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- 4/4/24: Wall Street Bears 🐻💸⚡️
4/4/24: Wall Street Bears 🐻💸⚡️
Top News
Hedge funds are shorting BTC at record levels
Ripple to launch a stablecoin pegged to the US dollar
Coinbase to integrate Bitcoin lightning network
Specs’ Breakdown
1. Hedge funds are shorting BTC at record levels
⌐◪-◪ → Hedge funds are shorting Bitcoin at record levels as Bitcoin drops from $71k to $66k.
Unclear what is driving this bearish sentiment, but the latest time Wall Street shorted something this hard (GameStop) it didn’t end well for them.
The hedge funds will have to rebuy 100k BTC at some point to cover their shorts, and if BTC doesn’t break down to $62k this will result in a massive short squeeze.
Zooming out: It’s been 500 days since BTC hit the bear-market bottom. In 2020, BTC went up 732% over the next 12 months from the same 500-day point. Peep this chart.
Furthermore, the Bitcoin supply shortage on exchanges is so bad that the largest banks are contacting miners directly to buy Bitcoin, this comes from the CEO of Hut 8 Mining.
I really hope r/wallstreet bets rallies the retail troops on this one.
2. Ripple to launch a stablecoin pegged to the US dollar
JUST IN: Ripple to launch stablecoin pegged to the US dollar.
— Watcher.Guru (@WatcherGuru)
1:05 PM • Apr 4, 2024
⌐◪-◪ → Ripple just announced they’ll launch a stablecoin pegged to the US dollar across the Ethereum and XRP Ledger blockchains.
The token will be 100% backed by US dollar deposits + short-term US government treasuries or other cash equivalents.
For context: the stablecoin market is over $150B today and is projected to exceed $2.8T by 2028.
Ripple wants to play in a similar lane as $USDC, providing the world a complaint stablecoin that provides trust, stability, and utility.
Meanwhile, Ripple is still battling the SEC — which might scare users away in favor of more “safe” stablecoins like Circle’s $USDC.
Court case aside, I think this is a smart move by Ripple because stablecoins are a growing market segment with undeniable product/market fit.
This move means Ripple could become a bank that pays no interest. Pretty nice if you ask me.
3. Coinbase to integrate Bitcoin lightning network
Coinbase integrating Lightning ⚡️⚡️
#Bitcoin on lightning rails isn't just the future - it's here!
— Thomas | heyapollo.com (@thomas_fahrer)
8:24 PM • Apr 3, 2024
⌐◪-◪ → Coinbase is officially integrating the Bitcoin lightning network, and the CEO said it, “should be launching soon”.
I think this is good news, as it gives users more optionality and faster/cheaper transactions, but not everyone agrees…
Bitcoin accelerationist @Pledditor believes that “Coinbase has zero engineers with Bitcoin experience” citing 3 bits of evidence:
Coinbase outsourced Lightning to Lightspark
After 14 months of Ordinals, they haven’t listed a single one
They don’t even support Taproot transactions
While I appreciate his opinion, Coinbase has proven its competence time and time again over many years of operations, so I’m optimistic.
Outsourcing to Lightspark could simply be a way to move faster rather than an expertise/knowledge dependency and no ordinals could have its own set of reasons (regulatory/risk/values).
But who knows, he may have a valid point here. I’m not familiar with Coinbase’s team composition or BTC expertise.
Everything Else
⛓️ Crypto & DeFi
Velodrome, an Optimism-based DEX, deployed to BTC L2 BOB
Frax Finance expands to Cosmos ecosystem via Noble chain
Pendle yield platform reaches $4B in TVL and $10B in volume
Vana launches DAO letting Reddit users control their personal data
Memecoins were the best-performing asset class in Q1
Binance to cease support for Bitcoin NFTs
🏦 Wallstreet & VC
Spot BTC ETF flows turn positive this week as GBTC outflows slow
Morgan Stanley wants to be 1st to approve BTC ETFs for advisors
Franklin Templeton says Ordinals drive ‘positive momentum’ for BTC
VanEck predicts ETH L2 tokens will reach $1T by 2030
Galaxy Digital to raise $100M for crypto venture fund
Zeus Network raises $8M for Solana interoperability layer
Rainmaker raises $7.5M for web3 AI firm, led by Jump Capital
Web3Firewall raises $2.5M round for AI security platform
🏛️ Legal & Regulatory
Customers flee KuCoin following US 'criminal conspiracy' charges
SEC’s Gurbir Grewal criticizes crypto industry for noncompliance
BIS announces tokenization project with group of global central banks
🌎 Rest of the World
GSR receives Singapore crypto license
ARP Digital gets Bahrain crypto license
Coinbase gets dealer license in Canada
Nigerian court adjourns hearing for Binance exec’s tax evasion case
Binance exec detained in Nigeria has no decision-making power
UK regulators publish draft guidance on Digital Securities sandbox
Bank of England targets Q3-Q4 2024 for 1st digital securities cohort
🖼️ NFTs & Metaverse
Pixel Vault’s 'BattlePlan' migrating to Ethereum gaming network XAI
Coachella launches Avalanche-based NFT quests game
Hyptopia, Minecraft-inspired game, launches after $8M node sale
Nic Carter & David Hoffman to fight in Karate Combat at Consensys
EPIK launches on Rekt Radio show, does $70M in volume
Blast drops $1M in $PAC tokens to creators
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