Bi-Weekly Crypto: Halving is here. Bitcoin rebounds from 60k

by Roger
Bi-Weekly Crypto: Halving is here. Bitcoin rebounds from 60k

Happy Bitcoin Halving! Prices have recovered from the 60k low after a big liquidation event in the alt-coin space. Here’s an overview of the digital market trends from the past two weeks.

Bitcoin for the past 2 weeks ending April 22nd fell -6.70%, Ethereum -13.38% and the rest of the market -9.51%. Ethereum continues to show lackluster performance signaling troubling prospects for the broader alt-coin market.

The US Bitcoin spot ETFs experienced net outflows for five consecutive days leading up to April 18th. Since then, flows have reverted to net inflows and GBTC outflows have significantly decreased, indicating a positive outlook. On April 13rd, Binance and Bybit saw the biggest liquidation event ever by volume. Ethereum and other alt-coins are still feeling the effects of that day, when funding rates became negative on most coins (Figure 1). Meanwhile, Bitcoin is undergoing a renaissance as the new Runes protocol attracts significant attention, driving transaction fees to unprecedented highs (Figure 2).

Figure 1: Funding rates stay either low or negative / Source: Coinglass

Figure 2: Bitcoin transaction fees hit an all-time-high / Source: BITBO

The US CPI numbers that we mentioned in the last newsletter came in higher than expected, causing both interest rates and the dollar to climb higher. The equities market also reacted negatively, with the previously dominant Nvidia dropping as much as 10% in a single day. The macro forces started weighing heavy on the digital asset market in the last few week and this trend continues.