Crypto Monday: Weekly market prep
1. Positive signals for Bitcoin
Microsoft has recently filed with the US SEC to consider investing in Bitcoin. While the Microsoft board ultimately dismissed the proposal as "unnecessary," it leaves room for future reconsideration, especially if large corporations decide to enter the Bitcoin market, which would be a bullish signal.
Presto analysts noted that US debt-to-GDP has risen from 40% to 100% over the past 25 years, with projections reaching 124% to 200% in the next 10-30 years. The upcoming US election in November could trigger a "Minsky Moment"—a sudden market collapse driven by excessive financial instability—leading bond markets to demand higher compensation for deficit financing. Such an event could make Bitcoin attractive to investors. Meanwhile, the 2024 Bitcoin Act, a bill to establish a Strategic Bitcoin Reserve, could help stabilize US debt and support the global financial system.
10x Research highlighted that the yield on 10-year US Treasury bonds rose from 3.6% in September to 4.2% (+60 basis points), raising inflation concerns. While the market needs time to absorb these negative factors, Bitcoin could resume an upward trend. Since the Bitcoin spot ETF launch, stablecoin inflows have reached $36 billion, indicating strong liquidity.
2. Kraken set to launchit blockchain
Kraken is planning to launch its blockchain, Ink, in early 2024 to support DeFi trading, lending, and staking services. Founder Andrew Koller mentioned that Ink's technology will be similar to Coinbase's Base. The testnet is expected to launch this year, with the mainnet opening to retail and institutional users in Q1 2025. Kraken will offer applications on Ink through Kraken Wallet, initially featuring over 12 DeFi apps, with potential future expansion to include real-world assets and advanced lending services.
3. ETH and SOL trends
On October 23, the Ethereum Foundation sold 100 ETH for 252,491 DAI. So far in 2024, they have sold 4,066 ETH at an average price of $2,760, totaling $11.22 million. This includes 1,250 ETH sold in September ($3.07 million) and 300 ETH in October ($759,000), with small weekly sales continuing over the past two months.
Meanwhile, Pump Fun announced the launch of a new advanced trading terminal, Pump Advanced, and hinted at an upcoming token launch on Twitter Spaces. Pump Advanced offers features like charts, top holder stats, advanced filters, and real-time threads, aiming to attract heavy users. As of August, Pump Fun’s total revenue had reached $100 million.
4. Stripe acquires Bridge for $1.1 billion
TechCrunch founder Michael Arrington reported that financial technology company Stripe has acquired stablecoin platform Bridge for $1.1 billion, marking Stripe's largest and biggest acquisition in the crypto sector. Bridge had previously raised $58 million from investors and was valued at $200 million. Founded by Sean Yu and Zach Abrams, Bridge provides tools for companies to accept stablecoin payments. Both founders have notable experience—Yu sold Venmo competitor Evenly to Block in 2013, and Abrams was a senior executive at Coinbase.
Disclaimer
The development and market cap of stablecoins mentioned in the above content is speculative and based on market analysis at the time of writing and should not be interpreted as guaranteed outcomes. Market conditions can fluctuate widely and unpredictably due to numerous factors such as regulatory changes, market demand, and global economic developments.
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