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Bitcoin halving climax
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Bitcoin reaches a new milestone hours ahead of halving
Key points:
After halving events in 2016 and 2020, Bitcoin’s price surged by 295% and 559%, respectively.
Ahead of the halving, BTC’s accumulation spiked as investors expected its value to rise in the coming weeks.
News - Bitcoin's accumulation has hit a new milestone just before the blockchain’s fourth halving event, which is scheduled for the 19th of April. IT Tech, an author and analyst at CryptoQuant, mentioned in an analysis that over 27,000 Bitcoins were added to accumulation addresses.
Accumulation addresses are those addresses that have no record of outgoing transactions, a balance exceeding 10 BTC, no link to any centralized exchanges or miners, and have received more than two incoming transactions.
What does it mean? The massive rise in accumulation happened at a time when BTC’s price remained highly volatile in the bears’ favour. In the past week alone, the amount of Bitcoin held on exchanges has dropped by 1%. This left around 1.94 million Bitcoin worth approximately $119 billion on exchanges.
The halving effect - A major reason behind this rise in accumulation could be BTC's track record of starting bull rallies after halving. Bloomberg's data shows that after previous halving events, Bitcoin's price soared. To be precise, BTC’s price increased by over 8,000% after its first halving, which happened back in 2012. Going forward, investors might continue to witness high volatility in BTC’s price.
A large amount of USDT flows into Ethereum, initiating a trend reversal
Key points:
Massive amounts of USDT flowed from Tether to Ethereum exchanges.
Ethereum’s price action turned bullish as its value surged by 5%.
News - The market condition has resulted in most cryptos, including Ethereum, remaining highly volatile. A significant amount of USDT, specifically 318 million dollars worth, has moved from Tether’s treasury wallet to exchanges on the Ethereum network.
What’s next? The outflow might be followed by Tether minting another 1 billion USDT on Ethereum to meet the demand. Tether often mints USDT during periods of increased cryptocurrency activity, though it doesn't guarantee a surge in Ethereum usage, as other blockchains like Tron are also used for similar purposes.
More to know - Gas usage on Ethereum has remained steady, possibly due to other activities like DeFi transactions. However, the NFT trades occurring on the blockchain have dropped sharply. The reason behind this could be a market correction or declining public interest.
Moving on to investors’ interest, the king of altcoin’s price had plummeted near $3k. Because of the downtrend, the MVRV ratio for ETH fell considerably. This indicated that most holders were not profitable at the time of writing.
However, things changed in the last 24 hours as ETH’s price increased by nearly 5%, which can help ETH recover from its losses last week. At press time, ETH was trading at $3.1k, along with a 6% rise in its daily trading volume.
DAO acquires rights to the Doge meme image related to Dogecoin
Key points:
The acquisition of licensing rights is not expected to impact the Dogecoin Foundation or the use of the crypto.
Doge image's inception dates back to 2010 when Kabosu was candidly photographed by Sato.
News - Own The Doge, a decentralized autonomous organization (DAO), has acquired legal rights to the famous Shiba Inu image associated with Dogecoin. The project leaders, John Monarch and ‘Tridog,’ negotiated the deal with Sato Atsuko, the owner of Kabosu, the popular Shiba Inu on which the Doge meme is based.
What’s more? Own The Doge collaborated with legal experts in Japan and the United States to crack this deal. The recent acquisition of the image behind Dogecoin will allow Own The Doge to use it in merchandise and other crypto-related contexts.
The image was earlier free for all to use, but this acquisition has opened doors for Own The Doge to hatch new partnerships with brands, which can help further boost the popularity of the already famous Dogecoin. There was also relief for general users, as the DAO doesn’t want to enforce its copyright claim on users and certain brands already using the image.
In addition to this, the project has also released a documentary tracing the history and evolution of the doge meme. As per Monarch, the motive behind this move was to unify various communities, including Dogecoin enthusiasts, NFT collectors, and meme aficionados.
Canada to adopt new crypto taxation framework by 2026
Key points:
The CARF standard is expected to be adopted or recognized by 47 countries by 2027.
CARF was introduced at a meeting of G20 finance ministers and central bank governors in October 2022.
News - Canada plans to adopt the International Crypto-Asset Reporting Framework (CARF) for taxation by 2026. This move is Canada’s effort towards being up-to-date with the latest market requirements. The CARF will introduce new reporting rules for crypto asset service providers (CASPs), including exchanges, brokers, and crypto-asset automated teller machine operators, for both individuals and business entities.
More to the story - CASPs would report to the Canada Revenue Agency (CRA) transactions between crypto assets and fiat and crypto assets for other crypto assets. Apart from this, any transactions of cryptos by CASPs, including payment processing, that have a value greater than USD 50,000 will also be reported.
However, it must be noted that central bank digital currency and “digital representations of fiat currencies” like stablecoins would not be reported under this framework.
CARF was developed by the Organization for Economic Cooperation and Development (OECD). The aim behind this is to tackle the shortcomings of the Common Reporting Standard (CRS), as it couldn’t capture transactions that didn’t go through traditional financial intermediaries.
More stories from the crypto ecosystem
Crypto scams uncovered
In February 2022, cryptocurrency exchange Wormhole lost $320 million after a cyber attack. In addition to this attack, cryptocurrency scammers have stolen more than $1 billion since 2021.
In June 2023, the crypto wallet app Atomic had its user wallet accounts emptied. Hackers stole over $100 million worth of assets from roughly 5,500 users. The primary cause behind the incident remains unclear.
Mixin Network, a Hong Kong-based crypto project, was hit with the largest crypto exploit of 2023. On the 23rd of September, the firm had to abruptly cease operations after hackers plundered a staggering $200 million from users’ hot wallets.
Top 3 coins of the day
Toncoin (TON)
Key points:
Toncoin’s trading volume increased in the last 24 hours.
Network activity was low as TON’s daily active addresses dropped.
What you should know - Toncoin showcased commendable performance last week when the market was bearish. Things got even better in the last 24 hours as the token’s value surged by more than 17%. At press time, it was trading at $7.06. If the uptrend continues, TON might as well manage to go above its all-time high soon. TON’s Relative Strength Index (RSI) registered a sharp uptick as its value reached 64, which can be inferred as a bull signal. However, if the technical indicator enters the overbought zone, selling pressure might increase. Thus, taking TON to its support level of $5.4.
XRP
Key points:
Despite last week’s price drop, bullish sentiment around XRP increased.
XRP’s Relative Strength Index (RSI) hinted at a few slow-moving days.
What you should know - XRP faced massive selling pressure last week as its price dropped by 17%. However, as the market condition improved, the token managed to push its price up by over 2% in the last 24 hours. The upward move might continue further, thanks to the token’s price which was seated near the lower Bollinger Band, at press time. However, the technical indicator MACD displayed a bearish upper hand as XRP’s price was resting near a critical support level of $0.474. If selling pressure increases and XRP’s value drops below the support level, the token might shed a substantial amount of its market capitalization in the coming days.
Tron (TRX)
Key points:
Tron’s price dropped by 0.5% in the last 24 hours.
While the price declined, TRX’s trading volume increased by 23%.
What you should know - Though the market condition changed on the 19th of April, Tron’s fate remained bearish as it failed to paint its daily chart green. At the time of writing, TRX was trading at $0.109 with a market cap of over $9.5 billion. Nonetheless, the scenario might change in TRX’s favour, as suggested by its Chaikin Money Flow (CMF). The indicator gained upward momentum and was headed towards the neutral mark, at press time. If an uptrend kicks in, then TRX can go above its immediate resistance at $0.112. Successfully converting the resistance into support would allow TRX to recapture its lost market cap.
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