Monat: März 2022

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Bitcoin touches $45k amid ‘PetroBitcoin’ sentiment

Bitcoin broke above key resistance levels to touch highs last seen in February, with the uptick buoyed by various macro factors.

Bitcoin has gained 10% this past week, climbing to its highest price level since it 24 February when it briefly traded above $45,000.

On Friday, the Bitcoin (BTC-USD) pair rallied over 4% in intraday gains to reach highs just above the $45k price point. The pair has since retreated but remains well-bid above $44,700 at the time of writing.

Do Kwon’s $3 billion BTC plan gives bulls legs

The leading cryptocurrency’s upside follows weeks of ranged trading, with relief rallied over the past month tempered by risk-off sentiment triggered around the Russia-Ukraine war and the impact of rising inflation on equities.

But according to GlobalBlock analyst Marcus Sotiriou, upside sentiment this week got legs from the hype around fresh accumulation by Terra Labs founder and CEO Do Kwon.

Kwon, who recently placed two bets worth $11 million on Terra (LUNA)’s price being higher than $90 by March next year, has unveiled a “$3 billion Bitcoin accumulation plan,”

Sotiriou points to Do Kwon and Terra’s Bitcoin reserve purchases as key to the buying pressure for BTC and Ethereum (ETH), which surged above $3,100 for the first time in weeks.

‘PetroBitcoin’ sentiment helps BTC climb to $45k

This week’s big jump above recent resistance and testing of $45,000 was also aided on Thursday by sentiment around Russia’s announcement that it would accept Bitcoin from ‘friendly’ countries for its oil and gas. These countries would also pay in their local currencies like the yuan or Turkish lira.

“Besides the bullish narrative behind Bitcoin being used as a stablecoin reserve asset, there are now talks of a Petro Bitcoin instead of a Petro Dollar,” Sotiriou noted in emailed comments.

He says this has probably added a fresh narrative to BTC’s price movement. Russia’s flip towards Bitcoin for oil and gas exports is an indication of the cryptocurrency’s ‘ideological malleability.’ It’s not just about Russia, but a broader promotion of the fact that crypto is “unstoppable.”

The big question, in Sotiriou’s view, is whether PetroBitcoin is poised to replace PetroDollar. Can nations begin pricing oil in Bitcoin and not the US dollar?

Bitcoin was up by more than 30% since the sell-off to lows of $33,000 soon after Russia’s invasion of Ukraine.

BlackRock and Exxon news

BlackRock CEO Larry Fink said on Thursday that the asset manager, the world’s largest with over $10 trillion in AUM, was considering crypto services for its clients. According to Fink, demand for crypto opportunities has increased among its clients, something he said the investment giant was looking at.

Elsewhere, Texas-based gas giant Exxon is mining Bitcoin using excess gas in a move that is set to see around “18 million cubic feet of gas” utilised to mine BTC every month. The gas, which would otherwise be flared off, is thus helping with environmentally-friendly mining.

Exxon’s Bitcoin mining operation is bullish for the cryptocurrency, Sotiriou said in a comment. He believes this is likely to bring on board many institutional investors, with Bitcoin’s market capitalisation of $845 “seems so undervalued to many.”

The post Bitcoin touches $45k amid ‘PetroBitcoin’ sentiment appeared first on Coin Journal.

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Ethereum Classic (ETC) jumps 79% as PoW Ethereum miners start to jump ship

Ethereum Classic (ETC) has been one of the main crypto performers of the last 7 days. Experts argue that much of this surge has been triggered by a hefty migration of Ethereum Proof of Work miners into ETC. Here is what we know:

  • Ethereum Classic (ETC) has surged by almost 80% over the last 7 days.

  • Ethereum Proof of Stake Miners are shifting to ETC in huge numbers.

  • This comes as the Vitalik led chain looks to launch its Proof of Stake Ethereum 2.0.

Data Source: Tradingview 

How will the Ethereum 2.0 shape ETC?

The sudden jump in ETC seen in the last week is expected to continue. In fact, many experts feel that the sooner we get to Ethereum 2.0, the higher ETC will surge. According to current estimates, Ethereum is expected to shift towards a Proof of Stake fully by the end of 2022. This will provide huge opportunities for crypto investors to earn.

“For the industry as a whole, we expect staking to become a big business,” says David Lawant, director of research at Bitwise Asset Management. The Firm has over $1.3 billion in assets, including a portfolio of crypto. There is also talk that tokenomics on Ethereum and other chains will dominate crypto investment.

“Tokenomics will play a huge part of the world’s future commerce with blockchains in the driver’s seat” says Adrian Pollard from HollaEx.

But the shift towards ETC could also put pressure on Ethereum itself. Just recently, ETH managed to steer above $3000 and has stayed there for a few days. The shift towards Ethereum 2.0 is likely to be a bit destabilizing, but eventually, the long-term value of ETH still remains promising.

Is Ethereum Classic (ETC) a good buy?

The shift towards Ethereum 2.0 will be completed this year, so there is still a lot of time before it happens. We expect ETC to continue surging during this period. So, at least in the short term, the coin is indeed worth buying. We could be getting very high gains before the year is out.

The post Ethereum Classic (ETC) jumps 79% as PoW Ethereum miners start to jump ship appeared first on Coin Journal.