Quick Take MicroStrategy (MSTR) has recently experienced a pullback in its stock price, currently trading around $1,260 per share, down 35% from its recent high of nearly $2,000. This decline is in line with Bitcoin’s (BTC) 8% pullback over the same period. Despite the recent downturn, MicroStrategy’s stock has outperformed Bitcoin year-to-date — with MSTR up 84% compared to BTC’s 44% gain. BTCUSD vs MSTR: (Source: TradingView) Data from the MSTR-tracker shows the “MSTR/BTC Ratio” chart, which illustrates the comparative value between MicroStrategy’s stock price and Bitcoin’s price, which peak ..read more

Institutional investors increasingly sought exposure to crypto during the first quarter of the year following the launch of several US-based spot Bitcoin exchange-traded funds (ETFs) in January. The CoinShares Digital Fund Manager survey revealed that these institutional investors have significantly increased their digital asset allocations, reaching 3% in their portfolios. This marks the highest level since the survey’s inception in 2021. Many of these investors attributed their increased exposure to digital asset investments to distributed ledger technology. Additionally, they now perceive d ..read more

Layer-1 blockchains are foundational networks supporting various applications directly on their protocol, while Layer-2 blockchains operate atop these foundational layers, enhancing scalability and efficiency. Comparing the usage and efficiency of EVM-compatible L1 and L2 blockchains and side chains helps us better understand the market values and where most of the DeFi activity comes from. Dune Analytics data analyzed by CryptoSlate showed Polygon, a Layer-2 sidechain, was the leading figure in the DeFi ecosystem, closely followed by BNB Chain, an EVM-compatible Layer-1 blockchain. One of the ..read more

Quick Take Data from Trading Economics shows the United States economy grew at an annualized rate of 1.6% in the first quarter of 2024, falling short of the forecasted 2.5% and slowing down from the previous quarter’s 3.4% growth. Despite the slower pace, the economy continues to expand in an already overheated environment, with inflation persisting above the target level. US GDP Growth Rate: (Source: Trading Economics) US bond yields rose in response to the economic data, with the 2-year Treasury yield surpassing 5%. The front end of the yield curve, particularly the 3-month and 6-month yield ..read more

Quick Take As Bitcoin’s price hovers around $63,000, slightly down over the past 24 hours, the options market is providing insights into shifting investor sentiment ahead of the expiration on April 26. A key development has been the reduction in positive gamma exposure as Bitcoin declined through the heavily traded $65,000 call strike. According to Imran Lakha, a 20-year professional options trader notes: Short gamma reduced on the way down as we went through the big long strike at 65k suggesting volume has been smashed lower, calls are getting dumped Bitcoin Gamma Level: (Source: laevitas ..read more

Crypto Asset Service Providers (CASP) in Europe would have to implement stringent Know Your Customer (KYC) procedures to combat money laundering following the European Parliament greenlight of new Anti-Money Laundering Regulations (AMLR), according to an April 24 statement. According to the statement: “The new laws include enhanced due diligence measures and checks on customers’ identity, after which so-called obliged entities (e.g. banks, assets and crypto assets managers or real and virtual estate agents) have to report suspicious activities to FIUs and other competent authorities.” The la ..read more

Morgan Stanley could soon allow its 15,000 brokers to recommend Bitcoin (BTC) exchange-traded funds (ETF) to their clients, AdvisorHub reported on April 24. The financial behemoth had initially greenlit BTC ETF purchases following approval earlier this year. However, these transactions were strictly initiated by customers, necessitating them to proactively engage with their advisors to delve into this asset class. Now, the institution is contemplating a shift to allow its brokers to actively promote BTC ETFs, potentially amplifying demand for these investment vehicles. However, such a move ..read more

On April 20, the day of the Bitcoin halving, total transaction fees paid to miners jumped to 1,257.71 BTC, the highest since December 2017. The high amounts starkly contrasted with fees from the previous day, which amounted to only 116.94 BTC. When viewed alongside the decreased block rewards post-halving, this surge in transaction fees led to an extraordinary scenario where over 75% of miner revenue was derived from transaction fees, as previously analyzed by CryptoSlate. Such high fees have considerable implications for the utility of the Bitcoin blockchain. Throughout the weekend surroundin ..read more

Binance‘s co-founder and former CEO, Changpeng ‘CZ’ Zhao, submitted a letter of apology to the court on April 24. Zhao, who pleaded guilty to criminal charges earlier this year, expressed regret in advance of his upcoming sentencing date. He wrote: “I apologize for my poor decisions and accept full responsibility.” CZ said he recognizes that he should have introduced compliance changes at Binance at an early stage, noting that the exchange had eventually introduced “stringent” controls under his leadership. He emphasized that he “voluntarily surrendered and took responsibility” in the curren ..read more

International authorities collaborated to shut down Samourai Wallet and arrested its two founders on April 24 after the US Department of Justice (DOJ) filed criminal charges against the privacy wallet over allegations of facilitating money laundering. Samourai’s website currently displays a seizure notice that notes Icelandic law enforcement, Portugal police, IRS, DOJ, FBI, and Europol were involved in the seizures of Samourai’s web servers and domain, with one agent noting that the project is “now closed for business.” Authorities also issued a seizure warrant for the mobile app on Google Pla ..read more