Crypto’s that are Seeing Heightened Interest & The Ones Not Popping

This week, several digital assets recorded substantial gains. It all started with Dogecoin when zoomers went on Tik Tok to pump this “joke cryptocurrency.” DOGE went up 150%, and the Google Search interest also jumped to a top score of 100, a massive uptrend from the usual reading that remained below 10.

However, Dogecoin has since retraced all of its gains and is currently in the red.

Another coin that has been a hit on the popular video-sharing platform is Zilliqa. However, the greens recorded by this crypto have been completely lacking.

A positive development has been Binance-backed BUSD coming to Zilliqa blockchain, which, along with Switcheo, is building a bridge between Ethereum and Zilliqa to bring the ERC20 stablecoin to it.

On Google trends, the search interest for Cardano and VeChain is still strong, to the full 100 on a scale of 0 to 100. Both the coins made sizable gains this week.

Cardano’s gains have been on the back of several announcements made during the Virtual meetup. In a blog post on Friday, IOHK’s Tim Harrison further shared that they have “effectively recreated the steps that we’ll go through later in July to activate Shelley functionality on the mainnet. A ‘dress rehearsal,’ if you like. And so far, it’s looking good.”

While ADA has calmed down, VeChain is still recording 10% gains but has slipped from $0.20.

Stellar started popping up later in the week to surge over 50%, with its competitor XRP also slowly moving up, now barely in the greens. However, this week, XRP tweets reached an all-time high as per Bitinfocharts only to tumble back down.

Elorand’s impressive feat of over 100% gains is slowly winding down the same as Ampleforth, whose “whole use case is around having stable purchasing power.” In the past month, both these digital assets recorded gains of more than 250%.

Because these cryptocurrencies are slowly giving up their gains, this looks like an “altweek” instead of an alt season, says analyst Mati Greenspan.

Although there are still “many projects that still have promise and lots of money available for investments,” Greenspan says, “the digital asset space is plagued with a lack of metrics to measure absolute value and instead must defer to relative value, or more often … momentum, which is what got us to the situation this week.”

When it comes to YTD changes, Aave is up a whopping 2,300%, Unibright 1,460%, Kyber Network 810%, Band Protocol 643%, Elrond Network 540%, and Bancor 500%.

Today, IOV Blockchain 80%, Kava is up 26%, Aave 18%, Algorand 17%, Bytom 15%, Hyperion 13.75%, and Balancer 11%.

According to trader Crypto Michaël, until bitcoin breaks out of its range, altcoins will continue to outperform bitcoin.

“Essentially, anything between $8,500 and $10,500 is playground time for altcoins, and that could last a few months longer,” he said.

But there are still some coins that are not rallying during this frenzy. Bitcoin hard fork Bitcoin Cash (BCH) and BCH’s hard fork BSV; both have been struggling in this rally. Litecoin is another top coin that is not giving any signs that it will lift off.

Although EOS’s YTD performance remains the worst with 1.41% losses, it has started stirring, but it remains to be seen if it will be able to wake up.

Monero did move, but the gains have been comparatively of small size, the same as Tron (TRX), NEO, Hedera Hashgraph, and Lisk. Maker’s value dropped this week.

Bitcoin and Ethereum meanwhile remained stable this week around $9,200 and $240, respectively.

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Author: AnTy

Ethereum Miners Accumulating While Active Addresses Point to ‘Strong Price Rally’

Unlike Bitcoin, Ethereum has really made substantial gains in 2020, up 75% YTD compared to BTC’s 25%. Even after the March sell-off, Ether has been on an incline, rising 10.52% against BTC the past month. Currently, ETH/USD is trading at $226.

Just like the price, the number of non-zero addresses has been surging, but at a faster pace. Today, Ethereum non-zero addresses broke the previous ATH set just a day back to make a new high of 42,385,447, as per Glassnode.

These addresses have been growing since 2017, notwithstanding the price movement, which went through a bull market in 2017, a bear market in 2018, and now a mix of gains and losses before starting a new bull rally.

Just like retail investors, miners are busy accumulating ETH. In the past 20 days alone, they added 21,000 ETH, worth nearly $5 million, shared Spencer Noon, head of DTCCapital, a crypto-native investment fund.

This latest uptrend came after miners sold ETH in late May and then in early June following the digital asset’s price spiking above $220, “which coincided with the start of Ethereum’s consolidation phase.”

“The prolonged periods of miner accumulation can indicate fairly high confidence levels among ETH mining pools in relation to the asset’s short-term performance,” noted Noon.

A similar uptrend can be seen in the number of addresses interacting with ETH each day, which is being sent or received. In an uptrend for the past three months, it is now approaching the 2019 top.

Such a surge in Ethereum’s daily active addresses has previously coincided with a “strong price rally.” But because currently, Ether is in the weeks-long consolidation period, this may be a decoupling of price action from the network’s utilization.

But at the same time, previously dormant coins are once again moving between addresses as Ethereum’s token Age Consumed spiked at its highest level since February 2019. The spike is also higher than the one recorded on Black Thursday.

“Spikes in Token Age Consumed can sometimes signal changes in the behavior of certain long-term holders, and tend to precede increased volatility in the coin’s price action,” noted Santiment. This latest spike however is most likely due to the sudden movement of 789,534 $ETH (~$184,000,000) from the PlusToken Ponzi scheme.

Ethereum’s token velocity has also hit a 2-year high with the average amount of times active ETH tokens changed addresses spiking to 5.2 per day which might be prompted by the “yield hunting” on various DeFi protocols.

Lastly, as we have been reported, total gas used on the Ethereum blockchain made a new all-time high just as Ethereum miners are voting to increase the block gas limit by 25%. This growth is also due to an increase in the utility of DeFi projects Uniswap and Kyber network, which also ranks in the top 10 by gas usage in the past month.

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Author: AnTy

China’s National Blockchain Service Network Integrates Chainlink; Pushes LINK Prices Near ATH

Chainlink is back to recording gains, up nearly 12% on the back of partnership with China’s national Blockchain Services Network.

The recently launched BSN will be integrating the Chainlink oracle function to its network that enables governments and enterprises to incorporate real-world data such as IoT data, weather, location information, and financial asset prices into their BSN applications. SNZ pool, a PoS operator, will run nodes to support the operation.

Chainlink will be integrated into BSN via the interchain service hub of IRITA, a consortium blockchain product. It will allow BSN blockchain to receive external off-chain data through Chainlink oracles.

The interchain service hub is the first step toward achieving easy and convenient interoperability among all the decentralized applications (Dapps) deployed on the network. Xiang Dai, Deputy Secretary of the BSN Development Association and Director of Planning and Consultation with the China Mobile Group Design Institute Co., Ltd. said,

“We believe that this integration will transform blockchain applications and foster greater growth of the BSN ecosystem – in China and around the world.”

Providing Interoperability to all DApps

This integration is said to provide BSN users reliability, interconnectivity, and additional security to help fuel the growth and adoption of blockchain applications in China and around the world. Sergey Nazarov, co-founder of Chainlink said,

“We’re excited to help build out BSN’s global infrastructure project by providing secure and reliable oracle services. By connecting BSN applications to real-world data, smart contracts can bring new levels of automation and trust to global agreements.”

A working prototype using Chainlink oracle is already underway, and BSN and SNZpool have also allocated resources to support the development of node infrastructure to run IRITA and Chainlink nodes.

BSN is designed to be a one-stop-shop for companies to access ultra-low-cost blockchain cloud computing services. It is used by the likes of China’s State Information Center, China Mobile, China Unionpay, and Red Date Technologies.

“One of the main purposes of BSN is to provide interoperability to all DApps, regardless of whether they are for permissioned chains or public chains,” said Yifan He, CEO of Red Date Technology and BSN co-founder. Also stating,

“On BSN, each Dapp should be able to call any other Dapps in a very convenient and low-cost way.”

More Bullishness

Today, Chainlink also announced that the Ontology network is working towards a mainnet deployment of Chainlink to securely access off-chain data feeds, web APIs, and traditional bank payments. Andy Ji, Co-founder of Ontology said,

“Chainlink has demonstrated a stellar track record in providing bespoke oracle solutions to leading global enterprises including Google, Oracle, and SWIFT.

This experience underlines Chainlink’s credentials as the undisputed, market-leading decentralized oracle network.

This collaboration marks another milestone in our platforms’ long-standing and fruitful relationship, and we are excited to see this integration come to life.”

LINK is today’s biggest gainer among the top 50 cryptocurrencies. The 13th largest cryptocurrency by market cap of $1.6 billion is currently trading at $4.80, just a little off from its all-time high of $4.95 hit on March 4, 2020. In 2020 so far, this hot cryptocurrency is up 160%.

Amidst this price action, people are removing their LINK from cryptocurrency exchanges. Over 285k LINK has been withdrawn from the Huobi exchange in the past 24 hours.

But this isn’t anything new. The total amount of LINK on exchanges has been declining since May 2019.

chainlink-link-tokens-on-exchange-wallets

This behavior, however, is further bullish for LINK as this indicates the investors are preferring hodling instead of taking profits.

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Author: AnTy

So Many Catalysts Calling for a Remarkable Bull Rally of Ethereum

The second-largest cryptocurrency network Ethereum has recorded 85% gains in 2020 so far as it trades at $243.

However, this might not be it for Ether and we may record more gains ahead given the number of factors fueling Ethereum growth.

“If ETH doesn’t go on a significant & idiosyncratic run over the next 6 months then I don’t see how it ever will,” said analyst Ceteris Paribus.

Increasing Gas Usage & Skyrocketing Fees

The network usage is already hitting new highs with blocks getting increasingly full over the last full weeks. To address this increase in block fullness, Ethereum miners have voted to increase the network’s gas limit by 25%.

Source: CoinMetrics

Network fees are also skyrocketing, in 2020 so far, the total network fees have jumped 848%.

Over the last two weeks, ETH actually flipped BTC in terms of daily transaction fees, the last time ETH fees topped BTC fees for at least 14 consecutive days was in July 2018. But ETH median fees between $0.47 and $0.65 are still lower than BTC’s which remains between $1 and $1.50.

Moreover, stablecoins are exploding and the majority of them are launched on Ethereum blockchain. Stablecoin issuance which is plugged to consumer demand has grown immensely in 2020 during the coronavirus pandemic just as the demand for USD has risen globally.

The total market cap of stablecoin has surpassed $11 billion while Tether is close to shooting past $10 billion. USDT is also one of the highest gas-consuming applications on Ethereum today.

DeFi Boon

The growing DeFi space is one of the bullish catalysts for Ether. Just recently, the total value locked in DeFi space jumped to a new high of $1.50 billion. The amount of ETH locked in DeFi has also jumped back to 3 million.

“As that outstanding ether supply comes down and demand from DeFi platforms hits escape velocity, ETH will rally hard,” is what John Todaro, head of research at TradeBlock believes.

Just last week COMP token prices skyrocketed which pushed the market cap of DeFi past $6 billion. When these tokens start crashing down, Ether and BTC are expected to pump.

DeFi boon is expected by many experts to result in profits to Ethereum.

The One Way Street of ETHE

Another immediate bullish catalyst is ETHE shares unlocking. The lockup period for the first batch of Grayscale ETHE shares has ended, with sellers bringing the premium down. Already it has declined by 44%. This is pushing some investors to buy spots to reissue shares.

“Float unlocking will depress premium, but if premium stays high, arb funds will dump ETHE on secondary and re-enter at NAV with new spot ETH,” Paribus said.

The reason why ETHE is a “meaningful driver” for Ethereum is that most deposits to this Grayscale product are borrows.

Avi Felman, head of trading at BlockTower explained that funds are borrowers of ETH placing the crypto asset into ETHE to create ETHE shares while lenders are long-term trying to get yield.

“Normally borrows are “created supply” as people borrowing usually short. In this case, there is no created supply as it gets locked in the trust instead of sold on the market,” he said.

Borrowers are still short ETH, a risk which gets shifted to ETHE products but they were locked down so when a sizable amount of ETH unlocked, it resulted in ETH prices shooting up.

The consistent spot demand and the arbitrage on ETHE will lead ETH further higher.

All the Bullishness

ETH 2.0 Staking is already garnering much attention with wallets with the required Ether for staking, 32 ETH, growing, and ready for staking.

Big names among the crypto exchanges, Binance and Huobi are already backing Consensys to test its new staking as a service offering for Ethereum 2.0.

The layer 2 scaling solutions also add to all the Ethereum bullishness with the fundamental structural shifts in the form of ETH 2.0 and EIP 1559 further creating “a strong bid” for Ethereum and a nice bonus down the line for Ethere prices.

As analyst Paribus said, “Everything is lining up. If it doesn’t happen now, when?”

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Author: AnTy

Chainlink’s Gas Consumption Keeping ‘Rock Solid’ at 1% Despite the Jump in Feeds & Nodes

The 12th largest cryptocurrency by market cap is currently seeing gains of 3.53% while trading at $4.24, with the rest of the crypto market.

It is one of the top cryptos that is up over 120% in 2020 so far in comparison to Bitcoin’s 30% return.

These gains also coincide with the slight uptick in its daily active addresses. These addresses have been trending up since the past year, as per the Santiment data.

ChainLink-santiment
Source: Santiment

The LINK holders also don’t have any intention of selling their tokens in the near future. The top 1% of LINK holders has actually grown by about 25% in the past year.

The holders are withdrawing from exchanges. In December 2017, it saw its biggest transfer to exchanges from 8.6 million to 125 million LINK.

Since a year back, it has been on a constant decline, currently around 70 million. They are either hoarding them or using them in Chainlink smart contracts for off-chain data which has grown by 1.3% YTD.

Chainlink is a decentralized network that provides price feed data to other blockchain networks. It basically provides a solution to the “oracle problem” through off-chain data.

This Ethereum-based platform has been consuming 1% of all gas since mid-March. The percentage of block space gas being consumed by a protocol shows just how much stress an application is putting on Ethereum’s bandwidth.

At Chainlink’s mainnet launch, when it was just with a single price feed (ETH/USD) and three nodes, it consumed 0.33% of Ethereum’s daily available bandwidth. Over 2019, it rose to 3.5% as the price feed spiked to two including BTC/USD with each having 21 oracle nodes.

During Black Thursday, this peaked at 6% when ETH fees skyrocketed only to now remain “rock solid” at 1% despite there now being over 30 price feeds. This could be because of “Chainlink networks moving to a deviation based schedule,” shared ChainLinkGod and CryptoSponge.

In order to create a sustainable oracle network, rewards paid to Chainlink nodes need to be higher than the costs spent by them in delivering the external data on-chain.

Now, because the Ethereum gas fees have been higher than normal lately, the profitability of these nodes has been declining.

chainlink-gas
Source: ChainLinkGod

Each price feed pays a different amount of LINK rewards to nodes depending on the security of a particular network.

And out of all the price feeds, ETH/USD and BTC/USD are the highest paying ones, which are in high demand by DeFi applications and contain higher levels of decentralization than most networks.

Initially, 33.33% of the total daily payments were paid to the Chainlink core team’s node which has since dropped to just 1.34%.

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Author: AnTy

Central Bank Digital Currencies are a Risk to Dollar Dominance: JPMorgan Report

According to JP Morgan Chase & Co., if the idea of central bank digital currencies (CBDC) gains traction, the US can risk losing its geopolitical power.

“There is no country with more to lose from the disruptive potential of digital currency than the United States,” wrote analysts including Josh Younger, head of U.S. interest-rate derivatives strategy and Michael Feroli, chief U.S. economist in a report.

“This revolves primarily around U.S. dollar hegemony. Issuing the global reserve currency and the medium of exchange for international trade in commodities, goods, and services conveys immense advantages.”

jpmorgan-cbdc
Source: Bloomberg

The Risks

Overall, the analysts found there to be reasonable reasons for central banks to introduce digital currencies. However, these CBDCs are unlikely to have the transformative impact that many have hoped.

Although JPMorgan doesn’t see the greenback getting toppled as the world’s reserve currency anytime soon, the “more fragile” aspects of dollar dominance could be at risk. These aspects include trade settlement and the SWIFT messaging system.

According to the analysts, the EU might want to reduce US’s sway over global payment systems and pointed to SWIFT suspending access for some Iranian banks in 2018 after US sanctions took force, which may have been in violation of EU laws.

To bypass US sanctions and continue trading with Tehran, the EU even established a “SWIFT alternative” called Instex.

As for their progress on CBDC, on May 11, Yves Mersch, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB shared they have to be “ready.”

Mersch talked about embracing the financial technological innovation which has the “potential to transform payments and money faster, and in more disruptive ways, than ever before.”

As for the US, Fed Chairman Jerome Powell said earlier this year that they are looking at the issues with creating a digital dollar but not making any commitments.

An exercise in geopolitical risk management

If like Europe, other countries are also able to circumvent the dollar’s domination, it would become all the more difficult for the US to carry out its goals through sanctions and terrorist-financing enforcement, analysts said. The report reads,

“Offering a cross-border payments solution built on top of a digital dollar would, particularly if designed to be minimally disruptive to the structure of the domestic financial system, be a very modest investment to protect a key means to project power in the global economy.”

“For high-income countries and the U.S. in particular, digital currency is an exercise in geopolitical risk management.”

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Author: AnTy

DigiByte Skyrockets Up 285% In Last 30 Days, ‘No Surprise DGB Outperforming, It’s Undervalued’

The top performer among the top cryptocurrencies, DigiByte (DGB) is enjoying 13.75% gains today while trading at $0.0247. This level was last seen in September 2018.

This jump in the altcoin’s price has it gaining entry into the top 30 cryptos by a market cap of $317 million.

A modification of Bitcoin protocol, this cryptocurrency is up over 813% since the March sell-off during which DGB saw a decline of 66%. In March 2020, DGB made a fresh low from the 2018 peak and since then has been on an uptrend.

Currently, up 345% YTD, DGB is still down 83% from its all-time high of $0.141.

Comparing this ongoing rally to the 2017 and 2018 bull rally that added $1.6 billion to DGB’s market cap, DigiByte co-founder Jared Tate said, this one is different with a bigger network and ecosystem.

“DigiByte is not being manipulated, no P&D. We’re seeing sustainable organic growth. No large stake by a single entity, but a true distribution of wealth,” said Rudy Bouwman, co-founder and of DGB and Vice Chairman of DigiByte Foundation.

“What is happening now, should not come as a surprise. We all know DGB is undervalued and therefore now outperforming,” he added.

These gains have been achieved despite the cryptocurrency not being listed on top exchanges like Binance, Coinbase, Gemini, and others.

In the past, Tate had accused Binance and Coinbase of foul play and asking for money to list their cryptocurrency, which DGB couldn’t provide because of having zero funds as a decentralized project.

He explained in great detail about his dealing with Binance and not getting listed on the leading spot exchange.

He yet again most recently took to Twitter to share the “blatant deceit in the new & improved ranking of “mineable” coins” on CoinMarketCap, a crypto tracker site acquired by Binance in a $400 million deal for which the exchange has been receiving a lot of flak from the crypto community.

Founded in 2013, the altcoin is still available on over 100 exchanges such as OKEx, Bitfinex, Bittrex, Huobi, Upbit, and others. In the past 24 hours, more than $13 million worth of DGB exchanged hands, as per Messari and ranks 20th on the basis of this “real” volume.

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Author: AnTy

BTC is in A ‘Bullish Consolidation’ While Whales Are in ‘Solid Accumulation Mode’

After the success of April, which Bitcoin ended with 34% gains, the digital asset has been fairly flat so far this month. Currently, BTC/USD is trading over $9,300.

These price gains came while the major central banks have been busy printing money and total assets on the Federal Reserve’s balance sheet increased by nearly 55% to $6.7 trillion in less than two months.

Macro Bullish: Re-accumulation

According to Glassnode Network Index, which is high, the recent price action for bitcoin was backed by strong network fundamentals.

“Subindices increased steadily through April, but liquidity is trailing – leaving room for volatility. Increased growth in liquidity would build strong foundations for a bullish scenario.”

The current price action that has the flagship cryptocurrency range-bound could be a “bullish consolidation” or “re-accumulation,” as per IncomeSharks, crypto analyst adding,

“As long as our near range holds I’m pretty confident in this larger wedge breaking upwards towards $9,600. Still in a bull market until I see a reason that we aren’t.”

Even bitcoin whales, entities that are holding over 1000 BTC, are also busy accumulating the digital asset. There are currently 1996 addresses with 1000-10,0000 BTC, as per Bitinfocharts. On-chain analyst Willy Woo said,

“Whale population spotted increasing in the wild. They’ve been in solid accumulation mode since January unperturbed by the COVID crash. This is macro bullish.”

Volatility Down But Volume’s Up

Currently, despite the flat price, “volumes remain elevated, as if something is happening under the surface,” said analyst Mati Greenspan.

Though common for volumes to rise along with volatility, they tend to die down once the action is over.

Last week, on spot exchanges, volume exploded to over $4 billion and the real volume is currently around $1.2 billion. This solid boost has the daily volume, 7-day average once again above $2 billion.

On the institutional front, the open interest on CME has surged to a new yearly high, the highest level seen since the price peak in 2019. Bakkt’s bitcoin futures volume was also as high as $30.5 million on Thursday.

Coming onto the bitcoin blockchain, things have started returning to normal. The estimated transaction value in USD spiked all the way up to $3.18 billion last week and then returned to normal levels.

The Million Dollar Question

Bitcoin has a good start of May, having breached $9,000 multiple times in less than a week.

As per Santiment’s NVT price prediction model for Bitcoin, it is showing a good semi bullish start to May. This indicates that the token circulation, the number of unique tokens being transacted at least once in a given day, is exceeding the average levels expected at bitcoin.

But the million-dollar question currently is how the bitcoin price will behave in these five days leading up to next week’s halving. Santiment noted,

“In general, prices tend to behave in the manner that the crowd least expects more often than not.”

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Author: AnTy

Here’s Why the Bitcoin Halving is Bullish Even if Miners Switch Off

With the latest gains, the price of bitcoin has turned green on a year-to-date basis. Ahead of the third bitcoin halving which is just 17 days away, the price of the leading digital asset has jumped to six weeks high at $7,500 just before the crash on Black Thursday.

Bitcoin recovered all the losses since the violent sell-off in mid-March while in the macro backdrop the balance sheet of the Federal Reserve has reached its all-time high at $6.57 trillion. Fed’s assets started to increase in September 2019 after normalization programs contracted it between October 2017 and August 2019.

While the Fed is busy increasing the money supply by constantly printing trillions of dollars, about $3 trillion in monetary stimulus, the halving next month would cut down Bitcoins’ inflation into half.

As per the stock-to-flow model, this halving would double Bitcoin’s SF ratio to 52 and bring it closer to gold’s 60, the highest ever. The annual inflation rate of Bitcoin at 1.8% will actually fall lower than gold’s 2.5%, shared Electrical capital founder.

Ahead of halving retail interest could already be seen surging with the addresses holding less than 1 BTC on a sharp incline and hitting new highs. Bitcoin whales have also reached levels not seen since the bull rally of 2017.

Halving Trending

With halving just around the corner and price picking up speed, the mentions of halving continue to surge. Over the last 30 days, the mentions of the halving are close to overtaking mentions of coronavirus.

Although mentions of gold on social media are increasing, even they have started to take a back seat.

“For the first time since at least July 2017, the halving is the most mentioned word in Bitcoin tweets. Overall there have been 1,160 halving tweets in the last 24 hours, and 66% of those tweets have been positive,” noted The Tie.

The-Tie-Twitter-Word-Chart
Source: TheTIE

On Google Trends, the term “Bitcoin halving” has already surged to new highs and expected to go even higher.

Interestingly, a new participant has entered the mining scene, Binance. Its mining pool, though still in closed-beta has mined its first-ever block and claims to have the lowest fees of any mining pool.

This also sparked concern about the lack of decentralization in the bitcoin hashrate distribution by the entry of Binance.

What to Expect?

The halving, however, brings the fear of miner capitulation as Maxime Boonen, founder of cryptocurrency market-making firm B2C2 said, “mining costs do not operate as a floor on bitcoin’s price. If the costs of miners increase, some will have to cease operating.”

As per TradeBlock, the breakeven cost of mining one bitcoin will be over $15,000 with the growing hash rate, this means miners will be extremely unprofitable and will dump their BTC.

Source: TradeBlock

However, analyst PlanB points out that the last two halvings of 2012 and 2016 show that difficulty will not adjust downward rather will keep rising post halving as well. After 2016, price did fall but it was because of the Bitfinex exchange hack and Ethereum DAO hack and nothing to do with difficulty dropping and small inefficient miners exiting.

Miners have already invested in new hardware and prepared for this known event as such for a loss of 50% revenue.

“March 12th already wiped out a ton of over-leveraged miners. I see the halving from the supply reduction standpoint fairly neutral, but increased mainstream media attention could be bullish. Google trends have been picking up as well, which surprised me,” said analyst Ceteris Paribus.

Even if some inefficient miners exit, they will be replaced by efficient miners and recover the hash rate if it plummets. Mati Greenspan, in his daily newsletter Quantum Economics wrote:

“Many mining rigs that are barely profitable at this price will be switched off, likely for good. Some miners may even be forced to sell their stash in order to upgrade their machinery, but as far as I see, that only increases distribution, and even if it does happen to send the price down in the short term, it only provides an opportunity to accumulate at lower prices for the long term.”

Moreover, in the macro backdrop where the money supply is dramatically increasing, the world needs a stable asset that can hold its value over time.

And Bitcoin is that asset — “easily transferable, scarce by design, and decentralized in nature,” whose inevitable halving would increase its scarcity.

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Author: AnTy

This Crisis Is A ‘Perfect Storm’ For Bitcoin But We Could Be In For A ‘Prolonged Bear Market’

Bitcoin is back in the green, recording the gains of 3.14% in the past 24 hours while volume on the top ten exchanges with real volume remains above a billion.

As Bitcoin turned green, altcoins also registered gains but not as much as Bitcoin except for the likes of Digibyte which is up 10.83%, CRO 9.36%, Verge 8.86%, Horizen 7.39%, and IOTA 4.42% among others.

Source: Coin360

Bitcoin might be seeing gains for now but commentators are predicting negative price action in the short term.

The world’s leading cryptocurrency has a demand zone in $5,900s. According to a popular trader with the pseudonym Bitcoin Jack, “For now, this is an interesting price level. If we close with an SFP (>6060) I will add margin to my 4500-4800 longs.”

Also, the record volume suggests, “weak hands cleaned.”

BTC price to take yet another hit?

Interestingly, Bitcoin futures are currently trading $1,500 under the level on spot exchanges, which is “exactly the opposite situation,” to the time bitcoin got down to its bottom and we went to a $1,500 backwardation, a situation where the price of a commodity futures contract trade below its spot price, said the trader with the pseudonym Ugly OldGoat.

The trader is expecting a “prolonged” bear market for six to nine months adding that “Competition is going to be on the Bitcoin Standard. It won’t be constipation between Crypto Currencies.”

Structurally we could into a bear market, as the trader explained,

“we went to the big contango when we went for $500 over the spot it became very attractive for the commercial interest to sell Bitcoin and the smart ones were, they sold it all the way up from $11,500 up to $14,500 and they’ve locked in their profits for the year which is really healthy for Bitcoin because you know we don’t have to worry about the miners making it this year. If this market fizzles and goes back down and test lows again at $3,000 they’re gonna be just fine.”

The ones that definitely have to be concerned are the speculators, he said.

Another trader who is expecting a bearish scenario before the halving is FlibFlib who sees the price of the flagship cryptocurrency going below $4,000 at the end of April.

Bitcoin must rally or crypto in big trouble

Bitcoin has been trading like a risk-on asset, trailing stock markets, which have turned mixed today yet again. Volatility continues to control the financial markets as COVID-19 pandemic rages on. While US Treasury yield tumbled, Brent Crude oil price went below $20 a barrel, the lowest level in 17 years.

Investors are currently weighing the toll from the virus against policymakers’ efforts. On Sunday, Treasury Secretary Steven Mnuchin said workers can expect their direct checks from the $2 trillion stimulus package in about three weeks. Also, President Trump said the social distancing guidelines will remain through April 30.

Coronavirus cases meanwhile climbed over 732,000 globally, as per Johns Hopkins data. In the US, the number of cases rose above 143,000 and death over 2,000. Dr. Anthony Fauci, director of the National Institute of Allergies and Infectious Diseases, believes the virus could claim as many as 200,000 Americans’ lives amidst “millions of cases.”

This crisis according to veteran trader Peter Brandt, is the “perfect storm” for Bitcoin and if the digital asset “cannot rally on this, then crypto is in BIG trouble.”

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Author: AnTy