Kategorie: Bitcoin News

As another week comes to a close in this eventful macroeconomic climate, let’s take a look at how the world of cryptocurrency looks, before we all take a breath over the weekend.

Key Points

• Bitcoin net outflows from exchanges breach $1 billion for the week
• Tuesday sees highest daily outflows in ETH since October
• Moderate uptick in new and active addresses for Bitcoin

Bitcoin

Net Flows

Data via IntoTheBlock

A nice milestone for Bitcoin this week, as net outflows from exchanges breached the billion dollar mark, as displayed on above graph. One of the go-to indicators of sentiment, a net outflow from exchanges typically means accumulation, while a net inflow signals selling pressure.

Volatility

Price-wise, we “closed” last Friday at $39,200, while currently we sit at $40,700. Looking at volatility, the 30-day annualised standard deviation remained relatively stable at circa 63%. This is shown on the below graph, but if we want to translate these numbers to simple English, we can simply say that this week Bitcoin was … chill. As the world seems to be falling down around it, Bitcoin has been actually been quite well behaved. Who would have thought?

Data via IntoTheBlock

Addresses

Some moderate uptick here too, with an 11% increase in new addresses since last week. Active addresses were relatively stable (up 3%) and there was a fall of 2% in zero-balance addresses. All pointing, again, to a steady but unspectacular week for Bitcoin. If only all the weeks were like this – this must be what it feels like to hold stocks, right? Maybe next week we will get some more movement, helping to make this piece a little more entertaining! 

Data via IntoTheBlock

Ethereum

Let’s see if we can poke around with Ethereum a little and uncover any trends.

Net Flows

There was nice net volume here too, with close to a billion dollars flowing out of exchanges over the last week. This was buoyed mainly by Wednesday, which saw $448 million in net outflows. For context, in dollar terms that’s the 24th largest daily outflow volume ever – and the second largest this year. 

Data via IntoTheBlock

Precedent

The largest of 2022, you may be wondering, was January 4th. Known as “Blue Monday”, they say it’s the most depressing day of the year – the return to work after the holidays. Apparently, people settled down to their computers to withdraw their crypto gifts into their cold wallets this year. Unfortunately, Ethereum plunged 21% in the next four days – so let’s hope that’s not a signal of what’s to come here.

I’m not really sure what exactly caused such a spike this Tuesday, given the lack of activity elsewhere. Maybe, just maybe, it’s plain old coincidence, huh? Or maybe somebody was afraid they would be tempted to redeem their ETH to buy a load of Guinness ahead of St Patrick’s Day. I don’t know.

Denominated in ETH terms, however, it marks the largest daily withdrawal since last October, at close to 180,000 ETH. In Ocotober, Ethereum did the opposite to January– ramping 14% in just over a week. Although it’s important to note that at 750,000 ETH, the withdrawal last October was over 4X what we saw on Tuesday. The graph below highlights the size of this move compared to last October, as well as the price action (black line). So be careful with your conclusions.  

Data via IntoTheBlock

Closing Thoughts

So, a somewhat notable tidbit to close the week from Ethereum then. Bitcoin behaved, while the crypto markets largely followed. A nice week without too much volatility. If only they were all like this, I reckon my heart rate would be significantly lower. Then again, wouldn’t life be less fun?

Still, next time we get those ugly red candle days, I’ll look upon weeks like this with green-eyed envy. In crypto, it could always be worse. Happy Weekend !

 

The post Could this on-chain metric catapult Ethereum’s price? appeared first on Coin Journal.

After the volatility that we saw over the last few weeks, it seems like Bitcoin (BTC) is starting to show a lot of resilience. The coin has regained $40, 000 and new data shows that the flow of institutional money is playing a big role in this. Here are the facts so far:

• New data shows that nearly all trades in BTC consist of transactions above $100,000.

• Institutional money has dominated BTC liquidity since 2020.

• At press time, the coin was trading at $40,974, virtually unchanged in 24 hours.

Data Source: Tradingview 

Bitcoin (BTC) – is $50,000 in sight?

Early predictions for Bitcoin in 2022 were quite ambitious. There were some analysts who even thought that coin would hit $250,000 by the end of the year. In fact, the most conservative estimate had BTC at $100,000 by year-end. 

This could still happen. After all, we are not even in Q2. But the way the broader crypto market has started, Bitcoin will go through a wide period of volatility. It is highly unlikely that we will get to $50,000 in the near term. 

For most parts of 2022, BTC has largely bounced off between $45,000 and $35,000 and we expect this to remain the case for the foreseeable future. The flow of institutional money is also going to ramp up by the end of the year.

Why are institutions buying Bitcoin (BTC)?

Well, there are several reasons. For starters, the coin has dipped quite significantly from all-time highs. This provides large capital holders the perfect entry point to ride the Bitcoin and the crypto wave. 

But also, Bitcoin is a safe bet in the crypto market. It is seen as the gold standard and as such, institutions largely focus on it for the safety and longevity, it has to offer.

The post Bitcoin (BTC) remains strong as new data shows institutional investors are buying the coin in droves appeared first on Coin Journal.

The recent Bitcoin (BTC) rally has halted. After days on the up, the mega-cap coin has fallen below $40,000 once more. The drop has largely been attributed to growing inflation in the US and the threat of economic slowdown due to the crisis in Ukraine. Here are some highlights:

• $40,000 is a key support, and BTC could see more weakness in the coming days.

• US inflation is expected to hit 7.9%, higher than expected and the highest in 40 years.

• At press time, BTC was trading at $39, 200, down about 7% in 24 hours.

Data Source: Tradingview 

Will Bitcoin (BTC) fall further?

The last few weeks have been quite volatile for Bitcoin (BTC). However, even amidst this high volatility, $40,000 has remained a crucial support zone. Every time the mega-cap has fallen below this mark, it has gone on to slide further. 

Most analysts are watching the $37,000 mark. If weakness continues and BTC drops below $37,000, then you can expect it to bottom at around $32,000 before the next rally. But if bulls can somehow push the price action back up to $40,000, we may see some sustained resilience on BTC.

But with high US inflation, threats of economic slowdown, and the crisis in Ukraine, it is highly unlikely there is enough sustainable upward momentum for BTC.

Is this the best time to buy BTC?

Even with recent challenges, overall, the long-term outlook on Bitcoin looks very promising. There are in fact estimates that are looking at $100,000 before the end of 2022. Buying at $39,000 or thereabout could be a great idea. 

Even if BTC does not hit six figures in terms of value, there is a chance it will hit a new all-time high this year. This would still represent gains of over 100% from the current price.

The post Bitcoin falls below $40,000 as inflation in the US continues to pose major risks appeared first on Coin Journal.

After jumping by over 8% on Wednesday, Bitcoin has fallen again followed by a majority of popular cryptocurrencies. Bitcoin has staged a spirited bullish trend in the past week or so that had seen it rise above $42,000 by yesterday before the tables turned and pushed it to around $39,000 at the time of writing.

Ethereum, the second-largest cryptocurrency by market cap, has followed suit by nose-diving again and it is now trading at around $2,500. The bear market has affected the majority of the top 100 coins; most of which were skyrocketing for the past few days.

In this article, we are going to look at what is causing the rough tides within the crypto market? Why is it that it is crashing every time it tries to make a comeback?

Why has Bitcoin and the majority of coins fallen today?

The main contributor to today’s crypto market crash is the ongoing conflict between Russia and Ukraine. The Russian invasion of Ukraine appears to only bear a heavy burden on the stock market but also on digital assets like bitcoin (BTC).

While some analysts like Mark Mobius claim that the conflict in Eastern Europe has most likely helped bitcoin stay strong, the fact is that the crypto market could be heading for a major drop if the conflict continues. And it is evident from how the market has been behaving.

Short-lived effect of Biden’s executive order

The fact is that the recent short-lived bullish trend was attributed to the much anticipated executive order by the president of the United States Joe Biden.  Immediately the executive order was signed it only took a few hours for the effect of the news to fade away leaving the market at the mercy of the ruthless bear forces caused by the Russia-Ukraine war.

The threat of the war becoming bigger is threatening the crypto market further since investors are either pulling out their money completely or taking a break from buying risk-based assets like bitcoin for fear that the assets will crash.

Berkshire Hathaway’s Warren Buffett warned that it is not wise to buy bitcoin during times of war and a majority of investors appear to be buying the advice. There are also uncertainties surrounding the future of the ongoing conflict with the majority asking themselves what position nations like the US, the UK, Germany, France, and China will take if Russia intensifies the attacks.

The post The reason why Bitcoin and crypto market at large is plummeting after a short-lived surge appeared first on Coin Journal.

American cryptocurrency exchange Kraken has announced that it shall donate $1,000 in bitcoin (BTC) to each of the Ukrainian citizens who opened an account with the exchange before March 10, 2022. Overall, the total amount of funds that Kraken intends to donate to Ukrainians is over $10 million.

Kraken’s initiative aims at supporting the needy at a time when Ukraine is under attack by its neighbor, Russia. It is one among the worldwide support that Ukraine is receiving from the crypto community in terms of crypto donations the majority of the previous donations have been sent to crypto wallet addresses shared owned by the Ukraine government.

Kraken’s CEO Jesse Powell commented on the matter saying:

“We hope to continue being able to provide critical financial services in a time of need to both our clients in Ukraine and Russia. Cryptocurrency remains an important humanitarian tool, especially at a time when many around the world can no longer rely on traditional banks and custodians.”

Free conversion and immediate withdrawals

Once the Ukrainian Kraken account holders receive their donations, they will be free to withdraw the funds immediately. Besides the $1000 donation in bitcoin, Kraken shall also be distributing $1000 Kraken Fee Credits to allow the beneficiaries of the donations to make conversions at zero cost.

Kraken went ahead and explained that the $10 million worth of bitcoin that it wishes to donate to Ukrainians equals the total trading fees obtained from Russian-based clients within the first months of 2022. It is in a show of Kraken’s disapproval of the ongoing military operation in Ukraine and Kraken does not feel it is worthy benefiting from any transactions made by Russians.

Exchanges reaction to the Ukrainian invasion

Immediately Russia began its military operation in Ukraine, Ukrainian Vice Prime Minister Mykhailo Fedorov made a plea to the leading crypto exchanges to freeze all addresses belonging to Russian users.

Binance and Kraken did not however agree with the prime minister’s plea, with Binance arguing that “crypto is meant to provide greater financial freedom,” and such a move would go against the core value of the industry. Binance also went ahead to say that a majority of those accounts belong to innocent individuals who are not for the war. Binance views of the cryptocurrency industry being about freedom were supported by Kraken.

Coinbase, on the other hand, went ahead and blocked about 25,000 addresses belonging to Russian clients supposedly connected to the ongoing war.

The post Kraken to donate Bitcoin worth over $10 million to affected Ukrainian citizens appeared first on Coin Journal.