Die FTX erzielt in ihrem Insolvenzverfahren immerhin einen kleinen Sieg für den Datenschutz ihrer Kunden, denn deren Daten müssen zunächst nicht offengelegt werden.
13% of Bitcoin supply in profit as BTC rallies above $18,200
- Bitcoin price jumped more than 5% on Thursday to hit levels above $18,400.
- According to on-chain data from Glassnode, the price rally has helped return 13% more BTC into profit; now 60.5% of circulating supply is in profit.
- Only 47%-48% of BTC had been in profit between November 2022 and the start of January, 2023.
Bitcoin’s breakout to prices above $18,200 has seen 13% more of circulating supply return into profit, on-chain data from Glassnode says.
Per the platform, the sharp surge in percentage of supply in profit amid the latest crypto rally confirms a buy the dip scenario as prices fell in late 2022. Indeed, the metric suggests a large volume of the benchmark cryptocurrency was acquired at prices between $16,500 and $18,200.
As #Bitcoin rallies to $18.2k, over 13% of the Circulating Supply has returned to profit.
The observed sharp move upwards in this metric helps to confirm that a large volume of $BTC was acquired between $16.5k and $18.2k.https://t.co/yflZloDbSP pic.twitter.com/J8egLvYt3w
— glassnode (@glassnode) January 12, 2023
Bitcoin supply in profit jumps amid BTC rally
Bitcoin price hit lows of $15,600 in November 2022 after a violent market reaction to the collapse of cryptocurrency exchange FTX. The price bounced to above $18,000 in mid-December before bulls hit resistance and BTC tumbled to below $17,000.
The supply in profit or supply in loss metric considers the on-chain history of a coin, determining the price at which it last moved. Coins are in profit if the price at which they last moved is lower than the current price of BTC, while the percent in loss is when the current price of BTC is higher than the value of the coins when they last moved on-chain.
According to Glassnode, more than half of Bitcoin circulating supply fell into loss between November and January this year. Approximately 47%-48% of BTC supply was in profit during the period.
However, with 2023 starting positively for cryptocurrencies and BTC’s push to highs of $18,420 on 12 January, the percentage of circulating supply on profit has increased to 60.5%.
As of writing, Bitcoin price is 5.2% up in the past 24 hours and data from CoinGecko shows the flagship cryptocurrency has rallied nearly 9% in the past week.
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Crypto short traders lose $200M to liquidations as Ether hits a two-month high
- The cryptocurrency market capitalization has risen by about 3.18% in the past 24 hours.
- Ether has hit a two-month high trading at about $1400.
- The crypto market in general has risen against the cautious tone in the US stock market.
Crypto traders who had bet on a market decline have been caught off-guard by the broad recovery in the crypto market. As a result, about $200 million worth of short trades against price rises has been liquidated in the past 24 hours.
Another more than $150 million worth of short trades were also liquidated earlier this week as Ethereum (ETH) and bitcoin (BTC) broke past key resistance levels according to data from CoinGlass. Other major altcoins like XRP and Solana also registered gains of about 20%.
Ether-tracked futures also saw liquidations worth about $110 million in both long and short positions. Bitcoin saw liquidations worth about $77 million, while AVAX and GALA saw $4.5 million in liquidations.
Ethereum’s strong performance
Despite the cautious tone around the US stock futures, Ethereum (ETH) has rallied to a two-month high, confirming that the crypto is well prepared for a recovery in 2023 if the bullish trend is sustained.
Ethereum’s bullish trend is further projected to gain momentum ahead of the scheduled March Shanghai upgrade, which is designed to de-risk staking by allowing people to withdraw ETH staked into the Beacon Chain. There was some Ether that ware locked/staked into the Beacon Chain in December 2020.
The Shanghai upgrade is expected to boost staking demand causing a decrease in the circulation supply of ether, which the law of demand and supply dictates would result in a rise in ETH prices.
According to Thielen, the upgrade:
“Will motivate many ETH holders to stake their ETH as only 14% of the ETH is being staked now, compared to 58% for other Layer 1 protocols. Hence, another $20 billion of ETH can be easily staked. More ETH staked means less ETH available to sell when negative news hits the market. Hence, this is bullish.”
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Robinhood announces plans to delist Bitcoin SV (BSV) before end of January
- Robinhood on Wednesday said it has stopped accepting Bitcoin SV.
- It has also said that it will delist the cryptocurrency starting January 25.
- Any Bitcoin SV in customers’ accounts after January 25 will be automatically sold.
Online trading app Robinhood on Wednesday said through a statement on its website that it has stopped accepting Bitcoin SV (BSV) deposits as it prepares to delist the cryptocurrency on January 25.
Between now and January 25, users hold and sell BSV but after the deadline, the platform will not support Bitcoin SV trades, purchases, or transfers. Additionally, any BSV held in users’ accounts will be sold at market value and the proceeds will be given to the respective users.
Regular review of supported cryptocurrencies
While making the announcement, Robinhood said the move has been arrived at based on its regular review of the cryptocurrencies that it offers. It, however, never gave a specific reason for dropping the cryptocurrency.
The company’s statement read:
“We have a rigorous framework in place to help us regularly review the crypto we offer on Robinhood,” a spokesperson told CoinDesk in a statement. “We are extremely selective about the assets we offer as we build toward our goal of making Robinhood Crypto the most trusted, lowest cost, and easiest to use on-ramp to crypto.”
What is Bitcoin SV (BSV)?
BSV is the native token of the Bitcoin Satoshi Vision (Bitcoin SV) blockchain which was launched in 2018 following a hard fork from the Bitcoin Cash blockchain. Bitcoin Cash is itself a hard fork of the original Bitcoin blockchain.
The BSV was added to Robinhood almost immediately after the hard fork from Bitcoin Cash.
Following the announcement, the price of BSV dropped from a high of $44.41 to as low as $37 although it had slightly retraced upwards to trade at $40.73 at press time.
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What to expect in crypto ahead of inflation report, as Bitcoin banks eight straight days of gains
Key Takeaways
- Bitcoin has increased for eight straight days, now up 9.2% on the year
- Period of low volatility in the crypto markets paired with softer inflation data has sent prices upward
- Latest CPI report is out Thursday which will trigger volatility and is vitally important for the market following increased optimism over last month or so
- Altcoins could move violently on the report, while Bitcoin will likely shake off its $18,000 mark if data comes in below or above expectation
Bitcoin has banked eight straight days of price rises, as the new year has kicked off assiduously for cryptocurrency investors.
Whereas 2022 brought nothing but pain and freefalling prices, 2023 has thus far been the exact opposite. Bitcoin is up above $18,000 and Ethereum close to $1,400, good for rises of 9.2% and 16.4% respectively year-to-date. Many altcoins are up even more.
Volatility has reduced in the crypto markets
The macro climate is pushing prices upward. I wrote a piece analysing the softer climate last week, but optimism has crept into the market that inflation may have peaked and that the possibility of a pivot from the Federal Reserve off its policy of heightened interest rates may be coming soon than previously anticipated.
It should be noted that while this is a nice rally, it is hardly a violent breakout. Cryptocurrencies are notoriously volatile and there has actually been an unusual serenity that has washed over markets over the past couple of weeks.
A quick glance at the chart for the daily returns of Ethereum illustrates that there has been a perceptible fall in volatility.
Inflation data to be released Thursday
I write this on Thursday morning, with the all-important US inflation data to be released this afternoon. If we know anything by now, it is that inflation numbers rule the world. If there is anything in the current climate that will produce volatility, it is the CPI report.
As mentioned above, this relief rally has largely been predicated on softer inflation leading to the hope that the Federal Reserve will pivot off its high-interest-rate policy sooner than anticipated. Another positive inflation number would give further impetus to crypto prices. It is not hard to imagine Bitcoin pushing up towards $20,000 and Ethereum to $1,500 if the number comes in cooler than anticipated.
On the flip side, of course, is the potential for the number to disappoint investors. Following two straight months of positive inflation, a step back this afternoon would be a body blow for crypto, and it would not be a surprise to see it drop sharply as all the optimism of the last month gets released in an instant.
The inflation number is expected at 6.5%. This would be a decline from the prior month of 7.1%. Should the number come in at 6.7% or higher, this would represent a major disappointment and crypto will likely freefall. Do not be surprised to see Bitcoin down at $16,500 in this scenario.
The data will be released at 1:30 PM GMT (8:30 AM ET), and it is the last CPI report before the Federal Reserve’s February 1st interest rate decision.
Altcoins showing signs of life
However bad things have been for Bitcoin and Ethereum, the landscape has been a hell of a lot worse for altcoins. Below are the percentage returns in 2022 from the top 10 coins as of 1st January 2022.
As is standard, these coins are significantly more volatile, and trade like leveraged bets on Bitcoin. It follows that this year, the jumps have also been stronger than the number 1 crypto.
Looking at the top 10 coins from Jan 1st this year, some of the returns have been seismic, albeit from a significantly lower base. Remember, a 90% drop followed by a 50% rise is still the same as an 85% drop from the original starting point. A simple math problem that many investors do not understand. Hence, the past couple of weeks have been positive, but this is still a space that has been absolutely ravaged by the bloodbath that was 2022, and it will take a very long time to recover from.
Final thoughts
This is a pivotal week for the markets and it will be a true gauge of how far the battle against inflation has come. Central banks have been adamant that inflation is the number one priority, and the consequent interest rate policy has crushed risk assets over the last year.
Things are tough in the markets, but with a third straight month of OK inflation data, it could point toward a light at the end of the tunnel. Then again, the world is teetering on the edge of a recession as it is, and if inflation takes a step back, it will be a double whammy of high rates and still-persistent inflation. As always, risk assets will feel the pain.
Crypto investors will just have to hope that the pivotal CPI number doesn’t dare tick up beyond 6.5%.
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