ReportWire

Tag: Bitcoin

  • Bitcoin ETF Outflows Hit $120M as BTC Price Slipped by $4K Daily

    Bitcoin ETF Outflows Hit $120M as BTC Price Slipped by $4K Daily

    [ad_1]

    After a few days of hovering above $66,000, bitcoin (BTC) has dropped to a low of $63,500 amid heightened volatility.

    Coincidentally (or not), the amount of outflows from the United States spot Bitcoin exchange-traded funds (ETF) market on April 24 hit $120 million.

    BTC Plunges by 4.5%

    Data from CoinMarketCap shows that BTC lost roughly 4.5% of its value within a few hours, plummeting from $66,700 to $63,500. Although the leading cryptocurrency had recovered slightly by the time of writing and was changing hands at $64,000, it was still in the red and down 3.8% from its value the previous day.

    Bitcoin’s fall from the $66,000 level dragged a large portion of the crypto market down, wrecking over 91,000 traders with liquidations running into $208 million, per data from CoinGlass. Short liquidations totaled $32.18 million, while long positions were $176 million.

    Notably, some large-cap altcoins, including Avalanche, Shiba Inu, Toncoin, Solana, and Cardano, plunged even more than BTC did, recording losses above 7% each.

    Spot ETF Outflows Hit $120M

    Wednesday saw investors withdraw more than $120 million from spot Bitcoin ETFs, breaking a three-day streak of positive flows. Every other ETF, except Fidelity’s FBTC and Ark Invest’s ARKB, received zero inflows, bringing the total amount received by the funds to $9.8 million.

    BlackRock’s IBIT broke its 71-day inflow streak, halting its ascent on the list of the top ten ETFs with the longest inflow streaks. IBIT earned its spot on the elite list on Tuesday after experiencing inflows non-stop since its launch on January 11.

    On the other hand, Grayscale’s GBTC continued its outflows, with more than $130 million withdrawn on Wednesday. The ETF, which has witnessed consistent outflows since its launch, now holds around 302,000 BTC worth over $19.3 billion with a volume of $526 million.

    Meanwhile, analysts have urged the crypto community to remain calm on days when ETFs record zero inflows, as this is a regular occurrence. Bloomberg ETF analyst James Seyffart said the vast majority of exchange-traded funds would have no inflows on any given day, and it is nothing to be worried about.

    SPECIAL OFFER (Sponsored)

    LIMITED OFFER 2024 for CryptoPotato readers at Bybit: Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!

    [ad_2]

    Mandy Williams

    Source link

  • Negative Nirvana? Decoding The First Bitcoin Funding Rate Dip Of 2024

    Negative Nirvana? Decoding The First Bitcoin Funding Rate Dip Of 2024

    [ad_1]

    The recent Bitcoin halving event, which cut the block reward for miners in half on April 20, 2024, has sparked a wave of optimism in the cryptocurrency market. While a brief dip in a key futures metric hinted at potential short-term bearishness, overall market indicators suggest a bullish trend taking hold.

    Analysts at Kaiko, a market data provider specializing in crypto derivatives and futures, reported a shift in Bitcoin’s funding rate leading up to the halving. The funding rate is a fee paid between long and short position holders in futures contracts.

    A negative rate signifies that short positions are compensating long positions, potentially indicating a bearish outlook. Notably, Bitcoin’s funding rate dipped into negative territory for the first time this year on April 18th, just two days before the halving.

    Bitcoin Bounces Back With Renewed Bullishness

    However, this short-lived bearishness seems to have been overshadowed by a broader sense of optimism. Following the halving, Bitcoin’s funding rate swiftly recovered and currently sits at a positive 0.0051. This suggests a return to the status quo where long positions are incentivized, reflecting a more bullish market sentiment.

    Further bolstering this positive outlook is the uptick in Bitcoin’s Open Interest (OI), a metric that represents the total amount of outstanding futures contracts. Despite a dip last week, OI has since rebounded to over $17 billion, indicating continued investor engagement in the Bitcoin market.

    Bitcoin is now trading at 64.250. Chart: TradingView

    Halving Impact Exceeds Historical Trends

    Perhaps the most intriguing finding from Kaiko’s analysis is the suggestion that this halving event might be having a more positive impact on Bitcoin’s price compared to previous halvings.

    At the time of the report, Bitcoin was up 2.8% since the halving, exceeding the price increases observed immediately after the 2012, 2016, and 2020 halving events. Despite a slight price correction in the following days, Bitcoin remains nearly 3% up since the halving.

    However, analysts caution against drawing definitive conclusions from this initial data. The cryptocurrency market is inherently volatile, and short-term fluctuations are to be expected.

    Some experts point to historical trends where price increases following a halving event were often followed by periods of consolidation or correction. The true impact of the halving on Bitcoin’s long-term price trajectory might not be fully evident for several months.

    Bullish Sentiment Fueled By Macroeconomic Factors

    Beyond technical indicators, some analysts believe that broader macroeconomic factors are also contributing to the current bullish sentiment surrounding Bitcoin.

    The ongoing global inflationary pressures and geopolitical uncertainties have driven investors towards assets perceived as hedges against inflation. Bitcoin, with its finite supply due to the halving mechanism, fits this profile for some investors.

    Additionally, the increasing institutional adoption of cryptocurrency is seen as a positive sign for Bitcoin’s long-term prospects. Major financial institutions are actively exploring ways to offer Bitcoin exposure to their clients, suggesting a growing level of confidence in the asset class.

    Featured image from Pexels, chart from TradingView

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    [ad_2]

    Christian Encila

    Source link

  • Analysts Identify Key Scenario For Bitcoin Hitting $100,000

    Analysts Identify Key Scenario For Bitcoin Hitting $100,000

    [ad_1]

    Prior to the Bitcoin Halving event, BTC’s price saw considerable instability, but it has since rebounded, reaching the $66,000 level, triggering bullish predictions from top crypto analysts regarding the coin’s future path.

    Captain Faibik, a crytocurrency analyst and trader, has emerged with an intriguing prediction, underscoring a narrative that could potentially propel the price of Bitcoin to the coveted $100,000 mark in the upcoming months.

    Bitcoin Poised For A Notable Rally To $100,000 

    According to Captain Faibik, Bitcoin has managed to hold the $60,000 support level in the wake of bullish investors in the market. As a result, the largest crypto asset by market cap is currently making a strong comeback.

    These bullish investors, according to Faibik must reclaim the crucial $72,000 resistance level in order to see a major rally to the $100,000 price level. This scenario acts as a ray of hope for the cryptocurrency community, igniting speculations and influencing projections about Bitcoin’s potential for future growth. Given the anticipated impact of the Bitcoin Halving and bulls, the $72,000 level could be realized in the short term.

    Possible rally to $100,000 | Captain Faibik on X

    The expert previously highlighted that the Bitcoin weekly candle closed above the Exponential Moving Average (EMA) 10, demonstrating that the bulls are still very much in charge of the market. Following the Descending Channel break out in October last year, BTC Bulls has firmly secured the weekly EMA10, prompting the crypto analyst to put his next price target for the digital asset at $100,000.

    Faibik also noted that the daily Relative Strength Index (RSI) for Bitcoin has emerged from a falling wedge pattern. This breakout suggests that a 15% to 20% bullish rally in Bitcoin’s value is on the horizon.

    Meanwhile, in the daily timeframe, a bullish flag formation is underway, and in the event of an upward breakout from the bullish flag, Faibik anticipates a new all-time high for Bitcoin by May.

    Is A $1.5 million Price Level Possible For BTC?

    One of the most bullish predictions for Bitcoin this year came from Ark Invest Chief Executive Officer (CEO) Cathie Wood. The CEO foresees the digital asset to rise by over 2,000% reaching a whopping $1.5 million by 2030.

    During an interview in Hong Kong, Wood reiterated her projections for BTC, which were supported by a thorough investigation that included institution surveys and evaluations of market volatility.

    She stated:

    I have been asked this question from different angles, and our analysis from multiple perspectives indicates that by 2030, Bitcoin could rise to $1.5 million. This price prediction is based on a survey of institutions, using a discount rate and volatility analysis.

    Initially, Wood’s forecast for Bitcoin was estimated at $600,000 in the next six years. However, considering the effect of the Bitcoin Spot Exchange-Traded Funds (ETFs), she now believes the coin has the potential to hit $1.5 million.

    Bitcoin
    BTC trading at $66,567 on the 1D chart | Source: BTCUSDT on Tradingview.com

    Featured image from iStock, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    [ad_2]

    Godspower Owie

    Source link

  • Is A $72K Bitcoin Surge On The Horizon? Glassnode’s Latest Analysis Points To An Answer

    Is A $72K Bitcoin Surge On The Horizon? Glassnode’s Latest Analysis Points To An Answer

    [ad_1]

    Recent insights from Glassnode’s cofounders, shared under their X (formerly Twitter) account ‘Negentrophic’ have sparked interest in Bitcoin market dynamics, leading to a promising stabilization and possible price surge.

    Market Sentiments And EMA Trends

    With Bitcoin’s value recently wavering below the $70,000 mark, a detailed analysis from the cofounders suggests that a strong support level around the $62,000 50-day Exponential Moving Average (EMA) could set the stage for a significant rebound.

    This crucial support level indicates a strong buying sentiment, indicating the market’s confidence in the cryptocurrency’s value and a potential resistance against further declines.

    Using the strategic placement of the 50-day EMA as a support point, the analysis suggests that investors might see the current price levels as a solid base, preventing significant downward movements.

    This perspective is reinforced by recent price movements, where despite a pre-halving general dip, Bitcoin has experienced a 7.1% increase in value over the past week, and the same uptick continued in the last 24 hours.

    BTC price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com

    Further analysis by the Glassnode cofounders delves into the behavior of EMAs over different durations. Short-term EMAs indicate a growing inclination among investors to buy, while longer-term EMAs lean towards selling.

    This contrasting behavior between short and long-term EMAs sheds light on the current phase of the market, which seems to be in a period of consolidation after the notable 92% increase in Bitcoin’s price over six weeks earlier in the year.

    Such insights are vital as they offer a deeper understanding of the underlying market forces and investor behavior during volatile periods.

    Meanwhile, Glassnode’s team’s analytical approach extends beyond simple price movements. Yesterday, they compared the current market conditions to the early 2021 “strong correction,” which they term “wave 4” of the ongoing market cycle.

    This historical perspective provides a lens through which current trends can be evaluated, suggesting a cyclic return to bullish conditions reminiscent of past market behaviors.

    Bitcoin Bullish Projections And Market Dynamics

    Bitfinex analysts have highlighted significant activities around Bitcoin withdrawals, supporting the optimistic outlook on Bitcoin. The current levels, echo those of January 2023, suggest that investors are increasingly moving their Bitcoin to cold storage—a sign that many anticipate further price increases.

    Veering back to Glassnode’s projections yesterday based on their indexes and Fibonacci levels, the cofounders were boldly optimistic, anticipating a potential 350% increase from current market levels.

    Notably, this forecast highlights the expected financial trajectory and underscores a growing confidence among experts and market analysts in Bitcoin’s market performance and its foundational economic principles.

    Featured image from Unsplash, Chart from TradingView

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    [ad_2]

    Samuel Edyme

    Source link

  • Bitcoin Market Dynamics Still Positive Post-Halving – Bitfinex Analysis

    Bitcoin Market Dynamics Still Positive Post-Halving – Bitfinex Analysis

    [ad_1]

    In the midst of the dramatic changes that have occurred in the cryptocurrency space after the Bitcoin halving event, Bitfinex provides a perceptive analysis that reassures investors that the market dynamics of BTC have remained positive in the post-halving period. Bitfinex examines the on-chain data and finds encouraging signs for Bitcoin in spite of the United States economy’s current state of uncertainty in its most recent Alpha report, which was released on April 22.

    Bitcoin Market Dynamics Remains Bullish

    According to the Hong Kong-based crypto platform, exchange withdrawals of Bitcoin are currently at levels not seen since January 2023. This simply indicates that a lot of investors are putting their assets in cold storage in expectation of price rises.

    Also, the exchange noted that long-term investors’ aggressive selling has not yet caused the usual pre-halving price decline, which suggests that new market participants are absorbing the selling pressure quite well, highlighting the tenacity of the present market structure of Bitcoin.

    The Bitfinex Alpha report revealed that the average daily net inflow from spot Bitcoin Exchange-Traded Funds (ETFs) is $150 million. Given the ETFs’ inflows far exceeding the $30 and $40 million daily issuance rate of BTC following the halving, this significant supply and demand imbalance could encourage further price appreciation.

    Bitfinex further claims the massive purchases of spot Bitcoin ETFs, which have dominated the entire year’s market narrative, may decline. However, recent ETF outflows have shown that ETF demand may be starting to stabilize.

    It is important to note that the recently concluded Halving cut down miners’ reward from 6.25 BTC to 3.125 BTC. As a result, miners are now modifying their operating tactics in order to sustain their activities against the decline in reward following the Halving.

    Thus, the amount of Bitcoin that miners are sending to exchanges has significantly decreased, which may indicate that they are selling ahead of time or collateralizing their holdings to upgrade infrastructure. Consequently, this could possibly lead to a gradual increase in selling pressure rather than a sudden drop in value at the Halving.

    New BTC Whales Surpassed Old Whales

    Since the conclusion of the fourth Halving, on-chain data shows a significant rise in new Bitcoin whales. CryptoQuant Chief Executive Officer (CEO) Ki Young Ju, reported the development, noting that the initial investment made by the new whales in Bitcoin is nearly twice that of the old whales combined.

    According to the data, the total holding by these new whales, which are short-term holders, is valued at $110.6 billion. Meanwhile, the old whales, which are long-term holders, own a whopping $67 billion worth of BTC. This change in whale demographics may impact Bitcoin’s future course and the dynamics of the cryptocurrency landscape as a whole.

    BTC trading at $66,002 on the 1D chart | Source: BTCUSDT on Tradingview.com

    Featured image from iStock, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    [ad_2]

    Godspower Owie

    Source link

  • Ethereum Spot ETFs Approval Skepticism Persists, As ETH Recovers

    Ethereum Spot ETFs Approval Skepticism Persists, As ETH Recovers

    [ad_1]

    Ethereum Spot Exchange-Traded Funds (ETFs) approval odds continue to witness notable pessimism as the cryptocurrency space awaits the United States Securities and Exchange Commission’s (SEC) decision on the products scheduled for May.

    The expectation surrounding the SEC’s decision highlights how important ETF approval is in terms of giving conventional investors more convenient access to Ethereum’s spot market. Presently, data from Polymarket, the world’s largest prediction market, shows that ETH ETF approval odds have fallen to a mere 11%.

    Pessimism Deepens As Ethereum ETFs Remain Uncertain

    As the May deadline draws near, doubt and skepticism loom large on the horizon, casting a dark shadow for the products. One of the most recent figures to voice doubts about the SEC’s willingness to approve the exchange-traded products this May is Nate Geraci, the president of ETF Store.

    According to Geraci, the regulatory watchdog is eerily silent on Ethereum spot ETFs. He further suggested that the products might not be approved due to the SEC’s significantly lower level of engagement with ETF issuers than in previous interactions.

    “Logic says that is correct, but also wonder if SEC learned a lesson from clown show with spot Bitcoin ETFs,” he added. Thus, he has pointed out two possible options for the products, which are either an approval or lawsuit from the Commission.

    Commenting on the president’s insights, a pseudonymous X user questioned if there is a possibility that activities are taking place behind closed doors in order to avoid disrupting the pre-launch market. Geraci responded, saying he believes that could be possible, drawing attention to Van Eck CEO Jan Van Eck’s review, which might prove otherwise.

    It is worth noting that Van Eck is one of the earliest firms to submit its application for an Ethereum exchange product. Even though the company was the first to file for an application, Jan Van Eck is pessimistic about the approval of the ETPs, saying they will probably be rejected in May.

    He stated:

    The way the legal process goes is the regulators will give you comments on your application, and that happened for weeks and weeks before the Bitcoin ETFs. And right now, pins are dropping as far as Ethereum is concerned.

    In light of this, investors prepare for an unpredictable result while managing market swings and modifying their investment plans in the face of changing regulations.

    ETH Price Sees Positive Movement

    While Ethereum ETFs might be experiencing negative sentiment, ETH, on the other hand, has witnessed a positive uptick lately. ETH has revisited the $3,000 level again after falling as low as $2,888 during the weekend.

    Today, ETH price rose by over 4%, reaching around $3,234, indicating potential for further price recovery. At the time of writing, Ethereum was trading at $3,215, demonstrating an increase of 1.40% in the past day.

    Also, the asset’s market cap and trading volume are up by 1.40% and 5.96% in the last 24 hours. Given the anticipated impact of the recently concluded Bitcoin Halving on cryptocurrencies, ETH could be poised for noteworthy moves in the coming months.

    ETH trading at $3,204 on the 1D chart | Source: ETHUSDT on Tradingview.com

    Featured image from iStock, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    [ad_2]

    Godspower Owie

    Source link

  • Bitcoin Price Approaches Breakout, Can BTC Pump Above $66K?

    Bitcoin Price Approaches Breakout, Can BTC Pump Above $66K?

    [ad_1]

    Bitcoin price recovered and climbed above the $64,000 resistance zone. BTC is now facing hurdles near the $65,500 and $66,000 levels.

    • Bitcoin is now struggling to gain pace for a move above the $65,500 resistance zone.
    • The price is trading above $64,000 and the 100 hourly Simple moving average.
    • There is a key contracting triangle forming with resistance at $65,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    • The pair could start a fresh surge if it clears the $65,500 resistance zone.

    Bitcoin Price Starts Increase

    Bitcoin price found support above $60,000 and started a fresh increase. BTC climbed above the $62,500 and $63,500 resistance levels. The bulls even pushed the price above the $65,000 level.

    However, the bears seem to be active near the $65,500 zone. The recent high was formed at $65,598 and the price is now consolidating gains. There was a drop below the $65,000 level, but the price is still above the 23.6% Fib retracement level of the upward move from the $59,666 swing low to the $65,598 low.

    Bitcoin price is trading above $64,000 and the 100 hourly Simple moving average. Immediate resistance is near the $65,100 level. There is also a key contracting triangle forming with resistance at $65,100 on the hourly chart of the BTC/USD pair.

    The first major resistance could be $65,500. The next resistance now sits at $66,000. If there is a clear move above the $66,000 resistance zone, the price could continue to move up. In the stated case, the price could rise toward $67,500.

    Source: BTCUSD on TradingView.com

    The next major resistance is near the $68,500 zone. Any more gains might send Bitcoin toward the $70,000 resistance zone in the near term.

    Downside Correction In BTC?

    If Bitcoin fails to rise above the $65,500 resistance zone, it could start a downside correction. Immediate support on the downside is near the $64,500 level.

    The first major support is $64,000. If there is a close below $64,000, the price could start to drop toward the 50% Fib retracement level of the upward move from the $59,666 swing low to the $65,598 low at $62,500. Any more losses might send the price toward the $61,200 support zone in the near term.

    Technical indicators:

    Hourly MACD – The MACD is now losing pace in the bullish zone.

    Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now near the 50 level.

    Major Support Levels – $64,500, followed by $64,000.

    Major Resistance Levels – $65,100, $65,500, and $66,000.

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    [ad_2]

    Aayush Jindal

    Source link

  • CEX Trading Volumes Nearly Triple Since October 2023: Bybit

    CEX Trading Volumes Nearly Triple Since October 2023: Bybit

    [ad_1]

    Bybit’s Institutional Report 2024 revealed a significant increase in monthly trading volumes across several centralized exchanges (CEXs) from October 2023 to March 2024.

    During that timeframe, the crypto sector’s market cap surged from slightly above $1 trillion to over $2.5 trillion.

    Bullish Trends and BTC as a Hedge

    According to the report, OKX’s trading volumes have soared by an impressive 278% since October of last year, with Binance following closely behind with a 239% increase.

    Bybit Exchange emerged as one of the fastest-growing platforms, showing a remarkable 264% growth in trading volumes. Additionally, the U.S.-based exchange Coinbase experienced an uptick in volumes, rising by 193%, slightly below the industry’s average growth rate of 255%.

    The substantial growth in CEX volumes can be attributed primarily to BTC’s price surges, which coincided with the approvals of spot Bitcoin ETFs in the U.S.

    The report’s findings reveal bullish trends in the derivatives market, particularly in Bitcoin (BTC) and Ethereum (ETH).

    Despite sideways movements in March and April, investors displayed a bullish sentiment, as shown by the large call premium observed for both BTC and ETH futures contracts.

    This trend suggests that investors are optimistic about the long-term price prospects of these two cryptocurrencies as the year progresses.

    The report also highlights BTC’s role as a hedge in traditional finance (TradFi) portfolios. BTC and ETH have correlations with traditional financial assets, such as stock indices and fixed income, that are consistently below 3%.

    Allocating just 5% of a portfolio to BTC and ETH, equally weighted, can improve the risk-adjusted returns of the S&P 500. This allocation can increase the Sharpe ratio from 2.20 to 3.15, representing a 43.6% improvement.

    This effect is felt more when investors embrace higher risk and allocate more funds to cryptocurrencies.

    Challenger Chains and VC Funding Resurgence

    Challenger chains have also been doing well, with the native tokens of these platforms outperforming ETH since Q4 2023.

    Solana (SOL), in particular, emerged as a top performer among these challenger tokens. It has maintained its momentum from 2021 as a challenger chain in terms of  Total Value Locked (TVL) and transaction volume.

    The crypto industry’s venture capital (VC) funding has also seen a resurgence. While Infrastructure projects are still the main focus of VC investments, the report reveals that investments have been made in various sectors, including gaming and AI projects.

    In Q4 2023, venture capital deals rose by 21% to 174, with disclosed funding reaching $1.42 billion, marking a 29% increase. Q1 2024 saw 243 deals with disclosed funding totaling $1.94 billion, representing a further 36% increase compared to Q4 2023.

    SPECIAL OFFER (Sponsored)

    LIMITED OFFER 2024 for CryptoPotato readers at Bybit: Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!

    [ad_2]

    Wayne Jones

    Source link

  • Battle For The Halving Block: Bitcoin Users Spend Record $2.4 Million On Block 840,000

    Battle For The Halving Block: Bitcoin Users Spend Record $2.4 Million On Block 840,000

    [ad_1]

    With Bitcoin finally completing its fourth-year halving cycle, many users are aggressively competing for halving blocks, paying exorbitant amounts of fees to mine a single block. 

    Bitcoin Mining Pool Pays Over $2.4 Million In Block Fees

    Earlier today, the 840,000th block was added to the Bitcoin blockchain, triggering the onslaught of the highly anticipated halving event. While the price of BTC did not witness a dramatic change following the halving, transaction fees spiked to unprecedented highs. 

    Amidst the massive competition, a mining pool identified as ViaBTC had successfully mined the 840,000th Bitcoin block. Cumulatively, BTC users had spent a staggering $37.7 BTC in mining fees, equivalent to $2.4 million, recording the highest fee ever paid for a Bitcoin block. 

    According to reports from mempool, after ViaBTC had produced the 840,000th block, the protocol had initiated an automated reduction of miners’ reward by half, from 6.25 BTC to 3.125 BTC per block. In addition to the fees, ViaBTC had received a total payout of 40.7 BTC, valued at approximately $2.6 million, for mining the historic block.  

    While it may seem that Bitcoin miners had thrown caution to the wind by spending over $2.4 million on a single block, the 840,000th block had a major significance within the cryptocurrency space. The historic Bitcoin block is said to hold the first Satoshis, ‘sats,’ the smallest units of BTC following the halving. 

    There are several of these “epic sats,” that appear after the halving event, coveted as a rare collector’s item among cryptocurrency enthusiasts. Some even speculate that these Bitcoin fragments could be potentially worth millions of dollars. 

    Including the hype surrounding these fragmented BTC, much of the competition for the Bitcoin blocks, following the halving has been attributed to the new Runes Protocol which launched at the same time as the Bitcoin halving. 

    Degens Rush To Secure Infamous Rune Tokens

    The Runes Protocol, created by Casey Rodamor, a Bitcoin developer, has sent shockwaves through the cryptocurrency community, as degens are avidly competing to etch and mint tokens directly on the Bitcoin network. 

    While mining pools were mining new Bitcoin blocks, degens had paid over 78.6 BTC valued at $4.95 million to mint the rarest Runes. This exponential surge in fees has been an unprecedented event, highlighting the increased adoption and participation of the Bitcoin network.

    According to reports from Ord.io, a Rune labeled as ‘Decentralized’ was acquired for a fee of 7.99 BTC, equivalent to $510,760. While another titled ‘Dog-Go-To-The-Moon’ was obtained for a fee of 6.73 BTC, worth approximately $429,831.

    Leonidas, protocol developer and host of the groundbreaking Ordinals, a system for numbering “epic sats,” has declared the Runes Protocol a remarkable success as degens have “single-handedly offset the drop in miner rewards from the halving.” He concluded that Runes have significantly impacted Bitcoin’s security budget, potentially playing a major role in ensuring the network’s sustainability.

    BTC price sitting at $63,700 after halving | Source: BTCUSD on Tradingview.com

    Featured image from Watcher Guru, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    [ad_2]

    Scott Matherson

    Source link

  • A bitcoin halving is imminent. Here’s what that means.

    A bitcoin halving is imminent. Here’s what that means.

    [ad_1]

    Bitcoin is expected to go through a “halving” within the next day or two, a preprogrammed event that could impact production of the world’s largest cryptocurrency. 

    A halving, which occurs about every four years, was designed by bitcoin’s creator, Satoshi Nakamoto, to effectively reduce by half the reward that miners of the digital token receive. The idea is that by cutting in half the amount bitcoin miners currently make for their efforts, fewer bitcoins will enter the market, creating more scarcity of the cryptocurrency.

    That’s sparked some speculation that the halving could cause a surge in demand and push up the price of bitcoin, which has already risen almost 50% since year start. Much of the credit for bitcoin’s recent rally is given to the early success of a new way to invest in the asset — spot bitcoin ETFs, which were only approved by U.S. regulators in January. 

    Here’s what to know about bitcoin’s “halving.”

    What exactly is bitcoin “halving”?

    Bitcoin miners get a fixed reward when they successfully validate a new block on the bitcoin blockchain. That reward is currently 6.25 bitcoin, worth about $402,000, based on today’s trading price for the token. 

    After the halving, miners will receive 3.125 bitcoin for achieving the same goal. As a result, the rate at which new bitcoins enter the market should also fall, slowing the supply of coins. According to limits set by Satoshi Nakamoto, only a maximum of 21 million bitcoins will ever exist, of which more than 19.5 million have already been mined, leaving fewer than 1.5 million left to be created.

    When was the last bitcoin halving?

    The last such event happened in May 2020, when bitcoin’s price stood at around $8,602, according to CoinMarketCap. 

    By May 2021, the value of bitcoin had surged almost seven-fold to almost $57,000. 

    When will the next halving occur? 

    Halving is scheduled to occur regularly after the creation of every 210,000 “blocks” — where transactions are recorded — during the mining process, that are added to the blockchain.

    While there aren’t any set calendar dates for this to occur, it generally works out to roughly once every four years. The latest estimates expect the next halving to occur sometime late Friday or early Saturday.

    What do expert say could happen with bitcoin’s price after the next halving?

    Some believe that it will be a non-event for bitcoin’s price because the cryptocurrency has already experienced a big run-up this year.

    “Investors, traders and speculators priced-in the halving months ago,” said Nigel Green, the CEO of financial services firm deVere Group, in an email. “As a result, a significant portion of the positive economic impact was experienced previously, driving up prices to fresh all-time highs last month.”

    Still, others say that bitcoin could get a bump, at least longer-term. Growing demand due to the new ETFs, combined with the supply shock of the next halving, could help push bitcoin’s price even higher, said Bitwise senior crypto research analyst Ryan Rasmussen.

    “We would expect the price of bitcoin to have a strong performance over the next 12 months,” he said. Rasmussen notes that he’s seen some predict gains reaching as high as $400,000, but the more “consensus estimate” is closer to the $100,000-$175,000 range.

    What is the halving’s impact on bitcoin miners?

    Miners will likely be pressed to become more energy efficient, or may need to raise new capital, experts said. 

    In its recent research report, Bitwise found that total miner revenue slumped one month after each of the three previous halvings. But those figures had rebounded significantly after a full year, thanks to spikes in the price of bitcoin as well as larger miners expanding their operations.

    Time will tell how mining companies fare following this next looming halving. But Rasmussen is betting that big players will continue to expand and utilize the industry’s technology advances to make operations more efficient.

    —With reporting by the Associated Press.

    Aimee Picchi

    Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.

    [ad_2]

    Source link

  • When is bitcoin halving in 2024? – MoneySense

    When is bitcoin halving in 2024? – MoneySense

    [ad_1]

    What is “bitcoin halving”?

    “Bitcoin halving,” a preprogrammed event that occurs roughly every four years, impacts the production of bitcoin. Miners use farms of noisy, specialized computers to solve convoluted math puzzles; and when they complete one, they get a fixed number of bitcoins as a reward. Halving does exactly what it sounds like—it cuts that fixed income in half. And when the mining reward falls, so does the number of new bitcoins entering the market. That means the supply of coins available to satisfy demand grows more slowly.

    Limited supply is one of bitcoin’s key features. Only 21 million bitcoins will ever exist, and more than 19.5 million of them have already been mined, leaving fewer than 1.5 million left to pull from. So long as demand remains the same or climbs faster than supply, bitcoin prices should rise as halving limits output. Because of this, some argue that bitcoin can counteract inflation—still, experts stress that future gains are never guaranteed.

    How often does bitcoin having occur?

    Per bitcoin’s code, halving occurs after the creation of every 210,000 “blocks”—where transactions are recorded—during the crypto mining process. No calendar dates are set in stone, but that divvies out to roughly once every four years. The latest estimates expect the next halving to occur sometime late Friday or early Saturday.

    Will having impact bitcoin’s price?

    Only time will tell. Following each of the three previous halvings, the price of bitcoin was mixed in the first few months and wound up significantly higher one year later. But as investors well know, past performance is not an indicator of future results.

    “I don’t know how significant we can say halving is just yet,” said Adam Morgan McCarthy, a research analyst at Kaiko. “The sample size of three (previous halvings) isn’t big enough to say ‘It’s going to go up 500% again,’ or something.”

    At the time of the last halving in May 2020, for example, bitcoin’s price stood at around USD$8,602, according to CoinMarketCap—and climbed almost seven-fold to nearly USD$56,705 by May 2021. (All figures in this article are in U.S. dollars). Bitcoin prices nearly quadrupled a year after July 2016’s halving and shot up by almost 80 times one year out from bitcoin’s first halving in November 2012. Experts like McCarthy stress that other bullish market conditions contributed to those returns.

    When is the next bitcoin halving?

    This next halving also arrives after a year of steep increases for bitcoin. As of Thursday afternoon, bitcoin stood at just over $63,500 per CoinMarketCap. That’s down from the all-time-high of about $73,750 hit last month, but still double the asset’s price from a year ago.

    Much of the credit for bitcoin’s recent rally is given to the early success of a new way to invest in bitcoin as an asset—spot bitcoin exchange traded funds (ETFs), which were only approved by U.S. regulators in January. A research report from crypto fund manager Bitwise found that these spot ETFs, short for exchange-traded funds, saw $12.1 billion in inflows during the first quarter.

    [ad_2]

    The Canadian Press

    Source link

  • Bitcoin Crashes 8% Amid Massive Volatility and Geopoltical Woes as Crypto Markets Tumble: This Week’s Recap

    Bitcoin Crashes 8% Amid Massive Volatility and Geopoltical Woes as Crypto Markets Tumble: This Week’s Recap

    [ad_1]

    What a week it’s been. Bitcoin’s price plunged by around 8% throughout the past seven days, which saw the total cryptocurrency market tumble. This comes amid times of considerable geopolitical woes as tension between Iran and Israel continues. Let’s dive in.

    Starting off with Bitcoin, it’s currently trading around the $65K mark, down about 8.3% compared to this time last week. But this doesn’t convey the full picture and does the massive volatility BTC went through very little justice.

    For context, the primary cryptocurrency started the week trading at around $70K but the bears had other plans. BTC tumbled toward $66K during the weekend and the even more on Sunday evening when it crashed below $62K. The bulls wouldn’t have it and the price had recovered to $66K on the following day, underpinned by considerable volatility.

    On Wednesday, the bears made another assault, pushing BTC toward $60K before another recovery. Last night, reports of an explosion in Iran triggered market volatility yet again and Bitcoin dropped below $60K briefly. Iranian officials said they won’t retaliate and the market recovered to where BTC currently trades at around $65K.

    A lot of the volatility was caused by the tension between Israel and Iran, with industry observers fearing broader geopolitical conflict.

    The total cryptocurrency market capitalization is currently sitting at $2.46 trillion.

    Source: Quantify Crypto

    As seen in the heatmap above, the market is covered in red and most of the altcoins are trading at considerable losses.

    That said, the Bitcoin halving is supposed to take place during the next few hours. It’s a historically bullish event and it’s interesting to see if it will trigger a much-anticipated and long-awaited bull market.

    If one thing is sure, it’s that the weeks ahead are to be interesting in the crypto field!

    Market Data

    Market Cap: $2.46T | 24H Vol: $134B | BTC Dominance: 51.8%

    BTC: $64,751 (-8.3%) | ETH: $3,087 (-12.3%) | BNB: $558 (-9.9%)

    market_update_cover

    This Week’s Crypto Headlines You Better Not Miss

    Bitcoin Drops 10% Weekly But Big Players Stay in the Game. Bitcoin’s price has tumbled a lot throughout the past seven days, and many investors are worried about an impending bear market. Big players, however, seem unfazed and continue accumulating.

    Why Zero Flows for Spot Bitcoin ETFs Don’t Really Matter. Inflows into spot BTC exchange-traded funds (ETFs) have been the hottest topic ever since the product was greenlighted by the SEC earlier this year. Neutral flows, however, might not have any considerable impact.

    Here’s Why Bitcoin (BTC) Will Not Stop at $100K: Arthur Hayes (Live From Token2049). Live from Token2049 in Dubai, Arthur Hayes, the former CEO and co-founder of BitMEX – said that Bitcoin’s price won’t stop at $100K. He outlined a few critical reasons why he shares this belief.

    Bitcoin Transaction Fees Overtake Ethereum as Halving Anticipation Grows. As the fourth Bitcoin halving approaches and is currently hours away, transaction fees on the network have overtaken those on Ethereum, highlighting increasing demand but also considerable anticipation.

    Binance Set for Indian Comeback with $2 Million Penalty. The world’s largest cryptocurrency exchange is gearing up to make a comeback to the Indian market. It’s reported to operate as a registered entity and to pay a penalty of around $2 million.

    Sam Altman’s Worldcoin to Launch L2 Blockchain Prioritizing Human Transactions. Worldcoin, the project co-founded by Sam Altman, who’s also the CEO of Open AI, will be launching its own blockchain as a layer-two solution on Ethereum.

    SPECIAL OFFER (Sponsored)

    LIMITED OFFER 2024 for CryptoPotato readers at Bybit: Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!

    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

    Cryptocurrency charts by TradingView.

    [ad_2]

    George Georgiev

    Source link

  • Google Searches For ‘Bitcoin Halving’ Reach Highest Level Ever

    Google Searches For ‘Bitcoin Halving’ Reach Highest Level Ever

    [ad_1]

    Public interest in the ‘Bitcoin halving’ is gaining steam as Google searches for the term have now risen to their highest level in history.

    According to Google Trends data, interest in the term began steadily ramping up at the start of 2024. Beginning with a score of 9 in January, interest in the “bitcoin halving’ keyphrase is now at 100, meaning it has never been higher.

    The Bitcoin Halving Approaches

    The last time the Bitcoin halving became a popular search term was at the last Bitcoin halving in May 2020, at which point search interest was roughly one-third as high as today’s. Now, four years later, the next halving dwells just around the corner, estimated for April 20 according to nicehash.com.

    The Bitcoin halving is a mechanism within the Bitcoin network that’s triggered every 210,000 blocks – roughly once every four years – that cuts the supply inflation rate of BTC in half. As of right now, roughly 900 BTC are mined every day, and that figure will fall to 450 BTC after the halving.

    Many consider the halving to be a bullish event for Bitcoin’s price, given that it reduces the rate at which previously mined BTC is being debased. This particular halving will reduce Bitcoin’s annual inflation rate to be lower than that of gold, to which many compare the asset as a store of value and inflation hedge.

    “What if an investor with unlimited capital announced a program to acquire 450 BTC daily at the market price for the next four years and hold the asset forever?” wrote Michael Saylor, executive chairman of MicroStrategy, to Twitter on Thursday regarding the halving.

    “What if they increased their purchases to 675 BTC daily in 2028, and to 787.5 BTC daily in 2032?” he continued.

    Advertising the Halving

    Many institutions are using the Bitcoin halving as a selling point to entice customers to buy BTC through their platforms. Earlier this month, TD Bank released a commercial explaining the halving as an event that crunches Bitcoin’s supply irrespective of new demand that arrives for the asset.

    Coinbase also released a commercial earlier this week explaining how much the purchasing power of Bitcoin has grown between each halving event in terms of pizza.

    At present, search traffic for other bitcoin-related terms like ‘buy bitcoin’ remains relatively low compared to 2017 and 2021. The term ‘Bitcoin ETF’ has also fallen substantially in traffic since January.

    SPECIAL OFFER (Sponsored)

    LIMITED OFFER 2024 for CryptoPotato readers at Bybit: Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!

    [ad_2]

    Andrew Throuvalas

    Source link

  • The $86,500 Bitcoin Question: Will The Halving Spark A Price Surge This April?

    The $86,500 Bitcoin Question: Will The Halving Spark A Price Surge This April?

    [ad_1]

    The cryptocurrency market has undergone a substantial downturn, with many of the top 100 cryptocurrencies experiencing sharp price drops. Bitcoin, the leading digital asset, hit a low of $61,600 on Tuesday. 

    However, industry experts suggest a potential rebound to higher highs may be on the horizon as the highly anticipated Halving event draws near. 

    Adrian Zduńczyk, a crypto trader and technical analyst, provides valuable insights into the market dynamics, highlighting key factors such as bull market indicators, ETFs, and the imminent Halving event.

    Mixed Signals For BTC

    According to Zduńczyk’s analysis, the market exhibits bullish signs, with the 200-week and 50-week moving averages (MAs) at $33,700  and $39,900, respectively. 

    The Net Unrealized Profit/Loss (NUPL) ratio is 0.55, indicating a favorable trading environment. Additionally, the 7-week correlation with the S&P 500 (SPX) remains firm at 0.71. 

    In terms of daily trends, Zduńczyk notes that Bitcoin is currently in a choppy range between $59,000 and $74,000, with the 200-day Simple Moving Average (SMA) rising at $46,600 and the 200-day Bitcoin Production Cost (BPRO) rising at $57,700. 

    However, the analyst notes that the medium-term momentum is declining, and the 50-day Average True Range (ATR) volatility has increased to $3270. This suggests that Bitcoin’s overall price trend is losing strength or momentum in the medium-term timeframe.

    Bitcoin Aims For $86,500

    Zduńczyk highlights the market sentiment. The Fear & Greed Index is at 65, indicating a state of greed among market participants. The analyst notes that the current phase of the market cycle is characterized by belief. 

    Moreover, miners are still profitable at prices above $41,800, and as mining difficulty rises post-Halving, a price spike is expected. 

    Notably, previous Halving events have triggered substantial price rallies, with Bitcoin experiencing significant gains of 90X, 30X, and 7X. Importantly, Bitcoin has never returned to Halving prices after these rallies.

    Examining seasonality trends, the monthly opening price for April stands at $71,000, suggesting a positive outlook for the month. The average gain for April is estimated at 21.95%, implying an end-of-month target of $86,500, according to Zduńczyk. 

    Moreover, the period from April 16 to 30 has historically seen average gains of 14.69%, further reinforcing positive expectations and further price gains for BTC during the upcoming weeks. According to Zduńczyk, this timeframe could attract investors seeking to buy the dip. 

    The 1-D chart shows that BTC’s price is trending downward. Source: BTCUSD on TradingView.com

    Despite the overall positive outlook, BTC is trading at $62,600, reflecting a consistent decline over the past month. In the last 30 days, BTC has experienced a 9% drop from its mid-March all-time high of $73,700.

    Moreover, in its quest for new highs and surpassing the $80,000 threshold, BTC has encountered a significant obstacle at the $70,000 level. Despite surpassing its all-time high, BTC has struggled to consolidate above this level for over a week.

    Nonetheless, as emphasized by Zduńczyk, the potential synergy between the success of the ETF market in the United States and the upcoming Halving event may hold the key to revitalizing BTC’s price trajectory. 

    Featured image from Shutterstock, chart from TradingView.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    [ad_2]

    Ronaldo Marquez

    Source link

  • ‘We Sold Everything Last Night’, Reveals Crypto Research Firm

    ‘We Sold Everything Last Night’, Reveals Crypto Research Firm

    [ad_1]

    Markus Thielen of 10x Research unveiled a significant shift in his crypto strategy in response to mounting financial pressures and market instability, as detailed in an investor note released earlier today. Thielen, an influential figure in the analysis sector, cited a concerning outlook on risk assets, which encompasses both technology stocks and cryptocurrencies, primarily driven by unanticipated and ongoing inflation rates.

    According to projections from Bank of America, US CPI headline inflation is expected to reach 4.8% by the November 2024 election. Over the past three months, month-over-month CPI inflation has averaged 0.4%. An acceleration at this speed would mean the rate is more than twice the Federal Reserve’s inflation target of 2% by November.

    Why 10x Research Sold (Almost) All Crypto And Risk Assets

    In light of this, 10x Research’s decision to divest from risky assets was catalyzed by an adverse shift in economic indicators. Notably, the US bond market is currently projecting fewer than three Federal Reserve rate cuts this year, a significant adjustment from earlier more optimistic forecasts. According to the CME FedWatch tool, the majority of market participants now think that a rate cut by the Fed will not come before the mid-September FOMC meeting.

    CME FedWatch tool probabilities | Source: CME

    Additionally, the 10-year Treasury Yields have reached a peak of 4.61% this month, marking the highest rate since November 2023, further complicating the investment landscape for risk assets including technology stocks and cryptocurrencies.

    “Our growing concern is that risk assets are teetering on the edge of a significant price correction,” Thielen stated in the note. “We sold all our tech stocks last night as the Nasdaq is trading very poorly and reacting to the higher bond yield. We only hold a few high-conviction crypto coins. Overall, we are bearish on risk assets.”

    The bearish stance is further supported by the disappointing performance of US-listed spot Bitcoin ETFs. Despite the SEC’s approval of nearly a dozen such ETFs in January, which initially spurred a surge in Bitcoin prices, the influx of capital has markedly slowed. This month, the five-day average net inflows into these ETFs plummeted to zero, a stark contrast to the nearly $12 billion that flowed into these investment vehicles earlier in the year.

    Thielen’s comments also touched on the broader implications of the upcoming Bitcoin network’s quadrennial halving, scheduled for April 20. This event will reduce the reward for mining a block of Bitcoin by 50%, from 6.25 BTC to 3.125 BTC. While such halvings have historically spurred bullish sentiment and price increases due to a perceived scarcity of Bitcoin, Thielen suggests that the current market conditions might dampen any potential rallies.

    “It is essential to understand that trading is a continuous game with high-conviction opportunities. The key is to keep analyzing the markets and uncovering those opportunities when the odds are in your favor. There are times when we advocate for a total risk-on approach and when the priority is safeguarding your capital, enabling you to seize opportunities at lower levels,” Thielen stated.

    In a notable exchange with Matthew Graham of Ryze Labs, Thielen defended his firm’s trading strategy amid criticism for what was described as erratic decision-making. Graham pointed to recent fluctuations in 10x Research’s stance on Bitcoin, citing a research note from early April that predicted a potential rally to $80,000, followed by a more cautious view and the recent sell-off.

    Thielen responded, “Actually, no. We have been cautious since March 8, and when the triangle breakout failed, we worked with the $68,300 stop loss. This is simply risk-reward trading.” This defense highlights the volatile nature of crypto trading and the necessity for agile strategies in response to rapidly changing market conditions.

    Thielen concluded, promising a strong re-entry into the market under more favorable conditions: “Will buy back with both hands at 52,000 – promise.”

    At press time, BTC traded at $63,045.

    Bitcoin price
    BTC price, 4-hour chart | Source: BTCUSD on TradingView.com

    Featured image from Shutterstock, chart from TradingView.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    [ad_2]

    Jake Simmons

    Source link

  • Lost Treasure Found? Bitcoin Miner Transfers Over $3 Million BTC After 14-Year Dormancy

    Lost Treasure Found? Bitcoin Miner Transfers Over $3 Million BTC After 14-Year Dormancy

    [ad_1]

    According to the on-chain analysis platform Lookonchian, a long-dormant Bitcoin (BTC) wallet dating back to April 2010, recently transferred 50 BTC, equivalent to $3.328 million.

    Unraveling The Transaction: An Exploration of Potential Motives

    As reported by Lookonchian, 50 BTC mined over 14 years ago, when each block reward was 50 BTC, was divided into two transactions: 17 BTC ($1.1 million) for one wallet and 33 BTC ($2.2 million) for another.

    The recipient wallet receiving 17 BTC has shown patterns of frequent transactions, possibly indicating its association with a cryptocurrency exchange, particularly Coinbase.

    The analysis further reveals that the Bitcoin sent to this wallet was subsequently merged with funds from other wallets associated with Coinbase, suggesting a possible deposit into the exchange.

    On the other hand, the remaining 33 BTC were transferred to a new wallet. This could indicate that this Bitcoin may have effectively remained within the miner’s control but under a new address, a common practice to enhance transaction privacy.

    Bitcoin Recovery Amid Impending Halving

    This recent activity coincides with Bitcoin’s rebound following a sharp decline that saw its price plummet from over $70,000 to $62,000 over the weekend. However, at the time of writing, Bitcoin is trading at $64,109, marking a 0.5% increase in value over the past 24 hours.

    BTC price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com

    This surge in price comes amidst anticipation of the upcoming Bitcoin Halving scheduled to take place in the next 5 days on April 20.

    Notably, the Bitcoin Halving is a programmed event that occurs approximately every four years or after every 210,000 blocks are mined. Bitcoin miners’ reward for validating transactions and securing the network is cut in half during this event.

    When Bitcoin was launched in 2009, the reward was initially set at 50 BTC per block. However, the reward has been halved, reducing the rate at which new BTC is created. This adjustment is designed to control the supply of Bitcoin, making it more scarce over time and ultimately contributing to its deflationary nature.

    Furthermore, recent reports indicate that BTC miners could face losses exceeding $10 billion due to the upcoming Halving event. As Bloomberg reported, this loss could result from several factors, including miners facing intensified competition from AI companies.

    Core Scientific CEO Adam Sullivan noted the tightening availability of power in the US, driven partly by tech giants like Amazon investing heavily in data centers. This competition for resources presents further obstacles for miners seeking affordable power contracts.

    Featured image from Unsplash, Chart from TradinView

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    [ad_2]

    Samuel Edyme

    Source link

  • Why Another Bitcoin Price Dump Is Still Likely: CryptoQuant

    Why Another Bitcoin Price Dump Is Still Likely: CryptoQuant

    [ad_1]

    Bitcoin’s price may be due for another correction despite a strong recovery from its weekend dump to $61,000, according to analysts at CryptoQuant.

    In a community “quicktake” posted on Monday, Bitcoin and Ethereum trader GAAH noted that the prevailing bullish market sentiment may be getting too hot based on information from the perpetual futures market.

    Is Bitcoin Still Overheated?

    As the analyst noted, average 30-dy funding rates remain high for Bitcoin, even after its latest price dump. Their current level mirrors that during Bitcoin’s 2021 all-time high, which today serves as the digital currency’s “greatest resistance ever.”

    “The price is in a defined channel with around 20% expansion/retraction, an ideal scenario for large players to set up large positions,” wrote GAAH.

    The last time Bitcoin funding rates were in an equally significant bearish position was in late 2022, when Bitcoin’s price was just 25% of what it is today. Since then, the asset has experienced multiple brief corrections of roughly 20%, though it hasn’t seen a funding premium like today.

    The asset’s rapid rise has incentivized many retail investors to start taking profits. The Spent Output Profit Ratio (SOPR) for short-term holders reached levels of “extreme greed” in March, and has only now retreated towards a more neutral position.

    “Historically, when there are large retail profit-taking moves, it means a potential top is in the making,” the analyst added. “After the rapid fall in prices over the last two days, there has been a significant outflow of realizations by these holders.”

    How To Spot The Next Bottom

    Lead Glassnode analyst James Check commented on the same metric on Sunday, claiming its latest break back below a 1.0 ratio is a healthy sign for bulls. He said short-term holders are  disproportionately at a loss compared to long-term holders, and that the market must shake out its weak hands before moving higher.

    “SOPR is a metric that benefits contrarians” he advised. “Watch the retest of 1.0, it needs to break above, not find resistance.”

    Bitcoin’s crash over the weekend triggered $700 million in liquidations within 24 hours. Many suspect it was sparked by escalating geopolitical tensions between Iran and Israel.

    SPECIAL OFFER (Sponsored)

    LIMITED OFFER 2024 for CryptoPotato readers at Bybit: Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!

    [ad_2]

    Andrew Throuvalas

    Source link

  • Bitcoin Rebounds After Nearing Cost Basis Of Short-Term Whales

    Bitcoin Rebounds After Nearing Cost Basis Of Short-Term Whales

    [ad_1]

    Bitcoin has found a rebound back above the $66,000 mark following a drop towards the on-chain cost basis of the short-term holder whales.

    Bitcoin Drawdown Had Nearly Put Short-Term Whales Under Pressure

    As pointed out by an analyst in a CryptoQuant Quicktake post, BTC’s price had neared the Realized Price of the short-term holder whales during the recent drop, but had still managed to remain above the level.

    The “Realized Price” here refers to an on-chain indicator that, in short, keeps track of the cost basis (that is, the acquisition price) of the average investor in the Bitcoin market.

    When the spot price of the cryptocurrency is trading above this level, it means that the investors as a whole are in a state of unrealized profits right now. On the other hand, it being under implies the overall market is carrying losses.

    In the context of the current discussion, the Realized Price of the entire Bitcoin market isn’t of interest, but that of only a part of it: the short-term holder (STH) whales.

    The STHs refer to the BTC investors who bought their coins within the past 155 days, while the whales are categorized as entities holding greater than 1,000 BTC. As such, the STH whales would refer to the large investors who bought during the last five months.

    Naturally, the Realized Price of this group would indicate the average whale buying price over the past five months (and this price would obviously have to be one the cryptocurrency had traded at on some occasion inside this timeframe).

    Now, here is a chart that shows the trend in the Bitcoin Realized Price for the STH whales over the last decade:

    The value of the metric appears to have shot up in recent months | Source: CryptoQuant

    From the graph, it’s visible that the Realized Price of the STH whales has rapidly climbed alongside the sharp rally Bitcoin has gone through this year. This makes sense, as the STHs represent the new hands coming into the market, who would have to buy at higher prices as the asset’s surge would continue.

    Not only that, but the STHs who age past the 155 days mark (that is, those who bought at the relatively low prices) exit out of the cohort, thus raising the average even further.

    The group that these matured investors advance to is known as the long-term holder (LTH) cohort. In the same chart, the quant has also attached the data for the Realized Price of the LTH whales as well.

    It would appear that these veteran whales have their cost basis at just $21,500, meaning that these investors would be getting some big rewards for their patience. In contrast, the STH whales have their Realized Price at $60,700.

    During Bitcoin’s recent drawdown, the asset had come close to retesting this mark. Such retests have historically lead to reactions in the market and during bull runs, this reaction has often appeared in the form of buying. This may be why the cryptocurrency found its rebound near the $60,700 level.

    BTC Price

    With its latest rebound, Bitcoin has so far managed to recover back towards the $66,500 level.

    Bitcoin Price Chart

    Looks like the price of the coin has made some recovery from its recent drop | Source: BTCUSD on TradingView

    Featured image from Thomas Kelley on Unsplash.com, CryptoQuant.com, chart from TradingView.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    [ad_2]

    Keshav Verma

    Source link

  • Top cryptocurrencies to watch this week: BTC, SOL, PEPE

    Top cryptocurrencies to watch this week: BTC, SOL, PEPE

    [ad_1]

    Bitcoin (BTC) and Solana (SOL) were two of the leading assets impacted by last week’s crypto market downturn. Meanwhile, Pepe (PEPE) experienced a steeper price drop.

    This price crash reverberated throughout the entire cryptocurrency market, with the global crypto market cap losing over $280 billion over the last seven days in a massive 10% drop to $2.32 trillion at the time of writing.

    Here is an overview of how some of the most impacted cryptocurrencies performed over the week:

    BTC, SOL and PEPE prices – April 14 | Source: Santiment

    BTC slips to 1-month low

    Interestingly, Bitcoin began the week favorably, attempting to build on the momentum it recorded from April 3 to 7 last week. The premier crypto asset reclaimed the $70,000 threshold on April 8 for the first time in over a week, surpassing the $72,000 and closing the day with an impressive 3.25% increase.

    However, the bears took control of the scene the following day, pushing BTC below the $70,000 mark and triggering a 3.45% loss, essentially erasing the gains recorded on Monday. The hotter-than-expected U.S. inflation data exacerbated the downward spiral. Bitcoin mustered a comeback when it dropped to the $68,318 support at the 21-day EMA. 

    A resurgence of strength saw Bitcoin recover the $71,000 zone, but the resistance that ensued hedged against any further rally. The rest of the week was marred by a consistent price decline, as tensions surrounding the looming Iran-Israel conflict contributed to the bearish pressure.

    Bitcoin saw three consecutive days of declines from April 11 to 13, culminating in a shocking crash to a one-month low of $61,596 on April 13. Despite recovering from this floor, BTC remains in a downtrend, down 8% over the past two days as it struggles to reclaim and retain the $65,000 territory.

    SOL breaks below 50-day EMA

    Solana’s start to the week was not as significant as Bitcoin’s, but its subsequent price decline was much steeper. Despite only seeing a modest 0.67% rise on April 8 as BTC led the market to a short-term recovery, SOL crashed 4.63% the following day when BTC triggered a downtrend.

    Similarly, its April 10 recovery only saw a 0.56% increase, with the rest of the week introducing one of the biggest price slumps for Solana this year. From April 11 to 13, Solana recorded a discouraging 21.19% drop, giving up the Fibonacci support levels at 0.618 ($171.09), 0.5 ($161.11) and 0.382 (151.14) in the process.

    More significantly, Solana’s three-day downward spiral resulted in a collapse below the crucial 50-day EMA stationed at $162.30 as of April 12. SOL closed below this level for two consecutive days. The last time the asset witnessed this event was in September 2023.

    Solana has also relinquished the psychological supports at $150 and $140, trading for $139.94 at the reporting time. The cryptocurrency is down 24% this week, having lost $19 billion from its market cap since April 8. 

    PEPE CCI drops to 9-month low

    Pepe did not escape the bloodbath recorded in the broader market this week.

    The frog-themed meme coin eventually dropped to a one-month low below the $0.000004 support. Its gains at the start of the week surpassed Bitcoin’s, but so did its losses — a testament to the heightened volatility in the meme coin market.

    The meme coin surged 4.30% on April 8, reaching a high of $0.00000796, before it eventually dropped 9.28%, giving up not just the Monday gains, but most of the value it picked up last week.

    After two days of a mild recovery push, Pepe saw a more substantial 19% intraday drop on April 12. This collapse marked its largest intraday decline in nearly a year (the last time Pepe saw such a price crash was when it dropped 30.47% on May 8, 2023, shortly after its launch).

    Following the 19% collapse on April 12, Pepe slumped by another 14.86% the next day.

    Despite a mild price increase today, Pepe still trades below $0.000006, changing hands at $0.00000525. The meme coin has dropped 29% this week, with its commodity channel index (CCI) crashing to -245, the lowest value in nine months.

    Such a dramatically low CCI suggests that Pepe is largely undervalued, with ample room for growth. The last time the asset’s CCI hit this level, it witnessed three more months of consistent declines, dropping to a low of $0.00000061 on Oct. 19, 2023, before it eventually recovered.


    Follow Us on Google News

    [ad_2]

    Wahid Pessarlay

    Source link

  • Bitcoin ETF Issuers Push Holdings To 4.27% Of BTC Supply Amid Crash To $61,000

    Bitcoin ETF Issuers Push Holdings To 4.27% Of BTC Supply Amid Crash To $61,000

    [ad_1]

    There’s no denying the launch of Spot Bitcoin ETFs has done wonders for the price of Bitcoin and other cryptocurrencies in general. These ETFs have now unlocked institutional demand into the world’s largest crypto asset to change the dynamics ahead of the next halving. On the other hand, recent tensions between Iran and Israel have seen Bitcoin falling to as low as $61,000 in the past 24 hours to undo weeks of price increases. 

    Bitcoin ETF Wallets Now Whale Addresses

    The institutional demand for Bitcoin has been ramping up since the beginning of the year from the issuers of the various Spot Bitcoin ETFs. These fund providers have been scooping up Bitcoin left and right, now holding 4.27% of the total BTC supply, as noted by on-chain analytics platform IntoTheBlock.

    These whale wallets have now joined an extensive list of whales on the Bitcoin network who collectively own 11% of the total circulating supply.

    It is noteworthy to mention that BlackRock’s IBIT and Fidelity’s FBTC ETFs have positioned themselves as the lead of the pack. According to data from BitMEX Research, these two spot ETFs now hold 405,749 BTC at the close of the trading session on April 12. 

    This surge of institutional money has fueled Bitcoin’s meteoric rise to a new all-time high of $73,737 and underscored its potential as a mainstream asset class. However, a brewing conflict between Iran and Israel seems to be undoing months of this price increase. Particularly, Bitcoin has seen a noteworthy drop to $61,000 from $67,800 in the past 24 hours. 

    Fundamentals, however, point to this price drop being temporary and the crypto is already reversing the majority of this loss. At the time of writing, Bitcoin is trading below the $65,000 price mark.

    Bitcoin is now trading at $64.330. Chart: TradingView

    Changing Halving Dynamics

    One of such fundamentals pointing to a steady Bitcoin price increase in the coming months is the approaching Bitcoin halving. Investors are steadily approaching the outcome of this halving, with the Bitcoin blockchain now less than 1,000 blocks to the next event.

    Past halvings on their own have led to a price increase for Bitcoin in the days post-halving. Bitcoin went on a surge of over 7,000% in the months after the first halving in 2012. The halving in July 2016 led to a 3,000% price surge in the months after. The most recent halving in May 2020 led to a surge of almost 1,000% in the months after.

    As noted by IntoTheBlock, the approaching halving is different from previous ones. Unlike the last three halvings, there’s “a new source of demand coming from the institutional sector” through Spot Bitcoin ETFs. A repeat of past halving outcomes could see Bitcoin easily surging above the $100,000 price level.

    Featured image from Pixabay, chart from TradingView

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    [ad_2]

    Scott Matherson

    Source link