What happened this week in the world of blockchain and cryptocurrencies? The most relevant local and international events as well as appealing background reports in a concise and compact weekly review.
Selected articles of the week:
In the first two parts of the CVJ.CH Academy, we guide our readers through the principles of blockchain technology and the history of money. Both of these topics lay the foundation for a revolutionary concept that was launched in 2009: Bitcoin. The decentralized network was the first digital construct that could transfer value over the internet without a central authority. Combined with a pre-programmed, disinflationary monetary policy, the result is an attractive store of value.
What is Bitcoin? The decentralized network represents the first functional concept capable of transferring value…
Conclusion of the Bitcoin halving
As part of the Bitcoin monetary policy, the issuance rate of new coins is halved every four years. In concrete terms, this means lower selling pressure from miners, which has historically been accompanied by upward cycles for digital gold. However, this halving, already the fourth in Bitcoin’s history, took place in a different environment. Some are now wondering whether we will deviate from historical patterns.
Although the Halving’s market impact has been relatively subdued, investors generally anticipate significant after this quadrennial event.
Fungible tokens on Bitcoin gain momentum
For investors, the lower income for miners generally means less pressure to sell – a positive long-term development. However, the halving of inflation also reduces the incentives for mining businesses to continue securing the network. In the long term, transaction fees will therefore have to rise in order to compensate for the loss of revenue due to the halvings. One way to increase network activity is to introduce new protocols on Bitcoin itself. Currently in the spotlight? Fungible tokens in the form of Runes.
Since the Bitcoin Halving, a new token standard called the “Runes Protocol” emerged on the largest decentralized blockchain network.
ETF hype levels off
ETFs have been one of the main drivers of the recent crypto rally, recording inflows in the billions since their launch in early January. However, both ETF inflows and the BTC rally have lost momentum since the beginning of April. Recently, BlackRock’s IBIT recorded a daily outflow of USD 37 million for the first time, breaking 71 consecutive days of inflows. Is the ETF hype over?
A summarizing review of what has been happening at the crypto markets of the past week. A weekly report in cooperation with Kaiko.
Attack on the industry
In addition: Since former investment banker Gary Gensler took office, the US Securities and Exchange Commission (SEC) has been on a crusade against the crypto industry. The authority wants every cryptocurrency except Bitcoin under its supervision. Recently, the decentralized exchange Uniswap, the wallet provider Metamask and the US financial services provider Robinhood fell victim to the authority. They had all violated securities laws. However, criticism from the political arena is getting stronger.
A hail of complaints: the US SEC launches new lawsuits against various crypto companies such as Uniswap, Metamask and Robinhood.
