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What is Status (SNT)?
Status basic info
TL;DR
- Bitcoin has experienced a phenomenal price increase and resilience in the past week.
- The main reasons for this are:
(1) Positive sentiment surrounding the approval of a spot Bitcoin ETF
(2) An increase in investments in Bitcoin asset funds
(3) Growing recognition of Bitcoin as a safe-haven asset
Over the past two weeks, Bitcoin has seen a remarkable resurgence, reaching heights not witnessed since May 2022. The cryptocurrency has witnessed a significant upswing in value, gaining more than 11% within 24 hours and over 30% in just under two weeks. As of the morning of October 24, Bitcoin's price stands above US$34,000, bringing its year-to-date gains to more than 90%. Since then, Bitcoin has displayed remarkable resilience, maintaining a price not once dipping below the US$33,000 mark, and even surging to breach the US$35,000 milestone. The reason behind this comeback can be attributed to a convergence of factors, with one of the most pivotal being the mounting optimism surrounding the approval and introduction of Bitcoin Exchange-Traded Funds (ETFs).
Source: Bitget.com
Spot Bitcoin ETF Optimism
Bitcoin Exchange-Traded Fund (ETFs) are financial products that offer a way for investors to gain exposure to Bitcoin's price movements without holding the cryptocurrency directly. The approval of such products by regulatory bodies would open the doors for a wave of institutional and retail investors to enter the crypto market.
One recent event in favor of Bitcoin ETFs that gained substantial traction is the U.S. Securities and Exchange Commission's (SEC) decision not to appeal the ruling pertained to Grayscale's lawsuit against the SEC. This has ignited hopes that a Bitcoin-related ETF could receive the green light from the SEC in the coming months. The decision not to appeal indicates a potential shift in the regulatory stance towards digital assets, which has had a positive impact on investor sentiment.
In addition to the SEC's decision, the cryptocurrency industry has been further encouraged by updates in filings made by various firms involved in the establishment of Bitcoin ETFs. These updates signify a commitment from these entities to navigate the regulatory landscape diligently and ensure compliance with the necessary requirements, which has boosted confidence in the eventual approval of these financial products.
A Surge in Bitcoin Fund Inflows
Fueled by the growing optimism surrounding the potential approval of a Spot BTC ETF, digital asset investment products, including Bitcoin futures exchange-traded funds, have witnessed the most substantial weekly inflows since July of the previous year. These funds attracted approximately US$326 million in new investments. The confidence in an imminent Bitcoin ETF approval has not only elevated Bitcoin's value but also spurred increased demand for alternative cryptocurrencies, often referred to as "altcoins."
Among these altcoins, Solana has been a prominent beneficiary of the influx of capital, as Solana-related products saw a remarkable US$24 million in funding. On the other hand, Ethereum (ETH), the second-largest cryptocurrency after Bitcoin, experienced outflows of US$6 million, indicating a shift in investor focus.
The majority of the inflows came from countries such as Canada, Germany, and Switzerland, with the United States accounting for 12% of the total. The data also indicates that the total assets under management in digital asset investment products have reached US$37.8 billion, marking the highest figure since May 2022.
Short Squeeze: Another contributing factor to this price surge is the phenomenon of a short squeeze. The sudden and unexpected surge in Bitcoin prices, often referred to as the 'god candle,' was propelled by approximately US$167 million in short liquidations, primarily on offshore exchanges. Those who had taken short positions in the range of US$33,000 or higher experienced significant losses due to the unexpected price movement. This short squeeze has added fuel to Bitcoin's upward trajectory.
Bitcoin as a Safe-Haven Asset
Bitcoin's recent price increase has come at a time when traditional financial markets are experiencing turbulence. While the broader stock market has been struggling, Bitcoin has been a beneficiary. Notably, Bitcoin's correlation with the SP 500 and Nasdaq stock indexes has waned, while its connection to gold prices has strengthened.
In times of geopolitical unrest and financial instability, investors are seeking safe assets that can protect their capital. Historically, gold has been the go-to asset in such scenarios, but Bitcoin is beginning to play a similar role. The data from 2015 onward indicates that Bitcoin responds positively to rising geopolitical risk.
The recent surge in Bitcoin's price is indicative of investors increasingly considering Bitcoin as a flight to safety.
Looking Ahead
This recent surge in Bitcoin price underscores the growing acceptance and enthusiasm for Bitcoin and the broader cryptocurrency market. Investors are eagerly awaiting the SEC's decision on Bitcoin ETFs, which has the potential to further reshape the digital asset landscape and attract more institutional and retail interest. While the road ahead may still have its challenges, this is a promising sign of the continued growth and evolution of the cryptocurrency market.
Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.
SNT supply and tokenomics
Uniqueness
Status, or SNT, is an open-source messaging platform as well as a mobile interface. This interface allows its users to interact with DApps running on the ETH blockchain. In return, users get over 2,000 DApps, can send and receive encrypted messages on a peer-to-peer basis and can make payments as well as utilize smart contracts.
The network itself uses Status Network Tokens, or SNT, that are the native currency on the platform. The goal of Status is to make the adoption of Ethereum DApps quicker and more efficient.
There is also a users-as-stakeholders network that allows the behavior of the network and its software to become aligned with the interests of a specific user. The contributors conduct research on a crypto economic model, and peer-to-peer technologies can ensure a healthy Status Network.
Token utility
SNT is an ERC-20 token for accessing and powering the decentralized services in the Status Network and application. It is also used to incentivize and reward network participants to run a node in order to ensure the app continues to work if all nodes in the Status-hosted cluster are down.
Token Utility:
- Help curate the communities that all Status users will see in the Community Directory by voting with your SNT.
- Play a part in prioritising Status’ feature backlog by upvoting the things you would like to see built next.
- Lock up SNT to generate your ENS subdomain to have a personalised and easy-to-use address.
- Has served, been used by and provided utility to the Status community since its launch in 2017.
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What is the development prospect and future value of SNT?
The market value of SNT currently stands at $167.87M, and its market ranking is #326. The value of SNT is not widely recognized by the market. When the bull market comes, the market value of SNT may have great growth potential.
As a new type of currency with innovative technology and unique use cases, SNT has broad market potential and significant room for development. The distinctiveness and appeal of SNT may attract the interest of specific groups, thereby driving up its market value.