The Crypto Compass Issue #60

Hello readers,

Last week we were at $56k. This week we are at $68k (at the time this newsletter was written). Entering a new cycle of the bull market before the halving is a first. This unprecedented surge in Bitcoin's value not only underscores the robust momentum driving the cryptocurrency market but also hints at the broader investor enthusiasm as we edge closer to the much-anticipated halving event. If you have been following our newsletter, we have just flipped our banner at the bottom to caption: “Are you ready for Bitcoin at $96,000”?

Bitcoin Hits ATH Against Euro and Pound

Bitcoin has yet to breach its all-time high of over $69,000, recorded in November 2021, despite a recent surge above $65,000. This movement comes against the backdrop of a strengthening U.S. Dollar Index, which has seen a 2.7% increase through January and February 2023, and a steady decline in U.S. inflation rates. Grayscale analysts suggest that the prevailing high U.S. interest rates, while potentially bolstering the dollar's value, could pose challenges for Bitcoin's price trajectory.

The recent spike in Bitcoin's price has triggered significant market activity, notably liquidating over $80 million in Bitcoin positions, predominantly shorts, due to increased volatility. This has contributed to a broader trend of over $160 million in short position liquidations across the crypto market, underscoring the high-stakes environment of leveraged trading. Despite these pressures, the overall crypto market, as represented by the GM 30 Index, has seen a 4.22% increase, indicating a resilient optimism among investors.

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CryptoPunk Sale Signals Bull Market Optimism

A CryptoPunk NFT has recently sold for a staggering 4,500 ether, equivalent to over $16 million, marking the second-largest sale in the collection's history. This significant transaction comes as Bitcoin approaches its all-time high, reigniting interest in high-value NFT sales. CryptoPunk 3100, known for its rare alien punk attribute, previously sold for just $2,127 in 2017 and later for $7.58 million in 2021, demonstrating the exponential growth in value for these digital assets.

Major Banks Embrace Bitcoin ETFs Amid Growing Investor Interest

Bank of America's Merrill Lynch and Wells Fargo's brokerage unit are now offering access to Bitcoin ETFs, marking a significant shift in the traditional finance sector's approach to cryptocurrency investments. This move reflects the rising demand from investors to gain exposure to Bitcoin, with both banks facilitating access for select wealth management clients upon request. Following a week of record inflows into spot Bitcoin ETFs in the US, highlighted by BlackRock's ETF attracting $612 million, Merrill Lynch and Wells Fargo's decision underscores the growing mainstream acceptance of Bitcoin as an investment asset.

Happenings of the week

• Bitcoin about to flip silver

• Magic Eden is now the #1 NFT marketplace in the world

• Bitcoin ordinals daily volume flips Ethereum NFTs

Ark Invest and 21Shares Enhance Transparency with Chainlink Integration

Ark Invest and 21Shares are setting a new standard in the ETF industry by leveraging Chainlink's Proof of Reserve platform for their ARK 21Shares Bitcoin ETF (ARKB), enhancing transparency and security for investors. This collaboration aims to provide unparalleled insight into ARKB's holdings, as stated by 21Shares co-founder Ophelia Snyder. Following Bitwise's lead in revealing its digital wallet address for its Bitcoin ETF, Ark/21Shares becomes the second issuer to bring holdings data onchain, marking a significant move towards greater transparency in the cryptocurrency ETF space.

Stay tuned for more updates next week! If you haven't yet, hit that subscribe button to ensure you never miss an issue. Found value in this edition? Please consider sharing it with your friends, colleagues, and fellow crypto enthusiasts. Together, let's navigate the world of crypto with clarity and insight!

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