Why does it rain when the forecast calls for sun? Why do the good die young?

Why does my wife shout at me when I show up three hours later than we agreed, reeking of light beer?

Some things just happen for no reason. And at first, Bitcoin’s recent uptick seemed to be one of them.

But we’ve been doing some analysis, and we have some ideas behind Bitcoin’s rise. We’ll get into all of that and more.

Well, it’s finally happened. Coffee & Crypto is growing up. We’ve reached our later adolescent years and we’re in desperate need of a makeover.

But before we commit, we thought we’d get some feedback from those who know us best: our readers.

So let us know below! Which look do you think suits us best?

Espresso Shots

☕️ Binance Takes Kazakhstan 🇰🇿 🪙

Binance is heading East as it establishes a regulated digital asset platform in Kazakhstan.

Binance is setting up shop in a new region despite troubles abroad. The exchange has recently unregistered in the U.K., and pulled out of Cyprus and the Netherlands. Binance.us’s legal trouble in the States is still ongoing.

In Kazakhstan, Binance’s new platform will offer traditional crypto and fiat services as well as banking services, working in conjunction with Khazakstans’s Freedom-Finance Bank.

But Binance isn’t the only exchange to head into the region following regulatory troubles in the West. Gemini is also beefing up staff at its Singapore office, in addition to plans to establish an engineering division in India.

For now, it looks like Binance is saying goodbye to Europe and “Hello! Great Success! My Wife!” to Khazakstan.

☕️ Firms Follow BlackRock rock 🪨 🏢

Wisdom Tree and Invesco have followed BlackRock’s lead and are applying for Bitcoin spot ETFs.

This will be Wisdom Tree’s third attempt to secure a Bitcoin spot ETF after previous applications were shot down by the SEC. But this time will be different, they swear.

Invesco, on the other hand, had pulled the plug on its own efforts to secure a Bitcoin futures ETF in 2021, after rival ProShares secured one around the same time.

But now that the world’s largest asset manager is carving a path toward a Bitcoin spot ETF, it seems like a good time to get behind the big guy.

But this sort of follow-the-leader attitude has us asking Wisdom Tree and Invesco, “If BlackRock filed an application to jump off a bridge, would you submit one too?”

☕️ AI at the Grammys 🏆 🤖

The Recording Academy has announced that the 2024 Grammys will accept music that was created with AI assistance.

Though the rules still state that only an actual human can win and accept a Grammy, the academy will not turn away contributions that reached the highest echelon of music with the help of the cold, robotic hand of AI.

In an interview ahead of the Grammy’s, Recording Academy CEO Harvey Mason Jr said: “AI is going to absolutely, unequivocally have a hand in shaping the future of our industry. The idea of being caught off-guard by it and not addressing it is unacceptable.”

AI won’t ever be on stage, but it has found its place at the Grammys.

“No,” whispered Dennis DeYoung of Styx and writer of the 1983 hit single, “Mr. Roboto.” “It’s not right. It isn’t fair!”

Spilling the Beans

Why Bitcoin Is Surging 📈 🚀

Bitcoin’s been enjoying a sunny spot as of late.

It was at a low of $25,000 last week and has since shot past the $30,000 mark, as of writing.

They say you shouldn’t look a gift horse in the mouth, but that would put horse dentists out of business.

What we’re trying to say is that you can appreciate a good thing, but it’s always in your best interest to understand why that good thing is happening.

Now, Bitcoin’s resurgence is due to several factors.

Initially, it was due to the American banking crisis. Bitcoin has a well-deserved status as an inflation hedge, and as confidence in the American economy declined, the price of Bitcoin surged.

And yes, the banking crisis was certainly a part of getting Bitcoin to where it stands today.

But the flames have long since flickered out on the charred husks of Silicon Valley Bank, First Republic, and the like.

There certainly weren’t any bank closures last week. So, what accounts for this surprising, but welcome price hike?

Well, as we covered yesterday. Some of the biggest names in TradFi are all-in on Bitcoin.

Last week, BlackRock Financial applied for a spot Bitcoin trading ETF.

On Tuesday, EDX Markets, an exchange backed by Charles Schwab, Fidelity Investments, and Citadel Securities, became operational.

Now, EDX Markets only deals in four cryptos: Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.

And this Bitcoin focus is a trend to expect as TradFi giants become more involved in crypto.

Bitcoin is arguably the most well-established cryptocurrency, and it seems that TradFi is the most comfortable dealing with Bitcoin rather than less-established altcoins or fringe projects.

Notably, much of DeFi seems to feel the same.

Bitcoin has sucked away all of the liquidity from altcoins as investors focus on stability rather than get-rich-quick volatility.

Bitcoin currently occupies roughly 50% of the total crypto market, which is both exciting and scary.

This is exciting because it’s extremely promising for future price hikes, but it’s also scary because this sort of activity stands against the entire ethos of DeFi.

Crypto was created to do away with market-controlling monopolies and institutional monoliths.

If Bitcoin continues to dominate the market while backed by TradFi giants, the new boss is going to look a lot like the old boss.

And We Won’t Get Fooled Again.

So, what can you do about this?

Well, if you’re already holding BTC. You’re in a pretty sweet position. Recline your seat and enjoy the ride.

If you don’t own Bitcoin, maybe now’s not the time to buy. The saying isn’t, “Buy High, Sell Low.”

But in terms of the future of crypto itself, the space is undergoing some huge changes.

The titans of old finance may try to wrest control, but there are safeguards in place.

Self-custody, peer-to-peer utility, and the very nature of decentralized finance itself give more power to the individual investor than any financial system before.

Yes, things are changing, but they shouldn’t change too much. Crypto is nothing if not resilient and self-regulating.

It’s a confusing and conflicting feeling.

We want Bitcoin to do well, but not so well that it functionally becomes the sole cryptocurrency.

It’s probably much like Napoleon’s parents felt as they proudly watched their son, once bullied for being short, rise through the ranks of the French military before finally going off to rampage through Europe.

We’re not rooting for Bitcoin’s Waterloo, but c’mon, Bitcoin, those altcoins need to eat too.

Meme of the Day

Looks like negotiations are going well CZ. 😉

Crypto 101

Fork: This occurs in general programming but is particularly prominent in crypto.

In crypto, a fork is when a change in a blockchain’s protocol or basic rules is made, branching into two paths of development. If new programming isn’t backward compatible, then essentially two different products are created.

Forks sometimes result in the creation of new blockchains and cryptocurrencies.

The Last Sip

If AI has a shot at partially receiving a Grammy in 2024, that means decades of previous robot songs and sounds were snubbed. Here are our sad nominees.

3. R2-D2 beeps but it sounds like a sigh.

2. Furbies harmonizing.

1. When the Iron Giant said, “Superman,” to himself as he closes his eyes, coming to peace with his decision to sacrifice himself to save the town of Rockwell.

Stay Caffeinated,

Coffee & Crypto Team

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