Bitcoin News

Bitcoin hodlers keep their holdings and don’t sell yet with ATH

Published

3 years ago

November 13, 2021

Despite the fact that bitcoin (BTC) has hit all-time highs (ATH) in recent weeks, one of these very close to $70,000, most investors in the first cryptocurrency do not sell and keep holding. their holdings.

This is suggested by the most recent analysis by the firm Glassnode, which establishes that many investors “are happy” to hodl their bitcoins. To them, it is nothing more than a sign that market enthusiasts aspire for the price of BTC to stay higher.

The company points out that the typical behavior of experienced investors when BTC prices rise is to start selling, but they have barely spent 0.73% of the supply of coins in circulation.

“This spending behavior has even slowed down the Long Term Hodler Net Position (LTH) change metric, which has been in an accumulation period since April this year. The accumulation rate of LTH reached more than 400,000 BTC per month for around 5 months until the end of September, and now it has returned to a neutral level”, they expose.

This indicates, according to Glassnode, that during the last 30 days, the supply of LTH is flat on the network, “and an equivalent volume of coins is maturing to the LTH state as they are spent outside of it.”

In fact, as a result of continuous outflows of foreign exchange, 12.9% of circulating offer bitcoin is trading at the exchanges, even when the cryptocurrency pioneer is changing at prices below historical highs.

Meanwhile, the rate of new digital wallet addresses that send or receive BTC, according to Glassnode, has grown “significantly”, but that does not mean that many people or companies have debuted in the market.

According to the firm, the creation of new entities – groups of addresses in control of a single person or institution – has barely exceeded the rate that is generally seen in bear markets.

It is possible that this responds to the fact that users are setting up wallets to keep their bitcoins in interest-bearing accounts; or that hedge funds that are already present in the ecosystem are raising money for other new strategies.

“This price observation near ATHs, while on-chain activity is near bear market lows is quite a notable divergence. It speaks of a compelling case where the market is likely still in the quiet build-up phase, marked by low activity, large outflows and very modest strategic spending by experienced holders”.
Glassnode, cryptocurrency market analysis firm.

Long-term Hodler Net Position change metric slowed down */ Source:* *Glassnode*

Bitcoin hash rate to hit ATH before year-end, according to Glassnode

Glassnode also talked about Bitcoin mining. After acknowledging its recovery of up to 95% after the Chinese onslaught against the industry, it pounced to predict a new all-time high in mining capacity, or hash rate, before the end of the year.

“The mining industry continues to recover after the extraordinary event that 52% of the hash power grid went offline, almost overnight. Given the current recovery trend, the mining market hash rate could reach new ATHs before the end of 2021”, they explain.

They also point out that, as is known, the income of miners denominated in BTC drops drastically every four years, as the block subsidy component “is programmatically reduced by half.” It is worth clarifying that, with the transaction fees included, the current total income of the miners fluctuates between 900 and 1,000 BTC per day.

However, they specify that while miners’ revenues are denominated in BTC, their incurred hardware, logistics, energy and financing costs are denominated in fiat money. Those profits, precisely, are large, so much so that for Glassnode, “the mining industry is paid almost at the highest level in history for its services.”

“Since the halving event in May, total revenue in USD increased more than 550%, from USD 9.3 million per day to more than USD 60 million. In fact, daily revenues are almost at all-time highs, with only 5% less than the peak of USD 67 million per day established in May,” they indicate.

In short, with the Bitcoin hash rate almost fully recovered from the blow delivered by the Chinese government, miners’ revenues in USD are approaching a new all-time high and 93% of the security budget and incentive system “seem be working exceptionally well”.

***The miners make substantial profits in US dollars for their activity. / Source:*** ***Glassnode*** .

ATH forecasts on the price of bitcoin

What Glassnode says makes sense if you take into account the estimates of analysts who see bitcoin with an average price of $98,000 before the end of November.

Historically, mining capacity is related to the appreciation of the currency , since it implies more confidence in the network, which translates into more security for investors.

The famous analyst Plan B predicts a jump of +60% for the first cryptocurrency, relying on its Stock-to-Flow (S2F) prediction model, we reported in recent days.

Although not all of his followers believe in his data, others show more confidence. In fact, months earlier, Plan B forecast a price of $135,000 for bitcoin in December.

Although it sounds somewhat utopian, given that it still has more than USD 60,000 to overcome before reaching that goal, there are those who have faith: its predictive model, curiously, has worked, according to this newspaper.

The S2F model is based on the theory that bitcoin is a store of value like gold or silver that maintains its value over the long term due to its relative scarcity. So, under this principle, Plan B correlates the stock or amount of assets currently available, with the flow or amount of bitcoins mined annually, and based on that it projects where the price of the cryptocurrency can go.

Today, BTC has an average price of $64,862, according to the CoinGecko. It will be left to wait and see if the forecasts are fulfilled. For now, the market continues to expand and bitcoin, of course, growing.

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Bitcoin News

Nomura Group Unveils Bitcoin Fund Catering to Institutional Investors

Published

8 months ago

September 20, 2023

Daniel Jara

Nomura Digital Assets, a subsidiary of Japan’s leading financial institution, Nomura Group, has ventured into the world of digital assets with the launch of a Bitcoin fund. This strategic move is designed to streamline access to digital assets for major investors, responding to the escalating demand for cryptocurrency investments. It marks Nomura’s maiden foray into providing investment solutions tailored to the digital asset arena.

In a press release dated September 19, Laser Digital Asset Management, the digital asset management arm of Nomura, proudly introduced the Bitcoin Adoption Fund, a specialized offering aimed squarely at institutional investors. This fund underscores the growing breadth of cryptocurrency adoption in Japan.

Facilitating Bitcoin Uptake

The Laser Digital Bitcoin Adoption Fund offers institutional investors an attractive proposition, blending cost-efficiency with robust security measures. In a bid to safeguard the fund’s holdings, Laser has enlisted the services of Komainu, a custody solution established in 2018, which is subject to regulatory oversight and jointly formed by Nomura, Ledger, and Coinshares.

Fiona King, the head of Laser Digital Asset Management, emphasized the fund’s meticulous management and compliance standards. Notably, the fund operates as a segregated portfolio within the mutual fund entity, Laser Digital Funds SPC.

Nomura Holdings foresees that its crypto-focused division, Laser Digital, will begin turning a profit within the next two years. This projection is a response to the surging demand for Bitcoin and other cryptocurrencies, pitting Nomura against established traditional heavyweights such as JPMorgan and Goldman Sachs.

While Laser Digital already offers Bitcoin derivatives to its institutional clientele, the prolonged bear market has impacted the company’s growth trajectory. Due to the recent downturn in cryptocurrency values, Nomura has cautioned that it might take longer than initially anticipated for Laser Digital to achieve profitability.

Bitcoin News

Bitcoin Surges to $32,500 in China: Here’s Why

Published

8 months ago

September 20, 2023

Daniel Jara

The cryptocurrency market has witnessed a remarkable surge in the price of Bitcoin, and according to a renowned cryptocurrency analyst, this increase has a fundamental reason: Chinese buying. In a recent YouTube video, the CryptoBanter analyst dissected the factors behind this Bitcoin surge, which comes after a series of significant declines in August. In this report, we will delve into how Chinese buying has propelled the price of Bitcoin and how other factors, such as the depreciation of the Chinese yuan and its correlation with the U.S. Dollar Index (DXY), have influenced this exciting development in the cryptocurrency market.

The Flight from the Chinese Yuan: Bitcoin and Gold as Havens

One of the key factors behind Bitcoin’s recent surge is the increasing flight of Chinese consumers from their national currency. The Chinese currency has experienced depreciation in its value, leading many Chinese individuals to seek refuge in Bitcoin and gold. Economic uncertainty in China, exacerbated by crises in the stock market and the real estate market, has further eroded confidence in the Chinese yuan. As a result, Bitcoin and gold have become safe-haven assets for Chinese investors.

Bitcoin Reaches $32,500 in China

The CryptoBanter analyst reports that the demand for “digital gold” in China has driven Bitcoin’s price to astonishing levels. According to their observations, a single Bitcoin has reached a price of $32,500 in China and was then exchanged for USDT at $33,000. This represents a significant premium compared to the current price of Bitcoin in other markets, which stands at $27,135. This price disparity has created a substantial arbitrage opportunity for investors.

September Breaks the Traditional Bearish Pattern

September is typically a historically bearish month for Bitcoin, but this year has been a notable exception. Despite pessimistic predictions from many analysts, BTC has recorded a 4% increase in its price during this month. The CryptoBanter analyst suggests that this positive performance may foreshadow even greater gains in the future.

Correlation with the U.S. Dollar Index (DXY)

One interesting observation from the analyst is the correlation between the price of Bitcoin and the U.S. Dollar Index (DXY). According to their data, whenever the DXY reaches the level of 105, the price of Bitcoin tends to rise. This could indicate an inverse relationship between the strength of the U.S. dollar and the attractiveness of Bitcoin as an investment asset.

Long-Term Investors Continue to Accumulate

Despite the volatile market conditions, the analyst points out that long-term Bitcoin investors have increased to over 75%. This suggests sustained confidence in the long-term potential of the world’s largest cryptocurrency, even amid price fluctuations.

Bitcoin in the Last 24 Hours

According to CoinMarketCap data, in the last 24 hours, Bitcoin has experienced a 0.79% increase. On the weekly price chart, the leading cryptocurrency has risen by 4.56%. At the time of writing this report, Bitcoin has a market capitalization of $528 billion, solidifying its position as the largest and most robust cryptocurrency network in the world.

In Conclusion…

Chinese buying has proven to be a crucial factor in the recent surge of Bitcoin, challenging the traditionally bearish expectations for September. As the cryptocurrency continues to evolve and attract the attention of investors worldwide, the relationship between Bitcoin and global economic events will remain a topic of interest and discussion within the crypto community.

Bitcoin News

This Analyst Predicts a Bright Bullish Future for Chainlink (LINK)

Published

8 months ago

September 20, 2023

Daniel Jara

In an exciting revelation, prominent cryptocurrency analyst Michaël van de Poppe has shared his insightful analysis of Chainlink (LINK), one of the standout cryptocurrencies in today’s market. Van de Poppe, widely recognized in the crypto community, has caused a stir with his bullish predictions for this decentralized oracle network. Let’s delve into the details of his analysis and understand why he foresees a bright future for Chainlink.

Van de Poppe’s Chainlink Analysis

According to Van de Poppe’s analysis, Chainlink has reached its minimum level and is poised for a reevaluation phase that could offer extremely lucrative buying opportunities. His expert view focuses on a specific price range: $6.15 to $6.40. For investors, this range presents itself as a strategic entry point that could result in substantial gains in the near future. Van de Poppe has even set an ambitious price target of $8, suggesting an impressive bullish potential.

Request 1 – $LINK

This one is showing upwards momentum and I think that the bottom is in.

Retests are ready to be bought. If we get $6.15-6.40 retest, that's an entry towards $8. pic.twitter.com/1nqCroCKzp
— Michaël van de Poppe (@CryptoMichNL) September 18, 2023

Technical Analysis: Bullish Outlook

Chainlink’s technical analysis supports Van de Poppe’s claims. The 4-hour chart for LINK/USD reveals that the altcoin remains above all moving averages, a positive indicator of the current bullish trend. Furthermore, the chart shows that Chainlink is struggling to break above the upper band of its symmetrical triangle pattern, which could mark the beginning of a significant rally.

The MACD indicator also lends support to the idea of a bullish breakthrough, with two consecutive higher highs indicating an upward momentum. Although the RSI remains neutral, it is above the 50 level, suggesting room for further growth in Chainlink’s price.

Key Levels and Resistance

In recent days, bears attempted to push Chainlink’s price below $6.55, but strong buying pressure at this level prevented a significant decline. This demonstrates the strength of buyers in the area. After this attempt at a downward correction, the price returned and reached the supply zone at $6.68. At this point, several double-bottom patterns were observed, a bullish indicator according to technical analysis.

Chainlink’s Potential

The pivotal moment came in the previous 4-hour timeframe when bulls gained momentum by surpassing the resistance at $6.70. This bullish breakthrough led the price to steadily rise, reaching an intraday high of $6.88, which is close to the 200-exponential Moving Average (EMA), a significant technical indicator.

However, as in any financial market, there is always the possibility that bulls may lose their momentum. In that case, we could see a retracement to the main support level at $6.45. If this level fails to hold, a more significant correction to $6.0 is possible, potentially opening the door to a bearish trend.

Conclusion

In summary, Michaël van de Poppe, with his impressive track record of predictions, has put Chainlink on the radar of many investors. His technical analysis supports his bullish outlook and highlights key levels to watch. As this cryptocurrency continues to attract attention in the crypto community, investors will be eager to see if Chainlink lives up to expectations and reaches new highs on its exciting journey towards $8 and beyond. Stay tuned for market updates, as exciting opportunities can arise in the world of cryptocurrencies.