Cryptocurrency Market News: Bitcoin and Ether Prices Fall After Dencun Upgrade

Cryptocurrency Market News: Bitcoin and Ether Prices Fall After Dencun Upgrade

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Key takeaways

  • Bitcoin hit another high early last week but ended sharply lower.
  • Fees on several Ethereum Layer 2 networks fell sharply last week after the Dencun upgrade, but ether prices also declined.
  • Government prosecutors in the Sam Bankman-Fried trial recommended up to 50 years in prison for the former FTX CEO.
  • Digital asset manager Grayscale has filed for a second bitcoin exchange-traded fund (ETF) to use the BTC symbol.
  • This week, analysts are tracking inflows into bitcoin ETFs, and March numbers have already eclipsed those from January and February.

What happened in the crypto markets last week?

Last week turned out to be a rollercoaster for bitcoin (btc) investors, as the largest cryptocurrency by market capitalization hit another all-time high of $73,000 at the start of the week, but fell below the $65,000 mark on Sunday after a sell-off. Ethereum Dencun update met its intended goal by reducing rates on several Layer 2 networks, but ether (ETH) prices also weakened at the end of the week.

Separately, prosecutors recommended that former FTX CEO Sam Bankman-Fried receive up to 50 years in prison on charges related to fraud and money laundering. Also, digital asset manager. Grayscale investments has filed for a second-ranked bitcoin ETF in an effort to offer lower management fees.

Dencun Upgrade Leads to Lower Fees on Ethereum Layer 2 Networks

Following the Dencun upgrade to the Ethereum mainnet on March 13, Ethereum Layer 2 (L2) Protocols have seen a notable reduction in transaction fees, with some protocols reducing fees by up to 99%. Hailed as a fundamental upgrade focused on scalability, Dencun is considered one of Ethereum's most important advancements since The fusion.

Prominent L2 protocols have seen an impressive 99% drop in post-upgrade gas rates, with current rates for some like Starknet dropping to 2.7 cents. Introducing data blobs via EIP-484 during Dencun hard fork has improved transaction data processing, delivering faster and more cost-effective transactions for L2s.

Prosecutors recommend up to 50 years for former FTX CEO Bankman-Fried

Federal prosecutors are arguing for a substantial sentence of up to 50 years for the disgraced cryptocurrency prodigy. Sam Bankman-Fritoaccording to court documents sleepless on Friday. Bankman-Fried, former CEO and co-founder of failed cryptocurrency exchange FTX, was found guilty of multiple criminal charges, including wire fraud and money laundering.

Prosecutors maintain that their actions justify a sentence proportional to the magnitude of their crimes, emphasizing the need for justice in the face of widespread harm and blatant disregard for the law. As the March 28 sentencing date approaches, the severity of the recommended punishment stands in stark contrast to the comparatively lenient request put forward by Bankman-Fried's legal team.

Grayscale Files for New Bitcoin ETF with BTC Ticker

Digital asset manager Grayscale Investments made headlines last Tuesday for presentation for a spin-off of its Grayscale Bitcoin Trust (GBTC), a measure aimed at providing investors with more profitable exposure to bitcoin.

The spin-off, designed to reduce fees associated with GBTC, comes in response to investor preference for lower-cost alternatives, particularly as GBTC's fees have been comparatively higher than those of its competitors. Grayscale plans to introduce the Grayscale Bitcoin Mini Trust, which will hold a portion of the bitcoins currently held by GBTC, with existing GBTC shareholders receiving shares of the Mini Trust in exchange.

Despite bitcoin's rise to record levels, GBTC has seen significant capital outflows of more than $11 billion since January, versus inflows from competing ETFs such as BlackRock's iShares Bitcoin ETF (That's going to go) and Fidelity Wise Origin Bitcoin Fund (FBTC). While Grayscale has yet to finalize Mini Trust fees, the spin-off signals a strategic move towards independent operation for both GBTC and Mini Trust following regulatory approval earlier this year, marking a significant development in the landscape. changing investment opportunities in bitcoins. .

What to expect in the markets this week

Bitcoin ETF spot volumes in March are already much higher than in January and February. Additionally, BlackRock has accumulated more than 230,000 bitcoins through its IBIT offering. That said, inflows appear to be slowing after peaking at more than $1 billion on March 12, according to data from Farside Investors. This week, analysts will be watching to see if capital inflows into these ETFs continue to decline.

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