PRESS RELEASE. Dubai, UAE – Enegix Global, a leading player in the digital mining infrastructure industry based in the UAE, is excited toannounce the launch of its new brand, 21pool. The brand’s flagship product is a bitcoin mining pool that specializes in aggregating the computational power of miners to increase payouts. 21pool utilizes the most […]
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EOS Network Foundation Founder: Bitcoin Halving Spurs Development of Solutions Enhancing Network Efficiency
With Bitcoin transaction fees recently becoming a more critical component of miner revenue, Yves La Rose, CEO of Exsat, believes there is “an increased incentive to adopt and develop solutions that enhance transaction throughput and network efficiency.” According to La Rose, this can be achieved by integrating advanced layer two (L2) solutions which expand the […]
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Bitcoin Network Adjusts to Lower Fees and Reduced Hashrate After Latest Halving
Based on the three-day simple moving average, Bitcoin’s hashrate has continued its downward trend, registering at about 550 exahash per second (EH/s). Following the halving, onchain costs have decreased significantly, with data indicating transfer fees ranging from .50 to .65 per transaction. Bitcoin’s Hashrate Slides 19% in 16 Days According to statistics, the three-day simple […]
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The Halving Effect: Bitcoin Hashrate Decreases as Miners Prepare for Probable Difficulty Drop
Just over two weeks have passed since the fourth Bitcoin halving took place. During this period, the network’s hashprice dropped from over 0 per petahash to below at the beginning of May. It has since increased to per petahash. Despite the modest rebound, the network’s total hashrate has experienced a decrease, with a […]
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‘Epic Satoshi’ From Bitcoin’s 4th Halving Fetches Over $2.13 Million at Coinex Auction
The renowned ‘epic satoshi’ from the fourth halving block, also known as Sat # 1,968,750,000,000,000, fetched a price of 33.3 bitcoins, valued at just over .13 million on Thursday afternoon Eastern Standard Time. This satoshi, the smallest denomination of BTC, was sold for an astonishing 338 billion percent more than the typical value of a […]
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Is Bitcoin’s Rally Over? Leverage Drops As Halving Highs Fade: Report
Recent trends in the crypto market have indicated a notable shift in trader behavior, particularly among those investing in Bitcoin.
Using data from CryptoQuant, Bloomberg has revealed that the Bitcoin funding rate—the cost for traders to open long positions in Bitcoin’s perpetual futures—has turned negative for the first time since October 2023.
This change suggests a “cooling interest” in leveraging bullish bets on Bitcoin, coinciding with the fading impact of major market drivers.
Bitcoin Market Dynamics Post-Halving
The decline in Bitcoin’s funding rate correlates with a reduction in net inflows to US spot Bitcoin Exchange-Traded Funds (ETFs), which previously pushed the cryptocurrency to record highs.
Despite the anticipation surrounding the Bitcoin Halving—an event reducing the reward for mining new blocks and theoretically lessening the supply of new coins—the price impact has been surprisingly muted.
According to Bloomberg, this subdued response has compounded the effects of broader economic factors, such as geopolitical tensions and changes in monetary policy expectations, leading to increased risk aversion among investors.
Following the latest Bitcoin halving, the market has not seen the bullish surge many expected. Instead, Bitcoin has only seen a correction of over 10%, from its all-time high (ATH) in March with prices stabilizing in the ,000 region, at the time of writing.
As CryptoQuant’s Head of Research Julio Moreno pointed out, the recent downturn in Bitcoin’s funding rates to below zero underscores a “decreased eagerness” among traders to take long positions.
According to Bloomberg, this trend is supported by a significant drop in daily inflows to US spot Bitcoin ETFs and a reduction in open interest in Bitcoin futures at the Chicago Mercantile Exchange (CME), which indicates a broader cooling of enthusiasm for crypto investments.
[1/4] Bitcoin ETF Flow – 25 April 2024 – UPDATE pic.twitter.com/ojRayOFlnu
— BitMEX Research (@BitMEXResearch) April 25, 2024
In a Bloomberg report, K33 Research analyst Vetle Lunde noted that the “current streak of neutral-to-below-neutral funding rates is unusual,” suggesting that the market might be entering a price-consolidation phase.
Notably, this period of reduced leverage activity could potentially lead to further price stabilization, but it also raises questions about the near-term prospects for Bitcoin’s recovery.
Adjustments In Mining Difficulty And Market Implications
Interestingly, alongside these market adjustments, Bitcoin’s mining difficulty has increased for the first time immediately following the fourth halving.
The difficulty adjustment, which occurs every 2016 block, increased by 2%, reaching a new high of 88.1 trillion, according to Bitbo data.
This adjustment contradicts past trends where the difficulty typically decreased post-halving due to reduced profitability pushing less efficient miners out of the market.
This anomaly in mining difficulty suggests that despite lower rewards post-Halving, miners remain active, possibly buoyed by more efficient mining technologies or strategic shifts within mining operations.
This resilience in mining activity could help sustain the network’s security and processing power. Still, it reflects the complexities of predicting Bitcoin’s market dynamics solely based on historical halving outcomes.
Featured image from Unsplash, Chart from TradingView
Bitwise CIO Unveils 5 Major Forecasts For Bitcoin 2028 Halving, Anticipates A 280% Price Surge
Bitwise Chief Information Officer (CIO) Matt Hougan recently shared five interesting predictions for the next Halving of the Bitcoin (BTC) network, scheduled for 2028. In a comprehensive report, Hougan sheds light on the potential transformations for the world’s leading cryptocurrency.
New Investors And ETFs As Catalysts
One of Hougan’s key predictions is that Bitcoin’s volatility will significantly decline by 50%. He argues that the entry of new investors through the spot Bitcoin exchange-traded fund (ETF) market will drive this decline.
Hougan said that as financial advisors, family offices, and institutions enter the Bitcoin market, their different investment behaviors – such as portfolio rebalancing and steady drip investments – could introduce counter-cyclical flows, ultimately dampening Bitcoin’s volatility.
Hougan’s second prediction revolves around the allocation of Bitcoin in portfolios. He believes that 5% allocations to Bitcoin will become commonplace in target-date portfolios. As BTC’s volatility decreases and becomes more attractive to institutional investors, Hougan expects a rise in typical portfolio allocations.
The Bitwise CIO predicts that Bitcoin ETFs will attract over 0 billion in inflows. He highlights their impressive growth and cites their status as the fastest-growing new ETF category of all time.
Hougan suggests that the ETF market is still in its early stages, with national wirehouses and institutions just beginning their due diligence. Drawing parallels with the rise of gold ETFs, which experienced year-after-year growth in net flows, he anticipates a similar trend for Bitcoin ETFs.
Bitcoin Price Path Toward 0,000
In an intriguing projection, Hougan suggests that central banks will allocate funds to Bitcoin before the next Halving event. He notes that central banks have historically been significant investors in gold, accumulating substantial amounts of the metal.
However, with Bitcoin’s characteristics as non-debt money and its functional advantages over gold regarding payments and settlement, Hougan believes central banks will be increasingly drawn to Bitcoin. Hougan further noted on this matter:
There is also an element of game theory here. A major central bank adopting Bitcoin as a reserve asset would be a game-changer for Bitcoin and, I believe, would contribute to a dramatic increase in prices. Will one central bank try to front-run the others?
Hougan’s final prediction revolves around Bitcoin’s price. He forecasts that Bitcoin will trade above 0,000 by 2028, an increase of nearly 280% from current levels.
The Bitwise CIO attributes Bitcoin’s previous exponential growth to its transition from a speculative asset to one with real-world utility.
Factors such as declining volatility, improved custody options, low correlations to traditional stocks, enhanced accessibility through ETFs, and growing institutional adoption all contribute to Hougan’s optimism regarding Bitcoin’s future progress. Hougan concluded by stating:
With the ETFs launched and gathering assets—and major Wall Street firms lining up behind bitcoin—I suspect the asset will continue to move further into the mainstream. At 0,000, bitcoin would be a trillion asset. Could it go higher? Of course. But 0,000 would represent solid progress between halvings, and I think we’ll see at least that.
Currently trading at ,500, BTC is down nearly 3% in the past 24 hours after retesting the ,000 mark on Tuesday and failing to consolidate above that level.
Featured image from Shutterstock, chart from TradingView.com
Samson Mow On Bitcoin Halving: Brace For Supply Shock, Omega Candle In Sight
Samson Mow, the chief executive at Jan3, recently spoke to Forbes about the latest Bitcoin halving and its potential to catalyze what he refers to as the “Omega candles” – significant price movements that could elevate Bitcoin to the million mark.
According to Mow, halvings ensure a controlled distribution of Bitcoin, maintaining scarcity and value.
The Mechanics Of Halving And Its Market Implications
Samson Mow detailed in the interview with Forbes the mechanics behind Bitcoin halvings—a critical process built into Bitcoin’s framework by its creator, Satoshi Nakamoto.
Omega Candle in sight! Omega Candle in sight! The #halving is proof that this system works, but it also means a supply shock is coming for any parties looking to buy large amounts of #Bitcoin. Check out @Excellion‘s comments on the recent halving in this @Forbes article by… pic.twitter.com/xp23ulxQIJ
— JAN3 (@JAN3com) April 22, 2024
This mechanism is designed to halve the block rewards given to miners every 210,000 blocks, or approximately every four years, reducing the reward by 50%.
So far, the most recent halving has reduced the reward for mining from 6.25 BTC to 3.125 BTC per mined block. However, initially, miners received 50 BTC per block.
Still, due to the halvings, this amount has decreased over time to manage inflation and extend the mining lifecycle of Bitcoin’s capped supply of 21 million coins. If not for these halvings, the total supply of Bitcoin would have already been mined.
In the same discussion, Mow highlighted the significant impact of newly approved spot-based Bitcoin ETFs, which received SEC approval earlier this year. He believes these ETFs, combined with the reduced block rewards from the halving, could precipitate a “supply shock” in the BTC market.
Mow further speculated on the occurrence of what he calls “Omega candles”—large price movement events in the Bitcoin market.
He noted that even before the recent halving, the daily demand for Bitcoin was significantly outstripping supply, predicting these Omega candles as almost certain events due to their high volatility and substantial price changes.
Mow views these developments as marking the beginning of a new era for Bitcoin, coinciding with its next, or fifth, halving in the coming four years.
Bitcoin Bright Future And Market Performance
Regarding positive sentiment on Bitcoin, Geoff Kendrick of Standard Chartered also supports this bullish outlook, projecting substantial inflows into BTC akin to those experienced by gold with the advent of gold ETFs.
Kendrick suggests that the maturation of the spot ETF market could channel between and 0 billion into BTC.
However, despite the post-halving price not reaching the anticipated heights, BTC has demonstrated resilience and potential for considerable growth. Meanwhile, analysts remain confident, predicting significant long-term value increases.
For instance, Michael Sullivan’s analysis suggests a possible reach of 5,000 by 2029 if BTC maintains a 30% compound annual growth rate, underlining the optimistic projections shared by several market experts.
This optimism is further supported by recent trends, including a 7.1% increase in Bitcoin’s price over the last week, which indicates a possible recovery on the horizon.
Featured image from Unsplash, Chart from TradingView
Unstoppable Domains x Bitcoin․com Halving Campaign With .Bitcoin Domains
In celebration of the Bitcoin halving event, Unstoppable Domains partners with Bitcoin.com to offer personalized .bitcoin domain names, enhancing user experience with simplified cryptocurrency transactions within the Bitcoin.com Wallet app. Unstoppable Domains, a leading provider of blockchain-based domain names, together with Bitcoin.com, makers of the prominent Bitcoin.com Wallet App and Bitcoin.com News site, are thrilled […]
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Crypto Exchange Coinex Set to Auction ‘Epic Satoshi’ From Halving Block for 1 BTC Minimum
At 8:09 p.m. ET on April 19, 2024, the mining pool Viabtc successfully excavated block 840,000. This block notably encompassed 37.625 bitcoins from transaction fees, alongside a 3.125 bitcoin reward. This significant block also included a rare bitcoin element known as the “epic sat,” which some estimations value highly. On Monday, Viabtc Group’s exchange Coinex […]
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