Recent research shows that central banks worldwide are buying gold to stay ahead of inflation, with 85 sovereign wealth funds and 57 central banks collectively managing $21 trillion. While gold has long been considered a store of value and inflation hedge, Bitcoin has outperformed it this year. In 2022, central banks made record gold purchases with net acquisitions of 1,136 tonnes, with China and Turkey being the most aggressive buyers.

Analytics firm Glassnode reports that BlackRock's Bitcoin spot ETF application has led to an increase in the share of Bitcoin supply held and traded by US entities. This surge in US-based Bitcoin ownership is a potential inflection point in supply dominance if the trend continues. Meanwhile, Asian-based market participants appear to be distributing their Bitcoin stacks.

Bitcoin's price has recovered and is now back above the $30,000 support level after a brief dip over the weekend. The cryptocurrency is currently trading at $30,500 with a market capitalization of $592 billion and a trading volume of $15 billion.

Bitcoin's price is currently holding steady above the key support zone of $30,000, with some positive signs indicating a potential increase in the near future. To start a fresh increase, BTC must settle above the $31,000 and $31,400 levels.

Bitcoin's price has remained stagnant as bulls and bears battle for control, with volatility across the market decreasing. Despite some gains in recent weeks, the cryptocurrency has recorded a 2% loss over the past week, while the rest of the sector has experienced steeper losses.

Bitcoin's network is becoming more decentralized as the number of wallets holding at least one bitcoin reaches an all-time high. However, the network is facing increased load due to the popularity of ordinals. Binance.US is experiencing a lack of dollar liquidity, resulting in a discount in the trading of Bitcoin and Tether.

Bitcoin held above US$30,000 in Tuesday morning trading, with Standard Chartered predicting the token will reach US$120,000 by the end of 2024. Other top 10 non-stablecoin cryptocurrencies also moved higher, with Matic token leading the rally.

Bitcoin (BTC) has been consolidating below the mid-point of the 2021-22 cycle at $30,000, with some on-chain activity metrics cooling off while others, such as money transfer volumes, are picking up. This suggests positive momentum and growing adoption for the asset, according to a recent report from Glassnode.

Bitcoin developer Entero Positivo has launched an open-source tool called "BIP39Colors" that allows users to hide the key to their coins inside a series of colors. The tool can convert a BIP39 mnemonic phrase into a set of colors and vice versa, making it possible to store a private key in plain sight without arousing suspicion.

The possession of private keys is crucial in the world of Bitcoin, and many crypto wallet startups are working to simplify the process of storing them. A new open-source tool has been developed that encodes seed phrases into a series of eight color blocks, making them more visually appealing. However, it is important to keep these color-coded seed phrases secure and not share them publicly to avoid the risk of theft. Reports suggest that some cryptocurrency investors have had their funds stolen after sharing their seed phrase on social media platforms like Reddit. To stay informed about the latest crypto news and insights, subscribe to Blockworks' free newsletter or join their Telegram group.