Bitcoin News
A Understated, Yet Positive, Week for Bitcoin (BTC)
Published
1 year agoon
Table Of Contents
While it may not appear so at first glance, the past week was an important and overall positive one for Bitcoin (BTC). The following is a brief look at a few of the reasons why and what such developments might mean for the world's largest digital asset moving forward.
iSHARES Bitcoin Trust
Right off the bat, the news which has everyone talking and debating, surrounds none other than the world's largest asset manager – Blackrock. This week, Blackrock officially filed with the SEC to launch what it called the ‘iSHARES Bitcoin Trust'.
Although this is technically filed as a trust, there is one major difference between it and the already existing GBTC trust on offer by Grayscale – redemptions. By offering the ability for redemptions, the trust will essentially function as a spot-ETF, making it quite appealing to institutional investors, pension funds, etc.
While the idea of a Bitcoin trust or ETF may irk a subset of the Bitcoin market, as such products represent a departure from the original ethos of the digital asset, it would be foolish to think that this day would not come. Now that it is here, a Bitcoin trust operating like a spot-ETF, on offer by the world's largest asset manager, has the potential to kickstart true mainstream adoption and provide an easier-to-understand on-ramp for those looking to dip their toes in the crypto-waters.
However, before getting excited about this product, be sure to remember that it has not yet been approved by the SEC. In fact, if history repeated itself, the SEC will most likely delay the process for the full 240 days before issuing a denial. With that being said, Blackrock is no ordinary filer; the company has a nearly flawless record of approvals for its applications, coming in at a reported 575-1.
Bitkey to Integrate with Coinbase and Cash App
On a positive note, Bitcoin enthusiasts will soon have the ability to purchase and trade BTC through either Coinbase or Cash App directly within the self-custodial wallet ‘Bitkey'.
Notably, Bitkey is a self-custodial wallet that has been in development for some time now by Jack Dorsey's Block. While beta-testing of these features is expected to commence in the coming weeks, full launch in countries such as the USA, Canada, Australia, and more, is expected by year's end.
Although this may seem like a trivial development at first, it is an important one that will allow Coinbase and Cash App to onboard the next tranche of industry participants in the coming years. Importantly, it will do so in a safe manner that remains in line with the original ethos of Bitcoin, which promotes a trustless financial system in which participants custody their actual assets.
Presidential Talking Points
Another sign pointing to major adoption in the coming years surrounds the growing crop of Presidential candidates. As it stands, there are now at least four major candidates that have publically voiced their support for Bitcoin. These include,
- Robert F. Kennedy Jr.
- Ron DeSantis
- Francis X. Suarez
- Vivek Ramaswamy
The important thing to remember here is that, even if none of the above candidates are successful in their respective campaigns, Bitcoin will/has become a major talking point. It will continually be presented to the public at large, bringing awareness of what it is and how it can benefit society. There is no doubt that along the way, negative news will arise surrounding the energy use associated with proof-of-work (PoW) networks. Now is the time for the broader public to learn about the protocol and for supporters in the public eye to dispel many of the myths surrounding BTC.
Performance and Metrics
So we have the worlds largest asset manager attempting to launch a Bitcoin Trust, increased integration of self-custodial solutions into some of the most popular on-ramp platforms in use today, and BTC becoming a talking point across a growing crop of Presidential candidates. Looking back over the past week, how has this news affected BTC from a performance standpoint?
Price
While BTC is up 2.6% on the day, its price remains suppressed from where it stood one week ago at roughly $26,500.
Despite being down on the week, BTC has proved fairly resilient in the wake of the SEC lawsuits, which have rocked the digital asset market as a whole. Yes, it is down a few percent, but this is a relatively modest decline for an asset that is traditionally volatile in the face of controversy.
Hashrate
Meanwhile, the strength and security of the Bitcoin network has never been better, with the total hashrate of the network reaching new all-time highs this past week. Coming in at 388,090,876 TH/s, there is a clear belief in the future of Bitcoin as miners continue doubling down on their efforts in what is an increasingly competitive environment.
Lightning Adoption
While nearing weeks end, there may yet be one piece of positive news yet to be announced for Bitcoin – Binance integrating the Lightning Network. We already know that the world's largest exchange intends to integrate the Lightning network, and it now appears as though the exchange may be doing just that.
Various entities have tweeted signs that massive payment channels are being opened on Lightning Network, with major exchanges like Kraken and Okex already connecting with them. Despite the lack of an official announcement from Binance at this point, the development, at the very least, points to continued and growing adoption of the popular Bitcoin scaling solution.
Final Word
Looking back at the past week, it may appear as though Bitcoin was floundering at first glance if looking solely at price. Looking beyond the FUD due to the SEC lawsuits, though, one will see various important developments that seem to all be aligning for an explosive 2024 for BTC as each is leading up to the anticipated halving event.
Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology.