Cointree Crypto Market Update - May 8th 2024

Market report for traders

🔮 BTC and altcoins

Over the last 7 days, Bitcoin ends at AU$95,019, moving +1.32% at the time of writing. Meanwhile, Ethereum ends at AU$4,583 moving -1.96% week-on-week. On the Altcoin side, Solana +15.26%, Cardano -2.54%, and Dogecoin +11.7%.

🗞 What’s happening in the news?

The New Norm in Bitcoin Mining

Bitcoin miners are feeling the pinch following the latest halving on April 20, 2024. The event, which slashed mining rewards from 6.25 BTC to 3.125 BTC, has led to a significant drop in daily mining revenue—from about $6 million in early 2024 to a new low of under $3 million post-halving. On May 1, revenue even plummeted to a yearly low of $26.3 million for total earnings. This shift represents a new economic reality for miners, forcing them to adapt their strategies to remain viable in this next phase of the Bitcoin economy. The high of April 20, when revenues soared to over $107 million, seems a distant memory as the industry adjusts to these leaner times.

Australia's Crypto Tax Crackdown Intensifies

The Australian Tax Office (ATO) is stepping up its efforts to ensure crypto traders meet their tax obligations. With plans to gather detailed information from up to 1.2 million cryptocurrency exchange users, the ATO aims to crack down on tax evasion in the crypto sphere. The data collection will include personal details and transaction histories, as cryptocurrencies are taxable assets in Australia, subject to capital gains tax. This move highlights the increasing scrutiny on crypto transactions and the importance of maintaining transparency with tax authorities.

SEC's Ongoing Battles with Crypto Firms

The U.S. Securities and Exchange Commission (SEC) continues its oversight of the crypto industry, with Robinhood being the latest to receive a Wells notice. Despite Robinhood's compliance efforts and application to become a special purpose crypto broker-dealer, the SEC is preparing to sue for alleged securities violations. This pattern of legal challenges has become a routine part of the SEC's strategy to regulate the crypto market, especially following the high-profile collapse of FTX. The agency has filed at least one lawsuit per month since last November against a crypto company, the majority of which go unnoticed and typically end in a settlement.

Satoshi-Era Bitcoin Stir

A dormant Bitcoin address from the "Satoshi era" has recently sprung to life after 10 years of inactivity. This wallet, holding 687 BTC (worth AU$65 million), transferred its contents to two new addresses, reigniting curiosity and speculation within the crypto community. These movements are closely watched as they potentially signal actions from early Bitcoin adopters or even, though less likely, the mysterious Satoshi Nakamoto. With over 1.75 million dormant addresses containing substantial Bitcoin holdings, such reactivations are noteworthy events that can impact the market and stir historical intrigue.

📖 What we’ve been reading

How long does it take to mine 1 Bitcoin?

"It takes money to make money. Earning Bitcoin without investment is nearly impossible, but there are inexpensive ways to get involved." Read more

World’s First Meme Summit Launches Token2049 Week

Memecoin event in Dubai explores the impact of the meme culture on the crypto landscape while bringing communities together with celebrities. Read more

South Korea Looks to Upgrade Status of Crypto Crime Unit

The temporary unit is reportedly being transformed into a permanent department as enforcement actions rise dramatically in South Korea. 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.