Runes vs. Ordinals: Next Chapter in Bitcoin’s Fungible Token Evolution
With only eight days remaining until Bitcoin’s halving event, the original blockchain’s ecosystem is poised for a surge in activity, presenting ongoing lucrative opportunities across related tokens. The halving, known to reduce the rate of new coin creation and subsequently lower available supply, historically precedes a bullish trend for Bitcoin.
The anticipation of the halving event and ETF approval has propelled Stacks and Ordinals to become some of the top performers over the last six months. However, the new contender on the block is Runes, Bitcoin’s latest fungible token standard, poised to potentially surpass the ever-popular Ordinals.
Related: Crypto Banter Warns: You’re Not Ready for the Bitcoin Halving – Here’s How to Prepare
Developed by Casey Rodarmor, the creator of the Ordinals protocol, the Runes protocol aims to streamline the minting and trading of fungible tokens on the Bitcoin network. Scheduled to launch on the mainnet alongside the Bitcoin halving event on April 20th, the protocol promises enhanced efficiency in token operations within the Bitcoin ecosystem.
As we enter this new era of possibilities, if you’re keeping an eye out for the next network to host the rise in meme coin mania, Runes could be the area to watch closely. An early signal was with $PUPS this week, Bitcoin’s pioneering meme coin saw over a 1000% surge in anticipation of the Runes protocol.
The Bitcoin ecosystem is heating up, and with the launch of Runes, the best is yet to come. To prepare for this movement, set up a Bitcoin wallet, ensure you have some Bitcoin on hand (as Runes operate on the Bitcoin network), and stay updated with any Bitcoin Runes announcements through Casey’s Twitter.
SEC Issues Wells Notice to UNISWAP
The SEC has issued a Wells notice to the decentralised exchange Uniswap.
What is a Wells notice you ask? It’s essentially a preliminary signal from the SEC indicating its intention to file a lawsuit against a company, but it also allows the company a chance to argue against the legal action.
This approach by the SEC is not new – it has previously taken similar actions against other cryptocurrency platforms like Coinbase and Binance. Marvin Ammori, Uniswap’s Chief Legal Officer, criticised the SEC’s authority over their products, highlighting the lack of clear guidance from the SEC despite dissenting opinions from several of its commissioners. He suggests that this is a recurring issue where the SEC enforces unclear regulations.
The broader crypto community is seeking clear regulatory guidelines, yet this clarity remains elusive. Following this news, Uniswap’s token, UNI, dropped by approximately 15.8%, reaching its lowest value since the end of February.
Hayden Adams, from Uniswap, noted that such legal battles could extend for years, possibly even reaching the Supreme Court. Nevertheless, Uniswap is prepared to defend itself vigorously. Given that Uniswap is a leading decentralised exchange on Ethereum, this situation could also negatively impact the prospects of an Ethereum ETF being approved soon.
Where to next for BTC – Pre & Post Halving.
Last week we discussed the bullish pennant that we had spotted on both the Daily and 4HR timeframes. It looks like it had recent attempts to break out from the pennant formation on both the 4-hour and daily timeframes and faced rejection, leading to a retracement. However, signs indicate another breakout attempt is imminent and on the cards.
Upon a successful breakout, our targets should be set at $85,000, perfectly aligning with a potential post-halving rally.
If we fail to close above $72,000 and open a new daily above that level, a perfect breakout has not occurred, and opening long positions is not advisable. It’s likely that the price action will fall back into the triangle’s apex or even retrace to $65,000 before forming a continuation pattern.
The advantage here lies in our ability to identify the range’s highs and lows, allowing us to set stop losses accurately.
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Rekt Capital has excellently outlined the potential outcomes we might witness both pre and post-halving, which is just on the horizon. As we approach a significant breakout, historical patterns suggest we could be on the cusp of an exciting bull season. Strap in!
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