CBX Weekly Newsletter // 1 April 2020
- Bitcoin outlook before the halving
- Binance will acquire CoinMarketCap.com
- USD Stablecoins Are Surging
- CBX will list Toilet Paper Token (TPT)
Bitcoin outlook before the halving
Bitcoin has recovered from the lows recorded this month, falling below $4K for the first time in almost a year. Even so, prices are still down 24 percent on a month-to-date basis.
If that loss is held through Tuesday’s close (00:00 UTC), it would be the biggest monthly percentage decline since November 2018. Back then, the cryptocurrency had tanked by 37 percent, according to CoinDesk’s Bitcoin Price Index. It’s also the second straight month in the red for bitcoin and the crypto market.
The dollar index has gained nearly 7 percent this month, according to data provided by the crypto derivatives research firm Skew. Gold is also reporting a month-to-date gain of over 6 percent.
Bitcoin Halving
While the Fed has recently announced an unlimited easing program that will, bitcoin is set to cut miner’s reward halving in May by 50 percent.
For now, the community seems to believe that the price of Bitcoin will probably go higher in the future due to the upcoming halving event. However, for the time being, Bitcoin could potentially retest the lows of this month before moving pass $7,000. Although a move above $7K with strong volume could the bearish view.
Binance will acquire CoinMarketCap.com
Binance is in the final stages of talks to acquire CoinMarketCap, according to news source: The Block. The crypto exchange is looking to pay as much as $400 million for the deal.
The cash-and-stock deal is expected to be announced this week. When completed, that would make it one of the largest acquisitions in the crypto space.
CoinMarketCap is the most popular crypto data aggregator, drawing 207.2 million visitors in the last six months, according to SimilarWeb. Binance, on the other hand, drew 113.8 million visitors in the last six months. CoinMarketCap’s traffic is 80% more than that of Binance’s.
Overall, other largest crypto deals to date include Circle’s acquisition of Poloniex for $400 million; Bitstamp’s acquisition by Belgium-based investment firm NXMH for around $400 million; Coinbase’s acquisition of Earn.com for $120 million; and Kraken’s acquisition of Crypto Facilities for $100 million in 2019, among others.
USD Stablecoins Are Surging
While the crypto markets have been insulated from the markets at large for a long time, this is no longer the case now that public blockchains have effectively become rails for the U.S. dollar in the form of dollar-backed stablecoins. Dollars on the blockchain represent the third-largest asset in crypto after bitcoin (BTC) and ether (ETH), ahead of XRP (XRP) and bitcoin cash (BCH). In terms of transaction volume, they are even encroaching on bitcoin itself.
And since they are backed by dollars, they are both affected by global changes in demand for the U.S. currency as well as the monetary policy of the Federal Reserve.
Since bitcoin fell from its $9,000 range all the way below $4,000 before consolidating around $5,000 in mid-March, stablecoins as a group have seen net inflows of around $2 billion, a 33 percent increase. This represents the largest surge in demand ever, in line with the dollar’s demand surge in traditional markets.
Most of these inflows went to tether with +1.55 billion since the start of the year, but USDC and BUSD also gained +170m and +150m respectively.
CBX will list Toilet Paper Token (TPT)
In order to celebrate one of the most anticipated projects in the Blockchain space finally coming to CBX!
We will be Airdropping tokens to all of our users!
For more info, please visit CoinMarketCap.com
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