Bitcoin Pizza Day Celebrates its 10th Anniversary; 10,000 BTC for Two Pizzas is Now Worth $90M

May 22 is known as the Bitcoin Pizza Day after computer programmer Laszlo Hanyecz paid 10,000 bitcoins for two delivered Papa John’s pizzas in 2010.

Being one of the earliest well-known purchases in the history of Bitcoin makes it an iconic day. Those 10,000 BTC that has been offered for two large pizzas worth $40 is now worth about $90 million.

Hanyecz organized his pizza offer on bitcointalk forum,

“You can make the pizza yourself and bring it to my house or order it for me from a delivery place, but what I’m aiming for is getting food delivered in exchange for bitcoins where I don’t have to order or prepare it myself, kind of like ordering a ‘breakfast platter’ at a hotel or something, they just bring you something to eat and you’re happy!”

In his first television interview with CBS News last year, Hanyecz shared,

“I honestly thought it would be really cool if I could say, ‘Hey, I just traded this, you know, open source internet money for a real world good.”

But Hanyecz didn’t stop after the first real-word transaction that involved cryptocurrency, he continued spending Bitcoin.

He minted and spent about 100,000 BTC in all, which would have been now worth more than $900 million, much of it on pizza, Hanyecz shared on “60 Minutes.”

2nd post by Hanyecz for another “open offer.” He also got the pizza on May 22nd.

Despite the price of bitcoin skyrocketing, Hanyecz isn’t really phased out about his deal as he told the NY Times in 2014,

“It wasn’t like Bitcoins had any value back then, so the idea of trading them for a pizza was incredibly cool. No one knew it was going to get so big.”

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Author: AnTy

Crypto Market Is Dicey, The Bullish Golden Cross Is Very Likely a Non-Factor for Bitcoin

In May, Bitcoin flirted with $10,000 a number of times but it was never able to achieve it.

Now today, the world’s leading digital currency is down 3.25% and hovering around $9,085 while managing $2.4 billion in “real” volume. Even dipping below $9,000 for a few minutes. Tether meanwhile is seeing $2.64 billion worth of USDT exchanging hands.

btc price
Source: Coin360

With the market turning red, analyst Mati Greenspan has reduced his exposure in the crypto for now.

“Things getting a bit dicey in crypto markets and stocks. Lots of uncertainty,” he said.

In the US stock market, another 2.4 million Americans filed for unemployment last week. Oil prices meanwhile are at their highest since March on recovering demand and lower US inventories.

The US Senate also passed a bill to delist some Chinese companies including Alibaba and Baidu from American stock exchanges.

Insignificant…

Today’s red was first seen yesterday when a meager 40 BTC was moved from a wallet, not even to an exchange. What rattled the crypto community about this transfer was the speculation that this long-dormant wallet, since it was created in February 2009, could belong to pseudonymous bitcoin creator Satoshi Nakamoto.

Although there is no knowing if these some of the originally mined bitcoin were actually minted by Satoshi, as we reported it was likely they did not belong to him.

According to on-chain analyst Willy Woo, the movement of these coins is both bearish and bullish.

It is locally bearish because investors tend to sell near local macro tops and it wasn’t a “smart” choice.

However, old coins moving increases the realized cap of the bitcoin and the CVDD price floor model for valuation. One of the first on-chain metrics invented, Cumulative Value Days Destroyed (CVDD) called destruction is the coins moved * total times those coins were dormant.

“When old investors sell out of their sub $1 coins, it allows for the price floor to increase. New buyers capitulate at much higher prices,” as such bullish in long-term, said Woo.

Not enough…

The market sentiments are currently neutral but just like the post-2016 halving which saw Bitfinex crypto exchange hack and Etherem’s DAO hack, in 2020 we have experienced BlockFi data hack, BitMEX exchange’s system going down after getting hit with a major lawsuit (RICO), Satoshi moving his BTC FUD, and MSM dark web FUD following the halving last week.

The same as the last time, Bitcoin has taken a small step back.

Trader Credible Crypto expects ‘reclaimed support’ at 8,900-9,000 to be tested soon. But here, “bulls need to show up there if it happens,” which he expects they will.

As for the bullish golden cross, “The 50Day moving average may have just crossed above both the 100DMA and 200DMA. But at the same time, the 100DMA just cross below the 200 DMA.”

As such, this crossing of moving averages is “very likely a non-factor” for bitcoin, said crypto investor and trader Josh Rager.

Also, the last time the 50 DMA crossed above the 200 DMA, the market had an over 60% drop in price over the next month. However, this drop in February was caused by the black swan event – coronavirus.

This means, “a single indicator won’t prop up the market price.”

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Author: AnTy

Professional Money Managers Loading Up on Bitcoin Post Halving

After making yet another attempt towards $10,000, Bitcoin failed to take over this important level and is currently trading under $9,500.

Interestingly, the world’s leading cryptocurrency is challenging the downtrend experienced after the 2017 bull run.

But this time a lot of factors are in bitcoin’s favor. For starters, bitcoin looks to be decoupled from the stock market.

Also, this week, the 7-day average “real” trading volume pushed to the highest levels of 2020. This week followed last week’s volatile but solid volume.

The last time bitcoin price was at this level was in July 2019, when the BTC price peaked at $13,900.

CME Captures Market Share

This week, the regulated market CME really shone as well. Over the last month, CME bitcoin futures saw significant growth in terms of open interest. Prior to the March crash, CME accounted for 4%-8% of all the open interest in the bitcoin futures market.

But this crash made a visible trend shift that has CME gaining the market share as it now accounts for 15% of OI. Arcane Research noted,

“This growth may indicate that professional money managers have loaded up on bitcoin following the market crash, seeking to allocate cash into a provably scarce asset class.”

Excluding Paul Tudor Jones’ $75 million worth of OI on CME bitcoin futures, still $400 million is held by other investors.

However, open interest in OKEx bitcoin futures has dropped which means traders are taking profits on their positions. As we reported, the bitcoin options market has surged to an all-time high this week.

Deribit remains the biggest player in the options market with its OI steadily fluctuating between 80% to 90% of the total market. CME that used to play a minor role now accounts for about 1-2% of total OI after recording over an 11% increase on Thursday.

Fast and strong growth

When it comes to the Bitcoin network, the 40% crash in bitcoin hash rate in the days following the halving that reduced mining profitability to half had some miners moving back to bitcoin forks.

Meanwhile, Network Value to Transaction ratio indicated bitcoin price might be about to enter a period of “fast and strong growth.”

Source: ArcaneResearch

NVT ratio measures the BTC price relative to the value transferred over the network. Over the past three years, the ratio exceeding 10 could indicate a fast and strong pace growth as seen in 2017, 2019, and 2020 and above 12, it could be a local top.

Also, network traffic must increase for the price to continue rising and in USD terms, network traffic is rising sharply.

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Author: AnTy

Low Fees, Easy Access, and Lots of Free Time Pushing Young Investors into Markets

Since falling off $10,000, Bitcoin’s price is hovering at around $9,000.

For now, the bitcoin halving didn’t have much impact on the market. The miner liquidation or much-feared miner capitulation as a result of block reward halving didn’t materialize, not yet.

Moreover, “New miners w/ better equipment w/ better efficiency would come online in the coming months & the surviving miners would benefit from cheaper electricity during China flood season,” said Lenny Lai, Director of Financial Markets at OKEx.

The network hash rate that jumped to a new all-time high at 145.9 Eh/s on halving day dropped 31.8% to 99.4 Eh/s yesterday. Currently, at 102.4 Eh/s, the hash rate is at a level it was on the weekend.

About this development, while congratulating “bitcoin for surviving yet another major event,” Cardano creator and CEO, Charles Hoskinson said,

“We should see the economic fallout of that in coming months as miners reallocate.”

“Markets react this weekend was pretty turbulent as a one and a half billion dollars worth of Bitcoin liquidated which is what pushed the price down from 10,000 but these things always happen people trade the rumor and sell the news,” he said.

Bitcoin “Supply is Limited, But Demand is Increasing Exponentially”

In an interview with Bloomberg from Singapore, Chnagpeng “CZ” Zhao, CEO of leading spot exchange Binance said, “The halving should be very positive for the crypto industry.”

On Monday, the halving happened and the mining reward is now officially 6.25 BTC. According to Zhao, miners will be more willing to hold onto their BTC for longer instead of selling at prices lower than their break-even costs.

As we reported, the bitcoin mining pool’s BTC balance spiked more than 100% in the past six months. he said,

“There’s a psychological effect, which also pushes the price up, but fundamentally I believe supply is limited, but demand is increasing exponentially.”

This demand is further fueled by the governments printing money as “with the exceptional quantitative easing from central banks it’s leading to a growing number of investors to consider to coin as a hedge against through existing portfolios and a hedge against inflation,” shared Dave Chapman, executive director of Hong Kong-based crypto firm BC Group, which operates OSL, one of Asia’s biggest digital-asset platforms for professional investors.

Millennials and Gen Z on the Move

Talking about the effect of coronavirus on Binance, while the outbreak affected the global economy, “we’ve seen a large increase in activity both in trading volume and, as a result, in income” in the last few months or so, Zhao said.

They have rather a lot of work and in need of more staff, “Right now is a good time to hire,” he said.

During the first quarter of 2020, a lot of crypto companies saw a huge increase in new sign-ups even after the March sell-off.

But the crypto market is not the only one seeing record volume and users as a spike in new accounts were seen at major online brokers as well, — Charles Schwab, TD Ameritrade, Etrade, and Robinhood — growing as much 170% in 1Q20.

Retail investors have been taking their first shot at the stock market in March, while the equities fell over 30%.

About this retail surge, Axios said it all has been “thanks to zero fees, easy access afforded by the internet, and an unexpected glut of free time on their hands, millennials, and Gen Z are opening online brokerage accounts at a record pace.”

Younger generations are the new investors who do not have much background in the equity space.

This time is seen as “a unique time to start portfolios” and they are “often crowding into the tech arena, purchasing the stocks whose services or products they know and use,” Citi chief U.S. equity strategist Tobias Levkovich said.

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Author: AnTy

Gold in the Early Days of a Bull Market; Is Bitcoin Currently in a Downtrend in One Too?

Last week, the price of bitcoin climbed to $10,000 but yet again we couldn’t sustain this level and over the weekend dropped to as low as $8,200.

This drop came on the back of the “highest hourly volume candle” since Black Thursday. Interestingly, it also had Bitcoin trending on Chinese Twitter.

“Almost 9 months since higher lows on Cycles, so technically still downtrend, until >10.5k,” said analyst Bob Loukas.

This crash yet again caused Coinbase outage resulting in $275 million sells liquidated, the third-largest liquidation in the past six months. BitMEX XBTUSD open interest also sold off $100mln.

OI got wiped out across the board, with Binance “absolutely nuked.”

Now, BTC/USD is back to trading above $8900.

Getting Worse Before it Gets Better

Bitcoin might be up 20% YTD but its correlation with stocks remains near its all-time high still.

The US stock market is moving higher despite a record number of Americans losing their jobs. The unemployment surged to 14.7% in April, shattering the post-WWII’s record of 10.8% in Nov. 1982.

But on Sunday, Treasury Secretary Steven Mnuchin said this figure could get “worse before they get better.” He also indicated the White House was talking about more fiscal measures, payroll tax cut, to ease the economic pain from the coronavirus pandemic.

But the fact that stocks are still moving higher, could mean they have rebounded and can continue to move higher.

“We’ve seen the lows in March and we will never see those lows again,” said Wharton professor Jeremy Siegel who called Dow 20,000 in 2015. “I think 2021 could be a boom year.”

Last week, JPMorgan also listed six reasons why they are bullish on stocks including rapid healing of credit markets and relaxation of lockdowns. The “signs of bottoming out in economic expectations” and the “presence of an equity short base and equity underweights among investors,” are other reasons.

Besides the rally in the risky market, massive liquidity injections and zero cash rates and low bond yields are why stocks and risk-on securities are in a bullish environment.

But not all!

Although economist and trader Alex Kruger says JPMorgan’s 3400 target for the S&P 500 in H1’2021 is “reasonable,” it ignores potential bearish factors like demand not coming back in full on contagion fears, Trump going all out at China, Presidential elections, a wave of defaults, no buybacks, dividend cuts, worldwide social unrest, an EM collapse, and broken supply chains.

Most Likely to Appreciate in 2020

Amidst the current unstable economic backdrop, Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence says both bitcoin and gold are the assets that they believe will jump this year.

Gold bullion is in the early days of a bull market just like the one sparked by the financial crisis, with “greater potential for acceleration in the metal’s price.” Quantitative easing with rising equity volatility solidifies the precious metal’s foundation, he said.

Bitcoin, the result of the 2008 financial crisis, also has a long road ahead with a new rally.

“As central banks flood the financial system with trillions of dollars of stimulus, investors today have a strong reason to invest in alternative assets like Bitcoin,” states Binance in its latest report.

In the short term, however, it depends if Bitcoin holds $8,550 level. The breakdown from $8,550 could have us revisit the high of $7000s and if it holds, we can get a relief rally to the low of $9,000s, said analyst Rekt Capital.

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Author: AnTy

BTC Network Indicates ‘Bearish Momentum’ But the Risk of Price Dump ‘Substantially Reduced’

Last week, Bitcoin’s price branched the key level $10,000 twice that had the market sentiments turning to “greed” from “extreme fear,” which has been in the market since February.

But now that we are below $9,000, the market has gone back into “fear,” as per Crypto Fear and Greed Index.

With block reward halving just a few hours away, the market is not exactly screaming bullish.

According to the actionable signals of IntoTheBlock, the market is in “bearish momentum.” These signals include the network not growing as fast as it has been the past few weeks.

Also, the accumulation by large holders has dropped just like the large transactions, those with over $100,000 value. Moreover, the price drop has less percentage of addresses in the money.

Although bearish momentum, the rise of a halving price dump has been “substantially reduced” by the current COVID-19 crisis, rather it has “potentially set up a Bitcoin bull market,” said Binance in its latest report.

Post halving, “a wave of profit halving” is expected as short-term traders exit the market. But these pullbacks could be temporary with “a great likelihood of Bitcoin making new highs in the coming months.”

Halving: What’s Different This Time Around?

The current momentum might not be bullish but compared to the past halving, a lot has changed and only for the better. Bitcoin fundamentals are stronger than ever and long-term bullish.

The number of bitcoin addresses has been steadily increasing and is currently at their all-time high, having recently crossed the 30 million addresses milestone as well. From the last halving four years ago, the addresses have increased by 234%.

At a similar pace, the daily number of addresses added to the bitcoin network is growing, up 68% from July 2016 halving.

When it comes to the number of retail addresses, those holding at least 0.01 BTC and 0.1 BTC, they hit fresh ATHs in 2020 about every other day. These addresses jumped by 204% and 142%.

Now those with at least 1 BTC made a new ATH, up about 64% from the last halving.

Though not at their peak, whales, investors holding over 1,000 BTC, are close to hitting a new ATH. However, the USD value these whales hold is more than 10x higher.

As per Glassnode data, the daily number of active addresses and entities has increased by over 55% since the last halving, steadily rising for the past three years and approaching the peak of the 2017 bull market.

Besides network activity, the hash rate made a new high this month and is up over 6800% since the halving four years ago.

During all this time, the bitcoin network system has been working like a clockwork, without stopping.

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Author: AnTy

5 Top Altcoin Performers of This Week: Where’s the Crypto Market Going Next?

As Bitcoin makes a retreat from $10,000, down 2.20% and trading around $9,700 while managing the daily trading volume of $1.7 billion, altcoins have finally started rising.

According to trader Credible Crypto, a lot of altcoins are setting up diamond bottoms that “can’t be ignored.” He said,

“For a while now, the bottom is in on most alts in USD. You should be picking and choosing your favorites for long term holds at this time imo….”

The Winners

While the top cryptos, Ether and XRP aren’t faring well, being down 0.51% and gaining 0.34% respectively, mid-cap and small-cap cryptos are enjoying gains today.

Tezos is back into greens, up 4.31% at $2.92 with over 79% of its circulating supply currently locked for baking. However, the volume indicator is showing a lack of momentum.

The winner of this week, however, is 0x (ZRX).

The ERC20 token of the crypto trading platform which operates on the Ethereum network jumped 104% this week. This uptick price also has it moving up from 48th rank yesterday to 35th position today.

The jump in price came the day its daily active addresses registered an increase of 86%. This uptrend in unique addresses transacting has been since mid-April. Per Santiment,

“DAA Divergence vs. Price Model indicates a 4th straight day of improving bullish divergence. The higher the green bar, the more divergent DAA is from market value.”

NEO is yet another star of the week with its price up about 11% at $11.24. In the past week, it has been up over 21% while recording 44% gains in the past month. NEO’s rally came amidst the growing volume as well.

This 20th largest cryptocurrency is seeing a lot of development activity, which rises significantly as 2020 progresses. Santiment wrote,

“Altcoins with staying power often take opportunities in uncertain markets to innovate & improve, and seeing it up 15.1% & decoupling over the past 24 hrs. is no surprise.”

Basic Attention Token this week saw a spike of about 29% and is currently trading at $0.225. This price move was foreshadowed by the project’s development activity since Black Thursday.

This week, Brave co-founder Brendan Eich revealed in an interview with Binance CEO Changpeng Zhao that less than 20% of Brave users participate in the BAT reward system but they are planning to make it more attractive to use. He said,

“We have a pool, or user growth that allows us to give users tokens, even before they’ve seen an ad.”

On May 1st, crypto exchange Gemini also announced support for the token.

In the short-term, there has also been an increase in daily addictive addresses.

With more than 9% gains, Chainlink is yet again one of the top performers.

After partnership with Cypherium in April, this month Acala Network is using the network for reliable price feeds for DeFi applications running on Polkadot.

In addition to these top performers, DigiByte is also currently up 10%. This altcoin has been enjoying a rally this entire week which its co-founder said isn’t surprising because it’s undervalued.

Augur (REP) is another one with a major isolated price spike whose daily active addresses also recorded a jump.

A lot of altcoins have started popping up as the Bitcoin price takes a step back just before the halving next week.

As for the altcoin pump, it will come once bitcoin has calmed down from the halving hype. This could, however, take time as trader Crypto Michel says “probably summer will be fun for altcoins. Last quarter retrace. Next party Q1 2021.”

Just as happened during the last bull run, once bitcoin peaked in December 2017, altcoins rallied to their all-time highs in January 2018.

As such, “once halving hype is over, the money should start to flood towards the altcoins,” but of course, “they can start catching up, where the king already left the station.”

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Author: AnTy

5 Bullish Bitcoin Charts, Three Patterns Not Seen Since the Parabolic Run of 2017

Earlier this week, bitcoin broke the important psychological level, $10,000 and hovered around this level for two days only to make a retreat today.

Currently, we are trading around $9,500 while managing the daily trading volume of just $2 billion, yet again slowing down on the weekend.

The good thing is bitcoin is leaving the exchanges, moving in the opposite direction to the bitcoin price, which means instead of selling, investors have taken to HODL their BTC.

Also, the Guppy indicator which identifies changing trends and breakouts in the price of an asset has flipped green on the bitcoin daily. Historically, these green flips have led to higher prices every single time. Stackin’ Bits said, Though it is likely we will be going higher,

“One thing that probably needs to be taken into consideration on this move is the extreme volatility. Price leads MA’s, and in such extreme volatility it wouldn’t surprise me to see some aggressive deviation over the next couple of moves as the volatility cools down.”

The realcap-weighted HOLD wave is yet another chart dominating similar setup patterns that were last seen in the past bull markets.

A bitcoin enthusiast notes that for a third time it occurred this spring. Currently, we are in the blow-off period with halving next week which if leads to another accumulation it could indicate a new bull market.

Yet another bullish chart that reflects the previous bull market is the number of active bitcoin addresses. These addresses have reached 1 million, last time hit in November 2017. Glassnode noted,

“The number of active addresses (and entities) has increased to levels not seen since the 2017 bull market – as has the number of new addresses – suggesting an increase not just in activity, but also in adoption.”

The market is ripe with bullish charts and the market sentiment has also finally turned into “greed” after over two months of “extreme fear.” The rising price of bitcoin is also backed by the solid volume with open interest on CME hitting a new all-time high.

The interest in “bitcoin halving” has also skyrocketed with searches on Google now 4x the 2016 halving.

Meanwhile, long term bitcoin investors continue to accumulate bitcoin, despite the prices rising up to the early highs from February.

Amidst this trader Galaxy has shared a chart, yet another dose of hopium for people, stating the flagship cryptocurrency could very well make its way to a new all-time high of $20,000 from here in another pattern not seen since the parabolic run of 2017.

In response to this chart, trader Crypto King wrote,

“I’m waiting for that green dildo to the moon. Liquidation dip occurred, volume dropped. Consolidating, spring coiling….”

Not to mention, high net worth individuals (HNW) and family officers are also getting in bitcoin.

When bitcoin rallies to the high of $20k, retail will start paying attention once again just like in 2013, when “the early rally was driven by Silicon Valley angels (smart money), by the end of the year retail piled in,” said Tuur Demeester.

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Author: AnTy

Bitcoin Miners Hoarding BTC Just 3 Days from Halving

The price of bitcoin is having strong momentum, as it climbed over $10,000, an important psychological level. Jehan Chu of Kenetic Capital said,

“Bitcoin trades sentiment-driven at its peaks and valleys, and the post-halving hangover is part of the normal price ebbs and flows on top of Bitcoin’s fundamental value.”

But the price is not the only factor enjoying a growth, the bitcoin network fundamentals are just as bullish. Given that halving is just around the corner, it isn’t surprising that the network is booming.

Last week we reported that the hash rate of the network has climbed out yet a new all-time high. But if we take a look at both the price and hash rate, they have been moving in complete harmony. TradeBlock noted,

“During periods of declining bitcoin prices and lower mining profitability, mining resource allocation decreased accordingly resulting in lower hash rates.”

Source: TradeBlock

Higher prices coming post-halving?

Now, about 3 days away, halving or quantitative hardening has gotten bitcoin special attention in the current environment of quantitative easing.

The event that comes every four years will also cut down bitcoin inflation from 3.64% to 1.80%, down from the global inflation rate of 3.56%.

In preparation for this event, bitcoin miners have started hoarding BTC. Post halving, the miners block reward will be reduced in half, from 12.5 BTC to 6.25 coins.

Over the past week, miners have hoarded 1,067 BTC, having sold or distributed less than they have mined. Normally bearish, this close to halving, this hoarding might indicate miners’ bullish long term view of bitcoin. Charlie Morris, co-founder & Chairman of ByteTree wrote,

“We normally see this as bearish because it implies a soft bid in the market. With a recent price surge, clearly this hasn’t been the case, and so we can only assume that the miners also think higher prices are coming post-halving.”

Source: ByteTree

Only higher value transactions will survive

Over the past week, many things have been “somewhat crazy,” with the difficulty of the network seeing a minor uptick despite the generation cooling down. This might have been flushing out the weaker miners.

Meanwhile, network fees surged subsequently above $4 million, up from below $1 million per week a couple of weeks back. This jump in bitcoin network fees came up with a rise in the number of transactions.

“The positive is that high fees reflect network interest and that is good for the Bitcoin price. The negative is that small transactions will dry up.”

Given that post having would mean miners will get 6,300 BTC plus fees per week instead of the current 12,600 BTC per week, fees need to remain high. But this also means, “only higher value transactions will survive.”

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Author: AnTy

2020 Bitcoin Halving Will Produce Similar Results to 2012, 2016 According to S2F Model

  • The third block reward halving is less than 10,000 blocks away
  • Miners are already prepared for the upcoming halving in May 2020
  • Bitcoin will stay around $10,000 only to slowly rise to the $100k model value but it won’t be an easy ride

Bitcoin price is back on the move, jumping above $9,110, recording 4.43% gains in the past 24 hours. The price is seeing much volatility as we near the reward halving. Now, only 67 days are left for the big day that will cut the mining reward from 12.5 BTC to 6.25 coins. This drastic cut in reward and inflation rate of bitcoin is now less than 10,000 blocks away.

What does history say?

If we take a look at history, the first halving occurred in Nov. 2012 when the mining reward was cut down for the first time to 25 bitcoin from 50 BTC. At that time, BTC price was trading at about $11 only to see a hike of over 10,200% in the next year.

Then the second halving happened in July 2016. But this time, the price didn’t react the right way rather kept on ranging. It wasn’t until the last few days of the year, that the price of bitcoin started climbing. Then in the next year, BTC made a new high at about $20,000 seeing a spike of over 2,800%.

And though bitcoin bulls and maximalists are expecting another dramatic rise, it’s hard to say how we will fare this time. At least, the immediate price action is expected to be bearish but next year could bring in some hard profits for the crypto community.

Miners Getting Ready

Already the market is seeing much activity, with the hash rate of the bitcoin network reaching an all-time high of about 136 quintillion hashes per second. In the past year, this computational power dedicated to the bitcoin network nearly tripled. The rising hash rate means the network is more secure than ever and highly unlikely to suffer a 51-percent attack.

With the halving coming up and block rewards ready to be reduced in half, miners are ramping up investments to capture as many BTC they can. Major players are also entering the bitcoin mining sector as we saw Peter Thiel-backed Layer 1 opening a massive mining facility in Texas. This also suggests that miners are bullish on bitcoin long term despite the 16% drop in the price last week.

With the rising hash rate and price taking a downward turn, the halving might also see the least efficient and permanent miners making an exit as they don’t mine at a loss for an extended period of time.

But it might not be an easy ride

Recently, Galaxy Digital CEO Mike Novogratz said bitcoin could test its all-time high by halving.

Prominent analyst PlanB who projects bitcoin topping above $100,000 this bull market also pointed out the issue that says “2020 Bitcoin halving will not be an easy ride.” Last week, the analyst who uses stock-to-flow model to determine bitcoin’s value ticked the issues including US/Mnuchin: draconian anti-btc laws, Craig Wright: legal and patent FUD, Hacks: like 2016 halving (DAO, Bitfinex), MtGox and PlusToken selling narrative, Miner death spiral and futures FUD, and Forks as the potential factors that could negatively affect bitcoin.

However, he maintains that bitcoin will stay around $10,000 only to slowly rise to the $100k model value.

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Author: AnTy