Dispatch #186: Bitcoin’s Crown (Trick)

In this patch of your weekly Dispatch:

• VanEck’s Prophecy 🧙

• Vitalik’s Idea 💡

• The Rise of the Pegged 📌

The Big Idea

Bitcoin’s Whys and Hows in 2024

It’s funny how Bitcoin excites us with its turbulent moves recently. Only a few weeks ago, the whole crypto world swore Bitcoin was going to the moon. Yet a few pullbacks saw investors not quite there, as BTC settled around $66,000 this week. 

To the seasoned Nexo users, this should all be too familiar – we’ve been through all the highs and lows since 2018. Yet, those new to crypto and Nexo could argue they've been left without the six-figure Bitcoin they signed up for. This week’s Big Idea is for all who simply must know where BTC is going. You are not alone as crypto media has been seeking clarity on Bitcoin price this week: 

Headwinds: Bitcoin’s rush towards its latest all-time high came with an intense Q1 2024 performance – up 50%. But why did it stop there? 

• Taking Profit: Back in Dispatch #182 we talked about Bitcoin’s then-new all-time high, and all the 99% of BTC addresses in profit. That profit has been rightfully taken, reports Cointelegraph after talking to Nexo. Investing.com also noted that currently bears may be steering market dynamics after all-time high momentum decreased.

Tailwinds: Bitcoin bulls have two key advantages in their arsenal should those bears remain active.

• ETFs & The Halving: It may sound like a misunderstood indie rock boy band, but those are the two factors that will arguably work for BTC. BlackRock CEO Larry Fink reckons his company’s ETF is the most successful in the entire history of exchange-traded products – it amassed over 250,000 BTC in less than 3 months. When it comes to the Bitcoin Halving, Dispatch editors will not make bombastic price projections. But they are there – a $435,000 estimate by 2028… 

This brings up the question, do we need an optimistic projection or do some of us simply want that extra thrill of knowing it all about Bitcoin in 2024? It’s a perspective for older Nexonians to pass on to the new generation of cryptocurrency enthusiasts, we think.

The Latest In…

Ether’s Layers of (Future) Value?

If you actually like bombastic price predictions, (we all do as long as it’s not us getting them wrong) you need to hear this. Investment company VanEck predicts Ethereum layer 2 (L2) networks could surpass $1T in value by 2030, Arbitrum leading with over $18B locked. Analysts project Ethereum to capture 60% of the market share, thanks to several advantages – transaction pricing, developer and user experience, trust, and ecosystem size. Sounds too good to be true? 

The Latest In…

Vitalik Buterin – The CEO of Meme Coins?

Let’s talk meme coins briefly. To some, they create more questions than answers. So it’s convenient when one of the most profound figures in crypto shares a productive insight on the wildest of crypto coins. Ethereum founder Vitalik Buterin criticized the path taken by meme coins – he thinks they’ve departed from original crypto ideals, even if holding their charm. What’s Vitalik's idea? A nuanced approach, proposing meme coins be redirected towards positive causes and genuine entertainment, so they combine gaming with wealth distribution – it’s how VItalik sees meme coins will drive social good.

The Latest In…

Stability in Liquidity 

That bull run the entire sector talks about has helped stablecoins rise with a surge of nearly $20B since the start of 2024 to reach over $150B in supply. Tether's USDT leads with a market cap now surpassing $100B, while Circle's USDC has seen a resurgence, reaching $32B in supply. There’s a chart below for illustration purposes, along with developments around the crypto world’s most used stablecoins:

• Circle's USDC dominates Solana, commanding 73% of stablecoin assets, driven by the successful launch of Circle's Cross-Chain Transfer Protocol (CCTP) on the network.
• Tether’s USDT has accumulated nearly 8,889 BTC in the first quarter of the year, indicating a strategic move to diversify profits into Bitcoin.

The Week’s Most Interesting Data Story

The Pure Growth in 2024

The surge in stablecoin supply within the crypto sector is crucial as it indicates heightened liquidity and increased capital infusion into digital assets. The chart below displays the last bull run in 2021, followed by the crypto winter in 2022 (and 2023) – it’s these cycles that best demonstrate growth in adoption.  

Hot Topics

What the Community Is Discussing

There is some way to go, Nexonians – help us by joining!

It is getting closer by the day…

An April fool’s we fell for – well-played, Bloomberg.

What to Watch for Next Week:

• The days before the Halving

• What’s new in crypto trading

• Ethereum ETFs – the pros and cons