Bitcoin: Bitcoin whale activity has fallen to its lowest level in a year

After the Fed raised interest rates by 25 basis points in March, several key officials began to speak hawkishly again. Last night, Fed Governor Waller said that since inflation data far exceeded expectations, it should consider raising interest rates by 50 basis points in the next few meetings and tend to start shrinking the balance sheet at the next or the next meeting. Kashkari is in favor of starting shrinking the balance sheet at the next meeting at the earliest. Despite such views, the U.S. stock market opened low and closed high, and the crypto market rose in tandem. On the one hand, it shows that the market has fully factored in the expectations of interest rate hikes. On the other hand, the low opening and high closing of the Quadruple Witching Day show that there are more funds for rolling long positions. Therefore, the market is not so pessimistic about interest rate hikes and balance sheet shrinkage. Perhaps the worst days have quietly passed, and spring is coming soon.

The US SEC amended the Securities Exchange Act and changed the definition of an exchange to: a system that uses non-corporate trading rights and communication protocols to connect securities buyers and sellers. This should include crypto exchanges in its supervision, and the Defi market is also affected because they all meet the definition of an exchange. Supervision will bring more incremental growth to the top Defi protocols, which should be an important logic for the recent continued rebound.

Today I saw that Twitter already supports connecting to wallets to get your own NFT avatar for Twitter avatars. If all social products change to this method in the future, the daily value of NFT avatars will be reflected. This is like buying luxury goods or driving a luxury car, which invisibly shows your financial status, and the display is more straightforward and simple. Recently, the Colorless Ape series has continued to heat up, with a single-day transaction volume exceeding US$1.5 billion, a record high. An anonymous buyer even spent 862 ETH to buy 9 BAYC NFTs. If Bitcoin defines the value of cryptocurrency, then CryptoPunk and BAYC have become luxury goods in the crypto world.

Since the Russian-Ukrainian crisis on February 24, Bitcoin and Ethereum have risen by 14.5% and 13.5% respectively, while the S&P 500 has only risen by 3.2%, indicating that more funds are entering the crypto market and less are flowing out. Judging from the on-chain addresses, the number of Bitcoin holders has hit new highs during the recent sharp fluctuations. Neither whales nor large investors have sold due to fluctuations. This is the consensus on the formation of the bottom.

14% of companies in El Salvador already use Bitcoin for transactions, and 90% of companies believe that Bitcoin will not have much impact on their performance after it is adopted. Bitcoin is just a medium for value transmission, so for companies in El Salvador, it doesn’t make much difference which currency to use. Only those companies related to imports and exports will embrace Bitcoin payments.

Currently, 21% of hedge funds invest in crypto assets, and 86% of hedge funds plan to increase cryptocurrency investments. There are currently 400 active cryptocurrency hedge funds in the world, and the number is increasing every day. JPMorgan Chase believes that inflation data has rekindled investors' interest in Bitcoin, and institutions have returned to the Bitcoin market, or they believe that Bitcoin is a better hedge asset than gold. In any case, the incremental investment continues, and the future is worth looking forward to.

Airbnb CEO said that he is seriously considering accepting cryptocurrency payments. He has said this many times. It is estimated that cryptocurrency payments will be accepted soon. The entry of such a global accommodation giant will bring new ignition points to the market.

Pantera Capital CEO said that Bitcoin will reach $400,000 in 2025 because everyone will use cryptocurrency through smartphones in the future, and other digital assets, such as SOL, ETH, etc., will increase by more than 100 times. There are still two years left, so let's wait and see.

ARK Fund bought 190,000 shares of Coinbase this week, which is a weather vane operation. Let’s see how Cathie Wood is doing this wave.

Panic 28, slightly relieved.

Coin News:

Bitcoin: Bitcoin whale activity has dropped to the lowest level in a year, the sell-off at this position is getting smaller and smaller, the exchange inventory continues to hit a new low in the past three years, and the supply is getting lower and lower. With the continuous increase in future increments, such as LUNA's plan to purchase $10 billion of Bitcoin as UST foreign exchange reserves, and the continuous increase in holdings by over-the-counter institutions, the price of Bitcoin will rise relatively strongly.

ETH: 180,000 ETH flowed out of the exchange on Tuesday, and then 190,000 ETH was deposited into the Lido protocol, which can be understood as being deposited into the ETH2.0 pool. The last outflow of this scale was in October 2021, and the price continued to rise after the outflow. It is expected to link with Bitcoin in the near future and remain strong.

ZEC: The network will be upgraded in April. This upgrade will improve network scalability and privacy by eliminating trusted settings, adding recursive encryption and aggregate proofs, etc. It is still the leader of anonymous coins in the near future. Since Western countries imposed sanctions on Russian accounts, this anonymous coin has also been repeatedly mentioned in our VIP morning talks.

SHIB: More than 30,000 holders liquidated their positions in a single day, which shows that most retail investors have surrendered. If there is another downward wave, we should start to pay attention, as whales have already collected a lot of chips.