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Interdax’s overview of the fundamentals and technicals for bitcoin and other top cryptoassets in May 2020.
May 2020 Round Up
- The number of Bitcoin full nodes fell to lows not seen since mid-2017 according to figures published by Bitcoin Core developer Luke Jr. The trend may suggest that most users care less about the ideals of decentralisation and more about speculation. An increase in Bitcoin’s node count typically precedes bullish phases for BTC-USD.
- Hedge fund manager Paul Tudor Jones revealed just over 1% of his assets were allocated to bitcoin as a hedge against inflation. Jones compared BTC to gold in the 1970s (the precious metal increased 194% in value between 1975–1980), and remarked “We’re watching the birthing of a store of value. And whether that succeeds or not, only time will tell”. Jones’ exposure to bitcoin (via the CME’s futures contracts) is likely to improve sentiment towards digital assets amongst traditional investors.
- Excitement characterised the May 11th halving with BTC-USD testing the $10,000 handle ahead of the scheduled reduction in the subsidy for miners at block #630,000. In a nod to the headline from The Times included in Bitcoin’s genesis block, f2pool mined block #629,999 and embedded the following headline into the block’s header, ‘NYTimes 09/Apr/2020 With $2.3T Injection, Fed’s Plan Far Exceeds 2008 Rescue’. The halving event itself had less of an impact than ‘Black Thursday’ on many on-chain metrics. However, one important development was an increase in transaction fees (read more in our post-halving analysis here).
- Grayscale’s Bitcoin Investment Trust (GBTC) and Square’s CashApp were estimated to have bought more than 50% of newly issued BTC each day during Q1 2020, according to estimates based on inflows into GBTC and CashApp’s revenue from BTC sales. Following the reduction of the block subsidy to 6.25 BTC on May 11th, the percentage of the daily bitcoin issuance that CashApp and Grayscale buy is anticipated to increase again over the second quarter.
- A big win for cryptocurrency adoption as Reddit launched Ethereum-based tokens for the r/cryptocurrency and r/FortniteBR subreddits. Reddit users can earn MOON and BRICK tokens and also exposed FortniteBR’s 1.3 million followers to cryptocurrency.
Read the full crypto market report for May 2020 here: https://docsend.com/view/9xckfzptwtb48wcu.
If you have any questions or feedback on the report, please contact us via email: [email protected].
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Disclaimer: This blog post is for informational purposes only and should not be taken as financial advice.
