Schlagwort: crypto market

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Crypto price prediction: Cardano, Polygon MATIC, Stellar Lumens

  • Cryptocurrencies had a strong performance this week as Bitcoin surged to $30,000.

  • Most altcoins like Cardano, Pepe, and MATIC also jumped.

  • More upside will depend on whether Bitcoin is able to clear $31,000.

Cryptocurrencies had a strong performance this week as investors focused on TradFi and the positive comment from Jerome Powell, the Federal Reserve chairman. Bitcoin price jumped by more than 20% in the past 7 days while Ethereum soared by 14%. The near-term price action for cryptocurrencies will depend on whether BTC will soar above the year-to-date high of $31,000. So, what next for MATIC, Stellar, and Cardano?

Cardano price prediction

Cardano has been in a strong bearish trend in the past few months. It dropped to a low of $0.4592 on April 16th to a low of $0.2295. The lowest point was a notable one since it was the lowest level in December.

While the recent rebound is welcome, buyers should be cautious considering that the coin has formed an inverted cup and handle pattern. The current rebound is part of the handle section. In price action analysis, the inverted C&H pattern is usually a bearish sign. Therefore, there is a likelihood that the Cardano price will resume the bearish trend in the near term.

If this happens, the next level to watch will be at $0.2414. A break below this level will confirm the bearish thesis and signal that the ADA price could slip to the key support level at $0.20, which is about 30% below the current level.

How to buy Cardano

eToro

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Polygon MATIC price prediction

Polygon MATIC price has been in a steep sell-off in the past few months. This decline happened as the layer-2 network faces significant competition from the likes of Optimism and Arbitrum. On the daily chart, the price dropped to $0.5079 in June and then resumed the bullish trend this week. It has now retested the important resistance point at $0.6905, the lowest point on September 20th last year. 

MATIC remains below the 25-day and 50-day moving averages. Therefore, I believe that this recovery will not hold. If this happens, the coin will likely retest the month-to-date low of $0.50, which is about 26% below the current level.

How to buy MATIC

eToro

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Stellar Lumens price prediction

The daily chart shows that the XLM price crashed to a low of $0.075 on June 15th. This was an important level since it coincided with the lowest level on March 11th of this year. Stellar has now moved slightly above the 25-day and 50-day moving averages. It has also formed what looks like a double-bottom pattern whose neckline is at $0.1145. 

Therefore, there is a likelihood that the Stellar coin will likely continue rising as buyers target the key resistance point at $0.10, which is about 11.31% above the current level. 

How to buy Stellar

eToro

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Plus500

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The post Crypto price prediction: Cardano, Polygon MATIC, Stellar Lumens appeared first on CoinJournal.

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MARA stock price tests key resistance: Is Marathon Digital a buy?

  • Bitcoin mining stocks made a bullish breakout this week. 

  • Marathon Digital share price soared to the highest level since November.

  • Future price action will depend on the Bitcoin price action.

Marathon Digital stock price surged to the highest level since November 2022 as Bitcoin and other cryptocurrencies roared back. MARA shares jumped to a high of $12.75, meaning it has soared by more than 319% from the lowest level in December. Other bitcoin mining companies in the industries like Riot Platform and Hut 8 Mining also surged.

Bitcoin mining stocks jump

The main reason why MARA stock price soared is that Bitcoin price neared the highest point this year. This rebound happened as the crypto fear and greed index soared to the greed area. 

Most analysts believe that the ongoing trend of TradFi is the main driving factor for Bitcoin prices. TradFi refers to a situation where traditional finance companies move to the crypto industry. 

On Friday, Blackrock, the biggest asset manager in the world, announced that it had applied for the iShares Bitcoin Trust with the SEC. This will be an ETF tracking the spot Bitcoin price and will be similar to the Vanguard Gold Trust.

Other large companies in the industry also unveiled their Bitcoin ETF filings. They included companies like Invesco and WisdomTree. Analysts believe that the SEC will come under pressure and allow these funds this time.

Another TradFi news was that Deutsche Bank applied for a crypto custody license in Germany. Credit Agricole, a large French bank, also received its custody license. These banks hope to take care of wealthy Europeans seeking access to the industry.

Therefore, MARA stock price is soaring because its business thrives in a period when Bitcoin price is thriving. Its future price action will depend on whether Bitcoin moves above $31,000. This is an important level since it is the upper side of the double-top pattern. As such, if it rises, it means that the double-top pattern has been invalidated.

MARA stock price forecast

The daily chart shows that the Marathon Digital stock price has been in a slow bullish trend in the past few months. The shares consolidated at around $10 in the past few weeks. It then moved slightly above the key resistance point at $12.85, the highest level on April 18. The price was along the upper side of the ascending triangle pattern.

MARA share price has jumped above the 25-day and 50-day moving averages. Therefore, while the outlook is neutral, the stock will likely have a bullish breakout as buyers target the next key resistance point at $15. A drop below the support at $10.90 will invalidate the bullish view.

How to buy Bitcoin

Binance

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Bitstamp

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As Pepe crypto price surges, beware of a bull trap

  • Pepe crypto price has almost doubled in the past few days.

  • This rally is in line with that of other cryptocurrency market.

  • The bullish trend could be part of a bull trap.

Pepe price has jumped sharply in the past few days, making it one of the best-performing cryptocurrencies in the market. It soared to a high of $0.0000016, the highest point since May this year. In all, the meme coin has jumped by more than 85% from the lowest level this month.

Why Pepe price is soaring

Pepe price has jumped because of the rising greed in the crypto market. The crypto fear and greed index has jumped to the greed area of 60 as most cryptocurrencies have jumped. Bitcoin has crossed the important resistance point at $30,000 while a sea of green has dominated the market.

The strong performance is mostly because of the ongoing TradFi trends in the industry. For example, on Thursday, it was reported that Credit Agricole had acquired a crypto custody license in France. This is notable since this is the third biggest bank in Europe by assets.

The announcement came a few days after Deutsche Bank applied for custody services in Germany. Also, companies like Blackrock, WisdomTree, and Invesco have applied for their spot Bitcoin ETFs with the SEC.

These events have nothing to do with altcoins like Pepe. Instead, they have helped to ameliorate the recent regulatory challenges in the United States. As you recall, the SEC filed major charges against Coinbase and Binance, the biggest firms in the industry.

This could be a bull trap

Pepe price has also jumped because of the Fear of Missing Out, popularly known as FOMO. In most periods, this FOMO tends to be a bull trap that leads to substantial losses to the holders. Just ask investors who bought GameStop, ContextLogic, and Bed Bath and Beyond shares. Most of them have lost substantial sums of money.

Therefore, I suspect that Pepe price will retreat soon as investors start taking profits. As you can see in the chart above, the volume has started to diverge from the price. After peaking on Wednesday, the volume has continued falling. 

If this view is correct, Pepe will likely drop to the key support at $0.00000012, the highest point on June 9th of this year. This price is about 25% below the current level.

How to buy Pepe

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Floki Inu price prediction as Chancer token sale gains steam

  • Floki Inu price has soared in the past few days.

  • It has joined other popular cryptocurrencies like BTC and Jasmy.

  • Chancer’s pre-sale has raised over $309k in about a week.

Crypto investors are getting greedy as the focus shifts to the so-called TradFi continues. The crypto fear and greed index has jumped to the greed zone of 55 while the CNN Money index has moved to the extreme greed area of 75. Most cryptocurrencies have jumped, with Pepe, Bitcoin Cash, and Floki Inu soaring by over 20% in the past 24 hours. At the same time, Chancer has raised over $309k from investors in its token sale.

Why Floki Inu is rising

Floki Inu is a popular meme coin that aims to have utility in the blockchain industry. In the past few years, the developers have launched the Floki ecosystem, which is made up of a metaverse platform known as Valhalla, a DeFi product known as FlokiFi, and NFT collections.

The main reason why Floki Inu price is soaring is the ongoing move towards traditional finance, popularly known as TradFi. This is a trend where large traditional companies have started to embrace cryptocurrencies, Bitcoin in particular.

The trend started last week when Blackrock applied for the iShares Bitcoin Trust. It hopes that the SEC will give it the approval to launch the first spot Bitcoin ETF. Such an ETF will make it possible for investors to allocate funds into BTC without holding the real thing.

Shortly thereafter, other financial services companies also filed for their spot in Bitcoin ETF. They are well-known companies like Invesco and WisdomTree. 

The other important crypto news was the decision by Deutsche Bank to file for a crypto custody license in Germany. 

To be clear. The impact of these tradfi news are negligible to most cryptocurrencies since all these companies have focused on Bitcoin. As such, Floki Inu and other altcoins have jumped because the news is helping to ameliorate the recent regulatory pain. 

Therefore, there is a likelihood that the Floki Inu price will continue rising in the near term. If this happens, the next level to watch will be at $0.00035.

Chancer token sale gains steam

Another important news is that Chancer has managed to raise over $309k in its highly successful token sale. In it, the developers have sold over 30.9 million $CHANCER tokens. In the first stage of the sale, the token is selling for just 0.01 BUSD, which is equivalent to $0.01.

For starters, Chancer is a new company that aims to disrupt the sports betting industry using the blockchain technology. This is a multi-billion dollar company that is used by millions of people every day.

Chancer’s unique proposition is that it introduces the concept of social betting and predictive. It means that people can create their betting markets that are not covered by traditional companies. For example, you can create a predictive market for a local city council election or an award ceremony. 

Chancer’s other features are the ability to empower token holders by letting them vote on key issues and create their markets. There will also be a live-streaming feature in the platform.

The $CHANCER token, which is based on the BSC Blockchain, will be used to power the ecosystem. In the future, when it becomes fully decentralized, the token will be used for voting and staking purposes.

Is $CHANCER a good buy?

Investing in pre-sale tokens is always a high-risk and high-reward thing to do. It is high risk since the token can crash to zero when it is launched. It is also highly illiquid in its initial days, meaning that it is difficult to exit. 

However, in other situations, investing in pre-sale tokens can lead to substantial profits. We recently saw this in tokens like Pepe and Milady. Therefore, we recommend that you first read the Chancer white paper and then allocate some of your funds to it. You should only invest funds that you are ready to lose.

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Bitcoin mining stocks are far riskier than Bitcoin itself


Key Takeaways

  • Bitcoin mining stocks have underperformed Bitcoin heavily over the last year

  • Greater competition among miners and higher amounts of energy required means margins are thinner

  • Rising electricity costs and lower value of Bitcoin have also hurt miners immensely 

  • Greater number of variables beyond merely the price of Bitcoin means mining stocks have been trading with greater volatility

It’s a tough time to be a Bitcoin miner. This piece will succinctly break down how and why, as well as delving into why I believe mining stocks are far riskier than just investing in Bitcoin itself. Let’s get to it. 

Mining competition is higher than ever

Firstly, the competition within mining is higher than ever before. The beauty of the blockchain is that we can see all sorts of statistics regarding the Bitcoin network in real-time. One of these is the difficulty adjustment. For the uninitiated, the difficulty adjustment is a mechanism by which the difficulty of mining changes to ensure the new supply of Bitcoin released via mining remains consistent (at approximately ten-minute intervals).

In other words, as more miners join the network, the difficulty increases so that Bitcoin is released at the same pace as prior. The same holds true the other way around – difficulty falls if miners stop operating. 

As the below chart shows, Bitcoin mining difficulty recently smashed through the 50 trillion hash mark for the first time ever. Only three years ago, that number sat at 14 trillion.  

This is great for the Bitcoin network: the more miners, the more secure the network. For the miners themselves, however, that means greater energy amounts are needed to complete this now-more-difficult assignment of validating transactions on the network. 

Oh, and there is a double whammy. As you may realise if you have turned on a light, charged your phone or boiled a kettle in the last year, the price of electricity has skyrocketed around the world. The next chart shows the rise in electricity costs in the US, which according to the Cambridge Electricity Consumption Index, has the highest amount of miners (the nation is responsible for 38% of the network’s hash rate). 

This means that higher amounts of energy are needed to mine, and the cost of that energy has also increased drastically. 

People are using Bitcoin less 

So, we know costs have risen. But the bad news isn’t over yet. 

Bitcoin’s volumes have collapsed throughout the bear market. Perhaps the best barometer of this is to look at the trading volume on centralised exchanges, which fell 46% in 2022 compared to 2021. 

Looking at Bitcoin fees shows a similar pattern, with fees far down on the heyday of the pandemic bull market. This was briefly interrupted in May when the Bitcoin Ordinals protocol sparked a revival in network activity. However, the below chart shows that fees have been falling for five consecutive weeks since (although they are still up significantly on the start of the year), giving up most of those gains. 

Much like the cost side, which saw an increase in inputs required (greater demands via the difficulty adjustment) as well as an increase in the per-unit costs of those inputs (rising electricity costs), the revenue side for miners is also suffering from a brutal double whammy. 

Not only is volume way down from the bull market and hence less fees (revenue) are recouped, but miners’ revenue (fees and the block subsidy award) is received in Bitcoin, which has also fallen in value. This means that, after earning Bitcoin by battling with the greater competition and toiling over increased costs, the value of that Bitcoin (revenue) on the market is substantially less – still 60% off its peak from November 2021. 

Mining stocks are more volatile than Bitcoin

So let’s think about these four variables:

  1. The amount of energy needed
  2. The cost of that energy (electricity)
  3. The fees and block rewards received (i.e. revenue)
  4. The value of those fees and block rewards (the Bitcoin price)

Therefore, not only are mining companies dependent on the price of Bitcoin (variable number four), but it also depends on several other factors (admittedly variables 1 and 3 are heavily dependent on the price of Bitcoin too. In truth, economic incentives will drive mining to a certain price point, but I will discuss in another article). 

Therefore, for the time being at least, the risk is greater with mining stocks than a direct investment in Bitcoin. As with all things, greater risk can mean greater reward, and there have been periods of mining stocks outperforming Bitcoin as a result. 

However, over the last year or so, mining investors are in an even worse state than Bitcoin investors (who themselves are licking their wounds). I’ll let the below mining ETF, launched in February 2022, illustrate this:

All this goes to show how tough mining has been. And that is without even mentioning the big bad wolf that is regulation. The regulatory crackdown in the US has been ferocious, and while Bitcoin has thus far been relatively unaffected, miners are more vulnerable (especially those that are publicly listed in North America) than Bitcoin itself, which is a decentralised asset theoretically immune to regulation (directly, at least). 

This is not meant to be a pro-Bitcoin or anti-mining piece. It is just comparing the two as investments and showing why mining stocks tend to be more volatile. And when you’re more volatile than Bitcoin, that is really saying something.        

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