Crypto Scoop: Post-Halving BTC Trades At $64,000 and ETH at $3,100

Discussions about Bitcoin halving have dominated the past few weeks. However, even post-halving, activity in the cryptocurrency space has not slowed down. In this edition of the Crypto Scoop, we review the following.

• Price moves of top cryptocurrencies 
• Crypto regulation and adoption across the globe
• Manchester City’s launch of digital collectables
• Block’s proposed bitcoin mining system.  

Price Moves of Top Cryptocurrencies

The cryptocurrency market has been a hotbed of activity, with significant events impacting prices, trading behaviours, and institutional strategies. A major focal point has been the latest Bitcoin halving, which occurred on April 20, 2024. This event, integral to Bitcoin's design, reduces the reward for mining new blocks by half approximately every four years, aiming to mimic the scarcity of gold and control inflation.

As a result of the halving, Bitcoin transaction fees skyrocketed, reaching over $240 per transaction shortly after. The surge in fees followed intense mining activity at block heights 840,000 through 840,004, where miners like Viabtc collected substantial fees totalling millions of dollars. The fees have slightly moderated since then but remain high at $150 compared to pre-halving rates.

In the same period, Bitcoin's price experienced notable fluctuations. After briefly soaring above $66,000, it dipped to around $63,500 during the week, which saw $120 million in outflows from U.S. Bitcoin ETFs on April 24 alone. At the same time, the total cryptocurrency market cap witnessed a sharp decline, losing $100 billion in a single day, underscoring the high volatility in the market.

Amidst these price fluctuations, institutional interest continues to evolve. Morgan Stanley is reportedly considering allowing its brokers to recommend Bitcoin ETFs to clients, signalling a potential increase in mainstream financial involvement with cryptocurrencies. This move could catalyse renewed interest and investment in Bitcoin ETFs.  

Meanwhile, Solana saw a dramatic increase in institutional portfolios, according to Coinshares. CoinShares noted that nearly 14% of survey investors had invested in SOL, a significant bump from Coinshare's January survey, where none of the respondents had invested in the altcoin. 

Tether has also expanded its footprint by launching its USDT stablecoin on the TON blockchain. This initiative bridges Telegram's Web3 ecosystem with stablecoin operations, enhancing interoperability and utility in the crypto space.

Finally, looking ahead, analysts from Standard Chartered have projected a bullish outlook for Bitcoin, predicting a potential rise to $150,000 by year-end. This optimism is grounded in the post-halving reduction of leveraged positions in the market, which may create a more stable environment for Bitcoin's growth.

Recent Developments in Global Cryptocurrency Regulation and Adoption

Nigeria's appointment of Emomotimi Agama as the new chair of the Securities and Exchange Commission (SEC) marks a positive shift towards crypto-friendly policies. Agama's pro-crypto stance is expected to bolster investor confidence and foster economic development in Nigeria's burgeoning digital asset market.

Meanwhile, Hong Kong's Securities & Futures Professionals Association (HKSFPA) has suggested that the city's crypto industry form a self-regulatory body. This recommendation comes amidst concerns that the current focus on strict supervision may hinder the overall growth of the financial market. The proposal includes establishing autonomous bodies with delegated licensing powers, although the Securities and Futures Commission (SFC) would retain oversight on market conduct. This initiative aims to enhance Hong Kong's competitive stance as a global financial hub.

The European Parliament has approved new regulations under the Markets in Crypto-Assets (MiCA) framework, targeting crypto-asset service providers with stringent due diligence requirements. This legislative move aims to mitigate money laundering activities by enhancing identity checks and imposing reporting obligations on suspicious activities within the crypto sector.

According to a recent KPMG survey, 39% of Canadian institutional investors now hold crypto assets, a notable increase from 31% in 2021. The rise in crypto investment is attributed to factors like mounting debt and inflation, prompting institutions to diversify their portfolios into digital assets. The survey indicates a growing confidence among institutions in leveraging cryptocurrencies to hedge against economic instability.

The U.S. Senate is considering the Lummis-Gillibrand Payment Stablecoin Act, which could significantly alter the stablecoin landscape by encouraging banks to issue U.S. dollar-pegged stablecoins. This legislation aims to set a $10 billion issuance cap on non-bank entities and ban unbacked algorithmic stablecoins, potentially giving banks a competitive advantage in the stablecoin market. S&P Global Ratings highlighted the bill's potential to boost U.S. stablecoin adoption by providing regulatory clarity and enhancing settlement security.

A Chainalysis report reveals that Turkey leads the world in stablecoin purchases relative to its GDP, with transactions constituting 4.3% of the national economic output. This high rate of stablecoin usage underscores the growing relevance of digital currencies in emerging markets and their potential to reduce inflation significantly.

Manchester City Partners with Quidd to Launch Digital Collectibles and Exclusive Fan Experiences

Manchester City Football Club has announced a groundbreaking multi-year partnership with Quidd, a subsidiary of Animoca Brands, to introduce a new range of digital collectables tailored for its global fanbase. This collaboration aims to modernise the traditional practice of collecting football cards by transitioning into the digital realm, offering both digital assets and unique real-world experiences.

The digital collectables developed by Quidd will include special edition cards that provide fans with opportunities to unlock exclusive experiences, such as pitch-side seats at team training events. These "money can't buy" experiences are designed to deepen fan engagement and offer them a closer connection to the team in innovative ways.

In a recent blog post, Tom Boyle, Vice President of Global Partnerships Marketing and Operations at City Football Group, expressed enthusiasm about the partnership. Boyle highlighted the initiative's potential to transform how fans interact with sports memorabilia and engage with the club. He noted, "We're excited to help transform the traditional football pastime of cards and collectables in a new digital age alongside Quidd, enabling us to further connect with our fans across the globe."

Block, Formerly Square, Announces Development of Advanced Bitcoin Mining System

Block, the payments company formerly known as Square, has officially announced the development of a comprehensive Bitcoin mining system. This new initiative is part of Block's ongoing efforts to decentralise Bitcoin mining and make it more accessible and efficient for operators worldwide.

In a recent blog post dated April 23, Block revealed that it had completed the development of a cutting-edge three-nanometer chip specifically designed for Bitcoin mining. This technological advancement has paved the way for the introduction of a "full Bitcoin mining system," which the company plans to develop and offer to the market.

The genesis of this project dates back to October 2021, when Block's CEO, Jack Dorsey, first proposed a collaborative approach to decentralise the mining process. Since then, the company has extensively consulted with a diverse range of Bitcoin miners to identify the key challenges they face in their operations.

According to Block, the new system will include a standalone mining chip and a comprehensive mining setup designed by the company. This approach aims to support mining decentralisation and address the needs and challenges identified through their research with active mining operators.