Bitcoin
Bitcoin and Ether prices fall after Dencun update
Key Takeaways
- Bitcoin hit another high early last week but ended sharply lower.
- Fees on several Ethereum Layer 2 networks fell sharply last week following the Dencun update, but Ether prices also fell.
- Government prosecutors in the trial against Sam Bankman-Fried recommended up to 50 years in prison for the former FTX CEO.
- Digital asset manager Grayscale has applied for a second bitcoin exchange-traded fund (ETF) to use the BTC ticker.
- This week, analysts are monitoring inflows into bitcoin ETFs, and the March numbers have already surpassed those of January and February.
What happened in the crypto markets last week?
Last week proved to be a rollercoaster for bitcoin (Bitcoin) investors, as the largest cryptocurrency by market capitalization surpassed another all-time high of $73,000 earlier in the week but fell below the $65,000 mark on Sunday following a sell-off. Ethereum dencun update accomplished its intended objective by reducing fees on several Layer 2 networks, but ether (ETH) prices also weakened towards the end of the week.
Elsewhere, prosecutors recommended that former FTX chief executive officer Sam Bankman-Fried receive up to 50 years in prison on charges related to fraud and money laundering. Furthermore, the digital asset manager Investments in shades of gray has filed for a second bitcoin ETF in an effort to offer lower management fees.
Dencun Update Leads to Lower Fees on Ethereum Layer 2 Networks
Following the Dencun update on the Ethereum mainnet on March 13, Ethereum Layer 2 (L2) Protocols have experienced a notable reduction in transaction fees, with some protocols reducing fees by up to 99%. Dencun, hailed as a fundamental upgrade focused on scalability, is being hailed as one of Ethereum’s most significant advancements since The merger.
Prominent L2 protocols have marked an impressive 99% reduction in gas fees post-upgrade, with current fees for some like Starknet dropping to 2.7 cents. Introducing data blobs via EIP-484 during Dencun hard fork improved transaction data processing, offering faster and more cost-effective transactions for L2s.
Prosecutors recommend up to 50 years for former FTX CEO Bankman-Fried
Federal prosecutors are arguing for a substantial sentence of up to 50 years for disgraced cryptocurrency prodigy Sam Bankman-Friedaccording to court documents revealed on Friday. Bankman-Fried, former CEO and co-founder of failed cryptocurrency exchange FTX, was convicted of multiple criminal charges, including wire fraud and money laundering.
The prosecution maintains that his actions justify a sentence commensurate with the scale of his crimes, emphasizing the need for justice in the face of widespread harm and blatant disregard for the law. As the March 28 sentencing date approaches, the severity of the recommended punishment stands in stark contrast to the comparatively lenient request presented by Bankman-Fried’s legal team.
Grayscale Files for New Bitcoin ETF with BTC Ticker
Digital asset manager Grayscale Investments made headlines last Tuesday for archiving for a spin-off of its Grayscale Bitcoin Trust (GBTC), a move that aims to provide investors with more cost-effective exposure to bitcoin.
The spin-off, designed to reduce fees associated with GBTC, comes in response to investor preference for lower-cost alternatives, especially as GBTC’s fees have been comparatively higher than those of its competitors. Grayscale plans to introduce the Grayscale Bitcoin Mini Trust – which will hold a portion of the bitcoin currently held by GBTC – with existing GBTC shareholders receiving Mini Trust shares in return.
Despite bitcoin’s rise to record levels, GBTC has experienced significant capital outflows of more than $11 billion since January, versus inflows into competing ETFs such as BlackRock’s iShares Bitcoin ETF (I BITE) and Fidelity Wise Origin Bitcoin Fund (FBTC). While Grayscale has not yet finalized fees for Mini Trust, the spin-off signals a strategic move toward independent operation for both GBTC and Mini Trust following regulatory approval earlier this year, marking a significant development in the landscape. evolution of investment opportunities in bitcoin. .
What to expect from the markets this week
Bitcoin ETF spot volumes in March are already much higher than in January and February. Additionally, BlackRock has accumulated more than 230,000 bitcoins through its IBIT offering. That said, flows appear to be slowing down, after peaking at more than $1 billion on March 12, according to data from Farside Investors. This week, analysts will be watching to see if flows into these ETFs continue to decline.