🏈 Forget About Superbowl, BTC Halving Will be the Real Show

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Happy Monday dear subscribers! In today’s Newsletter, The impacts of BTC Halving and a new milestone for the ETFs

In today's bulletin, we are covering:

I hope you had a great weekend, we had some really nice movements, but the daily close Yesterday was a bit ugly. Correction on the minor timeframes but holding all the key support ranges and looking strong overall. Let's focus for example on the Mid Caps Index:

SNX cooling down a bit here. Setting alerts on the $3,32 support. Might look for entries there:


Bitcoin Halving 2024: Analyzing Potential Impacts

In mid-April 2024, Bitcoin will undergo its next halving event, reducing miner rewards per block. While historically seen as bullish, Grayscale analysts caution against simplistic analyses.

They note that price appreciation post-halving isn't guaranteed, attributing it to broader macroeconomic conditions. The impending halving presents a challenge for miners, who heavily rely on block rewards, especially amid rising mining difficulty.

  • Bitcoin halving in mid-April 2024 reduces miner rewards per block.

  • Historical bullish sentiment around halving events.

  • Grayscale analysts caution against simplistic price appreciation post-halving, citing macroeconomic factors.

  • Challenge for miners due to decreased block rewards and rising mining difficulty.

  • Miners prepare by selling coins and raising capital ($750 million equity raise by Marathon Digital).

  • Transaction fees from Ordinals activity offer a significant revenue opportunity, constituting about 20% of miner revenue.

  • Bob Bodily from Bioniq notes a renaissance on Bitcoin with massive demand for block space driven by Ordinals.

To prepare, miners have sold off coins and raised capital, including a planned $750 million equity raise by Marathon Digital.

However, a silver lining exists: transaction fees from Ordinals activity, contributing significantly to miner revenue, offer a promising opportunity amidst the evolving landscape.

Milestone Reached: Spot Bitcoin ETFs Hit $10 Billion in AUM

The first 20 trading sessions of recently launched spot Bitcoin ETFs saw them amass $10 billion in AUM.

Notable funds include BlackRock’s iShares Bitcoin Trust ($4 billion AUM) and Fidelity’s Wise Origin Bitcoin Fund ($3.4 billion AUM).

Despite Grayscale Bitcoin Trust (GBTC) outflows reaching $6.3 billion, the ETFs are showing strength, with expectations of increased flows in the coming months.

  • Spot Bitcoin ETFs reached $10 billion AUM in first 20 trading sessions.

  • Net flows for nine ETFs totaled $2.7 billion on Jan. 9, led by BlackRock and Fidelity.

  • GBTC saw $6.3 billion outflows in the past 30 days.

  • Bitcoin's price consolidated above technical support in January.

  • Bitcoin's role as a risk-off asset is increasing relative to gold.

  • Expectations of increased Bitcoin ETF flows in the coming months.

  • SEC approved Bitcoin ETF applications from various firms on Jan. 10.

Bitcoin's price consolidation above technical support in January, coupled with its bullish trend compared to gold, supports a positive outlook, particularly amid the macroeconomic environment where Bitcoin remains antifragile.

ORDISWAP

This week we have ORDISWAP under the spotlight, “The Uniswap of Bitcoin”.

The project focuses on bringing dynamic AMM (Automatic Market Makers) infrastructure to BRC-20.

BRC-20 refers to a token standard on the Bitcoin blockchain, similar to ERC-20 on the Ethereum one. It enables developers to create and transfer fungible tokens using the Ordinals protocol. It’s one of the narratives picking up steam this cycle.

The BRC-20 standard was created less than a year ago and is already counting more than 14,000 assets with a global valuation over $2.5 billion.

And the rate keeps steadily growing as can be seen in the chart below.

Bitcoin is the most secure blockchain in the world, however, it wasn't originally designed for DeFi activities.

For that reason, doing something as simple as a swap wasn’t really easy, and that’s where Ordiswap comes bringing a solution. It integrates with Bitcoin’s layer-1 (L1), providing users with a trustless, secure, and transparent environment.

And it uses a winning UI formula that’s already widely used and accepted to ensure user adoption. [Connect wallet] → [Select tokens & amount] [Swap]

So far a really simple concept, the product is already working with 15 BRC-20 tokens listed, and it's compatible with Unisat, Metamask, Wallet Connect, OKX and Phantom (recently) wallets so far. 

Besides the swap, the project has other features in development:

  1. Cross-chain Bridge: (already functional)

Enables Interoperability via 2-way bridge between EVM and Bitcoin layers.

  1. Stablecoin: (In development)

    "Bitcoin Standard Dollar" $BTSD is an overcollateralized stablecoin backed by a mix of $BTC and $ORDS (BRC-20) tokens. Will allow the trading denominated in $USD in the platform.

  2. OrdiLayer: (coming soon)
    Bitcoin L2 EVM compatible, with $ORDS serving as the gas and node delegation token, enabling a myriad of opportunities for token value accrual.

  1. Fundation: (recently announced)
    The branch of the project that is looking to invest in protocols aligned with BTC L1 development. Aiming to empower teams to expand "BTCFI"  and protocol-driven growth.

  1. OrdiPad: (recently announced)

A launchpad that will bring investing opportunities for BRC-20 projects to $ORDS and $REOS holders

Besides the $BTSD Stablecoin, the project has TWO main tokens: $ORDS & $REOS

The native utility token of Ordiswap is $ORDS with a 1 Billion supply and ~28.5% in circulation. According to the scheduled emission, the 100% should be unlocked around April 2025.

Currently can be used to provide liquidity, pay and earn from fees, gas, staking, governance, stablecoin collateral and looks like it will allow participation in BRC-20 IDOs.

The other token is $REOS, a BRC-20 token designed for rewards. Allows dual-network staking, earning rewards on Bitcoin's layer-1 while staking on Ethereum.  Also Incentivizes liquidity provision for Bitcoin-native pairs on the DEX. 

$REOS has a total supply of 1 Million tokens; the emission is linear and should have all the supply circulating 2 years after the TGE.

This is as far as I will get! 

If you want to investigate more about the project, use their official site or twitter. Have a great Valentine’s week! 

Wall Street origin

Wall Street, the most iconic and important market in the world, continues to reach new all time highs (ATH) and is on everyone's lips, but do we really know its origin? Why is it called that? Let's take a look at some of its history.

Yes, Wall Street is indeed a street. In fact, it's an 8-block-long street located in Lower Manhattan (USA). It is home to the two most important stock exchanges in the world, the NYSE and NASDAQ (although their offices are located elsewhere)

We must go back to the 17th century and the Dutch West India Company (WIC) to begin reconstructing its history. This company sailed the Atlantic Ocean to control trade on the important Hudson River (New York). It was a private company with shareholders, and at that time it was common for such companies to hire soldiers and generals, cannons, and even armies to take over a place and establish an empire. In the Indian Ocean, a similar company operated, known as the Dutch East India Company (VOC).

The WIC built a colony called New Amsterdam on one of the islands at the mouth of the Hudson River. The colony was threatened by local Native Americans and repeatedly attacked by the English, who eventually captured it in 1664. It was the English who changed its name to New York.

To protect themselves from these attacks, the Dutch had built a wall on that street (if you visit, you'll see the symbolic wooden cobblestones on the ground, installed in 2009 as shown below). Although it was torn down in 1699, its remnants gave rise to the name of the most famous street in the world: Wall Street.

Likewise, perhaps everyone knows the famous Wall Street Bull, also called 'Charging Bull', which is an iconic bronze sculpture located in Bowling Green, a public park situated at the southern tip of Manhattan, New York, near the New York Stock Exchange (NYSE).

The bull sculpture, which stands 3.4 meters tall and is 4.9 meters long, depicts an angry and defiant bull. It was created by Italian sculptor Arturo Di Modica and was installed without permission in the early hours of December 15, 1989. It was an act of defiance and rebellion against the New York Stock Exchange, which was in a deep recession at the time.

Since then, the sculpture has become the symbol of Wall Street and its financial power, and a tourist attraction for those visiting the area.

But there is also a sculpture of a girl facing the bull, which was installed in 2017 on the eve of International Women's Day. Created by Uruguayan sculptor Kristen Visbal, it aimed to represent women in the face of Wall Street's macho culture and gender inequality. The sculpture was named 'Fearless Girl'.

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