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Yahoo
3 days ago
- Business
- Yahoo
U.S. Share of Bitcoin, Ether and Solana Trading Volume Falls Below 45% as Asia Catches Up
The rebound in digital assets since early April has been marked by a significant shift in activity, with Asian trading hours gaining market share in global bitcoin BTC, ether ETH and solana SOL spot trading volumes, while the U.S. steadily loses ground. The U.S. trading hours' share of the spot volume in the three major tokens has dropped below 45% on a 30-day simple moving average basis, having peaked at an all-time high of over 55% at the beginning of 2025, according to data tracked by institutional crypto prime brokerage firm FalconX. The latest reading is the lowest since pro-crypto Donald Trump's victory in the November presidential election. Meanwhile, Asian trading hours now account for nearly 30% of global activity, with Europe accounting for the remainder. Slower activity during the U.S. represents a change in investor mix driving the price action, according to FalconX. "It may point to increased influence from non-U.S. portfolio flows or suggest that U.S. investors are focusing more on markets beyond spot crypto," FalconX's Head of Research David Lawant said in a note shared with CoinDesk. Bitcoin, the leading cryptocurrency by market value, has surged 40% to $105,000 since hitting lows under $75,000 in early April, according to CoinDesk data. Ether and solana have surged 87% and 68%, respectively, during the same period. Although bitcoin's price has surged to new highs, global spot trading activity hasn't yet recovered to levels seen early this year. According to FalconX, daily volume in BTC spot markets, which averaged over $15 billion on a 30-day rolling basis after the November election, declined during the April sell-off and has since held below $10 billion. A low-volume rally is often viewed as a bear trap. However, that's not necessarily the case this time, as ETFs have recently gained popularity as investment vehicles. According to FalconX, the cumulative volume in the 11 U.S.-listed spot bitcoin ETFs has surged from approximately 25% of the global spot BTC market volume to a record 45% in under two months. The spike in ETF volume stems mainly from bold directional bets rather than non-directional arbitrage bets like the cash and carry trade, involving a long position in the ETF and a simultaneous short position in the CME BTC futures. The 11 spot ETFs have amassed $44 billion in net inflows since inception in January 2024, according to data source Farside Investors. BlackRock's IBIT, the largest of them all, attracted $6.35 billion in May, the most since January 2025, indicating growing institutional demand for BTC amid trade tensions and bond market jitters. "All of this points to room for growth and suggests that ETFs are likely to remain a major force behind demand in this rally," Lawant said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Mayor
13-05-2025
- Business
- Business Mayor
Crypto news today: Bitcoin nears all-time high; ETH, DOGE, PEPE, ATOM show bullish signs
Bitcoin surged past $100K this week, fueled by strong spot ETF inflows of over $1 billion. With Bitcoin nearing its all-time high, key support is now eyed around the $100,000 level. Ether experienced a dramatic price jump, breaking $2,600 and targeting $3,000. Bitcoin has decisively reclaimed ground above the psychologically crucial $100,000 mark this week, signaling a resurgence of bullish momentum in the cryptocurrency market. Supported by substantial inflows into spot Bitcoin ETFs, particularly BlackRock's IBIT fund, buyers are now attempting to consolidate these gains and potentially push towards new all-time highs. This renewed strength in the market leader is also igniting interest in several altcoins, prompting discussions about the potential onset of an 'altseason.' The past week saw Bitcoin climb over 10%, with buyers successfully pushing the price through significant resistance levels. This rally has been notably backed by consistent institutional demand, exemplified by BlackRock's IBIT spot Bitcoin ETF extending its inflow streak to 19 days, attracting $1.03 billion in the latest trading week alone, according to Farside Investors data. Technically, Bitcoin is gradually inching towards its all-time high of $109,588, indicating a measured but confident advance by the bulls who seem reluctant to book profits prematurely. While this strong rally has pushed the Relative Strength Index (RSI) into overbought territory – often a precursor to a short-term correction or consolidation – any pullback is anticipated to find robust support between the $100,000 level and the 20-day exponential moving average (EMA), currently around $96,626. A successful rebound from this support zone would significantly increase the probability of a breakout above $109,588, potentially targeting $130,000. However, bears still have a window to regain control. A swift and decisive break below the 20-day EMA could trigger a sharper decline towards the 50-day simple moving average (SMA) near $88,962. On shorter timeframes, strong selling pressure is expected in the $107,000 to $109,588 zone. A successful defense of the 4-hour 20-EMA on any dip would signal continued bullish strength, while a break below $100,000 could open the door for a deeper correction towards $93,000 or even $83,000. Ether (ETH) skyrockets, eyes further upside Ether (ETH) experienced a dramatic surge, catapulting from $1,808 on May 8 to $2,600 by May 10, showcasing aggressive buying pressure. This rapid ascent also pushed its RSI into overbought territory, suggesting a potential near-term consolidation or minor pullback. Key support levels to watch on the downside are $2,320 and then $2,111. If Ether finds support at these levels and turns higher, the ETH/USDT pair could extend its rally towards $2,850 and subsequently aim for the $3,000 mark. However, a break below the $2,111 support would invalidate the immediate bullish outlook, potentially leading to a period of range-bound trading between $1,754 and $2,600. On the 4-hour chart, bulls managed to push above the $2,550 resistance but struggled to sustain those higher levels. A positive sign is that buyers haven't conceded much ground, suggesting they anticipate further upside. A break above $2,609 could trigger the rally towards $3,000, while a drop below the 4-hour 20-EMA might initiate a deeper correction towards the $2,111 support. Dogecoin (DOGE) breaks resistance, signals trend change Dogecoin (DOGE) showed a significant short-term trend change by soaring above the $0.21 overhead resistance on May 10. The rally is currently facing selling pressure near $0.26, which could lead to a retest of the $0.21 breakout level. If DOGE rebounds strongly from $0.21, it would indicate a shift in market sentiment from 'sell the rally' to 'buy the dip,' increasing the likelihood of a continued advance towards $0.31. To negate this bullish momentum, sellers would need to pull the price back below the 20-day EMA (around $0.19). Such a move could trap DOGE within a larger trading range between $0.14 and $0.26 for an extended period. Immediate support on any pullback from $0.26 is seen at $0.22 and then $0.21. Pepe (PEPE) rallies sharply, tests key levels Meme coin Pepe (PEPE) staged a sharp rally from its 50-day SMA (around $0.000008), breaking above the $0.000011 overhead resistance on May 8. This aggressive move has also pushed its RSI into overbought territory, signaling a potential pullback. The PEPE/USDT pair might drop to retest the $0.000011 breakout level. If this level holds as support, it would strengthen the bullish case for a rally towards $0.000017 and then $0.000020. Conversely, a break below the 20-day EMA (around $0.000009) would invalidate this optimistic outlook. On the 4-hour chart, bears are aggressively defending the $0.000014 level. A pullback to the 4-hour 20-EMA is a critical support to watch; a bounce could lead to another attempt to break $0.000014, while a failure could see PEPE slide back to $0.000011 or even the 50-SMA. Cosmos (ATOM) breaks out of base, targets higher levels Cosmos (ATOM) signaled a potential trend change by closing above the $5.15 resistance on May 10, breaking out of a large basing pattern. Read More Drivechains Are Stupid, Prove Me Wrong However, bears are expected to defend this level strongly. If they succeed in pushing the price back below $5.15, aggressive bulls could be trapped, leading to a pullback towards the moving averages. If buyers can sustain the price above $5.15, the ATOM/USDT pair could gain significant momentum and rally towards $6.50. While sellers will likely attempt to halt the advance there, a successful break above $6.50 could open the path towards $7.50. The sharp rally has pushed the 4-hour RSI into overbought territory, suggesting a short-term correction or consolidation. Bulls must defend the $5.15 level to maintain momentum towards $6.60. A break below $5.15 could lead to a deeper correction towards the 20-EMA or even $4.70. While some analysts debate whether a full-blown 'altseason' has truly begun, given the modest recovery of many altcoins from their significant drawdowns, the recent price action across several key cryptocurrencies suggests a renewed bullish appetite in the market.
Yahoo
05-05-2025
- Business
- Yahoo
Crypto Daybook Americas: Bitcoin Dips, but ETF Inflows, Fed Week Keep Bulls Interested
By Omkar Godbole (All times ET unless indicated otherwise) The outlook for bitcoin (BTC) looks bullish even after the largest cryptocurrency pulled back to $95,000 from Friday's highs above $98,000 and the total crypto market capitalization dropped under $3 trillion Among the signals, U.S.-listed spot bitcoin ETFs are rapidly absorbing supply. Last week, the 11 ETFs registered a cumulative net inflow of $1.8 billion, equating to over 18,500 BTC, six times more than the 3,150 BTC mined, according to data sources Farside Investors and HODL15Capital. (See Chart of the Day) On-chain activity has also picked up, suggesting a bullish outlook. According to data source IntoTheBlock, the number of active BTC addresses topped 800,000 on Sunday, "While it is still far from its highs, the rebound signals a clear pickup in on-chain engagement; often a sign of renewed market demand," the firm said on X. As for DeFi, the number of on-chain transactions involving wrapped bitcoin (WBTC) continues to rise, having doubled since January, indicating investor interest in bitcoin-backed decentralized finance. Still, long-term holders may step up their selling as the price nears $100,000, potentially slowing rate of increase, analysis from Glassnode shows. In ether's (ETH) case, data from CryptoQuant show that the number of ETH held by the so-called accumulation addresses increased by 22% to 19.04 million ETH in two months. Ethereum is set to implement the Pectra upgrade on Wednesday to boost scalability, usability and validator efficiency, doubling the blob data capacity per block and lowering the costs for layer-2 protocols. On the macro front, the Federal Reserve interest-rate decision is due this Wednesday. According to ING, the near-term inflation concerns, highlighted by survey data, limit the Fed's ability to ease and the central bank is likely to push back against the calls for rate cuts. The bank, however, said that the recent softening of the GDP suggests scope for easing in the second half. "Volatility is coming," PowerTrade said, pointing to the Fed decision, U.S. ISM services PMI and the Bank of England rate decision as catalysts this week. Stay alert! Crypto: May 5, 11 a.m.: The Crescendo network upgrade goes live on the Kaspa (KAS) mainnet. This upgrade boosts the network's performance by increasing the block production rate to 10 blocks per second from 1 block per second. May 6: Casper Network (CSPR) launches its 2.0 mainnet upgrade, introducing faster transactions, enhanced smart contracts and improved staking features to boost enterprise adoption. May 7, 6:05 a.m.: The Pectra hard fork network upgrade will get activated on the Ethereum (ETH) mainnet at epoch 364032. Pectra combines two major components: the Prague execution layer hard fork and the Electra consensus layer upgrade. May 8: Judge John G. Koeltl will sentence Alex Mashinsky, the founder and former CEO of the now-defunct crypto lending firm Celsius Network, at the U.S. District Court for the Southern District of New York. Macro May 5, 9:45 a.m.: S&P Global releases (Final) U.S. April purchasing managers' index (PMI) data. Composite PMI Est. 51.2 vs. Prev. 53.5 Services PMI Est. 51.4 vs. Prev. 54.4 May 5, 10 a.m.: Institute for Supply Management (ISM) releases U.S. April economic activity data. Services PMI Est. 50.6 vs. Prev. 50.8 May 6, 9 a.m.: S&P Global releases Brazil April purchasing managers' index (PMI) data. Composite PMI Prev. 52.6 Services PMI Prev. 52.5 May 7, 7 p.m.: The Federal Reserve announces its interest rate decision. The FOMC press conference is livestreamed 30 minutes later. Federal Funds Rate Target Range Est. 4.25%-4.5% vs. Prev. 4.25%-4.5% Earnings (Estimates based on FactSet data) May 6: Cipher Mining (CIFR), pre-market, $-0.07 May 8: CleanSpark (CLSK), post-market, $-0.01 May 8: Coinbase Global (COIN), post-market, $2.08 May 8: Hut 8 (HUT), pre-market May 8: MARA Holdings (MARA), post-market May 13: Semler Scientific (SMLR), post-market Governance votes & calls Uniswap DAO is voting on whether to pay Forse, a data‑analytics platform from StableLab, $60,000 in UNI to build an 'analytics hub' that tracks how incentive programs are working on four more blockchains. Voting ends on May 6. Arbitrum DAO is voting on whether to put the last $10.7 million from its 35 million ARB diversification plan into three low‑risk, dollar‑based funds from WisdomTree, Spiko and Franklin Templeton. Voting ends on May 8. May 5, 4 p.m.: Livepeer (LPT) to host a Treasury Talk session on Discord. May 6, 1:30 p.m.: MetaMask and Aave to host an X Spaces session on USDC supplied to Aave being spendable on the MetaMask card. May 7, 7:30 a.m.: PancakeSwap to host an X Spaces Ask Me Anything (AMA) session on the future of trading. May 7, 11 a.m.: Pendle to host a Pendle Yield Talk: Stablecoin Alpha X Spaces session. May 8, 10 a.m.: Balancer and Euler to host an Ask Me Anything (AMA) session. Unlocks May 7: Kaspa (KAS) to unlock 0.56% of its circulating supply worth $13.59 million. May 9: Movement (MOVA) to unlock 2.04% of its circulating supply worth $9.85 million. May 11: Solayer (LAYER) to unlock 12.87% of its circulating supply worth $88.46 million. May 12: Aptos (APT) to unlock 1.82% of its circulating supply worth $58.36 million. May 13: WhiteBIT Coin (WBT) to unlock 27.41% of its circulating supply worth $1.13 billion. May 15: Starknet (STRK) to unlock 4.09% of its circulating supply worth $17.02 million. Token Launches May 5: Sonic (S) to be listed on Kraken. May 7: Obol (OBOL) to be listed on Binance, Bitget, Bybit, MEXC, and others. CoinDesk's Consensus is taking place in Toronto on May 14-16. Use code DAYBOOK and save 15% on passes. May 6-7: Financial Times Digital Assets Summit (London) May 6-8: Stripe Sessions (San Francisco) May 7-9: SALT's Bermuda Digital Finance Forum 2025 (Hamilton, Bermuda) May 11-17: Canada Crypto Week (Toronto) May 12-13: Dubai FinTech Summit May 12-13: Filecoin (FIL) Developer Summit (Toronto) May 12-13: Latest in DeFi Research (TLDR) Conference (New York) May 12-14: ACI's 9th Annual Legal, Regulatory and Compliance Forum on Fintech & Emerging Payment Systems (New York) May 13: Blockchain Futurist Conference (Toronto) May 13: ETHWomen (Toronto) May 14-16: CoinDesk's Consensus 2025 (Toronto) By Shaurya Malwa Memecoin markets are not attracting celebrity hype anymore. Prices of the GORK token, which references a parody AI chatbot that itself mimics XAI's Grok chatbot, failed to jump higher over the weekend even as technocrat Elon Musk widely referenced the Gork X even changed his X picture to the one used by Gork. He later added pit viper sunglasses — a reference to Mog Coin — after a MOG holder asked Musk to "put those" on. GORK, which was issued last week, zoomed to an $80 million market capitalization in four days, but did not rise after Musk's references, a possible sign of fatigue among memecoin speculators. Such an endorsement last year would probably have led to a massive spike in prices. That muted reaction highlights a broader shift in memecoin dynamics: Celebrity engagement no longer guarantees price momentum. In 2023 and early 2024, even a single tweet or like from high-profile figures could trigger double- or triple-digit percentage gains in minutes. But the market has since matured, or, arguably, burned out. Now, traders seem more focused on liquidity depth, tokenomics and narrative stickiness than quick-hit endorsements. GORK's stalled reaction, despite Musk's implicit nod, suggests that attention alone isn't enough — memecoins need sustained community traction or utility memes to drive value. It also hints that retail appetite may be cooling, especially as memecoins become more saturated and short-term rotations grow more competitive. Monero's (XMR) perpetual futures market looks overheated, with annualized funding rates nearing the 100% mark. Extreme bullish positioning often translates into sudden price pull backs. BCH and SUI markets face the opposite situation with bias for shorts driving funding rates to minus 20% or lower. This could potentially lead to a short squeeze and a big move higher. BTC futures open interest on the CME rose to $14.01 billion on Friday, the highest since Feb. 21. ETH open interest remains flat near recent lows under $1.5 billion. On Deribit, BTC calls trade at a premium to puts across multiple time frames, risk reversals show. In ETH's case, bullishness is seen only after the end-May expiry. BTC is down 1.27% from 4 p.m. ET Sunday at $94,447.49 (24hrs: -1.07%) ETH is down 0.77% at $1,819.25 (24hrs: -0.39%) CoinDesk 20 is down 0.70% at 2,721.32 (24hrs: unchanged) Ether CESR Composite Staking Rate is down 3 bps at 2.90% BTC funding rate is at 0.0007% (0.7512% annualized) on Binance DXY is down 0.34% at 99.69 Gold is up 2.29% at $3,316.45/oz Silver is up 1.4% at $32.43/oz Nikkei 225 closed +1.04% at 36,830.69 Hang Seng closed +1.74% at 22,504.68 FTSE closed on Friday +1.17% at 8,596.35 Euro Stoxx 50 is down 0.35% at 5,266.20 DJIA closed on Friday +1.39% at 41,317.43 S&P 500 closed +1.47% at 5,686.67 Nasdaq closed +1.51% at 17,977.73 S&P/TSX Composite Index closed +0.95% at 25,031.51 S&P 40 Latin America closed -2.94% at 2,227.14 U.S. 10-year Treasury rate is up 8 bps at 4.32% E-mini S&P 500 futures are down 0.75% at 5,666.00 E-mini Nasdaq-100 futures are up 0.90% at 20,013.75 E-mini Dow Jones Industrial Average Index futures are down 0.61% at 41,174.00 BTC Dominance: 64.65 (-0.21%) Ethereum to bitcoin ratio: 0.01928 (+0.52%) Hashrate (seven-day moving average): 886 EH/s Hashprice (spot): $50.30 Total Fees: 3.40 BTC / $321,456 CME Futures Open Interest: 145,920 BTC BTC priced in gold: 28.9 oz BTC vs gold market cap: 8.18% TON traded at the support level offered by the trendline connecting lows registered in March and April. Potential violation of trendline would signal an end of the corrective bounce from first-quarter lows, exposing the yearly low of $2.43. Strategy (MSTR): closed on Friday at $394.37 (+3.35%), down 2.38% at $384.98 in pre-market Coinbase Global (COIN): closed at $204.93 (+1.8%), down 1.81% at $201.22 Galaxy Digital Holdings (GLXY): closed at $26.84 (+11.6%) MARA Holdings (MARA): closed at $14.48 (+3.06%), down 2.56% at $14.11 Riot Platforms (RIOT): closed at $8.39 (+7.98%), down 2.15% at $8.21 Core Scientific (CORZ): closed at $8.74 (+2.22%), down 1.49% at $8.61 CleanSpark (CLSK): closed at $8.81 (+1.61%), down 2.50% at $8.59 CoinShares Valkyrie Bitcoin Miners ETF (WGMI): closed at $14.97 (+2.6%) Semler Scientific (SMLR): closed at $36.16 (+8.49%) Exodus Movement (EXOD): closed at $44.79 (+10.92%), up 2.66% at $45.98 Spot BTC ETFs: Daily net flow: $674.9 million Cumulative net flows: $40.20 billion Total BTC holdings ~ 1.16 million Spot ETH ETFs Daily net flow: $20.1 million Cumulative net flows: $2.52 billion Total ETH holdings ~ 3.46 million Source: Farside Investors The chart shows the U.S.-listed spot bitcoin ETFs snapped up over 18,000 BTC last week, significantly outpacing the new supply from miners. President Donald Trump Denies He's Profiting From TRUMP Token: (NBC): In an interview with "Meet the Press" moderator Kristen Welker, Trump said he hasn't checked his crypto token's value. Maldives Could Soon Become a Crypto Hub Thanks to Dubai Family Office's $9B Commitment (CoinDesk): A Dubai-based family office tied to Qatari royal Sheikh Nayef plans to invest up to $8.8 billion in a Maldives financial hub over five years, with $4 billion already committed. Kyrgyzstan's Gold-Backed Dollar Pegged Stablecoin USDKG to Debut in Q3 (CoinDesk): The stablecoin will be backed by $500 million in gold from the Kyrgyz Ministry of Finance, with plans to expand reserves to $2 billion. Why the U.S. Senate Crypto Bill Is in Turmoil (Politico): Nine Democrat senators pulled support Saturday for a revised stablecoin bill, citing diluted anti-money laundering rules, systemic risk concerns and Trump family ties to a $2 billion crypto deal. Chinese Exporters 'Wash' Products in Third Countries to Avoid Donald Trump's Tariffs (Financial Times): Authorities in Asia are investigating intermediaries helping Chinese firms reroute goods through nearby countries, where shipments are repackaged and relabeled to obtain new origin certificates. OPEC+ Supply Hike Forces Wall Street to Redo Sums, Yet Again (Bloomberg): Saudi Arabia appears willing to accept weaker oil prices to rein in overproducing allies, undercut U.S. shale rivals and demonstrate cooperation with Washington amid global inflation concerns. Sign in to access your portfolio
Crypto Insight
05-05-2025
- Business
- Crypto Insight
US Bitcoin ETFs bought 6x more than BTC miners produced last week
Spot Bitcoin exchange-traded funds (ETFs) in the United States bought up nearly six times as many Bitcoin as were produced by miners over the last week. The US-based Bitcoin funds bought a whopping 18,644 Bitcoin over the past week when only 3,150 BTC were mined for the period, reported asset allocator HODL15Capital on May 4. This accumulation by institutions and ETF issuers represents almost six times the amount of the asset being produced since miners only generate 450 coins per day. The total inflow for the past five trading days was around $1.8 billion, with a net outflow on April 30, according to Farside Investors. There has only been one outflow day since April 16, as the inflows have mirrored market recovery. Last week's accumulation followed an increase in BTC spot prices in early May when the asset gained 4% to reach a six-week high of $97,700 on May 2. However, the asset has since retreated to the $94,000 level, which is the same price it traded at this time seven days ago. BlackRock's iShares Bitcoin Trust (IBIT) is the industry leader, having seen almost $2.5 billion in inflows over the past five trading days and a streak of 17 days without an outflow. 'Spot Bitcoin ETFs have surged into a nearly $110 billion category, despite facing significant distribution hurdles,' said ETF Store president Nate Geraci in a blog post on May 3. He added that many wealth management platforms still restrict or prohibit financial advisers and brokers from recommending or providing access to Bitcoin ETPs. 'That's why I've said spot bitcoin ETFs are operating with one hand tied behind their backs. Imagine what might happen as these restrictions are lifted.' Litecoin ETF decision due Meanwhile, the Canary Capital spot Litecoin (LTC) ETF filing is due for a second deadline decision from the US Securities and Exchange Commission by May 5. The issuer filed for a spot Litecoin ETF alongside a spot XRP ETF in October. 'If any asset has a chance of early approval, it's Litecoin IMO,' said Bloomberg ETF analyst James Seyffart on May 5. 'Personally think a delay is more likely,' he added. Fellow analyst Eric Balchunas echoed the sentiment earlier this year. More than 70 US crypto ETFs are awaiting an SEC decision this year, Bloomberg reported in April. Source:
Yahoo
02-05-2025
- Business
- Yahoo
Franklin Templeton Backs Bitcoin DeFi Push, Citing ‘New Utility' for Investors
As the Dubai Token2049 conference concludes, one key takeaway is that the narrative around bitcoin (BTC) is swiftly expanding beyond its traditional role as a store of value to a potential DeFi asset competing with Ethereum and Solana. Prominent industry players like Franklin Templeton view this development as a positive step, confident it will enhance bitcoin's utility without diluting its core appeal as a store of value as purists or maximalists fear. "I don't think focusing on Bitcoin DeFi will dilute or complicate Bitcoin's core narrative," Kevin Farrelly, managing principal of blockchain venture capital at Franklin Templeton and VP of Digital Assets, explained during his keynote speech at the Bitlayer side event this week. "Instead, it expands Bitcoin's utility for a specific type of investor — one with enough technical sophistication to optimize for yield, security, or custom portfolio needs." "These users aren't replacing the 'store of value' thesis; they're building on it," Farrelly added. "It's not narrative dilution, it's infrastructure evolution." Franklin Templeton is an investor in Bitlayer, a BitVM that serves as Bitcoin's computational layer while preserving the mainnet's security. It offers features such as faster transaction processing, lower fees, and new functionalities like smart contracts or advanced DeFi integrations, areas that base-layer Bitcoin alone doesn't natively support. Franklin Templeton's bitcoin ETF (EZBC) has registered net inflows of $260 million since its debut on Jan. 11 last year. As of May 1, the fund held 5,213 BTC, more than $500 million in assets under management at bitcoin's current price of just above $97,000. Satoshi Nakamoto's original vision for the Bitcoin blockchain was driven by creating a decentralized financial system that promotes financial sovereignty and privacy, eliminating the need for transaction intermediaries. Over a decade since its inception, however, the blockchain's native cryptocurrency, bitcoin, has quickly garnered a reputation as digital gold — a reliable store of value — and this narrative has served it well. Bitcoin's market cap today exceeds $1.9 trillion, accounting for nearly 60% of the total digital asset market value of $3.12 trillion, per CoinDesk data. It's the most liquid cryptocurrency, averaging several billion dollars in daily trading volumes worldwide, and several publicly listed companies have adopted it as a reserve asset. Moreover, several regulated alternative investment vehicles tied to BTC have emerged over the years, allowing traditional market participants to take exposure to the cryptocurrency. For instance, according to data source Farside Investors, the 11 spot ETFs listed in the U.S. have amassed nearly $40 billion in investor money since their debut in January last year. Meanwhile, ether ETFs have seen net inflows of just under $3 billion. The strong institutional uptake for BTC has been widely attributed to its simple, compelling narrative as digital gold—an asset that's easy to understand relative to complex platforms like Ethereum or Solana. These platforms support a wider array of decentralized finance (DeFi) applications and use cases, helping their native token holders earn additional yields on top of their spot market holdings. "At its core, it's seen as a digital store of value," Farrelly told CoinDesk. "Unlike more complex crypto projects, Bitcoin doesn't require deep technical explanation — it has a clear, focused purpose. That clarity may be part of what makes it easier to understand, easier to model, and with the ETF, easier to allocate. "In a landscape full of complexity and speculative narratives, Bitcoin offers a kind of signal — and that, increasingly, seems to resonate," he continued.. As a result, many purists resist the idea of introducing features similar to DeFi directly on the Bitcoin blockchain, fearing it could dilute its core appeal. The buzz around Bitcoin DeFi at the Bitlayer event and the main Token2049 conference was tangible, highlighting the growing demand among BTC holders for additional yield opportunities. 'Bitcoin DeFi with trust minimized bridge, sustainable yield products for onchain bitcoin holders is becoming very important for bitcoin asset holders and the network maintainers,' Charlie Yechuan Hu, co-founder of Bitlayer told CoinDesk. 'At Bitlayer we are building important infrastructures which can empower the Bitcoin DeFi with our BitVM technologies," Hu added. "A lot of interesting Bitcoin DeFi use cases can make bitcoin assets more valuable, give users more reason to hold and use in the future' This BTC DeFi trend could also benefit miners, who are rewarded for mining blocks. While the per-block reward is halved every four years, increased on-chain activity driven by DeFi applications could help offset this reduction through higher transaction fees, supporting the network's security and sustainability. "Importantly, Bitcoin DeFi also introduces new transaction fees — a critical component for the network's long-term sustainability and security as block rewards continue to decline," Farrelly said. Hu voiced a similar opinion, saying the rising network hashrate means miners need more activities, like Bitcoin DeFi, to remain profitable. 'We would need to build good Bitcoin Rollup with security verification capacity, which can contribute fees back to Bitcoin,' Hu noted. Sign in to access your portfolio
