Welcome to this week’s edition of This Week in Crypto! As the digital currency landscape continues to evolve, we’ve seen some monumental developments that could shape the future of cryptocurrency. In a historic week, both Bitcoin smashed through previous price records, setting a new all-time high. Meanwhile, El Salvador’s embrace of Bitcoin has paid off, with the country’s holdings now potentially yielding over $50 million in profits. On a different note, the fusion of music and blockchain technology took a leap forward as Coachella announced a groundbreaking partnership with OpenSea, launching NFTs that promise to enhance festival experiences like never before. Dive into this week’s stories to uncover the details behind these exciting developments in the world of cryptocurrency.
Bitcoin Surpasses $72,000, Flips Silver’s Market Cap Amidst Rally
Bitcoin has soared to unprecedented heights, reaching a new all-time high of over $72,000, a feat it has achieved after a week of consecutive all-time high attempts. The digital currency not only surpassed the $70,000 mark for the first time on March 8th but also flipped the market capitalization of silver. The recent surge to over $72,000 at the time of writing represents an 11.4% increase from the previous week amid anticipation of the Bitcoin halving set for mid-April, which will reduce the reward for mining new blocks. Bitcoin’s market cap has elevated it to the eighth largest globally, trailing behind tech giants and gold, with a value of $1.4 trillion.
Ethereum, too, has seen significant gains, reclaiming the $4,000 level for the first time since 2021. These increases have occurred ahead of the Dencun upgrade, which should occur in two days and is expected to enhance transaction speeds and reduce costs dramatically. Meanwhile, Bitcoin’s rally has come amid burgeoning interest from institutional and traditional investors, evidenced by the recently launched spot Bitcoin ETFs in the United States, which now hold over 4% of Bitcoin’s supply.
El Salvador's Bitcoin Holdings Are Now Worth Over $170M
El Salvador’s venture into Bitcoin has proven lucrative, with the country’s government currently sitting at approximately $53 million in unrealized profits as the value of its Bitcoin holdings soars to over $170 million, thanks in part to the cryptocurrency’s record price highs. This significant increase in value marks a stark contrast from the early days following Bitcoin’s adoption as legal tender in 2022, transforming what was once considered a risky move into a financially rewarding strategy. El Salvador, under the leadership of President Nayib Bukele—who was recently re-elected in February—has accumulated about 2,381 BTC, valued at over $170 million at Bitcoin’s latest all-time high.
El Salvador’s unique position as the first nation-state to adopt a “Bitcoin standard” has drawn global attention and varied commentary, particularly from mainstream media and financial analysts, regarding the sustainability and implications of its digital currency investments. This move, while controversial, showcases a bold experiment in financial policy.
Coachella and OpenSea Blend Music with Blockchain in NFT Debut
Coachella, the iconic music festival, is venturing into the Web3 realm through a groundbreaking partnership with leading NFT marketplace OpenSea, to merge the worlds of music, art, and blockchain technology. This collaboration aims to transform how festival-goers experience Coachella, offering three distinct NFT collections that serve not only as digital keepsakes, but also as keys to unlocking unique real-world perks. These include VIP experiences, exclusive merchandise, and all-access passes to some of the event’s most coveted areas.
The initial drop on March 5th featured 1,000 NFTs, and two more phases are to follow. This initiative marks a significant leap towards integrating Web3 innovations into mainstream entertainment, enhancing attendee engagement both digitally and physically.
This partnership is not just about enhancing the festival experience; it also represents a pivotal moment for the NFT market and OpenSea, amidst a challenging period of declining sales. As OpenSea CEO Devin Finzer noted, this union signifies a major milestone that bridges the digital and physical realms, potentially transforming the festival landscape and offering fresh innovation during a tumultuous time for NFT markets.
