Bitcoin costs twice as much to produce now
Weekly crypto recap №2
It is finally here people! THE HALVING
Ok ok, I missed it. It happens to everyone, let’s keep going and see what happened on this glorious day!
So, I was telling a friend “The Bitcoin halving is nothing more than a reminder, a reminder that this asset has a limited supply, a reminder that it’s working +12 years later, a reminder that we are on the right track.”
The halving is important, if this event is priced in or not, if it’s going to go up, down, sideways, or in f$%cking circles (quoting McConaughey in The Wolf of Wall Street), all of that doesn’t matter, all of that is just noise.
We should focus on the important.
The important part of the halving is that it happened. After the 200,000 block was mined the rewards were cut in half (from 6.25 to 3.125 BTC) which automatically doubled the cost of production. As this will keep happening every four years, it confirms Bitcoin's limited supply.
21 Million! Remember this number. We won’t have more than 21 Million Bitcoins. And this day confirms and reminds us of that.
Two things you need to understand before rushing to buy:
Few are selling
- Bitcoin on exchanges is at a 5-year low
- There are more long-term holders & whales than ever
- 45% of the Bitcoin supply hasn’t moved in 3+ years — an all-time high
Demand is through the roof
This year, 98,512 Bitcoin has been mined, but check this out:
- ETFs bought over 218,500 BTC
- MicroStrategy grabbed 25,100 BTC
- Tether grabbed 17,700 BTC
Together, these three alone bagged 261,300 BTC — 2.6 times the minted amount this year.
And that’s not even counting the haul from retail, other big players, or Bitcoin-loving governments like El Salvador.
Bottomline: Demand is going up
Supply is going down
Not enough? well, let’s check the news on this great Halving weekend:
What the hell happened this week with Crypto?
Bitcoin only!
- Runes might bring a boom: Excitement surrounds the upcoming debut of the “Runes” protocol on the Halving block, potentially boosting Bitcoin ecosystem fees.
- Epic mining: The Halving block will include an “Epic Sat,” a small fragment of BTC Ordinals, which could be valuable for collectors.
Altcoins:
- From the creator of Chat GPT: Sam Altman’s Worldcoin project plans to use Optimism’s OP Stack to build a Layer-2 network called “World Chain.” The project aims to leverage biometrics-based “proof of personhood” for fair blockspace distribution. (scanning your eye!!!)
- The Solana team released a patch (v1.17.31) to address network throughput bottlenecks caused by rampant spam transactions (Solana had over 75% of failed transactions last week)
- Tokenization remains a major focus for institutions, but underlying Layer-1 networks face growing pains and need more technical improvements before capturing meaningful on-chain liquidity.
Let’s not forget the importance of macroeconomics:
Monetary Policy
- Rate cuts? maybe not: Hopes for near-term interest rate cuts have been dashed as Fed Chairman Powell reaffirms his “higher for longer” stance on Tuesday.
- Inflation is sticky: Powell highlights the strength of the labor market but notes the lack of progress toward the Fed’s 2% inflation target.
- Regulating crypto dollars: U.S. Senators Gillibrand and Lummis introduced the Lummis-Gillibrand Payment Stablecoin Act, aiming to regulate stablecoins with anti-money laundering measures and 1:1 asset backing, effectively banning “algorithmic” stablecoins.
- Come on, again? Senator Warren calls for extensive KYC/AML enhancements across the crypto industry and warns of the potential for financial instability due to enhanced crypto attractiveness.
Weekly Stories Roundup
1. How is Bitcoin destroying Altcoins before the Halving?
Bitcoin’s recent price swings are causing ripples across the crypto landscape, especially for Altcoins like MATIC, APE, DOT, and XRP, which are witnessing notable declines. This underscores the importance of patience in navigating the volatile crypto market. Dive deeper into this story to understand the nuances of these market movements.
2. Bitcoin and Gold are back in the ring
The comparison between Bitcoin and gold as store-of-value assets intensifies, with Bitcoin showcasing remarkable growth compared to gold’s more modest trajectory over the past decade. Explore this story to grasp the implications of Bitcoin’s emergence as a digital alternative to traditional safe-haven assets.
3. Gold predicted the Iran attack, is Oil predicting a recession?
Surging gold prices amidst geopolitical tensions and rising oil prices amid conflict predictions raise questions about their predictive power in global events. Discover more about how these assets serve as indicators of economic uncertainty and potential downturns in this intriguing story.
4. Inflows in the ETFs have stopped
Bitcoin ETFs experiencing consecutive outflows suggest a shift in investor sentiment, potentially impacting Bitcoin’s market dynamics. Delve into this story to uncover insights into the evolving landscape of crypto investment and the role of ETFs in driving market behavior.
Portfolio tracker
Every week, we’ll check the performance of the portfolio. We have a bit of everything as we trade Forex, commodities, Indexes, and crypto. We also diversify into different brokers but here is the main one:
https://www.etoro.com/people/johanam314/portfolio
Etoro:
New trades: Cocoa commodity short, stop loss triggered.
Closed trades: Closed half of our positions shorting the SPX and NSDQ with a profit.
Airdrops
I’ll be adding the platforms where we farm for Airdrops here.
- We just found a new opportunity. BounceBit, promoted by Binance, and a great option to stake your Bitcoin of just FDUSD if you don’t want to risk too much right now (FDUSD is the binance stable coin).
You need a code to start in this early stage so here they are.
https://bouncebit.io?code=GNQ4O
https://bouncebit.io?code=FV753
https://bouncebit.io?code=78UXH
https://bouncebit.io?code=G104H
https://bouncebit.io?code=CTF7B
https://bouncebit.io?code=TBXCJ
That’s all for today. Have a great week.
