Bitcoin Newsletter Week 26 2024

Weekly update on all things Bitcoin

July 02, 2024

TL;DR

  • BTC is down

  • Bitcoin dominance is down

  • German Government Sells Bitcoin, Pressure on Prices

  • US Government Transfers Seized Bitcoin to Coinbase

  • Mt. Gox to Begin Repayments in July

  • Strike Launches Bitcoin Payments in the UK

  • Coinbase Sues SEC and FDIC for Regulatory Overreach

  • Dormant Bitcoin Wallet Awakens After 14 Years

  • Bitdeer Expands Mining Capacity with Ohio Partnership

  • CleanSpark Acquires GRIID in $155M Stock Deal

  • Marathon Mines Kaspa to Diversify Revenue

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Bitcoin Price

Crypto is down slightly this week, with BTC being down 6.5% and ETH down 4.5%:

Bitcoin dominance has been decreasing over the week, starting at around 51.7%, topping at 51.94% and ending the week around 50.63%. Capital often starts to flow into ETH and other altcoins as the price is increasing for more risk-on assets as well, causing a lower Bitcoin dominance as we have started to see over the course of multiple weeks.

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 shows resilience with varying trends across major assets. Recent price movements indicate cautious optimism, with Ethereum and Bitcoin experiencing distinct patterns amidst global economic shifts.

Bitcoin Analysis: Bitcoin closed at $61,723.00 USD on June 28, 2024, with mixed technical signals across short, medium, and long-term outlooks. The short-term trend remains uncertain, testing resistance at $62,000 while facing downside risks below $57,500. Medium to long-term support lies between $51,000 and $71,000, with volatility influenced by broader market dynamics.

Expected Trading Ranges: Bitcoin's short-term trading range is between $57,500 and $62,000. Medium-term forecasts suggest potential fluctuations from $51,000 to $71,000, depending on market sentiment and economic factors.

Market Outlook: Bitcoin faces mixed signals, testing resistance at $62,000 while defending support around $57,500. Market sentiment remains cautiously optimistic, bolstered by institutional interest and evolving regulatory support. Investors should monitor key technical levels closely for potential breakout opportunities above resistance levels.

BTC/ETH ratio has seen a slight decrease.

In the last 6 days, the BTC to ETH exchange rate has shown fluctuations. It started at 18.48 ETH on June 23, 2024, then decreased to 17.83 ETH as of June 28, 2024. This reflects a downward trend overall, with minor fluctuations day-to-day. Specifically, there was a notable drop from June 24 to June 28, where the rate declined from 17.97 ETH to 17.83 ETH. Overall, the rate has decreased by 0.65% over this period.

Financial News

The German government has sold 900 Bitcoin, worth over $54 million, through transactions to Coinbase and Kraken, among others. This move, part of ongoing interactions with various wallets, including an unknown entity "139Po," has raised concerns about increased selling pressure on Bitcoin.

Despite these sales, the government still holds a substantial 46,359 BTC, potentially influencing market dynamics, particularly amid Bitcoin's current downtrend nearing the $60,000 mark. Analysts suggest these actions could further impact Bitcoin's price, which has already seen an 11% decline this month.

The U.S. government transferred 3,940 Bitcoin to Coinbase Prime on June 26, according to Arkham Intelligence. These Bitcoin were seized from convicted drug dealer Banmeet Singh during his January 2024 trial. Singh, arrested in London in 2019 and extradited to the U.S. in 2023, ran a narcotics network from 2012 to 2017, leading to the surrender of over 8,100 Bitcoin, valued at $150 million.

The transfer has sparked fears of market sell-offs, compounded by similar actions from other governments and the Mt. Gox bankruptcy estate. The U.S. currently holds around 214,000 Bitcoin, worth about $13 billion.

Mt. Gox, the defunct cryptocurrency exchange that lost 850,000 Bitcoin in 2014, will start repaying users in Bitcoin and Bitcoin Cash in July 2024. The exchange’s rehabilitation trustee announced that repayments will be processed in collaboration with cryptocurrency exchanges, asking users for patience as the order of payments will depend on each exchange.

Approximately 127,000 creditors are owed over $9.4 billion in Bitcoin. This long-awaited restitution follows the transfer of 141,686 BTC worth $9.62 billion in May as part of the repayment process. Creditors have been waiting over a decade to recover their funds following Mt. Gox’s collapse.

Adoption News

Bitcoin payments app Strike has expanded to the UK, enabling fast, low-cost transactions via the Bitcoin Lightning Network. This move follows successful rollouts in Europe and Africa, bringing Strike’s global presence to over 100 countries. The app, founded by Jack Mallers, allows users to buy, sell, send, withdraw, and make global payments with Bitcoin.

It emphasizes quick and inexpensive transactions, leveraging the Lightning Network's bi-directional payment channels.The UK launch offers seamless Bitcoin transactions, including buying directly with GBP deposits, automatic conversions, and global remittances. Strike ensures regulatory compliance with robust onboarding processes and risk assessments for new users.

Coinbase has sued the SEC and FDIC, accusing them of denying information requests and coordinating efforts to restrict the crypto industry's access to banking services. Filed on June 27th in Washington D.C., the lawsuits claim that the agencies failed to comply with Coinbase's Freedom of Information Act (FOIA) requests, which sought to reveal regulatory attempts to limit banking for crypto firms.

Coinbase asserts that regulators are deliberately trying to sever Bitcoin and crypto companies from vital financial lifelines, comparing this to the Obama-era "Operation Choke Point." The exchange contends that the SEC and FDIC are exceeding their mandates and violating transparency laws, aiming to expose this alleged regulatory overreach.

A Bitcoin wallet from the Satoshi era, inactive since 2010, recently transferred 50 BTC to Binance. This wallet, belonging to a miner who earned the BTC as a reward in July 2010 when Bitcoin was valued at $0.05, signifies early mining activity when the reward per block was 50 BTC. The miner’s initial $25 in BTC is now worth approximately $3 million, reflecting Bitcoin's dramatic price increase over the years.

The transaction underscores the rarity of mining a single block in 2010, given today's high network hashrates and increased mining difficulty. The transfer of Bitcoin to centralized exchanges like Binance is often seen as a bearish signal, as it usually implies selling. Recently, several dormant wallets from the early Bitcoin days have become active, transferring or selling their holdings.

Mining News

Bitdeer Technologies Group has partnered with the Monroe County Port Authority to secure an additional 570 megawatts (MW) of power at Hannibal Industrial Park in Clarington, Ohio, boosting its global capacity to 2.5 gigawatts (GW). The initial phase, offering 266 MW, will be operational by Q3 2025, with the remaining 304 MW under review for regional transmission planning.

This expansion enhances Bitdeer’s bitcoin mining and high-performance computing capabilities, leveraging the site's existing infrastructure. Bitdeer’s strategic move supports its growth ambitions in the accelerated computing and technology sector.

Bitcoin miner CleanSpark has agreed to acquire GRIID Infrastructure in an all-stock transaction valued at $155 million, approved by both companies' boards. CleanSpark's CEO, Zach Bradford, highlighted the strategic benefits, noting the expansion in Tennessee mirroring their success in Georgia. Following the announcement, GRIID's shares fell over 50%, while CleanSpark's rose nearly 4%.

The deal includes CleanSpark assuming GRIID’s debt and a $5 million bridge loan. Expected to close in Q3, CleanSpark aims to exceed 100MW capacity in Tennessee by year-end, growing to 400MW by 2026. The companies also entered a hosting agreement for 20MW of power capacity.

Marathon Digital Holdings has mined 93 million Kaspa (KAS) tokens since September 2023, valued at approximately $15 million. The company has brought 30 petahash worth of machines online for Kaspa mining, with another 30 petahash expected by Q3. This diversification aims to supplement their Bitcoin revenue, leveraging the GHOSTDAG protocol for faster transactions and more block rewards.

Marathon's Chief Growth Officer, Adam Swick, emphasized the strategic revenue diversification from Bitcoin. With Kaspa's price up 50% this year, Marathon's multi-coin mining approach ensures resilient income amid the competitive crypto mining landscape.

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