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Tag: coinbase

  • Bitcoin Coinbase Premium Returns To Neutral: Buying Push Already Over?

    Bitcoin Coinbase Premium Returns To Neutral: Buying Push Already Over?

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    The positive Bitcoin Coinbase Premium that drove the latest rally above $70,000 has dissipated, suggesting buying has already slowed down.

    Bitcoin Coinbase Premium Gap Has Returned To Neutral Levels

    CryptoQuant Netherlands community manager Maartunn explained in a post on X that the Bitcoin Coinbase Premium Gap has declined back toward the neutral line.

    The “Coinbase Premium Gap” here refers to a metric that keeps track of the difference between the BTC prices listed on cryptocurrency exchanges Coinbase (USD pair) and Binance (USDT pair).

    When the value of this metric is positive, it means that the price listed on Coinbase is greater than that on Binance right now. Such a trend implies that the buying pressure on the former is higher than that on the latter platform (or alternatively, the selling pressure on there is just lower).

    On the other hand, a negative value can imply the selling pressure on Coinbase is higher than on Binance as the price of the cryptocurrency listed there is lower.

    Now, here is a chart that shows the trend in the Bitcoin Coinbase Premium Gap over the past few days:

    The value of the metric appears to have been close to the neutral line recently | Source: @JA_Maartun on X

    The chart shows that the Bitcoin Coinbase Premium Gap had taken to notably positive values as the latest upward push in the asset’s price had occurred. Since then, though, the metric has fallen, with its value approaching zero.

    It would seem that the buying pressure on the platform contributed to the surge. The fact that the rally has slowed since the metric returned to neutral levels may add further evidence.

    This isn’t unnatural for this year, however, as the Bitcoin price and Coinbase Premium Gap have shown a pretty tight relationship since the start of 2024.

    Coinbase is popularly known as the preferred platform of American institutional investors, while Binance hosts more global traffic. As such, the premium’s value provides insight into how the behavior of the US-based large holders differs from that of world users.

    Since the Coinbase Premium Gap has been the driver of the recent price surges, buying from these institutional entities could potentially have provided the fuel.

    As the indicator’s value has now neared the neutral mark, it would imply that these whales have lifted their foot off the gas. Given the close relationship the metric and BTC price have held recently, it may be worth keeping an eye on how things develop in the coming days.

    BTC may register some decline if the premium flips into the red from here. Naturally, a continuation of positive values would be a bullish sign instead.

    BTC Price

    At the time of writing, Bitcoin is trading around the $70,100 level, up more than 11% over the past week.

    Bitcoin Price Chart

    Looks like the value of the asset has been going up over the last few days | Source: BTCUSD on TradingView

    Featured image from Kanchanara 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.

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    Keshav Verma

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  • Coinbase’s Base Hits Record $2B in TVL as Demand Surges After Dencun Upgrade Activation

    Coinbase’s Base Hits Record $2B in TVL as Demand Surges After Dencun Upgrade Activation

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    Base, Coinbase’s layer-2 blockchain initiative for reducing Ethereum transaction fees, seems to be witnessing massive demands of increased network activity. As a result, its TVL also rose sharply, hitting a new milestone, surpassing $2 billion this week.

    One of the major reasons for the surge in activity of Base was the activation of the Dencun upgrade.

    Base’s TVL Growth

    According to data from L2Beat, Base’s current TVL stands at $2.27 billion, increasing by over 230% YTD. Over the past seven days alone, this figure has grown by almost 50%.

    This increase can be attributed to the Dencun upgrade, which significantly reduced Layer 2 transaction fees, rendering the Layer 2 network a more economical choice for Ethereum transactions. Despite a temporary increase in average transaction fees to above $1, the level of activity remained strong.

    The Dencun upgrade, which went live on March 13, aims to lower transaction fees on the many Layer 2 networks built on top of Ethereum and is being touted as a major catalyst for developers’ efforts to move towards achieving widespread scalability through these solutions.

    Prior to the important upgrade, Base was handling approximately 440,000 transactions per day, according to data from Dune Analytics. Following the upgrade, however, this figure surged to 1.1 million the very next day and continued to climb in the subsequent days, soaring beyond 2.06 million on March 16.

    Meanwhile, the daily influx of new users on Base spiked to over 666k on the same day, marking an impressive 3,200% increase compared to the average in the weeks leading up to Dencun.

    Rise in Traffic

    Base Mainnet experienced high traffic and rising fees last week, with some users witnessing transaction delays due to insufficient fees. The situation was also aggravated by certain wallets, like Coinbase Wallet, lacking transaction cancellation features.

    This uptick in activity coincided with the resurgence of the meme coin craze across the wider ecosystem. It is important to note that Solana has been a preferred venue for developers over Ethereum when it comes to launching meme tokens due to the former’s lower fee structure, easier trading, and inexpensive token presales.

    However, Dencun could potentially be a game-changer in this aspect, potentially positioning Base as the hub for the next wave of meme coin frenzy.

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    Chayanika Deka

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  • Macro Factors to Shape Bitcoin Prices: Coinbase’s Insights Post-Halving

    Macro Factors to Shape Bitcoin Prices: Coinbase’s Insights Post-Halving

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    All eyes are on the upcoming Bitcoin halving scheduled for mid-April 2024, which will reduce the rewards granted to miners for validating transactions by half. This will mark the fourth occurrence of a halving event in Bitcoin’s history.

    Although the market is currently experiencing a downturn, Bitcoin has seen significant growth of more than 150% since mid-October last year. According to the latest “handbook” by Coinbase, this strong performance will continue up to and after the upcoming halving.

    Coinbase Warns of Limited Historical Evidence

    Even though there’s a chance the halving could positively influence Bitcoin’s performance, Coinbase pointed out that the historical evidence supporting this connection is limited, making it somewhat speculative. Additionally, Bitcoin’s price is influenced by factors beyond crypto-specific events like halvings, indicating that it doesn’t operate in isolation.

    It is evident that a significant portion of Bitcoin’s recent surge was propelled more by optimism regarding spot Bitcoin ETFs rather than excitement surrounding the halving. Looking forward, Coinbase said that there are several macroeconomic factors that are poised to influence Bitcoin prices significantly.

    Coinbase anticipates the US Federal Reserve to start rate cuts as early as May and initiate a reduction in its quantitative tightening program shortly thereafter.

    The handbook also drew attention to the possibility of heightened selling pressure from miners, who may sell a larger portion of their rewards, as well as from companies emerging from bankruptcy, such as former crypto lenders Celsius Network and Genesis Global.

    Bitcoin’s On-Chain Analytics

    Upon assessing on-chain analytics, Coinbase observed that the current cycle closely mirrors the period from 2018 to 2022, during which the leading crypto asset saw a 500% increase from its lowest point.

    Its handbook also shared an interesting observation about the total supply of Bitcoin held by long-term investors – individuals who retain their crypto holdings for a minimum of 155 days. Historically, this timeframe indicates a notable decline in the likelihood of these assets being sold off.

    Assuming all other factors remain constant, Coinbase said that the long-term holders are expected to be less inclined than short-term holders to see halvings as a chance to capitalize on market strength by selling.

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    Chayanika Deka

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  • Coinbase chief lawyer urges SEC to approve Ethereum ETFs

    Coinbase chief lawyer urges SEC to approve Ethereum ETFs

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    The SEC has no compelling reason to reject applications to launch an Ethereum ETF, says Coinbase chief legal officer Paul Grewal.

    In his X post, Grewal revealed vital facts about Ethereum, highlighting its widespread adoption among millions of Americans since its inception in 2015 and its integral role in the cryptocurrency ecosystem.

    According to the Coinbase lawyer, the SEC has treated Ethereum (ETH) as a commodity, not a security, for many years. The CFTC and federal courts have unanimously confirmed that the asset has this status.

    Coinbase‘s lawyer referred to statements made by the agency’s director of corporate finance, William Hinman, in 2018. He also recalled SEC Chair Gary Gensler’s speech in front of Congress before he was appointed head of the commission. In his remarks, Gensler took a similar position.

    Grewal stressed that Ethereum needs to meet the criteria of the Howey test, which defines securities. He pointed to consistency in the asset’s oversight, including its listing on CFTC-regulated futures exchanges starting in 2021.

    In light of the established regulations, Grewal urged the SEC not to create unnecessary barriers to approving spot Ethereum ETFs. He emphasized that doubts about ETH’s regulatory status contradict a long-standing precedent and could undermine investor confidence.

    “Digital assets like ETH that do not involve an ongoing contractual obligation related to a business enterprise are not “investment contracts” or otherwise “securities.”

    Paul Grewal, Coinbase chief legal officer

    Grewal’s comment came in response to the regulator’s decision on March 20 to postpone the verdict on VanEck’s Ethereum ETF application. The department has extended the review period until May 23 and asked for public comments. Previously, the Commission came to similar conclusions based on similar proposals.

    Franklin Templeton, BlackRock, Fidelity, and Invesco with Galaxy are also participating in the race to launch an ETF based on ETH.


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    Anna Kharton

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  • Coinbase Plans $1B Bond Sale That Avoids Hurting Stock Investors, Copying Michael Saylor’s Successful Bitcoin Playbook

    Coinbase Plans $1B Bond Sale That Avoids Hurting Stock Investors, Copying Michael Saylor’s Successful Bitcoin Playbook

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    • Coinbase plans to raise $1 billion through a convertible debt offering, following the path of Michael Saylor’s MicroStrategy.

    • The offering has an extra provision, “negotiated capped call transactions,” which will ensure less dilution at the conversion.

    • The raise comes after Wall Street analysts threw in the towel on their bearish stance on the stock.

    The only publicly traded cryptocurrency exchange in the U.S., Coinbase (COIN), announced a plan to cash in on the recent rally in digital assets by raising $1 billion through selling convertible bonds, avoiding an equity sale that could hurt its stock price and also following the path Michael Saylor’s MicroStrategy has taken to fund its crypto aspirations.

    Coinbase said on Tuesday that it will offer the unsecured convertible senior notes via a private offering. Convertible bonds can be turned into shares of the issuing company (or cash) at a certain point. For the notes Coinbase plans to offer, that conversion year is 2030. Had the company chosen instead to raise money by selling new Coinbase shares, that would dilute the ownership interest of existing shareholders – something investors may view unfavorably.

    By tapping the debt market to fund its crypto business, Coinbase is pursuing a strategy Saylor has pursued at MicroStrategy over the past few years. Saylor’s company has purchased 205,000 bitcoin, which are now worth nearly $15 billion, much of which is funded by MicroStrategy’s sale of more than $2 billion of convertible notes. Just this month, MicroStrategy sold $700 million of them, and there was enough demand that the company could sell more than the originally anticipated $600 million.

    Coinbase is taking an extra step to reduce the dilution when its debt is converted into equity by offering “negotiated capped call transactions” – essentially a hedge to prevent dilution during the conversion of notes. (MicroStrategy did not include such a provision in its most recent deal.)

    Issuers use these hedges with convertible debt to prevent dilution to existing shareholders, even when their share price rises above the conversion price, though they have to pay a fee. During its breakneck rally, fitness company Peloton famously raised $1 billion in convertible debts in 2021, including a capped call option. “The capped call transactions will cover, subject to customary adjustments, the number of shares of Coinbase’s Class A common stock that will initially underlie the notes,” Coinbase said.

    The move comes after a massive rally in bitcoin, which has taken the price of the digital asset to an all-time high above $73,000. Bitcoin is up 67% this year, while Coinbase’s stock soared by 48% in the same time period. Publicly traded companies often take advantage of bull markets by raising money by selling new securities such as equity, convertible notes, etc.

    Coinbase said it may use proceeds from its transaction to repay debt, pay for potential capped call transactions and possibly to acquire other companies.

    Coinbase’s $1 billion offering comes after some Wall Street analysts ditched their bearish stance on the stock. Raymond James and Goldman Sachs are bears that have upgraded the stock, citing the massive rally in the digital asset markets.

    Read more: Coinbase Gets Another Upgrade, This Time at Raymond James, as Bears Capitulate

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  • Coinbase Says AI Tokens Value ‘Overstated,’ Surge Fueled by Hype

    Coinbase Says AI Tokens Value ‘Overstated,’ Surge Fueled by Hype

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    A recent Coinbase report notes that the perceived value of numerous AI tokens has been overstated, leading to concerns regarding their sustainability.

    David Han, a research analyst at Coinbase, highlighted the recent price surges observed in these tokens may be driven more by hype than genuine utility or usage.

    Surge in AI-Related Crypto Projects Raises Questions

    Based on data from CoinGecko, AI-related crypto projects have surged to a total value of $26 billion this year. A significant portion of this increase, around 30%, occurred in a single day, coinciding with the rise in Nvidia stock.

    Since the start of the year, AI tokens such as Akash and Render have experienced significant increases, with gains of 146% and 99%, respectively, surpassing Bitcoin’s 54% rise. Despite these impressive increases, Han pointed out that the future outlook for most of these projects remains uncertain.

    The report noted that AI tokens typically benefit from the overall bullish sentiment in the crypto market and the dissemination of AI-related news. However, Han emphasized that the current attention on AI tokens may be exaggerated.

    He expressed that the perceived value of many AI tokens might be inflated due to the widespread focus on the AI industry, and these coins may lack sustainable demand drivers in the short to medium term.

    Han also highlighted specific challenges faced by AI tokens like Akash Network. It operates similarly to tech giants such as Amazon and Google by leveraging users’ computing power for cloud computing in exchange for payment, which has seen increased usage. However, there have been issues such as declining potential supply and demand for Akash Network.

    Furthermore, he suggested that projects like that should reconsider their token distribution strategies to attract more attention. He stressed that only “nuanced” use cases could enable these projects to compete with centralized giants like Amazon Web Services or ChatGPT.

    Buterin Advocates for AI Integration

    In addition to the insights provided by Coinbase, Vitalik Buterin, the co-founder of Ethereum, recently voiced optimism regarding integrating artificial intelligence to address issues within Blockchain networks.

    Buterin emphasized the potential of AI-driven audits to identify and rectify problematic code within the Ethereum network, highlighting its use in mitigating the “biggest technical risk” to the network.

    Meanwhile, Coinbase’s analysis points out two potential avenues for growth within the crypto-AI sector: improving Blockchain data accessibility for human interpretation and analysis and decentralizing the predominantly centralized infrastructure of AI. However, Han stresses that a decentralized AI future is uncertain, highlighting the unpredictable nature of the AI industry’s direction.

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    Wayne Jones

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  • Warren Buffett Warns Of ‘Casinolike’ Behavior In Markets As Coinbase Crashes Because Of ‘Heightened Traffic’ From Its ‘Robinhood Moment’

    Warren Buffett Warns Of ‘Casinolike’ Behavior In Markets As Coinbase Crashes Because Of ‘Heightened Traffic’ From Its ‘Robinhood Moment’

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    Warren Buffett cautioned he’s seeing signs of excess in markets, likening their price action to a casino.

    “For whatever reasons, markets now exhibit far more casinolike behavior than they did when I was young,” Buffett told Fortune magazine.

    While he might’ve been talking about stock markets, even more volatility in the crypto markets caused Coinbase Global Inc. (NASDAQ:COIN) to be temporarily unable to handle the load.

    Don’t Miss:

    For a brief time, many Coinbase users saw zero account balances and were unable to buy or sell cryptocurrencies.

    The chaos reminded some traders of Robinhood Market Inc.‘s (NASDAQ:HOOD) 2021 fiasco caused by the unexpected rise in meme stocks such as GameStop Corp. (NYSE:GME).

    A popular Reddit post titled “Dear Coinbase – Enjoy your Robinhood Moment” expressed disappointment in the similarities.

    While the incident caused Coinbase’s stock to dip slightly, it’s still up about 215% over the past year, largely because of the rise of Bitcoin and the increased trading fees generated from the cryptocurrency.

    The increased trading fees that both Coinbase and Robinhood have achieved are likely all part of what Buffett was voicing his displeasure over.

    Trending: Investing in startups isn’t just for Silicon Valley elite. Ordinary individuals like you have the power to support innovative ventures and reap substantial rewards. 

    Buffett’s late business partner Charlie Munger bluntly assessed Robinhood in 2021, saying, “I think it’s just God awful that something like that brought investments from civilized men and decent citizens. It’s deeply wrong. We don’t want to make our money selling things that are bad for people.”

    Buffett’s Berkshire Hathaway Inc. (NYSE:BRK) might not have had the same gains as Coinbase over the past year, but it still achieved a roughly 33.3% gain over the past year.

    One benefit to owning Berkshire has been its relatively low volatility compared to the more speculative Coinbase as well as its proven staying power over time.

    While times have changed, Buffett believes the speculative behavior of investors hasn’t, saying, “Today’s active participants are neither more emotionally stable nor better taught than when I was in school.”

    Buffett bought his first stock in 1941, a full 71 years before Coinbase was founded.

    Who will have better returns over the next 71 years is sure to be a debate.

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    This article Warren Buffett Warns Of ‘Casinolike’ Behavior In Markets As Coinbase Crashes Because Of ‘Heightened Traffic’ From Its ‘Robinhood Moment’ originally appeared on Benzinga.com

    © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • Coinbase scrambles to restore digital wallets after some customers saw $0 in their accounts

    Coinbase scrambles to restore digital wallets after some customers saw $0 in their accounts

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    SEC cracks down on cryptocurrencies


    SEC cracks down on cryptocurrencies, suing Binance and Coinbase

    04:23

    Coinbase apps are “recovering” after some customers opened their digital accounts to find them showing zero balances, CEO Brian Armstrong said Wednesday afternoon. 

    The cryptocurrency exchange acknowledged the issue earlier Wednesday after users reported difficulties making trades and that their accounts were empty. 

    “Apps are now recovering,” Armstrong said on X (formerly known as Twitter). “We had modeled a ~10x surge in traffic and load tested it. This exceeded that number.”

    He added that it’s “expensive” to keep the company’s services “over-provisioned,” meaning overloading an app to test its capacity and make sure it can handle surges in traffic.  

    The company had posted about the issue earlier in the day. 

    “We are aware that some users may see a zero balance across their Coinbase accounts & may experience errors in buying or selling. Our team is investigating this & will provide an update shortly. Your assets are safe,” the company said on X.

    Coinbase  included a link to its website where customers can track the status of the incident. 

    “We’re beginning to see improvement in customer trading,” the company said in an update on its site. “Due to increased traffic, some customers may still see errors in login, sends, receives and with some payment methods. Rest assured your funds are safe.”

    On social media, some cryptocurrency traders who use Coinbase said the glitch has eroded their trust in the platform. One user pointed out that the errors were occurring at “a key time in the market,” given that bitcoin prices have surged in recent days and topped $60,000 on Thursday. 

    Megan Cerullo


    img-6153.jpg

    Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News Streaming to discuss her reporting.

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  • Coinbase Custody Accounts For 90% Of All Bitcoin ETFs – Details

    Coinbase Custody Accounts For 90% Of All Bitcoin ETFs – Details

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    Coinbase Custody reportedly now holds over 90% of all Bitcoin ETFs in the United States. This development was revealed by the crypto exchange’s CEO, Brian Armstrong, while appraising the company’s performance in the fourth quarter (Q4) of 2023.

    Coinbase Emerges As Major Player In Bitcoin ETF Market

    In an X post on February 16, Brian Armstrong shared specific highlights of Coinbase’s achievement in Q4 2023. In particular, He noted that the American crypto exchange has played a crucial part in facilitating the adoption of cryptocurrencies by traditional financial firms (TradFi).

    A major part of this adoption is the Bitcoin ETF market which is worth $37 billion, ranking as the second largest commodity ETF market after Gold. Armstrong noted that Coinbase has played a significant role in this development, serving as custodian for 90% of the investment funds in the Bitcoin ETF market.

    For context, a custodian is a regulated financial institution that holds customers’ securities and assets, providing protection against any form of loss or theft. Notably, Coinbase is listed as the custodian for eight of the 11 recently launched Bitcoin spot ETFs. These include BlackRock’s IBIT, Ark Invest’s ARKB, Bitwise’s BITB, and Grayscale’s GBTC, among others.

    These statistics indicate that Coinbase is well placed to record larger milestones as the top traditional financial institutions are tipped to finally invest in Bitcoin ETFs, especially upon the proven success and stability of the Bitcoin spot ETFs.

    According to Armstrong, other notable Coinbase achievements in Q4 2024 include the launch of the exchange’s international wing, and the layer-2 blockchain solution Base. The crypto exchange also claimed to slash its annual costs by 45% while generating a total income of $3.1 billion.

    Looking Forward To 2024

    In retrospect to 2024, Armstrong stated that Coinbase will maintain focus on its international expansion and new derivatives products. In addition, they will aim to promote the adoption of crypto payments by transforming the Coinbase wallet into a super app. 

    Finally, the exchange CEO states that Coinbase will continue to advocate for a clear regulatory framework applicable to the crypto space. Armstrong says that Coinbase is committed to this course and is willing to explore all means, including legal processes as well as engaging the federal legislators.

    

COIN trading at $180.28 on the trading chart | Source: COIN chart on Tradingview.com

    Featured image from CNBC, 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.

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    Semilore Faleti

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  • Bitcoin ETFs Boosts Coinbase (COIN) Shares As JPMorgan Upgrades Rating

    Bitcoin ETFs Boosts Coinbase (COIN) Shares As JPMorgan Upgrades Rating

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    The recent Bitcoin rally, propelling its price to the $52,000 level, has positively impacted the stock of US-based cryptocurrency exchange Coinbase (COIN). After experiencing a notable dip to $115 at the start of February, Coinbase’s stock rose to $172 on Thursday, following a significant upgrade by a JPMorgan analyst.

    Improved Prospects For Coinbase Amid Crypto Rally

    According to a Bloomberg report, JPMorgan analyst Kenneth Worthington abandoned his bearish view on Coinbase weeks after downgrading the stock. 

    As Bitcoin traded higher, Coinbase shares gained as much as 7.8% following the upgrade. Worthington believes the exchange will likely benefit from the recent rally in digital asset prices, prompting him to shift his rating back to neutral.

    This change in stance comes after Worthington’s January downgrade, where he predicted a potential deflation of enthusiasm for Bitcoin exchange-traded funds (ETFs). 

    However, contrary to his previous forecast, Bitcoin ETFs have been successful in terms of trading measures, and the price of Bitcoin has surged beyond $52,000, reaching its highest level since 2021. In a note to clients on Thursday, Worthington explained:

    Given the acceleration in recent days of flows into Bitcoin ETFs and the significant price appreciation of Bitcoin and now Ethereum, we are returning to a Neutral rating on Coinbase as we see the higher cryptocurrency prices not only sustaining but improving activity levels and Coinbase’s earnings power as we look to 1Q24.

    The daily chart shows COIN’s 4% uptrend in the past 24 hours. Source: COIN on TradingView.com

    Coinbase’s stock experienced an 8% dip at the beginning of the year, following an impressive 400% surge in 2023. Analyst opinions on the stock remain divided, with buy, hold, and sell recommendations being roughly evenly split. 

    Worthington maintained his $80 price target on the stock ahead of the company’s earnings report, which is scheduled to be released after the market closes on Thursday.

    Worthington emphasized that Coinbase’s business is closely tied to token prices, with its core revenue being transaction-based. As the value of tokens increases and trading activity gains momentum, fees based on the value traded are expected to drive higher trading volumes, ultimately contributing to improved revenue for Coinbase.

    Bitcoin ETFs Witness Significant Trading Volume 

    On February 14th, the trading volume of Bitcoin ETFs showcased notable figures, with Blackrock’s IBIT recording the lead with $721 million in volume. 

    Grayscale’s Bitcoin Trust (GBTC) followed closely with $619 million, while Fidelity’s FBTC secured the third spot with $456 million. On the other hand, Ark Invest accumulated a volume of $169 million.

    The nine ETFs’ total trading volume amounted to approximately $1.5 billion. Notably, the largest ETFs experienced higher trading volume than the previous day, with IBIT surpassing $700 million and GBTC exceeding $600 million.

    Coinbase
    Bitcoin ETF’s February 14 trading volumes with Blacrock’s IBIT leading the pack. Source: AlexOtta on X

    Intriguingly, before the trading session, GBTC sent less than half of the Bitcoin it sent to Coinbase the previous day. Despite this decrease, GBTC’s total trading volume was 50% higher.

    As the demand for Bitcoin continues to surge, ETFs play a crucial role in facilitating institutional and retail investors’ participation in the cryptocurrency market. The increased trading volume of Bitcoin ETFs highlights investors’ growing interest and confidence in digital assets.

    Coinbase
    BTC’s price rally on the 1-D chart. Source: BTCUSDT on TradingView.com

    Currently, Bitcoin is trading at $51,900 and encountering a critical resistance level at $52,000. 

    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.

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    Ronaldo Marquez

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  • Rakuten: Get $50/5k For Signing Up With Coinbase & Making $100 In Trades – Doctor Of Credit

    Rakuten: Get $50/5k For Signing Up With Coinbase & Making $100 In Trades – Doctor Of Credit

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    Update 2/11/24: Available again at $50/5k MR points. Hat tip to reader Davis

    Update 2/15/22: They’ve lowered this now to $30/3k instead of $40/4k. At that rate you’d be better off doing the Swagbucks deal which only requires a $5 trade.

    The Offer

    Direct Link to offer

    • Rakuten is offering $40 cashback (or 4,000 Membership Rewards points) when you sign up for Coinbase and trade a cumulative amount of $100 within 6 months.

    The Fine Print

    • Exclusions: Cash Back is only available on a new account once a user trades a cumulative amount of $100 within the first six months. Cash Back is only available on the first cumulative $100 traded.
    • Cash Back is only valid for new customers, one time per customer.
    • Special Terms: Using coupon codes that are not listed on Rakuten may void Cash Back. To be safe, stick to codes provided by Rakuten.
    • Posting Time: Cash Back will be automatically added to your Rakuten account tomorrow.

    Our Verdict

    I don’t personally trade crypto and don’t necessarily recommend crypto as an investment strategy. Some people like putting some amount of money in crypto or like doing the Coinbase freebie deals, so this is a good way of getting a bonus along the way.

    Easy-ish win for those who don’t yet have a Coinbase account. We’ve seen $30 from Swagbucks before, and this deal is $10 better.

    You can read the comments of the previous post for some tips of how to save on the Coinbase fees, and also how to trigger the $5 Coinbase bonus along the way as well.

    Hat tip to reader Davis

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    Chuck

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  • Coinbase Earn – Learn About Access Zetachain (ZETA), Earn $9 – Doctor Of Credit

    Coinbase Earn – Learn About Access Zetachain (ZETA), Earn $9 – Doctor Of Credit

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    The Offer

    Direct link to offer

    • Coinbase Earn is offering $9 ZETA when learning about Zetachain. Questions and answers are as follows:
      • It connects fragmented blockchains for a seamless crypto experience
      • Access and manage crypto and data on all blockchains
      • Zetahub

    Our Verdict

    Been awhile since we saw one of these offers. I don’t see this one, so if somebody can share the questions (answers already above) that would be great (easier for people to find if they are searching for the questions).

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    William Charles

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  • Bitcoin SV (BSV) Price Dips Following Coinbase Delisting

    Bitcoin SV (BSV) Price Dips Following Coinbase Delisting

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    Bitcoin SV (BSV),  a hardfork of the Bitcoin token, has drawn much attention in the last day after top American exchange Coinbase announced its termination of support for the asset. Following this news, BSV’s price has taken a hit, falling by over 5% in the last 24 hours.

    Coinbase Ends Support For Bitcoin SV

    In an X post on February 3, Coinbase shared that it had officially withdrawn support for BSV on its platform. This announcement follows a previous post in December when the exchange first communicated its intentions to delist BSV.

    According to Coinbase, all BSV remaining in customers’ wallets have been liquidated and replaced with the equivalent market value of another asset. However, the exchange states that certain wallets may not receive any compensation assets due to the transaction costs associated with the liquidation and replacement process. 

    As of now, Coinbase has provided no official reason behind its decision to remove BSV from its coin offerings. However, it is worth noting that Bitcoin SV has been a rather controversial asset since its creation in 2018. 

    Notably, the BSV blockchain network has been subject to multiple 51% attacks in the past due to its rather “centralized” structure, which serves as a source of concern to many exchanges. Aside from Coinbase, other top exchanges that have delisted Bitcoin SV include Binance, Kraken, Bittrex, Robinhood, etc. 

    Furthermore, the token’s founder Craig Wright has continuously drawn criticism to himself for claiming to be the anonymous inventor of Bitcoin – Satoshi Nakamoto. In 2022, Wright filed to obtain the Bitcoin copyright and block the operations of the Bitcoin network and Bitcoin Cash claiming a violation of intellectual property. However, the court rejected this petition in the face of surmountable evidence against the plaintiff.

    Bitcoin SV Price Overview 

    At the time of writing, BSV trades at $72.65 with a 5.61% price loss on the last day but a 0.10% gain on the weekly chart. Despite an impressive end to 2023 in which it gained by almost 110% in the last week of the year, the Bitcoin hardfork is now down by 15.20% in the last 30 days. 

    Meanwhile, the token’s daily trading volume is barely positive, having gained by 7.54% to attain a value of $90.39 million. With a total market cap of $1.43 billion, Bitcoin SV ranks as the 52nd largest cryptocurrency in the world.

    BSV trading at $72.03 on the daily chart| Source: BSVUSDT chart on Tradingview.com

    Featured image from iStockphoto, 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.



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    Semilore Faleti

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  • Bitcoin Set For Positive Performance In Q2 2024: Coinbase Analysts

    Bitcoin Set For Positive Performance In Q2 2024: Coinbase Analysts

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    Analysts at cryptocurrency exchange Coinbase are backing Bitcoin and the entire crypto market to put up a significantly positive performance in Q2 2024. This development comes as BTC continues its market recovery, gaining by 3.31% in the last week to trade above $43,000. 

    Downward Pressure On Bitcoin Subsides, Macro Factors To Come Into Play: Analysts

    In the Coinbase weekly report on Friday, the American exchange’s analysts noted that the market factors that induced downward pressure on Bitcoin were being phased out. This claim is backed by the completion of the GBTC’s liquidations by defunct exchange FTX as well as the recovery of certain crypto entities from bankruptcy, indicating a change in the dynamics of the BTC market. 

    Furthermore, the analysts also highlighted the stable performance of the Bitcoin spot ETF market in the last week, marked by average daily net inflows of $200 million and a daily trading volume of $1.35 billion in the last week. However, in the coming weeks, Coinbase market experts have predicted the macroeconomic factors to gain more influence in the crypto market. 

    In particular, the analysts made reference to the US Federal Reserve’s decision to postpone the deliberation on scaling back its quantitative tightening (QT) to the next Federal Open Market Committee (FOMC) meeting in March. Based on this development, they predict the easing cycle will begin on May 1, which typically involves measures such as lowering interest rates to make loans cheaper and stimulate economic activity. In addition, they anticipate the Fed to start halting its balance sheet reductions by June to further support the US economy. 

    Interestingly, they believe the Fed could consider implementing the end of the balance sheet reduction at the same time with rate cuts. Based on the “anodyne” policies policymakers implement in an election year, Coinbase analysts predict the US apex bank will cut interest rates by 100 basis points (bps) – 25bps more than the Fed’s expectation for future rates – which is equivalent to lowering rates by 1%. 

    Generally, a reduction in interest rates is a positive omen for the digital asset ecosystem as it allows investors to pay low borrowing fees, accumulating more funds to invest in risk assets such as crypto tokens. Based on the multiple factors listed above combined with “idiosyncratic” factors, such as the Bitcoin halving, the analysts at Coinbae predict BTC, alongside other tokens, will serve as favorable portfolio additions in Q2 2024. 

    Bitcoin Price Overview

    At the time of writing, Bitcoin trades at $43,077.76 with a 0.20% gain in the last day. Meanwhile, the asset’s daily trading volume is down by 15.45% and is valued at $16.78 billion. With a market cap of $844.85 billion, BTC continues to rank as the largest cryptocurrency in the world.

    BTC trading at $43,048 on the daily chart | Source: BTCUSD chart on Tradingview.com

    Featured image from CNBC, 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.

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    Semilore Faleti

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  • How To Buy, Sell, And Trade Crypto On The Base Network

    How To Buy, Sell, And Trade Crypto On The Base Network

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    The foundational infrastructure of the Base Network brings about yet another Ethereum Layer 2 network, distinguished by its scalability and empowerment through the notable association with Coinbase. Coinbase is recognized globally as one of the most trusted cryptocurrency exchanges and companies, Coinbase effectively manages a diverse portfolio of crypto assets, solidifying its status as a cornerstone within the digital currency realm.

    Positioned as a pivotal solution to address the persistent challenge of high transaction costs within the Ethereum network, the Base Chain stands quite firmly to revolutionize transaction fees, delivering a cost-effective alternative within the secure Ethereum environment. The assurance of a safe and reliable ecosystem is heightened by the affiliation with Coinbase, an industry titan renowned for its unwavering commitment and 10-year-long track record of great service.

    Reasons To Trust The Base Chain

    The current centralized phase of the Coinbase company, with its owners and Devs known to the public, establishes a solid foundation for users to place their trust in the Base chain. With over a decade of extensive experience in the cryptocurrency space, Coinbase has consistently demonstrated its expertise by developing and launching numerous successful crypto products.

    This wealth of experience instills confidence in the Base Chain as it navigates its initial stages of centralization, with a strategic vision to progressively evolve into a decentralized entity over time.

    For those embarking on their journey within the Base Chain ecosystem, it is imperative to keep certain key considerations in mind. Firstly, the association with Coinbase serves as a testament to the network’s reliability and credibility. Additionally, users can anticipate ongoing enhancements and decentralization initiatives as the Base Chain matures, aligning with the broader ethos of blockchain technology.

    In summary, the Base Network, fortified by its affiliation with Coinbase, emerges as a promising Ethereum Layer 2 solution, poised to alleviate the burden of high transaction costs while providing a secure and gradually decentralized environment.

    Key Features To Note About Base Chain

    • Absence of Native Token: Notably, the Base Chain currently operates without a native token. Instead, transaction fees within the ecosystem are conducted using Base ETH. This choice streamlines interactions on the Base Chain and positions it as a unique player within the cryptocurrency landscape on the Ethereum chain. Some chain accepts their native token for gas fees but the Base chain accepts Base ETH.
    • Layer 2 Security Powered by Ethereum: The Base Chain distinguishes itself as a layer 2 chain, constructed upon the robust Ethereum technology. This strategic integration ensures a heightened level of security, leveraging the well-established reputation of Ethereum as one of the most secure technologies in the crypto community. Consequently, the Base Chain is anticipated to offer a security profile close to the Ethereum Layer 1 network.
    • Developer Transparency and Coinbase Backing: In contrast to many emerging chains, the Base Chain stands out due to its transparent development process and substantial backing by Coinbase. The association with Coinbase, a leading cryptocurrency exchange, lends credibility and trust. Considering Coinbase’s track record of providing crypto products to over 100 million users and processing $80 billion worth of crypto assets without controversies, users can confidently rely on the expertise of the development team.
    • Anticipated Low Gas Fees: One of the attractive features of the Base Chain is the expectation of significantly lower gas fees compared to the native Ethereum chain. This affordability factor provides users with an opportunity to experience Ethereum Layer 1 compatibility at a fraction of the cost, enhancing the cost-effectiveness of transactions on the Base Chain.
    • Open Source Technology with Optimism Integration: The Base Chain’s Open Source technology is powered by the Optimism Open Source chain. This integration not only supports the overall functionality of the chain but also simplifies the development process for creators. Developers can anticipate a user-friendly environment for building applications on the Base Chain, thanks to the enhanced capabilities and support provided by the Optimism Open Source chain.

    Expanding on the diverse utilities and functionalities within the Base Ecosystem

    • Bridging Utility: The Base Ecosystem has a bridging utility, facilitating seamless interoperability with other blockchain networks. This feature enhances the overall connectivity of the Base Chain, allowing for the fluid transfer of assets and data across different blockchain environments.
    • DeFi (Decentralized Finance) Utility: Positioned at the forefront of decentralized finance, the Base Ecosystem provides comprehensive support for DeFi applications. Users can engage in a spectrum of financial services, including lending, borrowing, and trading, all within the secure and efficient framework of the Base Chain.
    • Gaming Utility: Acknowledging the growing significance of blockchain in the gaming industry, the Base Ecosystem integrates a gaming utility. This functionality opens avenues for the development and deployment of blockchain-based games, ensuring a secure and transparent gaming experience for users.
    • Social Utility: Recognizing the social aspect of blockchain technology, the Base Ecosystem incorporates a social utility. This facet enables the creation and deployment of decentralized social applications, fostering interactions, and transactions within a secure and trustless environment.
    • NFT (Non-Fungible Token) Utility: The Base Ecosystem extends its utility to support Non-Fungible Tokens (NFTs), a rapidly evolving and popular aspect of the blockchain space. Users can create, trade, and interact with NFTs seamlessly, leveraging the secure infrastructure of the Base Chain.
    • Compatibility with EVM-Supported Wallets: The Base Ecosystem ensures widespread accessibility by allowing users to utilize and access its utilities through different Ethereum Virtual Machine (EVM) supported wallets. This compatibility enhances user convenience, as individuals can leverage familiar wallets to engage with the diverse utilities offered by the Base Chain.

    How To Buy, Sell, And Trade On The Base Network

    Select an EVM-Compatible Wallet

    To be able to make any transactions on the Base network, you need to have an EVM-Compatible Wallet. Click here to see a list of wallet options you can select from but I would recommend you use MetaMask, it is one of the most popular Ethereum Virtual Machine (EVM)-compatible wallets and also one of the most used wallets for Base Network transactions.

    If you are using a PC, install the Metamask wallet extension by clicking on “Add to Chrome” to add the extension to your Chrome browser, as shown below:

    Metamask

    Once installed, open your MetaMask, set up your account, and make sure to keep your secret phrase very safe, I would advise that you write it down on a shit of paper, away from the internet where it can’t be hacked.

    Add The BASE Network To Your MetaMask

    To add the Base Network to your MetaMask, search for Chainlist on your browser, open it, connect your MetaMask wallet, search for Base, and add it to MetaMask by clicking on “Add to Metamask”, click on “Approve” and lastly click on “Switch Network” on your Metamask.

    Chainlist

    Acquire Base ETH

    To make any transaction on the Base Network, you need Base ETH. Get your Base ETH from these cryptocurrency exchanges such as Binance, OKX, or KuCoin. Buy ETH on these platforms, go to the withdraw section, making sure to choose the BASE network as your transfer Network, which automatically converts your ETH to Base ETH as it gets to the ETH wallet destination.

    Related Reading: How To Buy, Sell, and Trade Tokens On The Arbitrum Network

    Alternatively, if you already have native ETH in your Metamask wallet, you can use the BASE bridge to bridge from the Ethereum Mainnet to the Base Network.

    Bridging to Base Network ETH From Other Ethereum Layer 2s

    If you wish to bridge your ETH to Base ETH from other Ethereum Layer 2 solutions, I would recommend secondary bridging platforms featured on the BASE Bridge platform. These platforms facilitate a smooth transition to the Base Network from various Ethereum Layer 2 environments, as shown below.

    Bridges

    Example Of Bridging to Base ETH From Other Ethereum Layer 2s

    ACROSS PROTOCOL is the first secondary bridging platform featured on the BASE Bridge platform as shown above, all you need to do is connect your Metamask wallet and select the amount of ETH you want to bridge to Base ETH and Bridge.

    Swap

    After Acquiring your Base ETH, you need to do your research and know which token you want to buy on the Base Network on Coingecko before heading over to Dexscreener to check for the token,  Dexscreener serves as a valuable tool for checking available tokens on the EVM chain, including the Base Network. 

    Charts

    By selecting the Base network on Dexscreener, you can access a comprehensive chart of available Base tokens. Note that not all tokens are supported on every DeFi DEX, search for the token you would like to trade and select it. After selecting, look out for the Green Box section selected in the image to identify which DeFi platforms support the token you wish to trade. 

    Base charts

    Obtaining Token Contract Address

    Scroll down on the Dexscreener to find the token contract address or go back to Coingecko and copy the contract address. This address is crucial when trading on DeFi platforms.

    Contract

    Copy the contract address, and when you enter it in the swap section of a DeFi platform like Uniswap, it will reveal the token. If the token is not available on Uniswap, the Dexscreener will redirect you to another supported DeFi where you can trade the token like KyberSwap.

    Kyberswap

    Connect your wallet to KyberSwap, click on the denominator token, and paste the contract address of the Base token in the search box. Before initiating any trade on DeFi, confirm that the network on the DeFi is on, in this case, the Base Network, ensuring the token’s availability on the Base Network. If it’s not initially on the Base Network, go to “Select a chain”, and select the Base network to ensure compatibility. 

    Base DApps

    Choose the desired pair of Base tokens and ETH (or other base pairs), specify the amount you want to swap, and execute the trade.

    Related Reading: How To Buy, Sell, And Trade Tokens On The BSC Network

    Reverse Trading For Base Network ETH

    If you wish to trade from a BASE token to Base ETH, simply reverse the order. Place the Base token at the top and the ETH at the bottom, then proceed with the swap. This allows you to exchange your Base token for ETH within the Base Network.

    Reverse ETH Kybeswap

    By following these steps, you can confidently navigate the trading process on the Base Network, leveraging the features of DeFi platforms and Dexscreener to make informed decisions and execute trades seamlessly.

    Conclusion

    The Base Network is another Ethereum Layer 2 network which is also affiliated with Coinbase, which is one of the most trusted cryptocurrency exchanges and companies in the crypto space with over 100 million users and processing $80 billion worth of crypto assets. Base Network has a lot of features which I have pointed out in the article already, although the Base Network does not have its Native token yet, it is still trusted and reliable due to its affiliation with Coinbase.

    Featured image from TronWeekly

    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.

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    Scott Matherson

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  • Coinbase Lawsuit: Federal Judge Blasts SEC During First Oral Arguments

    Coinbase Lawsuit: Federal Judge Blasts SEC During First Oral Arguments

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    The first round of oral arguments between Coinbase and U.S. regulators during their major legal war has come to a close.

    The result? No immediate rulings – but the judge overseeing the case found herself impressed with Coinbase’s understanding of the issues and technologies at hand.

    Coinbase VS SEC on Staking

    Judge Katherine Polk Failla began Wednesday’s hearing by crediting the “DeFi people” for filing a “really fine” amicus brief on behalf of Coinbase months ago, which explained blockchain staking “arguably better” than the Securities and Exchange Commission (SEC) had previously done.

    In its August amicus, the DeFi education fund argued that Coinbase’s staking as a service product does not qualify as an unregistered security – one of the SEC’s core allegations from its 100-page lawsuit against the crypto exchange last June.

    It explained that Coinbase’s role in staking provision was “purely ministerial” and akin to an IT service provider. Thus, it doesn’t meet the four prongs of the Howey Test – the SEC’s near-century-old legal standard for identifying investment contracts.

    Coinbase and other crypto industry leaders often argue that the Howey Test is an outdated standard with which to govern the crypto industry.

    Is ‘Howey’ Outdated?

    Judge Failla referenced such arguments during questioning, asking the SEC’s lawyer why she shouldn’t consider similar arguments from Cynthia Lummis – a crypto-supportive Republican senator.

    “She’s not just a random Senator, she’s someone deeply involved in the space. Why is she wrong?” asked the Judge.

    Paraphrasing Lummis’s position on the Howey Test, Failla added:

    “We’ve had a good run. We’ve had 90 years where these securities laws have been able to apply to these markets. But now we have something new.”

    Broadly speaking, Coinbase spent the five-hour hearing arguing that the SEC is using an overbroad interpretation of Howey and that none of the 12 tokens on Coinbase’s platform that the agency alleges are securities are as such. The company’s lawyer stated.

    “I think there would have been a lot of surprise in the 1933/1934 Congress to find an investment contract didn’t have anything to do with a contract at all.”

    According to Fox Business journalist Eleanor Terret on X, lawyers claim that Failla should take roughly 2 to 6 weeks to determine if the case should be dismissed, or enter deep legal water as with the agency’s 3.5-year lawsuit against Ripple Labs.

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    Andrew Throuvalas

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  • Grayscale Transfers Almost 12,000 BTC To Coinbase, Bitcoin Price Reacts

    Grayscale Transfers Almost 12,000 BTC To Coinbase, Bitcoin Price Reacts

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    In a significant development that could potentially impact the Bitcoin price, Arkham Intelligence data reveals that Grayscale, the manager and owner of the Grayscale Bitcoin Trust (GBTC), has been sending a significant amount of Bitcoin to Coinbase since the launch of Bitcoin spot exchange-traded funds (ETFs) on January 12.

    Grayscale Bitcoin Trust Initiates Substantial BTC Outflow

    According to the data, four days ago, Grayscale initiated the first batch of BTC outflows from their holdings to the US-based exchange in four separate batches, totaling 4,000 BTC, which amounted to approximately $183 million. However, the asset manager resumed outflows from the Trust to the exchange on Tuesday.

    A portion of Grayscale’s transfers to Coinbase. Source: Arkham

    In a recent update, approximately three hours ago, the asset manager sent an additional 11,700 BTC to Coinbase, amounting to $491.4 million. This additional selling pressure could push the Bitcoin price to test lower support levels.

    Furthermore, Bloomberg reports that investors have withdrawn over half a billion dollars from the Grayscale Bitcoin Trust during the initial days of trading as an ETF. 

    According to Bloomberg’s data, outflows from the Grayscale Bitcoin Trust reached approximately $579 million, while the other nine spot Bitcoin ETFs witnessed inflows totaling nearly $819 million.

    Investors Shift Capital To ‘Lower-Cost’ Spot Bitcoin ETFs

    James Seyffart, an ETF analyst at Bloomberg Intelligence, noted that investors may be profit-taking following the ETF conversion. The flow data provides valuable insights into the ETF’s performance following SEC approval. 

    Although over $2.3 billion of GBTC shares were traded on its first day, the outflows indicate that a portion of that volume was due to selling. Seyffart anticipates that a significant amount of capital will enter other Bitcoin exposures.

    The outflows from Grayscale’s ETF were somewhat expected. Bloomberg Intelligence had previously projected that the fund would experience outflows of over $1 billion in the coming weeks. 

    Some of this outflow can be attributed to investors shifting towards more cost-effective spot Bitcoin ETFs. With an expense ratio of 1.5%, GBTC is the most expensive US ETF directly investing in Bitcoin. In contrast, the VanEck Bitcoin Trust, the second-most expensive fund, charges 0.25%.

    On the other hand, other spot Bitcoin ETFs have witnessed net inflows. BlackRock’s IBIT attracted nearly $500 million in the first two days of trading, while Fidelity’s FBTC received approximately $421 million. 

    According to Bloomberg, these inflows suggest strong demand for Bitcoin exposure in physically backed ETFs, even beyond potential seed funding from the fund issuers.

    Bitcoin Price Finds Support At $42,000

    Currently, the Bitcoin price remains unaffected by the news of Grayscale’s transfers to Coinbase. The leading cryptocurrency is trading at $43,100, showing a slight increase of 0.8% over the past 24 hours.

    However, since the commencement of ETF trading, it is important to note that the Bitcoin price has experienced a significant retracement, declining by 8%. This decline can be attributed to profit-taking and selling pressure, with Grayscale’s involvement being noteworthy.

    In the event of a further drop in the Bitcoin price, a significant support level has been established at $42,000. If this level is breached, the next key level for Bitcoin bulls to watch is $41,350, followed by a potential dip below $40,000.

    The market is eagerly observing whether Grayscale and its BTC selloff will continue and how this will impact the Bitcoin price leading up to the scheduled halving event in April, which many consider to be the main catalyst for the year.

    Bitcoin price
    The daily chart shows BTC’s valuation at $43,100. Source: BTCUSDT 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.

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    Ronaldo Marquez

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  • Bitcoin and Ethereum Echo Previous Bull Market Patterns with 500%-1,000% Surges

    Bitcoin and Ethereum Echo Previous Bull Market Patterns with 500%-1,000% Surges

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    Bitcoin (BTC) and Ethereum (ETH) are currently following a pattern similar to previous years, during which their prices surged by 500% and 1,000%, respectively, according to the latest research report by Coinbase Research and Glassnode.

    The observation draws parallels between the ongoing crypto market cycle and the period from 2018 to 2022, characterized by substantial price increases in both cryptocurrencies.

    Bitcoin Halving’s Potential Impact on Crypto Markets

    Analysts highlight various cyclicality metrics, such as net unrealized profit/loss and supply in profit, which mirror past trends. These metrics indicate that the present state of the crypto markets doesn’t mirror the euphoric conditions seen during the peak of 2023. It suggests there might still be potential for the market to experience further surges.

    Despite acknowledging the potential positive impact of the forthcoming Bitcoin halving, Coinbase Research is cautious.

    The paper noted a lack of robust supporting evidence and characterized the relationship between the halving and market performance as somewhat speculative.

    The research points out that, with only three halving events historically, there isn’t a fully established pattern, especially considering previous events were influenced by factors like global liquidity measures.

    The upcoming Bitcoin halving, projected to occur in April 2024 based on current mining rates, will reduce the block reward from 6.25 to 3.125 BTC.

    Analyzing Ethereum’s Market and Upcoming Upgrade

    In 2023, the Ethereum (ETH) price surged by over 90%, driven by several factors, such as the success of the Shapella upgrade and the increasing likelihood of approval for spot crypto ETFs. Market participants were encouraged by these developments, contributing to the increase in the ETH value.

    Looking ahead, analysts are focusing on the upcoming Ethereum upgrade named Cancun. It is expected to enhance scalability and security to make layer-2 transactions as cost-effective as possible.

    The successful implementation of Cancun could potentially lead to a significant increase in the number of processed transactions on the Ethereum network.

    Coinbase’s analysis notes that Bitcoin and Ethereum have undergone two cycles, encompassing both bull and bear markets. The ongoing cycle, initiated in 2022, closely mirrors the patterns observed in the preceding ones.

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  • Bitcoin Erases $49,000 ETF Rally As Coinbase Users Take To Selling

    Bitcoin Erases $49,000 ETF Rally As Coinbase Users Take To Selling

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    Bitcoin had earlier shown a sharp rally toward the $49,000 mark, but the asset was quick to retrace the entire surge as the Coinbase Premium turned negative.

    Bitcoin Coinbase Premium Gap Plunged Into Negative During Past Day

    As pointed out by CryptoQuant Netherlands community manager Maartunn in a post on X, the Coinbase Premium Gap has now turned notably negative after being mostly positive for the last few days.

    The “Coinbase Premium Gap” refers to the difference between the Bitcoin prices listed on the cryptocurrency exchanges Coinbase (USD pair) and Binance (USDT pair).

    This indicator’s value basically provides hints about how the buying or selling behaviors on these two largest platforms in the sector differ from each other right now.

    When the metric has a positive value, it means that the price listed on Coinbase is higher than on Binance currently. Such a trend implies the former platform’s users are participating in a higher amount of buying (or lower amount of selling) than the Binance users.

    On the other hand, the indicator being positive suggests that Binance might be observing a higher degree of buying pressure at the moment as the price listed on the exchange is greater.

    Now, here is a chart that shows the trend in the Bitcoin Coinbase Premium Gap since the start of the year:

    Looks like the value of the metric has taken a plunge during the past day | Source: @JA_Maartunn on X

    As displayed in the above graph, the Bitcoin Coinbase Premium Gap has observed a sharp plunge down into the negative territory during the past day or so. Before this plummet, the indicator had been mostly at positive values since the start of the year.

    There were a few dips into the red zone earlier as well, but the indicator only attained minor negative values during these drops. This time, though, the premium is down to significantly negative levels.

    The price surges this year were being driven by the buyers on Coinbase, as the price rose every time the premium did as well. Coinbase is popularly known to be used by US institutional investors, so the green premium suggested that these large entities were buying, most likely in anticipation of the ETFs, which finally gained approval on January 10th.

    A while after this approval, BTC went on to sharply rally toward the $49,000 level, but the asset’s run was very short-lived as its price plummeted hard back towards the price prior to the move, thus erasing all the gains.

    The Coinbase Premium Gap had been notably positive alongside the surge, but the indicator then showed its plunge into the negative territory alongside this quick retrace. It would appear that some American institutional traders may have used the opportunity to harvest their profits.

    BTC Price

    Bitcoin has been moving sideways since the quick rally and drawdown, as its price is still floating around the $45,800 level.

    Bitcoin Price Chart

    The price of the coin seems to have shown an overall trend of consolidation recently | Source: BTCUSD on TradingView

    Featured image from Shutterstock.com, charts from TradingView.com, CryptoQuant.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.

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    Keshav Verma

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  • Bitcoin Blasts Off As Institutionals Continue Buying On Coinbase

    Bitcoin Blasts Off As Institutionals Continue Buying On Coinbase

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    Bitcoin has observed a sharp rally beyond the $47,000 level as data shows buying pressure on Coinbase has displayed no signs of letting off.

    Bitcoin Has Surged More Than 4% In Last 24 Hours As ETF Deadline Nears

    After the asset’s indecisiveness over the last few days, the cryptocurrency has appeared to have picked its direction in the last 24 hours, as its price has increased sharply.

    At the peak of this surge, the coin had crossed beyond the $47,300 mark, but since then, the coin has registered some pullback as it’s now down to $46,500. The below chart shows how Bitcoin has performed during the last few days.

    Looks like the asset's price has blasted off in the past day | Source: BTCUSD on TradingView

    With this surge, the coin is up over 4% in the last 24 hours. The only cryptocurrencies in the top 20 market cap list that have attained better returns during this period are Solana (SOL) and Bitcoin Cash (BCH).

    This latest rally to levels not visited since March 2022 has come for the cryptocurrency as the US SEC deadline for a decision on BTC spot ETFs is approaching fast.

    With the expectation in the market widely being that the ETFs would get approved, it’s not surprising that buyers may be jumping in, expecting the asset to rally further after the ETFs start trading.

    Data of an indicator could also point towards large entities being involved in accumulation in this leadup to the day of decision.

    BTC Coinbase Premium Gap Has Been Positive For More Than A Week Now

    As CryptoQuant Netherlands community manager Maartunn pointed out in a post on X, the Bitcoin Coinbase Premium Gap has been positive for several consecutive days.

    The “Coinbase Premium Gap” refers to a metric that keeps track of the difference between the Bitcoin prices listed on cryptocurrency exchanges Coinbase (USD pair) and Binance (USDT pair).

    This indicator’s value tells us about the difference in the buying (or selling) behaviors on the two largest platforms in the sector. Below is a chart showing the recent trend in this metric’s 14-day simple moving average (SMA).

    Image

    The value of the metric seems to have been green since a while now | Source: @JA_Maartun on X

    As displayed in the above graph, the Bitcoin Coinbase Premium Gap has been positive for almost 2024, with only one dip in the metric coming on the first day of the year.

    This suggests that the buying pressure on Coinbase has been greater than on Binance for over a week now. US-based institutional investors widely use the former, while the latter hosts more global traffic.

    Thus, this indicates that large institutional traders have possibly been going shopping recently. Another indicator that suggests accumulation from the whales is the “large holders netflow” metric from IntoTheBlock, which has displayed positive spikes recently.

    Bitcoin Large Holders Netflow

    The data for the BTC large holders netflow since the start of the year | Source: IntoTheBlock on X

    “Large holders bought the dip! Bitcoin holders holding >1% of the supply accumulated more than 14k BTC over the past week as prices dipped below $43k,” explains IntoTheBlock.

    Featured image from Shutterstock.com, charts from TradingView.com, CryptoQuant.com, IntoTheBlock.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.

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    Keshav Verma

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