The UK government announced this week that the Insolvency Service has secured a winding-up order against cryptocurrency advisory firm Amey Finance Academy Ltd at the High Court. The company, created by Desmond Amey in 2018, claimed to offer investment advice and financial education. However, complaints emerged that consumers lost money, and the Financial Conduct Authority […]
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Why Did Bitcoin Just Jump 10%? Blockchain Firm Weighs In
The cryptocurrency market has been on a hot streak in the past few days, with several large-cap assets posting significant gains in the past week. Most notably, the Bitcoin price bounced back from around ,000 to above ,000 for the first time in nearly a month.
As expected, this latest price movement has sparked a lot of speculation and discussion around the premier cryptocurrency. Popular blockchain analytics firm CryptoQuant has shared on-chain insights into the recent Bitcoin price rally and its future trajectory.
How Did Bitcoin Price Reach ,000?
In a recent report, CryptoQuant revealed the catalyst and on-chain manifestations behind BTC’s latest rally to above ,000. According to the analytics firm, the price of Bitcoin rode to its new highs on the back of the news of lower-than-expected inflation in the United States.
The inflation data released on Wednesday, May 15 showed that the Consumer Price Index (CPI) rose by 0.3% in April – lower than the expected 0.4%. This revelation suggested that inflation might be on a downward slope in the US, making risky assets like Bitcoin more attractive.
#Bitcoin's price has rallied from K to around K, driven by lower-than-expected US inflation and reduced selling pressure.
Let's look into the details
— CryptoQuant.com (@cryptoquant_com) May 17, 2024
In its report, CryptoQuant revealed that there has been a decreased selling pressure in the BTC market, as short-term holders are selling at low or negative profits. Meanwhile, Bitcoin balances at over-the-counter (OTC) desks have steadied, implying that fewer coins are entering the open market.
What’s more, the analytics platform highlighted a particular on-chain signal that might have predicted the recent Bitcoin price rally. According to CryptoQuant, BTC miners have been extremely underpaid over the past few weeks, which often correlates with price bottoms.
The Catalysts For Sustained BTC Rally?
CryptoQuant, in its report, identified potential catalysts for a continued rally for the Bitcoin price. According to the on-chain data company, demand from permanent holders and largest investors is on the rise but it needs to climb rapidly to push the price of BTC even higher.
Furthermore, the latest data shows that Bitcoin ETF (exchange-traded funds) purchases have dwindled to nearly zero daily, while stablecoin liquidity growth is also on a decline. CryptoQuant noted that these two metrics need a jolt, which might be critical for a sustained Bitcoin rally.
As of this writing, the Bitcoin price continues to hover around ,000, reflecting a 2.5% increase in the past 24 hours. According to CoinGecko data, the premier cryptocurrency is up by a significant 10% in the past week.
Nigerian Fintech Firm Flutterwave Confirms Hacking Attempt, Says Users’ Funds Safe
The Nigerian fintech firm Flutterwave claimed on May 16 that it had foiled an attempt to breach its payments platform. Flutterwave asserted that the “unauthorized activities inconsistent with usual customer behavior” did not compromise users’ funds or data confidentiality. According to one report, over million was siphoned from Flutterwave following a cyberattack in April. […]
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Bitcoin Price Holds Firm: Key Support Maintained Amid Market Uncertainty
Bitcoin price is holding the key support at ,000. BTC could start another increase and rise toward the range resistance at ,500.
- Bitcoin is still trading in a range between ,000 and ,500.
- The price is trading above ,500 and the 100 hourly Simple moving average.
- There was a break above a connecting bearish trend line with resistance at ,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could gain bullish momentum if it clears ,200 and ,500.
Bitcoin Price Remains Steady
Bitcoin price started another decline from the ,500 resistance zone. BTC traded below the ,500 and ,200 support levels. A low was formed at ,000 and the price started a recovery wave.
There was a move above the ,250 and ,500 levels. Besides, there was a break above a connecting bearish trend line with resistance at ,550 on the hourly chart of the BTC/USD pair. There was a move above the 23.6% Fib retracement level of the recent decline from the ,400 swing high to the ,000 low.
Bitcoin is still trading above ,500 and the 100 hourly Simple moving average. Immediate resistance is near the ,200 level or the 50% Fib retracement level of the recent decline from the ,400 swing high to the ,000 low.
The first major resistance could be ,500. The next key resistance could be ,000. A clear move above the ,000 resistance might send the price higher. The main resistance now sits at ,500. If there is a close above the ,500 resistance zone, the price could continue to move up. In the stated case, the price could rise toward ,000.
Another Drop In BTC?
If Bitcoin fails to climb above the ,500 resistance zone, it could start another decline. Immediate support on the downside is near the ,550 level and the 100 hourly Simple moving average.
The first major support is ,000. If there is a close below ,000, the price could start to drop toward ,400. Any more losses might send the price toward the ,000 support zone in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – ,550, followed by ,000.
Major Resistance Levels – ,200, ,500, and ,500.
From Historic Banking Family to BTC — Rothschild-Linked Firm Invests in Bitcoin ETFs GBTC and IBIT
According to a recent earnings filing, Edmond de Rothschild Holding S.A., a private banking and asset management entity linked with the distinguished Rothschild banking family from France, holds shares in Grayscale’s GBTC and Blackrock’s IBIT. Edmond de Rothschild Holding’s 13F Filing Reveals Investment in Grayscale and Blackrock Bitcoin ETFs For years now, speculative discussions on […]
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Billionaire Peter Thiel’s Venture Capital Firm Leads Polymarket’s $45 Million Series B Funding Round
Billionaire Peter Thiel’s Founders Fund recently led the Series B funding round for the crypto-based prediction markets platform, Polymarket, which raised million. The latest round valued Polymarket lower than the billion it had anticipated before the Commodity Futures Trading Commission proposed a ban on events betting contracts. CFTC Seeks to Clamp Down on […]
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Biden Orders Chinese-Backed Crypto Mining Firm to Divest Land Near US Missile Base
President Joe Biden has issued an order that blocks Mineone Partners Ltd., a Chinese-backed cryptocurrency mining company, from owning land near Wyoming’s Francis E. Warren Air Force Base, which is a strategic missile base. This measure requires the divestment of land used for crypto mining and the removal of surveillance-capable equipment, citing national security risks. […]
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Investment Firm Makes Bitcoin Its Strategic Reserve – Impact On Price
Early-stage investment firm Metaplanet announced on Monday that it’s adopting Bitcoin (BTC) as its sole “strategic treasury reserve asset.”
This audacious decision signals a growing confidence in the controversial cryptocurrency as a legitimate store of value and hedge against traditional economic woes.
Yen Under Pressure, Bitcoin On The Rise
Metaplanet’s decision comes amidst a backdrop of sustained economic pressures in Japan. A weakening yen, coupled with high government debt levels and persistently low-interest rates, seems to have pushed the firm to seek alternative havens for its reserves.
Bitcoin, with its finite supply and decentralized nature, appears to be their answer.
‘Bitcoin-First, Bitcoin-Only’ Approach
In a clear statement of intent, Metaplanet outlined its new “Bitcoin-first, Bitcoin-only approach” to treasury management. The company plans to strategically convert its existing yen liabilities and future share issuances into BTC, effectively accumulating more of the digital asset over time.
This strategy echoes the recent moves of US-based MicroStrategy, which has become a major institutional holder of Bitcoin.
Believing In The ‘Absolutely Scarce’ Asset
Metaplanet’s press release paints a glowing picture of the top crypto asset’s potential. They view it as “fundamentally superior” to traditional currencies and other investment options, highlighting its scarcity and lack of a central issuer.
They are impressed by Bitcoin’s proof-of-work (PoW) consensus mechanism, emphasizing how it creates a progressively higher cost of production for the remaining coins yet to be mined. This, they argue, stands in stark contrast to traditional commodities whose supply can be readily increased.
Following The Footsteps Of A Corporate Bitcoin Believer
There are clear parallels between Metaplanet’s strategy and that of MicroStrategy. The US firm has aggressively amassed Bitcoin, currently holding over 1% of the entire circulating supply. Metaplanet, though smaller, has reportedly acquired over 117 BTC since April, signaling their commitment to replicating this strategy.
While Metaplanet’s decision reflects a growing institutional interest in Bitcoin, it also carries significant risks. Bitcoin’s price remains highly volatile, with the potential for substantial losses if the market takes a downturn.
Additionally, the regulatory landscape surrounding cryptocurrencies is still evolving, and future regulations could negatively impact Bitcoin’s viability as a reserve asset.
A Digital Canary In The Coal Mine?
Metaplanet’s bold move serves as a fascinating case study. Their all-in bet on Bitcoin raises questions about the future of traditional reserve assets and the potential for wider adoption of cryptocurrencies by institutional investors.
Impact On Bitcoin Price
The company’s investment, while significant for a single firm, represents a relatively small portion of the total Bitcoin market capitalization. However, the news itself could generate positive sentiment and short-term price increases, especially if it entices other institutional investors to follow suit.
Conversely, if Metaplanet’s strategy backfires and they are forced to sell their Bitcoin holdings at a loss, it could trigger a broader sell-off and price decline.
Ultimately, the long-term impact will depend on how this bold move by Metaplanet plays out, alongside broader market forces and evolving regulations.
Featured image from Pexels, chart from TradingView
Investment Firm Franklin Templeton: Base to Lead Ethereum L2 Sector, Powered by Socialfi
Franklin Templeton, a global investment behemoth, has praised the development and growth of Base, the Coinbase-incubated Ethereum L2. On social media, the company declared that Base had “hit a home run” due to its popularity with meme coins and socialfi applications, including the pioneering app in the space, Friend.tech. Franklin Templeton Praises Base’s Performance, Comments […]
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Crypto Wallet Firm Exodus Faces Unexpected Setback in NYSE Uplisting Plan
Exodus Movement, a crypto wallet company, announced that its planned listing on NYSE American will not proceed as scheduled due to the U.S. Securities and Exchange Commission (SEC) still reviewing its registration statement, despite the statement being declared effective at the end of April. The company, which intended to uplist from OTC trading to expand […]
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