5 On-Chain Metrics Indicate Bitcoin Bull Run is Far from Over

5 On-Chain Metrics Indicate Bitcoin Bull Run is Far from Over

There are five key on-chain indicators that suggest a bullish outlook for the price of Bitcoin. With market dominance above 54% and miner revenue per hash still strong, the data points to more potential gains ahead.

Bitcoin market dominance is above 56%

Historically, when Bitcoin (BTC) dominates the crypto market, it’s often a sign of a bull market. Traders typically sell their altcoins during bear markets, which increases Bitcoin’s market share. 

Conversely, when Bitcoin’s dominance drops and the altcoin season begins, it indicates that the bull market is nearing its end. 

As of May 2024, according to CoinMarketCap, Bitcoin’s dominance is still high at over 54%. Since October 2023, Bitcoin’s market share has remained above 50%.

5 On-Chain Metrics Indicate Bitcoin Bull Run is Far from Over

Source: CoinMarketCap

Bitcoin’s market dominance and its correlation to a period of bull run

  • In mid-2015, after a prolonged bear market, Bitcoin’s dominance increased from around 40% to over 60%, which preceded the 2016-2017 bull run.
  • In 2017, Bitcoin’s dominance rose from 37% in January to 66% by June, before the famous bull run that culminated in Bitcoin reaching nearly $20,000 by December.
  • After the 2018 bear market, Bitcoin’s dominance grew from around 33% in January 2018 to over 70% by September 2019, preceding the 2020-2021 bull run.
  • During the market recovery in early 2019, Bitcoin’s dominance steadily climbed from around 50% in January to over 70% by September.
  • In late 2020, Bitcoin’s dominance surged above 50%, signalling the start of a major bull run that saw Bitcoin’s price rise from around $10,000 in September 2020 to over $60,000 by April 2021.

Bitcoin MVRV Z score under six

The Bitcoin Market Value to Realized Value (MVRV Z) score is a measure that compares Bitcoin’s current market value to its historical average. 

This score tends to peak around six during market cycles. Currently, the MVRV Z score is below three and hasn’t exceeded six since March 2021, according to LookIntoBitcoin.

5 On-Chain Metrics Indicate Bitcoin Bull Run is Far from Over

Source: LookIntoBitcoin

Puell multiple not above three

The Puell Multiple is another indicator used to identify market cycle peaks. It’s calculated by dividing the daily value of Bitcoin mined by the yearly moving average of that value. 

According to Coinglass, the Puell Multiple fell below one after the halving on April 20. Peaks above three are usually seen at cycle tops, and the highest it reached during the 2024 price surge in mid-March was 2.4.

Source: Coinglass

Hodl waves

Charts that analyse the amount of Bitcoin held by different groups, known as hodl waves, also suggest a bullish outlook for Bitcoin. 

Realized cap hodl waves provide insights into how much Bitcoin is held by recent buyers versus long-term holders. A decline in peaks among newer holders indicates that selling pressure might have lessened, potentially paving the way for further gains.

5 On-Chain Metrics Indicate Bitcoin Bull Run is Far from Over

Source: Glassnode

Bitcoin miner revenue per hash

Another bullish indicator is the miner revenue per hash, which tracks how much money Bitcoin miners earn. 

A terahash (TH/s) is a unit of measurement used in cryptocurrency mining to indicate the speed at which a computer can process complex calculations. Specifically, it represents one trillion (1,000,000,000,000) hash calculations per second. 

The higher the terahash rate, the more calculations a miner can perform, increasing the chances of successfully mining a block and earning rewards.

Although this metric tends to decline as network difficulty increases, past spikes to $0.3 per terahash have coincided with market peaks. Currently, it suggests miners are still profiting well.

5 On-Chain Metrics Indicate Bitcoin Bull Run is Far from Over

Source: TheBlock

Signs of a potential market peak

Despite these bullish signals, some metrics suggest the market might be overheating. The Realized Hodl (RHODL) ratio compares the price of recently bought Bitcoin to that of Bitcoin bought one to two years ago. 

If new buyers are paying significantly more than long-term holders, it could indicate a market peak. This ratio signalled a peak in March.

The Cumulative Value-Days Destroyed (CVDD) metric also appears to have peaked. 

CVDD measures the cumulative value of Bitcoin moved from older hands to new hands relative to the market age. A sudden movement of old coins can signal a market peak.

5 On-Chain Metrics Indicate Bitcoin Bull Run is Far from Over

Source: LookIntoBitcoin

What’s next for Bitcoin’s price?

Given the current on-chain indicators, it looks like Bitcoin’s price is set to continue rising. High market dominance, favourable MVRV Z score, Puell Multiple, hodl waves, and miner revenue all suggest a bullish trend. 

Although some metrics hint at a potential market peak, the overall data indicates that Bitcoin’s price is likely to see further gains before any significant downturn.

Bitcoin Price Increase After Halving: Navigating Through Halving And Market Maturation

Bitcoin Price Increase After Halving: Navigating Through Halving And Market Maturation

As Bitcoin goes through its 4th pivotal halving event, the landscape of cryptocurrency has transformed significantly. This new financial territory brings key changes and developments surrounding Bitcoin’s halving, from the unprecedented pre-halving price surges to the enhanced global decentralisation and security of its network

Bitcoin halving has catalysed a surge in crypto adoption

Since the Bitcoin halving event in May 2020, the number of people using cryptocurrencies worldwide has skyrocketed by at least 400%, growing from about 100 million to nearly 580 million users by the end of 2023. 

This dramatic increase in user base is drawn from estimates by the Cambridge Centre for Alternative Finance and Crypto.com. 

Although the rate at which new Bitcoins are generated has slowed down due to the halving process, global interest and adoption of cryptocurrencies have not decreased.

As of early 2024, data suggests that roughly 2.7% of the world’s population owns Bitcoin, amounting to about 219 million individuals. 

This represents a significant rise—approximately 208%—from the 71 million Bitcoin users estimated four years earlier. It’s important to note, however, that these figures are estimates; accurately gauging the exact number of Bitcoin or other cryptocurrency users is challenging. 

Factors like the inability of on-chain transaction analysis to distinguish between active users, long-term holders, and lost coins make precise counts difficult.

Bitcoin Price Increase After Halving: Market Maturation

Source: Crypto.com

Bitcoin’s pre-halving price rally in 2024

The 2024 pre-halving period has shown unprecedented growth in Bitcoin’s price, marking a distinct difference from the previous three halving events. 

Historically, significant price surges in Bitcoin occurred after the halving, with new all-time highs typically forming about a year later. 

For instance, before the 2020 halving, Bitcoin did not surpass its previous peak of $20,000. It only exceeded this mark 10 months post-halving.

However, the scenario has dramatically changed in the current cycle. 

Bitcoin achieved a new all-time high just before the upcoming halving, hitting a record price of $73,600 on March 13, 2024. This kind of price action prior to a halving is unprecedented and has been noted by several analysts.

How Bitcoin miners are better positioned ahead of the 2024 halving

This time around, the unprecedented surge in Bitcoin’s price before the halving may have bolstered the mining industry, granting miners greater control over their operational costs. 

Miners seem to be in better financial standing compared to previous halving cycles, with reduced debt levels and improved cost management, particularly in electricity expenses.

Moreover, the price appreciation preceding the halving is a novel occurrence in Bitcoin’s history, providing an additional boon to miners. 

Since the third halving in May 2020, Bitcoin’s mining energy consumption has notably risen, reaching 99 Terawatt hours (Twh) by April 18, 2024. Despite this increase, there’s a positive trend in the utilisation of renewable energy sources for Bitcoin mining, accounting for 54.5% of the network’s energy consumption as of January 2024, up from 39% in September 2020, according to Bitcoin ESG Forecast and CCAF data, respectively.

The first Bitcoin halving with active spot ETFs in the U.S.

The 2024 Bitcoin halving stands out as the first to occur alongside active spot Bitcoin ETFs (exchange-traded funds) in the United States, marking a significant evolution in Bitcoin investment accessibility. 

These ETFs, which began trading in January 2024, have opened the doors for institutional investors to engage more directly with Bitcoin.

Bloomberg’s ETF analyst, Eric Balchunas, reported that these spot Bitcoin ETFs have achieved “blockbuster success,” indicating a sharp rise in Bitcoin demand. Since their inception, the combined holdings of all ten spot Bitcoin ETFs have increased by at least 220,000 BTC, valued at approximately $14 billion.

Among these, BlackRock’s spot Bitcoin ETF has seen the most substantial inflows, with its holdings skyrocketing more than 10,000% from an initial 2,621 BTC to 273,140 BTC as of April 18. 

As for the broader market dynamics, while the halving is significant, it should be viewed as part of a larger narrative that includes ETFs, quantitative easing, and other factors shaping the market’s future.

Bitcoin’s global decentralisation and enhanced security

Bitcoin’s network has seen substantial improvements in security and decentralisation over the past few years. 

Previously concentrated primarily in mainland China, where nearly 80% of the mining activity took place as of 2020, the Bitcoin mining landscape has now become significantly more global. 

As of February 2024, the United States leads with 40% of the total mining hash rate, followed by China and Russia, which contribute 15% and 12%, respectively, according to Hashlab Mining.

This shift toward geographic decentralisation continues as miners explore regions like Africa and Latin America, which are attracted by lower electricity costs. 

Moreover, the security of the Bitcoin blockchain has dramatically increased; its hash rate has quintupled since the last halving, making the network much more robust against attacks. 

Now, it requires five times more computing power and associated resources such as electricity, infrastructure, and hardware to pose a threat to the network.

Bitcoin’s April 2024 Price Dynamics Amid Economic Shifts and Market Sentiment

Bitcoin’s April 2024 Price Dynamics Amid Economic Shifts and Market Sentiment

Explore the intricate interplay between Bitcoin’s price movements, economic indicators, and trader behaviors in this detailed analysis. 

As the cryptocurrency market approaches a pivotal moment with the upcoming Bitcoin halving, understand the factors influencing price trends, including leverage risks, regulatory impacts, and broader economic conditions. 

Gain insights from expert predictions and strategies to better understand how global financial trends and internal crypto dynamics could shape the future of Bitcoin’s valuation.

Exploring the Link Between Bitcoin, S&P 500, and Economic Indicators

The relationship between Bitcoin‘s price movements, the S&P 500 index, and broader economic indicators is a complex interplay that reflects broader market sentiment and investor behaviour. This connection can be understood through several key dynamics:

Market sentiment and risk appetite

Bitcoin and the S&P 500 often react similarly to changes in global market sentiment.

During times of economic optimism, both markets tend to rise as investors are more willing to take on riskier assets. Conversely, economic downturns or market uncertainties often lead investors to pull back from both equities and cryptocurrencies, which are considered risk assets.

For example, significant drops in the S&P 500 due to economic fears or poor corporate earnings often coincide with declines in Bitcoin’s value as investors seek safer holdings.

Inflation and Monetary Policy

Bitcoin has been characterised by some investors as a “digital gold,” akin to a hedge against inflation.

The cryptocurrency’s limited supply contrasts with fiat currencies that can be printed without limit. When inflation fears rise, as indicated by economic indicators like CPI (Consumer Price Index), or when the Federal Reserve signals tighter monetary policy by raising interest rates, both the S&P 500 and Bitcoin can be affected. Stocks generally react negatively to high inflation and higher rates, which can also increase the appeal of Bitcoin as an alternative investment.

Liquidity and market dynamics

The Federal Reserve’s monetary policy also impacts liquidity in financial markets. Lower interest rates and quantitative easing generally increase market liquidity, making funds available for investment in both stocks and cryptocurrencies, leading to potential price increases in both markets. 

Conversely, quantitative tightening reduces liquidity, which can lead to lower prices. Bitcoin’s reaction to these policies can be swift, mirroring or even exaggerating the movements seen in the S&P 500.

Investor behaviour and technological adoption

The increasing adoption of blockchain technology and the integration of cryptocurrencies into traditional finance (like Bitcoin ETFs and futures) further intertwine the performance of Bitcoin with traditional stock markets. 

As institutional investors enter the crypto space, their investment behaviours — often driven by the same factors influencing their stock market investments — can lead to correlated movements between Bitcoin and the S&P 500.

Geopolitical and economic uncertainties

Global events such as geopolitical tensions, trade wars, or pandemics can influence both the stock market and Bitcoin prices. 

For instance, during times of heightened uncertainty, there may be an increase in Bitcoin buying as a hedge against global instability, even as stock markets might falter due to risk aversion among traditional investors.

Understanding the nuanced relationship between Bitcoin, the S&P 500, and economic indicators not only helps in assessing the risk and opportunities inherent in both markets but also in strategizing investments that can withstand or capitalize on the interconnected volatility of these asset classes.

Trading crypto during this turbulent period

During this turbulent period in the crypto market, traders are expressing a mix of caution and strategic optimism. Here’s a snapshot of the prevailing sentiments and strategies among traders:

  • Caution over leverage. The recent liquidations of leveraged positions have served as a stark reminder of the risks involved. Traders are advising against over-leveraging and are emphasising the importance of risk management to withstand sudden price swings.
  • Market volatility. The unpredictable movements make it essential for traders to stay very active and responsive, adjusting their positions as the market changes.
  • Strategic patience. Experienced traders are advocating for a more cautious approach, suggesting that sitting out the high volatility might be wise. They believe that waiting for clearer signs or more stable conditions could prevent losses and lead to better opportunities in the future.
  • Optimism for post-halving gains. There is a strong sense of optimism regarding the upcoming Bitcoin halving. Some traders, like Andrew Kang of Mechanism Capital, predict that the reduced supply of Bitcoin resulting from the halving will lead to significant price increases, potentially reaching new all-time highs.
  • Diversification. With the current uncertainties, some traders are looking at diversifying their investments beyond just Bitcoin and Ethereum. They are exploring other cryptocurrencies and blockchain projects that might offer better stability or growth potential in the current environment.
  • Economic indicators. Traders are closely monitoring broader economic indicators, especially inflation rates and actions by the Federal Reserve, as these factors are seen as key drivers for both the stock market and cryptocurrency prices. Their strategies often involve adapting quickly to economic news that could affect market sentiment.

Future predictions for Bitcoin’s market dynamics

As we navigate through a period of significant volatility and anticipation in the crypto market, various traders and analysts have shared their expectations for Bitcoin’s future. These insights combine optimism with caution, reflecting the complex factors influencing the market.

Post-halving surge

The upcoming Bitcoin halving is a focal point of discussion. Andrew Kang of Mechanism Capital is notably optimistic, predicting that Bitcoin’s price could ascend to new all-time highs, potentially reaching $80,000 by May. This optimism is grounded in Bitcoin’s historical performance following previous halvings, where reduced supply typically led to price increases due to the heightened scarcity of available coins.

Whale activities and market impact

The activity of Bitcoin whales—large holders capable of influencing market dynamics through substantial transactions—is also a key indicator to watch. Recent data suggest that whales are accumulating Bitcoin, possibly in anticipation of price increases post-halving. This trend could provide upward pressure on prices if it continues, signaling strong demand overcoming the reduced supply.

Economic indicators and external influences

Economic announcements, particularly regarding inflation and Federal Reserve policies, have recently impacted Bitcoin’s price. 

Traders should continue to monitor these indicators as they provide a critical context for Bitcoin’s behaviour in relation to broader financial markets. 

For instance, if inflation remains high, Bitcoin may increasingly be viewed as a hedge, similar to gold, which could boost its price further.

Volatility and trader behaviour

Despite the optimistic projections, seasoned traders like Honeybadger express a more cautious stance, suggesting potential price volatility could lead to unexpected market movements. This sentiment is echoed by others who advise against over-leverage and recommend waiting for more stable market conditions to avoid the risks of sudden price reversals.

Long-term trends

Looking further ahead, the integration of blockchain technology and broader financial acceptance of cryptocurrencies may bolster Bitcoin’s position as a mainstream asset. This could lead to greater stability and less susceptibility to sharp market movements compared to the current landscape.

The 2024 Bitcoin Halving And Its Widespread Effects

The 2024 Bitcoin Halving And Its Widespread Effects

How will the upcoming Bitcoin halving impact miners and the cryptocurrency market? It’s all about energy efficiency strategies, global mining shifts, market reactions, and the potential long-term effects on Bitcoin’s value and mining landscape.

Bitcoin 20224 halving and its impact

The Bitcoin community is on the brink of a major event – the upcoming Bitcoin 2024 halving.

This anticipated event, occurring every four years, is expected to have significant implications for the market and miners, particularly those based in the United States. 

As we approach this pivotal moment, set for April, the mining landscape is bracing for change, with the reward for mining Bitcoin transactions set to decrease from 6.25 BTC to 3.125 BTC.

This reduction in mining rewards will challenge operations globally, but the impact will vary significantly based on regional factors and operational efficiencies. 

In the United States, where recent data from Hashlabs Mining indicates that 40% of Bitcoin mining takes place, the focus has turned towards energy-efficient mining operations. These operations are believed to be less susceptible to the adverse effects of the halving due to their lower operational costs.

The halving is not just a technical adjustment; it serves as a crucial test for the sustainability and profitability of mining activities. 

This situation sets the stage for a broader discussion on the future of Bitcoin mining in the U.S. and globally as miners scramble to adapt to the impending reduction in rewards.

What is the Bitcoin halving?

The Bitcoin halving is a major event. It happens every four years. 

In April 2024, the reward for mining Bitcoin will be cut in half. This means Bitcoin miners will get less Bitcoin for their work.

Why does this matter? 

It affects how much money miners make. 

When rewards drop, some miners might stop mining because it’s too expensive. This is especially true for those who use a lot of energy.

But it’s not all bad. The halving can make Bitcoin more rare. This can increase its value. People are watching to see how this changes Bitcoin’s price.

In the U.S., many miners are preparing. They are using less energy to stay profitable. This is important because the U.S. has a lot of Bitcoin miners.

The halving tests miners. It shows who can adapt and who can’t. This event is big for Bitcoin’s future. It could change how people see and use Bitcoin.

U.S. miners’ strategies for becoming more energy efficient

As the U.S. miners are getting ready for the halving, they focus on using less energy. This can help them stay profitable even when mining rewards are cut.

Energy costs matter a lot. Cheap energy means lower costs and greater profits. This is key for making money after the Bitcoin halving.

Some miners plan ahead. They look for ways to cut energy costs. They have mining sites all over the world. They share their energy costs to stay open about their spending.

The price of Bitcoin is also important. If it stays the same, some U.S. miners might reduce their mining. This is because they will earn less Bitcoin for the same work.

But, if Bitcoin’s price goes up, miners could still do well. Higher prices mean more money for the same amount of Bitcoin.

Navigating post-halving challenges

As the halving approaches, the future of Bitcoin mining hangs in the balance. Miners around the world are bracing for change, with energy efficiency becoming the mantra for survival. Those who have prepared by reducing costs and enhancing efficiency stand the best chance of weathering the storm.

The halving could lead to a shakeout, where only the most efficient miners remain. This is not necessarily bad; it could lead to a more sustainable and robust mining ecosystem. Efficiency gains could offset the reduction in rewards, maintaining the health of the Bitcoin network.

The global hash rate, despite potential short-term dips, is expected to continue its upward trajectory. This reflects confidence in Bitcoin’s long-term value and the mining industry’s resilience. New technologies and mining strategies will likely emerge, driving further innovation in the sector.

The price of Bitcoin remains a wildcard. A significant increase could rejuvenate the mining landscape, compensating for the halved rewards. Conversely, if prices remain stagnant or fall, the industry could face further consolidation.

Anticipating the Bitcoin market post-halving

The Bitcoin halving event sparks widespread speculation about future price movements. 

Historically, halvings have been followed by significant price increases, fueling optimism among investors. As the supply of new Bitcoins decreases, if demand remains the same or increases, the price could rise.

Currently, Bitcoin’s price is experiencing a notable upsurge, partly driven by the anticipation of the halving. 

Investors are keenly observing market trends, with many expecting the price to reach new heights post-halving. This optimism is bolstered by recent rallies and the introduction of Bitcoin ETFs (exchange-traded funds), which have attracted new investors.

However, the market is complex and not immune to downturns. High leverage and speculative trading could lead to volatility and corrections. Analysts advise caution, suggesting that while the outlook is promising, the market may still experience swings.

The post-halving period is a time of uncertainty and opportunity. Market dynamics post-halving will be influenced by a mix of investor sentiment, market liquidity, and broader economic factors. 

As always, investors should conduct thorough research and consider multiple perspectives before making decisions. The halving could be a catalyst for growth, but the path is unlikely to be smooth.

In conclusion, the upcoming Bitcoin halving presents both challenges and opportunities. Miners must adapt to survive, while investors watch closely as this event could herald a new era for Bitcoin’s value and its underlying technology. 

The next few months will be critical in shaping the future of Bitcoin mining and the cryptocurrency market at large.

$64k Bitcoin Transaction For A 9MB Data Inscription

$64k Bitcoin Transaction For A 9MB Data Inscription

In a puzzling move, an unidentified individual has spent approximately $64,000 to record nearly 9 megabytes of encrypted data on the Bitcoin blockchain. Spanning over 332 transactions, with fees varying from $14 to $2,500 in Bitcoin’s smallest unit, satoshis, the purpose behind this enigmatic activity remains shrouded in mystery.

Recently, someone spent around $64,000 (about 1.5 BTC) to add almost 9 megabytes of complex computer data to the Bitcoin network. 

The mystery of the 2024 Bitcoin data inscription

A report from Ord.io, a digital data tracker, revealed that over 1 Bitcoin was used to make 332 separate entries on January 6th. 

These entries contain complex data. But right now, no one knows what this data means. 

Someone even tried to figure it out using ChatGPT, a smart computer program, but they couldn’t solve the mystery.

As you can imagine, there is a lot of curiosity about who actually added this data. 

The Bitcoin address linked to these mysterious additions is listed as “Unnamed” on Ord.io. The data itself is a mix of English, Greek, and mathematical symbols. 

Interestingly, among the 332 entries, two feature a digital image of a pepperoni pizza. 

According to Ord.io, this signifies that the entries include some of the 10,000 Bitcoins once used by early Bitcoin enthusiast Laszlo Hanyecz to buy two Papa John’s pepperoni pizzas on May 22, 2010. 

This puzzling event of inscribing data occurred just a day after a massive 26.9 Bitcoins, valued at $1.17 million, were transferred to the very first Bitcoin wallet, known as the Genesis wallet, on January 5. 

What is Bitcoin blockchain inscription?

Imagine the Bitcoin blockchain as a digital ledger or a record book.

Normally, this ledger keeps track of Bitcoin transactions – who sends and who receives Bitcoins.

An inscription on the Bitcoin blockchain is like writing a note in the margins of this ledger. Instead of recording a transaction, you’re adding extra information.

How is it different from typical transactions?

A standard Bitcoin transaction is like saying, “I give 5 Bitcoins to Alice.”

An inscription adds more: “I give 5 Bitcoins to Alice. P.S. Here’s a recipe for apple pie.” This ‘recipe’ is the extra data you’re inscribing.

This extra data doesn’t affect the transaction’s main purpose (sending Bitcoins), but it permanently records additional information.

Why inscribe data on the blockchain?

  • Permanence. Once something is written on the Bitcoin blockchain, it can’t be changed or deleted. It’s like carving into stone.
  • Visibility. Everyone who can see the ledger can see your inscription. It’s a public display.
  • Proof of existence. Inscribing data can prove that a certain piece of information existed at a certain time. For instance, if you inscribe a unique digital artwork, you’re showing that it existed at the time of the inscription.
  • Security. The blockchain’s secure nature makes it a trustworthy place to store important data.

The process of a Bitcoin blockchain inscription

  • You create a Bitcoin transaction.
  • Along with the transaction details (like sender, receiver, and amount), you include your extra piece of information – your ‘note.’
  • You send this transaction to the blockchain.
  • Miners on the Bitcoin network confirm the transaction and add it to a block.
  • Once added to a block, your inscription is permanent and visible to anyone who looks at the blockchain.

26.917 BTC transaction to Genesis Wallet

On January 5, at 1:52 am Eastern Time, an anonymous Bitcoin user made a notable transaction, sending 26.917 Bitcoins, valued at $1.17 million, to Bitcoin’s first-ever wallet, the genesis wallet (1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa). 

$64k Bitcoin Transaction For A 9MB Data Inscription. 26.917 BTC transaction to Genesis Wallet

Source: Blockchain.com

This wallet is historically significant, as it was set up by Satoshi Nakamoto, the elusive creator of Bitcoin.

The transaction was unique for several reasons. 

Firstly, the amount was transferred from a wallet that had been emptied specifically for this purpose. The transaction fee was $100, which is considerably higher than the average fee. 

Secondly, the funds were moved in a complex manner, involving three wallets initially and then dispersing to 12 others. 

Notably, a large portion of these funds was traced back to a wallet associated with Binance, a major cryptocurrency exchange, as identified by Arkham Intelligence, a blockchain analytics platform.

Coinbase director Conor Grogan commented on the transaction, speculating on two possibilities: either this was an action taken by Nakamoto himself, moving Bitcoins from Binance, or it was someone else making a dramatic gesture by effectively ‘burning’ over $1 million. Grogan also raised the possibility of this being part of an unusual Bitcoin exchange-traded fund marketing campaign.

It’s important to note that there has been no movement of funds from wallets associated with Nakamoto, including the genesis wallet, since Nakamoto’s disappearance in December 2010. 

However, it’s speculated that Nakamoto could still possess the private keys to these wallets and control the funds within.

The genesis wallet initially contained 50 Bitcoins mined by Nakamoto. 

By the end of 2023, on the occasion of Bitcoin’s 14th birthday, the global Bitcoin community had added to this wallet’s balance, bringing it up to 72 Bitcoins through various celebratory contributions. 

26.917 BTC transaction to Genesis Wallet

Source: Blockchain.com

With this latest transaction, the wallet’s balance has now reached 99.68 Bitcoins, which are estimated to be worth about $4.69 million.

Bitcoin ETFs: A Beginner’s Guide to Crypto Exchange-Traded Funds

Bitcoin ETFs: A Beginner’s Guide to Crypto Exchange-Traded Funds

Bitcoin ETFs are the intersection where cryptocurrencies meet the structured universe of traditional investing. 

Bitcoin ETFs, or ‘exchange-traded funds’ that focus on Bitcoin, offer a unique way to participate in the exciting growth potential of cryptocurrencies without diving headfirst into the often complex crypto markets. 

These ‘crypto ETFs’ blend the familiarity of conventional stock trading with the adventurous spirit of digital currencies, providing a gateway for both seasoned investors and curious newcomers. 

As we explore this innovative investment vehicle, you’ll discover how it simplifies the process of adding digital assets to your portfolio, all while maintaining the ease and accessibility of traditional stock market trading. Let’s dive in and unravel the essentials of Bitcoin ETFs.

What are exchange-traded funds (ETFs)?

Imagine you want to invest in the stock market, but instead of picking individual stocks (like shares of Apple or Google), you decide to buy a little bit of lots of different stocks all at once. That’s essentially what an Exchange-Traded Fund (ETF) is.

An ETF is like a basket that contains a mix of various stocks, bonds, or other assets. When you buy a share of an ETF, you’re buying a small piece of all the things inside that basket. This mix can include all sorts of investments – from tech companies to government bonds. The beauty of ETFs is that with just one purchase, you can invest in a whole range of assets, which can reduce the risk compared to buying just one company’s stock.

What makes ETFs special is that they are traded on the stock exchange, just like regular stocks. This means you can buy and sell shares of an ETF throughout the day at different prices, just like you would with stocks of individual companies.

So, in a nutshell, ETFs offer a simple way to diversify your investments, spreading out your risk while still allowing you the flexibility to buy and sell as you would with traditional stocks.

Why is everyone talking about a spot Bitcoin ETFs?

The sudden importance of spot Bitcoin ETFs in the crypto world stems from their potential regulatory approval, a significant step forward in legitimizing Bitcoin as a mainstream investment. 

Unlike previous ETFs tied to Bitcoin futures, spot Bitcoin ETFs would be directly linked to the current price of Bitcoin, offering a more direct and potentially more accurate reflection of Bitcoin’s market value. This direct connection attracts investors looking for a more straightforward way to invest in Bitcoin through traditional financial structures.

The anticipation of these ETFs has been heightened by the involvement of major asset management firms like BlackRock, Fidelity, and VanEck, signalling strong institutional interest. 

The approval of spot Bitcoin ETFs by the SEC would not only increase Bitcoin’s accessibility to a broader range of investors but also potentially provide more stability and liquidity in the crypto market. 

This move is seen as a critical milestone for the cryptocurrency industry, as it represents a significant endorsement from regulatory authorities and could lead to increased adoption and integration of Bitcoin into the traditional financial system.

The benefits of Bitcoin ETFs

Bitcoin ETFs are an exciting option for those interested in the buzz of the cryptocurrency world but looking for something a bit more familiar and potentially less risky. Let’s break down why someone might lean towards a Bitcoin ETF instead of buying Bitcoin directly.

Familiarity and Ease of Trading

Investing in a Bitcoin ETF feels much like investing in any other stock. You don’t need to learn the ins and outs of cryptocurrency exchanges or how to securely store digital coins. It’s as straightforward as trading regular stocks, making it a comfortable option for many traditional investors.

Diversification

Bitcoin ETFs often track not just the price of Bitcoin but can include other cryptocurrencies or related assets. This means you’re not putting all your eggs in one basket (Bitcoin) but spreading your risk across a range of assets. It’s like choosing a mixed fruit basket over just apples. This diversification can be a safer bet, especially in the volatile world of cryptocurrencies.

Regulatory oversight

ETFs are subject to regulatory oversight, which means there’s an added layer of security and transparency. When you buy Bitcoin directly, you’re stepping into a largely unregulated space, which can be riskier. With a Bitcoin ETF, you have the peace of mind that comes with regulated financial products.

Lower entry point

Investing in Bitcoin directly can be expensive, as you often have to buy whole units of the cryptocurrency. But with a Bitcoin ETF, you can invest with much smaller amounts, making it more accessible for the average investor.

No digital wallets are needed

Holding Bitcoin directly means dealing with digital wallets and the security concerns that come with them. 

With a Bitcoin ETF, you don’t have to worry about digital wallet security or remembering complex passwords. Your investment is as safe as any other stock in your portfolio.

Top Bitcoin ETFs to invest in

When it comes to dipping your toes into the world of Bitcoin through ETFs, there are several key players you might want to consider. Here’s a list of some of the top Bitcoin ETFs, each offering a unique crypto-investing approach.

ProShares Bitcoin ETF

ProShares is a big name in the ETF world, and their Bitcoin ETF is a popular choice. It’s known for its reliability and is a go-to option for many investors looking to get involved in Bitcoin through a more traditional investment vehicle.

Grayscale Bitcoin Trust

While not a traditional ETF, Grayscale’s Bitcoin Trust is another major player. It offers exposure to Bitcoin’s price movements without the need to directly buy and store the cryptocurrency.

Valkyrie Bitcoin Strategy ETF

This ETF is relatively new but has quickly gained attention. It focuses on Bitcoin futures contracts, offering a different angle on Bitcoin investment.

VanEck Bitcoin Trust

VanEck is known for its innovative investment products, and its Bitcoin Trust is no exception. It aims to reflect the performance of Bitcoin, offering investors direct exposure to the cryptocurrency’s price changes.

Bitwise 10 Crypto Index Fund

For those who want broader exposure, the Bitwise 10 Crypto Index Fund covers the top 10 cryptocurrencies by market cap, not just Bitcoin. It’s a good option if you’re looking to diversify within the crypto space.

Each of these options has its unique features and approaches to Bitcoin investment. Whether you’re looking for something straightforward like the ProShares Bitcoin ETF or something more diverse like the Bitwise 10 Crypto Index Fund, there’s likely an ETF that fits your investment style and risk tolerance.

Remember, investing in Bitcoin, whether directly or through ETFs, carries risk. It’s always wise to do your own research and consider seeking advice from a financial advisor to find the best fit for your investment goals.

How to trade Bitcoin ETFs

Trading Bitcoin ETFs is like playing a video game where you need to know a few key moves. Let’s make sense of terms like ‘bitcoin tracking’ and ‘bitcoin exchange-traded note,’ and also explain how different platforms work for trading these crypto ETFs.

Bitcoin Tracking

 Imagine Bitcoin’s price is like a rollercoaster at an amusement park. ‘Bitcoin tracking’ is like having a model of that rollercoaster in your backyard. The ETF follows the ups and downs of Bitcoin’s price, just like your model coaster follows the same path as the real one.

Understanding Bitcoin Exchange Traded Notes (ETNs)

Think of ETNs as a promise note from your school friend. They promise to pay you back your lunch money with a little extra. In the financial world, an ETN is a promise by a company to pay you based on Bitcoin’s price performance. 

But remember, if your friend moves away, you might not get your money back. Similarly, if the company behind the ETN has problems, your investment could be at risk.

Trading platforms for Bitcoin ETFs

Now, let’s talk about where you can trade these ETFs. You’ve got two main options: brokerage platforms and crypto exchange platforms.

  • Brokerage platforms: These are like your regular supermarkets where you can buy all sorts of things (stocks, bonds, ETFs). Trading Bitcoin ETFs here is like buying cereal from a supermarket. You use the same cart (platform) you use for other shopping. These platforms are user-friendly and regulated, offering a familiar environment for regular stock traders.
  • Crypto Exchange. These are specialized stores, like a shop that only sells video games. They mainly deal with cryptocurrencies. While you can’t directly buy Bitcoin ETFs here, these platforms are where the action happens for Bitcoin and other cryptocurrencies. They offer more crypto-specific features and can be a bit more complex to use.

The main difference between these platforms is what you can buy on them. Brokerage platforms offer a variety of investment products, including Bitcoin ETFs, while crypto exchanges focus on cryptocurrencies. 

Also, brokerages are often seen as more beginner-friendly and regulated, while crypto exchanges offer more in-depth features for crypto trading.

Crypto vs crypto ETFs: comparing investment options

Let’s talk about the difference between buying cryptocurrencies directly and investing in crypto ETFs, and how these stack up against other investment options like mutual funds.

1. Direct crypto investment

Imagine buying cryptocurrencies like Bitcoin or Ethereum directly is like owning a specific type of exotic fruit. You have full control over it; you can eat it, save it, or sell it. However, you need to know where to buy it, how to store it safely and be ready for its price to jump up and down wildly.

2. Crypto ETFs

Now, investing in a crypto ETF is like buying a fruit basket that includes a bit of this exotic fruit along with other types. You don’t own the fruit directly, but you own a share of the basket. It’s simpler and safer in some ways because you’re not responsible for taking care of the individual fruits, and you also get a variety, which can balance out the risk.

3. Crypto ETFs vs traditional mutual funds

Traditional mutual funds are like a pre-packed lunch – you know what you’re getting, and it’s usually a well-balanced meal.

Mutual funds pool money from many investors to invest in stocks, bonds, or other assets and are managed by professionals. They’re not as volatile as cryptocurrencies but may offer lower returns.

4. Platforms for trading

The difference in platforms is like shopping at different types of stores. 

Crypto exchanges are like speciality stores where you buy and manage individual types of fruit (cryptocurrencies). Some of the most popular centralized exchanges (CEXs) are Binance, KuCoin, WhiteBit, Kraken and Coinbase.

In contrast, brokerage platforms where you trade ETFs are like big supermarkets where you can buy fruit baskets (ETFs), along with other groceries (stocks, bonds).

As you see, there is more than one way to invest in crypto. Investing directly in cryptocurrencies is for those who want full control and are comfortable with high risk and volatility. 

Crypto ETFs, on the other hand, offer a simpler, more diversified way to get into the crypto market, much like traditional mutual funds, but with a focus on digital assets. 

And where you shop (trade) depends on whether you want to manage individual assets or prefer a more diverse, managed portfolio.