- After the recent flash crash of the Bitcoin price, analysts are divided on the further outlook for the market.
- The correlation of the Bitcoin price with gold could be a key factor in determining the trend of the market.
Bitcoin suffers another flash crash, has it bottomed out?
- 1 min read
Bitcoin, after seven weeks of repeated failed attempts, finally managed to move past the $21,000 price threshold. According to tracking from Coingecko, at the time of this writing, the maiden crypto is trading at $21,392 after going up by 5% over the last 24 hours. In doing so, Bitcoin also managed to increase its total […]
Bitcoin has today broken past $21k in a sharp surge as on-chain data suggests signs of accumulation from the investors. Bitcoin UTXO Value Bands Show Multiple Groups Have Been Buying Recently As pointed out by an analyst in a CryptoQuant post, the value bands who took profit around ten days ago are now accumulating again. The relevant indicator here is the “UTXO value bands,” which tells us what percentage of the total Bitcoin supply is held by which groups. The value bands or groups here are divided based on the number of coins in each Unspent Transaction Output (UTXO), or simply, the amount currently held in each wallet. For example, the 1k-10k BTC value band includes all wallets that are currently holding between 1k and 10k BTC. When any value band shows an uptrend, it means the number of wallets in that specific range are going up. Related Reading: Dogecoin and Shiba Inu Are Trending Again… But Market Experts Reveal An Even Better Pick – Snowfall Protocol! In context of the current discussion, the relevant value bands are the 0.1-1 BTC, 1-10 BTC, and 10-100 BTC cohorts. Here is a chart that shows the trend in the UTXO value band percentages for each of these groups: Looks like all these metrics have been going up in the last couple of days | Source: CryptoQuant As you can see in the above graph, when the price of Bitcoin first started to rally up, all three of these value bands started dropping down. This means that investors with wallet amounts in these ranges started to dump as a profit-taking opportunity arose. Related Reading: Experienced Investors are Doubling Down on Bitcoin (BTC), Flasko (FLSK), and Ethereum Classic (ETC) By the time the price peaked, these metrics hit a low, and then followed up with trending sideways (along with the price). In the last couple of days, however, the percentage of the Bitcoin supply in these UTXO value bands has once again started to move up. This means that there has been some market-wide accumulation going on above the $20k level, showing that investors have conviction the price will increase further. And indeed, following this buying spree, the crypto has sharply shot up in the past day, breaking above the $21k level again. BTC Price At the time of writing, Bitcoin’s price floats around $21.1k, up 3% in the last week. Over the past month, the crypto has gained 8% in value. Below is a chart that shows the trend in the price of the coin over the last five days. The value of the crypto seems to have seen some very sharp uptrend in the last twenty-four hours | Source: BTCUSD on TradingView Featured image from Sandra Seitamaa on Unsplash.com, charts from TradingView.com, CryptoQuant.com
The debate of which is the better investment between Bitcoin and Ethereum continues to wax strong between communities. This time around, it is being put to the test using MicroStrategy’s crypto investments over the years. Microstrategy is currently seeing a loss on the 130,000 BTC that it had purchased over the years, making it the public company with the largest bitcoin holdings. But what if the company had invested in Ethereum instead? Ethereum Is A Better Bet In the course of about two years, MicroStrategy had ramped up its BTC buying which ran into billions of dollars. At 130,000 BTC on its balance sheet, the company has spent approximately $4 billion to accumulate the coins. However, even with the coins being bought over time at varying prices, the company is still recording a more than $1 billion loss at the current price of bitcoin. Related Reading: Why Cardano (ADA) Could Be Gearing Up For A Rally Given that the company remains steadfast in its support and continuous investment in bitcoin, it begs the question of what would have been the case if the company had gone with another cryptocurrency. Specifically, bitcoin’s largest competitor Ethereum. It is no secret that more often than not, Ethereum has been outperforming bitcoin. So it is not a stretch to say that MicroStrategy would be in a better position if it had invested in Ethereum instead of bitcoin, and the numbers prove this to be true. ETH price remains below $1,600 | Source: ETHUSD on TradingView.com A comparison from Blockchain Center shows that MicroStrategy would be $1.47 billion in profit if it had bought ETH. Tracking the purchases that the company has made over the years, it would have 3,541,989 ETH now, worth $5.6 billion. Even at the peak of MicroStrategy’s BTC holdings, the comparison shows that ETH would still have performed way better. In December when MicroStrategy’s holdings were worth just under $8 billion, it would have been worth $16 billion with ETH. Additionally, if the company had invested in Ethereum and then proceeded to stake its ETH, it would have earned approximately $380 million since then. MicroStrategy would’ve done better investing in ETH | Source: Blockchain Center Even now, if the company were to convert all of its BTC holdings to ETH, it would come out to a total of 1,692,762 ETH. At a 4% APR rate, it would be earning an additional $134 million in annual revenue just from staking alone. Related Reading: Ethereum Must Hold $1,500 Or Risk A Decline To $1,300 The comparison puts the various profitability levels of both digital assets over the year. Ethereum has continued to outperform bitcoin both in the long and short term. It really begs the question of if Bitcoin is really the best crypto asset to invest in as ex-CEO of MicroStrategy Michael Saylor said. Featured image from Forkast News, chart from TradingView.com Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…
You know what incubators and accelerators mean: interest. They say that bear markets are for builders, and the bitcoin ecosystem seems to be getting ready to work. One of the main catalysts is the success of the Lightning Network. The little engine that could went from being constantly mocked to being a key element in the El Salvador story. Nowadays, the Lightning Network is the bitcoin ecosystem’s absolute star and one of the reasons money is pouring in. Related Reading: Bitcoin Shocker: Lightning Network Capacity Reaches 5,000 BTC The three accelerators and incubators that this article will consider couldn’t be more different from each other, but they share the bitcoin-only ethos. And an unhealthy interest in the Lightning Network. From a Jack Dorsey-funded initiative, to a corporate ultra-deluxe opportunity, to a bunch of technically minded individuals that opened their doors in the name of bitcoin. Pick your poison, there’s probably an accelerator for you here. The TBD Open-Source Incubation Program The Jack Dorsey-funded organization that’s working in the decentralized bitcoin exchange TBDex can probably help your bitcoin project. They recently announced the TBD Open Source Incubation Program, but there’s not much practical info on it yet. “TBD Incubation projects are managed by community contributors. They advance the decentralized web and accelerate development and adoption of the Web5 platform,” the company wrote. They did specify that the program was focused on Open-Source projects and said that TBD will “soon be announcing our first Incubation project!” The announcement also promised that “when projects reach maturity, they may apply to be promoted out of Incubation into a central project,” so the TBD program might turn into an accelerator over time. BTC price chart for 11/03/2022 on Bitstamp | Source: BTC/USD on TradingView.com The Wolf Startup Accelerators Focused Exclusively On Lightning This is the corporate one. This is the deluxe one. It’s run by “Stone Ridge, owner of an alternatives asset manager that has raised more than $40B since inception and parent of bitcoin company NYDIG.” Among other things, they offer, “transportation to NYC and lodging for the duration of the 8-week program are included from anywhere in the world.” The program is exclusively focused on the Lightning Network.“Wolf accepts applications from individual founders and small teams at the pre-seed idea stage up through those ready for a Series A financing round.” Introducing Wolf: The first startup accelerator focused exclusively on lightning ⚡️. Learn more or apply at https://t.co/MC9fJATOt4 #Bitcoin #Lightning pic.twitter.com/2vQ7SoMheI — 🐺 Wolf ⚡ (@_WolfNYC) October 26, 2022 The investments are also deluxe, selected developers get a $250K guaranteed seed funding, so they can focus all of their attention on the project. Also, “at the end of each program, one team will be chosen by a panel of judges to receive an additional $500K in funding.” That, plus all the knowledge you and your team can collect in those eight weeks. The Pleb Lab Co-Working/ Accelerators In contrast, Pleb Lab is “a co-working / accelerator in Austin, Texas at the heart of the financial district. We support outstanding projects and teams in several ways.” They are bitcoin-only, with a focus on “the Lightning Network – an essential step towards decentralized finance.” Their other focus is free and open-source development, “the FOSS ethos is at the center of what we do here at Pleb Lab.” Related Reading: Lightning Speed: 5 Ways To Make Money/ Earn Sats Using The Lightning Network What does the Pleb Lab accelerator do, exactly? “Working directly with Bitcoin & Lightning startups” “Granting workspace among other brilliant Bitcoin developers at Pleb Lab” “Providing startup advisory and mentoring” “Providing business development, marketing and strategy” The Austin bitcoin scene is growing by the minute, and Pleb Lab is right there in the middle of it. Apparently, one of its best characteristics is to be in the same room with other bitcoin developers trying to solve similar problems to yours. As you might imagine, they all help each other. This one is not a competition and there are no obvious prizes. Featured Image: Pleb Lab logo from their website | Charts by TradingView
Fidelity Investment will launch a new crypto trading product for retail investors in the United States. The firm has been launching new products and offerings to offer its clients exposure to Bitcoin and crypto across multiple options. Related Reading: Fed Interest Rake Hike Fails To Destabilize Bitcoin, Is This The Bottom? Per a report from […]
Crypto miner Marathon Digital increased its Bitcoin hashrate by 84% in October, and mined a record 615 BTC during the month. Marathon Digital Brings 32k Bitcoin Mining Rigs Online, Raising Hashrate By 84% As per a press release from the public mining company, October 2022 was the most productive month in the history of the […]
Bitcoin and Crypto mass adoption is going to a new level, with international financial service providers like MoneyGram embracing it. MoneyGram is a global money transfer and financial service provider. It has both digital and retail locations around the globe, enabling consumers to pay bills and send money to friends and family at affordable rates. […]
Shiba Inu is slowly shedding its gains following the short-lived rally of the crypto market last October 25 as well as its Elon Musk/Dogecoin-inspired price increases. According to data from Coingecko, at the time of this writing, the DOGE spin-off crypto is changing hands at $0.00001217 and has been down by 2.3% over the last 24 hours. It is still enjoying a 12.7% increase for the past seven days and a 23.4% surge over the last two weeks but those numbers used to be higher during the last few days. On October 30, Shiba Inu peaked at $0.00001421 as it increased its market capitalization by almost $2 billion. Currently, the asset is sitting at an overall valuation of $7.177 billion – enough for it to rank 15th among all cryptocurrencies tracked by Coingecko. Related Reading: Rug Pull: 97% Of Crypto Projects On Uniswap Were Scams, Study Reveals Investors Losing Hope for an Immediate Shiba Inu Surge Investors, particularly the members of the CoinMarketCap crypto community, are leaning towards a bearish prediction for the meme dog-themed altcoin this November. According to the findings of Price Estimate tool that aggregated the result of a poll that included 5,133 voters, Shiba Inu is likely to end the month with a trading price of $0.00001093 which is almost 10% lower from the $0.00001209 SHIB price at the time when the voting was conducted. Meanwhile, as for the DeFi asset price towards the end of the year, the decline was slightly lower at 8.46% as it is expected to change hands at $0.00001107. On January 1 this year, SHIB price was at $0.000033. The altcoin, however, failed to sustain its momentum as it was caught in a bearish momentum that slashed more than 63% of its 2022 opening spot price. It only managed to break out of that slump towards the end of October when the crypto market rallied to reclaim the $1 trillion market cap territory and shortly after Elon Musk completed his $44 billion purchase of Twitter. Affected By Dogecoin Movement Over the last few months, Shiba Inu has shown its tendency to follow the directional trend of Dogecoin, which the same crypto community has also given bearish predictions. The dog-themed crypto has recently entered a price correction phase, losing 4.6% of its value over the last 24 hours. Its weekly gain – which stood at over 100% for the past few days – dropped to 80.8% following this recent price dump. As the two digital assets share the same trend almost all the time, Shiba Inu investors are also keeping close watch to Dogecoin to predict when it will move up or go down. Related Reading: Tron Performance Last Month Was Impressive, But Can TRX Do Better This November? SHIB total market cap at $6.6 billion on the daily chart | Featured image from Unsplash, Chart: TradingView.com Disclaimer: The analysis represents the author’s personal understanding of the crypto market and should not be construed as investment advice.
As the first and primary cryptocurrency to exist, Bitcoin has witnessed different reactions and predictions in the industry. Its advancement over the past years has been above the growth of conventional assets. However, the recent bearish trend in the crypto market this year created doubts about the future of the token. Recently, the Chief Economic Adviser at Allianz, Mohamed El-Erian, disclosed his opinion on the potential future of BTC. According to him, the leading crypto asset will become a global reserve currency, but its price will not reach the $100,000 level. Related Reading: Dogecoin (DOGE) Cracks Over 150% In 7 Days; Is The Top In Yet? Further, El-Erian thinks the crypto sector will scale through the prevailing crypto winter. He noted that the crypto industry would also advance to become an important sector in payment systems. Will Bitcoin Reach Expected Price Range? El-Erian was responding in an interview with CNBC, where he described Bitcoin. He pointed out that as an innovative technological project, BTC hit its peak when the price reached $70K in Nov 2021. El-Erian noted the contributory factors for the surge of BTC, such as investors’ massive enthusiasm, over-production, and over-consumption. On issues from crypto regulators, El-Erian believes that Bitcoin and the major altcoins will overcome them. He stated that performance might not dwindle with the right regulations in place. But the possibility of BTC hitting $100K or gaining huge institutional adoption is still uncertain. Also, the chief economist noted that the crypto winter and unfavorable macroeconomic conditions impacted BTC’s advancement. But thankfully, there’s a gradual reinforcement in the crypto ecosystem now. By that, El-Erian urges investors to appreciate the relative stability of Bitcoin. Moreover, recent movements in the market indicate that the crypto market has already had its worst bearish trend, which is almost over. El-Erian has been a BTC holder before now. The economist brought the asset at $3,000 per token during the crypto winter of 2018. However, he sold off his holding in 2020 when BTC rose to $19,000 per coin. BTC Proponents’ Opinions The price prediction of Bitcoin hitting $100,000 per token is quite a huge milestone. However, some proponents strongly believed in the move. So, they forecast when BTC may reach the level and not if it will. Michael Saylor, a BTC maximalist, believes that Bitcoin will perform brightly in the future and move toward $1 million. According to him, the token is different from others since no other network can compare to its security level. In October, the Senior Commodity Strategist at Bloomberg Intelligence, Mike MaGlone, predicted BTC reaching $100K in 5 to 10 years. Some predictions have also emerged from individuals outside the crypto industry. Zak Pendl, the co-founder of Global FX at Goldman Sachs, gave a similar forecast for the primary crypto asset. Related Reading: On-Chain Data Suggests Bitcoin Bottom Comparable To Previous Cycles However, at the time of writing, BTC price is trading at $20,297, indicating a drop of 0.72% over the past 24 hours. featured Image from Pixabay | Charts by TradingView
Yesterday’s FOMC meeting of the U.S. Federal Reserve (FED) brought less volatility to the Bitcoin market than many experts had expected. The Bitcoin price moved in a narrow range during and after the meeting. Ultimately, the Fed raised interest rates by 75 basis points, as expected. The FOMC statement said the Fed would “take into […]
Deribit, a leading cryptocurrency futures and exchange, becomes the first victim of crypto hackers for November 2022 as its hot wallet was drained of $28 million. The cyber attack affected the exchange’s Bitcoin, Ethereum and USDC hot wallets. The company, however, has already given its assurance to immediately compensate the losses with the use of […]
Rug pull is a new type of scam which is now a part of a long history of investment schemes that make investors lose a lot, if not all, of their money. Derived from the popular expression “pulling the rug out” happens when investors are enticed or attracted by developers to put resources (usually a […]
Is LND broken? Or was the ridiculously large transaction that unsynched it a direct attack on the LND implementation? Does all of this affect the larger Lightning Network? And what about the bitcoin network? This story starts with all kinds of questions and can’t promise to answer them all. The game is afoot. Something’s going […]
Latest data from Glassnode reveals that around 14% of the Bitcoin supply has been redistributed since the July of this year. 14% Of The Total Bitcoin Supply Has Changed Hands Since July 2022 As per the latest weekly report from Glassnode, around 20.1% of the supply now has a cost-basis in the historical bottom formation […]