coindesk.com
Good morning.
Here’s what’s happening:
Prices: As Asian trading begins, bitcoin maintains above $30,000 despite a minor drop, while Ether trades lowerInsights: For investors and others touching the technology world, AI is the latest shiny object. Is their fascination premature?
Prices: Eyes on the Expiry
As Asia opens for trading, bitcoin has still held past the $30K mark at $30,323, flat over the past 24 hours, according to CoinDesk data. Ether, meanwhile, is trading at $1,860, down 1.3%.
Shaun Fernando, Chief Risk Officer at Deribit, told CoinDesk in a note that bitcoin’s ‘max pain’ point, or a part of the market when option holders will experience the most financial loss, while option sellers can be the ones who profit the most, is currently at $26K, which should alleviate some of the downward pricing pressure after the coming options expiry.
“With an impressive open interest of over $350 million at the 30k strike, the approaching quarterly expiration promises an exhilarating conclusion, carrying the potential for price turbulence amidst diverse gamma hedging strategies,” Fernando said.
Fernando noted that ether has witnessed substantial institutional selling activity, but its implied volatility remains lower than bitcoin.
Until then, all eyes are on Friday when the quarterly options expire.
Biggest Gainers
| Asset | Ticker | Returns | DACS Sector |
|---|---|---|---|
| Stellar | XLM | +0.4% | Smart Contract Platform |
InsightsAI's Hype Doesn't Reflect the Reality
Critics of the digital assets industry say it’s buzzword- laden and unsustainable, always chasing the next new trend without much thought to its sustainability.
And for the most part, they are right.
Over the weekend, 8btc, one of China’s first crypto publications, announced it was abandoning the field entirely and pivoting to primarily covering AI and the metaverse.
Venture Capitalists, seemingly bored of blockchain and crypto, have found a new interest in AI. PitchBook data shows that venture capital funding for crypto is down 80% in the first quarter of 2023, from $12.3 billion to $2.4 billion. PitchBook’s data also shows that AI startups raised $1.6 billion this quarter, and another $10 billion in deals have been announced but have yet to close.
For all the hype the AI bulls have for the technology, after putting it through its paces, AI is still somewhere between the peak of inflated expectations and trough of disillusionment on a hype cycle. Its slow, expensive, and 15-20% of what comes out of ChatGPT’s artificial mouth is a hallucination.
Certainly, there are some similarities between the hype cycles of AI and enterprise blockchain.
Enterprise blockchain was supposed to unlock billions in value through efficiencies, but those that tried to implement it weren’t all that impressed, so much so that IBM dismantled most of its blockchain team because of low revenue, and Microsoft phased out its Azure-based blockchain cloud services.
Even at the height of blockchain mania, the prelude to the Covid bull market, there wasn’t the same fervor as there is with AI. One would think that given the disappointment of the enterprise blockchain bubble bursting, stakeholders would have learned their lesson about enthusiastically embracing new technology.
But here we are.