- October 27, 2024
- Category: Weekly Crypto Digest
In the latest issue of Weekly Crypto Digest, read about how BTC Futures Open Interest Reaches All-Time High, Bernstein predicts Bitcoin at $200K, AI bot makes 2,843% by trading memes, and more crypto news.
Bitcoin Futures Open Interest Reaches All-Time High of $40 Billion
On October 21, 2024, Bitcoin futures open interest (OI) reached $40.38 billion, renewing its all-time high.
The Binance and Bybit cryptocurrency exchanges recorded an increase in interest of 1.53% and 1.12%, respectively. The largest increase was on the BingX platform — 105.95%.
CoinGlass explained that Bitcoin open interest is the total number of outstanding Bitcoin futures or options contracts in the market. It is a measure of the amount of money invested in Bitcoin derivatives at any given time.
Vitalik Buterin Calls Proof-of-Stake Centralization One of Ethereum’s Biggest Risks
Ethereum co-founder Vitalik Buterin said that Proof-of-Stake centralization due to economic pressure is one of Ethereum’s biggest risks. In his article, he proposed several solutions that will help the community solve this and other problems as part of the next stage of the Ethereum roadmap.
Buterin explained that there are two key places where these risks can manifest themselves, namely: block construction and the provision of capital for staking.
The Ethereum co-founder said that block construction in the network is currently mainly carried out through the MEVBoost mechanism, which provides for the distribution of roles between validators and so-called builders.
Buterin explained that when a validator gets the opportunity to propose a block, he “sells the work” to certain “builders” whose goal is to maximize profits. This approach allows for high efficiency, but also leads to potential centralization among the “builders”.
Microsoft to Explore Bitcoin Investing at Upcoming Shareholder Meeting
Microsoft Corporation will explore the potential for investing in Bitcoin. Representatives of the tech giant will put the issue to a vote during a shareholder meeting scheduled for December 10, 2024.
The company’s interest in Bitcoin became known from documents filed with the US Securities and Exchange Commission (SEC). The so-called “Bitcoin Investment Assessment” was proposed by the National Center for Public Policy Research.
We are talking about a conservative organization that is part of the advisory board of the Project 2025 initiative. This association promotes “policies aimed at addressing and reforming the shortcomings of big government and the undemocratic administrative state.”
The US Securities Act allows investors who own enough shares and have voting rights to submit various proposals for consideration at a shareholder meeting. The final decision on such issues is made at this meeting, and not by the company’s board of directors. Microsoft’s statement clarified that the company’s Treasury and Investment Services group values a wide range of assets, including those that can provide a hedge against inflation.
Denmark to Consider 42% Tax on Unrealized Cryptocurrency Gains
The Danish Tax Law Board will introduce a bill on taxation of unrealized gains from cryptocurrencies in early 2025.
It is expected to comply with the mark-to-market principle – constant annual payments to the state in the presence of a positive revaluation, regardless of whether the digital assets are sold.
The bill is expected to include a requirement for crypto service providers to report information about their clients’ transactions.
Mads Eberhardt of Steno Research predicted that the tax rate on unrealized capital gains would be 42%.
Bernstein predicts Bitcoin at $200,000 by the end of 2025
Bernstein analysts have raised their Bitcoin price target by the end of 2025 from $150,000 to $200,000.
The forecast is based on expectations of “unprecedented demand from Bitcoin spot ETFs” managed by BlackRock, Fidelity, Franklin Templeton, and others.
According to experts, Bitcoin is in a new bull cycle. They called the halving a unique situation when natural selling pressure from miners is cut in half or more, and new catalysts for demand for cryptocurrency appear, “leading to exponential price movement.” Analysts pointed to previous cycles: in 2017, digital gold peaked at about five times the marginal cost of production, before bottoming out at 0.8 times that in 2018.
Bernstein’s baseline estimates put BTC at $500,000 by the end of 2029 and $1 million by 2033.
AI bot makes 2,843% on meme coin trading
An AI-powered trading bot made 780.8 SOL ($129,500) trading 10 meme coins over five hours.
The trades yielded a total return of 2,843%. Of these:
– FUN made 42,652%;
– YODI made 2,261%;
– ODEN made 1,645%.
During the trading sessions, analysts noted that the bot had 100% profitable trades.
The description of the X-account of the trading bot says that the neural network analyzes tokens on the Pump.fun platform and “learns to trade by buying and selling assets.”
In the comments, users noted that the so-called AI bot carries out insider trading, disguised as trading using artificial intelligence.
Others noted that the growth of tokens is associated with the public activity of the bot – it reports purchases and subscribers perform similar transactions, stimulating the rise in quotes.