IMPENDING SCARCITY

Navigating Scarcity in the Approaching Bitcoin Crunch

Bitcoin Halving 2024: The upcoming Bitcoin halving in April will reduce the amount of daily new bitcoins from 900 to 450 BTC. This drop could lead to a potential shortage as the annual mined supply drops to approximately 114,750 BTC. This event, coupled with the growing presence of Exchange-Traded Funds (ETFs), is creating major changes in the Bitcoin market.

Institutional Bitcoin Buys: MicroStrategy, led by CEO Michael Saylor, keeps adding to its Bitcoin stash, now at 193,000 bitcoins. Countries like El Salvador are also adding Bitcoin to their reserves. This shows that big companies and governments are getting more interested in Bitcoin.

ETFs Reshaping Bitcoin Supply: Bitcoin ETFs hold a total of around 740,000 bitcoins. Big moves out of the Grayscale Bitcoin Trust (GBTC) are spreading holdings across other ETFs. ETFs are changing how Bitcoin's mined supply is distributed and this could lead to a shortage, especially after the halving.

💰 MicroStrategy, led by Michael Saylor, bought an additional 3,000 BTC. The purchase came out to approximately $155 million and brought MSTR’s total holdings to 193,000 BTC. Acquired at an average price of $51,813 each, the company's bitcoin stash is now worth $10 billion, with an unrealized profit of $3.8 billion. MSTR shares rose 1.1% in pre-market trading.

🚀 Bitcoin blasts through $57,000, its highest in 2 years. However, analysts warn of a potential pullback to $48,000 based on on-chain data and technical analysis.

💼 Carson Group, a $30 billion RIA platform, has approved four spot Bitcoin ETFs for its clients. The ETFs are from BlackRock, Fidelity, Bitwise, and Franklin. The selection criteria included significant asset growth and trading volume. Carson Group emphasized cost-effectiveness and the firms' expertise in digital asset research as key factors in their decision.

⚖️ The Texas Blockchain Council and Riot Platforms won a court ruling against U.S. energy officials. The ruling temporarily stops invasive data collection from Bitcoin miners. The order aims to maintain the status quo until March 25 and prevent the survey from being forced on miners.

📈 In 2023, Bitcoin's payment volumes nearly doubled those of Fedwire. There were 367 million Bitcoin transactions compared to Fedwire's 193 million. This data highlights Bitcoin's impressive scaling capabilities, as it continues to grow as a competitive base money. Despite concerns about scaling solutions, Bitcoin is outperforming traditional settlement networks like Fedwire, indicating its potential for broader adoption as a global currency.

💼 Fairshake, a crypto-friendly Super PAC, gets $4.9M from Winklevoss twins. In total, Fairshake has received over $85 million in support. Key backers include Andreessen Horowitz and leading crypto firms. The PAC also opposed ant-Bitcoin California Senate Candidate Katie Porter.

📉 Bitcoin ETF inflows significantly slowed last Wednesday, with 10 spot funds attracting just 500 BTC. This was the lowest level of inflow since February 6. This marks a sharp drop from previous weeks, where net inflows averaged about 7,000 bitcoins per day.

Nigeria's Bitcoin Crackdown: Stabilizing the Naira

Naira Crisis: Nigeria has blocked access to major cryptocurrency exchanges. The ban was placed on exchanges like Binance, Coinbase, and Kraken in an effort to stabilize the naira, which has hit record lows against the US Dollar. The Nigerian Communications Commission (NCC) ordered telecoms to restrict access to these platforms, as they were disrupting market prices for the naira.

Economic Superpower: Nigeria is Africa’s largest economy, with a $477.38 billion GDP and the 32nd largest economy in the world. The fact that Bitcoin and crypto are causing currency issues in a country highlight the idea of a speculative attack.

Government Stance: Bayo Onanuga, adviser to the President of Nigeria, expressed the need to ban cryptocurrencies to prevent further devaluation of the naira. The government aims to regain control over currency valuation and prevent platforms like Binance from influencing the naira's value.

Economic Challenges: The naira has lost over 70% of its value since the central bank lifted its dollar peg in June.

Do you think a large government will try to seize Bitcoin from users over the next 5 years?

👍 Yes - 53.1%

👎 No - 46.9%

👍 Yes - “It’s most likely going to be the U.S. since it has the most to lose from moving off a dollar reserve.” - Nathan

👎 No - “No, not if they want a mutiny. They are the largest holders of BTC.” - Nick

👎 No - “Criminal behavior of the selected incumbents will be resisted by all” - Sam

👎 No - “I can't see any government randomly stealing from people though Russia or China might.” - Mira

⚽️ Bulgarian football club Botev Plovdiv partners with JAN3 to integrate Bitcoin Lightning and Liquid Wallet, aiming to educate fans on using Bitcoin for transactions. The collaboration includes the AQUA Wallet with "Botev Mode" for easier payments and potential discounts or cashback for Bitcoin purchases.

📈 Max Keiser predicts Bitcoin could surpass $500,000 amid a potential massive US stock market crash, citing a dangerous concentration in top stocks. ARK Invest suggests Bitcoin could reach $2.3 million with a significant shift in global asset allocations, highlighting its disruptive potential and resilience as a financial staple.

⚡ Braiins, a leading mining pool, introduces Lightning payouts for instant, fee-free Bitcoin rewards. This pioneering move enhances payment efficiency, supports Lightning Network adoption, and sets a precedent for the mining industry's scalability and usability.

🚨 BitForex, a Bitcoin exchange, abruptly ceased operations and blocked users after $57 million in funds were mysteriously withdrawn, sparking fears of an exit scam. Customers are left unable to access their accounts or funds, with the exchange's hot wallets emptied and trading volume at zero. The exchange's silence and lack of communication have intensified concerns among its users and the broader crypto community.

Former President Donald Trump highlights Bitcoin's rising popularity. He notes a growing trend of people embracing and wanting to pay with BTC.

50 - The amount of days left until the 2024 Bitcoin halving.

3.24 Billion USD - The total trading volume of US Bitcoin ETFs yesterday. This marks a record for most volume in a single day for US Bitcoin ETFs.