Renowned investor Stanley Druckenmiller has criticized Bidenomics, stating that he would give it an F if he was a professor. “Treasury is still acting like we’re in a depression,” he said, adding that “they’ve spent and spent and spent.” Moreover, Druckenmiller stressed: “Now, you’ve got blockchain, you’ve got AI, you’ve got the whole thing. All […]
Bitcoin News
Anticipation Builds as Bitcoin Stands Less Than 1,400 Blocks From Monumental Halving
According to the latest data, we are now less than 1,400 blocks away from the anticipated Bitcoin halving event, which will decrease the block reward from 6.25 bitcoin to 3.125 bitcoin. Bitcoin’s value soared to a new all-time high on March 14, reaching ,794 per bitcoin, but has since seen a 6.5% decline. Observers are […]
Bitcoin News
Bitcoin Halving Inches Closer With Less Than 2,900 Blocks Left
The Bitcoin Halving is fast approaching, with less than 2,900 blocks left before miners’ rewards are cut in half. This event, projected to take place sometime in April, is significant as Bitcoin’s price could enjoy a parabolic move to the upside after it takes place.
Bitcoin Halving Set For April 19
Data from Coinwarz shows that the Bitcoin Halving is set to take place on April 19 at Block 840,000. This projection is based on Bitcoin’s current block time average, which means the Halving can come a little earlier or sometime after April 19. However, the main focus remains that miners’ supply will be cut in half.
The Halving event is a deflationary measure that Bitcoin’s founder, Satoshi Nakamoto, encoded in the flagship crypto and takes place after every 210,000 blocks. Three halving events have occurred since the Genesis block in 2009, when Bitcoin’s first block was mined. The first was on November 28, 2012, when miners’ rewards were cut from 50 BTC to 25 BTC.
The next Halving event took place on July 9, 2016, cutting miners’ rewards to 12.5 BTC. The third one happened on May 11, 2020, reducing the reward to 6.25 BTC. Now, Miners’ rewards are set to be cut in half again, reducing them to 3.125 BTC.
This reward is the amount of BTC miners receive for validating each block of new transactions on the blockchain. Although this event mainly affects miners, the crypto community closely monitors it due to the ripple effects it could have on the market. Bitcoin’s supply comes through these miners’ rewards, and a reduction in them usually drives Bitcoin’s value higher.
The Halving has historically always led to a price appreciation for Bitcoin. Ninety days after the first Halving on November 28, 2012, Bitcoin’s price increased to ,000 from at the time of Halving. Subsequently, Bitcoin’s price saw a gain of over 8,000% one year after that Halving.
This parabolic price surge also occurred after the second and third Halving events, with Bitcoin’s price rising from 0 and ,821 (at the time of the Halving) to ,506 and ,612 (90 days after the Halving) in 2016 and 2020 respectively. Bitcoin also gained 284% and 559% one year after the event.
This time isn’t expected to be different as Bitcoin is again predicted to experience a massive move to the upside after April. This bullish sentiment is further strengthened by Bitcoin’s demand, which has continued to skyrocket in the face of a dwindling supply.
At the time of writing, Bitcoin is trading at around ,400, up in the last 24 hours according to data from CoinMarketCap.
44-Day Bitcoin Drain: Coinbase and Binance Shed 76,179 BTC in Less Than 2 Months
Recent figures show that over a span of 44 consecutive days, 76,179 bitcoins, worth .41 billion, have been moved out of Coinbase and Binance, the two leading cryptocurrency exchange and custodial firms by reserve size and total trade volume. Robinhood Bucks Trend With Bitcoin Inflows as Coinbase and Binance Face Outflows A significant volume of […]
Bitcoin News
Less Than 15,000 Blocks to Halving: ETF Hopes and Ordinal Inscriptions Serve as Life Preserver for Bitcoin Miners
As of Jan. 9, 2024, fewer than 15,000 blocks remain before the fourth Bitcoin halving event. This milestone will halve the block reward from 6.25 to 3.125 bitcoins per block. Expected to occur in April 2024, this event will render bitcoin increasingly scarce. However, it may exert considerable pressure on miners, seeing their earnings cut by 50% following the halving.
2 Key Trends Buoy Miners Ahead of 2024 Milestone
The Bitcoin halving event is approaching and is estimated to be just over 100 days away, assuming block times maintain their average of ten minutes. Current statistics, as of this writing, indicate that 14,981 blocks remain until the halving.
This upcoming event marks the fourth halving; the first occurred on Nov. 28, 2012, followed by the second on July 9, 2016, and the third on May 11, 2020. Before these halving epochs, especially preceding the 2016 and 2020 events, certain skeptics of bitcoin predicted a ‘mining death spiral’ accompanied by substantial miner capitulation.
In the past, bitcoin detractors have claimed that a mining death spiral could occur post-halving due to reduced block rewards. They argue that this decrease in profitability may lead to miners exiting the network en masse, resulting in a drop in hashing power, slower transaction times, and potential security vulnerabilities, thus destabilizing the entire Bitcoin network.
However, a 2020 research study by Coinshares dismissed these concerns as “highly theoretical edge cases without any historical real-world precedent.” As the 2024 halving nears, these once-prominent theoretical concerns have significantly diminished.
Up to this point, two key developments have enhanced the earnings of bitcoin miners: the anticipation of a U.S. spot bitcoin exchange-traded fund (ETF) approval and the burgeoning Ordinal inscription trend. Mining revenue saw a substantial rise throughout 2023 and this trend has persisted into the new year.
The positive sentiment surrounding the potential approval of a spot bitcoin ETF has boosted BTC’s value, consequently increasing the network’s hash price. The surge in activity, coupled with the popularity of Ordinal inscription minting, has significantly raised transaction fees. If these trends persist, miners might not experience a significant impact from these changes.
Although current fees are lower than last month, they remain notably higher than the same period last year. The potential approval of an ETF has led crypto enthusiasts to anticipate significant demand for bitcoin from these publicly traded funds, potentially maintaining BTC’s high price for an extended period.
As with previous halvings, the outcome remains uncertain, and bitcoin miners have historically operated under tight conditions. However, major mining operations with substantial capital are scaling up their hashrate significantly by acquiring thousands of advanced mining rigs.
With these more efficient miners and increased hashrate outputs, coupled with the potential price support from an ETF and higher fees due to inscriptions, bitcoin miners are expected to remain resilient, similar to their experience during the past three halving events.
What do you think about the upcoming Bitcoin halving event? Share your thoughts and opinions about this subject in the comments section below.
Rising Liquidity Will Push Bitcoin To Over $200,000 In Less Than 5 Months: What It Means
According to Dan Tapiero, Managing Partner at 10T Holdings, the Bitcoin and crypto market is on the verge of a major transformation, with the world’s most valuable coin likely to soar to over 0,000 by May 2024. Citing data by Raoul Paul, the CEO of Real Vision, Tapiero suggests that traditional money managers must take notice and prepare for a paradigm shift in the financial landscape.
Bitcoin Could Rally To Over 0,000 In 2024 On Rising Liquidity
Tapiero bases this bullish forecast on the expected BTC liquidity surge in the coming months. Market participants hope the stringent Securities and Exchange Commission (SEC) will approve the first batch of Bitcoin ETFs in the next few trading weeks.
The Bitcoin ETF, set to be issued by some mainstream players in traditional finance, including BlackRock, will provide regulated vehicles through which institutional investors can get exposure to the coin. Based on Tapiero’s analysis, as more and more institutions adopt Bitcoin, its liquidity will increase, boosting prices.
With a Bitcoin ETF on the table, it would also mean the release of institutional-grade Bitcoin trading platforms. This will cement Bitcoin’s position in the industry and its potential role in reshaping finance.
Paul’s monthly GMI data, which tracks the sentiment of institutional investors, as Tapiero mentions, further reinforces the general bullish sentiment across the board. Looking at the GMI total liquidity index, the trend has been rising, suggesting that institutional interest in Bitcoin has also increased.
This trend also indicates that more funds and asset managers are likely allocating more of their portfolios to Bitcoin, expecting to ride the leg up or be on the safe side.
Traditional Fund Managers Watching, BTC Up 64% From September Lows
Looking at Tapiero’s preview, the managing partner thinks rising prices will seriously affect traditional money managers. As such, if Bitcoin rallies to 0,000 on increasing liquidity, in the partner’s assessment, ignoring this asset class could pose a significant career risk.
Notably, Tapeiro opines that managers who fail to embrace the transformative power of Bitcoin may trail. This is because crypto will continue to evolve and find adoption.
As of December 18, Bitcoin is firmly in an uptrend and expanding with rising trading volume. The coin is up 64% from its September 2023 lows. Though there has been a cool-off in the past few trading days, prices are trending above the 20-day moving average.
Accordingly, in the days ahead, how prices pan out will shape the medium term. As it is, the immediate resistance level lies at around ,500. If buyers take charge, the coin may float to ,000. Afterward, it may float to the all-time high of ,000 in the sessions ahead.
Study: Less Than 5% of South Africa-Based Crypto Asset Providers Generate Revenues Exceeding $8 Million
Only five percent of surveyed South African crypto-asset financial service providers (FSPs) are generating revenue between million and million. The Financial Sector Conduct Authority study found that many of the crypto asset FSPs “earn their revenue from trading fees.”
Only 10% of FSPs Derive Income From Both Regulated and Unregulated Financial Services
According to findings of a crypto market study conducted by the South African financial services industry watchdog, approximately 46% of the crypto asset financial service providers generated revenues equivalent to between ,000 and .68 million. On the other hand, 38% of the crypto asset FSPs said they received revenue of less than ,000. Only five percent are generating revenue between million and million.
The data shows that only five per cent of the FSPs generate revenues between million and million. Out of all the FSPs that responded substantively to the regulator’s information request, 10% derived their income from “both regulated and unregulated financial services.”
As noted by the Financial Sector Conduct Authority (FSCA), some 47 crypto asset FSPs participated in the crypto market study. Explaining the rationale behind its decision to conduct the study, the FSCA said the information gathered is expected to support its work by “highlighting consumer exposure to crypto assets.” The information may also help the authority “identify risks that may negatively impact consumer well-being.”
Meanwhile, 49% of the surveyed crypto-asset financial service providers (FSPs) said they run a crypto exchange. Some 19% of the respondents offer advisory services relating to crypto assets, while 15% identified themselves as crypto brokers. Only 2% said they offer custodial services.
93 License Applications Received
The FSCA study also found that most of the crypto asset FSPs “earn their revenue from trading fees” while their remuneration models are largely identical to traditional financial revenue models.
During a Nov. 30 media briefing, the FSCA said it had received 93 license applications from current FSPs and “completely” new applicants. However, according to the FSCA’s Diketso Mashigo, some applicants eventually decided against seeking a South African license.
“Some decided to take their business out of the country and conduct their services elsewhere in other foreign jurisdictions.”
Mashigo also revealed that some applicants submitted their license applications just days before the November 30 deadline.
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AI-Focused Cryptocurrency Sector Expands by $2 Billion in Less Than 2 Weeks
Recent market data reveals a significant surge in the AI-focused cryptocurrency sector, with its value ballooning by nearly billion in just under two weeks. A major contributor to this growth is the token bittensor (TAO), which soared 86.5% in the last fortnight.
AI Crypto Economy Rebounds Strongly
In the AI-oriented crypto landscape, the past month has been marked by impressive growth. The top six AI tokens have all experienced double-digit percentage increases. TAO leads the pack with a striking 207% rise in the last 30 days. Following closely, fetch (FET) has climbed 46.34%, and covalent (CQT) has risen 41.91% against the U.S. dollar during the same period.
In the past month, the graph (GRT) experienced a 35% increase, while singularitynet (AGIX) witnessed a 28% uptick in its value. As of 12 days ago, on November 17, 2023, the valuation of the AI-centric crypto economy stood at .32 billion. This was a recovery to previous levels, achieved over three months, adding approximately 0 million from its July end low of .6 billion.
In just the last 12 days, the sector has expanded by an impressive .97 billion. This growth is largely attributed to TAO’s rise, escalating from a market value of 9 million on October 29 to today’s .297 billion. Cortex (CTXC) also emerged as a significant player in the AI-focused arena, climbing from the 17th to the 11th position in terms of market capitalization.
CTXC’s market value soared from million to a current .62 million, following a 194.12% surge this past month. However, not all AI-centric cryptocurrencies fared well over the same period. GOC, XMON, NEURONI, ARCONA, AMC, DX, XRT, and ALI all recorded double-digit declines during the 30-day timeframe.
What do you think about the AI crypto sector’s recent rise? Share your thoughts and opinions about this subject in the comments section below.
Shiba Inu Burn Rate Crashes 98.79% With Less Than 1 Million tokens Burned
The majority of cryptocurrencies have started to turn green in terms of their price movement, which has led to Shiba Inu seeing gains of 2% over the past 24 hours. In spite of the modest increase in price, the SHIB burn rate seems to have taken a massive nosedive.
According to the official SHIB burn tracker, Shibbburn, only 983,884 SHIB tokens were burned in the last 24 hours, representing a decline of over 99% from the previous day. A significant reduction of this kind in the burn rate is guaranteed to raise concerns from investors on the likelihood of downward pressure on SHIB’s price in the short term.
SHIB Burn Rate Plummets 98.79%
The primary purpose of the Shiba Inu burning is to reduce the amount of SHIB tokens in circulation, hence fostering scarcity and subsequently driving up the value of SHIB tokens in circulation. SHIB tokens are burned sporadically, with some days witnessing more token burn than others. For example, the first SHIB burn on Shiba Inu’s layer-2 solution Shibarium amounted to 97 Million SHIB tokens.
According to the Shibburn website, a total of 983,884 SHIB tokens were burnt in the past 24 hours in three transactions, with the most being 42,850 SHIB tokens transferred to an inactive wallet. This figure translates to a 98.79% decrease in the number of tokens burned, a significant decline compared to the prior days.
To put this into perspective, a total of 81.26 million SHIB tokens were burnt yesterday, and more than 49.76 million SHIB tokens were burnt two days ago.
Implications For Shiba Inu Investors
SHIB tokens can be burnt by any investor by sending tokens to any of the three SHIB burn addresses. According to the Shiba Inu community’s marketing lead, SHIB burns are a community effort. Data from the Shibburn website shows that more than 410 trillion SHIB tokens have been burnt from the initial supply.
This trend of the reduction in SHIB burn rate seems to have been going on for a while, as interest seems to be waning since the burn seems to have no effect on the price. As records from Shibburn show, October saw a decline of 37.12% in SHIB burns when compared to September. The burn rate performance slowed down throughout the month, despite the cryptocurrency’s price spiking more than 17% from its October bottom.
SHIB is currently trading at .000008687, still up by 23.75% in the past 30 days. SHIB’s journey to seems bleak at the moment, considering there are more than 589 trillion SHIB in circulation. SHIB burns will have to play an important part before the cryptocurrency can reach the mark as they will help to decrease the total supply.
Glassnode Data Shows Bitcoin Supply Less Liquid Than Ever Despite Market Gains
The scarcity of the bitcoin supply has tightened, as revealed by the recent Glassnode study on onchain activities. Observations show that the inactivity of coins is touching both multi-year and unprecedented peaks, despite a substantial uptick in bitcoin’s value throughout the current year.
Bitcoin’s Tightening Supply Defies Price Rally, Reveals Glassnode Study
Reflecting on the trend over the last year, BTC has surged by 71% and has marked a 114% increase from the start of the year to date. Glassnode’s latest report indicates that despite these surges in price, the availability of bitcoin remains limited, dominated by steadfast holders.
Taking a closer look, the onchain report shows that a share of bitcoin (BTC) that hasn’t moved in over a year stands at 68.8%, and the non-liquid supply index has risen to a record-breaking 15.4 million BTC. The Glassnode team has pinpointed that the cache of bitcoin held by long-term investors is approaching record levels, while the supply by short-term investors has plummeted to unprecedented lows.
Glassnode details that the growing gap indicates a solidifying of supply, as current investors are showing reluctance to part with their holdings. Since July 2022, the disparity between the supplies held by long-standing and recent investors has expanded, reaching new heights and underscoring the stark contrast between dormant and circulating supplies.
Moreover, the newly introduced Glassnode metric called the Activity-to-Vaulting Ratio has been on a decline since June 2021, with a notable dip in the trajectory post-June 2022. According to Glassnode, this shift signifies the waning of the 2021-22 cycle’s market “exuberance.”
The researcher’s analysis of spending patterns reveals a trend of investor accumulation and retention, as opposed to active trading. The post-rally Sell-Side Risk Ratio for short-term holders soared, signaling some profit-taking in the short run, while this metric for long-term holders remains notably low in a historical context.
Glassnode’s evaluation of wallet activity notes striking contributions to wallet sizes across the board, indicating a boost in investor confidence. The “Shrimps” and “Crabs” are buying into bitcoin en masse, having absorbed 92% of the bitcoin mined since May 2022. “Shrimps” hold less than one bitcoin, “Crabs” command 1-10 BTC, and “Fish” hold anywhere between 10-100 BTC.
Concluding their observations, Glassnode analysts assert, “The bitcoin supply is historically tight with many supply metrics describing ‘coin inactivity’ reaching multi-year, and even all-time highs. This suggests that the [bitcoin] supply is extremely tightly held, which is impressive given the strong price performance [year-to-date].”
What do you think about Glassnode’s report concerning the tightening bitcoin supply? Share your thoughts and opinions about this subject in the comments section below.