The first quote | BTC rebounds to $65,000 after crashing, L1 blockchain Berachain raises $100 million Series B funding, Ethereum's Pectra upgrade brings "smart contract wallet"

Crypto Daily Digest: BTC Rises to $65,000 After Crashing, L1 Blockchain Berachain Raises $100 Million Series B Financing, Ethereum Pectra Upgrade Brings "Smart Contract Wallet"

Looking at the trading activity of Bitcoin ETFs, according to Farside Investor data, Grayscale's Bitcoin spot ETF (GBTC) saw outflows of $166.2 million on April 12, while iShares Bitcoin spot ETF (IBTC) saw inflows of $111.1 million

On April 14, bitcoin fell below $63,000, but then quickly recovered and is now trading at $65,067.54.

The market correction state dominated by Bitcoin may be due to the following main reasons:1. The halving of the block reward brought about by the Bitcoin halving is due to the increase in the cost of miners, which will increase the supply pressure and lower the price, and the recent crypto market will also have more people inclined to take profits, and 2. the reduction of dollar liquidity due to the Fed's balance sheet reduction.

Framework Ventures and Brevan Howard Digital (BH Digital) Abu Dhabi led a $100 million Series B funding round for Layer 1 blockchain developer Berachain.

Berachain is a modular Layer 1 blockchain based on the "Proof of Liquidity" consensus mechanism, a method of verifying the available liquidity of certain assets on the chain and is compatible with the Ethereum Virtual Machine. Berachain owns the governance token BGT, the gas token BERA, and the native consensus-collateralized stablecoin HONEY.

Users can earn BGT by performing certain tasks within the Layer 1 ecosystem, such as providing liquidity on Berachain's decentralized exchange. Convert BGT to HONEY pegged to the U.S. dollar and pay transaction fees with BERA.

The company intends to use the funds to support expansion in Hong Kong, Singapore, Southeast Asia, Latin America, and Africa, adding that Berachain's testnet has processed more than 100 million transactions. Investors use the Simple Future Token Protocol (SAFT) to fund Berachain.

Previously, in April 2023, Berachain raised $42 million in a private token funding round led by Polychain Capital.

Ethereum developers say they have included EIP-3074 in Ethereum's next upgrade, which will support "wallet smart contractization" and is scheduled to be called a "Pectra upgrade", which could take place later this year.

EIP-3074 brings a series of user experience improvements to wallets by delegating functionality to smart contracts. Features such as approving a large number of transactions at once, paying for gas with different ERC20 tokens, enhancing security, or account recovery are all possibilities.

However, the developers also point out that EIP-3074 could also raise a new risk: a single malicious transaction is capable of exhausting a user's entire wallet through bulk transactions. However, professional analysts believe that a good wallet design can help eliminate potential risks.

Market Analysis: The AI and Meme sectors rebounded after the market crash outstanding

Market Trend

After Friday's market crash, the market rebounded, causing BTCD (Bitcoin Market Cap) to rise to a new high in nearly 4 years. The strongest rebound sectors remain the previously strong AI, Meme, and RWA (Real World Assets) concepts.

On the macroeconomic front, the U.S. stock market fell sharply, while the U.S. dollar index hit a new high in nearly six months.

MARKET HOTSPOT

1. AI Sector: Tokens in the AI sector such as TAO, AGIX, RNDR, WLD, etc. have risen sharply. The AI sector took the lead in the previous rally and entered a correction phase, outperforming the rally after the market crash.

2. Meme Sector: Tokens in the Meme sector such as SLERF, MEW, WIF, etc., have also risen sharply. The meme sector is characterized by a high chip circulation and a high market turnover rate.

3. RWA Sector: Tokens in the RWA sector such as TRU, ONDO, PENDLE, etc., have also risen significantly. Benefiting from BlackRock's entry into the tokenized fund, the tokens in the RWA sector have performed strongly recently, not only resisting declines in the falling market, but also rising significantly in the rising market.

4. Multisig wallet safe issues tokens: Multisig wallet safe is about to issue a token SAFE, and V God (Ethereum founder Vitalik Buterin) is said to have deposited $700 million in the safe wallet. This news may draw attention to the market's interest in its token.

All in all, the market rebounded after Friday's plunge, but the US stock market fell sharply and the dollar index hit a new high. In terms of market hotspots, tokens in the AI, Meme, and RWA sectors are outstanding, and investors should pay close attention to market dynamics and carefully adjust their investment strategies.

Macro: Tensions in the Middle East spurred a risk-off rush, equities fell and gold prices soared

Inflation fears have heightened uncertainty in recent weeks, and rising tensions in the Middle East have spurred strong demand for safe-haven assets such as the US dollar, gold and US Treasuries, sending global markets tumbling. In addition to the stock market, gold has also been driven to record highs. At the same time, energy stocks have also ushered in a boom.

On Friday, April 12, there was a sell-off in US equities, marking the end of a week marked by volatile inflation data, changes in expectations for Fed policy, and looming geopolitical tensions. All three major indices fell more than 1%, with the Dow Jones down 1.24%, the S&P down 1.46%, and the Nasdaq down 1.62%.

Investor sentiment has turned negative following the stock market plunge driven by U.S. bank earnings. JPMorgan shares posted their biggest drop in nearly four years, and global equities fell by the most in six months. But at the same time, U.S. energy stocks surged as investors benefited from higher oil prices and stronger-than-expected economic performance, while also seeking to protect their portfolios from inflation.

The energy sector of the S&P 500 is forecast to rise about 17% by 2024, about twice as much as the broader market index. The energy sector's gains have accelerated in recent weeks, making it one of the S&P 500's best-performing sectors over the past month.

Oil prices are one of the key drivers: U.S. crude has risen 20% year-to-date on the back of an unexpectedly strong U.S. economy and concerns about an expanding conflict in the Middle East.

Some investors believe that the rally in energy stocks could hedge against inflationary pressures in the United States. The rise in consumer prices, which is an indicator of inflation, has been more stubborn than expected this year, which may have weakened market expectations of how much the Fed will cut interest rates in 2024, thus acting as some dampening effect on the stock market.

Asian markets will open on a conservative note on Monday, with Japan's Nikkei down more than 1%, while Australia's S&P/ASX 200 is down 0.6% and Hong Kong's Hang Seng is down 0.8%.

Gold rose above $2,400 an ounce on Friday, hitting an all-time high on 12 April, entering its fourth week of gains, as rising tensions in the Middle East prompted investors to seek safe-haven assets.

Spot gold fell 0.8% to $2,353.35 an ounce after hitting an all-time high of $2,419.79. The price has risen by about 1% this week. U.S. gold futures closed up 0.1% at $2,374.1.

On the commodity front, oil prices were little changed as traders largely priced in Iran's retaliatory attack, with Brent futures falling 0.5% to $90.01 a barrel, while U.S. West Texas Intermediate futures fell about 0.6% to $85.13 a barrel.

by Sherry S. & Icing. This article represents the views of the author only and does not constitute any trading advice. The content of this article is original, the copyright is owned by Gate.io, if you need to reprint, please indicate the author and source, otherwise you will be held legally responsible.