Headline: Vitalik Buterin: EIP-4844’s Forward-Looking Advantages
Vitalik Buterin, co-founder of Ethereum, expressed in Warpcast that one of the advantages of EIP-4844 is its forward-looking nature. He mentioned two key points: first, the only consensus change required to move from the current state to a full 16 MB danksharding is a parameter change; second, the point eval precompiles return the modulus, allowing for the construction of rollups that are forward-compatible with future changes to the modulus.
US Treasury Proposes New Cryptocurrency Tax Rules Again
According to President Biden’s plan, the US Treasury has once again proposed a large number of tax rules related to digital assets, including banning wash trades and levying consumption taxes on miners’ electricity costs. The Treasury released the “Green Paper,” a revenue proposal for 2025, outlining the tax recommendations in the Biden budget released on Monday. These proposals related to cryptocurrencies are largely a repetition of the requirements put forward by the President in 2023, but they did not ultimately become law.
Market Trends
As of the time of writing, according to coinmarketcap data:
BTC recently traded at $72,481.0, with a daily change of +5.81%.
ETH recently traded at $4,065.55, with a daily change of +6.22%.
BNB recently traded at $520.87, with a daily change of -0.19%.
ORDI recently traded at $76.80, with a daily change of +2.23%.
DOGE recently traded at $0.1769, with a daily change of +6.30%.
SOL recently traded at $147.70, with a daily change of +4.23%.
Policies
The National Tax Service of South Korea to Establish a Comprehensive Management System for Virtual Assets
The National Tax Service of South Korea plans to establish a comprehensive management system for virtual assets to prevent users from evading taxes and achieve fair taxation. The tax authority selected GTIC as the lead company for the virtual asset comprehensive management system project at the end of February and initiated a four-month consultation process. This system aims to effectively analyze and manage the information collected from mandatory submission of virtual asset transaction history. Based on the consultation results, the tax authority will distribute a proposal for system construction and plans to launch the system in 2025.
Blockchain Applications
Ethena Labs Receives Investment from Avon Ventures, a Fund Under Fidelity Investments’ Parent Company, FMR LLC
USDe developer Ethena Labs announced on the X platform that it has received investment from Avon Ventures, a venture capital fund under FMR LLC, the parent company of Fidelity Investments.
Cryptocurrency
Coinbase Sues the US SEC for Refusing to Establish Clear Cryptocurrency Regulations
Cryptocurrency exchange Coinbase has filed a lawsuit against the US Securities and Exchange Commission (SEC), accusing the agency of arbitrary and inconsistent behavior in refusing to establish rules to clarify regulation of the industry. This case is a response to the SEC’s denial of Coinbase’s formal rulemaking petition and raises important questions about the future regulation of cryptocurrencies. Coinbase’s lawyers argue that the securities regulator claims authority over digital assets but refuses to create new regulations on how to handle these assets, demonstrating arbitrary and inconsistent behavior. The company requested clear rules on digital assets, but the SEC rejected the petition in December.
Kaiko: Approximately 1,500 “Million Dollar Wallets” Created Daily During Bitcoin’s Current Bull Run
Cryptocurrency analysis firm Kaiko Research has pointed out that during Bitcoin’s record-breaking bull run, there seemed to be approximately 1,500 new “million dollar wallets” created daily. These wallets are digital addresses on the Bitcoin blockchain that users use to store cryptocurrencies. Since the network is publicly accessible and not controlled by any centralized intermediaries, data such as the token quantities held in each wallet is accessible to the public. Since the launch of the US Bitcoin ETF in January this year, there has been a strong demand, leading to a surge of about 70% in the Bitcoin price. However, the daily number of newly created million dollar wallets is still lower than during the previous bull market in 2021 when more than 4,000 wallets surpassed the million-dollar threshold daily. The highest number of wallets created in a day this year was on March 1, with 1,691 wallets.
Trump: If Re-elected President, Will Not Crack Down on the Use of Bitcoin or Other Cryptocurrencies Through Regulatory Agencies
Former US President Donald Trump stated in an interview with CNBC that if re-elected as President, his administration would not crack down on the use of Bitcoin or other cryptocurrencies through regulatory agencies. Bitcoin has been widely used, and Trump noted that many of the recently launched Trump-branded sneakers were paid for with cryptocurrencies. When asked if he owned any Bitcoin, Trump said he did not, but sometimes allows people to pay him with Bitcoin.
Important Economic Developments
US Stocks Open, Crypto-Related Stocks Rise Across the Board
US stocks opened with the three major indexes down: the Dow Jones Industrial Average fell by 0.14%, the S&P 500 fell by 0.28%, and the Nasdaq fell by 0.16%. Bitcoin broke through $72,000, and stocks related to cryptocurrencies rose: Coinbase (COIN.O) increased by 5.1%, MicroStrategy (MSTR.O) rose by 7.3%, and Marathon Digital (MARA.O) rose by 5%.
Probability of the Fed Maintaining Interest Rates in March at 97%
According to CME’s “FedWatch,” the probability of the Federal Reserve maintaining interest rates in the range of 5.25%-5.50% in March is 97.0%, while the probability of a 25 basis point rate cut is 3.0%. The probability of the Fed maintaining interest rates in May is 81.8%, with a cumulative 25 basis point rate cut probability of 17.7% and a cumulative 50 basis point rate cut probability of 0.5%.
Golden Encyclopedia
What Determines the Price of Bitcoin?
The market forces of supply and demand influence the price of Bitcoin. When there are more sellers, prices usually fall, and vice versa. The price of Bitcoin is also influenced by factors such as media reports, investor sentiment, and regulatory news, leading to rapid price fluctuations. The supply and demand dynamics that affect the prices of other goods and services also determine the price of Bitcoin.
