From Glassnode predicting an inflow of $70 billion in crypto to a user losing $3 million in BTC fees, here is a 2-minute breakdown of everything important that happened in crypto today.
Hello again fellow HODLers!
The crypto world never lacks costly mistakes and wild forecasts - and today is no exception. Let's jump right into those stories to keep you informed! ☕️
Here’s what we’re gonna cover today:
- Singapore clamps down on retail crypto trading 🇸🇬
- Execs predict the return of the bull market 🚀
- $70 billion could flow into crypto ETFs 💰
- $3 million Bitcoin transaction fee typo 😱
- El Salvador’s Bitcoin in 8% loss 📉
- South Korea CBDC test run with 100k citizens 🌎
Now let's dive deeper into what exactly happened in each of those news events:
Singapore Restricts Retail Trading 🇸🇬
Singapore is cracking down on retail crypto trading. Starting mid-2024, the new measures will ban crypto platforms from accepting credit card purchases and offering trading incentives.
While framed as safeguards, the clampdown seems to flow from officials’ skepticism that cryptos work poorly as money amid sharp price swings.
So what becomes of crypto trading in the city-state now? Will volume migrate offshore or comply locally? How might the restrictions shape regional adoption trends?
One thing seems certain - officials don’t want consumers drunk on the market swings making financial decisions they could come to regret. For now, at least, Singapore will chaperone its retail crypto development - even if that means less profits during the next price run.
Read the full story!
Bull Market Is Coming 🚀
Australia's big crypto exchanges predict sunnier days ahead. Executives at several Aussie-based exchanges pointed to awakening indicators - prices lifting off recent lows, new coins listing, volumes accelerating as more assets change hands, and most encouragingly, new traders migrating back after months of disappointment.
Optimism brews among company leaders as prices lift off recent lows, supported by fresher faces opening positions. Though of course, principles of prudence apply when staring down unprecedented adoption curves.
Read full details of their forecasts here!
And that brings us to our Word of the Day…
It’s “Bull Market”!
So what is a bull market?
A crypto bull market is when prices are rising and investor sentiment is positive. It's like a bull charging upwards! People start feeling optimistic that prices will keep going up, so more investors buy cryptos. This increases demand, further pushing prices higher.
Soon green candles are everywhere on the crypto charts! New all-time highs are reached for Bitcoin and other major cryptos. There's hype and excitement around blockchain technology and people fear missing out on these hot investments. Initial coin offerings of new cryptos raise tons of money very quickly.
The bull keeps running and running, with only occasional dips along the way. More and more money pours into the crypto space. But this adrenaline-fueled charge can't last forever - eventually, the bull market hits exhaustion and transitions into a bear market, where crypto hibernates for a while before the next bull run.
But how long does a bull market last?
Now back to our daily stories!
$70 Billion Coming to Crypto 💰
Glassnode sees ample dry powder awaiting the cannon shot of SEC approval for a Bitcoin exchange-traded fund (ETF).
The model estimates up to $70 billion could migrate from traditional ETFs into Bitcoin ETFs. The logic flows that investors may shift a share of portfolios into digital assets, pending regulatory green lights. For instance, allocating 10% of stock/bond fund capital into the blockchain.
Considering Bitcoin's limited supply, increased demand could outpace the coins actually available for trading if an ETF unlocks intense latent demand among new adopters.
So while the promise glitters richly, wisdom counsels tempering excitement with prudence. But intense demand could outpace scarce liquid coins for transacting if an ETF launches.
Find out why Glassnode made these predictions!
$3M Bitcoin Transaction Typo 😱
In a costly blunder, a Bitcoin sender lost over $3 million on a single transaction fee this week - a record pricetag mistake.
Maybe they confused Bitcoins for sats? Anyway, someone's phone likely took an express flight out the window shortly after clicking submit.
While transaction fees trend higher, thanks to increased network activity, $3 million makes the average $14 network fee feel like an outright steal.
But alas no miner goodwill refund arrived for this whale-sized oopsie! 😔
Get more background on the mega Bitcoin fee here!
El Salvador’s Bitcoins in Loss 📉
El Salvador's Bitcoin-buying president is now facing an 8% loss on his market dip purchase. Turns out buying the dip generates less excitement when prices keep sinking.
Let’s hope Bitcoin hits his average purchase price soon!
Read the full story!
South Korea’s CBDC Test Run 🌎
South Korea wants 100,000 citizens to test drive their future central bank digital currency payment network. Three months of restricted transactions could guide performance tuning.
But will reality unfold as orderly as the policy planners might hope? I suppose we'll know in 2024!
Read the full story!
And that’s a wrap for today!
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