News On Bitcoin - Week 29 2024

Weekly update on all things Bitcoin

July 23, 2024

TL;DR

  • BTC is up

  • Bitcoin dominance is up

  • Bitcoin Surges Above $66K Amid Market Momentum

  • Mt. Gox Transfers $6 Billion in Bitcoin

  • BlackRock's Bitcoin ETF Sees Major Inflows

  • StarkWare Achieves Zero-Knowledge Proof on Bitcoin

  • BlackRock's Fink Acknowledges Bitcoin as Digital Gold

  • Craig Wright Admits He's Not Satoshi Nakamoto

  • Putin Orders Crackdown on Bitcoin Mining in Russia

  • Bitcoin Layer-2 Solutions Revitalize Asian Crypto Mining

  • Marathon Digital's Innovative Shift in Bitcoin Mining

Bitcoin Price

Crypto is up this week, with BTC being up 16.1% and ETH up 12.5%:

Bitcoin dominance has increased over the week, rising from 51.1% to a peak of 52.03% and ending at 52.03%. Bitcoin is up due to strong bullish momentum, significant short position liquidations, successful breakouts above key levels, positive market sentiment, and ongoing institutional interest.

It’s going to be interesting to see whether this trend will continue in the short term, as capital in crypto tends to flow initially to BTC and then further out on the risk-curve, starting with altcoins like ETH and then into mid- or low-cap coins.

The market is experiencing bullish momentum with significant price increases for major cryptocurrencies. Short positions are being liquidated, and anticipation of major events like the Ethereum ETF launch is driving optimism. Key resistance levels are being tested, and institutional investment is supporting the positive trend.

Bitcoin (BTCUSD) Analysis:

On July 19, Bitcoin surged to a one-month high near $67,000, rising sharply from $63,303 in just four hours. The current price action shows a strong uptrend with higher highs and higher lows, suggesting that bullish momentum remains strong. Key breakouts above significant levels indicate that bulls are in control.

Expected Trading Ranges: between $66,880 and $67,000

Market Outlook

Bitcoin’s recent rally highlights strong bullish momentum. However, retail demand is at a three-year low, with institutional investors driving the market. The long-term outlook remains positive, with potential for further gains if retail interest picks up and Bitcoin continues its upward trend.

BTC/ETH ratio has seen a increase:

Over the last six days, the BTC to ETH conversion rate has generally increased, starting at 18.64 ETH on July 13 and rising to 19.09 ETH by July 19. Despite minor fluctuations, including a dip to 18.60 ETH on July 15, the overall trend shows a net increase in the conversion rate, indicating that Bitcoin has strengthened against Ethereum during this period.

Financial News

Mt. Gox's rehabilitation trustee transferred approximately $6 billion worth of Bitcoin to new wallets, advancing efforts to repay creditors from the 2014 hack. On-chain data reveals that around 95,870 BTC were moved in two transactions, with the first 47,000 BTC valued at nearly $3 billion. These funds are part of the $9 billion owed to creditors. Kraken confirmed receipt of these funds, informing creditors to expect distribution within 7-14 days.

Despite market fears of potential price drops from immediate liquidations, most creditors are expected to hold their coins. The reimbursement marks a significant step in resolving one of Bitcoin's most notorious incidents, showcasing the community's resilience and commitment to transparency.

Bitcoin's price soared to a one-month high, reaching nearly $67,000 as bullish factors converged. On July 19, BTC/USD spiked from $63,303 to $66,506 within four hours, fueled by short trader liquidations and positive market sentiment. Independent analyst Caleb Franzen noted the continuation of the uptrend, with Bitcoin breaking key resistance levels. This surge led to a total of $131.65 million in liquidations within 24 hours.

Despite the rise, retail demand for Bitcoin remains at a three-year low, according to MN Capital's Michaël van de Poppe. Institutional investments dominate the market, with retail investors yet to drive the anticipated bull run. Analysts predict that significant retail buying volume will eventually propel Bitcoin into a parabolic uptrend, potentially pushing prices above $200,000.

BlackRock's iShares Bitcoin Trust saw significant investor interest, attracting $260 million on July 16, contributing to a total of $422.5 million in net inflows for US spot Bitcoin ETFs, marking the eighth consecutive day of positive inflows. This surge represents the strongest trading day since June 5. Fidelity's Wise Origin Bitcoin Fund and ARK 21Shares Bitcoin ETF followed with $61.1 million and $29.8 million, respectively.

BlackRock's Bitcoin holdings now exceed $20 billion, bolstered by a recent purchase of 4,004 Bitcoin and a 3% price rise since Monday. This milestone comes shortly after CEO Larry Fink acknowledged Bitcoin as a "legitimate" financial instrument. Bitcoin's price has risen 13.1% over the last week, currently at $65,470, following concerns over German government Bitcoin sales and Mt. Gox repayments.

Adoption News

An open-source collaboration between StarkWare and L2 Iterative has verified the first zero-knowledge proof on Bitcoin's testnet, marking a significant milestone. Spearheaded by Weikeng Chen, this project involved moving computations for zero-knowledge proofs to Bitcoin's network using the OP_CAT script.

StarkWare’s Eli Ben-Sasson highlighted the importance of this development, calling it a step towards closing the technology gap between Bitcoin and advanced cryptographic tools. Chen, despite challenges, remains optimistic about future innovations, emphasizing the need for a cohesive vision to attract talented developers to Bitcoin's ecosystem.

BlackRock CEO Larry Fink, previously a skeptic, now recognizes Bitcoin as "digital gold" and a legitimate financial instrument. In a CNBC interview, Fink highlighted Bitcoin's potential for uncorrelated returns, especially during economic instability and currency debasement. He noted Bitcoin's value for individuals in countries facing economic challenges.

BlackRock's iShares Bitcoin Trust has become the largest Bitcoin exchange-traded fund, with inflows surpassing $18 billion this year. Following Fink's comments and other positive developments, Bitcoin's price surged, reversing recent negative trends and rising above $60,000.

Craig Wright has issued a legal disclaimer on his website, stating he is not Bitcoin's creator, Satoshi Nakamoto. This follows a ruling by the UK High Court of Justice, influenced by the Crypto Open Patent Alliance (COPA), which provided substantial evidence debunking Wright's claims. The disclaimer acknowledges Wright is not the author of the Bitcoin white paper and does not hold its copyright.

In 2023, Wright sued several Bitcoin developers for copyright violations, asserting he was Satoshi. COPA's evidence and expert testimonies revealed Wright's forgeries and metadata tampering. The court ruled against Wright, leading to his assets being frozen and recommending a perjury investigation by the Crown Prosecution Service.

Mining News

Russian President Vladimir Putin recently voiced concerns about the unregulated rise in Bitcoin mining during a government meeting. He highlighted that Bitcoin mining consumes around 16 billion kilowatt-hours annually, representing 1.5% of Russia's total electricity usage.

This surge in energy consumption, particularly in regions like Dagestan, has caused power outages and stressed aging infrastructure. Putin warned that unchecked electricity use for mining could hamper new businesses and critical infrastructure projects.

The rise of Bitcoin layer-2 (L2) solutions is transforming the Asian crypto landscape, particularly for miners facing profitability challenges post-Bitcoin halving. Bitcoin halving, which reduces mining rewards, has pushed miners to seek alternative revenue streams. Bitcoin L2s, such as staking mechanisms, provide new income opportunities without selling holdings.

Prominent figures like Robbie Liu and Yongjin Kim highlight that L2 solutions offer necessary innovation, allowing miners to maintain profitability and boosting capital efficiency. Asian countries, including Vietnam, Thailand, Singapore, and Hong Kong, are becoming crypto-friendly hubs, attracting talent and capital.

Marathon Digital Holdings is redefining bitcoin mining by evolving into a multifaceted technology platform. In a discussion with Rob Nelson, VP Paul Giordano explained Marathon's innovative strategies, highlighting their work on cooling systems, heat reuse, and energy capture from renewable sources. One pilot project involves using mining machine heat to warm apartment buildings, showcasing their commitment to sustainability.

Giordano emphasized Marathon's forward-thinking approach, anticipating the 2028 bitcoin halving's impact on rewards. While their current focus includes energy and smart contracts, Giordano mentioned that Marathon is exploring opportunities in AI and high-performance computing. This diversification aims to expand their technological applications beyond mining, positioning them for long-term success.

Thanks for reading our newsletter!
Like, Subscribe and Share to support our work.