⏳ Bitcoin Halving: Countdown is accelerating for April 2024!
Welcome to the Daily Tribune on Tuesday, February 27, 2024 ☕️
Hello Cointribe! 🚀
Today is Tuesday, February 27, 2024, and like every day from Tuesday to Saturday, we summarize the news of the last 24 hours that you shouldn't miss!
But first…
✍️ Cartoon of the day:
A quick look at the market…
🌡️ Temperature:
Sunny ☀️
24-hour crypto summary ! ⏱️
🚀 Crypto investments skyrocket: $5 billion crossed!
Last week marked a significant turning point in the world of cryptocurrency investment, with an influx of $598 million in crypto investment products, according to the latest CoinShares Research report. This fourth consecutive week of net inflows brings the total investment since the beginning of the year to over $5.7 billion. Despite the inherent volatility in the cryptocurrency market, where the price of Bitcoin can fluctuate by plus or minus 10% in a few days, institutional investors continue to inject significant funds, attracted by the high long-term return potential.
The United States remains the dominant market for these investment products, despite Grayscale's recent difficulties, which saw net outflows. Bitcoin takes the lion's share with $570 million in inflows last week, consolidating its position as the leader and "digital gold" among institutional investors. Ethereum follows with $17 million in net inflows, benefiting from anticipation around its transition to a more efficient validation mechanism. On the other hand, the Solana network experienced net outflows of $3 million, highlighting the risks associated with emerging blockchains.
While institutional investors seem to ignore the volatility, this influx could indicate either a turning point towards widespread adoption of cryptocurrencies as a full-fledged asset class, or the formation of a speculative bubble fueled by the search for high returns in a low-interest rate environment.
⏳ Bitcoin: Halving is coming!
The Bitcoin network is preparing for its fourth halving in less than 8 weeks, an event that will halve the miners' reward and, consequently, the supply of new bitcoins. NiceHash, one of the leading mining platforms, estimates that this crucial event will occur on April 15, 2024. Historically, halvings have had a significant impact on the price of Bitcoin by accentuating its scarcity. The Stock-to-Flow model suggests that this reduction could propel the price of Bitcoin to $450,000, with a first milestone of $100,000 by September 2024.
This halving could also mark a new era for the Bitcoin mining ecosystem, as it could test the profitability of miners. Only the most efficient companies with low energy costs are expected to survive in this increasingly competitive environment. At the same time, the emergence of Bitcoin Spot ETFs and the growing adoption of digital assets by institutional investors and the general public could have a significant impact on the dynamics of BTC price.
The anticipated Bitcoin halving scheduled for April 2024 has significant implications for the Bitcoin economy by reducing the supply of new bitcoins, which could theoretically lead to a price increase if demand remains constant or increases. Historically, halvings have preceded major bullish cycles, but the impact on the mining market and the profitability of miners remains a major concern. This reduction in block reward could accelerate the consolidation of the mining industry, favoring more efficient large-scale operations.
🚀 Ethereum reaches new highs: Beyond $3,000
Ether (ETH), the native cryptocurrency of Ethereum, is currently experiencing a period of strong growth, reaching price levels not seen since 2021. This bullish momentum was particularly marked by crossing the $3,000 mark, an achievement supported by recent developments around Uniswap, a decentralized trading protocol based on Ethereum.
The predictions of analyst Mikybull Crypto, who anticipated a sustained rise in ETH with a target of $3,000 by March, seem to be confirmed earlier than expected. Currently, ETH is trading around $3,175, reaching an unprecedented peak in 22 months, although this is still below its all-time high of $4,721.07. This appreciation of the value of Ethereum did not happen in a vacuum but coincides with a notable increase in the value of UNI, the native cryptocurrency of Uniswap, which recorded a 40% increase in one day and a 42.40% increase over a week, propelling its price from $7 to $12.7 before stabilizing around $10.5.
The recent rise of Ethereum beyond $3,000, partly driven by developments around Uniswap, highlights the increasing interconnection between decentralized finance (DeFi) ecosystems and the value of underlying cryptocurrencies. This dynamic underscores the importance of DeFi applications in valuing the blockchains on which they are built and how innovations in this sector can lead to significant reassessments of native assets. Ethereum's rise also reflects market anticipation of future institutional adoption, particularly through Ethereum Spot ETFs, and confirms Ethereum's position as a leader in the DeFi and blockchain space for applications.
Cryptocurrency of the day: Pyth Network (PYTH)
Pyth Network is a remarkable blockchain initiative that stands out for its innovative approach in the field of data oracles. By focusing on providing highly specialized and real-time market data, Pyth aims to bridge the gap between traditional financial markets and decentralized markets. Its value proposition lies in its ability to aggregate secure and accurate financial data, which is essential for decentralized finance (DeFi) applications, market forecasts, and other blockchain use cases requiring reliable data.
The native cryptocurrency of the network, PYTH, plays a central role in the ecosystem by facilitating governance, network security, and participation in consensus mechanisms. Although specific details about the distribution of PYTH are not explicitly mentioned, holders of this cryptocurrency generally have voting rights in network governance decisions, economic incentives for providing and verifying data, and potentially sharing in the revenue generated by the network. PYTH can be used for staking to secure the network, participate in governance, and access premium services within the Pyth ecosystem.
Recent Performances
Current price: 0.7819103113571888 USD (conversion to EUR necessary)
Percentage increase/decrease: 39.87% (1-day increase)
Market capitalization: 1,186,603,019.64 USD (conversion to EUR necessary)
Rank on CoinMarketCap: 72
Crypto analysis of the day: Bitcoin (BTC)
After a period of stabilization between $50,000 and $52,000, Bitcoin gained momentum to reach a new high at $57,250, surpassing the $53,000 resistance, which could now serve as support. This progress is just below the 78.6% Fibonacci retracement level, a critical threshold that could act as future resistance. This dynamic shows us a Bitcoin in full volatility, moving away from its 50-day moving average, and highlights the importance of paying attention to market signals.
In the derivatives space, observing BTC/USD liquidations reveals major areas of interest for investors, particularly around $52,000 and $53,000. These levels, which have already sparked renewed buyer interest, could be tested again, highlighting the importance of these thresholds in investors' strategy. Bitcoin's volatility could intensify, especially if the market approaches these areas again, making risk management even more crucial for those navigating these turbulent waters.
In conclusion, Bitcoin once again offers us a lesson on the unpredictable nature of financial markets. If the price manages to stay above $54,500, we could see a new surge to unexplored highs. However, a failure to maintain this level could signal strengthened buyer interest around $53,000, or even a correction towards $52,000. In each scenario, closely monitoring market reactions to key levels is paramount.
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