What Happened in Crypto Today: What Triggered Bitcoin’s New Yearly High?
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What Happened in Crypto Today: What Triggered Bitcoin’s New Yearly High?

4 months ago

From Bitcoin breaching $40K to Base not launching a coin, here is a 2-minute breakdown of everything important that happened in crypto today.

What Happened in Crypto Today: What Triggered Bitcoin’s New Yearly High?


Bitcoin surged through $40,000 over the weekend, hitting highs not seen in 19 months and surprising many who felt regulatory scrutiny would keep crypto prices suppressed. But this time Bitcoin proved resilient despite regulatory pressure.

We're here today to catch you up on the latest crypto developments fueling this rally and other top stories. We will cover:

Now let's dive deeper into today's top crypto headlines!

First up, what triggered Bitcoin's surge back above $40k when many expected prices to remain depressed...

BTC Above $40K 📈

The king of crypto is at it again, reaching $40,000 for the first time in 19 months. The fresh YTD high comes after a 140% surge since January 1. But BTC still lingers roughly 42% below its ATH.
Bullish predictions abound from figures like Markus Thielen who expects $60K by next spring. He draws historical comparisons to past market cycles indicating further room to run. Others at Standard Chartered point to anticipated Bitcoin ETF approvals as potential accelerants for reaching over $100K in 2024. Assuming regulators don't suck the air out of the rally balloon with stringent new policies first! *nervous laughter*

So plenty of obstacles remain on the road back to the former glory days. Lower highs and regulatory turbulence could impede progress if risk appetite falters. Still, strong institutional interest offers hope for smashing through resistance.

But what exactly triggered this $40K breach? Will Bitcoin make further progress or go into correction mode? Read more!

No Base Token! 🚫

Base token airdrop or not?

Mixed signals recently emerged from Coinbase’s executive ranks regarding plans for a native token to power its Base layer-2 network. But CEO Brian Armstrong put rumors to rest - Coinbase currently holds no intentions to launch a proprietary Base token.
Armstrong touts Base’s swift growth since launching despite forgoing a crypto asset to incentivize usage so far. Its layer-2 solution already handles over $500 million in value transfers for 1 million+ users. They grow up so fast! *wipes away single proud tear*

Rather than keeping Base an exclusive domain, Coinbase takes a more collaborative approach - allowing open access to any crypto player.

For now Base cruises forward without a native crypto. But Coinbase leaves doors open should usage patterns evolve to necessitate one.

Meaning? A Base token is a possibility, just not now. Read more!

Extra Cash Incentives 💰

After initially capping available grants, the Arbitrum DAO approved expanding funding for its developer incentive program following community votes. This backstop release opens allocation for 26 additional protocols left out in the first reduced round.

The move releases another $23 million worth of ARB tokens to catalyze more project building on Arbitrum’s layer-2 solution. But it also stirs debate regarding balancing decentralized governance with properly vetting proposals.

Critics argue injecting capital into lesser-qualified entrants risks diluting returns and inflating subpar development. They favor more selectivity in protocol approvals. But supporters fire back saying the more the merrier - pile everyone in and let the users decide what flies and crashes! Democracy in action!

But what does it mean for Arbitrum and its growth? Read more!

And that brings us to our Word of the Day…

It’s ‘DAO’!

So what is a DAO?

A DAO is essentially an organization that's governed in a decentralized manner, without central leadership.

DAOs are built on blockchains, using smart contracts to codify the rules around governance and decision-making. This allows members to propose and vote on ideas that shape the future of the DAO.

By spreading control among members instead of centralizing power, DAOs aim to democratize leadership and make operations more transparent.

DAOs often provide a way for community members to pool funds that are then used to support projects and operations voted on by the group.

Early DAOs struggled with issues like security flaws. However, the model continues evolving to empower decentralized blockchain-based collaboration and funding.

Wanna understand the relation between a DAO and a dApp? Read more!

Now back to our daily stories!

FTX Funds Flow 👀

View post on Twitter

Even after the SBF trial, FTX has managed to constantly stay in the news with its crypto transfers.

The now-bankrupt exchange continues making stealthy token transactions to centralized exchanges as it navigates bankruptcy proceedings. Recent analysis reveals Alameda shuffling $22 million in assets involving tokens like IMX, GMT and SHIB.

So far FTX/Alameda stealthily cycled over half a billion dollars worth of crypto through backchannel OTC deals with liquidators since last October. And more distribution likely coming soon. It's like a neverending cryptocurrency yard sale over there!

A recently approved plan allows selling off up to $200 million in digital assets pending oversight approvals.

But how is FTX’s sale not impacting the markets? And which tokens is it going to sell? Read more!

Take It Real Slow 🐢

UK authority figures caution against hasty moves adopting a central bank digital currency without proper cost/benefit analysis. Lawmakers seek to balance prudence with supporting innovation.

They acknowledge potential advantages but question the necessity and urgency of digitizing the pound. Further evidence proving the need and keeping risks contained stands necessary before any rollout.

If pursuing a digital pound, UK legislators recommend going slow. Measured limits could reduce instability risks, and strict privacy controls remain essential.

Above all else, transparency around intentions and evaluation stands paramount. Understanding goals and guardrails for a digital future keeps policy aligned. Read more!

That wraps up today's top crypto headlines. We'll see you tomorrow with the latest news!

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