Content:
Bitcoin Hits New ATH of $70k
Personal Journey Update
Weekly Fact
Quote of the Week
Bitcoin Hits New ATH of $70k
Bitcoin has shattered records once again, surging past the $70,000 mark. This unprecedented rally has ignited excitement among investors and analysts alike, signalling a new era of growth and potential for the world's leading digital asset.
Key Points:
OTC Desks Experience Scarcity:
Reports suggest that Over-the-Counter (OTC) trading desks are facing a shortage of Bitcoin, indicating a surge in demand from large-volume traders and institutional investors.
Data from Glassnode.com confirms this scarcity, highlighting the bullish sentiment among investors and the growing appetite for Bitcoin.
The decline in Bitcoin Reserves on Exchanges:
Bitcoin reserves held on exchanges have witnessed a noticeable decline, with approximately 2 million Bitcoins currently stored, reflecting a trend of investors opting for private wallets or secure storage solutions.
This reduction in exchange reserves signifies long-term confidence in Bitcoin, as investors show reluctance to sell, thereby easing market pressure.
ETFs Drive Buying Pressure:
Bitcoin Exchange-Traded Funds (ETFs) are playing a pivotal role in amplifying buying pressure, acquiring an average of 4,000 Bitcoins daily.
Institutional investors flocking to ETFs provide a regulated avenue for broader investor participation, further propelling Bitcoin's price surge.
Anticipation of Bitcoin Halving:
With the Bitcoin Halving event just 41 days away, investors are eagerly anticipating its impact on the market.
Historically, halvings have triggered significant price rallies by reducing the new supply of Bitcoin, fueling expectations of further price appreciation.
Unprecedented Interest Levels:
Google Trends data indicates a surge in interest in Bitcoin, reaching an all-time high across various demographics.
This heightened interest reflects widespread curiosity and participation in the cryptocurrency phenomenon, transcending traditional investor demographics.
Conclusion:
As Bitcoin surpasses $70,000, a convergence of factors, including scarcity, institutional investment, and anticipation of the Bitcoin Halving, underpins its meteoric rise. With OTC desks experiencing scarcity, declining reserves on exchanges, and ETFs driving buying pressure, the market is witnessing unprecedented demand. Coupled with soaring interest levels in Bitcoin, the current rally appears poised for sustained growth. As Bitcoin charts its course through uncharted financial waters, the cryptocurrency landscape continues to evolve, captivating the attention of investors worldwide.
Coinbase Meets with SEC Over Spot Ethereum ETFs
Coinbase engaged in discussions with officials from the Securities and Exchange Commission (SEC) regarding Grayscale's proposed Ethereum Exchange-Traded Fund (ETF).
Key Points:
Meeting Overview:
Coinbase, along with attorneys from Davis Polk representing Grayscale, met with members of the SEC's Division of Trading and Markets to discuss the proposed Ethereum ETF.
The meeting included a presentation from Coinbase, the details of which were included in the SEC's disclosure filing.
Categorization of Ether ETF Shares:
Coinbase's presentation highlighted that shares of the potential Ethereum ETF would be classified as commodity-based shares, similar to Bitcoin ETFs.
This categorization aims to provide regulatory clarity and align Ethereum ETFs with existing market standards.
Market Resilience to Fraud and Manipulation:
Coinbase emphasized the resilience of Ethereum spot markets against fraud and manipulation, indicating confidence in the integrity of the market.
The company also stated its intention to establish a surveillance-sharing agreement with the CME to enhance monitoring for fraudulent activities.
Analysis by Bloomberg Analysts:
Bloomberg senior ETF analyst Eric Balchunas expressed caution, suggesting that the lack of comments from the SEC may not be a positive indicator.
Analyst James Seyffart echoed this sentiment, highlighting that the absence of comments could raise concerns about the approval timeline for Ethereum ETFs.
Market Strength and Potential Approval:
Data presented by Coinbase showcased the strength of Ethereum futures and spot markets, drawing parallels with Bitcoin markets.
ETF Store president Nate Geraci highlighted the robustness of Ethereum markets, questioning potential grounds for disapproval of spot Ethereum ETFs.
SEC's Decision Timeline:
The SEC recently delayed decisions on spot Ethereum ETF applications from BlackRock and Fidelity, with expectations for a decision in May.
Experts anticipate that the SEC will greenlight Ethereum ETFs, with Bloomberg analyst James Seyffart estimating a 60% chance of approval.
Sony Applies for US Patent for 'Super-Fungible Tokens'
Sony has submitted a US patent application for "super-fungible tokens" tailored for gaming.
Key Points:
Sony's Patent Application:
Sony, renowned for its PlayStation console series, applied for the patent back in 2022, with the details recently made public in late February.
The patent outlines a groundbreaking concept for an electronic device capable of tracking gaming assets and generating super-fungible tokens.
According to the document, metadata associated with gaming assets is received, and a super-fungible token is generated based on storing this metadata in a distributed ledger linked to the gaming application.
Functionality of Super-Fungible Tokens:
The super-fungible token serves as a collection of non-fungible tokens (NFTs) grouped together, offering a novel way to manage and exchange gaming assets.
It signifies ownership of a single gaming asset from the set of gaming assets by the player within the gaming application, adding an extra layer of value and utility to in-game items.
Blockchain Integration and Example:
While the patent application does not specify the blockchain platform for storing metadata, it references Ethereum (ETH) as an illustrative example, hinting at potential blockchain integration for this gaming innovation.
Sony's Continued Investment in Gaming Metaverse:
This move underscores Sony's commitment to innovation in the gaming industry, following its previous investments and initiatives aimed at fostering the development of the gaming metaverse.
In 2022, Sony made headlines with a $1 billion investment in Epic Games, a major player in the video game industry, signalling its strategic focus on the burgeoning gaming metaverse landscape.
Personal Journey: My Strategy
With Bitcoin now past its all-time high people should have a strategy for taking profits.
If you don’t, then you need one.
The one that I have adopted, however, is perfect for people who don’t have time to look at charts all day and keep an eye on Bitcoin’s price 24/7.
Hopefully, some of you know the buying strategy of dollar-cost averaging. The idea of buying a small amount of something like Bitcoin often. This strategy stops the worry of trying to buy the exact bottom. Instead, you get a nice average buy-in price as long as you’re practising this strategy during a bear market.
For example, you could buy $50 worth of Bitcoin every week. Slowly but consistently building your allocation without breaking the bank all in one go.
This strategy can also be used when it comes to selling and taking profits.
Once Bitcoin or your asset of choice hits a target price that you think is the start of an upward trajectory. Then you can apply the same concept as dollar-cost averaging.
But this time instead of buying you’re selling.
For example, you could set a price target of $100,000 per Bitcoin. Once this target has been hit and stays above that price. You then start taking $100 of profit every week while Bitcoin stays above $100,000. The profits you choose to take every week might be determined by how long you think the bull market is going to last.
For example, if you think Bitcoin will only stay above $100,000 for a month or two. You might choose to take more profits every week as you won’t get as long to take advantage of the selling opportunity.
Just like dollar-cost averaging you get a nice average sell price and no worries of trying to sell perfectly at the top.
This strategy has served me well before and still allows me to live my life without having to stare at charts all day.
This is not financial advice I am simply explaining the method I use. It is still important to do your own research and design a strategy that is more tailored to your own personal situation.
Weekly Fact
The word technology was coined in 330 BC by the one and only Aristotle.
You may think of technology as modernized or contemporary, but its etymology dates back to Aristotle’s time.
Quote of the Week
Let me know any ways you think this newsletter can be improved.
Also, feel free to drop your newsletter links down below, I’m always grateful for more inspiration.