Tag: Bitcoin News

Bitcoin continues to showcase resilience with sustained upward momentum in challenging market conditions.

Recent data from CryptocurrenciesToWatch shows that Bitcoin has surged in price by a remarkable 6%, currently trading at $62,500 at the time of writing. This is a surprising turn of events, as the world’s leading crypto asset has exceeded expectations by experiencing a significant price surge despite witnessing its largest ETF outflow on May 1.

According to a recent post by SolanaFloor on X, one of the contributing factors could be the inflow of $63 million into Grayscale’s ETF (GBTC) on Friday. This marks the first inflow since the launch of Bitcoin ETFs and ends the 78-day outflow streak that GBTC has been experiencing.

A Surprising Price Surge

In addition to the GBTC’s first inflow, the recent surge in the price of Bitcoin can be partly attributed to the integration of Runes, which promises to revolutionize the Bitcoin ecosystem by enabling the creation of fungible tokens in a more efficient and streamlined manner. Developers can leverage Runes to build decentralized finance (DeFi) protocols on the Bitcoin network, as well as launch new cryptocurrencies that benefit from the security and stability of Bitcoin.

The integration of Runes has brought about a new wave of excitement and hope in the world of cryptocurrency. Referencing a recent post on X by IntoTheBlock, the number of Bitcoin transactions has witnessed a significant rise, reaching up to 927,000 on April 23, following the launch of Runes. This is a clear indication of the positive impact that Runes has had on the cryptocurrency market.

Bitcoin hit a new all-time high in daily transactions!

Following the launch of Runes, The number of Bitcoin transactions has increased rapidly, hitting 927,000 on Tuesday. This breaks the previous high of 724k set in December of 2023 pic.twitter.com/30JXbrLmdR

— IntoTheBlock (@intotheblock) April 26, 2024

Bitcoin has been proving its resilience in the face of challenging market conditions. Despite significant outflows from institutional investors, the cryptocurrency has managed to weather the storm while also benefiting from technological advancements such as Runes integration. These factors underscore its status as a formidable player in the financial landscape, demonstrating the potential for a decentralized digital currency to hold its own against traditional forms of currency.

Grayscale finally records a green day for its spot Bitcoin ETF, having an inflow of about $63 million.

After a challenging period of 80 days with billion-dollar outflows, Grayscale’s Bitcoin Trust (GBTC) has shown resilience. It has stopped the bleeding and ended the day on a positive note. According to Farside, GBTC ended yesterday’s market day with an inflow of about $63 million, a remarkable 80% higher than BlackRocks iShares Bitcoin Trust (IBIT), which recorded an inflow of only $12.7 million.

Money Flows Into GBTC

Since the U.S. Securities and Exchange Commission (SEC) approved the spot bitcoin ETF in January, Grayscale has witnessed 80 market days of straight outflows, moving from 600,000 bitcoins to 297,000 bitcoins. Grayscale has sold more than half its bitcoin holdings worth about $17.5 billion. 

Amidst the outflow, the company has sought solutions, including launching a new bitcoin ETF known as Grayscale Mini Bitcoin Trust with the ticker BTC. This ETF will operate with lower maintenance charges than GBTC. Grayscale CEO has also promised to reduce the fees for GBTC as the bitcoin ETF market grows. 

Despite all its losses, GBTC remains the most prominent spot Bitcoin ETF by assets, holding over $18.7 billion worth of assets under management (AUM). Its closest competitor is BlackRock’s IBIT, which manages assets worth about $17.2 billion.

With its first inflow on Friday, Grayscale is seeing the beginning of better market days for its bitcoin ETF as it begins to rise alongside competitors.

Bitcoin ETF Market Summary For Friday

Closing the market on Friday, Grayscale’s GBTC and Franklin’s Bitcoin ETF, EZBC, recorded their best market days with inflows of $63.0 million and $60.9 million, respectively. Fidelity’s Bitcoin Fund (FBTC) led the market with an inflow of about $102.6 million. 

BlackRock’s IBIT had its first inflow of $12.7 million for the first time in the last seven market days. The Bitcoin ETF market had a total inflow of $378.3 million, its highest since the past 28 market days. 

BlackRock’s Bitcoin ETF had its first outflow day of $36.9 million on Wednesday, leading the ETF market to reach an all-time peak outflow of $563.7 million. 

Amidst the bullish Bitcoin ETF day, the price of bitcoin has also risen. Yesterday, it crossed the $63,500 mark. At press time, bitcoin trades above $63,000. 

The unknown trader may have lost over 97% of their asset portfolio, over $67.8 million. 

An unknown trader has reportedly lost a whopping $68 million worth of Wrapped Bitcoin (WBTC) in a single transaction in an address-poisoning scam. 

WBTC, an ERC-20 token on the Ethereum blockchain pegged to Bitcoin. It allows for the use of Bitcoin in smart contracts and makes the world’s largest cryptocurrency more accessible on decentralized exchanges (DEX).

Address poisoning, a strategy often employed by malicious actors that involves manipulating the receipt address during a transaction. In this case, the unknown trader fell victim to a well-organized attack in which the destination address was changed, and all funds were diverted to the attacker’s wallet instead of the intended recipient.    

How the Scam Was Revealed

On-chain security firm Cyvers initially disclosed the $68 million theft in a post on the X platform on May 3.   

“Are we mistaken, or has someone truly lost $68 million worth of $WBTC? Our system has detected another address falling victim to address poisoning, losing 1,155 $WBTC,” Cyvers Alert shared.  

According to CoinStats, wallet “0x1E,” identified as the victim, has lost more than $67.8 million, or over 97% of its entire asset portfolio. 

Fraud Linked to ZKasino

Meanwhile, last month, investors lost over $33 million in a fraud linked to the ZKasino gambling platform. On April 29, Dutch authorities apprehended a suspect connected to the scam.    

Despite the ZKasino incident, crypto losses due to scams and hacks in April were estimated to be $25.7 million, the lowest figure recorded since 2021, when on-chain intelligence firm Certik began monitoring the data.   

The report indicates a 141% decrease in losses from hacks, exploits, and scams compared to the previous month. The decline is primarily attributed to a lack of private key compromise. There were only three private key leaks in April, whereas they experienced over 11 attacks in March.

Lastly, ZKasino compounded investor worries by transferring all 10,515 Ether (ETH) deposited on April 22 into the Lido staking protocol. CertiK’s report noted that if ZKasino were confirmed as a malicious actor, the firm would adjust its data accordingly.

The Zeus Network’s bridging protocol, APOLLO, will enable Bitcoin holders to interact with the Solana DeFi ecosystem

Zeus Network has recently announced the upcoming launch of its much-anticipated Zeus Program Library (ZPL) by the third quarter of 2024. This innovative development is set to integrate the Solana (SOL) and Bitcoin (BTC) ecosystems seamlessly, enabling developers to incorporate Solana support into decentralized applications.

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Empower your native Bitcoin asset with ZPL, making it fast and seamless on Solana ⛈️

The Zeus Program Library (ZPL) is a set of programs that revolutionize how you engage with Bitcoin assets on Solana, seamlessly introducing assets like $BTC, Runes, and Ordinals as… pic.twitter.com/ZoOfjmzUPE

— Zeus Network 🟧⛈️🟣 (MUSES) (@ZeusNetworkHQ) May 1, 2024

“With a market cap of approximately 1.2 trillion dollars and over 11,000 Runes generating over $135 million in fees within the first week on the Bitcoin blockchain, the potential for value transfer is immense,” Zeus said on Medium.

This demonstrates the significant activity and financial participation inside the Bitcoin ecosystem, which ZPL intends to tap upon.

The Zeus Network is designed to support versatile digital interactions, from DeFi to GameFi and SocialFi on the Solana blockchain. These assets can be either fungible or non-fungible, providing flexibility and ease of use for a variety of use cases. Unlike Bitcoin, which has structural limitations that make it difficult to implement these types of interactions, Solana’s advanced technology helps unlock the full potential of ZPL-Assets.

Enabliing Solana-Bitcoin Interoperability

The Zeus Network’s bridging protocol, APOLLO, enables users to seamlessly deposit Bitcoin and receive ZPL-wrapped Bitcoin (zBTC) tokens in return. These tokens can be conveniently utilized across a wide range of platforms within the Solana ecosystem, such as decentralized exchanges, NFT marketplaces, lending, borrowing, and gaming sectors. With this integration, users can enjoy greater flexibility and convenience in managing their digital assets.

Zeus Network has some exciting plans for the future of ZPL-supported assets on Solana. The upcoming are the highly anticipated Bitcoin Runes and Ordinals, which are set to be introduced as zRuneX and zOrdX, respectively. These additions are expected to enhance flexibility and utility for digital assets across both blockchain networks.

Additionally, Zeus Network plans to enable Bitcoin staking on its Apollo mainnet within the same timeframe. This development aims to boost the potential of digital assets, providing investors with even more opportunities to reap the benefits of the expanding blockchain ecosystem.

Coinbase users can now receive, send, or pay with Bitcoin through Lightning directly from their Coinbase account.

The cryptocurrency exchange, Coinbase, has recently announced the implementation of the Lightning Network to facilitate instant and low-cost Bitcoin transactions. This implementation aims to transform Bitcoin’s transaction capabilities and improve its overall usability.

Starting today, support for the Lightning Network via @lightspark will begin rolling out.

Enjoy instant, low-cost BTC transfers.

Learn more: https://t.co/6YPiWgIyyf pic.twitter.com/ufOhO7Qe7i

— Coinbase 🛡️ (@coinbase) April 30, 2024

Coinbase Now Supports Bitcoin Lightning Network

The Lightning Network is a Bitcoin Layer-2 solution that enables users to send Bitcoin units called satoshis instantly and at almost zero cost. It was initially referred to as the ultimate solution to Bitcoin’s scaling issues, but widespread adoption has been slow due to concerns about usability and the perception that Bitcoin is still in its early stages as a store of value.

According to the official blog post by Coinbase, Lightning Network reduces the cost of sending BTC by 20 times less than the average 2% credit card fees, making it an affordable and efficient alternative. Furthermore, it significantly reduces the transaction fees for wire transfers, which can cost users up to $30.

Blockchain Revolutionizing Global Payments 

The current global payments system is plagued by its sluggish pace and exorbitant fees, making it challenging for individuals worldwide to access seamless and affordable payment solutions. Nevertheless, blockchain technology is revolutionizing the way we make payments, offering faster, more secure, and cost-effective alternatives to traditional finance.

Coinbase is currently ranked as the fourth largest cryptocurrency exchange in the world, according to CoinGecko. It is also the largest digital asset trading platform in the United States. In a bid to improve the user experience and facilitate faster and cheaper transactions on its platform, Coinbase has partnered with Lightspark to integrate the Lightning Network. This move reinforces its commitment to supporting Bitcoin and the crypto ecosystem

Viktor Bunin, a protocol specialist for Coinbase, couldn’t contain his excitement as he announced the news of the partnership. In his recent post on X, he said, “I could not be more proud of the team for shipping it so quickly. Growing Bitcoin adoption increases economic freedom in the world.”

Notably, Coinbase’s Lightning Network integration is not available in New York and Canada.

MicroStrategy’s bitcoin purchase spree continues, adding 112 BTC to its holdings this April.

MicroStrategy’s commitment to bitcoin is unwavering. Despite the recent downtrend in BTC price, the company invested $7.8 million in acquiring bitcoins in April. As Michael Saylor, MicroStrategy’s executive chairman, revealed, the company acquired 112 bitcoins worth about $7.8 million this month.

In April, @MicroStrategy acquired an additional 122 BTC for $7.8 million and now holds 214,400 BTC. Please join us at 5pm ET as we discuss our Q1 2024 financial results and answer questions about the outlook for #BusinessIntelligence and #Bitcoin. $MSTR https://t.co/h40yyrgEb0

— Michael Saylor⚡️ (@saylor) April 29, 2024

MicroStrategy Now Holds 214,400 BTC

MicroStrategy’s financial performance in the first quarter of 2024 is a testament to its position as the world’s first bitcoin development company. As detailed in its first-quarter reports released this morning, the company executed capital market strategies, raising $1.5 billion, and allocated $1.5 million more to acquire BTC.

In the first quarter of 2024, MicroStrategy acquired 25,250 bitcoins for $1.65 billion at an average price of $65,323 per coin. 

MicroStrategy now holds a staggering 214,400 bitcoins, purchased at an average price of $35,180 per BTC. The company has spent more than $7.5 billion on bitcoin acquisitions, demonstrating its confidence in the cryptocurrency market. It holds more than 1.02 percent of bitcoin’s total supply.

In his recent post on X, Michael Saylor continues to express his solid optimism about bitcoin. He went on a trip to Brazil for a meeting with investors, bankers, technologists, and executives, further underscoring his belief in bitcoin’s potential in the financial market.

Bitcoin Dumps Below $62,000

Following the bitcoin halving event ten days ago, the price of bitcoin has not passed the $67,250 mark. Despite an intense battle between buyers and sellers, the cryptocurrency has shown a solid bearish trend, dropping below $62,000 this morning. 

At press time, bitcoin trades between $61,800 and $61,400, with many red candles forming, indicating a further dump in price.  Farside shows that U.S. Bitcoin ETFs are a part of the bearish movement. The market has recorded four straight market days of outflows worth more than $473 million.

However, market analysts and crypto investors remain bullish. They expect a change in market structure soon, and they expect the market to reach a new all-time high before the year ends. 

The solo miner made about $200,000 by mining block 841,286.

On April 28, Con Kolivas, a software engineer and administrator from the solo mining pool ckpool, shared on X that a miner solved the 282nd solo block in the history of Bitcoin.

Kolivas noted that the miner had a significant hash rate of about 120 PH (peta hashes) at that time, equivalent to around 0.12 EH (exa hashes). Its average weekly hash rate was roughly 12 PH, approximately 0.02% of the total network hash rate.

The reward for solving block 841,286 (282nd solo block) had been reduced from 6.25 BTC to 3.125 BTC in the Bitcoin halving event at block 840,000 on April 20. This meant that the reward was worth approximately $200,000 based on the BTC prices.

The Significance of Solo Mining

After analyzing the block-solve summary, Kolivas speculated that the miner had moved from pooled mining to solo mining after the halving. This was probably because they were no longer able to recoup their electricity costs. Alternatively, the miner may have been intermittently renting or hashing large amounts of solo blocks.

Bitcoin mining involves using computational power to solve and add the next block to the network. As the price of Bitcoin has increased, mining has become more popular, resulting in increased competition and hash rates. As a result, it has become almost impossible to solve a block alone.

It is worth noting that mining a valid block solo is a highly uncommon occurrence, which is often compared to winning the lottery. This feat is so rare that it has only occurred 282 times out of approximately 841,300 blocks mined in Bitcoin’s history.

The financial impact of achieving solo mining is noteworthy. Following the recent halving, the reward has been reduced to 6.25 BTC, but its value remains significant due to Bitcoin’s high market price. For example, in March 2023, a solo miner earned a full 6.25 BTC reward, valued at about $150,000 at that time. This demonstrates the variable profitability of mining, which is closely tied to Bitcoin’s market value fluctuations.

The spot Bitcoin ETF market has gained approval and popularity in America and Asia and may extend to Australia before year-end.

The Australian financial markets, a significant player in the global economy, could be the next to embrace a Bitcoin ETF, following in the footsteps of their counterparts in the United States and Hong Kong. According to Bloomberg, the Australian Securities Exchange (ASX) is reportedly planning to greenlight Bitcoin ETF filings before the close of 2024, a move that could potentially reshape the landscape of the Australian financial market.

Australia Financial Markets to Welcome ETFs

As a spokesperson revealed, Betashares is working towards launching a product on the ASX. DigitalX Ltd, alongside VanEck, has also revealed through February reports that both companies have submitted applications pending approval from the ASX.

The ASX trades at a market capitalization of about $2.3 trillion and is one of the world’s top 20 exchange groups, managing more than 80% of the Australian financial market. It regulates about 86 listed securities.

VanEck Australia and BetaShares, two prominent players in the financial market, are among the fund managers vying for the coveted Bitcoin ETF approval. The competition is intense, and the potential entry of other funds before the year-end could further spice up the race, making the outcome even more unpredictable and thrilling.

Undoubtedly, Australian funds will be eyeing a similar success story to their American counterparts. In the United States, Bitcoin ETFs have made a splash, attracting a staggering $53 billion in investment capital since their launch in January. Industry giants like BlackRock and Fidelity Investments have led this success, setting a high bar for Australian funds to match.

Financial analysts are bullish on the Australian market, which is currently valued at a staggering $360.6 billion. They predict that the market will experience significant growth within the next three years. The ASX, the country’s largest stock exchange, plays a pivotal role in this growth, allowing firms to issue securities to the general public for trading. 

About 4.6 million Aussies are already using cryptocurrencies. The approval of different spot Bitcoin and Ethereum ETFs will allow more users to invest in cryptocurrency easily through the funds, speeding up the growth of Australia’s financial value.

Expressing optimism on the impact of bitcoin ETF in Australia, Justin Arzadon, Betashares head of digital assets, said, “The US inflows prove digital assets are here to stay.” Acting on this, the company has reserved tickers for spot bitcoin and ether ETFs.

Bitcoin’s transaction volume has surged in recent weeks, breaking previous records. On Tuesday, the network processed 927,000 transactions, surpassing the previous high of 724,000 set in December 2023.

A tweet by IntoTheBlock attributes the surge to the launch of the Bitcoin Runes protocol in April 2024, which coincided with the last Bitcoin halving event. Similarly, a tweet by Lucas Outumuro, head of research at IntoTheBlock, has shown that Bitcoin transaction fees skyrocketed to $80 million on April 20th, following the launch of Runes.

Unveiling the Functionality of the Runes Protocol

Runes is a new protocol built by Casey Rodarmor, a Bitcoin developer. The project aims to make creating fungible tokens on Bitcoin more efficient.

According to a recent protocol breakdown shared by Rodarmor, “Runes allow Bitcoin transactions to etch, mint, and transfer Bitcoin-native digital commodities.”

Runes introduces a revolutionary mechanism for interacting with the Bitcoin blockchain. They serve as a standardized tokenization system that enables users to “etch” or permanently inscribe any data of their choice onto the Bitcoin ledger. This permanent inscription facilitates secure and tamper-proof record-keeping on the blockchain.

Rodarmor also highlighted that Runes allows the creation and exchange of “interchangeable tokens” that can serve various purposes. These tokens are similar to traditional cryptocurrencies such as Bitcoin, where every unit is identical and easily tradable.

By enabling tokenization directly on Bitcoin, Runes aims to bring a significant advancement to the Bitcoin ecosystem, as it opens a wide range of opportunities. Developers can leverage Runes to create decentralized finance (DeFi) protocols on Bitcoin, as well as launch new cryptocurrencies with the security and stability of the Bitcoin network supporting them.

It’s important to acknowledge that the Runes protocol is still developing. Its long-term impact on Bitcoin’s scalability and fee structure remains to be seen. However, with Runes’ potential to unlock a world of possibilities for digital assets and decentralized applications, Runes could be a major catalyst for the continued growth and evolution of the Bitcoin ecosystem.

Schiff’s question drew backlash from the crypto community, with market participants requesting the source of his data.

Renowned Bitcoin critic Peter Schiff has taken a jab at bitcoin’s (BTC) $100,000 price target, questioning if demand for the cryptocurrency’s exchange-traded funds (ETFs) could drive its value to that level.

Communicating his doubts in a tweet, Schiff mentioned the bearish performance of Bitcoin-related equities, including the stocks of crypto exchange Coinbase (COIN), digital asset investment management firm Galaxy Digital (GLXY), business intelligence firm MicroStrategy (MSTR), and Bitcoin mining firm Marathon Digital (MARA).

Schiff Questions Bitcoin’s Price Trajectory

Schiff claimed the value of the Bitcoin-related shares had plunged significantly within an unspecified period. According to the gold proponent, COIN, GLXY, MSTR, and MARA had fallen 26%, 28%, 38%, and 57%, respectively. Others like Valkyrie Bitcoin Miners ETF (WGMI), Bitcoin mining firms Bitfarms (BITF) and Hive Digital (HIVE) had fallen by 42%, 56%, and 62% as well.

“If #BitcoinETFs are really going to send #Bitcoin to $100K or higher, why are all the Bitcoin related equities in bear markets?” Schiff asked.

Contrary to Schiff’s claims, the shares of crypto-related companies have soared alongside the crypto market since the start of the year, outperforming traditional market stocks. These assets only recorded significant declines recently due to the broader market downturn that intensified over the weekend. 

A Digital Fool’s Gold

Nevertheless, Schiff’s question drew backlash from the crypto community, with market participants requesting the source of his data. 

Bitcoin analyst Willy Woo slammed the critic, saying: “You must be new around here, this is normal par for the course for an asset that should have made you a deca-billionaire when you were recommended it in 2011. Oh wait. Somebody send some love to this man, 13 years of pain he has endured.”

Widely known for rarely missing an opportunity to criticize BTC, Schiff tweeted three days ago that the crypto asset is “clearly” in a bear market after it flash crashed from $67,000 to $61,000. 

Schiff said the value of BTC after the fall was worth 26 ounces of gold at current prices, down 30% from its peak in November 2021, when the “digital fool’s gold” was worth 37 ounces of gold. 

Meanwhile, crypto analysts believe the market’s current downturn is healthy, and such moves are expected before the next halving takes place.