HODLing Strong: Bitcoin Holders In for the Long Game

In an anticipated move, the U.S. Federal Reserve held interest rates steady for this month with the Fed also providing some information on their future guidance of markets.

The Markets No Longer Expect Rate Cuts

Following the press release, the Fed futures are no longer anticipating rate cuts before September 2024. To put this in perspective, just three months ago there was a consensus that we would see up to four rate cuts this year alone.

In summary, the message remains crystal clear:Elevated interest rates are here to stay.

Inactive Bitcoin Supply at All-time-highs

While the on-chain for BTC has dropped significantly, investors with strong convictions are seemingly increasing their BTC exposure and holding on.

Data from Coingecko indicates that an impressive 69.06% of Bitcoin-related addresses have held their BTC for more than a year. To add to it, the current amount of BTC stashed on exchanges is slightly above 2 million, a significant drop from the 2021 bull market highs.

Noteworthy Mentions

• Crypto Remittances’ Increasing Role in Global Money Transfers

  Remittances are a fundamental economic pillar in many developing countries around the world. However, with existing hurdles such as limited transfer options and high costs, sending remittances across borders can sometimes be challenging. Our latest research article at Bitcoin Global Macro explores how cryptocurrencies are transforming this landscape.

Industry Shakers

• Citigroup Unveils Token Services for Institutional Clients

  Citigroup announced on Monday that it has initiated a service that utilizes blockchain and smart contracts to tokenize cash management and trade financing for its institutional clientele. These smart contracts function equivalently to traditional bank assurances and letters of credit, as described by the bank. In a recent trial, Citigroup collaborated with shipping giant Maersk and a canal agency to streamline operations typically bogged down by extensive paperwork and manual methods.

  
  

• US lawmakers advance legislation blocking the digital dollar

  The U.S. House Financial Services Committee is advancing a bill designed to restrict the launch of a digital currency by the central bank. Among the proposed legislation is the H.R. 3712, referred to as the Digital Dollar Pilot Prevention Act. This act mandates that the Federal Reserve obtain Congressional consent before beginning any trial runs for CBDCs. Additionally, the Fed has recently clarified that it hasn't made a determination on releasing a CBDC and would only consider such a move if sanctioned by a legal directive.

  
  

• Deutsche Bank to offer crypto custody for institutional clients

  Last week, Taurus, a cryptocurrency company based in Switzerland, announced a collaboration with Deutsche Bank to offer storage solutions for digital assets and tokenized versions of conventional financial instruments for institutional customers. A representative from Deutsche Bank confirmed that this alliance marks the institution's inaugural venture into holding a select range of digital currencies and tokenized assets for its client base.

  
  

• Grayscale files for ether futures ETF

  Grayscale is entering the race to launch an exchange-traded fund (ETF) based on ether futures. This proposed ETF, centered around ether futures, represents another avenue for Grayscale to gain ether exposure while they await a verdict on their Bitcoin ETF application. The application specifies that the ETF is dedicated solely to ether futures, emphasizing that there will be no direct ether transactions, nor will there be a need for an ether custodian.

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