The Breakdown First Five - Wednesday, October 23, 2024

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

5. Retail Coming Back

Cryptoquant has seen the first signs that retail is coming back to Bitcoin. The onchain analytics platform has found a 13% jump in small onchain transactions below $10,000 over the past month. This metric was crushed following the March all time high, but is now trending up again. Cryptoquant analyst’s said this signal “the beginning of a pattern of lower risk aversion.” 

4. Options to Increase Volatility

Analysts are suggesting that soon to be approved Bitcoin ETF options will increase volatility, at least over the short term. Kbit said “retail speculation will likely be the primary use case for IBIT options." They suggested institutions will come in later, using the options to construct structured products that crush volatility. Over the short term though, Bitcoin options will be a Robinhood phenomena which could “amplify volatility.”

3. Gensler’s Birthday Wishes

SEC Chair Gary Gensler has wished Bitcoin a happy sweet sixteen. In an interview with Bloomberg Business, Gensler got in a week early to celebrate the sixteenth anniversary of the Bitcoin whitepaper. He used the occasion to remind anyone still listening that the SEC has nine decades of investor protection, which he intends to continue. At this point it’s just mockery. 

2. River’s Interesting New Product

Bitcoin trading platform River has introduced interest bearing accounts. Users can earn interest on idle cash, taking it in USD or BTC. Interest rates will be variable, starting at 3.8% and based on standard bank rates rather that crazy crypto lending. The product is a partnership with Lead Bank and River says that customers will be protected by FDIC insurance up to $250,000. Interest can even be earned while waiting for an order to fill, so you can always buy the dip.

1. Tesla Still Holding

According to Akrham Intelligence, Tesla’s big Bitcoin movement was just a wallet rotation. Elon’s still holding. Arkham suspects the movement of funds was a change in custodian, or perhaps setting up a custodian for the first time. The company still owns $770M worth of Bitcoin, making them the fourth largest corporate Bitcoin holder and important no matter your stance on Elon’s antics.