BlackRock will become the largest holder of Bitcoin, according to leading analysts
BlackRock, the global investment giant, is heading towards overtaking MicroStrategy as the largest holder of Bitcoin, according to the forecasts of leading analysts.
This prediction, which is based on current Bitcoin acquisition rates by BlackRock, is what analyst Eric Balchunas based on.
Although Balchunas expressed some doubts about the speed of this development, he acknowledged that BlackRock's rise in the Bitcoin world is inevitable.
He stated:
Good point. I doubt it will happen that quickly but it will happen.
Currently, the landscape of corporate Bitcoin holdings is dominated by a number of major players.
Leading this group is MicroStrategy, Inc. (MSTR), which owns about 189,150 bitcoins, worth approximately $8.12 billion.
Followed by Marathon Digital Holdings (MARA) and Tesla, Inc. (TSLA), which each own 13,726 and 9,720 bitcoins, respectively.
Other notable names in this space include Coinbase Global (COIN), Hot 8 Mining Corp (HUT), and Block, Inc. (SQ).
In a remarkable move, BlackRock recently launched a Bitcoin ETF, a move praised by CEO Larry Fink, who described it as the first step in the technological revolution in financial markets.
The BlackRock Spot Bitcoin ETF, which began trading on Nasdaq, acquired approximately 11,439 bitcoins worth nearly $500 million within just two days of its launch.
This fund is not only an important milestone for BlackRock, but also reflects the growing interest and acceptance of cryptocurrencies among traditional financial institutions.
Fink's vision extends beyond just ETFs, as he focuses on the potential to tokenize assets in the real world, a concept that is gaining traction among those interested in blockchain technology.
OpenSea is preparing a platform 2.0 upgrade for NFT trackers Solana and Ordinals
OpenSea is one of the leading marketplaces for Non-Fungible Tokens (NFT).
The OpenSea platform is currently developing a major update known as OpenSea 2.0.
This update was announced by Devin Finzer, the company's CEO, and aims to improve the user experience and better differentiate NFT categories as their different uses evolve.
Currently, OpenSea and other similar platforms offer NFTs in a standardized way, whether those tokens represent games or tickets to events.
Finzer stated:
We aim to provide a marketplace interface that can be better customized to suit every type of use case.
Within the upcoming OpenSea 2.0 updates, the company is working on displaying and arranging NFTs in the form of a calendar, providing a more personalized experience.
In response to the growing popularity of platforms like Blur and Tensor, which offer professional trading experiences, OpenSea's updates aim to make it easier for users to access its professional trading platform.
The improved interface will allow users to seamlessly switch between a unified view and a more advanced view.
Additionally, OpenSea has improved its ability to detect counterfeit NFT collections and malicious URLs, addressing some of the security concerns prevalent in the industry.
While Finzer did not comment on the elimination of mandatory royalties for NFT creators, it also did not reveal whether OpenSea plans to reintroduce the mandatory royalties program in the future.
In terms of emerging trends, Finzer pointed to Solana Network's increasing use of NFTs and the growing popularity of Ordinals, similar to NFTs on the Bitcoin blockchain.
Despite these trends, Finzer remains optimistic about Ethereum being the blockchain of choice for NFTs, especially with the improvements in transaction cost and speed facilitated by layer-2 networks.
Finzer doesn't see Bitcoin, even with the recent ETF craze, as a major NFT option for the future.
He commented:
I really think that the types of applications you can build on Bitcoin will likely be limited to technical use cases rather than more diverse things.
Global sales of non-fungible tokens (NFTs), which represent unique ownership of assets on the blockchain, saw a significant 63% decline to $8.7 billion last year, according to data from CryptoSlam.
This decline comes despite a notable increase in volume, which reached $918 million between October and November.
In contrast, Bitcoin, the leader in the cryptocurrency market, witnessed a significant rise of approximately 160% in 2023.
This decline represents a marked contrast to the bullish cryptocurrency market in 2021 when multi-million dollar NFT sales played a crucial role.
Non-fungible tokens (NFTs), made popular by groups like Bored Ape Yacht Club, were seen as a fun and accessible way for everyday consumers to engage with cryptocurrencies, and also as a status symbol for those who invested large sums in unique digital assets.
Then, the social media platform X (formerly Twitter) recently stopped supporting NFT profile pictures.
Analysis reveals a typical match between Bitcoin and Ethereum in bull markets
A recent study conducted by Coinbase Research and Glassnode shows that Bitcoin (BTC) and Ethereum (ETH) are currently following in the footsteps of previous years, seeing significant price increases of 500% and 1000%, respectively.
In this study, the similarities between the current cryptocurrency market cycle and the period between 2018 and 2022, which was known for significant price increases in both cryptocurrencies, are highlighted in this study.
The report reviews some periodic metrics, such as net unrealized profit/loss and earnings presentation, that reflect past patterns.
According to these metrics, it seems that the current market does not show the same dynamics that existed during the market peak in 2023, which indicates that the market is likely to continue the upswing.
Despite speculation about the potential positive impact of the Bitcoin halving on the market, Coinbase research remains conservative.
The study notes that with only three Bitcoin mining reward fork events in history, it is not possible to say for certain that there is a consistent pattern, especially since these events are affected by factors such as global liquidity metrics.
The report draws attention to the expected Bitcoin fork in April 2024, which will reduce the block reward from 6.25 to 3.125 BTC, according to current mining rates.
As for the Ethereum market, the currency witnessed an increase of more than 90% during the year 2023, driven by multiple factors, including the success of the “Chapella” upgrade and increased expectations for the approval of spot ETFs for cryptocurrencies.
These developments encouraged investors and contributed to enhancing the value of Ethereum.
Attention is currently focused on Ethereum's upcoming upgrade, known as "Cancun," which is expected to improve the scalability and security of the network, and make Layer 2 transactions more cost-efficient.
If implemented successfully, the Cancun upgrade will likely significantly increase the number of transactions processed across the Ethereum network.
According to Coinbase's analysis, Bitcoin and Ethereum have gone through two cycles involving both bull and bear markets, with the current cycle, which began in 2022, closely mirroring the patterns observed in previous cycles.
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