Podcast Summary
Bull market in crypto, Bitcoin hits $36,500: Bitcoin surged past resistance to reach $36,500, marking a new two-year high. Bull market continues, Ethereum gas fees driving focus to roll-ups and layer twos.
We are currently experiencing a bull market in crypto, specifically in Bitcoin, which has seen significant price increases and large green candles on the charts. The markets are alive, and even NFTs are experiencing double-digit price movements. Everyone listening to this podcast has gained more money this week than they had previously. The bear market is officially over, and the excitement is palpable. Additionally, there are several notable developments in the crypto space, including potential filings for new ETFs and questions about BlackRock and Elizabeth Warren's past statements about crypto. Sponsored by Linea, the Bankless Nation is invited to embark on a crypto voyage to explore a new zk EVM layer 2 and earn Linea XP points. Bitcoin started the week at $34,600 and quickly surged past resistance to reach $38,000 before settling at $36,500. This is the highest Bitcoin has been in over two years, and significant milestones, such as the removal of the FTX liquidation and the 3 Arrows Capital liquidation, have been achieved. The focus is now on migrating to roll-ups and layer twos due to rising Ethereum gas fees. Overall, the crypto markets are thriving, and the future looks bright.
Ethereum Outperforms Bitcoin, Market Cap Surges: Ethereum surges past $2,000, outperforming Bitcoin. Market cap adds $100B, surpassing $1.45T, with potential for $12-15T this cycle. Ethereum ETF filing by BlackRock fuels institutional interest.
The crypto market is showing signs of recovery, with Ethereum (ETH) leading the charge above the $2,000 mark and the total crypto market cap accelerating at an impressive rate. The Ethereum to Bitcoin (BTC) ratio, which indicates how much ETH is appreciating relative to BTC, has also seen a significant green candle, suggesting that ETH is outperforming BTC. The market cap has added over $100 billion in the last week, surpassing the $1.45 trillion mark. Additionally, institutional interest in Ethereum through an ETF filing by BlackRock could be contributing to the ratio's improvement. Overall, the crypto market is showing positive signs and may be on the path to recovery, with some analysts predicting a potential market cap of $12-15 trillion in this cycle.
Crypto projects with real-world catalysts see price increases: Illuvium, Link, IMX, and Polygon experienced significant price hikes due to partnerships and business developments, highlighting the potential impact of real-world catalysts on the crypto market.
Several crypto projects have seen significant price increases this week due to catalysts rather than memes. Among these projects, Illuvium, a crypto-native game, saw a 66% price increase after its release in the Epic Games store. Link, with a 33% price increase, has seen demand from investors looking to buy it through the Grayscale Link Trust, which trades at a premium. IMX also saw a 33% price increase following an announcement of a partnership with Ubisoft. Polygon, which has more zkEVM chains than Optimism, has been making strong business development strides and saw a 22% price increase. These projects' price movements demonstrate the potential impact of real-world developments and partnerships on the crypto market.
Crypto Market Surge and TradFi Yield Farms: In this volatile market, crypto is up, NFTs are rebounding, and TradFi money market funds are offering high yields, attracting capital and potentially fueling further growth
The crypto market is experiencing a surge, with Polygon up 22% and Coinbase up 20%. NFTs, specifically JPEGs, are also showing signs of life with a resurgence in value. Meanwhile, in TradFi (Traditional Finance), money market funds are dominating the leaderboard as the new yield farms, offering a 5% yield. The Fed's interest rate hikes have led to a significant shift in capital, with large amounts flowing into money market funds. Contrary to expectations, this high-interest-rate environment has not resulted in financial Armageddon, but rather, assets are appreciating. The crypto market, stocks, and other assets continue to grow, and the money market yield farms may provide additional fuel for market growth once the Fed pivots.
Bitcoin's price history before and after halvenings: Bitcoin's price tends to remain flat before halvenings but experiences significant surges post-event, as shown on log scale charts. The crypto community anticipates a similar trend for the upcoming halvening.
Bitcoin's price history before each halvening shows a flat trend on the approach, but a significant surge in price after the event. This trend is more pronounced on the log scale chart and is yet to be fully realized by the mainstream market. The crypto native community, however, is already excited about the potential price increase. Other topics to look forward to include BlackRock's potential Ethereum ETF filing, NEAR becoming an Ethereum layer 2, and Kraken's possible layer 2 implementation. The discussion also touched on Kraken's mission to accelerate crypto adoption and simplify token management with the help of TOKU and Arbitrum's role in scaling Ethereum for web 3 applications. Overall, the conversation emphasized the potential for significant growth in the crypto space, but also highlighted the importance of understanding the technology and navigating the legal and regulatory landscape.
BlackRock moves towards Ethereum ETFs: BlackRock's registration of an Ethereum trust in Delaware could lead to a spot Ethereum ETF, potentially bringing billions into the crypto market. Near is also progressing towards becoming a Layer 2 solution on Ethereum, further growing the ecosystem.
Significant developments are unfolding in the Ethereum and cryptocurrency space, with major players like BlackRock making moves towards Ethereum Exchange-Traded Funds (ETFs). The registration of an Ishares Ethereum Trust in Delaware, a BlackRock product, is seen as the first step towards filing for a spot Ethereum ETF. This follows a similar process for their Bitcoin trust, which later filed for an ETF application with the SEC. If approved, this could bring billions of dollars into the crypto market. Additionally, Near is on its way to becoming a Layer 2 solution on Ethereum, specifically a Validium solution, as announced by Sandeep of Polygon. This further demonstrates the ongoing growth and progress in the Ethereum ecosystem. While the exact timeline for these events is uncertain, they represent significant potential for the crypto market and are worth keeping an eye on.
NEAR Transitions to Become a Validium Layer 2 on Ethereum: NEAR becomes a data availability platform on Ethereum, focusing on interoperability and collaboration with Polygon, while Ethereum serves as its settlement layer. This move allows NEAR to compete against other layer 2 solutions and enables all WASM chains to connect to an aggregator layer for unified liquidity within the Polygon ecosystem.
NEAR is transitioning to become a Validium layer 2 on Ethereum, collaborating with Polygon but not using their zk EVM. NEAR is effectively becoming a data availability platform on Ethereum, while Ethereum serves as its settlement layer. This move allows NEAR to compete against other layer 2 solutions like Optimism, Arbitrum, and Celestia, focusing on data availability rather than settlement. Additionally, NEAR and Polygon are building zkWASM, enabling all WASM chains to become validiums and connect to an aggregator layer for unified liquidity and interoperability within the Polygon ecosystem. The rumor of Kraken building its own layer 2 blockchain network, possibly with Polygon, adds to the bullish sentiment in the crypto space. Overall, these developments underscore the growing importance of interoperability and collaboration in the blockchain industry.
Misleading Report on Crypto Funding Terrorism: False information led to calls for anti-crypto measures, underscoring the need for fact-checking and regulatory oversight in the crypto industry.
The Wall Street Journal and Elizabeth Warren have been involved in a controversy surrounding a misleading report about crypto funding terrorism. The report, which was later debunked, claimed that crypto was used to fund Hamas for $90 million to $130 million. Warren and other members of Congress called for anti-crypto measures based on this false information. However, the crypto community rallied to correct the record, and it was revealed that the report was largely inaccurate. The Wall Street Journal issued a retraction, but the damage had already been done. This incident highlights the importance of fact-checking and the potential consequences of spreading misinformation. Additionally, Jump Capital's involvement with Terra Luna before the collapse is under investigation, and the SEC's lack of regulation in the crypto space continues to be a topic of discussion.
Response to Elizabeth Warren's Letter and Market Downturn in Crypto: The crypto community quickly fact-checked and refuted misinformation about crypto's link to Hamas, while major NFT marketplace OpenSea laid off staff and saw a market downturn. Some see this as a sign of maturity, with more sophisticated buyers using advanced tools, while OpenSea responds with OpenSea Pro.
The crypto industry and its community are quick to fact-check and call out misinformation, as evidenced by the response to Elizabeth Warren's letter regarding crypto and Hamas. Forbes picked up the story, highlighting the history of misinformation leading to significant geopolitical events and giving the crypto side a voice. Meanwhile, OpenSea, a major NFT marketplace, let go of half its staff and saw a significant drop in valuation due to the downturn in the NFT market. However, some see this as a sign of maturity in the NFT buying community, with more sophisticated buyers turning to Blur for advanced tools. OpenSea is responding with OpenSea Pro, aimed at attracting top-funnel consumers and casual collectors. The crypto industry remains determined to uncover the truth and adapt to market changes.
OpenSea integrates Socket.tech for seamless token bridging and swapping: OpenSea integrates Socket.tech to simplify token transfers between layer 2 chains and swap assets, enhancing user experience and unlocking new opportunities for liquidity and composability.
OpenSea, the leading NFT marketplace, is making strides to enhance user experience by integrating solutions like Socket.tech, a bridge and swap aggregator. This integration aims to simplify the process of bridging tokens between different layer 2 chains and swapping them for desired assets. OpenSea Pro, the platform's advanced trading solution, is also integrating Socket.tech, along with Coinbase Wallet. The ultimate goal is to make complex processes, such as bridging and swapping, seamless and obfuscated from the user's perspective. This development could potentially solve the current UX challenges in the NFT space and unlock new opportunities for liquidity and composability. Jump Crypto, the crypto division of Jump Capital, has been actively engaging with various ecosystems due to the potential for yield and arbitrage opportunities. The integration of Socket.tech is a testament to its importance in improving the overall user experience in the NFT market.
SEC probes Jump Crypto for potential role in $40B crypto fraud: The SEC is investigating Jump Crypto for potential involvement in a $40B crypto fraud, involving UST and Luna tokens, and for shady dealings with Do Kwon. Jump Crypto sold obtained tokens for a profit, while retail investors suffered losses.
The SEC is investigating Jump Crypto for potential involvement in a $40 billion fraudulent scheme involving UST and Luna tokens, which were allegedly obtained through manipulative market actions. The investigation centers around a deal made between Jump Crypto and Do Kwon in May 2021, when UST was at risk of losing its peg. In exchange for helping restore the peg, Jump Crypto was granted favorable terms, including the removal of vesting conditions and the transfer of over 61 million Luna tokens at a steep discount. Jump Crypto later sold these tokens for a profit of $1.28 billion, while many retail investors suffered significant losses. The SEC is alleging that this behavior was shady and contributed to the eventual collapse of Terra Luna. Kavan Karya, the CEO of Jump Crypto, invoked his right to self-incrimination multiple times during questioning by the SEC. The proposed US bill to outlaw government use of China-made blockchains and Tether's USDT adds another layer of complexity to the ongoing regulatory landscape for the crypto industry.
Impact of Balkanization on Centralized Crypto Elements: The decentralized nature of crypto assets like Bitcoin and Ethereum may thrive despite geopolitical fragmentation, while centralized exchanges and stablecoins face challenges due to balkanization of the Internet and financial systems.
The balkanization of the Internet and financial systems is a growing trend, and it will impact centralized elements of crypto, particularly exchanges and stablecoins. However, decentralized crypto native assets, like Bitcoin and Ethereum, are likely to thrive as they exist on a neutral, global network that transcends nation-state boundaries. The SEC's difficulty in hiring crypto experts due to a requirement that they sell their crypto holdings before joining the agency highlights the regulatory challenges in this space and the potential for conflicted motivations among regulators. Overall, the decentralized nature of crypto may prove to be a significant advantage in the face of increasing geopolitical fragmentation.
Bankless unbundles their show format: Bankless now has two shows: Weekly Roll Up for news and markets, and Bankless Takes for opinions and takes. Stay calm and avoid overtrading during a bull market, and remember crypto is risky.
The Bankless team is changing up their show format by unbundling the Weekly Roll Up into two separate shows: the Weekly Roll Up for news and markets, and Bankless Takes for raw opinions and takes of the week. The goal is to make each show more manageable and under 35 minutes in length. Additionally, they discussed the importance of staying calm and not overtrading during a bull market, emphasizing the need to set a plan and avoid getting "drunk on the hype." The team also disclosed their investments in Socket and Polygon, and reminded listeners that crypto is a risky investment.
