Dispatch #164: 15 Years Later: BTC is Alive and Well

Nov 03, 2023•3 min read

In this patch of your weekly Dispatch:

  • Ether catches up 🏃
  • DeFi gets a TVL boost ⚡
  • Tether’s USD stash 💵

The Big Idea

So Far, So Good

We might’ve been obsessed with Bitcoin lately on Dispatch, but that’s only because the world’s premier crypto has been the pulse of the entire ecosystem. And it had its 15th anniversary too earlier in the week. Fittingly, the event was marked by a price rally, the whole sector energized on the back of spot Bitcoin ETF hopes (and hypes) running high.

And with so much buzz surrounding TradFi’s recognition of Bitcoin, some pointed out the irony that Bitcoin is under threat from the institutions it once stood to eliminate. We’ll take the liberty to bring up another angle in Bitcoin’s defense, albeit more fundamental – TradFi may indeed be muscling in on Bitcoin, but that hardly undermines what it stands for. That simply provides more credibility to Satoshi’s creation as an asset.So where does Bitcoin stand on its 15th birthday? In 2023 alone, BTC has doubled to around $35,000. Trading volumes have livened up, while on-chain metrics show confidence towards the asset – the smallest of investors continue to hold and accumulate, while large holders move the asset off exchanges, signaling long-term commitment.

Those who previously dismissed Bitcoin are beginning to acknowledge its potential, as leading BTC indicators point to a “raging bull market ahead.”Bitcoin and TradFi’s merge will undoubtedly elevate finance and asset management. Questions such as “how will that trickle down to the wider public?” and “will BTC be preferred for its settlement layer or value storage qualities?” dеtract from the bigger picture worth celebrating. 15 years later the peer-to-peer, electronic cash payment system is alive and well.

The Latest In…

К33 Research: No Bear Traps for Ether

Ether is now catching up with Bitcoin, as its futures premiums on the CME match Bitcoin's. Bearish sentiment about ETH is decreasing and traders are less likely to hedge Bitcoin with Ether. This shift could strengthen the ETHBTC ratio, according to K33 Research. Derivatives markets show optimism, reflecting strong institutional demand and a bullish stance after Bitcoin's recent rally. Offshore perpetual markets have shifted from bearish to neutral, reducing risk, according to K33.

The Latest In…

DeFi Wakes up Post-Crypto Winter

The DeFi market is displaying incredible momentum, reaching an impressive three-month high of $42B in total-value locked (TVL).

  • The extraordinary resurgence can be attributed to two potent factors: the increase in asset values and a torrent of new investments in staking and lending products.
  • DeFi transactional volumes have surged to levels reminiscent of March this year with a staggering $4.4B coursing through the space on a single day, shows data from DefiLlama.

While the DeFi sector remains watchful for risks, the overall perspective for the ecosystem shows growth and resilience.

The Latest In…

Cash Is King at Tether

Affirming its vital role, Tether shines with an unprecedented 85.7% of reserves in cash, mainly U.S. T-Bills, boasting a staggering $72.6B total. Tether holds $1.7B in Bitcoin and $3.1B in gold, with an additional $3.2B set aside in reserves. This solid backing fuels its large market presence, demonstrated by the $83.2B worth of USDT circulating in the market. The latter reigns supreme, commanding 68.4% of the stablecoin market at a jaw-dropping $91.1B, according to The Block.

The Week’s Most Interesting Data Story

History in the Making?

Bitcoin whales have been moving coins off exchanges aggressively recently. With that, the number of transactions involving at least $100,000 worth of BTC reached a 2023 high of 23,400. This whale and institutional activity coincides with Bitcoin's price rise to $35,000.

What the Community Is Discussing

Shouldn’t we all?

He’s making it look easy now.

That’s coming from a Wall Street guy…

What to Watch for Next Week:

  • Where is Ether’s rally?
  • Are CBDCs coming to crypto?
  • Can Bitcoin meet L2 needs?