Important events
Jun 022023
BTC/USD: Experts Believe US Debt Ceiling Lift Could Cause Crypto Values to Tumble
- Some researchers believe that the raising of the US debt ceiling could have a negative impact on crypto liquidity.
- Despite growing significantly since the start of the year, crypto’s total market cap is beginning to decline.
- Crypto exchange trading volumes have also declined comparatively YoY.
After a deal has been struck in order to raise the US debt ceiling, some experts in the crypto space believe that it could have a detrimental effect on digital asset prices. With $500bn poised to be removed from the financial system, crypto might encounter liquidity issues on top of already depressed prices.
On top of potential liquidity issues, regulatory concerns championed by the Securities and Exchange Commission (SEC) threaten to put further pressure on digital asset prices. Since the start of the year, the total market cap of the sector has still risen by 44% – somewhat recovering from the wider market selloff of 2022.
From a shorter term perspective however, the last month has shown signals that the comparative bullishness might be beginning to wear off, with a 3.2% (or roughly $75bn) selloff. Bitcoin in particular has been showing increasing signs of wider bearishness with a 4.25% drop. The volume being traded on centralized crypto exchanges is also significantly lower than it was last year, which could further compound crypto’s upcoming liquidity problems.
(About Bitcoin)
Bitcoin is the original decentralized digital currency that was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. It operates on a decentralized peer-to-peer network, meaning that transactions can occur directly between users without the need for intermediaries like banks. Bitcoin uses cryptography to secure transactions and to control the creation of new units of the currency. Transactions are recorded on a public ledger called the blockchain, which allows anyone to verify the validity of a transaction and the ownership of bitcoins. The total supply of bitcoins is limited to 21 million, which is expected to be reached around the year 2140. Bitcoin's price is highly volatile, and it has experienced numerous boom and bust cycles over the years.
Illustration by TradingView
May 302023
BTC/USD: Analysts Think Bitcoin Will Break $45k Due to Rising Gold Prices
- JP Morgan Analysts that Bitcoin’s price should currently be around $45k, due to its correlation with the price of gold.
- Bitcoin’s upcoming “halving”, where BTC miner rewards are reduced, is due to take place next year and will likely increase its price.
- Regulatory and economic pressures however are continuing to weigh down on BTC’s price.
Analysts at JP Morgan has suggested that Bitcoin's real price should currently be around $45,000 and could correct to this level at some point this year. The reasoning lies in the price of gold, which is hovering around the $2,000 mark. BTC price tends to roughly follow the price of gold, due to the nature of both assets as hedges.
Despite the positive prediction for Bitcoin investors, JPM analysts are also suggesting that the world’s largest cryptocurrency is unlikely to rally far beyond that price without major factors at play. However, Bitcoin is due to undergo its next “halving“ in the first half of 2024 – which is likely to cause an increase in price as it has historically done so in the past. The halving will reduce the amount of BTC paid to Bitcoin miners, and results in the cryptocurrency becoming more scarce.
Previous Bitcoin “halvings”, such as those which occurred in 2016 and in 2020, caused price rallies in BTC and contributed to wider crypto market bullishness. Over the next 12 months, analysts at JPM expect BTC gains in the region of 25%, but regulatory uncertainty and global economic pressures could put a dampener on its price growth.
(About Bitcoin)
Bitcoin is the original decentralized digital currency that was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. It operates on a decentralized peer-to-peer network, meaning that transactions can occur directly between users without the need for intermediaries like banks. Bitcoin uses cryptography to secure transactions and to control the creation of new units of the currency. Transactions are recorded on a public ledger called the blockchain, which allows anyone to verify the validity of a transaction and the ownership of bitcoins. The total supply of bitcoins is limited to 21 million, which is expected to be reached around the year 2140. Bitcoin's price is highly volatile, and it has experienced numerous boom and bust cycles over the years.
Illustration by TradingView
May 232023
BTC/USD: Bitcoin’s Activity Level Might be Growing, But its Active Wallets Are Not
- The number of daily Bitcoin transactions grew by 89% from mid April to mid May this year.
- However the number of active BTC wallets is falling rapidly, indicating that Bitcoin’s increasing fees are discouraging activity for some users.
- The price movements of Bitcoin and Ethereum are also becoming increasingly non-correlated.
Due to the recent BRC-20 craze, activity on the Bitcoin blockchain has been on the rise. This year, from mid April to mid May, the 7 day moving average for daily transactions occurring on Bitcoin has surged from 309,000 to 586,000 – marking an 89% increase in just a month.
Native solutions for both NFTs and issuable tokens on the Bitcoin network have been spurring on the activity, however both of these technologies were implemented very recently and are still in an experimental phase.
Despite the increasing number of transactions however, analysts have noted that the number of active Bitcoin wallets has actually been falling significantly since the middle of April. In fact, the number of Bitcoin wallets to either send or receive funds have reached their lowest point since the summer of 2021. Some have also linked this to the hype surrounding BTC NFTs (or Ordinals) and BRC-20s – both of which have been contributing to rising fees for interacting with the network.
A new era for Bitcoin?
In another event not seen since 2021, Bitcoin has now reached its weakest correlation with Ethereum since two years ago. At a correlation of 77% last week, the two largest cryptocurrencies in the world are no longer following along the same movements as they were for most of last year. Analysts have chalked this up to investors considering Ethereum to be an emerging market after its transition to PoS, and Bitcoin increasingly being viewed as a hedge asset.
(About Bitcoin)
Bitcoin is the original decentralized digital currency that was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. It operates on a decentralized peer-to-peer network, meaning that transactions can occur directly between users without the need for intermediaries like banks. Bitcoin uses cryptography to secure transactions and to control the creation of new units of the currency. Transactions are recorded on a public ledger called the blockchain, which allows anyone to verify the validity of a transaction and the ownership of bitcoins. The total supply of bitcoins is limited to 21 million, which is expected to be reached around the year 2140. Bitcoin's price is highly volatile, and it has experienced numerous boom and bust cycles over the years.
Unsplash+
May 192023
BTC/USD: Bitcoin Price Stabilizes After Revisiting $26,000 Area
The original digital asset appears to be cranky amid growing hopes of a US debt-ceiling deal.- The price of Bitcoin (BTC) found little support on Thursday as bears pressured the leading token to levels near $26,000 a piece. Bitcoin finished the session down roughly 3% as US policymakers signaled they are approaching a possible deal on lifting the debt ceiling and avoiding economic mayhem. Early on Friday, the price stabilized near $27,000 per coin.
- Halfway through Q2, crypto enthusiasts are struggling to sustain Bitcoin’s solid rebound from Q1. For the first quarter, the original crypto asset gained a hefty 70%, eclipsing the returns of virtually every large cap asset out there. Since its yearly peak a month ago, Bitcoin has erased about 14% of its value.
- On the bright side, the novel asset class has managed to avoid large-scale collapses akin to those witnessed last year. Has the crypto market emerged from a troublesome year of bankruptcies and false promises? And is it time for it to find its feet again? One can only hope.
Mariia Shalabaieva / Unsplash
May 162023
BTC/BTC: Bitcoin Cash (BCH) Prepares For Upgrade Allowing Token Issuance
- Bitcoin Cash has undergone an upgrade allowing tokens to be issued on the network.
- The upgrade also seeks to enable DeFi applications on the fork of Bitcoin, and increase transaction speeds.
- The upgrade was likely implemented as a result of the recent hype surrounding Bitcoin’s BRC-20 tokens.
One of Bitcoin’s most well known forks, Bitcoin Cash (BCH), has undergone a hard fork of its own – which allows users to issue tokens on the Bitcoin Cash blockchain. The upgrade, dubbed ‘CashTokens’ took place at noon UTC yesterday, and has also made the necessary changes for decentralized finance applications (or dApps) to be deployed on the network.
Another touted feature of the upgrade is reduction of transaction sizes, which will theoretically allow transactions to be handled more quickly – resulting in faster transaction speeds. Bitcoin Cash, is a fairly well-established chain in the crypto world – having been born out of a fork of Bitcoin in 2017. Its token, BCH, jumped by almost 3% yesterday due to the update and has risen by 22% since the start of the year. Although BCH is still significantly down from its highs in 2017.
Why’s this update taking place now?
A likely cause for the new update is the excitement surrounding BRC-20 tokens – an emerging and experimental form of token which attempts to emulate the functionality of Ethereum’s ERC-20 tokens, but on the Bitcoin network instead. Several BRC-20 tokens have been skyrocketing in value since being released, and Bitcoin Cash may be looking to capitalize on the Bitcoin-token boom while it remains.
(About Bitcoin Cash)
Bitcoin Cash (BCH) is a decentralized digital currency that emerged as a result of a hard fork from the original Bitcoin blockchain in August 2017. It was created with the intention of addressing some of the scalability issues faced by Bitcoin and providing faster, cheaper transactions for users. Bitcoin Cash shares many similarities with Bitcoin, including its decentralized nature and the use of blockchain technology. However, it differs in a few key aspects. One notable difference is the increased block size limit, with Bitcoin Cash allowing for larger block sizes (currently 32MB) compared to Bitcoin's 1MB limit. This larger block size enables Bitcoin Cash to process more transactions per block, potentially leading to faster and more scalable transactions.
regularguy.eth / Unsplash
Apr 272023
BTC/USD: Fresh Concerns for Banking Sector Sends BTC Back Over $30,000
- Bitcoin managed to break through the $30,000 again yesterday in a positive sign for the space.
- The price rally was caused in part by renewed concerns for the banking sector brought about by First Republic’s share price.
- Analysts have conflicting views on whether 2023 will continue to be a year of resurgence for the market.
Bitcoin bulls seem to be feeling more confident, after BTC managed to surpass the $30,000 mark again yesterday. Since yesterday however, its price has dipped back below $29,000. In the first major downturn of the market recovery since the start of 2023, crypto prices had been slipping downwards last week after hinting by the Fed that more interest rate hikes could be on the way. BTC had met resistance near the $31,000 mark.
The causes for the renewed optimism are varied, but one of the strongest influences is renewed concerns for the banking sector. Since the beginning of the week, shares in First Republic Bank have further plummeted by 60% – meaning that its share price has now fallen by over 95% YTD. The bank had reported a major slump in deposits and more than $100bn of outflows in the first quarter, which had investors spooked. As a result, investor interest in hedge assets like Bitcoin increased on fears that the instability could continue.
Is the coast clear for a market recovery?
The question on everyone’s minds now is whether 2023 will continue to be a year of resurgence for the crypto market. Things are looking positive, but some analysts including those at Morgan Stanley have said that considerable selling pressure is continuing to weigh down on the sector.
Others however have had more optimistic predictions. British bank Standard Chartered has said that it believes this crypto winter will be the last one we ever see, as increasing regulation will make dramatic “boom and bust” cycles less pronounced. Some predictions have BTC reaching a price of $45,000 before the end of the year, but uncertain economic conditions will likely contribute to its volatility as the year progresses.
(About Bitcoin)
Bitcoin is the original decentralized digital currency that was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. It operates on a decentralized peer-to-peer network, meaning that transactions can occur directly between users without the need for intermediaries like banks. Bitcoin uses cryptography to secure transactions and to control the creation of new units of the currency. Transactions are recorded on a public ledger called the blockchain, which allows anyone to verify the validity of a transaction and the ownership of bitcoins.The total supply of bitcoins is limited to 21 million, which is expected to be reached around the year 2140. Bitcoin's price is highly volatile, and it has experienced numerous boom and bust cycles over the years.
Mariia Shalabaieva / Unsplash
Apr2023
BTC/USD: Bitcoin Bulls Meet Resistance near $31,000, Long Positions Liquidate
- Bitcoin has been slipping downwards along with the wide crypto market over the past week.
- The downward can be largely attributed to the meeting of the Fed and their hinting at further rate hikes.
- If the sell off continues, April will become the first month this year where BTC’s price fell overall.
After a bullish rally since the start of the year, BTC has met significant resistance at the $31,000 mark, and fell under $28,000 before the weekend. As well as Bitcoin, Ethereum also faced major resistance at around the $2,100 mark – falling by more than 12% last week. It seems that the bull run of 2023 might have some obstacles to overcome if it is to continue.
Aside from the two largest cryptocurrencies facing headwinds, the total market cap of the crypto space has fallen to under $1.15tn, despite having peaked at around $1.26tn this month. In a single day last week, $253m worth of long positions were liquidated as crypto values plummeted. Analysts are also noting that crypto trading volumes are decreasing – with April exchange volumes expected to come in substantially lower than the $984bn recorded in March.
What’s causing the Bitcoin sell off?
One of the main causes of the sell off is the policy of the federal reserve. At their most recent meeting, officials hinted at the likelihood of another quarter basis point interest rate hike in May. Without a turnaround soon, April will become the first month of 2023 over which BTC logged a net drop in price.
The other factor is the fact that 2023’s rally across the crypto space is being viewed by some as premature and is being tested by those with more pessimistic outlooks for the market. The release of the UK inflation report, which showed it to be remaining extremely high, also seems to correlate to the timing of the start of the sell off. So far however, 2023 is looking more promising for the crypto market than the end of 2022.
(About Bitcoin)
Bitcoin is the original decentralized digital currency that was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. It operates on a decentralized peer-to-peer network, meaning that transactions can occur directly between users without the need for intermediaries like banks. Bitcoin uses cryptography to secure transactions and to control the creation of new units of the currency. Transactions are recorded on a public ledger called the blockchain, which allows anyone to verify the validity of a transaction and the ownership of bitcoins.The total supply of bitcoins is limited to 21 million, which is expected to be reached around the year 2140. Bitcoin's price is highly volatile, and it has experienced numerous boom and bust cycles over the years.
Shubham Dhage/ Unsplash
Apr 122023
BTC/USD: Bitcoin Breaks Through the $30k Mark in Bullish Sign for Market Recovery
- Bitcoin managed to break through the key resistance point of $30,000 yesterday.
- Concerns surrounding the banking sector have been playing a role in the coin’s resurgence.
- Some analysts have predicted that BTC is likely to continue its upward trajectory as the year progresses.
Return of the Bitcoin bulls
Bitcoin managed to break through the $30,000 mark yesterday, for the first time since June last year. The $30k level had been a point of resistance for the world’s largest cryptocurrency, as the market battled to recover from its downfall last year which had been worsened by the collapse of FTX in November.
BTC investors are beginning to feel slightly more optimistic about the potential for the US Federal Reserve to ease up on the raising of interest rates as the year progresses. A slowdown in economic growth in traditional finance markets also seems likely to add further fuel to Bitcoin’s rally as investors turn to hedge assets amid economic uncertainty.
What’s causing the rise?
BTC has been on a roll since the beginning of the year and has been taking the wider crypto market along with it. Bitcoin has already logged an 81% gain since the year began, and analysts suspect that 2023 might hold further upside for the cryptocurrency.
The collapse of Silicon Valley Bank, the acquisition of Credit Suisse by UBS, and subsequent concerns surrounding the banking sector have been playing a role in BTC’s resurgence as a potential safe haven asset from factors affecting traditional finance.
Another factor contributing to optimism in the crypto market is signs that inflation is starting to ease up – allowing investors to make more speculative investments. And with $35bn having been added to crypto’s market cap since the start of the week, it would seem that the confidence in the sector is beginning to be restored.
Hans Eiskonen / Unsplash
Mar 282023
BTC/USD - Michael Saylor’s MicroStrategy Doubles Down on Bitcoin Bet, Holdings Reach $4bn
- Michael Saylor’s MicroStrategy has acquired around 6.5k BTC for a price of around $150m over the last month.
- The business intelligence company now holds more than $4.14bn worth of Bitcoin.
- Despite a 74% share price gain YTD, MicroStrategy reported a nearly $250m loss for last quarter.
As Bitcoin begins to increasingly show signs of bullishness, some investors are beginning to think that its current price of around $27k means the world’s biggest cryptocurrency is undervalued. And one such company that’s increasing its exposure to the coin is Microstrategy – the crypto-centric business intelligence company founded by ‘Bitcoin maxi’ Michael Saylor. Let’s take a look at their position and how they’ve been doing recently.
Digital gold
Microstrategy has acquired 6,455 BTC over roughly the past month, at a total cost of around $150m. The purchase brings the value of its total Bitcoin holdings to a whopping $4.14bn – at an average purchase price of $23.2k. It also paid $161m to repay a loan it received from now-collapsed crypto-friendly bank Silvergate, for which the funds were sourced from a $340m share-sale. Microstrategy was founded in 1989, but has achieved mainstream recognition in recent years due to its nature as a major advocate for Bitcoin and its large financial bets on the coin.
How is MicroStrategy holding up?
Like those of most crypto-centric companies at the moment, MicroStrategy’s balance sheet has seen better days. Last month, the company reported a Q4 2022 loss of almost $250m, which was significantly worse than the $90m loss it reported the same quarter a year prior. But the Nasdaq listed company has also been having a pretty positive first quarter of the year, with its share price gaining more than 74% YTD. Probably as a result of Bitcoin seeing gains of 63% over the same period. If Bitcoin continues to follow its bullish trend as the banking sector wobbles, Micro”Strategy” might have a winning one.
Illustration by TradingView
Mar 212023
BTC/USD: Bitcoin Futures Interest Surges as Bulls Return to the Market
- Bitcoin seems to be back on a bullish trend as it reached $28k after breaking through resistance at $25k.
- Interest in Bitcoin options is gathering momentum and has reached a new yearly high.
- Uncertainty in the banking sector is making BTC an increasingly attractive asset to investors.
The Bitcoin community suffered over the course of 2022 along with most of the crypto world, and many have been wondering when the bulls would return. Over the past two weeks however, there have been signals that BTC may have somewhat shaken off its reputation as a high-risk asset. Not least because the banking sector is beginning to look a little risky itself.
Bring in the bulls
Over the past week, Bitcoin has seen fairly impressive growth – logging a 15% increase in price. The total market cap of the crypto space has also added 8% – now sitting at an impressive $1.125tn. Bitcoin in particular however seems to be in a particularly bullish phase. Having struggled to break through resistance at the $25k mark since it dropped below it in June last year, BTC has smashed through over the weekend to a price of $27.7k at the time of writing.
Interest in Bitcoin futures has also been on the rise, with the amount of USD locked rising by 7% over the past month to a total of roughly $12bn – a new yearly high. Market sentiment of Bitcoin seems now to be markedly more positive than it was at the beginning of last year.
The banking crisis
An important factor for the increased interest in Bitcoin seen recently is uncertainty surrounding the banking sector. In the space of just a few weeks, several crypto-friendly banks including Silvergate entered liquidation, investment bank Silicon Valley Bank collapsed in the second largest bank failure in US history, and Credit Suisse has had to seek emergency funding from UBS.
Because of this crisis, Bitcoin’s principles of self-custody and decentralization are making BTC seem like a safe bet for investors amid market uncertainty. Stablecoins too are beginning to look uncertain amid increased regulatory scrutiny. This may also be contributing to increased inflows to the largest cryptocurrency by market cap as a more stable alternative.
Larry Costales / Unsplash
Mar 082023
BTC/USD: Analysts Fear Bitcoin Death Cross Could Spell Trouble
- A Bitcoin death cross has appeared which typically signifies a bearish short-term outlook.
- Crypto confidence has also been shaken by concerns surrounding crypto bank Silvergate.
- Some analysts have pointed out that death crosses can be an unreliable signal.
An ominous signal for Bitcoin has emerged recently, and it has investors worried that there could be trouble ahead for the world’s largest cryptocurrency. BTC has been faring fairly well since the start of the year with a 33% rally after the collapse of FTX prompted a sell off. How long this rally is to continue however, remains to be seen.
What’s the big deal?
A death cross involves an asset’s 50-day moving average moving below its 200-day moving average. It typically indicates a bearish short-term outlook due to sustained selling pressure. A Bitcoin death cross also occurred before the wider crypto market’s price crash of 2017-2018. However some say that death crosses are an unreliable signal of an impending sell off. Many of the death crosses which have appeared in the S&P 500 over the years have seen average gains outweighing average losses in the following weeks.
What’s causing the death cross?
BTC has already suffered a 5% drop amid concerns surrounding the capitalization of Silvergate crypto bank – concerns which even the White House has echoed. And if crypto bears were looking for further reason to sell their assets – this would be it. It’s not just concerns in the crypto industry causing the bearishness either. Bitcoin met significant resistance at the $25k mark in mid February, and Jerome Powell’s testimony on the Fed’s monetary policy yesterday, where he stated his belief that inflation could climb higher, caused further investor panic. Volatility, however, is something that Bitcoin investors are no stranger to.
Michael Förtsch / Unsplash
Mar 012023
Bitcoin Dominance: BAYC Creators Move Into BTC NFTs, but Can the Hype Last?
- The creators of BAYC have released their own BTC NFT project powered by Bitcoin Ordinals.
- The number of BTC Ordinals inscriptions has surpassed 200k.
- NFT enthusiasts are wondering whether Bitcoin NFT hype can be sustained.
Recently, the NFT market has been showing some pretty strong signs of recovery. Gas fees for NFT-related Ethereum smart contracts have risen by 97% over the past two months. But the development that’s being talked about more in the space is Bitcoin Ordinals – NFT-esque inscriptions on the Bitcoin blockchain which just got an endorsement from a major name in NFTs.
Yuga Labs enters the game
Yuga Labs (the creators of the hugely popular Bored Ape Yacht Club collection) have dipped their toes in the BTC Ordinals space, with a 300-piece NFT collection called TwelveFold. It’s a smaller number of items than Yuga’s collections normally hold, as BTC inscriptions cannot be created in large batches as they can with Ethereum NFTs. Whether its success will reach the same heights as the BAYC remains to be seen, but it’s certainly an endorsement of the Bitcoin NFT scene.
Will the Ordinals craze continue?
While BTC NFT’s have been rising in popularity since they were launched and the NFT space as a whole is showing signs of recovery, some are wondering where the success of BTC NFTs can be sustained. Bitcoin fees have been rising in tandem with the creation of BTC Ordinals – with the excitement peaking on February 15 when over $170k in inscription fees were paid. Since then however, the amount of fees being generated are starting to slip – reaching just $100k at the start of this week. This could be considered slightly concerning for the future of the technology.
On the other hand, the technology’s popularity might be ensured by its relevance to other blockchains. Ordinals have been implemented into Litecoin, and Bitcoin layer 2 chains such as Stacks have been pushing their compatibility with Ordinals with plans for BTC NFT wallets and projects. As for BTC itself, the coin has remained fairly flat with a 1.7% gain over the past month. However, when the NFT space is ready to return to its market highs Ethereum may have found itself new competition.
Yiğit Ali Atasoy / Unsplash
Feb 222023
Bitcoin dominance: Ordinals are Taking the NFT Space and the Crypto World by Storm.
- Ordinals gives Bitcoin(BTC) increased compatibility for NFTs, and its popularity has been on the rise.
- The excitement has been spilling over into Bitcoin layer 2 tokens like Stacks(STX).
- Ethereum(ETH) NFT trading volumes have been surging over the past week.
Despite the indisputable BTC dominance of the crypto space, the OG crypto has never been the most compatible blockchain for NFTs – Ethereum’s greater level of smart contract compatibility certainly makes it the preferable. However, some believe that this could be about to change – thanks to a new protocol called Ordinals. Which allows images, audio and more to be inscribed on a transaction on the Bitcoin blockchain.
What’s the big deal?
Although Ordinals was in fact launched weeks ago, its popularity has been sweeping through the cryptoverse – with over 150k Bitcoin NFTs (or “inscriptions” as they are being called) created already. The technology was also made available on the Litecoin network – a popular cryptocurrency originally birthed through a fork of Bitcoin. Despite the rising popularity of Ordinals, some Bitcoin “purists” have argued that it dilutes the network from its purpose as a storage of wealth.
The aspect of Ordinals which is causing all the hype is the fact that, unlike NFTs, there is no need for a token. Ordinals allow images and audio to be “inscribed” directly onto Satoshis – the smallest denomination of BTC. Some developers however have pointed out that it may take time for the usability of Originals to reach the quality as that of NFTs on Ethereum(ETH) and Solana(SOL) – both of which have been tweaking their NFT technology for years.
What has the effect been so far?
The excitement has caused some tokens related to enhancing Bitcoin’s DeFi capabilities to rise rapidly. One such token is Stacks. Despite remaining down significantly from its all-time high of $2.90 in December 2021, the project’s STX token has surged by almost 100% since Friday – now sitting at a price of $0.66. It’s also not just Bitcoin NFTs that have been taking off recently. The past week has seen Ethereum NFT trading volumes more than double as OpenSea alternative, Blur, attracts users with its generous rewards model. Could these be the first signs of a recovery for the NFT space?
愚木混株 cdd20 / Unsplash
Jan 312023
Bitcoin gets difficult
As if it wasn’t already hard enough, Bitcoin is now harder to mine than it’s ever been.- Bitcoin mining difficulty reached a new all-time high after jumping by 4.68% on Sunday. Mining difficulty is the amount of computational power that’s needed to facilitate transactions on the Bitcoin network. A higher difficulty indicates a larger number of BTC miners.
- While not at an all-time high, the network's hash rate is also up over the course of last year. Bitcoin’s hash rate (which measures the volume of proof-of-work calculations being carried out), has rocketed by 67% YoY.
- These stats might indicate that BTC miners aren’t losing faith, despite BTC falling by 40% over the past year. In addition to the price drop, rising energy costs have been squeezing the industry. The bankruptcy of BTC mining giant, Core Scientific, in December probably didn’t help morale either. Hang in there guys.
愚木混株 cdd20 / Unsplash
Jan 272023
Bitcoin bruises Tesla
Tesla remains in its pro-Bitcoin stance, but it’s not doing its balance sheet any favors.- Tesla reported a $34m impairment charge on its Bitcoin holdings over Q4 , with the value of its supply dropping from $218m to $184m. As it stands BTC is up 38% YTD despite being down 38% YoY.
- The company got serious about BTC in February 2021 when it purchased $1.5bn worth. By the second quarter of 2022 however, it had sold 75% of its Bitcoin holdings – with its digital assets sales for the period amounting to $936m.
- Despite the selloff, Tesla remains the fifth-largest public company that holds Bitcoin with roughly 10.7k BTC. It also reported that it had neither purchased nor sold any BTC during its final quarter last year – indicating that it’s in it for the long run.
Manny Becerra / Unsplash
Jan 162023
Trading blows
The battle between Grayscale and the SEC rages on, with Grayscale making their position crystal clear.- Crypto investment firm Grayscale Bitcoin Trust has called the SEC’s argument “illogical”, in its decision to not allow the company to open a Bitcoin spot ETF. The litigation first began in June last year.
- The SEC is maintaining that the $7.8bn company has not shown how it would protect investors from “fraudulent and manipulative” practices. That being said however, the SEC has approved Bitcoin-based ETFs for the company, but not spot Bitcoin ETFs.
- The statement comes as the discount for Grayscale’s Bitcoin futures ETF is hovering around all-time highs – sitting at around 39.68%. Recently however, its share price has been reaping the rewards of the recent crypto rally – rising by over 30% last week.
Tingey Injury Law Firm / Unsplash
Jan 032023
Unfair to the core
One of the longest running contributors to Bitcoin Core has suffered a hack. All is fair in love and crypto, it seems.- Luke Dashjr, a developer of the software which operates Bitcoin nodes, has suffered a hack to the tune of at least 217 BTC – worth around $3.6m. Dashjr said that the hack was the result of his private key being compromised.
- The hack was high profile enough for Binance CEO, Changpeng Zhao, to reach out – tweeting that if the funds are ever sent to Binance they will be frozen. He also said that the hack highlights some of the risks of having a self-custody wallet.
- Dashjr also warned that users should refrain from using Bitcoin Knots – a Bitcoin wallet which is operated using his now-compromised key. It just goes to show that even crypto veterans can fall victim to crypto crime. Keep those keys safe folks.
Unsplash
Dec 072022
Too difficult for some
Bitcoin miners haven’t exactly been thriving this year – with some deciding it’s no longer worth the time.- Bitcoin mining difficulty has fallen by 7.5% in the single biggest drop since it plummeted by almost 28% when crypto mining was banned in China in July 2021. The lowered difficulty and resulting cheaper operating costs might provide miners with some welcome breathing room.
- It’s not a great sign though, as it means that BTC miners are starting to unplug their machines. A combination of rising energy prices and a diminished BTC price has caused mining profitability to slide and debts to begin to accumulate.
- There’s also been an influx of mining machines hitting the market, with the average price of an ASIC mining machine dropping by 80% YoY. With Ethereum having switched to proof-of-stake this year, crypto miners seem to be running out of good options.
Muhammad Asyfaul/ Unsplash
Nov 222022
Investors are jittery af
Bitcoin’s been taking a beating this year, and it’s only being made worse by news of a crypto lender in trouble.- Bitcoin HODLers are on the edge of their seats with the potential bankruptcy of Genesis. Whilst not yet having filed for bankruptcy, news of the possibility caused BTC to drop to $15,479 – its lowest level in two years. Binance has also ruled out a potential buyout of the lender.
- These are dark days for BTC investors, with most addresses now in the red. Data by IntoTheBlock shows that 51% of total Bitcoin addresses are below the purchasing value of their holdings, with pandemic-related gains looking like a thing of the past.
- Bitcoin miners aren’t faring any better. A perfect storm of rising electricity costs and plummeting BTC price means that mining is barely profitable – if at all. With Genesis in “constructive talks” with several creditors, perhaps a buyout would ease Bitcoiners’ concerns.
愚木混株 cdd20 / Unsplash
Nov 092022
A 2-year low
The entire crypto industry has been rattled by a series of unfortunate events that would make Lemony Snicket proud, causing catastrophic waves across the market.- Bitcoin has reached its lowest price in almost two years, currently below $18k. Ethereum touched a four-month low and is trading at a price of just $1,220. Crypto stocks like exchange Coinbase and crypto miner Riot Blockchain also suffered yesterday, dropping by 10.7% and 7.3% respectively.
- There’s a variety of factors causing crypto’s most recent slump, including newly released CPI data leaving investors spooked and uncertainty surrounding the result of the midterm elections which could determine upcoming regulation.
- What’s really shaken up the industry however is FTX being bought by Binance, and fears of contagion spreading from the platform’s liquidity issues. Dogecoin dropped by 20% yesterday and Solana plummeted more than 50% since the start of the week with pretty much every coin seeing drastic sell-offs and sending the overall crypto market cap into its worst week since mid-June.
Ussama Azam / Unsplash