In this week's crypto weekly brew, we will delve into subjects that include Bitcoin's potential for attracting investments from boomers, NFTs making a comeback and the rise of crypto inflows.
Analysts are predicting that Bitcoin could expect significant capital inflows and that it can have an impact on continuing to attract investment from the traditional crowd. The 2024 year will be a pivotal year, as there will be US elections, Bitcoins halving and potential Fed rate cuts. We have seen how the market tends to overreact to macro factors than fundamental news when it comes to Bitcoin. It will be interesting to see how 2024 will play out and what the shift in the macroeconomic view will be and what impact this will have on the price of Bitcoin.
Taproot Wizards, a startup that is navigating the world of Bitcoin has raised $7.5m in seed round funding. The community sentiment within the Bitcoin community hasn’t been all that positive when it comes to integrating NFTs. The prevailing sentiment is how will Taproot Wizards use that funding and whether it will just be a case study. Nonetheless, we need moves like these to bring about innovation and experimentation into the Bitcoin ecosystem. Bitcoin use cases need to evolve and challenge the notion that it is merely a store of value. Exploring the role of NFTs in Bitcoin advocates for an approach that embraces experimentation to foster development in both the narrative and ecosystem surrounding Bitcoin.
BitLord recently announced that he has raised $4m in funding for a mysterious project. This fundraising approach by high profile crypto influencers can be a double-edged sword. Sometimes these influencers may rug pull on their less than experienced fanbase and other times it shows a lack of nuance of directly soliciting funds from individuals. Regardless, this highlights the risk with crypto investments / projects especially when led by influencers. There is almost no guarantee that the individuals will follow through on their promises and these projects are volatile, perform poorly and often rely on ponzi-nomics to generate value. We should all approach these types of fundraising initiatives with caution.
Digital asset investment product fund recently released a report that crypto inflows has surpassed more than $1 billion in 2023. Most of these inflows are chasing the Bitcoin and Ethereum ETF narrative. Now whether the trend is sustainable is questionable as we yet to see the approvement of the ETF. Yet, the general market seems to be spurred on by this speculation and has resulted in price increases in Bitcoin, Ethereum and Solana to name a few. We need to maintain cautious as all this speculation could be ended if the crypto ETFs are not approved and panic may onset onto the market. Crypto markets are very volatile and we need to maintain a balanced approach when approaching crypto investments.
Thank you for reading and hope you have a good rest of the day!
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