The decline of the crypto market has been expected, especially for top digital assets such as Bitcoin, Ethereum, and Cardano. The fall has hit the market hard, especially with the collapse of one of the leading DeFi protocols, the Terra network. However, JP Morgan CEO, Jamie Dimon, believes that it is only beginning. Despite the market is more than
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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
What’s the story around Tornado Cash? The U.S. Department of the Treasury made its case in a press release, but the question still lingers. Because, as many people have pointed out, Tornado Cash is not an institution. It’s a smart contract in the Ethereum blockchain and, according to US law, code is supposed to be […]
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 […]
Total value locked (TVL) on Optimism, a layer-2 scaling solution for the Ethereum blockchain, has increased 284% in the last month, according to data from DefiLlama. Users lending and borrowing assets on Aave through Optimism’s layer-2 chain make up the vast majority of TVL. Ethereum Optimism TVL Surges In anticipation of The Merge update, which will see the blockchain switch from a proof-of-work network to one based on proof-of-stake, investors have been bidding up digital assets tied to the Ethereum ecosystem. The merge will be tested by Ethereum developers on the Goerli testnet on Thursday, August 11. If everything goes according to plan, the mainnet merging will be approved on September 19. The mainnet merge would probably be delayed if there are issues with the Goerli merge. The Merge’s anticipated launch date has been set for September 19, according to a recent Ethereum developer call. With Rollups, or off-chain computations, Optimism, an Ethereum layer-2 blockchain, aims to extend the ecosystem and expedite transactions. On Optimism, transactions are entered, and on Ethereum, they are completed. ETH/USD trades at $1,853. Source: TradingView The project is home to 35 protocols, including automated market maker Velodrome, decentralized exchange Uniswap, and derivatives exchange Synthetix. The Ethereum blockchain’s current capacity of 30 transactions per second is inadequate to manage the enormous amount of user trade orders on exchanges (including cancellations). Nevertheless, according to some analysts, the network might scale to 100,000 transactions per second with The Merge upgrade, with layer-2 solutions improving this capacity even further. Related Reading: Uniswap Price Falls Below $9 After It Met With A Sell-Off, What’s Next? Optimism blocks are constructed and executed on layer-2 while user transactions are batched up and submitted to the Ethereum layer-1. On layer-2, transactions are immediately accepted or rejected with no mempool, enabling a fast user experience. Correspondingly to the TVL development, the project’s namesake tokens have also rallied by 300% during the same period. Dai on Optimism 👀 From 30 million to 140 million in 5 days. pic.twitter.com/AQlNWvX6c9 — Maker (@MakerDAO) August 9, 2022 Goerli Testnet: A Brief The Ethereum network will be one step closer to its biggest update yet in less than 24 hours. The second-largest cryptocurrency by market capitalization has been preparing to switch from Proof-of-Work (PoW) to the significantly less energy-intensive and, in some people’s opinions, more decentralized Proof-of-Stake for years (PoS). Senior Ethereum developers stated last month that the so-called “Merge” to “Ethereum 2.0” will occur on September 19. However, there is still a challenge for developers to overcome before the “Merge” can be implemented on Ethereum’s mainnet. Developers want to implement the merging on one last testnet after completing the switch from PoW to PoS on two of Ethereum’s main testnets (Ropsten and Sepolia) in June and July. From its mid-July lows under $1,000, Ethereum has increased by more than 80%, and at last check, it was trading in the mid-1,800s. While most of this has coincided with a larger cryptocurrency market rebound amid an uptick in macro mood (Bitcoin is up over 25% from its mid-July lows), analysts have indicated that anticipation ahead of the merger has been a key tailwind driving ETH higher. Related Reading: Why Are Crypto Investors Rotating From Bitcoin To Altcoins? Featured image from iStock Photo, chart from TradingView.com
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 […]
The ETHPoW fork proposal comes from the miners. It’s only logical that they want to keep Ethereum as a Proof-Of-Work chain, since all of their profit will evaporate overnight with the change to Proof-Of-Stake. The merge is supposedly only weeks away, and the Ethereum community has their hearts set on the proposed changes. Nevertheless, the […]
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 […]
The U.S. government has been targeting crypto entities that they claim can enable bad actors to transact outside of the financial system, crypto exchange Tornado Cash was the latest addition. The Ethereum-based protocol was included in the Office of Foreign Assets Control (OFAC) Specially Designated Nationals and Blocked Persons List (SDN). Related Reading: Crypto Markets […]
