Key Takeaways

• Bitcoin experienced its fourth halving on Friday, with the amount of bitcoin created approximately every 10 minutes falling to 3,125.
• After the halving, the price of bitcoin stabilized; however, fees on the network have increased in connection with the launch of a new protocol for issuing tokens.
• The fees associated with Grayscale’s second spot bitcoin ETF product have been released and will make the Bitcoin Mini Trust the cheapest offering on the market.
• A jury in New York found a man guilty of fraud and market manipulation in a $110 million scheme on the Mango Markets DeFi platform.
• This week, analysts continue to monitor the after-effects of the bitcoin halving, including the long-term effects of a drop in block subsidy on the overall security of the network.

The fourth bitcoin (Bitcoin) halving event occurred on Friday night without much immediate effect on its price, although on Monday the cryptocurrency was trading higher above $66,000. A sudden increase in transaction fees on the Bitcoin network was observed around the halving and this was credited to the launch of Runes, a new metaprotocol for issuing tokens on top of Bitcoin. blockchain.

Outside of halving, the low fees associated with Grayscale’s new bitcoin spot exchange-traded fund (ETF) offering, the Bitcoin Mini Trust, were released. Furthermore, the crypto world experienced the first conviction in a case involving market manipulation.

Bitcoin network transaction fees increase after halving

O bitcoin halving The event was highly anticipated and closely followed by investors and miners.
Halvings are significant because they halve the rate at which new bitcoins are generated and rewarded to bitcoin miners approximately every 10 minutes. This most recent halving reduced the block reward to 3,125 bitcoins per block.

Although there were no immediate fluctuations in bitcoin prices, there was a sudden increase in transaction fees on the network. The halved block was mined by the ViaBTC mining pool. Notably, the miner earned over 40 bitcoins in subsidies and block fees from this single block – significantly more than the average pre-halving reward. This was due to a massive increase in transaction fees, possibly due to increased demand to be included in this historic block and new development.

The Runes protocol, launched around the time of the halving, led to higher fees on the Bitcoin network because it introduced a system in which participants could mint digital tokens directly on the Bitcoin blockchain. This new capability generated intense competition among users to register unique asset names first, causing them to pay increasingly higher transaction fees to prioritize their transactions on the Bitcoin network.

The day after the halving, Bitcoin’s average transaction fee reached an all-time high, according to Kaiko Research, a rate that is more than seven times the previous day’s rate and double the previous record.

Grayscale’s BTC will be the cheapest spot Bitcoin ETF

Grayscale Digital Asset Manager Previously filed for an alternative to your current high-cost spot bitcoin ETF known as Bitcoin Trust in Grayscale (GBTC). The new offer will have an administration fee of just 0.15%, positioning it as the most affordable option on the market, according to a recent document. The existing GBTC, known for its 1.5% fee, will transition 10% of its assets to the new BTC Mini Trust as part of this strategic move. This transition will also include an automatic issuance and distribution of BTC trust shares to existing GBTC shareholders.

This initiative is designed to more competitively align Grayscale’s offerings with other recently approved bitcoin ETFs with lower fees. According to data from Blockworks, the lowest-cost spot bitcoin ETF available is the Franklin Bitcoin ETF (EZBC), which has a rate of 0.19%. Additionally, for existing GBTC shareholders, this spin-off will not trigger a taxable event, meaning they will not face tax capital gains to transfer your holdings to the new fund.

As of now, GBTC holds approximately $19.6 billion in assets, making it the largest spot bitcoin ETF on the market. GBTC’s closest competitor is BlackRock’s iShares Bitcoin Trust (IBIT), which has assets totaling just over $17.5 billion.

Crypto’s First Market Manipulation Conviction

On Thursday, Avraham Eisenberg was found guilty by a jury on three counts of fraud and market manipulation in a $110 million scheme on the Mango Markets platform. The accusations stem from when Eisenberg engaged in trades that artificially inflated the value of Mango Markets’ native token, MNGO, and its associated futures contracts. He then took advantage of these overvalued resources futures as collateral to withdraw substantial amounts of other cryptocurrencies from the platform.

According to US Attorney Damian Williams, this was the first conviction for market manipulation in the crypto area. “If you engage in fraudulent activity, whether in the cryptocurrency space or through other forms of market manipulation, you will be held accountable for your ill-gotten gains,” said Timothy, FBI Assistant Executive Director of Crime, Cyber, Response and Services. . Langan.

Eisenberg now faces up to 20 years in prison, signaling a significant precedent for the application of U.S. laws in decentralized finance (DeFi) ecosystem.

What to expect from the markets this week

hThis week, crypto market watchers are still tracking the lingering effects of the bitcoin halving. While price is obviously a key area of ​​attention, the potential for meta tiers such as Runes and Ordinals, to help provide long-term security for the Bitcoin network through increased demand for block space will also be an important phenomenon to watch. Additionally, it is possible that higher fees at the base tier will promote greater adoption of various Layer 2 networks like Lightning Network and side chains.

While a CoinShares report indicates that some miners may switch to artificial intelligence (AI) as halving leads to lower revenues, there are a number of factors that could more than likely compensate for lost earnings caused by halving. Shares of bitcoin miners such as Riot Platforms (REBELLION), Cabana8 (CABIN) and Digital Marathon (MARA) traded substantially higher on Monday.

It remains to be seen whether the fourth halving will lead to another big bull run – as was the case with previous halvings; reports from Deutsche Bank and JPMorgan said the event may already be priced into the market.

Fuente