Bitcoin (BTC) Will Become “The Best Savings Tool” After the Halving

Audy Castañeda
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Bitcoin (BTC) Will Become “The Best Savings Tool” After the Halving

Bitcoin is posited as a superior savings tool due to its immutable scarcity and resistance to asset devaluation. Following the halving, lower Bitcoin supply inflation is expected to cause significant price appreciation, based on historical trends.

Today, traditional assets are continually degraded due to overproduction and inflation. Bitcoin emerges as a beacon of stability for its immutable scarcity and superior monetary properties.

As the next Bitcoin halving approaches, experts and market analysts highlight BTC as the definitive tool for long-term savings.

Bitcoin: The Ultimate Savings Tool

According to a new report, Bitcoin’s unique attributes put it ahead of traditional savings instruments. Joe Burnett, a researcher at Unchained, explained that the upcoming Bitcoin halving, which will reduce the block reward from 6.25 BTC to 3.125 BTC, will consolidate Bitcoin’s role as the main means of savings.

Burnett described the modern economic environment as an “innovation trap.” In this case, rapid technological advances and market competition lead to an oversupply of goods and services, ultimately causing asset values ​​to plummet.

He argued that in such a scenario, storing significant wealth outside of Bitcoin will be “increasingly difficult” due to the debasement of traditional assets. Burnett stated:

“Bitcoin may be the asset class that increasingly captures a significant share of total global wealth, all at a time when global wealth is increasing rapidly due to the relentless acceleration of innovation. In a world of abundance, hyper productivity and intensely competitive markets, storing significant wealth outside of Bitcoin will become increasingly difficult.”

The researcher also highlighted that traditional assets, including fiat currencies, stocks and real estate, are susceptible to value erosion over time. For example, the US dollar has depreciated significantly, 92.8% in the last five years when compared to basic consumer goods.

More about Bitcoin Halving

This trend is reflected in other asset classes, with the 20-year Treasury bond falling more than 94.8% in the same period. Not even precious metals like gold and silver are immune.

Despite their historical reputation as stable stores of value, the increased efficiency of extraction and production technologies has led to an increase in supply which, in turn, decreases their value.

These findings underscore the declining returns of traditional investments and highlight the growing relevance of Bitcoin. Burnett argued that Bitcoin’s “immutable absolute scarcity” makes it a unique savings tool, especially in a hyper-competitive, innovation-driven economy.

Effects of Halving on Bitcoin (BTC)

As the halving approaches, reducing Bitcoin supply inflation by 50%, Burnett noted that this will decrease selling pressure and potentially lead to significant price appreciation.

Similarly, Matthew Howells-Barby, VP of Growth at Kraken, noted that the Bitcoin halving has historically catalyzed substantial price increases. He further explained that the influx of spot Bitcoin exchange-traded funds (ETFs) has likely accelerated BTC appreciation more than anticipated. Therefore, it is setting the stage for another post-halving bull cycle.

Bitcoin Price Forecasts after Halving

Price predictions place Bitcoin between $100,000 and $120,000 in the current bullish rally. Even the most optimistic long-term forecasts from analysts like Cathie Wood predict that BTC could reach $1.48 million by 2030.

The argument for Bitcoin’s superiority lies in its performance and its foundational technology, as it ensures that no more Bitcoin can be created beyond its limit of 21 million.

This aspect of Bitcoin is particularly pertinent as the halving approaches, highlighting its resilience against inflation and its ability to hedge against economic uncertainty.

By Audy Castaneda

Halving Pools Burn: What to Expect in Bitcoin, Crash or New Highs?

Leonardo Perez
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Halving Pools Burn: What to Expect in Bitcoin, Crash or New Highs?

“Traditionally, this phase of the Bitcoin market cycle has been very positive for investors. The future is unpredictable, but if we look at certain events during this halving we can find positive indicators about the way forward,” says Christopher Gannatti, head of analysis at WisdomTree.

The fourth halving in Bitcoin history is near. According to Christopher Gannatti, “It is written in the code that the block reward paid to bitcoin miners will go from 6.25 bitcoins to approximately 3.13 bitcoins once the blockchain reaches 840,000 blocks.

“We’ve seen these events before: rewards started at 50, dropped to 25, then 12.5, then 6.25. The process repeats until around 2040, at which point the block reward will approach zero. , and the 21 million bitcoins that will be issued in total will be in circulation. Currently, approximately 19.7 million of these maximum 21 million are in circulation,” adds this expert.

As detailed by Gannatti by means of a chart analysis, if the Bitcoin price is scaled on the halving day to 1.0, during the subsequent period of approximately 2.5 years there was a greater revaluation of the price in the three cases. In each of the historical halvings, which represent a period of the Bitcoin cycle, prices reached higher highs and higher lows.

“In this case, we can think of Bitcoin from a supply and demand point of view. If demand exceeds supply, the price should rise. The halving indicates that there is less supply of new bitcoins in the world, so if demand remains the same, the balance between supply and demand immediately tips in favor of demand exceeding supply,” says Gannatti.

US Bitcoin ETFs: A New Source of Demand

One of the most valued aspects of Bitcoin is the certainty of supply based on the protocol code over time. It is known that in 2040 there will be 21 million bitcoins and that nothing can happen to change this. The mintage of new coins is also known to halve approximately every four years.

Having just over two months of travel, the history of supply/demand in Bitcoin can be evaluated and some influence of ETFs can clearly be seen. Thus, the following can be observed:

More purchases than sales. A hypothesis advanced before the launch of ETFs considered that more types of investors (those who cannot create their own crypto portfolios, for example) would be able to access the exposure. The daily net flow of BTC into ETFs is absolutely skewed towards the positive end of the spectrum. It should be noted that there are still many investors working in companies where internal supervision has not yet issued general authorizations to widely use these products.

Purchase of ETFs exceeding the issuance of bitcoins. The purchase of bitcoins by ETFs has exceeded the creation of new bitcoins during this specific period by approximately 130,000 units. The space is transparent: we can see the purchase of ETFs, the portfolios and how much time has passed since individual units were moved.

Active Bitcoin Offer

“Right now, it appears that demand for ETFs is high and that wallets are holding onto their bitcoin for longer. However, we also know that the halving is approaching, which will reduce new issuance. Each of these points leads to tighter supply and a potential increase in demand thanks to the ease of access introduced with the launch of bitcoin ETFs. If the wave of global adoption continues, everything points to another halving cycle with a strong. performance,” concludes Gannatti.

By Leonardo Perez

Bitcoin Price Falls as Halving Approaches: Analysts See Cyclical Pattern

Audy Castañeda
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Bitcoin Price Falls as Halving Approaches: Analysts See Cyclical Pattern

The price of Bitcoin (BTC) is falling, causing major trader liquidations. This decline coincides with the next halving event. Analysts suggest that volatility may be a recurring trend prior to the halving.

Bitcoin (BTC) has seen a notable decline today, following the previous day’s promising rally. Most recently, it was trading at $63,118, which implies a 3.9% fall in the last 24 hours.

This sudden decline has taken many investors and traders by surprise. The cryptocurrency market is closely monitoring the evolution of the situation.

Is Bitcoin’s Recent Crash a Pre-Halving Shakeup?

The volatility has caused significant liquidations by traders. In the last day alone, market volatility has led to the liquidation of positions of more than 96,000 traders, for a total of $276.17 million.

This total includes $202.35 million of long positions and $73.82 million of short positions, according to data from CoinGlass.

Additionally, the Bitcoin Fear and Greed Index has declined, going from a “Greed” level of 74 to 65. This recent fluctuation aligns with a broader market correction following last weekend’s geopolitically driven declines.

It is worth highlighting the risks of a war escalation in the Middle East, while it catalyzed a sharp decline in global markets. Cryptocurrencies were no exception.

The price of Bitcoin fell approximately 5% to $65,771. For its part, the second largest cryptocurrency on the market, Ethereum, plummeted to $3,193 after accumulating a drop of 8%.

However, news of the Bitcoin and Ethereum ETF approval in Hong Kong revived the market, briefly pushing Bitcoin above $66,000.

Multimillion-Dollar Liquidations: Analysts’ Opinion

The recent geopolitical movement has caused large liquidations in the cryptocurrency market. Recently, more than 600 million dollars were liquidated.

Various personalities have taken to X (formerly Twitter) to share their opinions and perspectives on the current movement of Bitcoin and cryptocurrencies. First of all, artmichel.eth points out that, for those people who wanted to buy Bitcoin, the time has come.

On the other hand, Javierbitcoin highlighted the importance and inherent quality of Bitcoin as a safe haven asset, especially in times of uncertainty. Finally, the renowned analyst Michaël van de Poppe highlighted to his 711 thousand followers the massive liquidations experienced recently, although he urged investors to remain calm.

Countdown to the Big Event

Interestingly, Bitcoin’s current volatility coincides with the next halving event scheduled for April 20, 2024. The halving will halve the reward for mining new Bitcoin blocks, an event with historical implications for the price evolution of the cryptocurrency.

Crypto analyst Rekt Capital observes a recurring pattern in Bitcoin’s behavior leading to halvings. Called the “Pre-Halving Retrace,” this pattern suggests a temporary retracement before potential price increases.

Rekt Capital emphasizes that this cyclical behavior is consistent across previous Bitcoin cycles.

“[Pre-Halving Retrace] has been the case in every Bitcoin cycle. This time is no different,” Rekt Capital wrote on its X (formerly Twitter).

Additionally, Rekt Capital notes that despite immediate price fluctuations, BTC remains above its Reaccumulation Range during the halving week.

This observation echoes recent analysis from a media outlet, highlighting Bitcoin’s repeated tests of the price barriers at $71,800 and $63,700. Although breaking these levels is challenging, news about the Hong Kong ETF and the impending halving could catalyze a new all-time high.

The complexity and volatility of the cryptocurrency market make it inherently unpredictable, with frequent price fluctuations. Bitcoin’s failure to hold the $63,700 support level could invalidate the bullish outlook, potentially leading to further price declines.

By Audy Castaneda

Hong Kong Gives Green Light to Bitcoin and Ethereum ETFs, and other News

Leonardo Perez
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Hong Kong Gives Green Light to Bitcoin and Ethereum ETFs, and other News

At least three overseas Chinese asset managers, including Hong Kong units of Harvest Fund Management, Bosera Asset Management and China Asset Management, are set to launch their own Bitcoin and Ethereum spot ETFs soon.

Hong Kong advances in the crypto world with the approval of Bitcoin and Ethereum ETFs. The Hong Kong Securities and Futures Commission (SFC) gave the green light, albeit conditional, for the launch of the first spot exchange-traded funds (ETFs) for BTC and ETH on April 15. As reported by Reuters.

Hong Kong’s Harvest and Bosera have already received conditional approvals from the SFC, allowing them to move forward with their plans. Meanwhile, China Asset Management’s Hong Kong unit is also in the process of developing BTC and ETH spot ETFs after obtaining regulatory approval to provide virtual asset management services.

The SFC issues a conditional authorization letter for an ETF application if it meets its general requirements, subject to various conditions. Including fee payments, document submission and Hong Kong Stock Exchange (HKEX) listing approval.

Bitcoin Wallet “Sleeping” for 14 Years Wakes Up and Transfers 50 BTC to Coinbase

A Bitcoin wallet, dormant for 14 years, wakes up to move 50 BTC valued at $3.28 million to Coinbase. The surprise arose when on-chain data revealed that this wallet, dating back to April 2010, belongs to one of the first Bitcoin miners to receive BTC as a reward.

The movement of such a considerable amount of Bitcoin always captures attention in the crypto community. These “crypto whales,” as they are known, can influence the market with their transactions. Which makes investors analyze their movements for possible indicators of price trends.

Stepn and Adidas Partner to Launch NFT Collection of Solana Sneakers

On Monday, Move-to-earn game Stepn announced an exciting collaboration with leading sportswear brand, Adidas. The Stepn x Adidas Genesis Sneakers collection marks the beginning of a series of joint activities between the two companies. This year-long partnership will lead to more NFT and physical product releases.

“This collaboration between Stepn and Adidas highlights the power of moving and earning money in both the virtual and real world at the same time,” said Shiti Manghani, CEO of Stepn, in a statement. “The fact that a physical and digital partnership between the most used lifestyle app and a global brand like Adidas is now a reality indicates the direction lifestyle rewards are heading.”

Vitalik Buterin Endorsement Soars Railgun Token (RAIL) 123%

Railgun Privacy Protocol (RAIL) saw a massive 123% surge after Vitalik Buterin expressed his support on This public endorsement from someone so influential in the world of cryptocurrencies generated a lot of interest in the token. As a result, its price skyrocketed rapidly.

What’s interesting is that Buterin didn’t just stop at words, he backed up his support with real actions by transferring a large amount of ETH to Railgun on Monday. This action not only strengthened trust in the project, but also highlighted its commitment to privacy in the cryptocurrency ecosystem.

This rise in Railgun price coincides with a good day in the broader cryptocurrency market. Bitcoin and Ethereum also posted gains, indicating positive sentiment across the industry. It appears that the community is responding favorably to projects that promote online privacy and security.

By Leonardo Perez

Central Bank of Fiji Issues Warning Against Purchasing and Investing in Cryptocurrencies

Audy Castañeda
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Central Bank of Fiji Issues Warning Against Purchasing and Investing in Cryptocurrencies

With the cryptocurrency market gradually recovering after the weekend debacle, Fiji’s central bank has issued a warning to the public regarding the use and trading of digital assets within the country.

RBF Governor Ariff Ali said the warning regarding the use, trading and investment in cryptocurrencies arose from the growing trend of promoting digital asset investment schemes in Fiji.

In an official press release on Monday, the Reserve Bank of Fiji (RBF) clarified that cryptocurrencies such as Bitcoin (BTC), Ethereum (Ether) and Tether USD (USDT) are not recognized as legal tender in the country. and should not be used for transactions involving goods and services within the nation.

Cryptocurrencies Are Illegal in Fiji

The bank cited the RBF Act 1983, under which legal tender in Fiji is limited to banknotes and coins issued or authorized only by the RBF. Therefore, any attempt to use cryptocurrencies for payment purposes within the country is considered illegal under current legislation.

The bank also revealed that it is illegal for residents of the country to engage in any form of cryptocurrency trading using funds held in Fiji, as virtual assets are not recognized as investment offerings. The RBF said the rule also extends to corporate institutions. Individuals and companies are prohibited from investing in or purchasing digital assets within the nation, popularly known as the “soft coral capital of the world.”

The bank further stated that the ban extends to the use of locally issued credit and debit cards in the country to acquire or invest in digital assets. The central bank warned that violations of RBF directives regarding the use and promotion of digital assets may lead to sanctions under both the RBF Act of 1983 and the Exchange Control Act of 1950.

The RBF also warned that citizens outside the country who invest in cryptocurrencies without obtaining approval from the central bank may incur sanctions under the Exchange Control Law.

No Company is Authorized to Offer Crypto Services in Fiji

RBF Governor Ariff Ali said the warning about the use, trading and investment in cryptocurrencies arose from the growing trend of promoting digital asset investment schemes in Fiji.

According to Ali, the asset class is advertised to the country’s residents through social media platforms, while the country prohibits its citizens from interacting with the emerging economy. The RBF governor also emphasized that the bank has not authorized any person or organization to offer cryptocurrency-related investment products to people in the region.

Fiji residents may even face criminal charges for investing in cryptocurrencies abroad using “funds held in Fiji,” the statement added. Apparently, the warning was motivated by the promotion of cryptocurrencies in the country:

“RBF Governor Mr. Ariff Ali acknowledges that there are indications of individuals or entities promoting cryptocurrency investment schemes in Fiji. These investment plans are increasingly promoted through various platforms, including social media,” according to the statement.

The country is one of the many nations in the world that has frowned upon the adoption of financial innovation. Through the central bank and the Fiji Competition and Consumer Commission, the government has issued several warnings regarding the use and trading of digital assets in the region.

By Audy Castaneda

Hong Kong Approves Its First Bitcoin Spot ETF and BTC Price Soars

Leonardo Perez
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0
Hong Kong Approves Its First Bitcoin Spot ETF and BTC Price Soars

Hong Kong approves its first Bitcoin spot ETF, boosting BTC price to $66,000. China Asset Management partnered with OSL Digital and BOC International. The Bitcoin spot ETF aims to turn Hong Kong into a major hub for cryptocurrencies.

In a crucial development for the financial sector, the Hong Kong Securities and Futures Commission (SFC) has authorized China Asset Management (Hong Kong) to launch a Bitcoin spot exchange-traded fund (ETF).

This decision will position Hong Kong as a potential rival to major financial centers in the cryptocurrency market.

Dynamics of Bitcoin Spot ETFs in Asia

To facilitate the successful launch of this ETF, China Asset Management (Hong Kong) has partnered with OSL Digital Securities and BOC International Prudential Trusteeship. These partnerships aim to leverage their expertise in virtual asset management and custody services.

Consequently, the announcement significantly increased the price of Bitcoin, which skyrocketed to $66,000.

This bullish response highlights market enthusiasm, especially heightened following reports that ETF approval was imminent last week.

Furthermore, with the introduction of this ETF, Hong Kong aims to consolidate its status as a global cryptocurrency hub. The city’s proactive regulatory approach seeks to balance market growth with investor protection, fostering an enabling environment for both.

In the United States, the launch of similar Bitcoin spot ETFs has had a transformative impact on the market. Since their debut in January, these ETFs have attracted about $59 billion in assets.

Importance of Hong Kong for Cryptocurrencies

This significant influx of capital has significantly bolstered the price of Bitcoin, illustrating the potential of the new Hong Kong ETF to similarly drive market growth.

The Hong Kong Bitcoin spot ETF will offer investors direct exposure to Bitcoin market prices. This strategy is designed to offer more transparency and reduce the risks associated with derivatives.

These features are especially attractive to conservative investors eager to explore cryptocurrency investments.

Furthermore, the timing of this approval is crucial as global interest in cryptocurrencies continues to rise amidst diverse regulatory landscapes.

Hong Kong regulators have carefully prepared a support framework that prioritizes market expansion and investor safety. Strategically located in Asia, Hong Kong has a strong financial infrastructure ideal to spearhead the expansion of cryptocurrency services in the region.

Furthermore, the introduction of this ETF is expected to attract investors from around the world and strengthen Hong Kong’s position as a financial power.

Concerns about Long-Term Sustainability of Hong Kong’s Enabling Regulatory Environment

Key industry figures have praised Hong Kong’s regulatory clarity. Cathie Wood, CEO of Ark Invest, for example, has praised Hong Kong’s strong pro-crypto regulatory policy. The CEO underlined Hong Kong’s emergence as a political leader, attributing it to the government’s proactive stance towards fostering innovative technologies.

However, Hong Kong’s autonomy under the “One Country, Two Systems” agreement with China will expire in 2047. This raises questions about the long-term sustainability of Hong Kong’s favorable regulatory environment. Bobby Lee, founder and CEO of Ballet, expressed this concern during an August 2023 interview with a media outlet.

Lee questioned the pace of integration between Hong Kong and China over the next 23 years. This, highlighting the eventual unification of currencies and systems and, potentially, supervision under a single framework. Lee stated the following:

“The question is: what would happen in the next five years [in Hong Kong]? The next 10 years? The next 20 years? Or even the next 24 years? Would change? “I think [Hong Kong’s regulatory environment] would change.”

By Leonardo Perez

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