MERIT CIRCLE ANNOUNCES THE DESTRUCTION OF MORE THAN 37 BILLION BEAM TOKENS
Merit Circle, one of the prominent blockchain game guilds in the decentralized world, made a huge announcement on April 13, which is about the casino game P3 Protocol, that they own majority shares dealing with the administration of the guild. It has been disclosed that Merit Circle is going to burn 37,551,413,982 BEAM tokens and with this Such a maneuver is a daring move that allows the newcomer to the cryptocurrency ecosystem to steal the thunder and focus the attention of the entire crypto-community, on that matter, where tokens burns are used to regulate supply and to potentially raise the value of remaining tokens in circulation.
Hence, Merit Circle’s move of burning a staggering number of tokens purports their desire to offer a viable economic scenario that is sustainable. The guild’s action to restrict the amount of tokens available on the market is aimed at increasing the level of scarcity and can potentially make tokens with no reliance on their supply more attractive or valuable. But this big token burn has had a convoluted effect on BEAM’s price in the market with the last 24-hour price getting down 13.7% in accordance with the CoinGecko data.
Market impact and speculation
Consequently, many have come to think about Merit Circle as either a beneficiary or an aggressor in the cryptocurrency market. Despite the fact that the long-term effects of this dramatic -50% drop in supply are yet to come to the fore, the current short term reaction has caused the BEAM market value to dip. This decline of price was likely to be as a result of some market factors we are yet to know if the algorithm burn has any direct link or not to the current trend.
Cryptocurrency experts and investors are widely monitoring this signal since drastic events could potentially escalate to the crypto market that has been holding extreme prices in the past timeframes. The potential impact of that could be setting examples for other crypto players as well as other projects seeking a more efficient token economy might lead to the general adoption of this approach.
Bearing the future of BEAM tokens
News on the token burn of the Merit Circle project has set off the buying wave in the market, and so, the market now desires to know the impact of the quickly developing BEAM token system on the latter’s ecosystem as well as holders. The decision to freeze the token’s liquidity could be seen as having two effects that are very opposite; it either brings a recovery of the share price due to the increase in scarcity or market adjustments based on the investor perception and the market dynamics.
The cutting-edge strategy by Merit Circle reflects the ever-evolving trials and experiments in cryptoeconomics, in which burns of tokens is just one technique by digital assets to stabilize or increase token prices. The prospect of BEAM tokens are going to be reliant on the mix of market response, overall crypto market directions, and the right steps of the Merit Circle team.
The crypto community will be keeping tabs on how the business is doing and if this bold take by Merit Circle will effect a positive reappraisal of BEAM or if it will be a warning to the other projects thinking of doing similar hash large-scale token burns. The impression through which this act can impact future policies in blockchain gaming and the broader cryptocurrency sector may well be influenced.
GRAYSCALE BITCOIN ETF RECORDS MASSIVE OUTFLOWS DESPITE CEO REMARKS
The Grayscale Bitcoin exchange-traded fund (ETF) has continued to witness massive outflows from the fund’s holdings. According to data, the fund saw an outflow of over $166 million and about 2,500 Bitcoin from its holdings. Since the approval of the fund on January 11, it has now witnessed outflows of more than $16 billion.
Grayscale Bitcoin ETF outflows continue
The outflows from the fund show no signs of slowing down with GBTC registering outflows of $75 million to $300 million since the start of April. Consequently, there has been little to show that investors are active in the Bitcoin ETF market as inflows have been increasingly low.
GBTC registered a combined weekly outflow of $767 million this week, adding to the overall negative flow in the entire Bitcoin ETF ecosystem. BlackRock has experienced a considerable amount of support as its IBIT Bitcoin ETF’s asset under management recently exceeded $15 billion. With this feat, it has closed the with the Grayscale Bitcoin ETF. Notably, a huge portion of outflows from GBTC are being moved into the IBIT Bitcoin ETF.
BlackRock ETF gains momentum amid GBTC outflows
During the week, Grayscale CEO Michael Sonnenshein mentioned that he feels that outflows from the Grayscale Bitcoin Trust might be reaching an equilibrium. His statement signaled that there was some sort of optimism on the part of traders and investors in the Bitcoin market. However, the recent data shows that things are far from his prediction.
The GBTC fund charges a high management fee and this has been noted as one of the reasons for the massive outflows. Despite talks about a likely cut, Sonnenshein is hesitant to slash the fees despite losing most of the outflows to competitors. GBTC charges a 1.5% management fee, with other Bitcoin ETFs charging an average fee of 0.30%. He noted that there is always excitement in the market when new products enter the space but it fades as another new product enters the space.
The data showed that GBTC saw an outflow of $17.5 million on April 10, a decrease of about $154 million from the previous day. Over the last four months, the fund has seen an average outflow of $257 million, with the lowest coming on Feb 26 where it saw an outflow of $22.4 million.
THE FEDERAL RESERVE ITSELF CAN’T MAKE SENSE OF U.S. INFLATION
Three months into 2024, and we’re already grasping at straws trying to understand the trajectory of U.S. inflation. Despite a slowdown from the fiery rates of 2022, the decline isn’t as swift or as steady as anyone hoped. Inflation is hanging around like a bad odor, and the expectations for its future course are only climbing.
While consumers scratch their heads at rising prices at checkouts, and producers wince at escalating wholesale costs, a general unease pervades from Wall Street to Main Street. The confusion isn’t just among the masses. Even the sharpest economic minds didn’t see this persistence coming.
Stocks are feeling the pinch too, with the Dow Jones Industrial Average taking a nosedive, shedding nearly 500 points and wiping out most of its yearly gains—all in a week’s work.
Investors once cheered for an accommodating Federal Reserve, which teased with interest rate cuts aplenty early in the year. However, every fresh batch of stubborn inflation data has them revising their bets, now barely hoping for a couple of cuts. The futures market holds a bleak view with a 9% chance that we might not see any rate reductions this year.
Reassessing Expectations Amid Rising Costs
As if the domestic drama wasn’t enough, global events are tossing more fuel on the inflationary fire. A report hinted at the current Iran and Israel conflict, which only propelled energy prices upwards.
It’s clear that external shocks are still in play, complicating the Fed’s strategy and the market’s response. This week alone has been a rollercoaster. Starting with a jolt from the New York Fed’s consumer survey, which revealed a sharp uptick in expected rent increases, to a dismal business sentiment report from the National Federation of Independent Business.
Then came the consumer and wholesale price reports, each surpassing gloomy expectations. Import prices, usually a background figure in economic analyses, have made headlines with significant jumps, marking the largest three-month increase in nearly two years.
The Federal Reserve, for their part, are monitoring these developments but aren’t sounding the alarm just yet. They remain hopeful of achieving a balanced economy and meeting their 2% inflation target, but the convergence of their dual mandate goals appears more like a distant dream.
Persistent Challenges and Market Reactions
Despite the focus on consumer and producer price indexes, the Fed typically keeps an eye on the personal consumption expenditures price index, which offers a slightly different perspective by accounting for changes in consumer behavior and less weighting on housing costs.
February’s PCE readings indicated a core inflation rate slightly above the Fed’s comfort zone, and we’re anxiously awaiting the March figures.
Meanwhile, economic indicators like the sticky price CPI and the Dallas Fed’s trimmed mean PCE suggest inflation is digging in its heels. The sticky price CPI, which includes long-term goods like housing and medical services, ticked up to 4.5%. Meanwhile, the flexible CPI, which shows more volatile prices like food and energy, showed a sharp increase.
