Bitcoin Miner Fees Jumps a Whopping 196% YTD while Indicators Turning Bullish

  • Bitcoin price and volume is down while volatility jumps above 9%
  • Long-term velocity turned bullish while MVRV Z-Score indicates market bottom

It’s just another day in the crypto market with Bitcoin down 6.36% trading at $6,225. The market doesn’t seem to decide on where it wants to head right now, as the market records double-digit percent changes in both the directions.

The crypto market started climbing this week after the stock markets found a temporary bottom. Given that cryptocurrencies are acting like risky assets in line with stock markets, it’s no surprise that the momentum has been positive throughout this week.

But the 7-day average real trading volume has dropped down after the volatile period for the past two weeks but still higher than the average recorded earlier in 2020. And increasing prices on decreasing volume is usually a bearish signal.

The 30-day volatility for the BTC price that has been extreme these days meanwhile has jumped above 9%. As Arcane Research notes, “with the global turmoil and volatile stock markets, it doesn’t look like the bitcoin price movements will settle down either.”

The rise in BTC’s price has the world’s top cryptocurrency leading the way with an increase in its dominance. While Bitcoin is closing up on Small Caps ahead of both Large and Mid Cap crypto indexes, Mid Caps continue to be the worst performer, down 34% this month.

However, despite the price boost, bitcoin is up 70% from its $3,850 bottom, the market sentiments are still reflecting “extreme fear” in the market with the Fear & Greed Index having a reading of 14. The last time the market stayed in “Extreme Fear” this long was in December 2018.

The Bitcoin Network

As we reported, mining difficulty for bitcoin declined by almost 16%, which has been the second biggest drop in its history. The largest drop was on October 31, 2011, of 18.03%. The network difficulty adjusts every 2016 block or 2 weeks in order to ensure that the network continues to mine new blocks every 10 minutes.

This decline came on the back of a drop in the hash rate following the crash in price two weeks ago. This decline indicates that fewer miners are competing to solve the math problem to mine the block and win freshly minted BTC.

Mining fees meanwhile jumped 47.8% since last month and a whopping 196% YTD, as per Glassnode.

Amidst this, the bullish metric is a long-term velocity that measures the speed at which bitcoin is moved through the network. A velocity of 600% means, active coins move six times per year and it has yet again turned bullish last week after being below 600% since August 2019.

Yet another bullish indicator is MVRV Z-Score which is used to assess when Bitcoin is under or overvalued relative to its fair value. It dropped under and then promptly bounced back over 0 in a space of two weeks and “historically, falling into the green zone has indicated market bottoms.”

Latest Bitcoin Price News and Crypto Market Updates

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Author: AnTy

23k BTC on CME Futures and 50k BTC in Options Expiring Today

Bitcoin is currently down 0.05% in the past 24 hours trading around $6,640 after hitting $6,872 last night, yet again rejected at $7,000 level. Interestingly, more than 340,000 addresses are holding about 236k BTC at about $7k level.

According to trader Nebraskan Gooner, the crypto asset is working in a tight range. A daily close above $6,750 he said “would surely” take us above $7,000 while the close below $6,400 means, falling to $5900 and even $5200.

Bitcoin has also printed a death cross, which indicates a potential for major sell-off. This technical chart pattern has been a reliable indicator of some of the most severe bear markets in the traditional markets which is now seen in bitcoin.

But bitcoin volatility could see a further hike as futures contracts on CME and options expire today.

Activity on CME has been declining ever since February when the price of Bitcoin was trading around $10,500. Crypto data provider TradeBlock, noted,

“March bitcoin futures trading volume at the CME declined despite elevated volatility in spot markets for the month. While the CME’s bitcoin futures product saw record volumes in January and February, March activity has fallen considerably.”

Source: @TradeBlock

As for today’s futures contract expiration, Bitcoin futures on regulated exchange CME has about 23,000 BTC worth over $150 million in open interest for March 27th contracts.

Besides bitcoin futures, options are also expiring today. About 50,000 BTC options worth about $330 million are outstanding on crypto exchanges, out of which $50 million are in open interest on March 27th expiry on Deribit.

“For reference, the Deribit Exchange open interest on options last year was half the value of open interest that is present on exchange now. ($300m -> $600m). The same case for BitMEX March 27th futures,” noted Trajan.

Skew-Total-BTC-Options-Open-Interest
Source: Skew.com

According to Su Zhu, CEO of Three Arrows Capital this quarter is “very important” to watch. It is expected that the expiry of Bitcoin futures and options would result in heightened volatility.

Zhu further noted, “Last yr market bounced quite aggressively from backwardation to contango after the expiry.”

Backwardation is when the spot price of an underlying asset is higher than the futures price while Contango is when the price of a commodity is higher in the futures market than the current price of the commodity. Now it’s to be seen if we will see the same scenario happening this time as well.

Backwardation is happening in both gold and bitcoin which Zhu said could be because “mkt has re-learned fear and is showing preference for owning actual assets vs owning derivatives of those assets.”

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Author: AnTy

Coinbase Commerce Crosses $200,000,000 In Crypto Payments Since Launch

Covid-19 hasn’t kept consumers from using bitcoin (BTC) as a means of payments for goods and services according to a merchant transaction report from Coinbase Commerce.

A Coinbase Commerce report shows that on 3-26-2020, clients made bitcoin transactions that helped the company surpass a goal of $200 million in transactions since it launched the payments portal. The results come from an enormous network of eight thousand retailers that accept cryptocurrencies together with other methods of payment.

BTC Preferred Over Other Cryptocurrencies

The news is great for those who encourage the adoption of Bitcoin (BTC) and cryptocurrency altogether. The COVID-19 crisis doesn’t seem to have affected the way people use digital money. However, the situation is not the same for merchant crypto payments, as John Zettler, Coinbase Commerce product’s lead, said there hasn’t been too much activity in this area in March.

He added that money comes very often in BTC but didn’t mention the exact usage breakdown of crypto-by-crypto. People seem to prefer BTC more than other digital currencies. Here are his exact words about how customers at Commerce feel about this digital currency:

“Merchant customers often tell us it’s the crypto they’re most familiar with and the one they trust the most.”

USDC Is Also Growing

Coinbase is also witnessing an increase in stablecoin based payments, especially in its own USD coin that’s dollar-pegged, USDC. Zettler mentioned USDC is leading the growth pack and is expected to have a material growth through Q2 and Q3 of 2020. Support for USDC was added by Commerce back in May 2019.

Zettler further said that Coinbase is working to improve Commerce’s features so that merchants’ demands are being met. The service was launched for refunds and with the intention to normalize the crypto e-commerce space. At the moment, crypto is only an insignificant e-commerce method, with a $3.5 trillion sales marketplace in 2019.

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Author: Oana Ularu

Galaxy Digital’s Novogratz Remains Bullish as Ever on BTC: “This is the Time for Bitcoin”

The price of Bitcoin has surged 74% from the low the digital currency put on March 12. However, we are still down 36% from 2020 high of about $10,500. But according to billionaire investor Mike Novogratz instead of panicking, this should be taken as a buy the dip opportunity.

In a recent interview with CNBC, the Galaxy Digital Holdings’ CEO said, “If there was ever a time — debasement of fiat currencies, monetization of trillions of dollars of debt, this is the time for Bitcoin.”

The bitcoin bull predicted on Tuesday that the world’s leading cryptocurrency would rally this year as it was designed after the 2008 financial crisis to be an alternative when central banks “run amok.”

In recent weeks, we saw central banks around the world announcing trillions of dollars in stimulus to pump in the financial markets and promising every step necessary to combat the impact of coronavirus on their economies.

“It needs to rally this year,” said Novogratz. “If at the end of the year Bitcoin’s not a lot higher, I’m going to scratch my head and say, ‘Look, what the heck is going on?’”

Bitcoin Looking Promising

Currently, BTC/USD is trading under $6,700 after surging to $6,990 after the $2 trillion stimulus coronavirus bill was passed. The move yet again followed the stock market. Yesterday, the Dow Industrial Average had its historic rise only today to swing between gains and losses.

Meanwhile, one technical indicator, GTI VERA Convergence Divergence is flashing a buy signal. Moreover, according to Christel Quek, co-founder of Bolt Global,

“It could be very likely that traditional investors are seeking to regain liquidity through profit hunting from crypto assets as equities are negative worldwide.”

However, in the short-term, in the next 1 to 2 months, economist and trader Alex Kruger sees everything from equities, their volatility, bitcoin if it remains risk-on, and crude oil to be lower.

It’s worth noting, in less than two months, Bitcoin will experience its third reward halving that would cut down miners block rewards while the cost of mining bitcoin will surge between $12000 to $15,000.

In the next six months, the economist sees equities and gold higher while his 12 months’ view is everything from equities, its volatility, gold to bitcoin going higher. But the main risk he said is if the equities’ bottom is in because of the rising coronavirus cases and the period of lockdown in the US.

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Author: AnTy

Record Demand for Gold Amidst Supply Crunch & No Way to Move the Physical Bars

As analyst Luke Martin puts it in bitcoin terms, “gold is going through un-announced (refiner) halvening.”

The demand for safe haven asset gold is surging and the price of the precious metal has increased 5.6% yesterday but with mining operations slow, the bullion is expected to rally to new heights. This has been the largest one-day dollar gain for the metal since November 1984. The move came on the back of the Fed’s decision to unleash unlimited QE.

Meanwhile, a crunch in supply is currently being witnessed. Three of the world’s largest gold refineries that process a third of global annual supply reported on Monday that they have suspended the production in Switzerland for at least a week. This has been on the back of the mandatory closure imposed by the local authorities to prevent the spread of coronavirus.

Dublin-based GoldCore said it “experienced record demand in recent days and the global supply of gold and silver bullion coins and gold bars has quickly evaporated.”

Retailers are already reporting shortages and delays of 15 days on shipments while the demand has gone up to five times the normal daily amount.

Moreover, the supply routes are strangled because of the lockouts and grounded planes, not allowing gold to be moved around the globe. The yellow metal is shipped around the world on commercial flights, linking the trading hubs with refineries and vaults. But as coronavirus shuts down the refineries, it is becoming harder to trade gold.

This led gold futures to shoot to the highest premium with the spread between New York and London gold price skyrocketing, last seen in 1980, showing how desperate investors are to find a safe haven.

The bigger problem, however, remains the shipping of gold as one puts it, “There are enough kilobars around: the issue is how to get it where it’s wanted.”

And this is exactly what the bitcoin commentator has been repeatedly talking about. Gold proponents continue to argue that there won’t ever be the need to carry the bags of gold but today as the nations are into lockdown because of COVID-19, this is exactly what is happening.

Bitcoin as a digital gold narrative gaining traction

Interestingly, just like gold, bitcoin has been seeing a jump in price, today it momentarily went to $6,990 on Bitstamp. When it comes to the past 12 months performance, while gold is up only 25%, bitcoin is up by 69%.

Though since then, the price of BTC has gone down again to about $6,600, the world’s leading cryptocurrency is preparing for its supply crunch in less than 50 days which is expected to boost its price as well.

Gold has actually become the “most used” word in Bitcoin tweets, with 63% being positive. Also, mentions of Gold in Bitcoin headlines are nearing their all-time high. “The bitcoin as a digital gold narrative has begun to gain significant traction once again,” noted crypto data provider The Tie.

However, while the adoption of Bitcoin among institutions on the basis of volume on CME is around $300 billion daily in the past few days, gold which is in the focus has its COMEX futures trading $100 billion volume yesterday and $20 billion in options.

As gold pushed higher, Goldman Sachs told its clients that it’s time to buy the “currency of last resort” which fell 1% today.

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Author: AnTy

Two Popular Altcoins Still Recording Over 140% Gains in 2020 So Far

  • The market is enjoying the greens.

As Bitcoin jumps to nearly $6,900, altcoins follow up. However, this time, the world’s leading cryptocurrency is the one that is ruling the market with over 6% gains in the past 24 hours.

Source: Coin360

After experiencing a massive sell-off that dominated all asset classes, whether equities or gold, Bitcoin with other risky and safe-haven assets are back to surging as central banks announce stimulus to combat the coronavirus impact on the economy.

However, according to Vijay Ayyar of crypto exchange Luno, Bitcoin price could spike to $6,500 before finding a range between $3000 and $6,000 until the next bull cycle breakout. He said,

“This is classic redistribution and would be very healthy for future Bitcoin price action and if we were to have bullish momentum going forward.”

The Winners

Among the large-cap cryptos, Monero is recording gains of 12.48% while trading at $46.71. Other coins that emerged as the winner in the past 24 hours are Nano with about 20% gains Steem which is up about 19%, and Enjin Coin which is up over 10%.

The price of Steem is increasing despite the community having a successful hard fork and launching HIVE in an attempt to expel Tron founder and CEO Justin Sun’s Steemit. Ever since the Hive announcement, the price of STEEM has been rising, which could be users attempting to capitalize on the promise of “free airdrop” payouts.

If we take a look at the top gains of the past 7 days, Dash recorded 54% gains followed by Enjin Coin (52.52%), Bitcoin SV (48.11%), STEEM (40.47%), and Nano (39%).

The sixth-largest cryptocurrency by market cap, Bitcoin SV currently has 17.96 million addresses with a balance of the digital asset. Over 91% of the addresses are holding 9.01 million BSV for more than a year while less than a year old hodlers are holding 6.77% addresses with 5.79 million BSV. Only 1.46% of the addresses are less than a month old BSV holders.

Which Crypto Rules 2020 so far with gains?

There are a number of small-cap cryptos such as XNS (391%) DATA (139%), QQQ (174%), NMR (132%) and others that are leading the market in year-to-date gains.

However, there are a few known cryptocurrencies that are also recorded significant gains so far in 2020.

Kyber Network is leading the pack with 160% gains. The Ethereum-based on-chain liquidity protocol enables users to trade instantly between a wide range of token pairs. Crypto analysis company Glassnode in its latest report points out how for about 2 years, the growth of KNC holders was relatively stagnant, a trend that broke in mid-February this year.

Several events like increased trading volume, Coinbase listing the token, and the Katalyst upgrade given a Q2 release date all worked in KC’s price favor which is trading at $0.468.

HBAR is another big gainer which is up 146% YTD. One of the recent developments came in the form of a Coronavirus (COVID-19) tracker based on Hedera Hashgraph.

Other gainers are BSV (82%), Lisk (77%), ICX (70%), Dash (60%), DigixDAO (53%), Bitcoin Gold (39%), Steem (38%), Tezos (30%), and Link (22%).

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Author: AnTy

Ultra Bullish on Gold and Crypto After USD Liquidity Squeeze: Popular Trader

  • Gold is almost back to its highs. Time for Bitcoin to get on its horse and ride
  • USD on longest winning streak since 2012

After yesterday’s jump above $6,600, today Bitcoin surged yet again to almost $6,900. From yesterday’s lowest level of about $5,700, the world’s leading cryptocurrency has jumped 20.4%.

Not just bitcoin but global markets also rose on the optimism of a strong US response. European stocks rose broadly while Asia stocks recorded similarly strong performance with the futures market suggesting Wall Street would open strongly as well on Tuesday.

Markets have been reacting to the Federal Reserve’s unlimited QE on Monday. Other markets also signaled improved investor confidence as the price of the 10-year Treasury bond fell, sending yields higher. Gold prices soared over 4% to $1,603.78 an ounce.

With “everything on the table” USD Soares

The US dollar initially slipped after the Fed announced fresh measures to supply liquidity into the funding markets but it is back on course for a 10th day rising, the longest winning streak since 2012.

greenback-perfect-10
Source: Bloomberg

“Given the big picture view, the dollar is still in a fantastic position that will be difficult to dethrone, no matter what people say,” said the chief executive officer at Eurizon SLJ Capital.

The dollar continues to rise while the Fed has basically announced an unlimited money supply to help the markets. Fed President James Bullard who recently suggested unemployment could reach 30% and GDP could fall 50% also said, “everything is on the table.”

In the recent interview, President of the Federal Reserve Bank of Minneapolis Neel Kashkari said there is “an infinite amount of cash at the Federal Reserve” further clarifying, “That’s the authority that (Congress has) given us: to print money and provide liquidity into the financial system.”

Biggest Argument for Bitcoin

And this is the biggest argument for Bitcoin yet. “Think of it less in terms of the ‘price of bitcoin’ and more in terms of the ‘exchange rate between BTC & USD.’ Now consider what happens as the supply of bitcoin remains fixed (21M) while the supply of dollars becomes infinite,” said Bitcoin enthusiast Russell Okung, an NFL player.

And that’s why bitcoin enthusiasts, investors, and traders are extremely bullish on Bitcoin. “Bullish on USD liquidity squeeze and then I’m ultra bull on gold/crypto,” said pseudonymous former crypto trader Crypto Cobain.

In a world of zero percent interest rates and unlimited QE, trader Ledger Status believes, “Bitcoin the only one that’ll hit $100k in this race.”

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Author: AnTy

Bitcoin Jumps on the News of The Fed Launching “Unlimited QE”

Just like last weekend when the price of bitcoin reacted immediately to the US Federal Reserve slashing interest rates to zero and restarted the QE program, today bitcoin jumped on the back of unlimited QE news.

Bitcoin was trading under $6,000 only to jump to $6,629 in under an hour. However, we are back around $6,300, up 5.83% in the past 24 hours.

Despite the stimulus, the stock market opened lower with the Dow Jones Industrial Average slipping 1.8% and S&P 500 fell 2.9%. Gold, however, headed higher on Monday to $1,524.96 an ounce after the Fed unveiled an aggressive round of additional stimulus.

“US stocks gave back all gains since the start of Trump’s presidency,” noted economist and trader Alex Kruger.

No Limit

The Fed said on Monday that it will launch several programs to help markets function more efficiently amidst the coronavirus crisis.

“The coronavirus pandemic is causing tremendous hardship across the United States and around the world. Our nation’s first priority is to care for those afflicted and to limit the further spread of the virus,”

the Fed said in a statement.

“While great uncertainty remains, it has become clear that our economy will face severe disruptions. Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate.”

Fed President James Bullard predicted the US unemployment may hit 30% in the second quarter and an unprecedented 50% drop in GDP because of the shutdown to combat the coronavirus (Covid-19).

Among the initiatives is a commitment to continue its asset purchasing program, a new chapter in Fed’s “money printing.” Other initiatives include unspecified lending programs to support eligible small-and-medium sized businesses.

“We are now in QE infinity, again,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group.

Free Money, Not Free Lunch

The Fed has been injecting billions of dollars in the economy and considerings trillions more as the coronavirus cases around the world surge over 353,000 and at least 470 people die in the US.

With the shorter-term MMT announced, “the government can now spend all it wants,” said Kruger. This the economist said is “how free money looks like. But there is no such a thing as a free lunch.”

“Society pays for this. Via inflation. The price to pay is inflation in the long run. Inflation expectations are popping and the long end of the treasuries curve is already pricing it in,” said Kruger.

And this is why the crypto industry is so excited. Already, Bitcoin is looking like it might be decoupling, and according to on-chain analyst Willy Woo, we would get more confirmation of this in the coming weeks.

He explains that in a flight to safety, traders first exit risk-on leveraged positions to pile into USD, which has been soaring all this time. Once the assets have crashed against USD and fear peaks, comes the time to hedge in assets ahead of rise in their value as it happened in 2008 in gold and Woo says would happen to BTC in 2020.

It’s the first time that Bitcoin is going through a crisis and there is no knowing how it will perform. Currently, it is acting like a risky asset with charts having a bear flag, however, the fundamentals are strong and bullish while the stock-to-flow model cointegration is being followed nicely.

“Investors and consumers have trouble understanding Bitcoin’s value proposition. The former expects a cash flow, the latter expects magical payments UX. Both are disappointed by Bitcoin. Savers quickly fall head over heels in love with Bitcoin,”

said co-founder of the Satoshi Nakamoto Institute, Pierre Rochard.

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Author: AnTy

Tether (USDT) Stablecoin Rolls Out on the Bitcoin Cash Blockchain Network via SLP

Quick Read:

  • Tether (USDT), the leading stablecoin within crypto markets, is now available on the Bitcoin Cash Network.
  • This USD backed digital currency scaled to BCH as the more crypto users opt for stability amid uncertainty in oil markets and Coronavirus (COVID-19).

The demand for stablecoins has been on an uptrend in the past week surging Tether’s market cap to over $5.7 billion. As it stands, more than $480 million have been minted within the past weeks. These figures may continue rising especially with the move to leverage BCH’s Simple Ledger Protocol (SLP). The SLP is basically Bitcoin Cash generic token and fuels this network just like ERC-20 tokens do within Ethereum’s ecosystem.

Prior to the BCH launch, Tether (USDT) was already available on Tron, Omni, Liquid Network, EOS, Algorand, and Ethereum. This stablecoin began its journey on the Omni layer protocol but later shifted most operations to Ethereum’s network. However, some shortcomings like scaling options forced Tether to leverage more platforms as the market grows.

The BCH network is known for its lower fees and larger blocks compared to Bitcoin. Therefore, Tether is optimistic that leveraging this capacity will improve the stablecoin’s efficiency and value. The company’s CTO, Paolo Ardoino, highlighted that;

“A key strength of Tether is that it is underpinned by a rich diversity of different blockchains. Our latest collaboration with Bitcoin Cash will provide Tether with a variety of benefits.

We expect the adoption after launch to be pretty easy for any integrator. The launch will also support more applications on the Bitcoin Cash chain, with Tether facilitating payment for these applications.”

Given this development, Bitcoin Cash users will be more exposed to USDT via the network’s app. This platform was upgraded recently to allow participants access to the SLP native token. Bitcoin Cash Chair, Roger Ver, noted that it is exciting that the world’s largest stablecoin will start using BCH blockchain including Bitcoin.com wallets.

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Author: Edwin Munyui

5 Bitcoin Charts Are Painting A Bullish Picture: On-chain Analyst Willy Woo

Bitcoin is having a great time, surging as high as $7,139, up 14% so far. What’s even more interesting is the extremely high volume, crossing $3 billion for the first time on top ten exchanges with real volume, as per Messari.

The Dow Jones futures also rose 2.35% on Monday morning along with S&P 500 futures, up 1.9%, and Nasdaq 100 futures that climbed 3.5% after briefly hitting 5% “limit up” halt, suggesting a stock market rally.

Gold and BTC have been hinting at decoupling from the S&P 500 for the past few days, which Woo said could mean that gold is forming a double bottom while BTC forming an accumulation pattern.

However, this rally is nowhere near the percentage needed bitcoin to recover from last week’s Black Thursday losses. Bitcoin might have started decoupling from traditional markets, but on-chain analyst Willy Woo says the next key event would be the confirmation of decoupling. Bitcoin’s unexpected move up is not agreed upon by everyone as Woo said,

“I don’t expect a V-shaped bottom, I think there will be time, an accumulation range before moving up.”

So, it’s to be seen if the world’s leading cryptocurrency would keep the gains or drop back down. What’s positive is a bunch of charts which are bullish. BTC -0.56

To start with, the bitcoin miner energy ratio is making a “strong rebound,” meaning lots of energy is being pumped into the network which is bullish.

Bitcoin-Miners-Energy-Ratio

The difficulty ribbon is also expanding after a time of compression which the analyst said is generally seen as bullish. Although it is still too early, it definitely reinforces that the mining behind bitcoin is solid and the network is strong,” said Woo.

Spent Output Profit Ratio (SOPR) is also painting a bullish picture. The on-chain net position of investors is recovering and rekt investors are out.

SOPR has taken a nosedive below 1 which means the owners of the spent outputs are in profit at the time of the transactions.

Bitcoin-Spent-Output-Price-Ratio

Another one in this list of bullish charts is the on-chain RSI. The relative strength index is a momentum indicator that evaluates overbought or oversold conditions in the price of an asset.

About the current levels, the trader said, “Nobody went broke buying BTC at these levels of on-chain RSI. (If you are in it for the long game).”

Another non-technical indicator is the bitcoin ATMs, which have been continuing its upward ascent, reaching 7,242. In 2020, to date, the crypto ATMs have grown over 14%.

In the past two days, bitcoin has made a strong move, up more than 10% each day. The last time bitcoin had two straight daily closes over 10% was in early December 2017, during the bull run.

Now, bitcoin needs to maintain its gains before it could make its way to new highs.

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Author: AnTy