Bitcoin has been moving sideways during the day after an increase in selling pressure brought back to mid-range of its current levels. The first cryptocurrency by market cap trades at $47,394 with a 5.4% profit in the daily chart.
Despite the cool off in the crypto market, sentiment has turned bullish. Managing Director of Midas Touch Consulting Florian Grummes recently supported the optimism thesis for the long term.
In an interview with David from Kitco News, Grummes reiterated his prediction on Bitcoin and claimed that the cryptocurrency will continue into uncharted territory in 2021.
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In that sense, he expects BTC’s price to rise above the $100,000 mark in the next six months on the back of fresh capital coming into the market.
Financial institutions could have bigger motivations to jump into BTC. The cryptocurrency is amongst the best-performing assets of the decade and, as Grummes said, there is “a lot of pressure” on these entities to show good performance on their investments.
The Managing Director for Midas Touch believes that Bitcoin was designed to perform well under the current economical conditions. He said:
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(…) lots of institutions still have to catch up there, and I think this was all implemented in the game theory of Satoshi (Nakamoto, creator of Bitcoin) and it’s playing out wonderfully.
In the short term, Grummes acknowledged that BTC’s price saw a “good” bounce over the past weeks. However, the bullish sentiment generated by this price action might be turning into “greediness”.
Therefore, he recommended caution to those looking for an entry and added:
I wouldn’t buy here on these levels. I’ll be waiting for a pullback, I’m pretty sure it will come towards maybe $34,000 to $38,000 something around that range it’s going to be interesting again.
Bitcoin Rallies Against The Odds, On Track To $1,000,000?
This potential pullback will provide more information about future price action. Grummes didn’t rule out a revisit to the yearly open around the $20,000 levels if BTC’s price is unable to hold support at $35,000.
On the contrary, if support holds at the mid-area of those levels, “$100,000 will happen within the next 6 months”.
Speaking on the factors driving the bullish price action, Grummes referred to the BTC miners’ migration from China. Despite a great portion of the network was “eliminated”, the cryptocurrency continued in a demonstration of “what doesn’t kill you makes you stronger”, the Managing Director said.
If Bitcoin does manage to climb to $100,000, it will be business as usual with high levels of volatility as people FOMO into the market. This could lead to another 50% pullback, and a return to previous highs, a similar scenario to the past months.
Eventually, the first cryptocurrency by market cap could trade at $1,000,000, at some point “during the next decade”, Grummes predicted. However, this will depend on the monetary policy adopted by central banks.
If these entities keep “printing money”, Bitcoin could absorb it to drive its price much higher. Short-term holders and FOMO are the two main factors that could stand in the way of a fresh rally.
Bitcoin has once again dipped back down below its $47K resistance point. This time, the price of the digital asset looks to have turned its attention downwards. While this downward correction continues, it is important to know where this correction might lead. Price dips are not a novel concept in bull markets. In fact, price dips are often expected following a rally in the price of any digital asset.
Related Reading | Why An 18% Drop In Bitcoin Could Still Be Bullish
This drop in price is usually the market taking a bit of a step backward. Not necessarily pulling out of the asset. Bitcoin had only recently broken $50K and did not rest at this position for long. So a small downward stretch will most likely lead to a bounce-back that will push the price higher back above $50K. With a consolidation point putting the digital asset at a reasonable position above $50K.
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Bitcoin Setup For New All-Time High
For bitcoin to hit a new all-time high as the market expects, some factors would play into this. Simply speaking, certain signals would need to be triggered for this price jump. Bulls still have majority standing currently, but it is no secret that the bears are determined to drag down the price of the asset.
BTC price set to hit new ATH if bounce-back leads past $49K | Source: Twitter
This has seen the price of bitcoin forming its first weekly bear after the run-up. As expected, bears are trying to straighten their hold on the market. Dragging BTC price down to test the $40K to $45K range again in the coming days. Current trends for the past 24 hours could very well put the market on track for this breakout level. Unless BTC sees a U-turn.
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Related Reading | Puell Multiple: The Bitcoin Metric That Says BTC Miners Aren’t Ready To Sell
While below $45K is more than likely, BTC price charging back up past $49K will very well see a break away from current bear trends. Not only will this totally weaken bears’ hold but will also trigger a run-up towards $60K.
Time To Buy?
Despite the recent dip, market sentiments have not moved much. The Fear & Greed Index shows that the market has now moved out of “extreme greed.” But generally has remained in greed, with a current score of 75.
Bitcoin’s current price is mostly a buying opportunity for investors in it for the long run. Also known as diamond hands. Losing over $3,000 in the space of 24 hours will usually see a price rebound. The weekend will most likely usher in an uptick in trading volumes that will see BTC recover above its crash point.
BTC price falls below $47K | Source: BTCUSD on TradingView.com
At this time of writing, BTC is trending around $46,600, with an overall market cap of $881 billion. The beginning of the week saw the price break out past $50K. Current trending patterns show the asset will usher in the weekend below $50K.
Featured image from The Independent, charts from Twitter and TradingView.com
This is a fun project that will help you understand Bitcoin keys better. You’ll need a pencil, paper, something to generate random output in binary (like a coin) and a computer. The purpose here is to get you doing something which will help you learn a lot, instead of just reading about pure theory. And it’ll be easy enough that you can just jump right in and follow along.
Don’t use this key for your actual bitcoin. Practice with this guide first.
When you make your real key — the one that will hold real bitcoin — you must make it on an air-gapped computer if you use this method. An air-gapped computer must have no capability of connecting to the internet. It’s not enough to just temporarily switch off your wifi connection on a regular computer if you are serious about security; clever hackers exist and can extract your private keys even if you are temporarily disconnected from the internet. At the end I’ll explain what to do next if you want to use this method to make your real keys.
Ok, let’s begin the project…
Step #1 – Make A Big, Random Binary Number
You can flip a coin 256 times, but it’s better and faster to use dice. You can buy casino-grade dice to ensure fair, random rolls. But it’s also okay to just save money and just use any old dice. Even if your dice are not perfect and have some bias, as long as you use several at a time, you will achieve sufficient randomness.
This is the procedure (one of many ways)…
Take four or so dice (e.g. from an old board game lying around).
Consider the numbers 1, 2 or 3 to be an output of zero while 4, 5 or 6 will be an output of one. This way you’ll get a binary output (only zeros and ones in the final result) with dice (e.g. roll a 3, record a zero; roll a 6, record a one).
Roll them and read left to right (consistency, decided beforehand, is important to maintain randomness). If it’s a close call about which is more to the left or right, just roll again.
Make 23 lines of 11 digits. The 24th line will only need three digits only. For each line, clump digits into groups of 4-4-3 (see image below) for easy reading and calculating. Keep your vertical columns aligned as much as possible and leave space between each row for manual calculations. This will all make sense later.
Like this example:
There are 256 binary digits here — 23 complete sets of 11 digits with the 24th row only needing three digits.
You’ll see later more clearly but, for now, understand that every 11 digits of binary will be translated to a mnemonic seed word. For the total 256 random binary digits, we can divide by 11 to get the number of words in the seed. But the answer to 256 divided by 11 is not a whole number; it’s 23.27. We can’t have 23.27 words in our seed.
We need eight more bits to have enough to make our 24th word. Once we have 264 bits in total, it all divides nicely into 24 sets of 11, yielding a 24-word mnemonic seed. As you’ll see later, these final eight extra bits will have their own important role to play.
A note on randomness:
You can make these 256 bits of random data any way you want, as long as it’s actually random. If it’s not random, someone might be able to reproduce the data. They would then be able to recreate your private key and could take all of your bitcoin. For example, if you make 256 bits of all zeroes (clearly not random), then someone will be able to guess your private key. Here’s proof: I generated a private key from that terrible all-zeroes randomness and found someone’s existing wallet. If it hadn’t already been emptied, I could have stolen the funds.
They clearly knew what they were doing because it was a small amount and they didn’t leave any coins there for long. It might have been a demonstration, who knows. But other people have made non-random private keys that were guessable and as a result lost their bitcoin. But don’t worry, if you make a truly random private key, someone would have to exactly repeat your binary dice rolls or coin flips and, thanks to exponential math, that’s not going to happen during the life of the universe.
Step 2 – Calculate The Checksum
These final missing eight digits need to be calculated to form what is called the “checksum.”
What is a checksum? A checksum is how computers know that you’ve made a typo when you enter things like your credit card number or bank account number. It’s a useful thing to have the computer warn you that you’ve made a typo in your Bitcoin private key!
To calculate the checksum you’ll need a Linux or Mac computer. If you have Windows 10, you can install the Ubuntu App (a version of Linux) from the Microsoft Store. Just search “Ubuntu” and install it. You’ll use the Ubuntu terminal to run the commands that follow. The app is a temporary session; no files are stored on the Ubuntu app. This means you’ll get a clean session each time you run it.
Windows users need to do this workaround and it’s a nuisance. I tried other workarounds but met with various issues.
Now that you have a terminal on your Mac, Linux orWindows 10 machine, type the command below. Replace my binary digits with your own random binary digits (note that this should all be one very long line, even though the way it’s displayed here may look otherwise)
echo 1010111100111000000011110110001111010111101001010010001011001111011110100011000010100011111100100010100011110001110101000110011111110000101000110001010111010001010011111110101001010011110110110110000001101111010011000001110101101001000010001000010000100111 | shasum -a 256 -0
It can be hard to interpret that if you’re not used to the command line. I’ll spell it out: type “echo” then a space, then your series of zeros and ones without any spaces, then a space, then the “pipe” symbol (usually below the <delete> key on most keyboards), then a space, then the “shasum” command, a space, hyphen “a”, a space, “256”, a space, another hyphen and then the zero digit. Then hit <enter>.
Explanation of the code: The “echo” command just repeats back whatever you type next. The pipe symbol (“|”) takes that output and passes it to the command to the right of the pipe symbol (it “pipes” the data from left side to the right side!). The recipient of your bit stream is the ”shasum” hashing command. “-a” is an option to specify which algorithm to use. “256” represents SHA-256 — famous in the Bitcoin world — which is our choice for “-a”. Finally, “-0” is an option to say that the input should be interpreted as binary data, not regular text (aka ASCII) data.
When I run this command my resulting hash is displayed under the command. It’s the line that starts with “b184”:
Now we can begin calculating the checksum. We take the first two digits of the hash output, in this case, “b” and “1”. These are hexadecimal numbers. In hexadecimal, instead of displaying digits from 0 to 9, we count up to 15 by using letters of the alphabet to represent numbers greater than nine:
0, 1, 2, 3, 4, 5, 6, 7, 8, 9, a, b, c, d, e, f
Similar to how playing cards count from 1 to 13 using their own substitutions:
So in my hash, my first digit, “b”, represents 11. And “1” in hexadecimal is the same as a “1” that we’re used to dealing with.
Now we convert these first two numbers to their four-digit binary representations. You can do this by referring to the chart below:
So we went from b and 1, to 11 and 1, and finally to 1011 and 0001.
These four-digit numbers are the checksum that we’ll add to our bits to complete our 24th word!
Add them to the 24th line to complete the final set of 11 binary digits. You now have 264 digits in total (see how the 24th line is completed in the diagram further down)
Step 3 – Converting Binary To Decimal
Each of the groups of 11 binary digits needs to be converted to a decimal number.
You can enter them into an online binary-to-decimal calculator, but only for this practice wallet. For your real wallet, I’ll show you how to do it manually.
A bit about binary. In a binary number system, there is only 0 and 1. The other digits you know (2,3,4,5,6,7,8,9) don’t exist. So counting upwards we start with 0, then 1, but the next number is unusual. There is no “2” available. So the next biggest number after 1 is “10”. Don’t read it as “ten,” read it as “one, zero.” In binary, “10” represents the “2” you are used to. The next number up after 10 (binary) is “11” (“one, one,” not “eleven”!). That’s equal to “3” in decimal. For the next number “12” is not possible because there is no “2” digit in binary; the next biggest number we can represent with just zeros and ones is “100” (“one, zero, zero”). That’s actually “4” in decimal. Then 101=5, 110=6, 111=7, 1000=8, 1001=9 and so on.
With eleven binary digits, the smallest possible number is zero (00000000000), and the largest is 2047 (11111111111).
We take each of these eleven binary digits on our page (each line) and convert them to decimal. You can do it manually or convert them from the command line in Linux, Mac, or the Ubuntu App.
For the number 10101111001, you’d type:
You’ll get an output of “1401”. Just change the 10101010101 to match each group of eleven digits and calculate its equivalent decimal number.
Doing this conversion solely by hand is harder, but possible.
On the top of the page, write this exact sequence of numbers from right to left, vertically in line with the binary digits below:“1024” above the first column of binary digits. Then “512” over the next column. Then “256”. And on and on, halving the number each time until you end up with “1” above the last (eleventh) column of your binary digits.
Now look at the your first row of binary digits. Wherever there is a “1”, you add the decimal number that’s directly above it and record it below the binary digit. Where there is a “0” you ignore the number above. Like this:
In this example, there’s a “1” under the 1024 column, the 256 column, the 64, the 32, the 16, the 8 and the 1.
Add the decimal numbers to get the total:
Now repeat this process for all 24 rows:
You now will have 24 decimal numbers that range between 0 and 2047.
Step 3 – Look Up The BIP 39 Words
The BIP 39 protocol (Bitcoin Improvement Proposal number 39) specifies 2048 different words, listed in alphabetical order. When this list is read in by code, each word can be identified by its ordered position in the list. The numbers you just calculated are used to look up their corresponding word. For example, the first row resulted in the number 1401 which equals the word “quality” in the ordered BIP 39 wordlist.
Zero is the smallest possible value you could calculate for a row (from binary 00000000000). In that case you would select “abandon,” the first word on the list.
The largest possible number is 2047 (from 11111111111). The correct word for that would be “zoo,” the last word on the list. This is word number 2047.
There’s one confusing wrinkle to be aware of: computers count items starting at 0. So the fifth item in a list is the computer’s number 4.
This extra confusion is unfortunate. The official specification of the BIP 39 words is on GitHub but the word list is displayed with line numbers that start with one instead of zero. So while “abstract” is the eighth word and is listed on line number 8, its actual BIP 39 numeric equivalent is 7.
My first line of 11 binary digits adds up to 1401 in decimal. So on the list in Github, I have to find the word on line 1402 (1401 + 1). That word is “quality”. Proceed to look up each decimal — taking care to add an extra 1 to your calculated result to match Github’s line numbering — and find the word for each of the 24 lines.
Well done if you’ve made it this far! You now have a valid 24-word Bitcoin mnemonic seed. You should now throw it away — unless you used the fully manual approach, you can’t use these for your bitcoin as they were not created in a safe environment!
Actually, before you do toss them, you could enter the words into a hardware wallet or software wallet and see if they are rejected. If it is rejected, you’ve made an error somewhere, which is very easy to do with this manual approach. If there’s any error anywhere, the checksum will not match and all wallets will signal an error immediately.
For Your Real Keys
You really need to do key generation on an air-gapped computer.
You can learn to build a cheap $10 Raspberry Pi Zero air-gapped computer here, buy one ready-made or if you have extra money you can build a custom desktop computer without any wifi or Bluetooth components. The Raspberry Pi option is very cheap but the computer is very slow, so be warned. It is excellent if you want to have many distributed keys in a multisignature setup.
Heard some FUD about air-gapped computers? See some anti-FUD here in Q&A number 23.
In addition to the safe generation of keys, you have to consider storage and duplication or distribution.
To drastically reduce your risk of attack or loss, the next level up is learning about multisignature wallets — something I teach in my mentorship program.
If you are in the single-signature key phase of storage (most people are), then you really should keep your seed in a hardware device. Most people let the hardware wallet (HWW)make their key and never verify that key on an air-gapped computer. That’s fine for most people. But if you are paranoid, you should verify that the key produces the public key and addresses you expect.
And now that you know how to securely make your own key (the totally manual, offline approach described above), you don’t have to trust the HWW to generate a good key. You first make a new key yourself and then instead of creating a new wallet on the hardware device, you “restore” a wallet instead and enter your newly calculated words into the device. The words are then “locked” in the HWW and protected by your PIN.
The hardware device is thus a digital safe for your private key.
You should never have just one copy of your private key. If you lose it, you will lose any bitcoin stored by the key in there. Technically there are no bitcoin in the device; they are on the blockchain. The hardware wallet, as I said, is a digital safe for your private key which is represented by the words you just made. To understand this a little better, see this article.
The code within the HWW uses mathematical functions to calculate your extended public key from the private key and then many individual public keys are mathematically derived from the extended public key. And then each of those can be used to calculate a collection of seemingly infinite addresses. Everything is downstream from the private key. You can enter your private key in a different device and reliably (mathematically) produce exactly the same collection of public keys and addresses. More details on this here.
The point of saying this is for you to appreciate that it’s as if the bitcoin are stored on the 24 words you created — not the hardware wallet. And you should very, very carefully back up those words and keep them safe from thieves and natural disasters. If you make copies and store them in different locations, then a fire in one location won’t cause you to lose all of your bitcoin because you’ll have a copy somewhere else.
Once you have your keys that you generated on an air-gapped computer and you’ve backed them up very securely, it’s time to think about how to pass them on to your heirs.
There are trusted third parties that can hold your keys or you can develop a plan in a trustless way — my preferred option. I am happy to assist people that need this.
This is a guest post by Arman the Parman. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
The euphoria seen across the cryptocurrency ecosystem over the past couple of weeks was tampered down on Aug. 26 as an early morning attempt by bulls to push the price of Bitcoin to $50,000 was soundly rejected.
Data from Cointelegraph Markets Pro and TradingView shows that following its rejection, the price of Bitcoin slid to a low of $46,457 before bulls managed to regroup and put a halt to the downturn.
Here’s what analysts are saying about Thursday’s price action for Bitcoin and a few things they are watching for as the digital asset is caught between a tug-o-war between bulls and bears.
BTC price could trend south for a while
The $50,000 price level was identified as a critical area for Bitcoin by market analyst and Cointelegraph contributor Michaël van de Poppe, who posted the following tweet outlining the significant support and resistance areas.
Couldn’t break the critical area for #Bitcoin.
Might be making a slight bounce here, but overall trend is south for a little.
Massive support around $44K.
Invalidation if breakout above $49K happens (and mostly, $51K). pic.twitter.com/d7gTuHKCvA
— Michaël van de Poppe (@CryptoMichNL) August 26, 2021
According to van de Poppe, Bitcoin is likely to spend some time in a downward trend following this latest pullback, but there is a significant amount of support at the $44,000 level that could protect it from further decline.
The $51,000 price level was noted by van de Poppe as an important price to overcome to invalidate the current bearish trend.
The analyst said:
“It’s obviously not a bear market, but the overall consensus is that emotions can take over. Especially if Bitcoin corrects some more towards $44,000 or potentially $42,000, the topic of ‘long bear cycle’ will start to take over.”
Traders expect the $46,200 support to hold
According to Whalemap, a crypto-focused data tracking service, the calls for a lengthy bear cycle are premature at best according to on-chain data.
As seen in the chart provided, the $46,200 support level is important as the next support level is found at $39,600. On-chain data also shows that there is a limited amount of selling volume between $46,200 and $57,400.
Whalemap analysts said:
“No reasons to get bearish just yet. Risk reward looks pretty positive if you look at on-chain data. A lot of UTXOs held unspent at $46,200 and not much selling pressure up until $57,400.”
Related:Grayscale Bitcoin Trust FUD is now over as the last GBTC unlock totals just 58 BTC
Profit-taking at $50,000 was expected
Crypto analyst Will Clemente issued some reassuring words on Aug. 24 when warned of a possible short-term bearish pullback based on exchange inflows and whale wallet activity.
I am short term bearish.
Drop in Illiquid Supply Ratio and coins moving onto exchanges. Also seeing some selling from whales. pic.twitter.com/nRhdB2GuSp
— Will Clemente (@WClementeIII) August 25, 2021
Thursday’s pullback in the market showed that Clemente’s concerns were warranted and the analyst followed up the previous tweet with, “I think the large portion of this short-term move is probably over.”
In a separate tweet, Clemente said:
“It’s not unexpected to see some profit-taking after the move up to $50,000, but watching the rate at which this is happening and more importantly, are sellers willing to start selling at a loss? Some clues can be offered by Realised P/L, SOPR, SOAB, ASOL, and Realised Gradient.”
The overall cryptocurrency market cap now stands at $1.999 trillion and Bitcoin’s dominance rate is 44.2%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Art Blocks is an Ethereum-based NFT project that generates original digital artwork pieces on the blockchain via an algorithm.
Secondary market sales have skyrocketed in August, with a slew of single NFT sales over $1 million worth of ETH each lately.
Much of the conversation around thelatest NFT market boomhas centered on profile picture collections such asCryptoPunksandBored Ape Yacht Club, which have collectively accounted for hundreds of millions of dollars of transaction volume in recent weeks.
But there’s another surgingNFTcollection with a very different kind of allure: Art Blocks.
It’s not a brand new project, but its impact in the NFT market has quickly accelerated: Art Blocks has spawned $403 million worth of trading volume so far in August, perCryptoSlam, which is more than 80% of its total since launching in November 2020.
Earlier this week, a single Art Blocks NFTsold for $3.3 million worth of ETH—a new record for the collection—and it’s one of 16 single pieces in the vast collection that have nowsold for $1 million or more each.
AnNFTis a blockchain-verified deed of ownership to a unique digital item, whether it’s an image, video file, or something else entirely. Art Blocks is a generative art collection that spans a wide array of different drops by varying artists—some are flat images or interactive 3D compositions—but they’re all united by a similar origin story: every final, one-of-a-kind image isgenerated by the Ethereum blockchain.
The artist creates an algorithm or script and deploys it onEthereum, experimenting with compositional elements to develop the project’s unique style before locking the code. During the minting process, the final image is generated from the script via the hash string or “seed” provided by the token. Each resulting image is different and created on the spot, sight unseen by the buyer, but there are consistent elements and repeating motifs that join them all into a cohesive project.
It’s a marriage of traditional art aesthetics and blockchain data that yields something that is undeniably crypto-native. The look and feel of each drop varies widely across the different Art Blocks projects, but some have been celebrated and hailed as fine art—and they’re selling for similarly towering prices, accordingly.
Blocks make bank
Tyler Hobbs’ Fidenza line, which spans 999 separate NFT pieces, has rapidly become one of the stars of the collection, accounting for four of the top five highest-priced Art Blocks secondary market NFT sales to date. The lowest-priced Fidenza piece currently listed on secondary market OpenSea is listed above $550,000 worth of ETH.
“Fidenza is by far my most versatile algorithm to date,” Hobbs wrote on the officialArt Blocks project page. “Although the program stays focused on structured curves and blocks, the varieties of scale, organization, texture, and color usage it can employ create a wide array of generative possibilities.” According toTexas Monthly, the Austin-based Hobbs spent months refining the algorithm behind Fidenza.
The Fidenza project dropped in June at a mint price of 0.17 ETH each—about $400 at the time—and sold out in 28 minutes. The pieces have quickly accelerated in value since. Here’s a good example from OpenSea:Fidenza #284was sold for 7.5 ETH ($23,400) on July 13, sold again on July 19 for nearly 18 ETH ($56,200), and then soldagainon July 24 for 20 ETH (about $62,500). It’s now listed at 215 ETH ($672,500).
Whether it sells for that much remains to be seen, but there is recent precedent for top-dollar Fidenza sales. Along with the $3.3 million sale on Monday, another Fidenza sold yesterday for 777 ETH ($2.4 million)from Kevin Rose, partner at VC firm True Ventures and co-founder of Digg. Rose is one of the most prominent Fidenza owners and admirers and has discussed the collection and interviewed Hobbs on hisModern Finance podcast.
Wow… just shocked. When I set this price (yesterday) I didn’t really expect it to sell this quickly. Thank you @tylerxhobbs for your fantastic work. I will certainly reinvest this in new and upcoming artists / donate a portion to charity. 🙏🤯 https://t.co/rbaJQ73D48
— KΞvin R◎se (@kevinrose) August 25, 2021
Fidenza isn’t the only Art Blocks collection to surpass the $1 million mark with single NFT sales.Dmitri Cherniak’s Ringersproject has seen six sales just above that mark, including three that transacted today. Kjetil Golid’s Archetype project has amassed a pair of seven-figure sales too, and Art Blocks founder and CEO Erick Calderon’s original Chromie Squiggle drop is responsible for the second-highest single Art Blocks sale at nearly $2.44 million worth of ETH.
“[It’s] incredibly validating, exhilarating, but also terrifying,” CalderontoldDecryptthis weekabout Art Blocks’ recent upswing, following a record-breaking Monday haul of $69.4 million worth of trading volume. “It’s all overwhelming, but we have an incredible team and are pouring our hearts into this. As a result, we are enjoying the success.”
Given the rate of Art Blocks’ growth, it’s understandable why Calderon would describe the recent surge as “overwhelming.” It’s a lot of money paired with a lot of sudden demand. The$429 million in trading volumeover the last 30-day span makes up the vast majority of what Art Blocks has generated to date, and isn’t far behind $497 million tied to CryptoPunks in the same span. (Both trail behind surging Ethereum crypto gameAxie Infinity, which has $852 million in NFT sales over the last 30 days.)
It’s worth noting that there are alotof Art Block NFTs out there. Currently, there are 140 collections under the Art Blocks Curated banner, which are selected by the project’s curation board, but there’s more. Art Blocks Playground is a banner under which existing “Curated” artists can release additional projects with less stringent oversight, while Art Blocks Factory is another banner with more relaxed requirements for participating artists.
All told, there are some 99,000 NFTs bearing the Art Blocks name, although the Playground and Factory banners typically don’t yield as much money in secondary market sales. For example, the cheapest availableArt Blocks Curated NFT on OpenSeais listed at 1.9 ETH ($5,900) while the most affordableFactory NFTis 0.1 ETH ($310).
The Art Blocks community has its share of outspoken enthusiasts and collectors. Rose is one of those notable fans who has repeatedly shared the project with his legion of followers and listeners, and there are others who appear to appreciate Art Blocks and/or generative artwork more broadly for the art itself. But amidst the recent surge in overall NFT market activity, there’s also a layer of speculative frenzy around Art Blocks right now.
Many Art Blocks drops until late have had relatively low minting fees, and it resulted in a lot of quickly-flipped NFTs. For example, the Fidenza NFT that sold for 1,000 ETH ($3.3 million) this week was previously sold for 0.58 ETH ($1,400) on the same day it was minted. Someone minted it comparatively cheaply and then turned a quick profit by selling it… and then that buyer resold it for 1,724x more ETH two months later. Given the demand and quick rate of appreciation, Art Blocks drops increasingly look like can’t-lose propositions for speculators.
The feeding frenzy around new Art Blocks drops has caused headaches for both its team and collectors, driving up Ethereum gas prices (the variable cost of transacting on the network) as prospective buyers desperately scramble to secure one of the generative pieces. “While we love to see the platform grow, we recognize that drop times have been a source of network-wide congestion and frustration for collectors,” the Art Blocks teamwrote in a July 28 blog post.
Recently, Art Blocks has experimented with other sale approaches, including the Dutch auction format, which starts with a higher price point and then gradually scales down until selling out. But it’s not slowing demand.Eccentrics 2: Orbits, a project by artist Radix that launched yesterday, sold all 500 pieces in about four minutes at 5 ETH (about $16,000) each, immediately generating $8 million in primary sales. Many of those pieces are nowlisted on OpenSeafor purchase, and some have already been sold and then re-listed by the buyer at a higher price.
A Dutch auction is an option that creates more upfront profit for the artist, but prices out some buyers. As the team wrote bluntly in that blog post, “That’s just how markets work. Unfortunately, we cannot collect everything.” Increasingly, that’s the case with Art Blocks NFTs, particularly as more and more headline-grabbing sales pop up and help propel secondary market demand. However, the wide range of projects and banners means that some Art Blocks NFTs aren’t anywhere near as expensive as those eye-popping examples.
As in the traditional art world, speculation comes with the territory—and it’s very mucha bull market in the NFT spaceright now. Art Blocks isn’t the only non-avatar generative NFT artwork project, plus many artists have profited from non-generative NFT artwork sales via marketplaces like SuperRare and Nifty Gateway.
Even so, the wild success of Art Blocks suggests the ongoing maturation of the NFT market, with a diverse array of highly successful projects reaching potentially unique audiences.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
Cryptocurrency strategist and trader Scott Melker is analyzing how the price of Bitcoin may move over the coming days and weeks.
Melker tells his 78,000 YouTube subscribers that Bitcoin (BTC) will likely face strong resistance just above the $50,000 level. The cryptocurrency analyst argues that the resistance level coincides with a key Fibonacci indicator number.
“As I said for a long time, $50,493 is 23.6% [Fibonacci] retracement. That’s of the entire move up from $3,800 to $65,000. That’s going to likely be strong resistance, we’re seeing that right now.”
Melker says that after rallying for five consecutive weeks, Bitcoin could correct once it encounters resistance.
“Listen, it would not be strange to get a bit of retracement after five weekly candles in a row. We’ve gone from basically under $30,000 up to $50,000 in just five weeks.”
The crypto analyst and trader also says that Bitcoin could potentially fall to around $42,000 if the $48,190 support level fails and especially if the flagship cryptocurrency crumbles below the 200-day moving average (MA) on the daily chart.
“We flipped this key new level of $48,190. You can see that was the resistance, the top of this move before the retracement. That’s flipped to support – we had to test two days as support, so we’ll see if that holds. That’ll be interesting. If that doesn’t, then of course we start talking about the 200 MA, which seemingly the whole community was talking about once again. And then still that potential drop down to the $42,000 area, which still has not happened. That would be a very strong signal to see the $40,000 to $42,000 area tested as support.”
Looking at the four-hour chart, Melker says that Bitcoin has formed an ascending channel, which is characterized by higher highs and higher lows.
“So this is neither a bull or bear flag – it’s just an ascending channel at the top of a move. Most people would expect this to break down and retrace a little bit. But that could literally just be down to the $47,000-$48,000 range.
Or an ascending channel can just turn out being a stairway to heaven. And in bullish moves, you kind of continue to climb up and you see ascending wedges and ascending channels broken to the upside quite regularly.”
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“Hold On for Dear Life” will become the first scripted television show about digital assets. Interestingly, Rob Weiss – executive producer of the renowned TV series “Entourage” – will direct it.
Virtual Assets Invade The TV Industry
According to a recent report, modern cryptocurrency culture will be the theme of a new TV show. Its name: “Hold On for Dear Life.” The series will not focus on Bitcoin or Ethereum but on non-fungible tokens (NFTs) – unique digital assets designed to represent ownership of a virtual item.
The plot of the show circles around a young tech founder – Mel. She launches an NFT called Aveer – just like the name of her best friend, who disappeared. During the 10 episodes, Mel faces many obstacles, such as eccentric friends and centralized powers, which she has to overcome to find her companion.
“Hold On for Dear Life” will also be the first show to tokenize portions of its net earnings through its own FDL token (For Dear Life). Taking a closer look, the capital letters of the TV series read HODL – one of the most popular investing strategies in the space encouraging investors to keep their digital asset holdings, instead of impulsively selling them.
Interestingly, the producer and director of the show is a well-known name in the industry – Rob Weiss. The American, who was nominated for three Emmy awards for producing the comedy-drama TV series – “Entourage,” commented:
“When I read the ‘Hold On for Dear Life’ pilot, I felt as if I had been transported into a fresh and unique universe where characters spoke about money in a whole new language. The world of currency is rapidly changing, and ‘Hold On for Dear Life’ will both illuminate and entertain at the same time.”
Weiss is also known among cinema fans for writing, directing, and producing “Ballers,” starring Dwayne Johnson “the Rock” and David John Washington.
A Movie about The GameStop Frenzy
As CryptoPotato reported in February, the billionaires Cameron and Tyler Winklevoss contemplated joining forces with the prominent Hollywood studio MGM to create a movie about the GameStop stocks mania.
The scrip would represent the recent story of the subreddit group WallStreetBets (WSB), who rebelled against the giant Wall Street hedge funds. The project’s plans included taking onboard New York Times’ best-selling author Ben Mezrich, whose book proposal “The Antisocial Network” would be the core of the movie script.
Gemini’s co-founders – the Winklevoss twins – would have the executive producers’ role via their establishment Winklevoss Pictures. Another producer would be the Oscar winner Aaron Ryder – the man whose projects include blockbusters such as “The Prestige,” “Memento,” “Donnie Darko,” and most notably “Arrival.”
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With bitcoin price up around 70% over the last five weeks, Bitcoin’s “coin days destroyed” metric isn’t reacting as normal.
The below is from a recent edition of the Deep Dive, Bitcoin Magazine‘s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.
The topic of today’s Daily Dive will be coin days destroyed, and examining the recent trends surrounding this metric. The metric “coin days” was first brought up as “bitcoindays destroyed” by Bytecoin on the forum BitcoinTalk back in 2011.
“Coin days” refers to the total number of days that a coin has remained dormant. If one bitcoin has not moved in exactly one year, then that coin would have accumulated 365 coin days. Similarly, if 365 bitcoin last moved one day ago, this would also be worth 365 coin days.
Thus, when looking at coin days destroyed, the metric takes all of the individual coins (technically: UTXOs) that moved during a given day and multiplies it by how many days those coins previously remained dormant. In aggregate, this number gives us coin days destroyed for a given day. Looking at this metric can give one a sense of the activity of older investors, and whether bitcoin being transacted across the network are from new or old holders.
Looking at coin days destroyed alone is not particularly useful as the day-to-day data is clouded by large outliers, but for the sake of context, below is the daily chart of coin days destroyed throughout the history of bitcoin:
When applying a seven-day moving average to the data, the data still isn’t very useful, but trends become increasingly visible. When using coin days destroyed data, applying moving averages with longer time frames gives investors a more clear look into investor/HODLer trends.
Throughout the history of bitcoin, large parabolic advances in price are met with large spikes in coin days destroyed as (rightfully so) investors realize some gains on their investment. The top of the 2013, 2017, and most recently 2021 saw large amounts of coin days destroyed, and this can be seen quite clearly below:
When looking at the 90-day rolling sum (different from moving average) of coin days destroyed, clear trends emerge over the history of bitcoin.
Interestingly enough however, is that unlike other bull runs that saw a blow-off top, the steep downtrend in 90-days coin days destroyed that followed the large spike in the metric and the local price top, we have seen price respond in a meaningful way, currently up around 70% over the last five weeks, yet the 90 days coin days destroyed metric continues to decline to near five-year lows.
Galaxy Digital has announced the launch of passive cryptocurrency indexes with Alerian. These passive crypto indexes are eight in number; they will be weighted equally and re-balanced monthly.
Galaxy Digital Holdings has partnered with S-Network Global indexes and Alerian to launch eight blockchain indexes focused on crypto.
Galaxy Digital Holdings Ltd is a financial services and investment management company that offers cryptocurrency and digital assets services. The Company also provides services in blockchain technology with business lines, including Principal investments, trading, advisory services, and asset management.
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According to an announcement made on August 24th, the duo developed two families of the crypto index.
They are referred to as the Alerian Galaxy Global Cryptocurrency-Focused Blockchain Indexes and Alerian Galaxy Global Blockchain Indexes. The eight offerings have their listing under Alerian Galaxy Global Cryptocurrency-Focused Blockchain Indexes.
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The passive indexes enable access to few selected investment vehicles and public companies. The companies and selected vehicles should be actively involved in the blockchain and crypto sectors like cryptocurrency miners.
Related Reading | Number Of Short-Term Bitcoin Holders Hits All-Time Low, How This Affects The Price
Other good examples are companies with crypto on their balance sheets, blockchains researchers, and infrastructure tech developers. The indexes are equally weighted and rebalanced monthly.
Comments From Galaxy Digital Head of Asset Management
Steve Kurz, Partner and Head of Asset Management at Galaxy Digital, said:
” We have a goal to keep on empowering investors with institutional, seamless, and innovative access points. We intend to channel it to the upcoming digital assets ecosystem”.
The Alerian Galaxy Global Cryptocurrency-Focused Blockchain CRYPTE Index is one of the eight latest products. It tracks crypto companies like Argo Blockchain, Square Inc., Voyager Digital, Coinbase, and Marathon Digital holdings, etc.
Although, the Alerian Galaxy Global Blockchain Index (BCHAIN) is tracking Facebook, Microsoft, Mastercard, Grayscale’s Bitcoin, and Ethereum Trusts. Other indexes include CRYPTP, BLKCHN, and BLKCNP.
Galaxy has increased its offerings early this month by partnering with Bloomberg to create a Defi Index tracking various projects. These projects include Aave (AAVE), Uniswap (UNI), and Compound (COMP).
In 2018, Galaxy had a partnership with Bloomberg to launch a Crypto Benchmark Index. The Index aims to track the liquidity of the top 10 cryptos.
Related Reading | Why An 18% Drop In Bitcoin Could Still Be Bullish
According to an August 18th report, Galaxy posted a loss of $175.8 million in Q2. The Galaxy CEO and founder Mike Novogratz expressed that he isn’t disturbed by the development.
He referred to factors like blue-chip strategic partnerships and increased counterparty trading volume as reasons to be bullish. He added that the goal was simply an adoption.
“We believe that the adoption battle will over time be a stickier, hard, and more financially impactful compared to short-term price moves.” – Mike Novogratz
At the time of writing, cryptocurrency market is down by 2% | Source: Crypto Total Market Cap on TradingView.com
Featured image from The Block, chart from TradingView.com
Microsoft has patented a cryptocurrency tool that would allow developers to create ledger-independent tokens in a simple way.
Microsoft Patents Token Creation Service
Within the patent filing, Microsoft describes a method for creating a “ledger-independent token service.”
The service provides various token templates, each of which represents a “type of physical or digital asset.” Each template also sets controls and functions for the token type in question.
In the patent, Microsoft notes that there is currently a “lack of standardization” for distributed ledger tokens, especially in situations that involve cross-ledger transactions and token reuse. By contrast, the approach described in the patent would allow developers to write code for tokens on different platforms all at once.
The patent seems to primarily be aimed at developers using enterprise platforms rather than public blockchains. The patent mentions notable projects in that category including Hyperledger Fabric, Quorum (Enterprise Ethereum Alliance), R3 Corda, and Chain Core.
Will It Become a Real Product?
It should be noted that not all patents turn into actual products, meaning that Microsoft’s most recent application will not necessarily evolve into a real service that is publicly available.
However, Microsoft has historically expressed interest in interoperability. In 2019, it announced its involvement in the Token Taxonomy Initiative, another token standardization project. It has also joined enterprise blockchain initiatives such as Hyperledger and the Enterprise Ethereum Alliance.
That history suggests Microsoft may actively be working on a product, although the company has not stated this explicitly.
Disclaimer: At the time of writing this author held less than $75 of Bitcoin, Ethereum, and altcoins.
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