Good morning to all crypto enthusiasts! Today we delve into the current market situations, Bitcoin blockchain developments, and what the future might hold. Starting off with Bitcoin and ether, both are experiencing a flat start in the East Asia trading day, with Bitcoin down by 0.6% to $27,037 and ether up 0.4% to $1,824.
On the brighter side, according to Cobo data, confidence in the cryptocurrency market, which hit its lowest point in February 2022, is showing signs of recovery since March. Cobo’s AUC (Asset Under Custody) has bounced back to November 2022 levels. But with the surge in memecoins, investors are rotating profits made from cryptocurrencies into memecoins, resulting in a decline in general interest in crypto, leading Charmyn Ho, head of crypto insights at Bybit, to suggest attractive accumulation zones for long-term HODLers.
One hot topic in the current environment is the debate around whether Bitcoin is a store of value or a hedge against risk. With the upcoming halving event in early 2024, the narrative around Bitcoin’s role is far from settled. Cobo CEO Mao Shixing shares that, from an economic point of view, the halving doesn’t play a significant role, but it does provide a good narrative. He further discusses the potential impact on miners if Bitcoin doesn’t stabilize above $30,000 post-halving.
The recent congestion on the Bitcoin blockchain, which caused Binance to temporarily disable withdrawals, has eased, resulting in the number of unconfirmed transactions falling to 260,000. This has, however, taken the momentum away from bitcoin alternatives like bitcoin cash (BCH) and bitcoin SV (SBV). High fees due to the demand for block space have boosted miner revenue without new users, raising questions on whether the introduction of BRC-20 tokens and NFTs will change Bitcoin’s relationship with ether.
The 30-day rolling correlation between Bitcoin and ether has dropped to 77%, its lowest since 2021, indicating a possible long-term decoupling of the two largest cryptocurrencies. This could boost trading activity in bitcoin-ether pairs on major exchanges, creating new opportunities for traders.
Are we seeing a material change in Bitcoin’s narrative, or is this just a passing annoyance? As we continue to monitor the developments in the cryptocurrency world, we eagerly await to see how the interplay between Bitcoin and ether will evolve in the future. Stay tuned!
Source: Coindesk
