This Week In Crypto is a weekly segment from the Live Coin Watch News team, providing readers with a fun, succinct, and pertinent summary of the most important Bitcoin-related events in the past week or two.

Bitcoin Rallies to $10,000, Then Dumps 20% 

Last week, Bitcoin rallied as high as $10,000 — surging on the back of hype surrounding the block reward halving and a swath of positive fundamental trends. But, the cryptocurrency only traded above that key level for a short period of time, eventually crashing below the psychological resistance to a low of $8,100 in dramatic fashion. It was a drop that liquidated over $1 billion worth of crypto positions, data indicates.

Bitcoin has since recovered to $9,000.

Chart of Bitcoin’s price over the past seven days from LiveCoinWatch.

Despite the drop, many analysts remain bullish on Bitcoin.

One top trader made this much clear when he argued that there is a confluence of four fundamental factors that makes him “struggle to see a bearish case for Bitcoin.” These factors are as follows:

  • Bitcoin’s block reward halving is taking place in approximately one day.
  • Bitcoin’s narrative of being a hedge against economic downturns is “showing potential,” likely referencing how the cryptocurrency is the best-performing asset this year despite a global recession brewing.
  • BTC has seen incredible strength from the $3,700 lows seen in March.
  • Exchange dynamics are shifting in favor of growth, as buying increases and sell-side demand may slow.

Crypto’s Most Awaited Event: The Halving Is Finally Here

On Monday, Bitcoin’s block reward halving transpired when block 630,000 was mined.

Blockchain.com Bitcoin block explorer showing block 630,000 has been mined.

A halving is an event that decreases the reward cryptocurrency miners receive for verifying or “mining” blocks — or processing transactions — by 50%. Bitcoin halvings take place approximately every four years, making this latest halving the cryptocurrency’s third since its inception in 2008.

Legendary Wall Street Investor Buys Bitcoin

 In a note titled “The Great Monetary Inflation” written by legendary macro investor Paul Tudor Jones, he wrote that Bitcoin in the ongoing macroeconomic backdrop is eerily reminiscent of gold in the 1970s. What happened with gold then, for those unaware, is the precious metal rallied hundreds of percent within years due to an influx of inflation (15% per annum at one point) and an abolishment of the gold standard.

Jones added while he subjectively sees Bitcoin as the worst store of value amongst fiat, gold, and financial assets, he sees the cryptocurrency as the “fastest horse in the race.”

Report Finds Many Crypto Assets See Barely Any Real Use

Researchers from London have found that three top blockchains — EOS, Tezos, and the XRP Ledger — have only a “small fraction of transactions used for value transfer purposes.” After compiling extensive data of transactions on the there aforementioned blockchains, making sure to obtain the metadata of each transaction, they found:

“95% of the throughput on EOS was used for the airdrop of a valueless token, 82% of transactions on the Tezos blockchain were used to maintain consensus, and that only 2% of transactions on the XRP ledger resulted in value transfer.”

Ethereum Users Are “Selling Themselves” Via Crypto Assets

One of the beauties of Ethereum is that anyone can create a token for anything. Witty entrepreneurs in the cryptocurrency space have acknowledged this, issuing coins representing equity in themselves dubbed “personal tokens.”

Kerman Kohli is an Ethereum DeFi specialist and newsletter writer who is looking to sell $30,000 worth of KERMAN tokens. These crypto assets will not only pay out dividends to holders but will also bring value to holders in other ways, like through KERMAN token burns and by allowing for holders to influence his life.

Jake Chervinsky, general counsel at Ethereum DeFi application Compound, said that he’s skeptical of the offering, at least for American citizens:

“Not legal advice, but if you’re thinking about raising capital by selling a personal token in the United States to fund your career on the promise of returning profit to investors based on your future efforts, maybe just don’t.”

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