Market update

Cointree Crypto Market Update - April 10th 2024

Market report for traders

🔮 BTC and altcoins

Over the last 7 days, Bitcoin ends at AU$104,325, rising 2.2% at the time of writing. Meanwhile, Ethereum ends at AU$5,284 moving +3.50% week-on-week. On the Altcoin side, Solana moves -7.89%, Cardano -1.31%, and Dogecoin +0.30%.

🗞 What’s happening in the news?

Bitcoin Halving: A New Era for Miners

As the Bitcoin community counts down to the mid-April halving event, the stakes have never been higher for BTC miners. The halving, which slashes the reward for mining Bitcoin by half, is expected to push mining costs from $40,000 to a staggering $80,000. With the current BTC price hovering above $70,000, miners are on edge, wondering if the post-halving period will sustain their operations. Historical trends, however, tell a story of resilience and profitability post-halving, with significant price jumps recorded in the years following past events. Despite the fears of obsolescence for some mining rigs, the cycle of initial downturn followed by a market rally could see miners through yet another transformative period in the Bitcoin saga.

Anticipating the Market's Reaction: Sell the News?

The upcoming halving could also trigger a "sell-the-news" event, a phenomenon where speculators cash in on the hype leading up to a major announcement, leading to a temporary market dip. Analysts from Steno Research suggest a pattern akin to the 2016 halving, predicting a short-term sell-off that could see Bitcoin's value dip below its pre-halving price. With daily mining rewards at an all-time high, the subsequent months post-halving could witness increased selling pressure as miners strive to cover operational costs, potentially affecting BTC's price stability.

Solana's Congestion Crisis: Seeking Solutions

On another front, the Solana network is facing significant congestion issues, attributed mainly to a surge in spam transactions and memecoin activities. Developers are racing against time, implementing software patches and updates aimed at alleviating the bottleneck. Comparing Solana’s architecture to the internet's infrastructure, the Solana Foundation is optimistic about overcoming the current challenges with forthcoming bug fixes and enhancements, including the introduction of dynamic priority fees to improve transaction processing.

PayPal Embraces Stablecoin for Cross-Border Payments

In a bold move to democratise international money transfers, PayPal has announced the integration of its PYUSD stablecoin into its Xoom service, allowing U.S. users to send money across borders without transaction fees. This initiative not only underscores PayPal’s commitment to leveraging cryptocurrency for financial inclusivity but also signals a growing acceptance of stablecoins as a reliable medium for global transactions.

📖 What we’ve been reading

Biden's Mining Tax is the Least Sensible Part of his 2025 Budget Proposal

Biden wants to impose a new 30 percent tax on the electricity that Bitcoin miners are using — regardless of how it's sourced. That means many will move abroad.

Read more

6 Ways the Halving Will Impact Bitcoin Mining The next Bitcoin halving, scheduled for April 20, is poised to significantly impact the mining landscape. Below Jaran Mellerud, of Hashlabs Mining, forecasts for what lies ahead.

Read more

Levels of consumer trust in crypto increasing: Report Consumer trust in cryptocurrencies, notably Bitcoin, sees an uptick according to a recent Deutsche Bank survey, signaling evolving sentiments amid lingering concerns over price volatility.

Read more

Disclaimer: The information provided is for educational purposes and does not constitute financial product advice. You should obtain independent advice from an Australian financial services licensee before making any financial decisions.

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