Bitcoin Experiences Unprecedented Block Production Delay; Analysts Forecast Bitcoin ETF Impact
Summary:
On January 7, the Bitcoin network endured a more than two-hour block production delay setting a two-year record. CoinShares CSO, Meltem Demirors, suggested that the approval of a Bitcoin ETF could stimulate significant buying instead of generating selling pressure. Meanwhile, Ethereum co-founder Vitalik Buterins advised against undiversified portfolio investments. Unidentified Bitcoin owner sparked controversy by transferring $1.2 million to the Genesis Wallet, associated with Bitcoin creator Satoshi Nakamoto. Additionally, Digital Currency Group cleared its $700M debt with Genesis and Blackrock confirmed imminent redundancies.
On January 7, the Bitcoin network experienced a more than two-hour delay in block production – the longest such halt witnessed in over two years. Bitcoin block Explorer Mempool recorded an intermission of 122 minutes between blocks 824717 and 824718. This event significantly deviates from Bitcoin's standard block generation, approximately every ten minutes, although some variation can occur due to changes in mining difficulty and total hash rate.
CoinShares' Chief Strategy Officer, Meltem Demirors, believes that the anticipated approval of a Bitcoin Exchange-Traded Fund (ETF) won't trigger sales pressure. In a recent CNBC interview, Demirors referred to the significant inflows into cryptocurrency exchange-traded products (ETPs) near the close of 2023 as evidence that approval could stimulate significant purchases.
Demirors further indicated that the primary competitive space for Bitcoin ETFs post-approval will be fee structures, with Fidelity, Inveso, Galaxy, and Grayscale each employing different strategies.
Vitalik Buterin, Ethereum co-founder, advises investors to diversify their portfolio and avoid the temptation of placing all their funds in one investment. He recommended saving enough to cover at least two years of expenses and to steer clear of high-leverage trading. Despite his advice, Buterin himself holds a vast $540 million in Ether (ETH).
On January 5, speculation was rife as an unidentified Bitcoin holder transferred $1.2 million to the Genesis Wallet, linked to Bitcoin's creator, Satoshi Nakamoto. Since Nakamoto hasn't touched their holdings in over 15 years, any funds sent are considered irrevocable. Theories circulated following the transfer, with some arguing that it could have been an attempt to force Nakamoto to reveal their identity under new US crypto tax laws.
In additional news, Digital Currency Group (DCG) has fully repaid its $700 million debt to crypto lending platform Genesis, bringing all short-term loans up to date with repayments expected to be fulfilled by April 2024. Moreover, Blackrock, the world's largest asset manager, was confirmed to eliminate around 3% of its global workforce shortly, equating to nearly 600 employees. The layoffs will be based on worker performance over the past year.
Published At
1/8/2024 9:12:10 AM
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