The Bitcoin mining community has experienced a 50% increase in revenue through mining

The linked mining ecosystems have been fighting for their very existence for the last year, and their efforts are starting to pay off as Bitcoin (BTC) begins to show signs of a modest bull run. Mining incentives and transaction fees contributed to an income boost for the Bitcoin mining community that was almost fifty percent higher during the first month of 2023.

Since October 2020, Bitcoin mining income fell below $14 million for the first time on December 28, 2022, when it reached $13.6 million. Because of this, in addition to increasing energy costs caused by geopolitical tensions, mining businesses were put under a significant amount of financial strain, which ultimately led to some of them going out of business.

As indicated in the following graph, the cryptocurrency mining business had a revenue increase of fifty percent measured in terms of United States dollars. This gain occurred as Bitcoin remained in an advantageous position for a sustained recovery.

Within a month’s time, earnings from bitcoin mining almost doubled from its starting point of $15.3 million on January 1 to approximately $23 million.

The hash rate is continually breaking new records as more miners join the effort to provide power to and ensure the safety of the decentralised Bitcoin network. At the time this article was written, the Bitcoin hash rate was somewhere in the neighbourhood of 300 exahashes per second.

However, in an effort to find a solution to the problem, efforts are being made to source greener energy to power Bitcoin mining operations. A mining business in Malawi, which is a landlocked nation in southern Africa, has only lately begun tapping into a supply of stranded energy there.

Erik Hersman, co-founder and CEO of Gridless, made the following statement in reference to the initiative’s overall impact: “The power developer had built these powerhouses a few years ago, but they weren’t able to expand to more families because they’re barely profitable and couldn’t afford to buy more metres to connect more families. Now, because of this initiative, they are able to expand to more families.” Because of our agreement, they were able to instantly purchase 200 more metres, which enabled them to connect more households.

In addition, the Bitcoin mining operation has a minimal impact on the surrounding ecosystem since it is entirely powered by hydroelectricity derived from rivers.


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Crypto Exchange FTX Lists Dollar Spot Index Perpetual Futures

Cryptocurrency exchange FTX has listed perpetual futures linked to the US dollar spot index, and it is expanding its business scope to the field of foreign exchange derivatives trading.

FTX’s new perpetual contracts will be based on the so-called FTX Dollar Spot Index, which is designed to track the movements of four major currencies, including the Euro, Yen, Canadian dollar, and British Pound against the U.S. dollar.

The FTX USD Spot Index (FTXDXY) is calculated as follows: 35.7*EURUSD^-0.6*JPYUSD^-0.2*CADUSD^-0.1*GBPUSD^-0.1

On the other hand, the foreign exchange market volatility has increased significantly recently. Driven by the tightening of monetary policy and the rapid interest rate hike in the United States, the US dollar is currently at its highest level since 2022, especially after the Federal Reserve raised interest rates several times.

The US dollar index broke through 111 level, refreshed a new high since 2002 and is currently hovering around the all-time high of 111.76.

Non-US currencies generally fell. As the dominant currency in global trade and finance, the fluctuation of the US dollar will broadly impact the global economy.

Given that Bitcoin (BTC) is still seen as a risk asset against inflation, many traders believe that a weaker dollar is needed for Bitcoin to rise.

Conversely, the pound fluctuated amid the chaotic rollout of Prime Minister Liz Truss’ economic plan.

The British government, on September 23, unveiled its most radical tax cuts since 1972 before making a U-turn by ditching its plan. The administration attempted to reduce taxes on workers’ wages and businesses to boost the economy as it heads into recession, which triggered investors to dumped sterling and government bonds.

Image source: Shutterstock


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Crypto Expert Nouriel Roubini Develops Tokenized Assets, Aiming at Replacing USD

Crypto-basher economist Nouriel Roubini is developing a tokenised asset designed to counter the volatility of the U.S. dollar due to inflation, climate change, and more.

According to Bloomberg’s report, Roubini is developing a tokenised U.S. dollar backed by a physical asset in partnership with the Dubai-based firm Atlas Capital Team he co-founded.

Rubini says:

“We recognized that America’s dollar reserve currency could be at risk and are working to create a new instrument that’s effectively a more resilient dollar,”

The launch token will be issued later this year. Unlike traditional cryptocurrencies, which are usually not backed by any asset, the token is backed by U.S. real estate, primarily in the form of a REIT.

A real estate investment trust, also known as a real estate trust, real estate trust; is an investment vehicle similar to a closed-end mutual fund, but the investment object is real estate. Mainly through the securitisation of real estate and the fundraising of many investors, ordinary investors without huge capital can participate in the real estate market with a lower threshold and obtain the profits brought by real estate market transactions, rents and appreciation.

Therefore, REITs are less affected by short-term US Treasuries, gold and climate change.

Roubini, who has publicly denounced Bitcoin, Ethereum and blockchain technology for years, sees the product as an opportunity to provide value to people who have no access to the dollar and whose national currencies are devalued.

Image source: Shutterstock


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Is Shiba Inu overheating after SHIB price gains 75% in two weeks?

Shiba Inu (SHIB) looks poised to undergo sharp price corrections after rallying nearly 75% in almost two weeks.  

SHIB price rallied to mid-January highs 

On Monday, the meme-token climbed to $0.00002961, its best level since Jan. 18, amid renewed buying interests across the cryptocurrency market. Before the retracement, SHIB’s price had crashed by almost 80% from its record high of $0.00008870.

Nonetheless, the wild price recovery also came closer to triggering two classic sell signals. First, SHIB’s daily relative strength index (RSI), a technical indicator that fluctuates in the range between 0 and 100 to signal whether an asset is overbought (RSI>70) or oversold (RSI<30), showed nearly-overbought conditions after rising to 60.

Last, SHIB’s daily relative volatility index (RVI), which measures the standard deviation of low and high prices, dropped below 50, a sell signal. In a “perfect” scenario, traders close their long positions after the RVI drops below 40. At press time, it came out to be near 48.

SHIB/USD daily price chart featuring RSI and RVI signals. Source: TradingView

Additional bearish signals

More cues for a possible SHIB price correction came from three other technical indicators. First, the Shiba Inu token’s current upside momentum showed signs of weakening near its 50-day exponential moving average (50-day EMA; the red wave in the chart below), at around $0.00002761.

Second, the SHIB price’s ongoing uptrend accompanied lower volumes, i.e., they came out to be nowhere closer to the volumes witnessed during the token’s October 2021 price rally. That showed scant liquidity in the Shiba Inu market, making it harder for traders to execute buy and sell orders at desired levels.

As a result, a lower liquid market tends to witness wilder price swings in either direction.

SHIB/USD daily price chart. Source: TradingView

Third and last, SHIB price neared a key pullback level of $0.00003358 that coincided with the 0.618 Fib line of the Fibonacci retracement graph drawn from the $0.00000507-swing low to the $0.00007971-swing high. In conjugation with alarmin RSI and RVI reading, the $0.00003358-level posed as an ideal derisk zone for traders looking to secure interim profits.

Short the SHIB rally?

Norok, an independent market analyst, wrote that the latest SHIB price rally has brought out “excellent short opportunities.” He cited a fractal from November 2021 that showed SHIB undergoing a fake recovery rally of nearly 42% in two days but followed it with a 70% downside move later.

SHIB/USD daily price chart. Source: Norok, TradingView

“Each rally, far from being the fresh breath of hopium owners desire, has provided excellent short opportunities for months,” Norok explained, adding:

“This one is a clear pullback to test and hold Resistance and a good opportunity to add to the short where profit was taken at the start of January.”

The statements appeared as bearish positions lost millions of dollars during the recent SHIB price recovery. For instance, data from Coinglass showed over $10 billion worth of liquidations for traders of Shiba Inu-backed investment products, out of which around 75% were short entries.

Nonetheless, Binance’s 1000SHIB futures product, which holds 1,000 Shiba Inu tokens per contract, looked slightly skewed toward bears, with its long/short ratio coming out to be 0.93 on a 24-hour adjusted timeframe.

In detail, the Long/Short Ratio represents the amount of net long positions opened against the net short positions opened. A reading above 1 indicates that most open market positions are skewed long. Conversely, a reading below 1 indicates that the market bias is currently skewed toward shorts.

1000SHIB Long/Short Ratio. Source: Coinglass

Meanwhile, the long/short ratio of SHIB futures on FTX also was near 0.97, suggesting the market’s bearish outlook on a 24-hour adjusted timeframe.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.