To confirm whether the $BTC price movement is driven by genuine adoption or external factors, we need to watch the following metrics: 1) on-chain fee growth, 2) TVL growth, and 3) stablecoin dominance.
If fees continue to grow in proportion to TVL, and #stablecoin dominance increases, it would suggest that #Bitcoin is experiencing genuine adoption.
On the other hand, if TVL growth slows down, or stablecoin dominance remains low, it would suggest that Bitcoin's price movement is driven by external factors.
📊 On-chain fee data indicates that the fees generated by $BTC are relatively low, with only $16.5 million in fees generated by Tether in the last 24 hours.
📉 This is a relatively small amount compared to the total trading volume of $32.4 billion. This suggests that the activity in the #bitcoin ecosystem is not translating into significant revenue for protocol participants.
📈 Furthermore, the lack of change in Bitcoin's TVL suggests that there is no significant inflow or outflow of capital. This contradicts the idea that there is significant capital flow into or out of #Bitcoin❗
To gain a better understanding of the $BTC price movement, it is essential to watch the following metrics in the next 24 hours:
- Bitcoin's price movement relative to the broader market, the TVL on the Bitcoin chain, and the fees and DEX volume on the chain. - If Bitcoin's price continues to move independently of the broader market, it may indicate that it is driven by its own unique factors. - Conversely, if the TVL on the Bitcoin chain increases, it may suggest that capital is flowing into the chain.
Donald Trump Signs Order Letting Crypto Into 401(k) Retirement Plans The order directs the Department of Labor to reevaluate how crypto should be treated by retirement fund managers. U.S. President Donald Trump has signed an executive order to allow crypto investments in 401(k) retirement plans, opening the gates for millions of dollars to flow into the asset class.
The order, which also allows for private equity investments, is poised to dramatically widen the scope of what retirement plan providers can direct funds to. This in turn could help crypto prices while further integrating digital assets with the broader financial system Alternative assets, such as private equity, real estate, and digital assets, offer competitive returns and diversification benefits," a fact sheet published Thursday said.
While it was never technically prohibited to add crypto to a retirement plan, the Department of Labor previously put out guidance for fiduciaries to “exercise extreme care before they consider adding a cryptocurrency option to a 401(k) plan's investment menu for plan participants
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