Ethereum rollups, the layer 2 scaling structures, have started reaping the benefits of the recently applied Dencun upgrade. The update, which included EIP-4844, also known as Proto-Danksharding, has allowed transaction fees to decrease by 99% in some cases, with Arbitrum, Base, Optimism, and Starknet becoming cheaper across the board. Ethereum Dencun Upgrade Reduced Rollup Fees […]
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‘Wolf of All Streets’ Sees Start of Major Bull Run for Bitcoin and Broader Crypto Market — Warns of a ‘Huge Bubble’
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Bitcoin News
Entry of Tradfi Institutions Can Help Reshape User Perceptions Towards Crypto — Sami Start
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Bitcoin News
Bitcoin Mining Firm CEO Predicts Start Of ‘Supercycle’, What It Means
In a series of statements made on X (formerly Twitter), Marc van der Chijs, the CEO of the publicly traded Bitcoin mining firm Hut 8, shared an optimistic outlook on the future of Bitcoin, suggesting that the cryptocurrency may be on the brink of a ‘supercycle.’ “I think I have never been more bullish about Bitcoin than I am right now,” he remarked, pointing to the cryptocurrency’s recent performance and the absence of widespread hype as a prelude to what he terms a ‘supercycle.’
Understanding the concept of a ‘supercycle’ is crucial to grasping van der Chijs’ perspective. Unlike regular market cycles that see periodic rises and falls, a supercycle in the Bitcoin domain refers to an extended period of bullish growth over several years. This phase is characterized by a substantial increase in adoption, demand, and price, often leading to far-reaching economic implications.
In essence, a supercycle marks a paradigm shift where the asset’s value escalates dramatically, supported by a continuous inflow of investment and a growing consensus about its long-term viability. To come to this conclusion, Van der Chijs’ prediction hinges on several observations and trends within the Bitcoin sector.
Why A Bitcoin Supercycle Could Be Possible
First, he notes a significant shift towards Bitcoin ETFs by funds, including yesterday’s landmark announcement from Blackrock’s Strategic Income Opportunities Fund. This movement signifies a robust institutional interest that could feed a constant stream of investment into Bitcoin, setting the stage for a supercycle.
“This will be a constant flow of new money into the ETFs. […] The flows into the ETF are getting bigger, not smaller,” van der Chijs remarked. With financial advisors poised to recommend Bitcoin ETFs to clients following a regulatory settling period, van der Chijs sees a torrent of new capital on the horizon. This anticipation is not unfounded, considering the groundbreaking success of the Bitcoin ETF launch, which he cites as “the most successful ETF launch ever.”
Corporate strategies around Bitcoin also play a pivotal role in van der Chijs’ supercycle theory. He points to Microstrategy’s aggressive leverage-based Bitcoin purchases as a harbinger of a trend where companies increasingly view Bitcoin not just as an investment, but as a fundamental aspect of their financial strategy. This shift, according to van der Chijs, could prompt other CEOs to follow suit, further accelerating Bitcoin’s ascendancy.
Moreover, a critical mass of financial advisors is on the brink of recommending Bitcoin ETFs to clients, pending the expiration of regulatory and due diligence waiting periods. This opens the gates for substantial new investments from a segment traditionally cautious about direct cryptocurrency investments. “They can’t sell the ETF during the first 90 working days (internal regulations mostly because of DD), although they are fast tracking it for this ETF,” van der Chijs stated.
FOMO And A Self-Fulfilling Prophecy
The speculation around unidentified large-scale Bitcoin acquisitions adds another layer to the supercycle narrative. Van der Chijs alludes to the intrigue surrounding a wallet that has been steadily accumulating Bitcoin, hinting at the involvement of a billionaire possibly akin to Jeff Bezos. “Since November 2023 a wallet has been adding on average about 100 BTC per day, the wallet now contains over 50,000 BTC,” he states, pointing to the potential for influential figures to catalyze broader market movements.
Another argument is potential purchases by nation-states. Although nation-state involvement in Bitcoin has been minimal, with El Salvador being a notable example, any increase in such activities could trigger a domino effect. The participation of nation-states in the Bitcoin market could significantly elevate Bitcoin’s status as a sovereign asset class.
Next, the retail sector remains largely on the sidelines in the current cycle, but van der Chijs anticipates a surge in retail interest following new all-time highs and increased media coverage. This could initiate a FOMO cycle, drawing more investment from traditional asset classes into Bitcoin.
Last, van der Chijs mentions the concept of a self-fulfilling prophecy: As Bitcoin continues to rise without significant dips due to constant new money inflow, more people and institutions will entertain the concept of a supercycle. This, in turn, could lead to increased capital allocation to Bitcoin, making the supercycle more likely.
Macroeconomic Implications Of A Supercycle
Van der Chijs’ theory also touches on the potential macroeconomic implications of a Bitcoin supercycle, predicting a significant shift in wealth and power structures. The redistribution of wealth could see Bitcoin at the center of a new economic order, with traditional asset classes potentially losing ground.
In conclusion, Marc van der Chijs outlines a compelling case for a forthcoming Bitcoin supercycle, supported by a confluence of institutional, corporate, speculative, and retail trends. He acknowledged the speculative nature of his prediction, “Right now I think there is a chance of maybe 10% that this will happen and that chance is (very slowly) going up.”
However, the implications could be massive. “[I]t will change the existing world order. It will suck money out of the stock and bond markets, out of gold and other commodities, and even out of real estate (global housing prices could collapse). This will lead to BTC prices that we can’t even imagine today, potentially millions of dollars per BTC.”
At press time, BTC traded at ,806.
ADA Price Reaches Key Juncture – Can Cardano Start A Fresh Surge?
Cardano (ADA) is correcting gains from the .642 resistance zone. ADA could start a fresh rally if it stays above the .5550 support zone.
- ADA price is showing a few bearish signs below the .600 level.
- The price is trading above .5550 and the 100 simple moving average (4 hours).
- There was a break below a key bullish trend line with support at .610 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
- The pair could attempt a fresh increase if the bulls remain active above the .570 support.
Cardano Price Dips To Support
After forming a base above the .520 level, Cardano started a fresh increase. ADA price was able to climb above the .555 and .565 resistance levels to move into a positive zone, like Bitcoin and Ethereum.
The bulls pushed the pair above the .600 resistance zone. However, the bears were active near the .6420 resistance zone. A high was formed near .6419 and the price started a downside correction. There was a move below the .600 level.
There was also a break below a key bullish trend line with support at .610 on the 4-hour chart of the ADA/USD pair. The price declined below the 23.6% Fib retracement level of the upward move from the .4718 swing low to the .6419 high.
ADA price is now trading below .600 and the 100 simple moving average (4 hours). The bulls might remain active near the .5700 support or the 50% Fib retracement level of the upward move from the .4718 swing low to the .6419 high.
Source: ADAUSD on TradingView.com
On the upside, immediate resistance is near the .600 zone. The first resistance is near .612. The next key resistance might be .620. If there is a close above the .620 resistance, the price could start a strong rally. In the stated case, the price could rise toward the .642 region. Any more gains might call for a move toward .680.
More Losses in ADA?
If Cardano’s price fails to climb above the .600 resistance level, it could continue to move down. Immediate support on the downside is near the .570 level.
The next major support is near the .5550 level. A downside break below the .5500 level could open the doors for a test of .5120. The next major support is near the .500 level.
Technical Indicators
4 hours MACD – The MACD for ADA/USD is losing momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major Support Levels – .570, .5550, and .5120.
Major Resistance Levels – .600, .6120, and .6420.
Bitcoin Price Revisits $50K, Why BTC Could Start A Short-Term Correction
Bitcoin price extended its rally above the ,800 resistance. BTC tested ,000 and is currently showing signs of a downside correction.
- Bitcoin price climbed higher above the ,500 and ,800 resistance levels.
- The price is trading above ,800 and the 100 hourly Simple moving average.
- There is a short-term rising channel forming with support at ,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a downside correction below the ,750 and ,500 levels.
Bitcoin Price Jumps 5%
Bitcoin price remained in a positive zone above the ,000 resistance zone. BTC extended its rally and climbed above the ,800 resistance zone. Finally, the price jumped above the ,000 level.
A new multi-week high was formed near ,339 and the price is now consolidating gains. There was a minor decline below the ,000 level. The price is still above the 23.6% Fib retracement level of the recent rally from the ,642 swing low to the ,339 high.
Bitcoin price is now trading above ,800 and the 100 hourly Simple moving average. There is also a short-term rising channel forming with support at ,750 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
Immediate resistance is near the ,250 level. The next key resistance could be ,400, above which the price could start another decent increase. The next stop for the bulls may perhaps be ,200. A clear move above the ,200 resistance could send the price toward the ,000 resistance. The next resistance could be near the ,000 level.
Downside Correction In BTC?
If Bitcoin fails to rise above the ,250 resistance zone, it could start a downside correction. Immediate support on the downside is near the ,750 level or the channel trend line.
The first major support is ,000 and the 50% Fib retracement level of the recent rally from the ,642 swing low to the ,339 high. If there is a close below ,000, the price could gain bearish momentum. In the stated case, the price could dive toward the ,650 support.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – ,750, followed by ,000.
Major Resistance Levels – ,250, ,400, and ,200.
Bitcoin Price Surges Past Resistance, Is This The Start of Fresh Uptrend?
Bitcoin price is gaining pace above the ,000 resistance. BTC could rise further if it clears the ,800 resistance zone in the near term.
- Bitcoin price was able to surpass the ,400 and ,500 resistance levels.
- The price is trading above ,000 and the 100 hourly Simple moving average.
- There was a break above a major rising channel with resistance at ,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to move up if it clears the ,800 resistance zone.
Bitcoin Price Starts Fresh Increase
Bitcoin price remained well-bid above the ,500 level. BTC started a fresh increase above the ,400 and ,500 resistance levels. Besides, there was a break above a major rising channel with resistance at ,650 on the hourly chart of the BTC/USD pair.
The pair even surged above the ,000 resistance zone. It traded to a new weekly high at ,780 and is currently consolidating gains. It is trading above the 23.6% Fib retracement level of the upward move from the ,767 swing low to the ,780 high.
Bitcoin is now trading above ,000 and the 100 hourly Simple moving average. Immediate resistance is near the ,800 level. The next key resistance could be ,000, above which the price could start another decent increase. The next stop for the bulls may perhaps be ,750.
Source: BTCUSD on TradingView.com
A clear move above the ,750 resistance could send the price toward the ,500 resistance. The next resistance could be near the ,200 level. A close above the ,200 level could push the price further higher. The next major resistance sits at ,500.
Downside Correction In BTC?
If Bitcoin fails to rise above the ,800 resistance zone, it could start a downside correction. Immediate support on the downside is near the ,300 level.
The first major support is ,750 and the 50% Fib retracement level of the upward move from the ,767 swing low to the ,780 high. If there is a close below ,750, the price could gain bearish momentum. In the stated case, the price could dive toward the ,000 support.
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 – ,300, followed by ,750.
Major Resistance Levels – ,800, ,750, and ,500.
13% Surge Sends AVAX Rumbling – Is This The Start Of Something Big?
AVAX, the ninth-largest cryptocurrency by market capitalization, has defied recent selling pressure, experiencing a notable 13% surge in the last 24 hours. This rally propelled the Avalanche Network token to a 10-day high of , sparking optimism among investors for a more sustained upward trend.
Analysts attribute this positive momentum to two key factors: the increased activity on a decentralized social app called The Arena and the introduction of a groundbreaking scaling solution by Ava Labs.
Solid Run: AVAX TVL Soars 27%
The Arena, a SocialFi platform built on the Avalanche blockchain, witnessed a remarkable 27% surge in its total value locked (TVL) within just 24 hours. As the fourth-largest SocialFi decentralized application (dApp) with over 8,000 in deposits.
The Arena aims to capitalize on the growing popularity of similar platforms like Friend.tech. Despite facing a temporary setback due to an exploit shortly after its launch, the recent rebound is viewed by proponents as a potential turning point. Given that AVAX is the utility token for The Arena, its success could directly contribute to the increased value of the crypto.
One of the catalysts behind Avalanche’s bullish momentum, however, stems from Ava Labs’ ambitious new project: Vryx. This innovative scaling solution aims to transform transaction processing on the Avalanche network, promising an impressive capacity of 100,000 transactions per second (TPS) without compromising security or decentralization.
1/ Introducing Vryx: Fortifying Decoupled State Machine Replication
(How the #Avalanche HyperSDK Will Reach HyperTPS)https://t.co/eY3uWcyTPr
— Patrick O’Grady
(@_patrickogrady) January 26, 2024
Addressing a significant challenge in blockchain technology—scalability—Vryx’s successful implementation has the potential to attract a wave of new users to the Avalanche ecosystem.
AVAX Surge: Excitement Amid Volatility
In a related development, the latest price surge of AVAX got the derivatives market excited as well. According to NewsBTC’s analysis of Coinglass’ data, the Open Interest (OI) in AVAX futures jumped by a whopping 20% to 9 million in the last 24 hours.
Despite the promising developments, caution prevails. The cryptocurrency market is notorious for its volatility, and the broader market sentiment plays a crucial role in AVAX’s performance. Ongoing market turmoil could temper AVAX’s momentum. Additionally, the success of both The Arena and Vryx remains uncertain, necessitating close monitoring of their development.
Avalanche’s recent surge is viewed positively, offering promising indicators for the future of AVAX. Increased adoption of The Arena and the successful deployment of Vryx could drive further demand for the token, potentially sustaining an upward trajectory. However, investors are reminded to conduct their own research and exercise prudence before engaging in any cryptocurrency investment, considering the inherent risks associated with the market.
Featured image from Shutterstock, chart from TradingView
Solana Breakout Looms – Will SOL Retake $100 Before Start Of February?
Solana, the high-performance blockchain darling, spent today grappling with the 0 mark. Having rallied to within spitting distance earlier, the native token (SOL) retreated slightly but held onto most recent gains, hovering primarily above . This price point has emerged as a key battleground, analysts say, with significant selling pressure poised at the century mark.
Solana’s 2023 Surge And Challenges
2023 was a stellar year for Solana, a stark contrast to its previous rollercoaster ride. Fuelled by factors including network upgrades and booming DeFi projects, SOL soared to a record high near 5 in December, clocking in a staggering 1,100% gain since January.
Despite today’s hesitation, Solana’s performance continues to draw admirers.
“I see it as a potentially even better protocol than Ethereum for major crypto uses,” declared Joe DiPasquale, CEO of BitBull Capital, praising its speed, low fees, and increasing popularity.
This sentiment echoes widespread confidence in Solana’s technical prowess. Hosam Mahmoud, a research analyst at CCData, highlights the growing number of active wallets and record transaction volumes on the network as key drivers of investor faith. “These metrics, along with consistent advancements, are reinforcing bullish sentiment,” he explains.
However, the climb to 0 hasn’t been smooth. Armando Aguilar, an independent analyst, points to persistent selling pressure around this level, noting its “ongoing” rejection by the market. This raises questions about whether Solana can break through resistance and sustain its momentum.
Crypto Uncertainties: Bitcoin Consolidation, Solana Strength
The expansive realm of the cryptocurrency market is not immune to uncertainties, and its dynamics are often shaped by the performance of key players. Bitcoin, regarded as the bellwether of the digital currency space, has recently displayed indications of consolidation following a noteworthy rally.
The future trajectory of the top coin is of particular significance, as its movements have the potential to exert a substantial impact on the overall market sentiment, including that of Solana.
Despite the near-term hurdles, Solana’s fundamentals remain strong as it stands at a crossroads. While the 0 barrier presents a challenge, the underlying strengths of its network and the bullish whispers from analysts paint a promising picture.
In the face of extreme volatility of digital currency markets, some commentators have voiced their optimism for the Solana network and its native cryptocurrency.
Portfolio Manager Brett Munster of Blockforce Capital is one of these market watchers. He made notice of Solana’s strong momentum as the year winds down.
Whether Solana can conquer its resistance and continue its ascent remains to be seen, but one thing’s clear: the high-performance blockchain is far from fading into the background.
Featured image from Freepik, chart from TradingView