Despite Historic Crash, Most Bitcoin Investors Still in Profit: Report
Only new investors are losing out from last week’s sell-off, data shows.
Bitcoin suffered a massive sell-off last week.
But Glassnode data shows that most "entities" are still in profit.
This is because the sell-off was largely caused by new investors panic-selling, and not long-term holders.
The Bitcoin market just suffered one of the worst crashes in its 12-year history. And yet, despite the massive drawdown over the last several days, most Bitcoin investors are still in the profit.
While it’s true that the crash can be partly blamed on panic selling, most long-term holders aren’t up for flogging their coins, according to blockchain analysis company Glassnode, whose latest figures show that 73.17% of all Bitcoin “entities” are still in the black.
An “entity” is defined by Glassnode as a cluster of addresses that are controlled by the same network entity. In a report released this week, the firm noted that “The Bitcoin market has just experienced the largest deleveraging event since the March 2020 sell-off”—but when it was all said and done, the coin holders at a loss are “largely buyers from the last 3-4 months.”
In other words, even though Bitcoin is currently trading at almost half its all-time high price of around $64,000, most investors got in well before current levels of around $37,000.
“During this capitulation sell-off, however, the spending of 1y-3y old coins was actually significantly less and declining as a proportion of total activity,” the report added. “This suggests that old hands did not panic sell nor rush for the exits.”
Data shared with Decrypt also showed that during the sell-off, the amount of big whales—wallets holding 10,000 or more Bitcoin ($382 million-worth of the cryptocurrency)—also increased from 85 to 90, meaning big time investors saw this as an opportunity to snap up more Bitcoin.
Still, there’s no denying that last week was a tough one for Bitcoin. A combination of factors ranging from Elon Musk tweets to China regulatory news helped send the largest cryptocurrency by market cap crashing. Last week, it touched as low as $30,000 per coin—52% lower than it’s all-time high reached in April.
All in all, however, the data appears to indicate that it was primarily people who are still very new to crypto investing that were shaken out of the market. “There is no question that a large portion of the recent spending activity was driven by short term holders, those owning coins purchased within the last 6 months,” Glassnode said.
Maybe there’s something to be said for those “diamond hands” after all.
Only new investors are losing out from last week’s sell-off, data shows.
Bitcoin suffered a massive sell-off last week.
But Glassnode data shows that most "entities" are still in profit.
This is because the sell-off was largely caused by new investors panic-selling, and not long-term holders.
The Bitcoin market just suffered one of the worst crashes in its 12-year history. And yet, despite the massive drawdown over the last several days, most Bitcoin investors are still in the profit.
While it’s true that the crash can be partly blamed on panic selling, most long-term holders aren’t up for flogging their coins, according to blockchain analysis company Glassnode, whose latest figures show that 73.17% of all Bitcoin “entities” are still in the black.
An “entity” is defined by Glassnode as a cluster of addresses that are controlled by the same network entity. In a report released this week, the firm noted that “The Bitcoin market has just experienced the largest deleveraging event since the March 2020 sell-off”—but when it was all said and done, the coin holders at a loss are “largely buyers from the last 3-4 months.”
In other words, even though Bitcoin is currently trading at almost half its all-time high price of around $64,000, most investors got in well before current levels of around $37,000.
“During this capitulation sell-off, however, the spending of 1y-3y old coins was actually significantly less and declining as a proportion of total activity,” the report added. “This suggests that old hands did not panic sell nor rush for the exits.”
Data shared with Decrypt also showed that during the sell-off, the amount of big whales—wallets holding 10,000 or more Bitcoin ($382 million-worth of the cryptocurrency)—also increased from 85 to 90, meaning big time investors saw this as an opportunity to snap up more Bitcoin.
Still, there’s no denying that last week was a tough one for Bitcoin. A combination of factors ranging from Elon Musk tweets to China regulatory news helped send the largest cryptocurrency by market cap crashing. Last week, it touched as low as $30,000 per coin—52% lower than it’s all-time high reached in April.
All in all, however, the data appears to indicate that it was primarily people who are still very new to crypto investing that were shaken out of the market. “There is no question that a large portion of the recent spending activity was driven by short term holders, those owning coins purchased within the last 6 months,” Glassnode said.
Maybe there’s something to be said for those “diamond hands” after all.
Lack of knowledge is main barrier to crypto adoption, new survey says
55% of survey respondents said that they were aware of crypto despite never owning or using cryptocurrencies.
Among the many complications associated with cryptocurrencies like Bitcoin (BTC), a lack of knowledge and understanding of crypto is the biggest obstacle for wider adoption, according to a new survey.
The Economist Intelligence Unit, the research and analysis division of the Economist Group, released a new report called “Digimentality 2021.”
The study was commissioned by major payment and cryptocurrency platform Crypto and contains a consumer survey of 3,053 people conducted from February to March 2021.
According to survey results, 51% of respondents said a lack of knowledge is the main barrier to the adoption of open-source cryptocurrencies like Bitcoin and Ether (ETH), while 34% of survey participants cited security concerns as the main obstacle, and 29% indicated difficulties in knowing where to buy crypto.
In terms of crypto acceptance by institutional investors and corporate treasuries, 47% of respondents said that overall market trust or understanding of digital currencies was the biggest adoption obstacle. Some 32% of survey takers cited cryptocurrency regulations as a primary obstacle to wider institutional acceptance, while 43% and 36% said financial market structures and asset volatility were the foremost obstacle, respectively.
The survey also stated that 55% of respondents were aware of cryptocurrencies despite never owning or using them. “As more people adopt and have access to digital wallets, you can just see the number who have access and invest in cryptocurrencies continues to broaden,” Goldman Sachs global head of digital assets Mathew McDermott said in the report.
According to a recent survey by Gemini crypto exchange, nearly two-thirds of adults in the United States are interested in learning more about cryptocurrencies or holding them soon.
55% of survey respondents said that they were aware of crypto despite never owning or using cryptocurrencies.
Among the many complications associated with cryptocurrencies like Bitcoin (BTC), a lack of knowledge and understanding of crypto is the biggest obstacle for wider adoption, according to a new survey.
The Economist Intelligence Unit, the research and analysis division of the Economist Group, released a new report called “Digimentality 2021.”
The study was commissioned by major payment and cryptocurrency platform Crypto and contains a consumer survey of 3,053 people conducted from February to March 2021.
According to survey results, 51% of respondents said a lack of knowledge is the main barrier to the adoption of open-source cryptocurrencies like Bitcoin and Ether (ETH), while 34% of survey participants cited security concerns as the main obstacle, and 29% indicated difficulties in knowing where to buy crypto.
In terms of crypto acceptance by institutional investors and corporate treasuries, 47% of respondents said that overall market trust or understanding of digital currencies was the biggest adoption obstacle. Some 32% of survey takers cited cryptocurrency regulations as a primary obstacle to wider institutional acceptance, while 43% and 36% said financial market structures and asset volatility were the foremost obstacle, respectively.
The survey also stated that 55% of respondents were aware of cryptocurrencies despite never owning or using them. “As more people adopt and have access to digital wallets, you can just see the number who have access and invest in cryptocurrencies continues to broaden,” Goldman Sachs global head of digital assets Mathew McDermott said in the report.
According to a recent survey by Gemini crypto exchange, nearly two-thirds of adults in the United States are interested in learning more about cryptocurrencies or holding them soon.
Billionaire Carl Icahn Mulls Over Diving Into Cryptocurrency in a 'Big Way' With About $1.5 Billion Investment
Billionaire investor Carl Icahn, the founder of Icahn Enterprises, says that his company is exploring how to get involved in cryptocurrency “in a relatively big way,” which he said could be an investment of about $1.5 billion.
Carl Icahn Exploring Getting Into Cryptocurrency
Carl Icahn, the founder and controlling shareholder of Icahn Enterprises, a diversified conglomerate holding company based in New York City, revealed his cryptocurrency plan in an interview with Bloomberg on Wednesday. He said:
I’m looking at the whole business and how I can get involved in it with Icahn Enterprises in a relatively big way because I think, it’s here to stay in one form or another.
Icahn is one of Wall Street’s most successful investors. In 1678, he formed Icahn & Co., a securities firm focusing on arbitrage and options trading. In 1978, he began taking substantial positions in individual companies, including RJR Nabisco, Texaco, Phillips Petroleum, Western Union, Gulf & Western, Viacom, Uniroyal, Dan River, Marvel, Revlon, Fairmont, Time Warner, Yahoo, Lions Gate, CIT, Motorola, Genzyme, Biogen, Chesapeake Energy, El Paso, Amylin Pharmaceuticals, Lawson Software, Medimmune, Dell, Netflix, Forest Laboratories, Apple, and eBay.
The billionaire investor was asked specifically what a “relatively big way” means for him and his company. He described:
A big way for us would be a billion dollars, a billion and a half dollars, something like that. That would be sort of a big way, I guess, for us. But sometimes we go bigger than that, sometimes a lot smaller. I'm not going to say exactly.
Icahn further clarified: “To be clear, we have never bought any cryptocurrency, but we are studying it.”
The billionaire noted that many cryptocurrencies out there are overvalued in his view. He opined: “Much of the cryptocurrency issued today will not survive, but we believe cryptocurrency in one form or another might be here to stay.”
Billionaire investor Carl Icahn, the founder of Icahn Enterprises, says that his company is exploring how to get involved in cryptocurrency “in a relatively big way,” which he said could be an investment of about $1.5 billion.
Carl Icahn Exploring Getting Into Cryptocurrency
Carl Icahn, the founder and controlling shareholder of Icahn Enterprises, a diversified conglomerate holding company based in New York City, revealed his cryptocurrency plan in an interview with Bloomberg on Wednesday. He said:
I’m looking at the whole business and how I can get involved in it with Icahn Enterprises in a relatively big way because I think, it’s here to stay in one form or another.
Icahn is one of Wall Street’s most successful investors. In 1678, he formed Icahn & Co., a securities firm focusing on arbitrage and options trading. In 1978, he began taking substantial positions in individual companies, including RJR Nabisco, Texaco, Phillips Petroleum, Western Union, Gulf & Western, Viacom, Uniroyal, Dan River, Marvel, Revlon, Fairmont, Time Warner, Yahoo, Lions Gate, CIT, Motorola, Genzyme, Biogen, Chesapeake Energy, El Paso, Amylin Pharmaceuticals, Lawson Software, Medimmune, Dell, Netflix, Forest Laboratories, Apple, and eBay.
The billionaire investor was asked specifically what a “relatively big way” means for him and his company. He described:
A big way for us would be a billion dollars, a billion and a half dollars, something like that. That would be sort of a big way, I guess, for us. But sometimes we go bigger than that, sometimes a lot smaller. I'm not going to say exactly.
Icahn further clarified: “To be clear, we have never bought any cryptocurrency, but we are studying it.”
The billionaire noted that many cryptocurrencies out there are overvalued in his view. He opined: “Much of the cryptocurrency issued today will not survive, but we believe cryptocurrency in one form or another might be here to stay.”
Executives from China's Largest Bitcoin Mining Firms Speak About Regulatory Crackdown
During the course of the week, the cryptocurrency community has been focused on China and the country’s Financial Stability Board detailing that it aims to crack down on the bitcoin mining sector. Following the statements from Chinese officials and a few crypto businesses abandoning services in the region, executives from some of China’s largest bitcoin mining companies have openly discussed the situation.
BTC top’s CEO: ‘If China Takes Regulatory Actions Against Crypto Mining, Then Major Chinese Manufacturers Will Sell Abroad
The million-dollar question right now is whether or not the Chinese government will continue to crack down on the crypto industry. It all started when Reuters published a report on May 18, that said: “China bans financial, payment institutions from cryptocurrency business.” Essentially the news publication said that “three financial industry associations” from China told financial institutions and payment processors “not to offer any crypto-related services.”
Services include “account openings, registration, trading, clearing, settlement, and insurance, reiterating the 2017 ban,” Reuters further noted in a follow-up explainer the next day. Then five days ago, regional reports detailed China’s 51st meeting of the Central Financial and Economic Affairs Commission, and the organization’s director, Liu He, discussed the bitcoin mining sector. Again, the Economic Affairs Commission and Financial Stability Board said it would crackdown on illegal bitcoin mining and monitor the sector.
Following the economic affairs meeting and statements from Liu He, Btc top’s CEO Jiang Zhuoer spoke about the situation. “According to the minutes of ‘China Financial Stability Board:’ We resolutely prevent and control financial risk…. we shall crackdown on Bitcoin mining and crypto trading activities in order to prevent individual risks from being spread to the social level,” Zhuoer said.
“From there, we can see that the main spirit of the meeting is to ‘prevent and control financial risks,’ to restrain social capital from flowing into the crypto mining sector which might lead to risks transferring from individuals to the whole society,” Zhuoer continued. “In other words, individual mining is and has always been allowed as long as you’re responsible for your own risks and profits, whilst the mining operated by financial capital might be [forbidden].”
Zhuoer also compared the minutes this year to what was said during the minutes’ definition declared back in 2013, which was repeated Zhuoer added. The BTC's top CEO spoke about September 4, 2017, that day the world watched China ban initial coin offerings (ICOs) and then the shut down of domestic crypto exchanges. As far as China’s bitcoin miners, Zhuoer says the guidelines may invoke some losses but it may not be as bad as most think.
“Large [datacenters] and major veteran miners may suffer a significant loss this time, while the whole Bitcoin network will be as resilient as always,” Zhuoer stressed. “The worst scenario would be: large datacenters are shut down and we go back to old days in 2014-15. Small miners install several miners at home; Medium miners set dozens of miners in a warehouse or a few hundred miners in a factory; Veteran miners find a small remote hydroelectric power plant and locate there a couple of thousand miners.”
The BTC top executive added:
In conclusion, bitcoin mining will exist as normal, except the mining in China will be shifted from industrial-size datacenters to home miners, small or medium-sized miners. The entire Bitcoin network will always be strong even [if] its hash rate [declines] by 50%.
During the course of the week, the cryptocurrency community has been focused on China and the country’s Financial Stability Board detailing that it aims to crack down on the bitcoin mining sector. Following the statements from Chinese officials and a few crypto businesses abandoning services in the region, executives from some of China’s largest bitcoin mining companies have openly discussed the situation.
BTC top’s CEO: ‘If China Takes Regulatory Actions Against Crypto Mining, Then Major Chinese Manufacturers Will Sell Abroad
The million-dollar question right now is whether or not the Chinese government will continue to crack down on the crypto industry. It all started when Reuters published a report on May 18, that said: “China bans financial, payment institutions from cryptocurrency business.” Essentially the news publication said that “three financial industry associations” from China told financial institutions and payment processors “not to offer any crypto-related services.”
Services include “account openings, registration, trading, clearing, settlement, and insurance, reiterating the 2017 ban,” Reuters further noted in a follow-up explainer the next day. Then five days ago, regional reports detailed China’s 51st meeting of the Central Financial and Economic Affairs Commission, and the organization’s director, Liu He, discussed the bitcoin mining sector. Again, the Economic Affairs Commission and Financial Stability Board said it would crackdown on illegal bitcoin mining and monitor the sector.
Following the economic affairs meeting and statements from Liu He, Btc top’s CEO Jiang Zhuoer spoke about the situation. “According to the minutes of ‘China Financial Stability Board:’ We resolutely prevent and control financial risk…. we shall crackdown on Bitcoin mining and crypto trading activities in order to prevent individual risks from being spread to the social level,” Zhuoer said.
“From there, we can see that the main spirit of the meeting is to ‘prevent and control financial risks,’ to restrain social capital from flowing into the crypto mining sector which might lead to risks transferring from individuals to the whole society,” Zhuoer continued. “In other words, individual mining is and has always been allowed as long as you’re responsible for your own risks and profits, whilst the mining operated by financial capital might be [forbidden].”
Zhuoer also compared the minutes this year to what was said during the minutes’ definition declared back in 2013, which was repeated Zhuoer added. The BTC's top CEO spoke about September 4, 2017, that day the world watched China ban initial coin offerings (ICOs) and then the shut down of domestic crypto exchanges. As far as China’s bitcoin miners, Zhuoer says the guidelines may invoke some losses but it may not be as bad as most think.
“Large [datacenters] and major veteran miners may suffer a significant loss this time, while the whole Bitcoin network will be as resilient as always,” Zhuoer stressed. “The worst scenario would be: large datacenters are shut down and we go back to old days in 2014-15. Small miners install several miners at home; Medium miners set dozens of miners in a warehouse or a few hundred miners in a factory; Veteran miners find a small remote hydroelectric power plant and locate there a couple of thousand miners.”
The BTC top executive added:
In conclusion, bitcoin mining will exist as normal, except the mining in China will be shifted from industrial-size datacenters to home miners, small or medium-sized miners. The entire Bitcoin network will always be strong even [if] its hash rate [declines] by 50%.
Bearish signals grow as Bitcoin price drops to $35K and traders ignore the dip
Bitcoin price hangs slightly above $35,000 while traders simply watch the dip from the sidelines.
The cryptocurrency market faced a new wave of selling pressure on May 28 as Bitcoin (BTC) price dropped to $35,100 and traders seem generally disinterested in buy the dip ahead of the weekend.
Despite the downside moves seen across the market over the past couple 2 weeks, institutional investors have for the most part held firm in their resolve to stay committed to cryptocurrencies but the absence of 'we bought the dip' announcements have retail traders wondering if Bitcoin price is in for further downside.
While some analysts see the possibility of Bitcoin falling as low as $20,000 as the worst case scenario, the overall price trajectory of BTC remains skewed to the upside with the weekly trend of higher lows still intact.
Bitcoin price hangs slightly above $35,000 while traders simply watch the dip from the sidelines.
The cryptocurrency market faced a new wave of selling pressure on May 28 as Bitcoin (BTC) price dropped to $35,100 and traders seem generally disinterested in buy the dip ahead of the weekend.
Despite the downside moves seen across the market over the past couple 2 weeks, institutional investors have for the most part held firm in their resolve to stay committed to cryptocurrencies but the absence of 'we bought the dip' announcements have retail traders wondering if Bitcoin price is in for further downside.
While some analysts see the possibility of Bitcoin falling as low as $20,000 as the worst case scenario, the overall price trajectory of BTC remains skewed to the upside with the weekly trend of higher lows still intact.
VORTECS Report: How volatility drove one crypto trading strategy to 280x Bitcoin's gains
While Bitcoin hodlers are seeing 2021's gains slowly diminish, one consistent crypto trading strategy has delivered over 3,000% since Jan 3 — and BTC isn't in the portfolio.
What does a highly volatile asset class offer traders, beyond palpitations and the occasional heart attack? Opportunity.
Nicole Wirick of Prosperity Wealth Strategies in Michigan summed it up for Forbes: “Market volatility is a normal part of investing and is to be expected in a portfolio. If markets went straight up, then investing would be easy and we’d all be rich.”
And during the decade-long bull market on Wall Street, some participants who should know better appear to have forgotten this, as they’ve become used to steadily-increasing stock prices over a period of years.
JPMorgan Chase CEO Jamie Dimon, who infamously referred to Bitcoin as a “fraud” in 2017, told the U.S. House Financial Services Committee this week that “My own personal advice to people is: stay away from it.” And yet at his own shareholder meeting on May 18, he said that “A lot of our clients are asking, ‘can we help them buy or sell cryptocurrency? And we're investing in that as we speak.”
So why is the CEO of the largest bank in the U.S. investing in something that he advises the rest of us not to touch?
Volatility is at the heart of that argument: It’s a classic case of “Do as I say, not as I do.” And Dimon, and many like him in traditional financial markets, make oodles of money when markets are choppy.
Of course, no markets are choppier than crypto.
Over the past few weeks, volatility has returned to the crypto markets, pushing Bitcoin as low as $30,000 before the king of digital assets swung back to exceed $40,000 again. And altcoins have swung even more dramatically — a phenomenon which has helped Cointelegraph Markets Pro’s quantitative algorithm, the VORTECS™ Score, to post extraordinary results in automated live testing.
This chart, produced on May 28 illustrates the results of the VORTECS™ Score’s performance since Jan 3 this year, when the algorithm went live. At the time of publication, one day later, the ROI on the top strategy is now over 3,000%.
In a score-based testing scenario, the algorithm “buys” a digital asset when the VORTECS™ Score crosses a certain threshold (e.g. 80), and “sells” it when it crosses a second threshold (e.g. 75).
Without employing fancy rebalancing techniques, but simply dividing the portfolio between all assets that currently require an investment, the algorithm has delivered a return of 3,037% for its highest-performing testing strategy — buying at 80, and selling when the asset crosses 80 again on the way back down.
For comparison, Bitcoin has generated returns of just 11.2% since Jan 3, and an evenly-weighted basket of the top 100 altcoins has returned 247%.
The only reason the VORTECS™ Score can deliver outsized returns like this is because crypto markets are volatile — which presents multiple entry and exit opportunities in a shorter timeframe than enjoyed by traders in traditional markets.
That may be partly a function of the 24/7 nature of crypto trading, but it’s also partly because the risk tolerance of cryptocurrency investors is generally agreed to be significantly higher than that of Wall Street CEOs… at least for short-term investing.
So while volatility has obvious downsides, including the risk of total and permanent loss, it also has major potential upside for traders who have strong research skills.
And strong research tools.
While Bitcoin hodlers are seeing 2021's gains slowly diminish, one consistent crypto trading strategy has delivered over 3,000% since Jan 3 — and BTC isn't in the portfolio.
What does a highly volatile asset class offer traders, beyond palpitations and the occasional heart attack? Opportunity.
Nicole Wirick of Prosperity Wealth Strategies in Michigan summed it up for Forbes: “Market volatility is a normal part of investing and is to be expected in a portfolio. If markets went straight up, then investing would be easy and we’d all be rich.”
And during the decade-long bull market on Wall Street, some participants who should know better appear to have forgotten this, as they’ve become used to steadily-increasing stock prices over a period of years.
JPMorgan Chase CEO Jamie Dimon, who infamously referred to Bitcoin as a “fraud” in 2017, told the U.S. House Financial Services Committee this week that “My own personal advice to people is: stay away from it.” And yet at his own shareholder meeting on May 18, he said that “A lot of our clients are asking, ‘can we help them buy or sell cryptocurrency? And we're investing in that as we speak.”
So why is the CEO of the largest bank in the U.S. investing in something that he advises the rest of us not to touch?
Volatility is at the heart of that argument: It’s a classic case of “Do as I say, not as I do.” And Dimon, and many like him in traditional financial markets, make oodles of money when markets are choppy.
Of course, no markets are choppier than crypto.
Over the past few weeks, volatility has returned to the crypto markets, pushing Bitcoin as low as $30,000 before the king of digital assets swung back to exceed $40,000 again. And altcoins have swung even more dramatically — a phenomenon which has helped Cointelegraph Markets Pro’s quantitative algorithm, the VORTECS™ Score, to post extraordinary results in automated live testing.
This chart, produced on May 28 illustrates the results of the VORTECS™ Score’s performance since Jan 3 this year, when the algorithm went live. At the time of publication, one day later, the ROI on the top strategy is now over 3,000%.
In a score-based testing scenario, the algorithm “buys” a digital asset when the VORTECS™ Score crosses a certain threshold (e.g. 80), and “sells” it when it crosses a second threshold (e.g. 75).
Without employing fancy rebalancing techniques, but simply dividing the portfolio between all assets that currently require an investment, the algorithm has delivered a return of 3,037% for its highest-performing testing strategy — buying at 80, and selling when the asset crosses 80 again on the way back down.
For comparison, Bitcoin has generated returns of just 11.2% since Jan 3, and an evenly-weighted basket of the top 100 altcoins has returned 247%.
The only reason the VORTECS™ Score can deliver outsized returns like this is because crypto markets are volatile — which presents multiple entry and exit opportunities in a shorter timeframe than enjoyed by traders in traditional markets.
That may be partly a function of the 24/7 nature of crypto trading, but it’s also partly because the risk tolerance of cryptocurrency investors is generally agreed to be significantly higher than that of Wall Street CEOs… at least for short-term investing.
So while volatility has obvious downsides, including the risk of total and permanent loss, it also has major potential upside for traders who have strong research skills.
And strong research tools.
Bitcoin's Price Regains Some Losses, Signals Still Show Indecisive Crypto Markets
Digital currency market prices have been dropping during the last few days as the crypto economy now rests at $1.53 trillion in value. Crypto trade volumes have increased a hair on Sunday, and a few crypto assets have seen decent percentage gains over the course of the last seven days.
Crypto Market Prices Consolidate While Traders Wait to See if Bears or the Bulls Grab the Reigns
Last week, crypto proponents witnessed billions of dollars shaved off the entire crypto-economy and many are curious as to where things are headed next. Bitcoin (BTC) jumped back above the $40k handle a few days ago but then plummeted below the $34k zone on Saturday.
At the time of publication, BTC is exchanging hands for $36,098 per unit and is up over 3% this week against the U.S. dollar. Despite the 4% gain last week, 30-day percentages show bitcoin prices are still down 35%.
The top five trading pairs with bitcoin (BTC) on Sunday, May 30, 2021, includes tether (USDT) with 57% of all trades, USD with 14%, BUSD 5.7%, JPY 4.85%, and the EUR at 4.82%.
The second-largest market, ethereum (ETH), is swapping for $2,439 per unit on Sunday. ETH is still down 10% during the last 30 days, but weekly stats show ETH has gained 16%.
Out of the top ten crypto assets in terms of market capitalization, cardano (ADA) has seen the biggest 24 hour gain today. ADA is swapping for $1.68 per unit and is up over 13% on Sunday morning (ET).
Akash Girimath, an Fxstreet analyst, says that the price of bitcoin (BTC) currently “hangs between whale accumulation and miners’ woes. Girimath’s outlook is quite grim and bearish, but BTC still has a chance to overcome the losses Girimath says.
“As grim as it may sound,” Girimath said. “Bitcoin’s price still has room to head higher, at least until $42,000. The bearish thesis put forth by the head-and-shoulders technical pattern will face invalidation if BTC generates a decisive daily candlestick close above the resistance level at $42,000.”
Meanwhile, bitcoin (BTC) has regained some market dominance this week despite the losses. At the time of publication, BTC dominance stands at 43.1% while ETH holds around 18% on Sunday.
Sunday’s biggest gainer is kicktoken (KICK) up 132% today, and stakenet (XSN) which is up 91% during the last 24 hours.
The biggest losers this weekend include cube (AUTO) token which is down 60% today, and agrello (DLT) down 60% this morning as well.
Digital currency market prices have been dropping during the last few days as the crypto economy now rests at $1.53 trillion in value. Crypto trade volumes have increased a hair on Sunday, and a few crypto assets have seen decent percentage gains over the course of the last seven days.
Crypto Market Prices Consolidate While Traders Wait to See if Bears or the Bulls Grab the Reigns
Last week, crypto proponents witnessed billions of dollars shaved off the entire crypto-economy and many are curious as to where things are headed next. Bitcoin (BTC) jumped back above the $40k handle a few days ago but then plummeted below the $34k zone on Saturday.
At the time of publication, BTC is exchanging hands for $36,098 per unit and is up over 3% this week against the U.S. dollar. Despite the 4% gain last week, 30-day percentages show bitcoin prices are still down 35%.
The top five trading pairs with bitcoin (BTC) on Sunday, May 30, 2021, includes tether (USDT) with 57% of all trades, USD with 14%, BUSD 5.7%, JPY 4.85%, and the EUR at 4.82%.
The second-largest market, ethereum (ETH), is swapping for $2,439 per unit on Sunday. ETH is still down 10% during the last 30 days, but weekly stats show ETH has gained 16%.
Out of the top ten crypto assets in terms of market capitalization, cardano (ADA) has seen the biggest 24 hour gain today. ADA is swapping for $1.68 per unit and is up over 13% on Sunday morning (ET).
Akash Girimath, an Fxstreet analyst, says that the price of bitcoin (BTC) currently “hangs between whale accumulation and miners’ woes. Girimath’s outlook is quite grim and bearish, but BTC still has a chance to overcome the losses Girimath says.
“As grim as it may sound,” Girimath said. “Bitcoin’s price still has room to head higher, at least until $42,000. The bearish thesis put forth by the head-and-shoulders technical pattern will face invalidation if BTC generates a decisive daily candlestick close above the resistance level at $42,000.”
Meanwhile, bitcoin (BTC) has regained some market dominance this week despite the losses. At the time of publication, BTC dominance stands at 43.1% while ETH holds around 18% on Sunday.
Sunday’s biggest gainer is kicktoken (KICK) up 132% today, and stakenet (XSN) which is up 91% during the last 24 hours.
The biggest losers this weekend include cube (AUTO) token which is down 60% today, and agrello (DLT) down 60% this morning as well.
Bitcoin's Price Regains Some Losses, Signals Still Show Indecisive Crypto Markets
Digital currency market prices have been dropping during the last few days as the crypto economy now rests at $1.53 trillion in value. Crypto trade volumes have increased a hair on Sunday, and a few crypto assets have seen decent percentage gains over the course of the last seven days.
Crypto Market Prices Consolidate While Traders Wait to See if Bears or the Bulls Grab the Reigns
Last week, crypto proponents witnessed billions of dollars shaved off the entire crypto-economy and many are curious as to where things are headed next. Bitcoin (BTC) jumped back above the $40k handle a few days ago but then plummeted below the $34k zone on Saturday.
At the time of publication, BTC is exchanging hands for $36,098 per unit and is up over 3% this week against the U.S. dollar. Despite the 4% gain last week, 30-day percentages show bitcoin prices are still down 35%.
The top five trading pairs with bitcoin (BTC) on Sunday, May 30, 2021, includes tether (USDT) with 57% of all trades, USD with 14%, BUSD 5.7%, JPY 4.85%, and the EUR at 4.82%.
The second-largest market, ethereum (ETH), is swapping for $2,439 per unit on Sunday. ETH is still down 10% during the last 30 days, but weekly stats show ETH has gained 16%.
Out of the top ten crypto assets in terms of market capitalization, cardano (ADA) has seen the biggest 24 hour gain today. ADA is swapping for $1.68 per unit and is up over 13% on Sunday morning (ET).
Akash Girimath, an Fxstreet analyst, says that the price of bitcoin (BTC) currently “hangs between whale accumulation and miners’ woes. Girimath’s outlook is quite grim and bearish, but BTC still has a chance to overcome the losses Girimath says.
“As grim as it may sound,” Girimath said. “Bitcoin’s price still has room to head higher, at least until $42,000. The bearish thesis put forth by the head-and-shoulders technical pattern will face invalidation if BTC generates a decisive daily candlestick close above the resistance level at $42,000.”
Meanwhile, bitcoin (BTC) has regained some market dominance this week despite the losses. At the time of publication, BTC dominance stands at 43.1% while ETH holds around 18% on Sunday.
Sunday’s biggest gainer is kicktoken (KICK) up 132% today, and stakenet (XSN) which is up 91% during the last 24 hours.
The biggest losers this weekend include cube (AUTO) token which is down 60% today, and agrello (DLT) down 60% this morning as well.
Digital currency market prices have been dropping during the last few days as the crypto economy now rests at $1.53 trillion in value. Crypto trade volumes have increased a hair on Sunday, and a few crypto assets have seen decent percentage gains over the course of the last seven days.
Crypto Market Prices Consolidate While Traders Wait to See if Bears or the Bulls Grab the Reigns
Last week, crypto proponents witnessed billions of dollars shaved off the entire crypto-economy and many are curious as to where things are headed next. Bitcoin (BTC) jumped back above the $40k handle a few days ago but then plummeted below the $34k zone on Saturday.
At the time of publication, BTC is exchanging hands for $36,098 per unit and is up over 3% this week against the U.S. dollar. Despite the 4% gain last week, 30-day percentages show bitcoin prices are still down 35%.
The top five trading pairs with bitcoin (BTC) on Sunday, May 30, 2021, includes tether (USDT) with 57% of all trades, USD with 14%, BUSD 5.7%, JPY 4.85%, and the EUR at 4.82%.
The second-largest market, ethereum (ETH), is swapping for $2,439 per unit on Sunday. ETH is still down 10% during the last 30 days, but weekly stats show ETH has gained 16%.
Out of the top ten crypto assets in terms of market capitalization, cardano (ADA) has seen the biggest 24 hour gain today. ADA is swapping for $1.68 per unit and is up over 13% on Sunday morning (ET).
Akash Girimath, an Fxstreet analyst, says that the price of bitcoin (BTC) currently “hangs between whale accumulation and miners’ woes. Girimath’s outlook is quite grim and bearish, but BTC still has a chance to overcome the losses Girimath says.
“As grim as it may sound,” Girimath said. “Bitcoin’s price still has room to head higher, at least until $42,000. The bearish thesis put forth by the head-and-shoulders technical pattern will face invalidation if BTC generates a decisive daily candlestick close above the resistance level at $42,000.”
Meanwhile, bitcoin (BTC) has regained some market dominance this week despite the losses. At the time of publication, BTC dominance stands at 43.1% while ETH holds around 18% on Sunday.
Sunday’s biggest gainer is kicktoken (KICK) up 132% today, and stakenet (XSN) which is up 91% during the last 24 hours.
The biggest losers this weekend include cube (AUTO) token which is down 60% today, and agrello (DLT) down 60% this morning as well.
Bitcoin Miners Thrive Amid ‘Ridiculous’ Energy Subsidies in Argentina
Cheap subsidized electricity and massive inflation have made crypto mining quite attractive for Argentinians.
More and more residents of Argentina are turning to Bitcoin mining amid economic uncertainty and generous electricity subsidies provided by the government, Bloomberg reported today.
“Even after Bitcoin’s price correction, the cost of electricity for anyone mining from their house is still a fraction of the total revenue generated,” Nicolas Bourbon, who has experience in crypto mining, told the outlet.
This became possible thanks to a longstanding policy that allows Argentinians to receive substantial electricity subsidies from the government. So much so that a consumer power bill reportedly amounts to only 2-3% of an average monthly income.
By comparison, electricity costs at least twice as much in other Latin American countries like Brazil, Colombia, or Chile.
Meanwhile, Argentinians are desperately looking for alternative assets that can serve as a hedge in the face of the rampant 50% annual inflation. To make matters worse, the government only allows residents to swap their pesos for up to $200 per month, further catalyzing the depreciation of Argentine pesos.
“The crypto that miners generate is typically sold at the parallel exchange rate, but the energy is paid for at a subsidized rate. At the moment, revenues are very high,” Bourbon explained.
Big players eye Argentina
Large international mining firms have also noted the boom. Bitfarms, one of the largest Bitcoin mining companies globally, revealed that it plans to use a local power plant in Argentina to draw up to 210 megawatts of electricity.
“We were looking for places that have overbuilt their electrical generation systems. Economic activity in Argentina is down, and power is not being fully utilized. So it was a win-win situation,” Bitfarms president Geoffrey Morphy told Bloomberg.
While subsidies won’t fully cover the company’s operations, Argentina still offers an attractive rate of $0.022 per kilowatt-hour—which is far more lucrative than the industry’s average of $0.06. “Miners know the subsidies are ridiculous,” said Bourbon. “They simply take advantage of it.”
Cheap subsidized electricity and massive inflation have made crypto mining quite attractive for Argentinians.
More and more residents of Argentina are turning to Bitcoin mining amid economic uncertainty and generous electricity subsidies provided by the government, Bloomberg reported today.
“Even after Bitcoin’s price correction, the cost of electricity for anyone mining from their house is still a fraction of the total revenue generated,” Nicolas Bourbon, who has experience in crypto mining, told the outlet.
This became possible thanks to a longstanding policy that allows Argentinians to receive substantial electricity subsidies from the government. So much so that a consumer power bill reportedly amounts to only 2-3% of an average monthly income.
By comparison, electricity costs at least twice as much in other Latin American countries like Brazil, Colombia, or Chile.
Meanwhile, Argentinians are desperately looking for alternative assets that can serve as a hedge in the face of the rampant 50% annual inflation. To make matters worse, the government only allows residents to swap their pesos for up to $200 per month, further catalyzing the depreciation of Argentine pesos.
“The crypto that miners generate is typically sold at the parallel exchange rate, but the energy is paid for at a subsidized rate. At the moment, revenues are very high,” Bourbon explained.
Big players eye Argentina
Large international mining firms have also noted the boom. Bitfarms, one of the largest Bitcoin mining companies globally, revealed that it plans to use a local power plant in Argentina to draw up to 210 megawatts of electricity.
“We were looking for places that have overbuilt their electrical generation systems. Economic activity in Argentina is down, and power is not being fully utilized. So it was a win-win situation,” Bitfarms president Geoffrey Morphy told Bloomberg.
While subsidies won’t fully cover the company’s operations, Argentina still offers an attractive rate of $0.022 per kilowatt-hour—which is far more lucrative than the industry’s average of $0.06. “Miners know the subsidies are ridiculous,” said Bourbon. “They simply take advantage of it.”
BitMEX and Human Rights Foundation Grant $150,000 to Researcher Scaling Bitcoin
Cryptocurrency exchange BitMEX has renewed a grant for developer Calvin Kim worth $100,000. The Human Rights Foundation whacked in another $50,000.
Crypto exchange BitMEX has renewed a $100,000 grant for Bitcoin researcher Calvin Kim for another year. Kim also received additional funding worth $50,000 from the Human Rights Foundation.
Kim is working on MIT’s Utreexo Project, which aims to help Bitcoin scale for years to come.
Bitcoin’s state size—a database that details who owns what—generally increases in size over time, creating additional burdens for the decentralized network of hard drives that host the network.
Utreexo’s algorithm promises to significantly reduce Bitcoin’s state size from several gigabytes to less than a kilobyte.
And now, with a year’s extra funding behind him, Kim can continue collaborating on the project since BitMEX started funding him last year. “Being financially stable has allowed me to focus more attention to furthering research and development of the Utreexo Project,” said Kim in a statement.
OKEx has also provided grants in the past, including to Bitcoin Core maintainer Marco Falke. The award was equivalent to the annual salary for a developer, although Falke reportedly requested that the exact figure not be disclosed.
Exchanges pitch in to build Bitcoin
This is not the first time a crypto exchange has issued a grant to develop the Bitcoin blockchain. Last December, Coinbase announced the first set of Bitcoin developer grants from its Crypto Community Fund.
The exchange awarded grants to Bitcoin developers oxB1oC and Joao Barbosa. oxB1oc is building and improving existing open-source tools for Bitcoin, while Barbosa is focusing on improving Bitcoin Core’s user interface on Android and iOS.
Cryptocurrency exchange BitMEX has renewed a grant for developer Calvin Kim worth $100,000. The Human Rights Foundation whacked in another $50,000.
Crypto exchange BitMEX has renewed a $100,000 grant for Bitcoin researcher Calvin Kim for another year. Kim also received additional funding worth $50,000 from the Human Rights Foundation.
Kim is working on MIT’s Utreexo Project, which aims to help Bitcoin scale for years to come.
Bitcoin’s state size—a database that details who owns what—generally increases in size over time, creating additional burdens for the decentralized network of hard drives that host the network.
Utreexo’s algorithm promises to significantly reduce Bitcoin’s state size from several gigabytes to less than a kilobyte.
And now, with a year’s extra funding behind him, Kim can continue collaborating on the project since BitMEX started funding him last year. “Being financially stable has allowed me to focus more attention to furthering research and development of the Utreexo Project,” said Kim in a statement.
OKEx has also provided grants in the past, including to Bitcoin Core maintainer Marco Falke. The award was equivalent to the annual salary for a developer, although Falke reportedly requested that the exact figure not be disclosed.
Exchanges pitch in to build Bitcoin
This is not the first time a crypto exchange has issued a grant to develop the Bitcoin blockchain. Last December, Coinbase announced the first set of Bitcoin developer grants from its Crypto Community Fund.
The exchange awarded grants to Bitcoin developers oxB1oC and Joao Barbosa. oxB1oc is building and improving existing open-source tools for Bitcoin, while Barbosa is focusing on improving Bitcoin Core’s user interface on Android and iOS.
Ethereum Mining Revenue Topped Bitcoin in May With $2.35 Billion
Over $1 billion in Ethereum mining revenue came from transaction fees.
Ethereum miners took in record revenues in May, allowing them to earn more than Bitcoin miners for just the second time in the last year.
Monthly mining revenue on the Ethereum blockchain reached $2.35 billion in May, according to statistics from Coin Metrics, compared to $1.45 billion for Bitcoin. In February, Ethereum mining revenue narrowly pipped Bitcoin, $1.37 billion to $1.36 billion. Otherwise, Bitcoin mining tends to dominate for gross revenue, if not always profitability.
Proof-of-work mining asks people to dedicate their computing power to helping secure the network. It is the process by which new transactions are processed on the network and new tokens are created.
Mining revenue consists of two elements: block rewards and transaction fees. Every time someone mines a block of transactions and adds it to the blockchain, they receive a set number of newly created tokens. In Bitcoin's case, that's 6.25 BTC ($227,000) every 10 minutes; for Ethereum, it's two ETH ($5,100) every 13 or so seconds.
They also receive the transaction fees within that block.
Ethereum's May dominance is a byproduct of the price of ETH itself—it hit a record high of $4,164 on May 10—as well as high transaction fees on the congested network. The busier the network gets—and it's gotten very busy thanks to the boom in decentralized finance (DeFi) applications and NFTs—the more competitive it becomes to get a transaction through; fees adjust in line with supply and demand. Just over $1 billion of ETH miners' revenue last month came from fees, compared to $130 million for BTC. Ethereum's transaction fees consistently outstrip Bitcoin's.
Two looming events are set to alter Ethereum's mining landscape, however: the inclusion of EIP-1559 in a July network upgrade known as the "London hard fork" and the eventual move to proof-of-stake consensus.
EIP-1559 is an Ethereum improvement proposal that will burn the ETH transaction fees rather than give them to miners. By decreasing the amount of ETH in circulation, the move could make demand for the asset go up, thereby increasing the value of the block rewards in US dollars.
Proof of stake, however, will kill mining altogether, replacing it with "staking." Essentially, the network will be secured through the process of people depositing ETH. They'll claim fresh rewards if they correctly validate blocks of transactions, while losing portions of their stake if they don't.
Ethereum miners, then, shouldn't get too used to the record revenue.
Over $1 billion in Ethereum mining revenue came from transaction fees.
Ethereum miners took in record revenues in May, allowing them to earn more than Bitcoin miners for just the second time in the last year.
Monthly mining revenue on the Ethereum blockchain reached $2.35 billion in May, according to statistics from Coin Metrics, compared to $1.45 billion for Bitcoin. In February, Ethereum mining revenue narrowly pipped Bitcoin, $1.37 billion to $1.36 billion. Otherwise, Bitcoin mining tends to dominate for gross revenue, if not always profitability.
Proof-of-work mining asks people to dedicate their computing power to helping secure the network. It is the process by which new transactions are processed on the network and new tokens are created.
Mining revenue consists of two elements: block rewards and transaction fees. Every time someone mines a block of transactions and adds it to the blockchain, they receive a set number of newly created tokens. In Bitcoin's case, that's 6.25 BTC ($227,000) every 10 minutes; for Ethereum, it's two ETH ($5,100) every 13 or so seconds.
They also receive the transaction fees within that block.
Ethereum's May dominance is a byproduct of the price of ETH itself—it hit a record high of $4,164 on May 10—as well as high transaction fees on the congested network. The busier the network gets—and it's gotten very busy thanks to the boom in decentralized finance (DeFi) applications and NFTs—the more competitive it becomes to get a transaction through; fees adjust in line with supply and demand. Just over $1 billion of ETH miners' revenue last month came from fees, compared to $130 million for BTC. Ethereum's transaction fees consistently outstrip Bitcoin's.
Two looming events are set to alter Ethereum's mining landscape, however: the inclusion of EIP-1559 in a July network upgrade known as the "London hard fork" and the eventual move to proof-of-stake consensus.
EIP-1559 is an Ethereum improvement proposal that will burn the ETH transaction fees rather than give them to miners. By decreasing the amount of ETH in circulation, the move could make demand for the asset go up, thereby increasing the value of the block rewards in US dollars.
Proof of stake, however, will kill mining altogether, replacing it with "staking." Essentially, the network will be secured through the process of people depositing ETH. They'll claim fresh rewards if they correctly validate blocks of transactions, while losing portions of their stake if they don't.
Ethereum miners, then, shouldn't get too used to the record revenue.