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Crypto & Web3CoinDesk ·

Circle's Arc Blockchain Overrun by Memecoins on Launch Day

Circle's newly launched Arc blockchain experienced an unexpected start as memecoin traders flooded the network on its very first day of operation. The activity was largely speculative, with traders rushing to deploy memecoins on the new platform shortly after launch. However, the momentum proved short-lived, as most of those traders had already abandoned the network by Thursday morning. The episode highlights the persistent challenge blockchain platforms face in attracting sustainable, long-term use cases over short-term speculative activity.

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Crypto & Web3CoinDesk ·

Zcash Surges 17% Amid $345M in Crypto Liquidations

Cryptocurrency markets saw a wave of forced liquidations totaling $345 million, hitting traders hard across the board. Short sellers bore the brunt of the losses during this volatile episode. Zcash was a standout mover, surging 17% and alone accounting for $56 million in forced position closures. The scale of liquidations reflects the significant leverage many traders had taken on in the market.

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Crypto & Web3CoinDesk ·

Bitcoin Climbs as Fed Raises Rates for First Time Since 2023

Bitcoin gained 0.88% over 24 hours, reaching $76,621 following the Federal Reserve's first interest rate increase since 2023. The central bank's projections suggested only one additional hike may follow, offering some relief to markets. The broader crypto market rallied alongside Bitcoin amid the rate decision. Privacy-focused cryptocurrency Zcash surged 23% to a record high after investment firm Paradigm revealed it had acquired a stake in the project.

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Crypto & Web3CoinDesk ·

Bitcoin's Decline Draws Comparisons to Pre-Rate Hike Slump of 2022

Bitcoin is currently experiencing a drawdown that closely resembles its price position just before the Federal Reserve began raising interest rates in March 2022. The similarity has prompted analysts to question whether history could repeat itself in the current cycle. At that time, Bitcoin staged a brief relief rally before suffering deeper losses as rate hikes continued. The Fed's renewed focus on rate increases has reignited concerns about the impact of tighter monetary policy on risk assets like Bitcoin. Traders and investors are now watching closely to determine whether a temporary rebound might precede another significant decline.