdomTree: $85,305,179
• VanEck: $57,961,522
• Franklin: $19,476,749
• Valkyrie: $15,546,011
• Hashdex: $914,484
This Week By the Numbers 📈
Quick Facts:
Jeff Bezos surpasses Elon Musk, becoming the world's richest person
Nvidia falls 6% after huge run ends, up 81% YTD
Stocks fall after mixed employment report
China inflation rises for the first time in months
Coinbase stock rises above IPO level, up 60% YTD
Crypto more active than stock exchange in S. Korea
Whales driving exchange outflows, retail inflows
BTC hits $70k ATH, ETH hits $4k before retreating
SOL hits 2-year high, memecoin trading surges
SOL memecoin volumes continue to dwarf ETH
Perp platforms make $40m fees in a month
Magic Eden flips Blur for 7d NFT sales
SOL co-founder thinks they will threaten App Store
Arizona Senate considers adding spot Bitcoin ETFs to the state's retirement portfolio
Top Stories 🗞️
Elon Musk sues ChatGPT-maker OpenAI over Microsoft links
Elon Musk is suing OpenAI, the makers of ChatGPT, arguing it has breached the principles he agreed to when he helped found it in 2015. The lawsuit - which has also been filed against OpenAI boss Sam Altman - says the firm has departed from its original non-profit, open source mission. It says instead of trying to "benefit humanity" - as it was set up to do - it is focusing on "maximising profits" for major investor Microsoft. The firm was created with the intention of building what's known as artificial general intelligence (AGI) - AI that can perform any task a human being is capable of. It was also set up as a not-for-profit company, meaning it would not aim to make money. The lawsuit, which has been filed in San Francisco, states it was under these conditions, that Mr Musk agreed to found OpenAI, along with Mr Altman and co-founder Greg Brockman.
President Biden supports bill that could make TikTok unavailable in the U.S.
President Joe Biden said Friday that he would sign a bill that could force TikTok’s Chinese owner ByteDance to divest the popular social media company or face a ban in the U.S. "If they pass it, I’ll sign it," Biden said, referring to bipartisan legislation that is on track to get a vote next week in the House. The bill, called the Protecting Americans from Foreign Adversary Controlled Applications Act, would need to pass the Senate as well before reaching Biden's desk. The legislation would allow the president, via the FBI and intelligence agencies, to name certain social media apps as national security threats if they are determined to be under the control of foreign adversaries. Apps deemed a risk would be banned from U.S. app stores unless they sever ties with foreign-controlled entities within 180 days. Members of Congress have made clear that their intention is to force ByteDance to divest the app. Both parties have raised concerns about whether China can access U.S. user data, as well as TikTok's effect on young people.
Wyoming Grants DAOs New Legal Structure
Wyoming has established a new legal framework for in-state decentralized autonomous organization (DAO) nonprofits that has crypto investment giant Andreessen Horowitz (a16z) calling the state an "oasis." Gov. Mark Gordon signed a bill into state law that adds to Wyoming's growing codes for DAOs, which were already cleared to establish themselves as limited-liability corporations there. Now DAOs can also secure themselves as unincorporated nonprofit associations. Miles Jennings, general counsel at a16z Crypto, called it a "major breakthrough" that will give the groups "much-needed protections and empower them to keep blockchain networks open," according to a blog entry posted Friday. This new recognition as "decentralized unincorporated nonprofit associations" (DUNAs) will help the blockchain stewards ensure "that the network remains open, that it does not discriminate and that it does not unfairly extract value," Jennings contends.
Coinbase met with SEC over spot Ethereum ETFs
Coinbase met with officials at the Securities and Exchange Commission to discuss Grayscale’s proposed ether ETF. Attorneys from Davis Polk, who represent Grayscale, were also present according to documents from the SEC. Various members of the SEC’s Division of Trading and Markets were present. A presentation from Coinbase was given at the meeting, though it’s not clear what else was discussed. In the SEC’s meeting disclosure, the agency included the Coinbase presentation in its filing. Per Coinbase’s presentation, shares of a potential ether ETF would be categorized as commodity-based shares, the same as the bitcoin ETFs. Coinbase also said, “spot markets for ETH are highly indicative of a market resilient to fraud and manipulation.” Coinbase also said that it’ll have a surveillance-sharing agreement in place with the CME to “assist in surveilling for fraud and manipulation.”
EU sees maritime aid corridor to Gaza opening this weekend amid famine fears
The head of the European Commission said on Friday a maritime aid corridor could start operating between Cyprus and Gaza this weekend, part of accelerating Western efforts to relieve the humanitarian crisis in the war-ravaged Palestinian enclave. Negotiations on a possible ceasefire in Israel's war against Hamas, now in its fifth month, remained deadlocked in Cairo, with time running out to reach a truce in time for the Muslim holy month of Ramadan, expected to begin on Sunday. EU Commission President von der Leyen said a pilot test run of food aid collected by a charity group and supported by the United Arab Emirates could be leaving Cyprus as early as Friday. Pentagon spokesperson Air Force Major General Patrick Ryder said planning for the temporary port system was still in the early stages and would take "likely up to 60 days" to complete, involving some 1,000 troops, though none would be deployed ashore.
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»Summit At Sea Full Details and Lineup
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Tatiana Koffman
About the Author: Tatiana Koffman
Hi there and thanks for reading! If you stumble upon my newsletter, you will notice that I write about money, economics, and technology. I hold a JD/MBA and spent my career in Capital Markets working across Mergers & Acquisitions, Derivatives, Venture Capital, and Cryptocurrencies. I write to make financial topics more accessible and create equal opportunity for the next generation of investors. I have personally invested in 20+ companies and funds (👉 my portfolio).