Tag: Bitcoin

Bitcoin (BTC) is the first cryptocurrency created by Satoshi Nakamoto in 2008. With the underlying technology blockchain, bitcoin has redefining money in terms of money form, money issuance standard and money movement. Bitcoin has a limit of 21 million coins and uses proof-of-work (POW) consensus. In some sense, bitcoin removes our reliance on central banks and traditional financial institutions that we have to trust on. Bitcoin brings monetary freedom.

Position: #Long #Short
Predictions: #Predictions
Analysis: #Analysis

How Bitcoin will react to US Government Shutdown

by Blockchain NewsOctober 1, 2023

Amidst an imminent government shutdown due to Congress’s stalled federal appropriations bill for the fiscal year beginning October 1, 2023, the financial sector holds its breath. The potential shutdown’s ripple effects are poised to stretch beyond traditional markets, reaching into the cryptocurrency sphere, particularly Bitcoin, according to Greg Cipolaro, Global Head of Research at NYDIG.

Federal Shutdowns: An Emerging Norm

The occurrence of federal shutdowns is becoming less sporadic. Over the years, 10 instances have been recorded, with the most recent one in 2018 – 2019 lasting a record 35 days, costing the government an estimated $5 billion. It’s difficult to predict a shutdown’s duration, as it largely hinges on lawmakers’ negotiations. However, the increasing political polarization hints at a longer standoff this time around.

Credit Rating Agencies on High Alert

Moody’s, holding a AAA credit rating on the US, sounded the alarm on September 27, 2023, cautioning against adverse impacts of a shutdown. This echoes past sentiments, like the 2011 S&P downgrade amidst debt ceiling debates, spotlighting weakened US fiscal policymaking. The persisting discord among political factions continues to unsettle credit rating agencies, potentially foreshadowing broader financial market disruptions.

Bitcoin ETF Awaits SEC Green Light

A direct casualty of the possible shutdown is the delay in the Securities and Exchange Commission (SEC) approval for a spot Bitcoin ETF. The furlough would significantly trim down SEC’s staff from 4,604 to a mere 437, stalling critical financial product approvals. Notably, the SEC has already postponed decisions on most ETFs, anticipating a prolonged shutdown. The spotlight is on the iShares Bitcoin Trust from BlackRock, among others, awaiting SEC’s nod, which now hinges on the resumption of federal operations post-shutdown.

Law Enforcement and Financial Regulation: The Dual Impact

Two pivotal areas within the crypto realm stand to bear the brunt: law enforcement, chiefly the Department of Justice (DOJ), and financial regulation, predominantly the SEC. While the DOJ is slightly insulated with 84% of its 114,521 staff exempted from furloughs, SEC faces a more stark reality. The severely reduced staff could mean a longer wait for the crypto industry on crucial financial product approvals, particularly the Bitcoin ETF.

Market Reactions Amidst Uncertainty

Bitcoin nudged up by 1.9% over the week despite the ETF decision delay, possibly finding a silver lining in the US’s fiscal woes. Conversely, traditional hedges and markets felt the heat. Gold dipped by 2.9%, the S&P 500 by 1.3%, and the Nasdaq Composite by 0.2%. The bond market too saw a slump, while oil bucked the trend with a 2.3% rise, reflecting a mixed bag of market reactions as the shutdown looms.

Disclaimer & Copyright Notice: The content of this article is for informational purposes only and is not intended as financial advice. Always consult with a professional before making any financial decisions. This material is the exclusive property of Blockchain.News. Unauthorized use, duplication, or distribution without express permission is prohibited. Proper credit and direction to the original content are required for any permitted use.

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Why Bitcoin May Crash Below $20,000 Soon

by Blockchain NewsSeptember 8, 2023

Predicting Bitcoin’s Price Through Historical Data

Historical trends and data points often shed light on potential future movements, especially in the volatile world of cryptocurrencies. September, based on our comprehensive analysis, traditionally poses challenges for Bitcoin, the leading digital currency.

In September 2022, Bitcoin experienced a decrease of -3.09%. This decline was the most notable for a September month since the year 2014. Projecting forward, if 2023 follows this previous trend, we can anticipate the cryptocurrency to touch around the $25,107 mark by the close of the month. However, widening our lens to account for an average September decline, which sits at roughly -9.22% over the considered years, this figure might recede even further to approximately $23,530.

Amplitude analysis serves as another tool to gauge the potential future trajectory of Bitcoin. Revisiting the data from September 2018, a standout month with the lowest amplitude since 2014 (with the exclusion of 2015 and 2016 due to their respective price increases), Bitcoin’s price underwent a fluctuation of about 19.51%. Taking into account the current month’s opening price of $25,927, should Bitcoin tread the amplitude path of 2018, a downward spiral to a figure around $20,867.67 is conceivable. Current market conditions, which many analysts view as unfavorable, inject a layer of uncertainty to Bitcoin’s near-term outlook.

Diving deeper into historical amplitude patterns, the average for this parameter over the years hovers around 27.21%. Based on this percentage, a plausible scenario might see Bitcoin nearing a concerning valuation of $18,860 in the foreseeable future.

Technical Analysis

Bitcoin’s price trends remain under intense scrutiny by both traders and investors. Currently, its value hovers around the $25,800 mark. A notable setback from the bullish momentum of the 10-daily moving averages emphasizes the significance of the $26,000 support level for Bitcoin. This threshold is pivotal for traders; any falter here could trigger an downtrend.

Source: Binance

Adding to the intricacies is the crucial $25,000 support line. Bitcoin has displayed commendable tenacity since August 17th, consistently staying above this mark. Notably, the upward trending line for Bitcoin also converges around this $25,000 zone. Should the currency break this line, the implications could be severe. Without any clear support immediately below, Bitcoin might be vulnerable to a sharp dive, potentially spiraling down to the $20,000 range.

Given these dynamics, it’s essential for investors to remain vigilant, harnessing both historical insights and in-depth technical analysis to steer through the capricious nature of Bitcoin’s valuation.

Disclaimer & Copyright Notice: The content of this article is for informational purposes only and is not intended as financial advice. Always consult with a professional before making any financial decisions. This material is the exclusive property of Blockchain.News. Unauthorized use, duplication, or distribution without express permission is prohibited. Proper credit and direction to the original content are required for any permitted use.

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Tagged : #BTC / $20 / 000 / Analysis / Bitcoin / Crash

Bitcoin September Curse? Predicting BTC Price Using Comprehensive Historical Data

by Blockchain NewsSeptember 8, 2023

September’s Historical Downtrend

Over the nine-year period from 2014 to 2022, Bitcoin‘s September performance has largely been bearish. The closing price in September was often lower than the opening price, indicating a general downtrend for the month.

Bitcoin Price Year-by-Year Analysis

2014: Opened at $479 and closed at $391, a decline of 18.37%.

2015: Opened at $230 and closed at $236, a slight increase of 2.6%. This year is an exception to the general downtrend.

2016: Opened at $570 and closed at $608, an increase of 6.67%. Another exception to the downtrend.

2017: Opened at $4,734 and closed at $4,326, a decline of 8.62%. This year saw a significant intra-month drop of nearly 40%.

2018: Opened at $7,015 and closed at $6,597, a decline of 5.96%.

2019: Opened at $9,593 and closed at $8,298, a decline of 13.49%.

2020: Opened at $11,658 and closed at $10,778, a decline of 7.55%.

2021: Opened at $47,118 and closed at $43,834, a decline of 6.97%.

2022: Opened at $20,049 and closed at $19,429, a decline of 3.09%.

Average September Decline

Excluding the two years (2015 and 2016) where Bitcoin saw an increase in September, the average decline for the remaining years is approximately 9.03%.

Soruce: TradingView

Year-by-Year Amplitude Analysis:

For Bitcoin, the month of September has historically been characterized by significant price fluctuations. A detailed examination of the past nine years reveals the amplitude of these price movements, providing a clearer picture of the cryptocurrency’s September behavior. Below uses formula: (High – Low) / Low.

2014: Bitcoin experienced an amplitude of 36.16%, swinging between a low of $365 and a high of $497.

2015: The amplitude was more subdued this year, recorded at 10.31%, with the price oscillating between $223 and $246.

2016: Bitcoin’s amplitude stood at 10.95%, as the price moved between $566 and $628.

2017: This year saw a dramatic amplitude of 67.43%, with Bitcoin’s price ranging from $2,973 to a high of $4,979.

2018: The amplitude was 21.62%, as Bitcoin’s price varied between $6,094 and $7,411.

2019: Bitcoin experienced a significant amplitude of 41.97%, with the price fluctuating between $7,714 and $10,949.

2020: The amplitude for this year was 22.60%, as Bitcoin’s price moved within the range of $9,825 and $12,065.

2021: Bitcoin’s amplitude was recorded at 33.81%, with prices swinging between $39,573 and $52,956.

2022: The amplitude stood at 25.47%, as Bitcoin’s price varied between $18,157 and $22,781.’

Below uses formula: (High – Low) / ( (High + Low)/2 ).

2014: The amplitude was 28.91%, with Bitcoin prices ranging between a low of $365 and a high of $497.

2015: Bitcoin’s amplitude stood at 10.14%, oscillating between $223 and $246.

2016: The amplitude for the year was 10.77%, as Bitcoin’s prices moved from a low of $566 to a high of $628.

2017: Bitcoin experienced an amplitude of 50.15%, with prices fluctuating between $2,973 and $4,979.

2018: The amplitude for the year was 20.18%, as Bitcoin’s prices varied between $6,094 and $7,411.

2019: Bitcoin saw an amplitude of 33.33%, with prices ranging from $7,714 to $10,949.

2020: The amplitude for the year stood at 20.41%, as Bitcoin’s prices oscillated between $9,825 and $12,065.

2021: Bitcoin’s amplitude was 28.28%, with prices moving between $39,573 and $52,956.

2022: The amplitude for the year was 22.22%, as Bitcoin’s prices varied between $18,157 and $22,781.

Average September Amplitude

The average amplitude for Bitcoin in September over the years 2014 to 2022 using the traditional formula is approximately 29.92%. Using the alternative formula, the average amplitude is approximately 24.91%

Current Bitcoin Data

Bitcoin kicked off September 2023 with an opening price of $25,927. Despite reaching a monthly high of $26,429, the cryptocurrency experienced a dip, recording a low of $25,333. At the time of writing, Bitcoin is trading at $25,850.

As September progresses, Bitcoin, market analysts have projected potential low points for Bitcoin by the close of September.

Predicting the Future Based on Historical Trends

Historical Declines: Delving into past performances, Bitcoin’s most pronounced September decline was -3.09% in 2022. If 2023 mirrors this trend, Bitcoin could potentially settle around the $25,107 mark by month-end.

The average decline over the years hovers at approximately -9.22%. If this average is indicative of this year’s performance, Bitcoin might conclude September near $23,530.

Amplitude Analysis: Utilizing the alternative amplitude formula, Bitcoin’s amplitude for September 2018 was discerned to be approximately 19.51%. The most restrained September amplitude was recorded in 2015 at 10.31%. If this month’s price movements align with this subdued amplitude, predominantly in the downward trajectory, Bitcoin’s valuation could diminish to $23,240 by the end of September.

Factoring in the average amplitude over the years, which stands at approximately 27.21%, a worst-case scenario could see Bitcoin descending to a concerning $18,860 by month’s close.

However, Bitcoin’s price has the potential to defy historical trends and close September above $25,927, akin to the positive performances observed in 2015 and 2016.

While these projections provide a lens into historical trends, the inherently volatile nature of cryptocurrencies suggests that actual outcomes may vary. Investors and traders are advised to exercise prudence and remain abreast of market developments.

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Tagged : Analysis / Bitcoin / HISTORICAL DATA / PREDICTING BTC PRICE

Why Grayscale’s SEC Victory Is Unlikely to Benefit Bitcoin and Crypto Markets in the Long Run

by Blockchain NewsAugust 30, 2023

Key Points

* Grayscale’s SEC victory led to a surge in Bitcoin prices but may not offer long-term benefits.

* Market reactions to Grayscale’s moves have been inconsistent.

* Grayscale’s trusts inherently limit crypto circulation.

* Most Grayscale trusts unlikely to convert into ETFs.

* Declining trading volumes signal caution.

* Broader market implications for companies like BlackRock and Fidelity.

The U.S. Court of Appeals for the District of Columbia Circuit ruled in favor of Grayscale Investments on August 29, 2023, ordering the SEC to review Grayscale’s Bitcoin ETF application. While this led to an immediate surge in Bitcoin prices, several factors suggest caution for long-term market implications.

Broader Market Implications

The court’s decision is poised to send ripples through the financial industry. Firms such as BlackRock, WisdomTree, and Fidelity, which have expressed interest in launching Bitcoin ETFs, could find the legal terrain shifting either for or against them, contingent on the SEC’s future actions and any ensuing appeals. In the wake of legal victories for Ripple XRP and Grayscale, this trend could serve as a catalyst for other companies, like Coinbase, that are currently embroiled in legal battles with the SEC.

Market Reaction: A Historical Perspective

Grayscale initially submitted an application to transform its Grayscale Bitcoin Trust (GBTC) into an ETF in October 2021. The market’s initial response was negative, yet Bitcoin soared to a record high of $69,000 on November 10, 2021, before experiencing a 70% decline thereafter. This inconsistent market reaction suggests that the recent surge in Bitcoin and cryptocurrency prices may not be reliable indicators of sustained long-term market trends. The surge in Bitcoin prices may be a trading strategy aimed at liquidating short positions.

Grayscale’s Trusts and Crypto Circulation

Grayscale’s GBTC, launched in 2013, is the world’s largest Bitcoin fund traded over-the-counter with over $14 billion in assets under management. Grayscale’s trusts inherently limit the circulation of cryptocurrencies. These trusts are not redeemable, effectively locking up assets. Grayscale offers multiple trusts related to a variety of cryptocurrencies, including: Aave (AAVE), Algorand (ALGO), Avalanche (AVAX), Basic Attention Token (BAT), Bitcoin (BTC), Bitcoin Cash (BCH), Cardano (ADA), Chainlink (LINK), Compound (COMP), Cosmos (ATOM), Curve (CRV), Decentraland (MANA), Ethereum (ETH), Ethereum Classic (ETC), Filecoin (FIL), Horizen (ZEN), Litecoin (LTC), Livepeer (LPT), MakerDao (MKR), Polkadot (DOT), Polygon (MATIC), Solana (SOL), Stellar Lumens (XLM), Uniswap (UNI), Zcash (ZEC).

Limited Scope for ETF Conversion

While the court ruling mandates a review of Grayscale’s Bitcoin ETF application by the SEC, it does not guarantee its eventual listing. Most other cryptocurrencies under Grayscale’s management are unlikely to convert into ETFs. If the SEC allows these trusts to be redeemable, it could be detrimental due to increased circulation, especially when these assets are priced lower than market rates.

Regulatory Uncertainties

Judge Neomi Rao emphasized that the SEC’s initial denial was “arbitrary and capricious,” particularly when Bitcoin and Bitcoin futures are “closely correlated.” Both parties have 45 days to appeal, and the SEC has not yet indicated whether it will appeal the ruling. If Grayscale prevails and the SEC does not appeal, the court would specify how its decision should be executed, potentially instructing the SEC to approve the application or revisit it on other grounds.

Declining Market Volumes

The overall cryptocurrency market is exhibiting signs of fatigue, marked by a significant decline in trading volumes. Notably, the Bitcoin market is currently seeing its lowest monthly trading volumes since the historical price peak in November 2021. For instance, Binance’s Bitcoin spot trading volume plummeted from $195 billion in September 2022 to a mere $28 billion last month. This sharp decline serves as a cautionary signal for investors who may be anticipating a long-term market uplift from Grayscale’s legal victory, especially considering its potential to increase the Bitcoin supply.

Conclusion

While the immediate market reaction to Grayscale’s SEC win has been positive for Bitcoin, several factors suggest caution. From the inconsistent historical market reactions to the inherent limitations of Grayscale’s trusts and declining market volumes, the long-term benefits of this legal victory for the crypto market remain uncertain.

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Tagged : Analysis / Bitcoin / Crypto Markets / Grayscale / SEC

SpaceX dropping $373M worth of Bitcoin led to crypto market crash

by Blockchain NewsAugust 18, 2023

SpaceX, the renowned aerospace technology firm, reportedly wrote down the value of its Bitcoin holdings by a total of $373 million in 2021 and 2022, according to an Aug. 17 report by The Wall Street Journal. The report suggests that SpaceX may have sold its entire Bitcoin stash, although it remains unconfirmed whether the entire $373 million worth of Bitcoin was liquidated.

The Wall Street Journal, after reviewing the firm’s financial documents, reported that SpaceX’s expenses amounted to roughly $5.2 billion in 2022. Additionally, the company spent $5.4 billion in 2021 and 2022 on acquiring property, equipment, and research and development.

Elon Musk, the CEO of SpaceX, had publicly announced in 2021 that the firm had acquired a certain amount of Bitcoin. This announcement followed a U.S. Securities and Exchange Commission filing that revealed Tesla, another Musk co-founded company, had plans to purchase $1.5 billion of the cryptocurrency. This move likely played a role in Bitcoin reaching a then-record price of over $43,000.

Tesla’s second-quarter 2023 earnings report indicated that the company had sold all but $184 million of its Bitcoin holdings. Specifically, Tesla liquidated over 30,000 BTC in the second quarter of 2022, amounting to approximately $936 million, which is roughly 75% of its initial $1.5 billion Bitcoin investment.

After the publishing of the news, the price of Bitcoin experienced a significant drop of around 10% within 10 minutes, causing the cryptocurrency’s value to fall to $25,166 on Binance. The OKX perpectual bitcoin price even plunged to $24,098. This price drop has been attributed by some in the Twitter community to reports of SpaceX’s Bitcoin write-down and potential sale. Others have linked the decline to external factors, such as China’s Evergrande Group filing for Chapter 11 bankruptcy in New York and apparent bearish pattern in technical analysis of bitcoin price.

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Tagged : Analysis / Bitcoin / Crypto Market Crash / Spacex

Gemini’s Weekly Update: PayPal Launches PYUSD Stablecoin, Coinbase Unveils Base Layer-2, and Aptos Announces Microsoft Partnership

by Blockchain NewsAugust 12, 2023

In Gemini’s latest “Weekly Market Update” released on August 11, 2023, several significant developments were highlighted in the cryptocurrency industry, marking a week filled with innovation and collaboration.

As of Friday, August 11, 2023, PayPal has become the first significant US financial firm to introduce its own US dollar-backed stablecoin, PayPal USD (PYUSD). The extension of PayPal’s crypto services, which currently include trading in Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), and Litecoin (LTC), includes this latest addition.

Stablecoins are now the “killer application” for blockchain, according to PayPal Senior Vice President and General Manager of Blockchain, Crypto, and Digital Currencies Jose Fernandez da Ponte, and are “something we cannot just sit out.”

Other Notable Market Updates

Inflation for July 2023 Was Lower Than Expected: Inflation for July 2023 was lower than expected, with both the headline and core consumer price statistics recording a minor rise of 0.2%. This results in annual increases for the corresponding categories of 3.2% and 4.7%. Market experts predict that interest rates will likely stay steady for the rest of the year as a result of the lower inflation statistics.

Coinbase’s Base Layer-2 Network Goes Live: Coinbase launched its Ethereum layer-2 network, Base, to the general public, with data showing $175 million USD locked on the blockchain as of Friday. This follows Coinbase’s better-than-expected second quarter earnings of $708 million USD in revenues.

Aptos Surges on Microsoft Partnership: Aptos (APT), a layer-1 proof-of-stake blockchain, saw a ~15% surge in price on Wednesday after announcing a partnership with Microsoft to work on AI and web3 products and services. The collaboration will leverage Microsoft’s Azure OpenAI services.

Bitcoin and Ether Continue Range Bound: Bitcoin traded in the $29k to $30k USD range for the second week, possibly boosted by PayPal’s stablecoin launch. Ether has been struggling to move back above its 100-day moving average of $1,850 USD.

Crypto Custody Explained

The update also touched on the importance of crypto custody, outlining different options for investors, including self-custody via private keys, partial custody with third-party assistance, and third-party digital asset custody. The latter offers high levels of security and is suitable for individual and institutional investors.

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Tagged : Analysis / Bitcoin / Coinbase / Ethereum / Gemini / PayPal / PYUSD

Weekly Crypto Market Performance Review Amid FTX Implosion

by Blockchain NewsNovember 13, 2022

The digital currency ecosystem is trading with massive volatility that was engineered by the collapse and eventual bankruptcy of the FTX derivatives exchange over the past week. The combined crypto market cap has slumped to $837.47 billion, one of its lowest points over the past year.

FTX Token (FTT) visibly induced the breakdown in prices dropping by over 92.33% in the trailing 7 days period to $1.78 according to data from CoinMarketCap. The coin’s collapse mimicked that of Terra (LUNA) which shed 12 months’ gains in just about a week when the TerraUSD (UST) algorithmic stablecoin collapsed earlier in May.

Investors in the industry have lost trust in FTX even before its bankruptcy filing, a move that stirred the withdrawals of funds that precipitated the trading platform’s liquidity crunch. Seeing the bleak future of the company, FTT holders had to sell off the coins on other exchanges also.

How the Top 10 Coins Performed for the Week

Every digital currency in the top 10 list has performed relatively poorly over the past week to date. Bitcoin is changing hands at $16,655.55, down 21.50% in the week-to-date period. Bitcoin even dropped as low as $15,682.69 in the course of the week, its lowest point in close to 2 years.

Ethereum (ETH) met a similar fate and slumped 23.63% over the week to $1,237.73. Binance Coin (BNB) is trading at $278.36 atop a 20.41% slump. XRP, Polygon (MATIC), Dogecoin (DOGE), and Cardano (ADA) also recorded more than a 20% drop over the week under review.

Despite the onslaught that has been recorded thus far, the ecosystem is still not out of the woods as the ripple effect of the FTX collapse is bound to be revealed in the coming weeks. Investors will need to err on the side of caution until the coast is adjudged to be clear.

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Tagged : Analysis / Bankruptcy / Bitcoin / CRYPTO MARKET / Ethereum / FTX

Is Bitcoin Gearing Up to Exit the Current Bottom?

by Blockchain NewsNovember 1, 2022

Since Bitcoin (BTC) has been trading above the psychological price of $20K, Glassnode has released its weekly on-chain report titled “Hammering Out The Bottom,” scrutinizing the stakes and the risks that may lay on the road ahead.

The market insight provider stated:

“Bitcoin has rallied back above the $20k level this week, pushing off a low of $19,215, and trading as high as $20,961. After consolidating in an increasingly tight range since early September, this is the first relief rally in many months.”

Source: Glassnode

Bitcoin was up by 6.6% in the last seven days to hit $20,626 during intraday trading, according to CoinMarketCap.

With the realized price being the average acquisition price per coin, Bitcoin is presently approaching the underside of the realized price set at $21,111. A break above it would signify notable strength.

Source: Glassnode

Redistribution of wealth continues to happen

During the Bottom Discovery phase, diminishing investor profitability usually triggers the redistribution of coin wealth because weaker hands capitulate into severe financial pain.

Using the UTXO Realized Price Distribution (URPD) indicator, Glassnode noted that more consolidation and duration may still be required in the current bear market because coins changing hands are lower than the 2018-2019 bottom discovery phase where 22.7% of total supply was redistributed.

The market insight provider pointed out:

“Performing the same analysis in 2022, we can see that around 14.0% of supply has been redistributed since the price fell below the Realized Price in July, with a total of 20.1% of supply now having been acquired in this price range.”

Even though Bitcoin is getting ready to exit the bottom, the bear-to-bull transition has not completely formed because of the lack of a convincing influx of new demand.

Meanwhile, crypto trading firm Cumberland recently highlighted that Bitcoin volume remained absolutely massive given that BTC derivatives worth approximately $50 billion were being cleared on crypto exchanges daily, Blockchain.News reported.

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Tagged : #BTC / Analysis / Bitcoin / Crypto / Glassnode / Investment / Market / PRICE ACTION

Are Bitcoin Miners Earning Minimum Reward as Hash Price Plunged to Historic Lows?

by Blockchain NewsOctober 24, 2022

The revenue of Bitcoin (BTC) miners continues to dwindle, given that hash price has nosedived to historic lows of $66,500 per Exahash, according to Glassnode.

The market insight provider explained:

“The Bitcoin Hash Price has reached an all-time-low of $66,500 per Exahash. This means that BTC miners are earning the smallest reward relative to hashpower applied in history, and likely puts the industry under extreme income stress.”

Source: Glassnode

Therefore, this indicates that miners are earning the lowest revenue in Bitcoin’s 13-year journey.

Furthermore, this is happening as the mining difficulty in the Bitcoin network hits an all-time high (ATH). Glassnode added:

“BTC mining difficulty just reached an ATH of 158,208,051,864,292,013,637,632. Previous ATH of 152,947,196,320,564,012,646,400 was observed on 23 October 2022.”

Source: Glassnode

Mining difficulty is a metric of how hard or easy it is to generate new Bitcoin and is often impacted by the number of machines plugged into the network.

High mining difficulty implicates enhanced network security because more computing power is required to mine a similar number of blocks as before.

78% of BTC Supply has been immobile for More Than 6 Months

With the immobile Bitcoin supply reaching ATH, it seems some hodlers have remained steadfast in their objective.

Market analyst Will Clemente pointed out:

“A new all-time high 78% of Bitcoin supply has not moved in at least 6 months. Pretty remarkable in the face of the worst macroeconomic backdrop in recent history, geopolitical uncertainty, and WW3 fears. There is a group of seriously convicted hodlers out there.”

Source: Glassnode

Hodling is one of the favoured strategies in the Bitcoin market because coins are stored for future purposes other than speculation.

For instance, hodled BTC recently hit a 5-year high, Blockchain.News reported.

Meanwhile, Bitcoin price was hovering around $19,315 during intraday trading, according to CoinMarketCap.

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Tagged : #BTC / Analysis / Bitcoin / Crypto / Cryptocurrencies / Investment / Market / Mining / PRICE ACTION

Crowd Sentiment towards Crypto Turns Bearish as Inflation Data Looms

by Blockchain NewsOctober 11, 2022

The crypto market has not yet been able to find the right footing based on tightened macroeconomic factors and Russia’s invasion of Ukraine.

As a result, crowd sentiment toward cryptocurrencies has turned negative. Market insight provider Santiment explained:

“With Bitcoin, Ethereum, and most altcoins ticking down slightly Monday, the crowd’s bearish outlook continues to be evident. Green bars indicate more FUD than usual toward an asset, and red bars indicate more FOMO.”

Source: Santiment

Based on Santiment’s data, fear, uncertainty & doubt (FUD) continue to rock the crypto market, prompting a bearish outlook. Bitcoin (BTC) and Ethereum were down by 1.89% and 2.95% to hit $19,067 and $1,278, respectively, during intraday trading, according to CoinMarketCap.

This trend is being witnessed ahead of the release of the U.S. inflation data scheduled for October 13.

Riyad Carey, a research analyst at Kaiko, pointed out:

“There seems to be some jitters and derisking across all markets as we approach Thursday’s CPI release.”

Carey added:

“Bitcoin is moving closely with equities and I’d expect that to continue as there haven’t been many crypto-specific catalysts in recent weeks. I also expect significant volatility on Thursday, with a move up or down depending on the inflation figure.”

The Bureau of Labor Statistics is set to unveil the consumer price index (CPI) for September, with some economists expecting a 0.3% monthly increase and the annual gain to jump to 8.1%.

The federal reserve (Fed) has been on a roller coaster ride of increasing interest rates to tame runaway inflation, but this has been detrimental to the crypto market.

This trend has prompted concern from various players. For instance, James Butterfill, the head of research at CoinShares, stated:

“We believe there is a building narrative that central banks are beginning to make policy errors. Several of our clients have made the point that they don’t want to buy Bitcoin right now, but as soon as the Fed pivots, they will add to positions.”

The UNCTAD recently pointed out that the Fed should ease interest rate hikes because this could trigger a global recession, Blockchain.News reported.

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Tagged : Analysis / Bitcoin / Cpi / Crypto / Cryptocurrency / Ethereum / Fed / Inflation / INTERESTRATE