PRESS RELEASE. Dubai, April 12, 2024: The Global Blockchain Show is pleased to announce Global Market of Artification (GMA) as its diamond sponsor at the upcoming two-day conference, set to take place at the Grand Hyatt, Dubai. Artworks by renowned masters like Rubens and Rembrandt will be featured at the event. With the inclusion of […]
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Elvira Nabiullina, head of the Russian central bank, has stated that the mass launch of the digital ruble will take five to seven years. This appears to contradict recent suggestions by the chairman of the State Duma Committee on the Financial Market that the launch will begin next year. No Decision Before 2025 Elvira Nabiullina, […]
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India’s central bank has announced that it will enable non-bank payment system operators to offer central bank digital currency (CBDC) wallets. Noting that “necessary changes will be made to the system to facilitate this,” the Reserve Bank of India (RBI) said the initiative is expected “to enhance access and expand choices available to users.” Non-Bank […]
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As the Federal Reserve maintains a cautious stance on interest rate cuts, Bitcoin’s emergence as a ‘digital gold’ has garnered increased investor attention, setting the stage for heightened adoption expectations, Coinbase said in its latest market research on April 5.
Institutional Research Analyst David Han believes Bitcoin’s growing status as digital gold will attract new investors looking for a hedge against macroeconomic uncertainty.
According to the report, this perspective has gained further prominence over the past day against the backdrop of the Fed’s recent communications, which have led to a broader market recalibration, affecting digital and traditional assets alike.
The Federal Reserve’s recent communications suggest a measured approach to future interest rate adjustments, a stance that has coincidentally seen gold outshine other asset classes. This development, Coinbase asserts, may cast Bitcoin in a favorable light among investors seeking alternatives amid inflationary concerns and interest rate uncertainties.
Han said the market’s hawkish reaction to the Fed’s recent commentary highlights a significant shift from the optimism at the start of the year, reflecting deeper uncertainties across financial landscapes.
Within this framework, Bitcoin’s resilience and potential for adoption come into sharper focus, suggesting a pathway through macroeconomic turbulence.
According to Han, the introduction of spot bitcoin ETFs in the US market represents a pivotal development, enhancing the flagship crypto’s appeal by broadening access and potentially stabilizing price volatility through increased institutional participation.
This milestone, coupled with Bitcoin’s comparison to gold in times of economic uncertainty, positions it uniquely as a safe haven for investors navigating the current climate of inflation concerns and geopolitical risks.
Han highlights the strategic significance of Bitcoin’s growing acceptance and the implications for market volatility and investment strategies.
The enhanced liquidity and investor base attributed to the Bitcoin ETFs marks a transformative shift in the crypto market’s structure, contrasting with previous cycles and suggesting a more mature phase of market evolution.
The broader crypto and DeFi sectors also reflect these complex trends, with developments like Maker’s Endgame initiative signaling rapid innovation yet inviting scrutiny over governance and risk. The ongoing dialogue within the DeFi community, especially concerning decentralized stablecoins, highlights the intricate balance between innovation, market stability, and regulatory engagement.
As Bitcoin navigates the implications of the Fed’s policies, its role and acceptance in the financial ecosystem are poised for significant scrutiny and potential expansion. The intricate balance of macroeconomic factors, investor sentiment, and technological advancements will continue to shape the landscape for Bitcoin and the wider crypto market.
In the first quarter of 2024, more than $336 million in digital assets were stolen from decentralized finance platforms across 61 incidents of hacking and fraud. During this period, criminals made off with digital assets valued at $144.48 million in two major hacking incidents. In contrast, centralized finance platforms reported no incidents of hacking or […]
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Bitcoin miner Marathon Digital Holdings has crafted a block that prominently displays the letter “M” by carefully arranging transactions and fee rates within its mining pool. This novel approach introduces a creative twist to block creation in the blockchain realm. Despite this innovative step, Marathon has made it clear that it currently does not offer […]
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The Central Bank of Russia and the Russian treasury are considering testing using the Russian CBDC, the digital ruble, to complete budget settlements. The tests would involve using this CBDC to make payments to businesses and citizens and receiving payments from these in CBDC, to ensure the targeted use of these funds. Russian Digital Ruble […]
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The Bitcoin (BTC) market has been on a wild ride recently, hitting a new all-time high (ATH) before experiencing notable volatility that resulted in an 8% drop to the $65,500 level on Friday.
Meanwhile, Marathon Digital, one of the largest US-based Bitcoin mining companies, is preparing to acquire more power infrastructure and streamline operations to meet the challenges posed by a reduction in revenue due to the upcoming April halving event.
According to a Bloomberg report, Marathon Digital plans to acquire additional power infrastructure and expand its mining capacity to keep costs low and maintain profitability.
By optimizing operations and scaling up, Marathon aims to mitigate the impact of the impending revenue drop and secure wider margins in the post-halving landscape.
Marathon Digital recently announced an agreement to purchase a 200-megawatt data center in Garden City, Texas, for over $87 million. This acquisition marks the company’s second major investment in power infrastructure after it acquired multiple sites for $179 million earlier this year.
By increasing its ownership of mining capacity infrastructure to 53%, up from a meager 3% in the previous year, Marathon is positioning itself for greater operational efficiency and cost-effectiveness, Bloomberg notes.
However, post-halving, the Bitcoin mining industry is expected to undergo significant changes, with some miners facing profitability challenges and potential exits.
Marathon Digital’s CEO, Fred Thiel, highlights the impact of revenue reduction, estimating that the industry’s average break-even point will rise from around $23,000 per Bitcoin to approximately $43,000. Thiel stated:
Post halving, there will be some miners to lose profitability, maybe challenged, or maybe looking for an exit as their revenues will drop because of the Bitcoin rewarded will drop. The simple math is, if the industry average break-even point was around $23,000 per Bitcoin, it will now go up to around $43,000.
It is worth noting that this does not necessarily mean that Bitcoin’s price will fall to $43,000 from its current trading price of $69,300. The breakeven price refers to the price at which miners like Marathon Digital can cover their operating costs and achieve profitability. It is not directly correlated to the market price of Bitcoin.
As of the time of writing, BTC is trading at $69,300 and is on the verge of reclaiming the significant milestone of $70,000. The cryptocurrency experienced a notable spike in volatility during the early hours of Friday’s trading session but has since recovered, mitigating its losses from 8% down to 2.5%.
Featured image from Shutterstock, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Galaxy Digital CEO Michael Novogratz says he doesn’t believe the price of bitcoin will fall back down to the $50K-$55K level. “I think that’s the new floor unless something dramatic happens,” he described. “This has been a wild ride of an asset,” he added, noting that we’re in price discovery mode and if you look […]
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