Eddy Lazzarin, CTO of A16z Crypto, one of the largest cryptocurrency-focused venture capital funds, has criticized the meme coins’ effect on the broad appreciation of the cryptocurrency market. Lazzarin stated that meme coins undermined the “long-term vision of crypto” that has maintained some actors in the space, making it look “like a risky casino.” A16z […]
Bitcoin News
A Look at How Bitcoin’s Halving Might Trigger ‘Sell the News’ or ‘Sell the Rumor’ Reactions
With fewer than 300 blocks remaining until Bitcoin’s fourth halving, speculation has been rife, with many expecting a ‘sell the news’ scenario following an 11% drop in bitcoin prices. On the other hand, this downturn might just be the precursor to a shakeout and a subsequent significant uptick. Large holders, often known as ‘whales’, are […]
Bitcoin News
What to expect after the Bitcoin Halving: a look at post-halving performance
The Bitcoin Halving is almost here, bringing about the most significant event in the Cryptocurrency market ever. Each event has had a dramatic impact on supply, demand, and price appreciation post-halving. But with Bitcoin price already setting a new all-time high before the halving for the first time ever, how might this change post-halving performance? Let’s take a closer look.
What is the Bitcoin Halving?
The Bitcoin Halving is a recurring event happening approximately every four years. By design, it is intended to increase the scarcity of BTC and strengthen the security of the network. However, it has the unintended effect of bringing more participants, speculation, and volatility to Crypto markets, driving Bitcoin price to astronomical new highs.
Currently, miners unlock about 900 new BTC each day while contributing to the security of the Bitcoin network. After the next halving, this will be reduced to roughly 450 new BTC each day. This abrupt change in supply, coupled with growing demand is often an event worth paying attention to, as the following data will reveal.
Past post-halving performance examined
The first ever Bitcoin halving occurred on November 28, 2012. BTCUSD traded at around . Within one year, Bitcoin price climbed by nearly 10,000% to over ,200 per coin. At this point, the top Cryptocurrency was still in its infancy, and few paid attention to the impact the halving had on price action.
The second halving took place on July 9, 2016, some four years later. Cryptocurrencies were still relatively unknown at this point in time. However, new altcoins were starting to gain traction and the industry surrounding Bitcoin begane to develop. 16 months later, BTCUSD rallied from 0 at the July 2016 halving to just under ,000 per coin, representing a 3,400% post-halving performance.
By the third halving, which took place on May 11, 2020, the world had started to realise the correlation between BTCUSD performance and the proximity to the halving event. The halving happened just months following the COVID pandemic and unprecedented money supply expansion, resulting in a perfect storm for Bitcoin and investors. Within a year, Bitcoin soared from under ,000 per coin to more than ,000 per BTC. Although this is substantial in USD terms, this was only a 625% gain compared to 3,400% and 10,000% previously, setting the precedence for diminishing returns.
Why the 2024 Bitcoin Halving could be different
The Bitcoin Halving in 2024 is pegged for mid-April, and is already gearing up to be the most important event in Crypto history. While the phrase “this time is different” is considered the most dangerous in investing, this time, when it comes to Bitcoin, things are very different to the past.
Despite the enormous bull markets that follow each halving, none of these rallies set a new all-time high beforehand. In 2024, Bitcoin has already set a new all-time high, which could either mean further diminishing performance, or a shocking rally that surprises the masses and only adds to the price tag of each BTC further.
With each Bitcoin Halving, the market participants increasingly took note of its powerful impact on price appreciation. The halving is a publicly known event, and in 2024, the post-halving performance could have been front-run by so-called smart money, whales, and institutional investors, who are aware of the type of gains that are possible.
Whether or not this means less performance post-halving remains to be seen. However, the reduction in new BTC available to miners should still impact the delicate balance of supply versus demand in favour of more price appreciation ahead after the event.
Factors fuelling increased profit potential in Crypto
The emergence of spot Bitcoin ETFs in the United States are one of the major factors causing the new price record ahead of the halving, and could further ignite a bull market post halving. Spot Bitcoin ETFs have been absorbing as much as 10 times the new supply from miners, and post halving this could increase to 20 times the new available supply if ETF demand remains consistent.
Combined with demand from retail investors hearing about the halving in the media and in social circles, price could still rise substantially, even though Bitcoin is currently trading above former all-time highs from 2021 at ,000 per coin.
Trading Bitcoin with PrimeXBT
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Conclusion
The Bitcoin Halving is a highly anticipated event that has historically led to significant price appreciation and volatility in the Cryptocurrency market. With Bitcoin already setting new all-time highs before the 2024 halving, the post-halving performance could be even more impressive than previous cycles. Traders looking to capitalise on these market movements should consider using PrimeXBT’s Crypto Futures platform.
PrimeXBT offers an all-in-one platform with the lowest fees, advanced tools, and educational resources to empower traders of all levels. The platform’s easy-to-use interface and quick onboarding process make it simple for anyone to start trading and take control of their finances.
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Onchain Bitcoin Fees in 2024: A Closer Look at Transaction Costs and Delays
Data gathered over the last 36 days reveals that the Bitcoin network’s average transfer fee has consistently exceeded the .68 mark, while costs for median-sized transactions have not dipped below the .67 threshold. As of Feb. 6, 2024, insights from Bitcoin’s transaction queue highlight a significant backlog of 221,799 transactions awaiting confirmation.
Bitcoin Transfer Fee Insights From the First Five Weeks of 2024
Although network transaction fees in 2024 are still substantial, they haven’t reached the peaks observed in mid-December 2023, the latest data from Tuesday suggests. For example, on Dec. 17, 2023, the peak average transaction fee soared to .67 per BTC transfer. The initial five weeks of 2024 have seen the average fee stabilize at .39 per transaction across all 36 days.
2024’s peak day for Bitcoin’s network transaction fees occurred on Jan. 2, marking the average transfer cost at .32 per transaction. Additionally, data indicates that the lowest average fee in 2024 fell to .68 per transaction on Jan. 28. Average-sized bitcoin fees, determined by dividing the total transaction fees within 24 hours by the transaction count, give an overall sense of cost but may be influenced by significantly high or low fees.
In contrast, median-sized bitcoin fees, identifying the central value in a dataset of daily transaction fees when sorted, provide a more precise gauge of the typical expense for users, bypassing the distortion from outliers. Therefore, while average fees might imply elevated costs due to exceptional values, median fees more accurately reflect the transaction costs most users incur.
For 2024, the average median BTC fee per transaction stands at .02, with Jan. 14 witnessing the highest fee day at .28 per transfer. The day with the lowest median-sized fee was Jan. 27, dropping to .67 per transaction. Currently, the fee rate for high-priority transactions at 9:00 a.m. Eastern Time (ET) on Feb. 6, 2024, is between 18-29 satoshis per virtual byte. According to Mempool.space metrics, the mempool (Bitcoin’s transaction queue) is congested with 221,799 pending transactions.
In the last week, the average transaction fee was roughly .40 per transfer. The week’s highest fee day took place on Saturday, Feb. 3, with an average cost of .86, while the lowest fee day was on Jan. 30, plunging to .27 per transfer.
What do you think about the Bitcoin network’s transaction fees in 2024? Share your thoughts and opinions about this subject in the comments section below.
Ordinals Founder Casey Rodarmor Warns Bitcoin Maxis That ‘Whining’ Makes Them ‘Look Weak’
Casey Rodarmor, the developer of the Ordinals protocol, has called out ideological Bitcoin maxis for their views on inscriptions and censoring transactions on the Bitcoin blockchain. Rodarmor stated that the “whining” around the protocol and its usage of block space make them “look weak,” contradicting the idea that Bitcoin is “unstoppable internet money.”
Ordinals Dev Casey Rodarmor Blasts Bitcoin Maxis ‘Whining’
Casey Rodarmor, the developer of the Ordinals protocol, which enables the possibility of issuing inscriptions, media embedded directly on the Bitcoin blockchain, has called out Bitcoin maxis for its complaints.
In a recent blog post, Rodarmor explained that the philosophy of the so-called Bitcoin maxis was incompatible with their beliefs, making them “look weak” with their “whining” on the use of ordinals and inscriptions.
Rodarmor stated:
Simultaneously believing that Bitcoin is unstoppable internet money and thinking that a bunch of retards publishing JPEGs on-chain is any kind of problem is a contradiction.
Rodarmor also criticized the attempts to “censor” inscriptions, insisting that building code to achieve this goal would be detrimental to the ecosystem, given that it would also enable other kinds of censorship in Bitcoin.
The rise of the Ordinals protocol has caused a series of discussions in the base of the Bitcoin community, with some developers and users considering it a form of “spam,” even leading to talks of a possible hard fork. Nonetheless, for Rodarmor, there is a simpler solution to the issue.
He discussed that ignoring them is the best choice, as the market will eventually price out inscriptions when more use cases compete for Bitcoin block space. He explained:
There will always be some high-value inscriptions, but they don’t compete seriously with hard money and uncensorable transactions.
“Bitcoin’s destiny is high fees. Embrace it,” he concluded.
What do you think about Casey Rodarmor’s take on the attitude that Bitcoin maxis have on ordinals and inscriptions? Tell us in the comments section below.
An In-Depth Look Into the 2023 Banking Crisis — 3 of the Largest Bank Failures in US History
The U.S. economy experienced an interesting year in 2023, marked by unprecedented upheaval within the American banking sector due to the combined collapse of three major banks, the largest the nation has historically seen. Amidst this chaos, crypto assets such as bitcoin demonstrated remarkable resilience, even capitalizing on the banking sector’s misfortunes. Concurrently, other repercussions unfolded, including the de-pegging of the second-largest stablecoin, managed by Circle, following the disclosure of difficulties in retrieving .3 billion from the now-insolvent Silicon Valley Bank (SVB).
The Triple Shock of U.S. History’s Largest Bank Failures
In 2023, the U.S. witnessed the second, third, and fourth largest bank failures in its history, culminating in the failure of four significant institutions: Silvergate Bank, Silicon Valley Bank (SVB), Signature Bank, and First Republic Bank. The cascade of collapses began with Silvergate Bank, which set off a chain reaction with its voluntary liquidation announcement on March 8, 2023.
Known for its cryptocurrency-friendly services, Silvergate’s fall was partly attributed to an investigation by the U.S. Department of Justice (DOJ) into its connections with the fallen crypto exchange FTX and the quantitative trading firm Alameda Research. Silvergate’s collapse may not rank among the most substantial, with reported losses of billion, yet it started the sequence leading to the downfall of Silicon Valley Bank (SVB) and others. SVB encountered trouble shortly afterward, on March 10, 2023.
With 9 billion in assets at the time of its failure, it stood as the third-largest bank collapse in U.S. history after Washington Mutual in 2008. The shuttering of SVB by the U.S. Federal Deposit Insurance Corporation (FDIC) and the California Department of Financial Protection and Innovation left significant uncertainty about the fate of deposits exceeding the insured 0,000 limit. The bank’s closure on a Friday left many in suspense over the weekend, uncertain about the status of their uninsured deposits.
While various crypto firms utilized Silvergate’s SEN Leverage product, the downfall of SVB precipitated a drop in Circle’s usd coin (USDC) from its targeted parity, consequently leading to the depegging of five additional stablecoins from their dollar value. The trigger for this occurrence was Circle’s revelation that it had .3 billion in SVB. Despite efforts to withdraw these funds, the company faced uncertainty about the completion of the transfer. In response to the depegging incident, the company issued a statement committing to cover any potential shortfall.
Simultaneously, the U.S. experienced its fourth-largest banking collapse with the takeover of the crypto-accommodating Signature Bank by New York regulators and the FDIC. Possessing 8 billion, the incident prompted the U.S. government and central bank to unveil a Bank Term Funding Program and Exchange Stabilization Fund for domestic banks. The FDIC additionally assured full coverage for all uninsured depositors of both SVB and Signature Bank. Following these interventions, Circle’s USDC swiftly rebounded, steering back toward its dollar parity.
Despite government assurances of a stable banking system, reality proved otherwise. Mere days before Silvergate’s liquidation, First Republic Bank’s stock plummeted and failed to rebound. In the wake of SVB’s downfall, First Republic faced “unprecedented deposit outflows,” reporting the departure of 0 billion in deposits. By April 28, the FDIC was on the hunt for potential buyers for the beleaguered institution. Come May 1, 2023, regulators seized and sold the bank to JPMorgan Chase, marking it as the second-largest U.S. bank by assets to collapse following Washington Mutual.
In 2023, the U.S. banking crisis emerged as a stark narrative of widespread institutional failures and urgent counteractions, exposing the fragility inherent in today’s financial ecosystem. The tumultuous developments of the year necessitated a critical reassessment of banking soundness and led to the continued consolidation of the modern banking structure. This series of collapses resulted in a dense unification of assets and influence, heightening apprehensions about systemic vulnerabilities and the monopolistic inclinations of the banking sector in general.
What do you think about the collapse of the major banks in the U.S. this year? Share your thoughts and opinions about this subject in the comments section below.
‘If You Want to Understand Bitcoin’s Value, Look at Politicians’ Hate Toward It,’ Says Sean Ono Lennon
Sean Ono Lennon, the acclaimed American-British musician and son of Beatles icon John Lennon, revisited the subject of bitcoin on social media platform X, formerly known as Twitter. He poignantly observed, “If you want to understand how valuable bitcoin truly is, look how much our politicians hate it.” Previously, Lennon has shared insights about the leading digital currency, highlighting that it offers him a sense of hope amidst an “ocean of destruction.”
Sean Ono Lennon Speaks Out on Bitcoin’s Value Amidst Political Pushback
A versatile artist, Lennon, who is also a part of The Claypool Lennon Delirium and the Plastic Ono Band, has previously expressed his views on bitcoin (BTC). In 2020, he described bitcoin as a tool that “empowers individuals,” and shared that it brought him “more optimism” in the turbulent year of 2020. In May 2021, he sharply criticized those who, driven by today’s accelerated consumerism, were voicing complaints about the electricity consumption of the Bitcoin network.
On Dec. 21, 2023, Lennon brought up bitcoin once again and said:
If you want to understand how valuable bitcoin truly is, look how much our politicians hate it. Look how much Mr. Dimon hates it. Look at Warren. Its value is inversely proportional to how threatened they feel. That’s all you need to know.
Lennon’s comments came after remarks from JPMorgan chief Jamie Dimon and U.S. Senator Elizabeth Warren about bitcoin. Dimon has expressed a hypothetical scenario of shutting down cryptocurrencies if he were in charge of the government, while Warren has been actively challenging the crypto sector since early 2023. She recently introduced a bipartisan bill aimed at regulating cryptocurrencies under existing banking laws.
After Lennon’s post on X, a user commented, suggesting that authorities could “regulate it into devaluation.” Lennon quickly retorted, “They’re trying.” Another participant on X referenced Lennon’s father, critiquing bitcoin as antithetical to John Lennon’s values and dismissing it as a fleeting, hyped phenomenon benefiting only a few at the expense of many. They doubted its sustainability, requesting authenticity with the phrase, “Gimme some truth.”
Lennon didn’t hesitate to respond to this critique as well, asserting, “Sorry but you have zero understanding of what you’re talking about.”
Do you agree with Sean Ono Lennon’s views about bitcoin? Let us know in the comments section below.
SEC Chair Gensler Reveals Regulator Is ‘Taking a New Look’ at Spot Bitcoin ETF Filings
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has revealed that the regulator is taking a new look at spot bitcoin exchange-traded fund (ETF) applications based on recent court rulings. “We had in the past denied a number of these applications, but the courts here in the District of Columbia weighed in on that,” Gensler explained.
Gensler: ‘We’re Taking a New Look’
The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, answered some questions regarding spot bitcoin exchange-traded fund (ETF) applications in an interview with CNBC on Thursday.
“We have, I think, between eight and a dozen filings … that’s going through the process right now,” Gensler explained, emphasizing that as the chairman of the SEC, he’s not going to prejudge any particular filing. According to public records, there are currently 13 spot bitcoin ETF applications pending at the SEC.
“As you might know, we had in the past denied a number of these applications, but the courts here in the District of Columbia weighed in on that,” the SEC chairman noted, adding:
So we’re taking a new look at this based upon those court rulings.
Gensler’s comments stemmed from a legal dispute involving the SEC’s denial of Grayscale Investments’ application to convert its bitcoin trust (GBTC) into a spot bitcoin ETF. The court subsequently ordered the SEC to reevaluate the crypto asset manager’s application.
Commenting on whether the SEC has objection to the court ruling in the Grayscale case, Gensler said: “We do everything at the Securities and Exchange Commission within the laws Congress has passed and how the courts interpret them. We look keenly to the economics.” Gensler similarly told Bloomberg this week that the securities regulator does things according to its authorities and how the courts interpret them.
Regarding the crypto market, Chair Gensler stated: “I would say this about the crypto field … There’s a lot of noncompliance. Noncompliance with the securities laws that are there to help give you the disclosure so you can make the investment decision, but also to protect you against fraud and manipulation. And there’s been far too much fraud and bad actors in the crypto field. There’s a lot of noncompliance, not only with the securities laws but other laws around any money laundering and protecting the public against bad actors there.” He further stressed:
This is a field where you still don’t have the fundamental information on many of these projects. And the intermediaries of the so-called crypto exchanges are commingling and doing things that we do not allow anywhere else in our financial system.
What do you think about the statements by SEC Chairman Gensler? Let us know in the comments section below.
Binance’s American VIPs: A Revealing Look at High-Net-Worth Influence Amid DOJ Settlement
On Tuesday, charges against crypto exchange titan Binance Holdings Limited were revealed by the U.S. Department of Justice (DOJ), which reached a significant .316 billion settlement with the world’s largest crypto exchange for noncompliance with anti-money laundering (AML) laws. Despite Binance’s 2019 claims to bar U.S. users, prosecutors asserted the firm persisted in providing market access to elite, VIP American patrons, who supplied roughly “one-third” of company trading revenue.
The Whales of Binance Decoded in DOJ Court Filing
Shockwaves continue rippling through the crypto sphere following the seismic DOJ, U.S. Treasury and Commodity Futures Trading Commission (CFTC) .3 billion settlement with Binance over allegations of knowingly shirking registration as a money services business. As alleged within the unsealed court documents, Binance and ex-CEO Changpeng Zhao (CZ) violated AML laws and the Bank Secrecy Act among other agency regulations.
The charges also highlighted Binance’s practice of maintaining a steady stream of very important people (VIPs) from the U.S., even after claiming to no longer serve U.S. customers following the establishment of Binance US. The unsealed document delved into Binance’s VIP clientele, revealing that high-net-worth individuals had contributed significantly to the exchange’s revenue.
“Although Binance announced it would block U.S. users and establish a separate exchange that would serve the U.S. market, Binance retained a substantial portion of its user base on Binance.com, with a particular focus on U.S.-based VIPs, including trading firms that made markets on Binance.com,” the court filing details.
11,000 VIP Whales Accounted for 70% of Binance’s Revenue in 2019
Per the court documents originally sealed on November 14, 2023, upon learning the formidable roster of 3,500 American VIP users in June 2019, CZ was briefed that 11,000 whale clients represented 70% of Binance’s trading volume, with U.S. VIPs comprising “about one-third” of this highly-lucrative bracket. By June 25th, CZ and three Binance brass began sketching strategies to clandestinely retain U.S.-based VIP users through direct phone communication.
An unnamed informant mentioned in the court filing revealed that Binance executives labeled American patrons “miscategorized,” with an internal “VIP handling” guidebook coaching employee management of these elite spenders. For example, this document reportedly demanded that privileged users open accounts sans any “U.S. documentation,” to ensure the confidentiality of the user. By 2020, the DOJ said that Binance still had a substantial amount of U.S.-based clientele but these customers were referred to as “unknown.”
In August 2021, Binance publicly explained that all users complied with know-your-customer (KYC) regulations, but the DOJ said that a higher tier of customers who did not submit KYC documentation were grandfathered until May 2022. During that time, the DOJ claims that Binance did not “systematically monitor transactions” on the platform. While none of the VIPs or market makers were mentioned in the court document, the filing gives a glimpse at how much power and impact crypto whales have in the industry.
What do you think about the details about Binance’s VIP customers? Share your thoughts and opinions about this subject in the comments section below.
Bit.Store Introduces Privacy-First Virtual Crypto Mastercard and Unveils Website’s New Look
PRESS RELEASE. Bit.Store, a pioneer in the Web3 revolution, is delighted to introduce its freshly redesigned website and the official release of the Bit.Store Virtual Crypto Card. With an unwavering commitment to facilitating seamless crypto transactions, Bit.Store is actively shaping the future of digital payments, making it more accessible to all through its innovative card solutions.
Embrace the new face of Bit.Store, where the website’s transformation reflects a user-first philosophy. The redesign crystallizes Bit.Store’s commitment to a superior user journey, marrying sleek modernity with the brand’s pioneering essence.
The website overhaul showcases a sleek layout that prioritizes ease and efficiency. Users are greeted with clean lines, simplified content, and adaptive design, ensuring a flawless experience on any device. This revitalized portal paves the way for direct engagement with Bit.Store’s array of services.
One Bit.Store Card for All Your Web3 Needs
The Bit.Store Virtual Crypto Card, a Mastercard prepaid card, sets itself apart with its exceptional features:
- KYC Free: Say goodbye to the cumbersome KYC process and sign up effortlessly from anywhere, at any time.
- Zero Issuing Fee: The Bit.Store virtual card comes with no issuing fees, inactivity fees, annual fees, and no purchase fees for transactions up to ,000.
- Seamless Access: Available in both virtual and physical forms, the Bit.Store Card integrates directly with Apple Pay and Google Pay. Cardholders can easily add the Bit.Store Card to their preferred mobile wallets, allowing for acceptance at over 100 million merchants worldwide through MasterCard. Transactions are smooth, coupled with automatic crypto-to-fiat conversion. It also supports various services, including OpenAI subscriptions, Amazon, Netflix, and more.
- Card Variability: Users have the flexibility to choose from multiple card BIN numbers allowing them to adjust the card capabilities according to their needs.
- Fortified Security: The fusion of Mastercard’s trust and an extra layer of 2FA ensures top-tier security.
- The Physical Card Beta: For those who value physical transactions, this option extends the virtual card’s convenience into the physical realm. Available end of Q4 2023.
“Our mission at Bit.Store has always been to bring the benefits of cryptocurrency into the everyday lives of people. We’re excited to introduce our new website, designed with a focus on user-friendliness and accessibility. It reflects our dedication to simplifying the crypto experience. The launch of the Bit.Store Virtual Crypto Card, with no KYC requirements and zero issuing fees, is a significant step towards making crypto payments easier and more convenient for everyone.” commented Bit.Store CEO.
About Bit.Store
Bit.Store is your gateway to seamless cryptocurrency integration in the real world. Committed to safeguarding privacy and ensuring user-friendly accessibility, our virtual and physical cards allow for crypto conversions, enabling secure and simple spending across online and offline in-store platforms. Bit.Store redefines the ease of crypto asset management — store, spend, and earn with confidence and simplicity.
Website | Twitter | Telegram | Discord | Bit.Store Card
This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.