Daily News | BTC Exceeded $50K; DOGE Trading Activity Declines; Solana Jupiter Perps and Farcaster Protocol Data Have Once Again Broken Historical Highs

2024-02-13, 03:26

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## Crypto Daily Digest: BTC Exceeded $50,000, DOGE Trading Activity Slows
The price of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> has exceeded $50,000 for the first time since December 2021.

According to Gate.io's data, Bitcoin broke through $50,000 on Monday at 11am Eastern Time (5pm Central European Time) and rose as high as $50,369.8. It has now fallen back to $49,935.5, with a 24-hour increase of 3.72%.

It is also reported that the market value of BTC has once again exceeded 50% of the total market value of digital currencies, currently at 50.3%. The current total market value of digital currencies is 1,913,110,641,635, and the BTC market value is $962,320,693,400.

In addition, according to Into the block data, 91% of BTC holders are currently profitable. CryptoQuant founder and CEO Ki Young Ju said that this data also means that traders who bought BTC near the top of the 2021 bull market are also nearing redemption.

At the regulatory level, South Korea has made the latest progress. According to media reports, South Korea will strengthen the application review and inspection of virtual asset trading platforms starting from this year, and unqualified virtual asset exchanges will be removed. Before the inspection phase, South Korea was still considering introducing a suspicious transaction prevention and cessation system that could quickly prevent the concealment of criminal proceeds.

The Financial Intelligence and Analysis Unit (FIU) of South Korea, in consultation with the Policy Advisory Committee and relevant institutions, released the 2024 Work Plan based on expert and industry opinions on February 12. FIU plans to strengthen the declaration review and anti-money laundering (AML) checks to prevent unqualified virtual asset exchanges from entering the Korean won market, and will clear exchanges that have already entered the market but are not qualified.

As the time for Bitcoin halving approaches, an analysis report by renowned asset management company Grayscale shows that the fundamental changes in Bitcoin's supply-demand balance may have a greater impact on the price of cryptocurrencies, especially the upcoming halving event.
From a historical perspective, there has usually been a cycle of price increases after the Bitcoin halving event.

However, a new factor (i.e. ETF) will also affect Bitcoin's performance in the halving event in April this year. The report states, "In addition to the overall positive on chain fundamentals, the market structure of Bitcoin is favorable for prices after halving."

The Grayscale report indicates that the current issuance of new coins (mining rewards) per block is 6.25 bitcoins, which is approximately $14 billion per year based on a price of $43,000. In other words, to maintain the current price, a buying pressure worth $14 billion needs to be generated during the same period. "After halving, these demands will be reduced by half: the issuance of new coins per block is 3.125 bitcoins, equivalent to a decrease of $7 billion per year, effectively reducing selling pressure."

After halving, the mining reward for each block will be reduced to 3.125 bitcoins. To cope with cost pressures, miners usually sell more Bitcoin inventory, thereby increasing supply and lowering prices.

Grayscale indicates that the 9 Bitcoin spot ETF products recently launched by Wall Street may serve as a hedge against selling pressure on miners. The report states, "Bitcoin ETFs may significantly absorb selling pressure and potentially reshape the market structure of Bitcoin by providing stable new sources of demand, which is favorable for prices."

On February 12, according to the latest research conducted by Toluna for Coinbase, crypto users in California are expected to have a significant impact on the state's political direction in the 2024 elections.

According to estimates, approximately 27% of adults in California (approximately 8.2 million people) own digital assets, representing a large and potentially decisive voter group in elections.

According to the report, there is a considerable number of young people among crypto enthusiasts in the state, with 40% aged between 18 and 34. This generation is more focused on technological progress and digital financial solutions.

The study found that the vast majority of people support policy initiatives that encourage disruptive technologies such as blockchain and digital assets, believing they are crucial for future financial and social progress. It is expected that this sentiment will translate into political action, and crypto holders are likely to support candidates advocating for the crypto industry and blockchain technology.

In terms of data fluctuations, according to on chain analyst Ali, <a href="/price/dogecoin-doge" target="_blank" class="blog_inner_link">Dogecoin</a>'s recent trading volume and high-value trading volume have both declined, which often indicates a decrease in trading activity. This trend may indicate a decrease in the number of people purchasing, selling, or transferring DOGE, which may be related to a decrease in public interest or confidence in the currency.

According to L2BEAT data, the Starknet TVL scalability solution for <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> Layer2 has rebounded to $169 million, with a 7-day increase of 12.29%.

In the past week, the weekly trading volume of <a href="/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> Jupiter Perps perpetual contracts reached $1.8 billion, with a capture fee of $2.93 million. The number of users with trading volumes of $100,000 and over $1 million exceeded 1.5k, both reaching historic highs. Presently, the cumulative trading volume of Jupiter Perp has exceeded $10 billion, with an AUM of $139 million.

Dune data shows that Farcaster currently has 144,452 connected addresses, a total of 171,678 users, and 191,413 signers added.

In addition, the daily number of Casts posted by Farcaster users exceeds 78,000, and the daily response to messages has exceeded 260,000 Reactions.

## Macro: TradeFi trading is lackluster, exploring the logic behind the recent rise of Bitcoin
On Monday, the US dollar index rebounded and briefly reached a daily high of 104.27, ultimately closing up 0.05% at 104.12. The yield on US Treasury bonds further rebounded, with the benchmark 10-year yield falling into a range and closing at 4.179%. The yield on interest rate sensitive 2-year US Treasury bonds still fell, but remained above 4.48%.

Spot gold experienced a significant decline in the pre US session, dropping to an intraday low of $2,011.94 and then rebounding to near the $2020 level, ultimately closing down 0.22% at $2,020.12/ounce; Spot silver rose 0.38% to $22.69 per ounce.

Although oil prices rose by over 6% last week due to escalating tensions in the Middle East, they remained largely unchanged on Monday. WTI crude oil fell to an intraday low of $75.50 in the US market, and then recovered all lost ground strongly, ultimately closing up 0.44% at $76.88 per barrel; Brent crude oil rose 0.05% to close at $81.95 per barrel. The US stock market closed on Monday, with the Dow Jones Industrial Average up 0.33%, the S&P 500 down 0.09%, and the Nasdaq down 0.3%.

There hasn't been much news worth paying attention to from the Federal Reserve recently. We can take a look at the recent market trends of Bitcoin.

Bitcoin has finally broken through $50,000, supported by strong inflows of exchange traded funds (ETFs) and signs of institutional accumulation last week.

Before the start of trading hours in the United States, the largest cryptocurrency hovered around $48,000 earlier in the day before suddenly soaring to $49,100. Last week's strong inflow of spot Bitcoin ETFs supported the price trend, attracting over $1.1 billion in net new funds, while slowing the outflow of funds from existing funds such as Grayscale Bitcoin Trust (GBTC) and ProShares' futures ETFs, asset management company CoinShares reported on Monday.

However, the clearing of its $1.6 billion GBTC position by lending institution Genesis under cryptocurrency debt protection may put pressure on net inflows of ETFs and prices in the coming months.

Macro analyst Noelle Acheson said that Bitcoin is currently benefiting from increased accumulation, mainly due to expectations that China will inject capital to curb its stock market crash, and even developed countries will inevitably experience currency depreciation in the future.

"Given that there have been no clear catalysts in the past few days to explain the fluctuations in BTC, what we may be seeing is an increase in accumulation due to the aforementioned reasons, as well as the continued spread of Bitcoin awareness driven by ETF marketing machines."

<div class="blog-details-info">
<div>Author:**Byron B.**, 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>