Bitcoin's 120% surge without FOMO, Tether's bold move in Bitcoin mining, CoinShares acquires Valkyrie's ETF unit, and Polygon fees skyrocket.
Bitcoin's 120% Surge Lacks Usual Bull Market FOMO

Bitcoin's 120% Surge Lacks Usual Bull Market FOMO

Bitcoin's 120% surge without FOMO, Tether's bold move in Bitcoin mining, CoinShares acquires Valkyrie's ETF unit, and Polygon fees skyrocket.

Last update:
Nov 18, 2023
| Issue

Welcome to the final edition of Datawallet Daily for the week. Here are the key stories that are shaping the markets over the last 24 hours:

Bitcoin's 120% Surge Lacks Usual Bull Market FOMO 

Bitcoin’s current price surge of 120% this year hasn’t sparked the usual bull market FOMO yet. Data from Look Into Bitcoin indicates that recent transactions mainly involve newer bitcoins, suggesting a slow return of short-term speculators. Bitcoin buyers from the 2021 peak are still waiting for profits, with a potential break-even point predicted if BTC crosses $39,000. According to CryptoQuant, this is a crucial threshold for those holding BTC for 18 months to 3 years. 

The overall market is approaching profitability, with just 11.6% of UTXOs currently at a loss. This trend indicates that a major shift in Bitcoin profitability is possibly underway.

Tether Eyes $500M Investment in Bitcoin Mining: Report

Tether is making a significant move into the Bitcoin mining sector, led by Paolo Ardoino, who is poised to become Tether’s CEO. The company has outlined a robust investment plan, earmarking around $500 million to develop mining operations across Uruguay, Paraguay, and El Salvador, aiming to capture 1% of Bitcoin’s total mining power. This strategy aligns with Tether’s recent financial involvement with Northern Data Group, where they extended a $610 million loan. 

Ardoino envisions scaling Tether’s mining capability to 120 MW by the end of this year, with a goal to expand to 450 MW by 2025. The plan also includes the potential development of a 300-MW facility and the deployment of mobile mining units to adapt to fluctuating energy costs.

CoinShares Acquires Rights to Valkyrie’s Crypto ETF Unit

CoinShares, a leading European digital asset manager, has strategically acquired the option to buy Valkyrie Funds, part of U.S.-based Valkyrie Investments. This move includes the Valkyrie Bitcoin Fund, which is awaiting U.S. regulatory green light. Valid until March 2024, this acquisition enables CoinShares to make inroads into the promising U.S. ETF market. 

Jean-Marie Mognetti, CEO of CoinShares, sees this as a chance to navigate the varied global ETF landscape effectively. Both companies have also agreed on a branding deal for future SEC submissions. The finalization of this acquisition depends on the SEC’s nod to Valkyrie’s Bitcoin ETF. CoinShares, managing assets worth over $3.2 billion, remains hopeful about the U.S. crypto ETF sector’s potential.

Polygon Fees Soar 1,000% from Ordinals-inspired Token Frenzy

Polygon, an Ethereum layer-2 platform, saw its gas fees skyrocket by over 1,000%, peaking at $0.10, driven by a massive rush to mint a new token called POLS. This surge, as Polygon’s founder Sandeep Nailwal noted, likely stemmed from the launch of an NFT collection. The POLS token, akin to Bitcoin’s Ordinals, is based on the PRC-20 protocol. 

The minting frenzy led to the use of 102 million MATIC tokens (worth about $86 million) for gas. So far, only a small fraction (8.7%) of POLS’s total supply has been minted. Gas fees on Polygon have since returned to more typical levels. This event is reminiscent of a similar increase in activity and fees on the Bitcoin network following the introduction of the Ordinals protocol.

Other breaking news

Wrapping up

Wrapping up today’s edition, Bitcoin's significant price rise hasn't yet triggered widespread FOMO, indicating potential for further growth. Investment in crypto remains strong, with Tether investing heavily in mining and CoinShares eyeing Valkyrie’s crypto ETF. Concurrently, Polygon experiences a trading frenzy, causing a 1000% spike in fees. See you all next week!