Bitcoin is showing parallels to the S&P 500 as it continues to find its place in the mainstream market. This occasional correlation, while not entirely new, is currently marked at 60% and appears to get stronger with every Fed announcement. Both the stock and crypto markets saw spikes upon Fed rate hikes, followed by dips attributed to the current global churn. In short, uncertainty surrounding political unrest and the harrowing promise of further inflation is leaking into the consumer markets, and Bitcoin, now integrated firmly into the world economy, is seeing how the other half lives. (Coindesk)
Bitcoin also got a promising boost from Do Kwon, co-founder of the Terra network, who teased the market earlier this week by announcing a future $3 billion Bitcoin buy. Kwon expressed plans to use both Bitcoin with Luna (Terra’s untethered sister token) to back Terra’s stablecoin, TerraUST. This reveal was enough to move the market, however briefly, and garnered a lot of attention from investors. (Cointelegraph)
"But out of that $3 billion, most of it we haven't bought yet," Kwon told the public, later tweeting that, "I said more than I shoulda.” For context, the total would amount to 69,850 BTC amidst current market standards, and owning that much Bitcoin would make Terra a rival to Microstrategy in holdings. That’s a lot of Bitcoin. (Cointelegraph)
El Salvador is also becoming increasingly thoughtful about its Bitcoin holdings, postponing the issuance of its planned Bitcoin Bond until the geopolitical dust settles. The bond amounts to $1 billion and was scheduled to go live this March with a coupon of 6.5% and a 50% dividend of Bitcoin’s price increase after the course of five years. The nation hopes to roll out the bond in September under different market conditions. (Decrypt)
In other news, Grayscale Investments is branching out into the world of Ethereum competitors. After launching trusts for both Bitcoin and Ethereum, the company’s new vehicle allows investors access to 7 smart contract platforms, among them popular names like Avalanche, Solana, Polkadot, Cardano, and Polygon. Named the Grayscale Smart Contract Platform Ex-Ethereum Fund, ticker GSCPxE, highlights a growing interest in platforms outside of crypto’s more prominent Layer 1 players.
“Smart contract technology is critical to the growth of the digital economy, but it’s still too early to know which platform will win,” said Grayscale CEO, Michael Sonnenshein. “The beauty of [the fund] is that investors do not have to choose one winner, and instead can access the development of the smart contract platform ecosystem through a singular investment vehicle.” (Cryptopotato)
Support for competitive smart contract platforms continues to roll in, particularly for those that enable Web3, NFT, and Metaverse development. For proof, just look at Yuga Labs. After recently purchasing CryptoPunks and Meebits NFT projects from Larva Labs, the platform announced a valuation of $4 billion post-close on a Series Seed funding round of $450 million. You probably know the network’s name through their culturally groundbreaking NFTs such as Bored Ape Yacht Club or Mutant Ape Yacht Club, which are exploding in value (by the way, want one?).
Chris Lyons of a16z spoke to the network’s relevance in the Web3 and Metaverse landscapes, saying “Mainstream adoption in Web3 is accelerating at lightning speed, and Yuga is at the forefront of merging culture and innovation for everyone to enter the Metaverse.” A statement surrounding this news given by Nicole Muniz, CEO of Yuga Labs, is nothing short of inspiring for a bright blockchain future.
“Already, a new economy is possible with the IP of Apes, Punks, and Meebits, owned by the community,” said Muniz. “The possibilities for blockchain’s impact on culture are endless, and so we are building a beautiful, interoperable world for people to explore and play in. There’s a lot to come.” (BusinessWire)
Big picture, Bitcoin proves it’s here to stay through the good and the bad by remaining resilient through global uncertainty. Like people becoming familiar, the crypto and stock markets are getting to know each other, sharing the ebbs and flows. And while Bitcoin maintains hope as an inflation safety net, the booming world of altcoins, from smart contract platforms to DeFi, build foundations for the immense potential surrounding the Metaverse and Web3.
With all of this taken into consideration, the sentiment seems to be to hang tight for the big advancements to come. These funding rounds are more than just proof that people care, they’re the beginning of new projects, as well as the promise of new jobs, new ideas, and new ground to be broken. These platforms are planting seeds, and the people will reap the benefits for generations to come. For now, the future looks like it’s in full bloom.
Top market movers as of March 25, 2022
- Ethereum Classic (ETC) +76.7%
- Origin Trail (TRAC) +61.6%
- Loopring (LRC) +51.1%
- Serum (SRM) +43.6%
Cryptopotato > "Terra’s Bitcoin Buys and the Recent BTC Price Spike"