Bitcoin continues to experience turbulent times and does not find sufficient support to climb towards USD 10,000. Currently, Bitcoin
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Bitcoin NUPL data suggests that the crypto’s cycles are getting less sharper with time as profit tops and loss bottoms aren’t following a horizontal line. Bitcoin NUPL Didn’t Exceed The 0.75 “Greed” Mark During This Cycle As explained by an analyst in a CryptoQuant post, the BTC profit and loss cycles shouldn’t be treated with horizontal lines. The “Net Unrealized Profit and Loss” (or the NUPL in brief) is an indicator that tells us whether the market as a whole is holding a net profit or a net loss right now. The metric’s value is calculated by taking the difference between the market cap and the realized cap, and dividing it by the market cap. NUPL = (Market Cap – Realized Cap) ÷ Market Cap When the value of this indicator is greater than zero, it means the average investor is currently holding some profits. On the other hand, negative NUPL values imply the overall market is holding a net amount of unrealized loss at the moment. Related Reading: Ethereum Market Observes Pileup Of Leverage As ETH Breaks $2k Now, here is a chart that shows the trend in the Bitcoin NUPL over the course of the history of the crypto: Looks like the value of the metric has surged up and turned positive again recently | Source: CryptoQuant As you can see in the above graph, the quant has marked the relevant zones of trend for the Bitcoin NUPL indicator. In the past, many traders used to believe that cycle tops form whenever the metric’s value surges above 0.75, entering into the “greed” zone. Similarly, bottoms were thought to take place when the indicator went below the -0.4 mark, reaching into the “fear” region. Related Reading: Bitcoin Bearish Signal: Whales With 1k-10k BTC Depositing To Exchanges However, the analyst from the post argues that horizontal lines like these shouldn’t be used to mark these cycle tops and bottoms. During the previous two cycles, the top that came after was lower than the one before. In the current cycle, the metric never crossed into the greed zone and topped out just around the 0.75 level. This could mean that tops are getting lower and lower with each cycle. Similarly, the last two bottoms also had descending loss amounts. Just a while ago, the NUPL’s value sharply dropped off into negative and subsequently rebounded back up into positive values after forming a potential bottom. However, this low was far from the conventional 0.4 mark. If this low was truly the bottom for this cycle, then it would add further credence to the idea that profit and loss fluctuations in the market are getting less drastic with time. BTC Price At the time of writing, Bitcoin’s price floats around $24.4k, up 5% in the past week. The value of the crypto seems to have been moving sideways recently | Source: BTCUSD on TradingView Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com
Many people are reacting differently to the current condition of Bitcoin and the global economy. In the past two consecutive quarters, the US has posted negative GDP, leading to a rate spike by the Feds. Though some individuals are stating that there is yet no inflation, its impact is gradually manifesting. The President and CEO of Franklin Templeton, Jenny Johnson, has aired view on the current global economic condition. Johnson stated that while the financial condition is in a sad state, Bitcoin remains its best distraction. CEO Johnson related her opinions during a recent interview. She mentioned that the prevailing economic situation is acting as a disruption. Related Reading: Will Ethereum Breach $2,000 Before The Merge? In her terms, it’s the best to happen to financial providers at the moment. Though several see Bitcoin as digital gold and an asset that could create a hedge against inflation, Johnson has a different stance. To her, BTC is just consumers’ distraction from all prevailing financial problems. Also, the CEO has no belief that governments could make Bitcoin a dominant asset for foreign exchange. She said that it was beyond typical confidence for that to happen as numerous arguments would erupt. When it comes to blockchain technology, the CEO has an impressive option concerning that. She called it the sports change, stating that it will bring a positive difference possibly to all industries. Johnson maintained that Franklin Templeton still offers cryptocurrency services to its clients. Also, the company is not planning to stop such service options now. Franklin Templeton is an American multinational holding firm. It boasts several subsidiaries. It functions as a global investment company and was founded in 1947 in New York City. Global Destructive Outplay But Bitcoin Gained Momentum Over the past few years, the entire global system had a devastating impact from the spread of COVID-19. This remained one of the great world pandemics that claimed millions of people from different countries. With the invasion and effect of the pandemic came a distortion in various aspects of life, especially social life. The overall impact on the financial system was quite massive. Related Reading: Market Sentiment Shoots Up As Bitcoin Eyes $25,000 To maintain the float of the economy during the crisis, some countries central banks, especially the US Federal Reserve, printed more fiat currency. However, such a process is taking a negative pull after two years. The world is generally battling a rising inflation rate with other factors. Russia and its president, Vladimir Putin, received the blame from the Western world, pioneered by the US. They further cut off financial connections with Russia. Also, Russia has taken the top as the most sanctioned country globally. But Russia decided to make its retribute by stopping gas deliveries to some European states. Most of the states have no alternative source and have become stranded. This action conversely hiked electricity costs, leading to an increase in price for all goods. The entire outplay of events is becoming more destructive. Featured image from Pixabay, chart from TradingView.com
BlackRock has launched a spot bitcoin private trust open to institutional inventions in the United States, the world’s largest asset manager said in a release on its website.
The post BlackRock Announces Spot Bitcoin Private Trust on Heels of Coinbase Deal appeared first on BeInCrypto.
Bitcoin valuation has come a long way since the asset’s inception. The asset’s valuation reached a milestone in November of last year when it climbed to $1.27T. The market capitalization has since then dropped below expected margins as unfavorable market conditions persist. Since June, BTC’s market cap has remained below the $470M mark due to
The post Bitcoin Mcap Hits 2-Month Peak As Asset Breaks $24k Resistance appeared first on CoinGape.
The “Bitcoin Family” have been in the headlines ever since they put everything that they had into bitcoin back in 2016. By then, the digital asset was only trading at around $900, and the family had become bitcoin millionaires with the most recent run-up. However, like everyone else, the Bitcoin Family has been hit hard […]
Bitcoin miners have borne the brunt of the bear trend since it began. They watched cash flow plummet on their machines, forcing them to look to other ways to finance their operations. The natural response to this was for public miners to dip into their bitcoin reserves and begin selling off BTC to keep their operations going. For a time, it seemed miners would stop selling due to the recovery in price, but this is proving not to be the case. Miners Offload More BTC Bitcoin miners had sold off more bitcoin than they had mined for the first time in May. The same trend then continued into June, when miners had sold thousands of BTC to cover operational and other costs. It seems this trend did not end in the month of June either, as the miners continued to sell off coins. Related Reading: CEL Rallies To $2 As Bankruptcy Proceedings Continue, But Rally May Just Be Starting Data shows that bitcoin miners had actually sold 5,700 BTC in the month of July alone, the largest sale so far. These bitcoin miners had once again sold more BTC than they had actually produced. In total, it was reported that 3,470 BTC was produced for the month, meaning they sold 50% more bitcoin than they mined. These bitcoin miners had sold more during a month when some had to shut off operations due to rising temperatures. However, one of those miners had been able to turn it around by making more money from selling energy credits to the Texas government than they would mining. The largest sellers were ousted to be CoreScientific with 1,970 BTC and BitFarms with 1,600 BTC. BTC recovers above $24,000 | Source: BTCUSD on TradingView.com Bear Trend For Bitcoin Bitcoin miners are often among the largest whales in the market. This means that whatever actions they take in regards to their portfolios can often have an impact on the market. It is evident when miners are not forced to sell their BTC that the price of the digital asset continues to rise, and the reverse is the case when they dump their coins. Related Reading: Billionaire Mike Novogratz Says Bitcoin At $30,000 Is Unlikely The sell-offs have all come due to the reduced revenue realized on a daily basis, and with no significant rise in miner revenues, it is expected that miners are going to have to keep selling. Daily miner revenues for the last week were muted with only a 1.58% growth, seeing them bring in $21.89 million. If there is to be any reversal in this selling trend, bitcoin miners would have to see more cash flow from their mining activities. However, as the price remains low, these miners are realizing less, dollar-wise, compared to a few months ago, while expenses such as electricity and machines remain the same or even higher in some cases. Featured image from Analytics Insight, chart from TradingView.com Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…
Data shows while the Bitcoin market sentiment is on the verge of entering into “greed,” the investors have remained unconfident. Bitcoin Fear And Greed Index Still Shows A Fearful Sentiment According to the latest weekly report from Arcane Research, the BTC fear and greed index has now reached the highest value since April of this […]
Bitcoin is sometimes too valuable to let go. In fact, many people – and in this case we call them “koalas” because they love to cling on and never let go – hold on to their precious crypto even when everything else seems hopeless. Predictability may be a vague word especially in an extremely volatile […]
Per a report from Hash Rate Index, Bitcoin miners continued to sell their supply during July. These entities have been negatively impacted by the decline in the price of BTC, and an increase in their operation cost which has resulted in financial stress for their operations. Related Reading: Bitcoin Miner Revenue Slows Down As BTC […]
Data shows the growth in the Bitcoin miner revenues has slowed down during the past week as the price of the crypto has been moving sideways. Bitcoin Miner Revenues Rose During The Last Seven Days, But By Only 1.6% As per the latest weekly report from Arcane Research, the BTC miner revenues have now stagnated […]
Recent news reported the constant increase of developers in some renowned digital currencies, especially Ethereum. The effect has increased the Web3 community strength and is looking to maintain this course in the long run. The news cited that the growth is a function of the participation of developers in the major ecosystems. According to the information from Telstra Ventures, the major digital currencies involved here are Bitcoin, Ethereum, and Solana. Telstra Ventures is a known investing arm of telecommunication in Australia. Related Reading: Has Bitcoin Price Found Support At A Decade-Long Trend Line? Notably, the report also compared the level of strength of all three ecosystems. From available data, Ethereum seemed to possess a more prominent and stronger community of developers than the others. Also, the information stated that there are still opportunities available in these three digital currencies. Observations are that there is still a wide range of unfunded opportunities on the ETH network. Aside from that, it was also reported that investors were only able to use half of the 10 top projects in these ecosystems. Ethereum Leads With Active Contributors The primary metric determinant of an ecosystem that shows its strength is the number of consistent contributors the ecosystem has. Another factor is the rate of usage and how well-known the ecosystem is. The popularity and use are what draws the attention of other contributors to the digital currency network. Going further, Telstra has carried out an in-depth investigation on the active developers in all three ecosystems in the last four years. Drawing from the data obtained, the community of the Eth network increased by 24.9%. This was dated from the 1st of January 2018. Considering the current state of the crypto market, it is not out of place to say that this growth is quite surprising. As of July 2022, only 9% of the monthly contributors in the Eth network dropped after the drastic plunge in the prices of digital currencies in November. The information indicates that the current crypto winter does not affect the developers of these ecosystems. More factors also contribute to the steady increase in the contributors of this digital token. A prominent example is the anticipated Eth Merge. This event is intended to move the blockchain from its current Proof-of-Work (PoW) system to that of a Proof-of-Stake (PoS). One of the intents of the Merge is to draw more interest from contributors to the network. Currently, the total number of active contributors in this ecosystem is more than 2,500. This has been the figure at the end of each month, dating from the first half of last year. BTC And SOL Devs Growth Overview Moreover, SOL obtained a compound yearly growth rate of about 173%, which occurred during the same period as ETH. At the time, its price reached a peak of $204. But somehow, its rate dipped to about 21%, with a total number of active contributors of slightly more than 250. Related Reading: What Is FLOW Blockchain And Why Is The Price Up 100% In The Last 24 Hours? Meanwhile, BTC has had a steady 8% monthly contributors growth rate dating from its last peak in November last year. Featured image from Pixabay – Chart from TradingView.com
Is the Lightning Network bitcoin’s killer app? It might be, but there’s a long road ahead. One of the stops on that road is the possible inclusion of stablecoins. Does bitcoin need them? Aren’t there inherent counterparty risks with those? The debate over those questions rages on. And in their latest post, The Bitcoin Layer makes the case for this development to be crucial. Related Reading: An Interview with Ben Caselin on AAX- Lightning Network Integration and TARO Protocol Implementation According to The Bitcoin Layer, “a global capital market operating on top of bitcoin-denominated financial rails is inching closer with each new onramp.” And the Taro protocol and all of the assets it would bring to The Lightning Network is the mother of all onramps. However, the risks it brings forth are as big as the opportunities it presents. Let’s explore what The Bitcoin Layer has to say before jumping to conclusions. They might surprise us. Making Lightning Interoperable With Everything The first part of the article is about Magma, “a Lightning liquidity marketplace that allows nodes to buy and sell liquidity by leasing other network participant’s channels for a minimum specified period of time.” According to the articles, Magma’s existence proves “a structural demand for secondary markets of liquidity, where participants can buy and sell collateral as needed—eventually blossoming into a deep and liquid capital market.” Not only that, The Bitcoin Layer also theorizes about: “Through time, Lightning Banks will emerge. As market participants lack the technical wherewithal to efficiently operate Lightning channels, most Lightning Network channel management will be subsumed by these entities who specialize in it.” And this is where the Taro protocol comes in. When it was announced, our sister site Bitcoinist posed the following questions: “So, the main idea is to create and transact stablecoins over the Lightning Network, but the technology allows users to create any asset including NFTs. And the bitcoin network underpins the whole thing. However, is this a positive development for bitcoin? How will this benefit the Lightning Network? Does a hyperbitcoinized world require tokens?” And The Bitcoin Layer provides convincing enough answers to those questions. But first… “Taro makes bitcoin and Lightning interoperable with everything. For the Lightning Network, this means more network volume, more network liquidity, and more routing fees for node operators, driving more innovation and capital into the space. Any increase in demand for transactional capacity that will come from these new assets (think stablecoins) will correspond with increased liquidity on the bitcoin network to facilitate these transactions.” BTC price chart for 08/09/2022 on Kraken | Source: BTC/USD on TradingView.com A Bitcoin-Denominated Global Capital Market “Using sats as the transmittal rails for transactions across every currency opens the door for a bitcoin-denominated global capital market”. No one would contest that. Nor that “the Taro protocol opens the floodgates for this traditional finance liquidity to be subsumed by a faster, counterparty-free settlement network”. The network is counterparty-free, but, what about the assets’ inherent counterparty risk? Conceptual Future Bitcoin-Lightning Risk Curve | Source: The Bitcoin Layer According to The Bitcoin Layer, it’s all about risk and the barrier to entry: “Higher tiers on the risk curve require less maintenance but incur more risk, whereas the lower levels on the risk curve incur less risk but have a higher barrier to entry for the average person who lacks the technical wherewithal for maintenance and security best practices.” And they make the case that the introduction of Taro is a crucial step in the process of bitcoin fulfilling its destiny of becoming the world reserve currency. “For bitcoin to become a world reserve currency, a deeply liquid capital market is an intrinsic requirement—and the Taro protocol is a promising step in making that happen. While bitcoin and LN are trillions of dollars away from becoming a legitimate alternative to other capital markets, they arguably maintain the lowest collective risk profile of any capital market in existence, as they are underwritten by an asset that when custodied incurs zero counterparty risk.” Zero counterparty risk. Does The Lightning Network Need Stablecoins, Though? The answer to that question is still up in the air. The Bitcoin Layer acknowledges the inherent counterparty risk those present. It even puts them almost at the top of the risk curve. However, they consider them crucial and even welcome every other asset in the world to The Lightning Network. According to their theory, that’s how “a bitcoin-denominated capital market” emerges. Related Reading: Lightning Speed: Open-Source Bitcoin Banks’ Fee Structures For Inbound Liquidity Of course, this is all speculation. The Taro protocol has not been approved. Bitcoin’s liquidity is far away from what it needs to be to become the global reserve currency. And, even though stablecoins on The Lightning Network might be closer than we think, the whole scenario takes place in a distant future. Featured Image by WikimediaImages from Pixabay | Charts by TradingView and The Bitcoin Layer
It is no secret that many cryptos have been experiencing a price plunge. As of June 18, the price of the world’s largest digital currency, Bitcoin, fell to about $17,622. This data was taken from Binance. Since then, there have been several conversations as to whether or not that price will be the lowest for the asset. A digital currency analyst from CryptoQuant has revealed the possible price of Bitcoin in the nearest future. CryptoQuant is a recognized digital currency resource platform. According to the analyst, the $17,622 price mark may not be the lowest Bitcoin will see. However, this assumption is not very solid given the level it is at the moment. Crypto Winter Overview Many traders and investors are still doubting if there will be a positive change soon. Several pieces of information state the possibility that Bitcoin will still hit a price mark lower than $20K. Related Reading: Shiba Inu Displays Surprising Price Movement – Can SHIB Ditch The Flatline? The scenario has made several digital currency holders sell off their assets. Also, before now, certain major crypto firms have taken some hard decisions due to the bearish turn of the market. A notable example of these crypto firms is Vauld. According to reports, the crypto lending platform had to suspend withdrawals and reduce its headcount. This was revealed on July 4. Probable BTC Price Going further, a cryptocurrency resource platform analyst, Tomáš Hančar, has explained the possibility of his prediction. According to him, the LTH SORP 20-day chart SMA is projecting a 1/3rd chance of Bitcoin hitting that bottom price mark. The explanation of the indicator (SMA) presented above is an acronym for 20-day chart Simple Moving Average. This represents the LTH SOPR (Long-Term Holders’ Spent Output Profit Ratio. According to the data, the ratio derived has been below the impartial level worth of “one” for up to three months. Drawing from the analyst prediction, this is 1/3rd the level that explains a potential bottoming process. The analyst further explained the function of the 20-day idea of the indicator he used. He cited that the idea of the 20-day indicator was for transferring appropriate standard lines. Buying Bitcoin Is Now, Says Tomáš Hančar After this analysis, Tomáš Hančar concluded that buying BTC should commence now. This is because there will be a strong bounce-off in a short while. But, there is a drawback to be aware of, he added. That is the probability that the digital token will drop below the $20K price mark. According to the crypto market watch data, 47 days have passed since the last new low of Bitcoin price. Related Reading: SOL Loses $40 After The Exploit – What’s The Next Support? Considering this fact, the analyst suggested traders furthermore; he cited that it will be necessary for traders to deploy a potential breakout option. Featured image from Pexels – Chart from TradingView.com
Many scams are happening in the crypto industry, especially BTC. If an investor is not careful, he’ll fall prey to cybercriminals posing as legit projects or platforms. Sometimes, some exchanges might run into hitches and cause massive losses to investors. This was the case with WEX, BTC-e, and other exchanges that caused people to lose […]
