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⚡Bitcoin Hodlers Cash Out📩

Croxroad

12 Apr 2024 — 3 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

💛 Bitcoin Profit-Taking

The latest data from blockchain analytics firm Glassnode reveals a notable decline in the percentage of Bitcoin's circulating supply that has remained unchanged on-chain for at least a year. As of Monday, approximately 12.95 million BTC, or 65.84% of the circulating supply, had not moved in over a year, marking the lowest figure since October 2022. This decline contrasts sharply with the period following the introduction of several spot exchange-traded funds (ETFs) in the U.S. in mid-January, during which the metric soared above 70% before gradually diminishing.

The diminishing percentage of Bitcoin supply inactive for over a year suggests a shift in investor behaviour, likely driven by profit-taking strategies. With Bitcoin's price skyrocketing by 148% since April of the previous year and experiencing a 50% surge since the inception of ETF trading in the U.S., many long-term holders may be seizing the opportunity to capitalise on their investments. However, the exact portion of Bitcoin leaving the inactive supply and entering the market remains challenging to determine definitively.

Analysts at MacroMicro, a data tracking website, view the decreasing percentage of inactive Bitcoin as a potential signal indicating the conclusion of the ongoing bull run. Historically, bull markets have coincided with periods when the percentage of inactive supply reaches its nadir, signalling an impending reversal in market sentiment. As Bitcoin's price hovers around $70,400 at the time of reporting, market participants are closely monitoring these trends for insights into the cryptocurrency's future trajectory.

🐥 Bitcoin's Next Frontier

Thesis, a prominent blockchain venture studio, has officially unveiled Mezo, a groundbreaking Bitcoin layer-2 network, following a successful stealth phase and a significant $21 million fundraising round led by Pantera Capital. The fundraising effort also attracted support from a diverse array of investors, including Multicoin, Hack VC, ParaFi Capital, Nascent, Draper Associates, Primitive Ventures, Asymmetric Ventures, as well as individual backers such as Dan Held and DCF God.

Mezo represents a pioneering venture in the realm of Bitcoin innovation, offering a "permissionless Bitcoin economic layer" that harnesses a neutral smart contract infrastructure to facilitate a diverse range of applications for users. By leveraging this innovative framework, Mezo aims to enhance the capabilities of the Bitcoin blockchain, enabling cost-effective and rapid transactions while providing access to a multitude of applications that utilise Bitcoin as their underlying asset.

One of Mezo's primary objectives is to foster a thriving circular economy by empowering users to access applications that leverage Bitcoin across various use cases. In addition to bolstering the Bitcoin ecosystem, Mezo will also integrate support for Thesis' bitcoin-backed Ethereum token, tBTC. This integration will enable users to seamlessly bridge Bitcoin into Ethereum's decentralised finance (DeFi) ecosystem, unlocking new avenues for interoperability and financial innovation.

Matt Luongo, CEO of Thesis and the mastermind behind Mezo, envisions a bold future for the platform, stating, "Our goal with Mezo is to extend the Bitcoin network to bring 25% of the world’s economy on-chain – roughly in line with the size of the U.S. economy today." By empowering users to securely hold their Bitcoin while earning yields for supporting the network, Mezo represents a transformative step towards realising the full potential of Bitcoin and unlocking new opportunities for economic empowerment on a global scale.

🪝 Earning Other Income

Earning rewards by holding certain cryptocurrencies, like USD Coin, is regarded as taxable income. Similarly, just holding cbETH also introduces taxable income. It's crucial to recognize that even passive activities in the crypto space can have tax implications. Staying informed about these tax obligations ensures compliance with tax laws and regulations.