Market update

Cointree Crypto Market Update - April 17th 2024

Market report for traders

🔮 BTC and altcoins

Over the last 7 days, Bitcoin ends at AU$99,446, dropping -10.99% at the time of writing. Meanwhile, Ethereum ends at AU$4,809 moving -15.06% week-on-week. On the Altcoin side, Solana -23.32%, Cardano -25.30%, and Dogecoin -21.36%.

🗞 What’s happening in the news?

Vintage Bitcoin Movement: A Blast from the Past

We witnessed a rare spectacle this week as 50 BTC from the "Satoshi era" were moved for the first time in 14 years. Originally mined in April 2010, these coins, valued at over $3 million, found their way to several wallets, including a notable portion to the Coinbase exchange. This movement joins a series of similar historic transactions, rekindling discussions about the earliest days of Bitcoin and its mysterious creator, Satoshi Nakamoto.

Deeper Dive: Upcoming Bitcoin Halving and Its Ripple Effects on Mining

As the Bitcoin community counts down to the much-anticipated halving event, the stakes couldn't be higher for miners. Scheduled to occur within days, this event will cut the reward for mining a single block from 6.25 BTC to 3.125 BTC, a drastic reduction that happens approximately every four years and is hardcoded into the Bitcoin protocol. This halving not only underscores Bitcoin’s deflationary nature but also serves as a critical test for the economic sustainability of mining operations.

The impending halving is expected to trigger a "supply shock" in the Bitcoin ecosystem, potentially increasing the asset's value due to its increased scarcity. However, for miners, the reduction in block rewards means that profitability will now hinge even more on operational efficiency. Miners will be compelled to upgrade their hardware, optimise their electricity consumption, and possibly relocate to regions offering cheaper energy sources. As the cost of older mining rigs becomes prohibitively high relative to their output, the industry may see a significant shift towards more modern and efficient technologies.

Avalanche Faces Downward Pressure: Technicals Suggest Further Declines

In other market news, Avalanche (AVAX) is experiencing significant bearish pressure. A technical pattern known as the "Death Cross" has appeared on its charts, historically a predictor of extended downturns. Currently trading below $40, AVAX might see further declines, testing critical support levels. This downtrend contrasts sharply with the broader market's occasional spikes of optimism, indicating a challenging period ahead for holders of AVAX.

Legal Spotlight: Changpeng Zhao's Sentencing Looms

The crypto legal world is also buzzing with the upcoming sentencing of Changpeng Zhao, the former CEO of Binance. Following a guilty plea on a single felony count related to anti-money laundering lapses, Zhao's sentencing on April 30 could set a precedent in how regulatory offenses are treated in the burgeoning crypto space. With potential sentences ranging widely, the crypto community and legal observers alike are keenly awaiting the outcome.

📖 What we’ve been reading

Only 6 altcoins in the top 50 have outperformed Bitcoin this year

“The price of Bitcoin has grown 54% since the start of 2024, and only six altcoins from the top 50 have done any better.”

Read more

What Bitcoiners Are Saying About the Upcoming Bitcoin Halving

“Is the halving priced in or not? Will it disrupt the bitcoin mining industry? Or accelerate adoption? Here's what experts and community members are saying about the fourth — and perhaps most anticipated — halving”

Read more

Stocks and crypto at the edge of ‘significant’ correction: 10x Research

“Risk assets could be at a tipping point, warns Markus Thielen, who announced selling all the company’s tech stocks as his outlook turned bearish.”

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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