Crypto startup funding rose to .4 billion in the first quarter of 2024, driven by expectations of lower interest rates and the launch of the first U.S. bitcoin spot exchange-traded funds (ETFs), according to Pitchbook data. This funding, spread across 518 deals, marked a 40.3% increase from the previous quarter, even as global venture capital […]
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BNB Coin Price Hits Critical Support Level: Is a Rebound on the Horizon?
BNB price started a downside correction from the 5 zone. The price must stay above 0 to start a fresh increase in the near term.
- BNB price started a fresh decline after it failed to clear the 5 resistance zone.
- The price is now trading below 0 and the 100 simple moving average (4 hours).
- There is a key bullish trend line forming with support near 0 on the hourly chart of the BNB/USD pair (data source from Binance).
- The pair could start a fresh increase if it stays above the 0 support.
BNB Price Holds Support
After a decent increase, BNB price struggled near the 5 resistance. As a result, there was a bearish reaction below the 0 support, like Ethereum and Bitcoin.
The price dipped below the 5 support and the 100 simple moving average (4 hours). It traded as low as 1 and is currently consolidating losses. There is also a key bullish trend line forming with support near 0 on the hourly chart of the BNB/USD pair.
There was a minor upward move above the 5 level. The price cleared the 23.6% Fib retracement level of the downward move from the 6 swing high to the 1 low. It is now trading below 0 and the 100 simple moving average (4 hours).
Immediate resistance is near the 8 level or the 50% Fib retracement level of the downward move from the 6 swing high to the 1 low. The next resistance sits near the 2 level.
A clear move above the 2 zone could send the price higher. In the stated case, BNB price could test 8. A close above the 8 resistance might set the pace for a larger increase toward the 0 resistance. Any more gains might call for a test of the 2 level in the coming days.
More Losses?
If BNB fails to clear the 2 resistance, it could continue to move down. Initial support on the downside is near the 2 level and the trend line.
The next major support is near the 2 level. The main support sits at 0. If there is a downside break below the 0 support, the price could drop toward the 2 support. Any more losses could initiate a larger decline toward the 5 level.
Technical Indicators
Hourly MACD – The MACD for BNB/USD is losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BNB/USD is currently below the 50 level.
Major Support Levels – 2, 2, and 0.
Major Resistance Levels – 2, 8, and 0.
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Bitcoin Hits $67K, Leading to $45M in Short Position Liquidations
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New Crypto Presale to Watch: WienerAI Meme Coin Hits $2M Milestone
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Pepe Price Prediction as it Hits New ATH – Does WienerAI Have Higher Potential?
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Bitcoin’s Significant Adjustment: Mining Difficulty Hits 18-Month Low – What’s Next For Miners?
The Bitcoin mining difficulty has experienced a significant decrease, the largest drop observed in the last 18 months. This change is directly tied to fluctuations in the network’s hash rate, which has dipped below 600 EH/s following the recent halving event.
The adjustment, which marks a 5.7% fall in mining difficulty, brings the level down to 83.1 trillion, according to data from Bitbo.
This most substantial adjustment since December 2022 reflects broader shifts within the Bitcoin mining landscape. At that time, Bitcoin’s price hovered around ,000, contrasting sharply with current levels.
Notably, the mining difficulty, a metric that determines how challenging it is to find a new block, adjusts approximately every two weeks, or every 2016 blocks. This system ensures that block discovery remains consistent at around every 10 minutes, irrespective of the number of miners.
Impact On Miners And Market Dynamics
The recent decline in mining difficulty came after a 10% drop in the network’s hash rate from a seven-day moving average of 639.58 EH/s to 581.74 EH/s.
This decrease in hash rate led to longer average block times of about 10 minutes and 36 seconds, up from the standard 10 minutes, before the difficulty adjusted downward at block height 842,688.
The reduced hash rate also contributed to a new low in the hash price, which fell to roughly .049 per TH/s per day.
This decline impacts miners’ profitability, as the hash price, a term introduced by Bitcoin mining firm Luxor, represents the earnings a miner can expect per unit of hashing power per day.
However, today’s negative difficulty adjustment may provide some relief for miners, making it easier to mine blocks than in the previous two weeks.
Bitcoin Market Reactions And Investment Trends
The adjustments in mining difficulty and hash rate come when Bitcoin’s price also shows signs of volatility. After reaching a peak above ,000 in March, the price has fallen by 16% and is now trading around ,376.
This decline mirrors the broader trend in the mining difficulty, suggesting a possible correlation between these metrics.
Furthermore, the market has observed subdued activity in the spot Bitcoin exchange-traded funds (ETFs). Data from Soso Value indicates minimal net inflows or outflows, with Bitwise Bitcoin ETF being the only issuer that experienced inflows yesterday.
On May 8, the total net inflow of Bitcoin spot ETF was .5409 million. Grayscale ETF GBTC has no inflows and outflows. Bitwise ETF BITB saw a single-day net inflow of .5409 million. The total net asset value of Bitcoin spot ETFs is .504 billion. https://t.co/OkjFkXsACa
— Wu Blockchain (@WuBlockchain) May 9, 2024
This trend could signify a cooling interest in Bitcoin investments or a shift in investor strategy following the recent price and mining adjustments.
Feature image from Unsplash, Chart from TradingView
Ethereum Burn Rate Hits Yearly Low: What This Means For ETH’s Future
In recent weeks, Ethereum has displayed subtle signs of recovery amidst a generally bearish crypto market, with the altcoin mimicking Bitcoin’s modest uptrend.
Despite Ethereum’s price increasing slightly by 0.2% over the last 24 hours, a parallel trend that might significantly affect Ethereum’s economic model has been unfolding beneath the surface.
Decline In Network Activity Reduces ETH Burn
April witnessed Ethereum’s ETH burn rate hitting an annual low, primarily due to a significant decrease in network transaction fees.
These fees have typically fluctuated just below 10 gwei this year, but recent weeks have seen them dip to some of the lowest levels, directly influencing the rate at which ETH is burned.
This reduced burn rate is evidenced by the stark drop in daily burned ETH, which reached a low of 671 ETH in the past day a notable decrease from the daily figures of 2,500–3,000 ETH seen earlier in the year.
Such a decline in burn rate is not merely a statistical anomaly but a reflection of broader shifts within the Ethereum network.
A significant factor contributing to the lowered gas fees is the increased migration of network activities to Layer 2 solutions, which enhance transaction speeds while lowering costs.
Moreover, innovations like blob transactions, introduced in Ethereum’s recent Dencun upgrade, have further optimized costs on these secondary layers.
Notably, Blobs are a feature introduced to enhance Ethereum’s compatibility with Layer 2 solutions like zkSync, Optimism, and Arbitrum by efficiently managing data storage needs. This functionality is part of the Dencun upgrade, which integrates proto-danksharding via EIP-4844.
While beneficial in reducing transaction fees, these technological strides pose challenges to Ethereum’s deflationary mechanisms.
This upgrade introduced a new fee structure in which a part of every transaction fee, the base fee, is burned, potentially reducing the overall ETH supply. However, with decreased transaction fees, the anticipated deflationary pressure via burning has softened, signaling a shift to a more inflationary trend in the short term.
According to Ultrasoundmoney, Ethereum’s supply dynamics have swung to a mildly inflationary mode with a growth rate of 0.498%. This shift could realign if network activity intensifies, leading to increased transaction fees and, consequently, higher burn rates.
Ethereum Market Response
Despite these underlying network dynamics, Ethereum’s market price has struggled to regain its former highs above ,500. The asset trades around ,085, reflecting a slight downturn over recent weeks.
This price behavior underscores the broader market’s reaction to internal network changes and external economic factors, such as regulatory struggles from the US Securities and Exchange Commission (SEC) and macroeconomic uncertainties.
Looking ahead, the trajectory of Ethereum’s gas fees and subsequent ETH burn rate will be crucial in determining the sustainability of its economic model.
Featured image from Unsplash, Chart from TradingView
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USDT Stablecoin Supply on TON Blockchain Hits 130 Million in 2 Weeks
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