[Daily] Is Bitcoin gold?

Good morning! Welcome to The Daily Moon. It’s raining NFTs for sneakerheads. Adidas has launched its NFT collection. Nike will drop its virtual sneaker NFTs (weirdly, no crypto payments allowed). Puma got FOMO and had a limited edition drop on Tuesday. Hopefully, bots won’t buy up everything. 😒

As of Tuesday, 7PM IST

The markets were stable. Bitcoin recovered after whale buying. Ethereum saw active interest from stakers. S&P 500 and Nasdaq gained on buying in technology stocks. Back home, Sensex and Nifty ended lower on selling in oil and bank stocks.

Bitcoin Has A Rebound

Bitcoin slipped below $30,000 for a hot minute but that’s an outlier and not a trend. Analysts say that the one-year winter with multiple bankruptcies is well past us. In fact, the current price moves are reminiscent of the 2018-19 bull rally.

Living on vibesCrypto saw a crash in 2018 when Bitcoin fell 73% but the very next year, the market rallied Bitcoin rose ~94% then. Some analysts can spot similar patterns between 2018 and 2022.

In the past year, the Terra-Luna crash, bankruptcies of Three Arrows Capital, Celsius, BlockFi, and FTX rattled crypto. Bitcoin was down 64%. This year, however, the market is calm and bank-runs have been resolved. After a few bank collapses, investors decided to invest in Bitcoin. That led to a stronger rally in the token.

All those glittersBitcoin’s correlation with gold has also increased. A report by Glassnode showed that BTC is closely following the price of one troy ounce (~31 grams) of gold. Gold is considered “a safe haven” while BTC is traditionally considered risky. But this correlation indicates that Bitcoin’s safe haven theory is intact.

HODLers are intactLong-term HODLers, who brought BTC before FTX’s crash in November 2022, hold 14.16 million BTC and it’s trending to an all-time high.

An analyst forecast even claims that Bitcoin may hit $45,000 in May. 🍿

Can Avalanche Escape The Chills?

Avalanche rose ~17% in a week. It has rallied 50% since the banking crisis in March. An improvement in developer activity coupled with new products for corporations seems to have done the trick.

TradFi is interested Ava Labs, the creators of Avalanche, has launched “Evergreen Subnets” that can be used for blockchain customisation by companies. What’ll happen is that each company can build around a subnet and develop blockchain use-cases for their products and services. T. Rowe Price, WisdomTree, and Wellington Management are among the TradFi firms that will test it out.

Just like its rival Polygon, Avalanche has taken the partnership route to expand. Tencent Cloud and AWS are among its recent partners.

Will this last?A technical indicator called RSI shows that Avalanche is currently overbought. But some degree of sell pressure continues in the market. Future movements will depend on how long the “buy the dip” investors continue to HODL the token.

Money Got Eyes For AI

There’s a new favourite in town for investors. Artificial intelligence. Crypto is feeling the dollars slip away. But all is not lost.

What is going on?ChatGPT changed the game. It’s the single most buzzy thing right now and you’ll likely not find any industry that isn’t making revolutionary claims about its potential. It is this mass use case that is exciting investors. Crypto, on the other hand, is building for an audience that gets crypto. VCs aren’t hiding their love for AI but they also haven’t fully abandoned crypto. Just getting the new shiny toy.

Nvidia GPUs for $40,000 a popRemember the number of times GPUs made an entry here? Mostly because of Bitcoin and blockchain mining. With Ethereum moving to proof-of-stake, mining has become less lucrative for crypto folks. Then what’s causing this exorbitant rise in GPU costs? AI. You see, in order to build applications that can fully build on new AI capabilities, you need higher compute.

A Cautious Economic Rebound 

China’s GDP grew 4.5% in the first quarter of this year. But there is no celebratory mood yet.

Why?It’s all in the details. A look at the spends paints a fuller picture. Luxury items such as cars had higher sales. For the same time period, Tencent said payments through its app were mainly low ticket consumer items.

What’s next?Well, it’s wait and watch. The US’ retail inflation measure, the consumer price index, was down in March too. The commentary for this fiscal is optimistic. It’s becoming harder to read the global sentiment post pandemic, but the immediate hope is for oil prices to not rise.

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