Daily News | BTC Rebounded to $65K after a Sharp Drop; L1 Blockchain Berachain Raised $100M in B Round Financing; Ethereum Pectra Upgrade Brings "Smart Contract Wallet"

2024-04-15, 03:45

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## Crypto Daily Digest: BTC rebounded to $65K after plummeting; L1 blockchain Berachain raised $100 million in B round financing; Ethereum Pectra Upgrade Brings "Smart Contract Wallet"
First, let's examine the trading activity of <a href="/id/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETFs. According to Farside Investor data, on April 12, Grayscale's Bitcoin spot ETF (GBTC) outflows amounted to $166.2 million, and the inflow of iShares Bitcoin spot ETF (IBTC) funds was $111.1 million.

The price of Bitcoin has fluctuated sharply in the past two days, which has also impacted the trend of most Altcoins. On April 14, Bitcoin fell below $63,000 but quickly rebounded and is now reported at $65,067.54.

The market downturn dominated by Bitcoin may be due to the following main reasons:
The Bitcoin halving brings about a halving of block rewards, as the rising cost of miners will increase supply pressure and lower prices. In the recent crypto market, more people will tend to profit.
The reduction in US dollar liquidity was caused by the Federal Reserve's balance sheet reduction.

Framework Ventures and Brevan Howard Digital (BH Digital) Abu Dhabi jointly led $100 million of B round financing for Layer 1 blockchain developer Berachain.

Berachain is a modular Layer 1 blockchain based on the "proof of liquidity" consensus mechanism, which verifies the available liquidity of certain assets on the chain and is compatible with <a href="/id/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> virtual machines. Berachain has governance tokens BGT, gas tokens BERA, and native consensus collateral stablecoin HONEY.

Users can obtain BGT by performing specific tasks within the Layer 1 ecosystem, such as providing liquidity on Berachain's decentralized exchange, or can swap BGT for HONEY pegged to US dollars and use BERA to pay trading fees.

The company plans to use these funds to support expansion in Hong Kong, Singapore, Southeast Asia, Latin America, and Africa. It adds that Berachain's testing network has processed over 100 million transactions. Investors use the Simple Agreement for Future Tokens (SAFT) to provide funds for Berachain.

Previously, in April 2023, Berachain raised $42 million in private token financing led by Polychain Capital.

Ethereum developers have stated that EIP-3074 has been included in Ethereum's next upgrade, which will support "wallet smart contracting." This upgrade is scheduled for the "Pectra upgrade," which may occur later this year.

EIP-3074 has improved the wallet's user experience by delegating functions to smart contracts. For example, it is possible to approve many transactions simultaneously, use different ERC20 tokens to pay Gas, enhance security, or restore accounts.

However, developers also pointed out that EIP-3074 may pose a new risk. A single malicious transaction can deplete a user's entire wallet through bulk transactions. However, professional analysts believe that a well-designed wallet can help eliminate potential risks.

## Market Trends: the market rebounded after a sharp downturn, the AI and Meme sectors showing outstanding performance
After Friday's market crash, the market rebounded, causing BTCD (Bitcoin market value ratio) to rise to a new high in nearly four years. The strongest rebound sectors are still the previously strong concepts of AI, Meme, and RWA (tangible world assets).

On the macroeconomic front, the US stock market experienced a significant decline, while the US dollar index hit a new high in nearly half a year.
### Market Hotspots:
AI sector: Tokens in artificial intelligence sectors such as TAO, AGIX, RNDR, and WLD have significantly increased. The AI sector was the first to rise and enter the adjustment phase in the previous market trend, and performed well in the rebound after the market crash.

Meme sector: Token prices in Meme sectors such as SLERF, MEW, and WIF have also significantly increased. The characteristic of the Meme sector is a high circulation of chips and a high turnover rate in the market.

RWA sector: Tokens in RWA sectors such as TRU, ONDO, and PENDLE have also significantly increased. Benefiting from BlackRock's entry into token funds, the tokens in the RWA sector have recently shown strong performance, not only being relatively resistant to declines in declining markets but also showing significant gains in rising markets.

Multi-Sign Wallet Safe issues tokens: Multi-Sign Wallet Safe is about to issue SAFE tokens, and it has been reported that Ethereum founder Vitalik Buterin has deposited $700 million in the Safe Wallet. This news may spark market attention towards its tokens.

Overall, the market rebounded after a sharp drop on Friday, but the US stock market fell sharply, and the US dollar index hit a new high. Regarding market hotspots, tokens in the AI, Meme, and RWA sectors have shown outstanding performance, and investors should closely monitor market trends and carefully adjust their investment strategies.

## Macro: The tension in the Middle East stimulates a wave of risk aversion, with stock markets falling and gold prices soaring
During recent weeks, inflation concerns have intensified market uncertainty. The tensions in the Middle East stimulated strong demand for safe-haven assets such as the US dollar, gold, and US treasury bond bonds, and the global market fell. In addition to the stock market, it has also driven gold to a historic high. At the same time, energy stocks have also experienced vigorous development.

On Friday, April 12, there was a sell-off in the US stock market, marking the end of a week marked by volatile inflation data, changes in expectations for Federal Reserve policy, and imminent geopolitical tensions.

The three major indexes all fell by more than 1%, with the Dow Jones down 1.24%, the S&P down 1.46%, and the Nasdaq down 1.62%.

After the profit-driven stock market crash of Bank of America, investor sentiment has turned negative. JPMorgan Chase's stock price hit its largest decline in nearly four years, with global stock markets experiencing their largest decline in six months. However, at the same time, US energy stocks have surged, benefiting investors from rising oil prices and stronger-than-expected economic performance while also seeking to protect their investment portfolios from the impact of inflation.

It is predicted that the energy sector of the S&P 500 index will rise by about 17% by 2024, which is about twice the size of the overall index. In recent weeks, the energy sector's growth has accelerated, becoming one of the best-performing sectors in the S&P 500 index over the past month.

Oil prices are one of the key drivers: due to the unexpectedly strong performance of the US economy and concerns about the escalation of conflicts in the Middle East, US crude oil has risen by 20% this year.

Some investors believe that the rise in energy stocks can hedge against inflationary pressures in the United States. This year, consumer price increases as an inflation indicator have been more stubborn than expected, which may have weakened market expectations for the Federal Reserve's interest rate cut in 2024, exerting a certain inhibitory effect on the stock market.

On Monday, the Asian market will open conservatively, with Japan's Nikkei Index falling more than 1%, Australia's S&P/ASX 200 Index falling 0.6%, and Hong Kong's Hang Seng Index falling 0.8%.

On April 12, gold prices rose above $2,400 per ounce, reaching a historic high and entering its fourth week of gains. Tensions in the Middle East intensified, prompting investors to seek safe-haven assets.

Spot gold hit a historic high of $2,419.79 and fell 0.8% to $2,353.35 per ounce. The price has increased by about 1% this week. US gold futures rose 0.1% to $2,374.1.

Regarding commodities, oil prices have changed very little, as traders have largely digested Iran's retaliatory attacks. Brent crude oil futures fell 0.5% to $90.01 per barrel, while West Texas medium crude oil futures in the United States fell about 0.6% to $85.13 per barrel.

<div class="blog-details-info">
<div>Author:**Sherry S. & Icing**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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