Crypto

• Greetings from a sunny Copenhagen, where it feels like summer is just around the corner, and the warm weather seems to be spreading to the crypto market as well.
• Bitcoin has risen by approximately 4.5%, reaching $72,250, and Ethereum has seen an increase of nearly 4%, up to $3,620 during the same timeframe.
• We would like to reiterate our optimistic outlook from last week, as highlighted in both Crypto Crisp and Crypto Moves #22.

• Crypto market is driven by narrative in the short term, and capital favors new narratives. Ethereum restaking is the brand new narrative and biggest investment opportunity in this cycle.
• Restaking and Liquid Restaking will bring upward pressure to ETH, and tokens of Liquid Restaking protocols will benefit from the growing restaking market.
• DeFi use cases related to Liquid Restaked Tokens introduce increased financial leverage to the Ethereum DeFi ecosystem, which also entails heightened risks.

• We are swiftly approaching the fourth Bitcoin halving, which is expected to take place at block number 840,000.
• Currently, the network has reached a block height of approximately 837,700.
• Bitcoin experiences a halving event every 210,000 blocks.

• As we predicted in the last few weeks’ Crypto Crisp, the crypto market has been relatively stable in recent weeks.
• However, things are beginning to shift.
• During a speech in San Francisco on Friday, Federal Reserve Chairman Jerome Powell mentioned that robust economic growth in the US allows Federal Reserve officials to take their time with interest rate cuts.

• We are witnessing an unexpected showdown in the crypto world.
• On one side stands Larry Fink, co-founder and CEO of BlackRock, the world’s largest asset manager.
• On the opposite side is Gary Gensler, the chair of the U.S. Securities and Exchange Commission (SEC).

• Last Wednesday, on March 13th, Ethereum launched its biggest upgrade in the past 18 months, marking a significant milestone since the Ethereum Merge on September 15, 2022.
• Dubbed Dencun or Cancun-Deneb, this upgrade introduced the eagerly awaited Proto-Danksharding feature, aimed at dramatically enhancing the scalability of Ethereum’s Layer 2, also known as rollups, and slashing the costs associated with rollup transactions, while making them less volatile.
• Proto-Danksharding brought to the table so-called ‘blobs’.

• Recently, we have voiced our concerns about the excessive use of leverage in the crypto market.
• Just last week, traders were facing annual rates of up to 150% to maintain long positions in Bitcoin on the perpetual market.
• By the end of the week, it became evident that this approach was unsustainable, leading to a significant market correction and extensive liquidations in the futures market.

• It has been exactly eighteen months since Ethereum made the big switch from Proof-of-Work to Proof-of-Stake, an event widely known as the Merge.
• In simple terms, after the Merge, the responsibility for verifying transactions and proposing new blocks on the Ethereum network shifted from miners to holders, provided they choose to become stakers.
• To maintain the blockchain as stakers, holders lock up their Ether in the network.

• There has been a renewed wave of optimism towards web3 in light of recent events, including the approval of the long-awaited spot Bitcoin ETF; and the surge in market activity in the early months of 2024.
• On the regulatory front, we have seen the conclusion of several high-profile court cases and lawsuits, including some of the charges involving Ripple and Binance.
• Beyond the results of the rulings (which many argue are in favour/support of web3), the resolution of these cases in itself has provided greater clarity and stability to the ecosystem.

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This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• This week is off to a great start.
• Bitcoin surged past $70,000, and Ethereum exceeded $4,000 today, marking a new all-time high for Bitcoin and Ethereum’s first breach of this level in over two years.
• At the office, there is a running joke that the crypto bull run has made me overly confident, leading my colleagues to secretly hope for a downturn.