Bitcoin Newsletter Week 23 2024

Weekly update on all things Bitcoin

June 10, 2024

TL;DR

  • BTC is up

  • Bitcoin dominance is up

  • U.S. Bitcoin ETFs Experience Second-Highest Inflow Day Ever

  • Thailand Approves First Spot Bitcoin ETF

  • StarkWare Announces Bitcoin Scaling Initiative

  • Australia’s First Spot Bitcoin ETF with Direct Holdings Now Trading

  • Bitcoin Startup Embraces New Layer 2 Scaling Protocol

  • Semler Scientific Accelerates Bitcoin Adoption

  • Bitdeer Unveils Eco-Friendly Bitcoin Mining Chip

  • Riot Platforms Acquires 12% Stake in Bitfarms

  • Senator Ted Cruz Enters Bitcoin Mining in Texas

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Bitcoin Price

Crypto is up this week, with BTC being up 2.7% and ETH down 1.9%:

Bitcoin dominance has increased over the week, rising from 50.17% to a peak of 51.36% and ending at 51.2%. The recent ETH rally has already impacted Bitcoin's market dominance. This shift causes Bitcoin's dominance to increase, a trend observed over the past few days.

It’s going to be interesting to see whether this trend will continue in the short term, as capital in crypto tends to flow initially to BTC and then further out on the risk-curve, starting with altcoins like ETH and then into mid- or low-cap coins.

The cryptocurrency market is currently experiencing mixed sentiments as major digital assets such as Bitcoin (BTCUSD) navigate through various levels of support and resistance.

Bitcoin (BTCUSD) Analysis:

Bitcoin remains in a consolidation phase, exhibiting sideways movement between the $69080 support and the intraday resistance formed by the EMA50. The Bitcoin market has experienced another bullish week but is facing resistance around the $73,000 mark. This level is a significant barrier, but if Bitcoin manages to break above it, the market could see substantial gains. The projected upward movement could be around $15,000, potentially driving the price up to approximately $88,000.

Expected Trading Ranges:

  • Bitcoin (BTCUSD): $70000 (support) - $72000 (resistance)

Market Outlook:

Bitcoin's market dynamics are currently characterized by a strong bullish sentiment across all analyzed time frames. While short-term resistance levels need to be monitored, the medium to long-term outlook remains highly favorable. Investors should watch for a breakout above $71,200 in the short term and $72,000 in the medium term as indicators of sustained upward momentum. Overall, Bitcoin presents a promising investment opportunity with robust technical indicators and positive market sentiment supporting its continued growth.

BTC/ETH ratio has seen a slight increase.

The current exchange rate from Bitcoin (BTC) to Ethereum (ETH) is 1 BTC = 18.83 ETH. This represents a slight increase of 0.01% in the last hour but a decrease of 1.97% in the last 24 hours. Over the past 30 days, Bitcoin has gained 12.47% against Ethereum.

Financial News

In a remarkable display of investor interest, U.S.-based spot Bitcoin exchange-traded funds (ETFs) have recorded their second-highest net inflow day ever. Preliminary data shows these ETFs attracted a massive $886.6 million, signaling renewed confidence in the Bitcoin market. The last time inflows were this high was on March 12, with over $1.04 billion in net inflows.

Leading the influx was the Fidelity Wise Origin Bitcoin Fund (FBTC) with $378.7 million, followed by BlackRock’s iShares Bitcoin Trust (IBIT) at $274.4 million, and the ARK 21Shares Bitcoin ETF (ARKB) at $138.7 million. Additionally, the Grayscale Bitcoin Trust (GBTC) saw a rare inflow day, netting $28.2 million, marking only the seventh such instance since its transition to a spot ETF in January.

Thailand has approved its first spot Bitcoin exchange-traded fund (ETF), joining other countries in offering regulated Bitcoin investment options. The Thai Securities and Exchange Commission (SEC) has authorized asset manager One Asset Management (ONEAM) to launch the ONE Bitcoin ETF Fund, set to be available from May 31 to June 6, according to the Bangkok Post.

Under Thai SEC regulations, the ETF will be available only to wealthy and institutional investors. This follows recent amendments allowing Bitcoin ETFs aimed at professional investors. ONEAM will invest the fund in 11 major global Bitcoin funds to ensure liquidity and security. The company states that the ETF provides regulated exposure to Bitcoin, mitigating risks like theft associated with direct ownership.

The team behind StarkNet is initiating plans to bring ZK (zero-knowledge) scaling to Bitcoin, aiming to enhance the network alongside Ethereum.

What's happening?

  • Using OP_CAT: StarkWare plans to implement ZK scaling on Bitcoin by building on the OP_CAT proposal, a potential upgrade that could enable smart contracts and ZK scaling.

  • Simultaneous Settlement: If OP_CAT is approved, StarkWare aims to enable scaling within six months, allowing settlements on both Bitcoin and Ethereum using the same StarkNet network, governance, and tokenomics.

  • Unlocking Potential: StarkWare CEO Eli Ben-Sasson believes this move will help Bitcoin realize its full potential, fostering complex financial instruments and applications. To support this, StarkWare is launching a $1M fund for Bitcoin researchers to explore and demonstrate the benefits of OP_CAT.

This announcement marks StarkWare's first major step in expanding its scaling solutions to Bitcoin. If OP_CAT passes, it could significantly enhance Bitcoin's functionality.

Adoption News

Australia now has its first spot Bitcoin ETF that directly holds BTC. The Monochrome Asset Management's Bitcoin ETF (IBTC) started trading as the Cboe Australia exchange opened. With a management fee of 0.98%, the ETF trades under the ticker IBTC.

This milestone makes IBTC the first fund in the country to offer direct Bitcoin holdings, giving investors straightforward access to BTC. Unlike the two existing spot Bitcoin ETFs in Australia, which offer exposure to spot Bitcoin without directly holding it, Monochrome's ETF fills this gap by actually holding Bitcoin.

A year after its proposal, Ark Labs has announced its commitment to making the Ark concept a reality. The company is developing a Bitcoin layer-two network to meet the rising demand for scalable, low-cost Bitcoin payment solutions.

In an interview with Bitcoin Magazine, Ark Labs CEO Marco Argentieri discussed the protocol's progress since its initial release.

"After months of prototyping and creating proofs-of-concept, we believe Ark is ready for the next stage of development, and we are excited to share this opportunity with the industry," Argentieri said.

In a bold and strategic move, Semler Scientific, a Nasdaq-listed medical device manufacturer, has made headlines with its aggressive investment in Bitcoin. Known for its technology products and services to combat chronic diseases, the company has significantly increased its Bitcoin holdings and plans to invest even more in the digital asset.

This reflects a growing trend among public companies to adopt Bitcoin as a primary treasury asset. Semler Scientific first drew attention in the financial world with its initial purchase of 581 Bitcoins on May 28, valued at around $40 million at the time. This substantial investment signaled the company’s strong confidence in Bitcoin as a valuable asset. Following the purchase, Semler’s stock surged by 30%, highlighting the positive market reaction to the news.

Mining News

Bitdeer, a prominent Bitcoin mining company, has unveiled its groundbreaking "SEAL04" chip as part of its technology roadmap for the Sealminer rig. This chip promises to significantly enhance Bitcoin mining performance while simultaneously minimizing power consumption, reducing costs, and shrinking its environmental impact.

Scheduled for release in the second quarter of 2025, the SEAL04 chip is expected to achieve remarkable energy efficiency, with levels as low as 5 joules per terahash (J/TH). This innovation marks a significant step towards eco-friendly Bitcoin mining practices.

Bitdeer's roadmap not only aims to enhance transparency in the mining industry but also manages miners' expectations regarding technological advancements and equipment delivery. Additionally, it provides valuable data analytics on machine capabilities, inventory, and purchasing behavior.

On June 5, 2024, Riot Platforms, a leading Bitcoin mining company, announced it had acquired a 12% stake in competitor Bitfarms Ltd. This purchase comes during a tumultuous period for Riot, marked by significant market activity and a critical report from short seller Kerrisdale Capital.

Riot Platforms bought 1,460,278 common shares of Bitfarms at an average price of $2.45 per share, totaling around $3.58 million. This acquisition raised Riot’s ownership from 11.63% to 12% of Bitfarms’ outstanding shares.

In their official statement, Riot revealed plans to request a special meeting of Bitfarms’ shareholders to propose new independent directors for the board. Riot has voiced concerns over Bitfarms' corporate governance and believes the current board's performance has been inadequate.

In a significant move for the Bitcoin sector, U.S. Senator Ted Cruz has announced his entry into Bitcoin mining. On June 1, Cruz revealed his purchase of three Bitcoin mining machines and initiation of operations in Iraan, Texas. This step underscores Cruz’s strong backing of the Bitcoin industry and may inspire other politicians to explore the advantages of this digital asset.

Senator Ted Cruz’s venture into Bitcoin mining has garnered considerable attention. By acquiring and operating three Bitcoin miners, Cruz not only endorses the industry but actively participates in it. He shared his news on X, stating, “I’m proud to join the ranks of Texas Bitcoin Miners,” alongside a picture of his mining setup.

Marathon Digital CEO Fred Thiel applauded Cruz’s move, welcoming him to the Bitcoin mining community. Thiel emphasized the crucial role of miners in enhancing network security, stating: “Welcome to the ranks of Bitcoin miners! Thank you for contributing to the security of the Bitcoin network.”

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