Značka: Bitcoin Price

McDonald’s jumps on Bitcoin memewagon, Crypto Twitter responds

Prominent crypto entrepreneurs and supporters, who shared memes on Twitter about doing odd jobs amid an ongoing market crash, were joined by global fast-food giant McDonald”s — the brand infamously linked with temporary Bitcoin (BTC) market crashes. BTC’s price has seen a steady downfall ever since breaching an all-time high of $69,000 back in November 2022. Eventually, as Bitcoin started trading below the $40,000 mark, crypto millionaires and investors on Twitter started sharing memes about getting jobs at fast-food restaurants.Source: Twitter/PlanBSalvadoran President Nayib Bukele, too, embraced the meme culture and uploaded a new profile picture that shows him at one of his speeches sporting a badly photoshopped McDonald’s branded cap and T-shirt.#NewProfilePic pic.twitter.com/YVDlBoA2Cq— Nayib Bukele (@nayibbukele) January 22, 2022Joining in on the fun with numerous others, McDonald’s acknowledged the ongoing developments within Crypto Twitter by following influential members of the community such as Cardano founder Charles Hoskinson and Altcoin Daily. The account drew more attention as it tweeted:how are you doing people who run crypto twitter accounts— McDonald’s (@McDonalds) January 24, 2022

While Binance responded to the question with a picture of a crying face hidden behind a smiling mask, McDonald’s consoled the world’s biggest crypto exchange with a “wagmi,” short for “we are gonna make it.”wagmi friend— McDonald’s (@McDonalds) January 24, 2022

Bukele, however, seems to have bigger plans in mind.Related: Bitcoin could outperform stocks in 2022 amid Fed tightening — Bloomberg analystDespite the uncertain market condition, Bloomberg commodity strategist Mike McGlone believes in the possibility of BTC’s comeback as investors recognize its value as a digital reserve asset.As Cointelegraph reported, McGlone stated:“Cryptos are tops among the risky and speculative. If risk assets decline, it helps the Fed’s inflation fight. Becoming a global reserve asset, Bitcoin may be a primary beneficiary in that scenario.”The analyst expects the “enduring trio” — BTC, Ether (ETH) and USD-pegged stablecoins — to maintain dominance throughout 2022.

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Boom or bust? Is there a way for Bitcoin price to hit $100K in 2022?

The internet is filled with Bitcoin (BTC) price forecasts. For example, some analysts believe that the flagship crypto will hit $1 million per coin in the next 10 years, while others think BTC price will eventually drop to zero.Without dwelling on predictions that are five or more years ahead of us, let us focus on what Bitcoin could do, say, in the next six months? Again, the forecasts vary drastically. For instance, Antoni Trenchev, the founder of Nexo Finance, sees Bitcoin price hitting $100,000 by mid-2022.On the other end of the spectrum is Sussex University professor Carol Alexander, who thinks Bitcoin price could drop to as low as $10,000, thereby wiping out all the gains it had made in 2021.Bitcoin has been trending almost in the middle of these two extremely far predictions and at press time the cost to purchase one BTC is close to $36,500 at Coinbase.BTC/USD weekly price chart. Source: TradingViewBitcoin’s circulation will increase on an average of 6.25 BTC per 10 minutes until the next halving in early 2024. This means miners will produce about 900 BTC every day. As a result, by the end of June 2022, there will be a total of 162,900 BTC created into the year.This would push the total Bitcoin supply in circulation to about 19.078 million BTC. If BTC price is $100,000 by then, its total market capitalization would be nearly $2 trillion, up 128.50% from the year’s opening valuation near $875 billion.Conversely, a drop to $10,000 would push the Bitcoin market capitalization of the total circulated tokens down to over $190 billion, down $685 billion, or about 78%, from this year’s open.So the biggest question that comes to mind after looking at these mind-boggling predictions is whether it is even possible for Bitcoin to move violently towards either of the targets mentioned above. In my opinion, the answer is a BIG YES, mainly because BTC price has been notoriously volatile in the past.Bitcoin quarterly returns. Source: CoinglassOne question to consider is whether or not investors are ready to inject almost a trillion dollars into the Bitcoin market across the next six months? Trenchev believes they may because of the “cheap money” factor.Sovereign currency devaluation remains a catalystInvestors will have noticed that the U.S. dollar’s valuation has been recovering lately. A popular economic indicator, dubbed as the “U.S. dollar index,” measures the greenback’s strength against a weighted basket of six foreign currencies — the Euro (EUR), Japanese Yen (JPY), Pound Sterling (GBP), Canadian Dollar (CAD), Swedish Krona (SEK), and Swiss Franc (CHF) — surged over 7% to 96.22 last year.U.S. dollar index weekly price chart. Source: TradingViewIt’s also worth noticing that the dollar’s valuation has surged only against fiat currencies, but against commodities, the greenback has been losing battle after battle. For instance, a recent U.S. Bureau of Labor Statistics report indicates that consumers paid 7% higher for everyday items in December 2021 than they did 12 months ago. In other words, the inflation in the world’s largest economy has risen to the levels never seen before 1982.This shows the dollar is nothing but the best weak boxer in a ring competing with the six weakest boxers. Sure, the greenback has been winning rounds against them all, but it has also been running away from the real competition. Speaking of competition, let’s compare its value against a scarcer asset, gold.Fiat currencies versus Gold since 1900. Source: VOIMAThe image above also shows that almost all the fiat currencies have lost their sheen against gold. The big elephant in the room is inflation, which benefiting investors that have been hoarding the precious metal — or any hard money equivalent — against the current bearish trend in currencies like the dollar.Currently, there is about $40 trillion circulating across markets, which includes all the physical money and the money deposited in savings and checking accounts. Meanwhile, investments, derivatives and cryptocurrencies are above $1.3 quadrillion.So yes, there are enough greenbacks available in the market to pump the Bitcoin market by another trillion dollars, such that its cost per unit rises to $100,000 in the next six months.Why hasn’t BTC hit $100,000 already?Before even entertaining that argument, it is wiser to look at Bitcoin’s market cap performance over the years.BTC/USD six-month market cap chart featuring $100B+ in rallies. Source: TradingViewIn the six-month timeframe chart above, one can see that there has not been a single instance wherein the Bitcoin market capitalization had risen by over $1 trillion. Similarly, there also has not been a single case where Bitcoin’s market valuation dropped by more than $190 billion in six months, as required in the event of a BTC price drop to $10,000.Despite not rising or falling drastically, the Bitcoin market — as per historical data — attracts more capital in that it spits out, indicating why its price per unit has rallied by more than 14,250% to date since January 2014.Now, returning to the “why-it-has-not-happened” argument, there seems to be only one answer: uncertainty. And uncertainty has many branches, ranging from regulatory troubles to fears that the Bitcoin market may need a correction after rallying for almost two years in a row.The Fed’s “taper tantrum” is impacting investor confidenceThe most commonly discussed reason for Bitcoin’s recent drop from $69,000 to $34,000 is the U.S. Federal Reserve’s decision to end its $120 billion a month asset purchasing program sooner than anticipated. This is expected to be followed by at least three interest rates hikes from their current near-zero levels.These loose monetary policies ended up injecting about $6.5 trillion since the coronavirus-induced global market crash in March 2020. As a result of the excess liquidity, the dollar’s value dropped while riskier assets, including Bitcoin, became ballistically bullish. According to Crossborder Captial founder Micheal Howell, the excess funds in the market ‘had to go somewhere.’M2 money supply weekly chart. Source: TradingViewAs the Fed unwinds its quantitative easing policy to tame inflation, it effectively removes the excess dollars from the market. And as the markets — hypothetically — run out of cash, they raise it by selling their most profitable investments, be it stock, real estate, Rolex watches or crypto.Therefore, the next six months could turn out to be a seesaw between those who need cash and those who don’t. Inflation led by the dollar devaluation could keep many investors from selling their assets, including Bitcoin. But with the Fed switching off its liquidity plug, crypto markets could face difficulties in attracting new money.This leaves Bitcoin with investors and firms that have excess cash in their treasuries and have been looking to deploy them into easily liquefiable assets. So far, Bitcoin has attracted big names like Tesla, Square, MicroStrategy, and others. So naturally, it would take at least a popular Wall Street firm’s willingness to add Bitcoin to its treasury to enable BTC’s push toward $100,000.Waiting on the retail boomMeanwhile, as inflation creeps into people’s everyday lives, their likelihood of adopting hard assets to protect their savings could also mean a boon for the Bitcoin market. For instance, BTC’s climb to $69,000 last year coincided with an unprecedented spike in retail interest, per a Grayscale Investment report.Related: Retail is pushing the Bitcoin price up, says Ledger CEOThe U.S. firm surveyed 1,000 investors and found that 59% were interested in investing in Bitcoin. Meanwhile, 55% said they had purchased the assets between December 2020 and December 2021.Bitcoin addresses with a non-zero BTC balance. Source: GlassnodeWhether boom or bust, here’s what needs to happenIf, Bitcoin were to reach $100,000 by the end of June 2022, here’s what would need to happen. The M2 money supply remains at an all-time high.The planned interest rate hikes fail to keep inflation below the Fed’s 2% target.The number of non-zero Bitcoin wallets continues to rise to new record highs.More companies add BTC to their treasuries.Meanwhile, Bitcoin could crash to $10,000 if:Long-term investors decide to dump Bitcoin to raise cash.Regulatory issues and a sharp correction in equities prices weighs on crypto pricing.Some unforeseen market manipulation or black swan event tanks BTC price like the March 2020 flash crash.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Analysts say Bitcoin’s bounce at $36K means “it’s time to start thinking about a bottom”

Bears remain in full control of the cryptocurrency market on Jan. 24 and to the shock of many, they managed to pound the price of Bitcoin (BTC) to a multi-month low at $32,967 during early trading hours. This downside move filled a CME futures gap that was left over from July 2021.Data from Cointelegraph Markets Pro and TradingView shows that the $36,000 level was overwhelmed in the early trading hours on Monday, leading to a sell-off that dipped below $33,000 before dip buyers arrived to bid the price back above $35,500.BTC/USDT 1-day chart. Source: TradingViewHere’s a look at what several analysts are saying about the macro factors at play in the global financial markets and what to be on the lookout for in the months ahead. “Rate hikes don’t kill risk assets”For several weeks the dominant conversation in U.S. financial markets has been the prospect of up to four interest rate hikes by the Federal Reserve over the course of 2022, which many people have claimed will put an end to the current bull market. But according to financial analyst and pseudonymous Twitter user ‘Tascha,’ this is a common misconception because “rate hikes don’t kill risk assets.”Tascha said, “Reversal of quantitative easing does. Check what happened to stocks 2015 and 2018 when Fed turned off the tap.”Further insight into Tascha’s tweet was provided in the following reply from pseudonymous Twitter user RK Maruvada. Is it time to think about a bottom?A bit of hope for the crypto faithful was provided by technical analyst and Bollinger Bands creator John Bollinger, who posted the following tweet suggesting that “it’s time to start thinking about a bottom in cryptos.” It’s time to start thinking about a bottom in cryptos. However the ability to get outside the lower Bollinger Band repeatedly strongly suggests a retest of some sort will be needed. My plan is wait for a bottom and a bounce, then look for a retest as an entry. $btc, $eth, $ltc…— John Bollinger (@bbands) January 24, 2022While the well-known analyst thinks that the market may be in the general area of a bottom, caution is still warranted and a bounce followed by a retest is needed before looking to enter a long position in BTC. Related: Bitcoin ‘enters value zone’ as BTC price floor metric goes green againOpening a Bitcoin long “looks attractive here”A final bit of analysis was provided by macro strategist and Delphi Digital co-founder Kevin Kelly, who indicated that “the big question now is where will the next wave of demand come from and what level do we need to hit for it to trigger such bids? BTC/USD 1-day chart. Source: TradingViewAccording to Kelly, “the mid-to-high $30,000s for BTC is a safe bet,” especially due to the widely held belief by many that Bitcoin could see a “run up to $70,000.” This would mark a 75% gain from the current levels, which “large capital allocators would salivate at the opportunity to capture” from Kelly’s view, “even if it takes a year or longer to realize such gains.”Kelly said, “That is why we firmly believe BTC looks attractive here for those with a long enough time horizon, especially when compared to traditional alternatives to park your capital.”This sentiment that BTC is at a good level for a long was also echoed in the following tweet by cryptocurrency analyst and Twitter user Will Clemente.Don’t think asymmetry is skewed to the downside for BTC here. For the long term investor this is a good area to DCA in some heavier buys IMO.— Will Clemente (@WClementeIII) January 24, 2022

The overall cryptocurrency market cap now stands at $1.594 trillion and Bitcoin’s dominance rate is 41.9%.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Bitcoin records all-time high network difficulty amid price fluctuations

The Bitcoin (BTC) network has recorded a new all-time high mining difficulty of 26.643 trillion with an average hash rate of 190.71 exahash per second (EH/s) — signaling strong community support despite an ongoing bear market.The Bitcoin network difficulty is determined by the overall computational power, which co-relates to the difficulty in confirming transactions and mining BTC. As evidenced by the blockchain.com data, the network difficulty saw a downfall between May and July 2021 due to various reasons including a blanket ban on crypto mining from China.BTC network difficulty. Source: Blockchain.com.However, as the displaced miners resumed operations from other countries, the network difficulty saw a drastic recovery since August 2021. As a result, on Jan. 22, the BTC network recorded an ATH of 26.643 trillion. Data from BTC.com estimates that the network will continue to grow stronger by attaining another ATH in the next 12 days — with a network difficulty of 26.70 trillion.Estimated BTC network difficulty in the next 12 days. Source: BTC.com.In the last four days, F2Pool has been the highest contributor to the hash rate by mining 88 BTC blocks, followed by Poolin at 76 blocks. As of yesterday, the average fee per transaction is roughly $1.58, a value that historically peaked at $62.78 back in Apr. 2021.Related: Bitcoin could outperform stocks in 2022 amid Fed tightening — Bloomberg analystDespite the federal pressure for tighter monetary policies around cryptocurrencies, Bloomberg commodity strategist Mike McGlone suggests that BTC has a fighting chance to come out on top as investors recognize its value as a digital reserve asset. As Cointelegraph reported, McGlone believes Bitcoin is in a unique position to outperform in an environment where stimulus reduction is usually considered negative for risk assets:“Cryptos are tops among the risky and speculative. If risk assets decline, it helps the Fed’s inflation fight. Becoming a global reserve asset, Bitcoin may be a primary beneficiary in that scenario.”

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Bitcoin falls to $36K, traders say bulls need a ‘Hail Mary’ to avoid a bear market

Bitcoin (BTC) price continues to sell-off and the knock-on effect is an even sharper correction in altcoins and DeFi tokens. At the time of writing, BTC price has sank to its lowest level in 6 months and most analysts are not optimistic about an immediate turn around. Data from Cointelegraph Markets Pro and TradingView shows that a wave of selling that began late in the day on Jan. 20 continued into midday on Friday when BTC hit a low of $36,600.BTC/USDT 1-day chart. Source: TradingViewHere’s a check-in with what analysts have to say about the current downturn and what may be in store for the coming weeks.Traders expect consolidation between $38,000 and $43,000The sudden price drop in BTC has many crypto traders predicting various dire outcomes along the lines of an extended bear market. Others like independent market analyst ‘Rekt Capital’, are not so quick to jump the gun and declare that all is lost. As shown in the following chart posted by Rekt Capital, “the recent BTC rejection means that BTC is now residing at the lower region of its current $38,000-$43,100 range.”BTC/USD 1-week chart. Source: Twitter.According to Rekt Capital, “Bitcoin is just consolidating inside the $38,000-$43,100 range,” but needs to hold this support level to avoid dropping down into a lower consolidation range. Rekt Capital said,“Technically, the $38,000 support area is what separates BTC from entering the $28,000-$38,000 consolidation range. Bitcoin last consolidated in said range in Q1 and Q2 of 2021.”Head and shoulders pattern confirmedAnalysis of the BTC price action from a purely technical point of view was touched on by David Lifchitz, managing partner and chief investment officer at ExoAlpha, who pointed out that the “giant head and shoulders pattern for BTC is now completed with the neckline broken with BTC at $38,300.” BTC/USDT 1-day chart. Source: TradingViewFrom a theoretical standpoint, Lifchitz noted that this pattern predicts a possible drawdown as low as $20,000, but he stated that the “fall has generally been less than that” and suggested that “the $31,000 region could definitely be in sight.” From a fundamental point of view, Lifchitz noted multiple factors that are creating headwinds for BTC, including tightening from the U.S. Federal Reserve, chatter from the EU regulators looking to ban proof-of-work mining, profit-taking from late 2021 and the continued uncertainty about the economic future as it relates to the Covid pandemic. Lifchitz said, “Therefore for Bitcoin, a move down to the low-mid $30,000 could be definitely in the cards soon before real dip-buyers show up.”Traders look to scoop up BTC at $30,000A look at how traders have responded to this drawdown as compared to the pullback in June of 2021 was provided by analyst and Cointelegraph contributor Michaël van de Poppe, who posted the following chart highlighting the major support zones for each period of weakness. BTC/USD 1-day chart. Source: Twittervan de Poppe said, “Back in June → People are waiting for $23,000 to $25,000 to buy. Right now → People are waiting for $30,000 to buy. Similar fake breakout on the upside to nuke afterward into support.”A similar point of view was offered by trader and pseudonymous Twitter user ‘Fomocap’, who posted the following chart outlining how BTC could perform in the days ahead. BTC/USD 1-day chart. Source: TwitterFomocap said, “Relief bounce to $44,000 – $42,000 retest, if rejection then $35,000 – $33,000. What do you think?”Related: Crypto Twitter responds to Bitcoin dump: ‘Ok cool’Bulls need a close above $39,600A final bit of insight into was offered by crypto trader Scott Melker, who posted the following chart showing the price breakdown below a key level that must be recovered. BTC/USD 1-day chart. Source: TwitterMelker said, “Bulls looking for a Hail Mary close above $39,600 on the daily. A close below (especially on weekly) is a break in market structure, lower low etc. Bears showing no mercy.”The overall cryptocurrency market cap now stands at $1.801 trillion and Bitcoin’s dominance rate is 40.4%.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Bitcoin’s transition to a risk-off asset will propel it to $100K in 2022, says Bloomberg analyst

Bloomberg analyst Mike McGlone is convinced Bitcoin is on track to reach $100K in 2022, as it completes its transition from a risk-on to risk-off asset. While the Fed is planning to raise interest rates to fight inflation, risk-on assets like crypto may suffer, as people would likely prefer to invest in fixed-income assets like bonds. While this trend may represent a short-term hurdle, McGlone said he is confident that Bitcoin will still appreciate significantly in 2022:“Bitcoin is in a unique phase, I think, of transitioning from a risk-on to risk-off global digital store of value, replacing gold and becoming global collateral. So I think that’s going to be happening this year.”He said he considers the current bearish sentiment as a positive sign, indicating market consolidation. The analyst is also bullish on Ethereum, given its key role in providing the main infrastructure for decentralized finance and nonfungible tokens (NFTs). He is also convinced that USD-backed stable coins will proliferate in 2022. McGlone’s outlook for the broad crypto market is not as optimistic, though, given the large number of speculative bets among altcoins.  “Simple rules of economics do not favor prices of a market where there’s an unlimited supply and ease of entry. That’s the crypto market”. To find out more about McGlone’s crypto outlook for 2022, check out the full interview on our YouTube channel and don’t forget to subscribe!

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Bearish sentiment may soon abate according to Coinshares and Bitcoin metrics

While key Bitcoin (BTC) metrics don’t paint a pretty picture, the bears could be running on fumes. Contrary to analysts warning that Bitcoin could dip to $38,000 “before an eventual breakout”, CoinShares and Arcane Research suggest that the tide could be turning. In brief, Bitcoin institutional outflows were negative four out of the last five weeks, totaling $55 milion. The total assets under management fell to a three-month low of $35 billion midweek last week. CoinShares’ findings illustrate that large investors in the Bitcoin ecosystem; those using companies such as Grayscale, CoinsXBT, ProShares, and ETC Group have been reducing their exposure to the digital asset. Their actions are compounded by the fear and greed index hogging the “extreme fear” dial for two months, as Bitcoin spot buying volume hit a six-month low. If the fear and greed index enters a third consecutive month of extreme fear, it will be the second time to do so in the metric’s existence. Traders are also trepidatious. According to Arcane Research, the seven-day average real BTC trading volume sits at $3.4 billion. It’s the lowest figure since July 2021, remembered as the trough of the mini bear market that occurred from May to July 2021. Investors and spectators in the space will remember that following that moment, from August to October 2021, the BTC price swelled by more than 60%, buoyed by robust institutional investment. Related: 43% of Bitcoin trading volume during US market hours: Arcane ResearchPlus, with Bitcoin 30-day price volatility constrained to the lowest level seen for twelve months, at 2.5%, the spring is coiled. Twitter analysts clamor for upside action. Popular Bitcoin bull @GalaxyBTC tells followers that $80,000 is on the horizon while @Tradermayne says the “bottom is in for the nth time.”

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Analysts warn that Bitcoin could dip to $38K 'before an eventual breakout'

The cryptocurrency market faced another day of weakness on Jan. 18 as the price of Bitcoin (BTC) dropped lower and additional pressure was also put on the altcoin market. Currently, the crypto Fear and Greed Index registered “Extreme Fear” among investors and some traders caution that BTC price could soon fall below its recent $39,000 swing low.Crypto Fear & Greed index. Source: AlternativeData from Cointelegraph Markets Pro and TradingView shows that bulls lost control of the $42,000 support level during the early trading hours on Tuesday as bears hammered the BTC price to a daily low of $41,250. BTC/USDT 1-day chart. Source: TradingViewJanuary is historically weak for BitcoinMany crypto holders who were disappointed by the lack of a blow-off top to close out 2021 also expecting fireworks to start 2022, but historically speaking, January “has been one of the most disappointing months for BTC” according to a recent report from Delphi Digital. BTC/USD normalized year-to-date performance. Source: Delphi DigitalDelphi Digital pointed to “a slowdown in global liquidity growth and tighter policy expectations” as the primary source of headwinds for Bitcoin and they highlighted that these factors have also led to weakness in the stock market, which is considered to be strongly correlated with the price movements seen in BTC. Another source of weakness identified by Delphi Digital was a lack of liquidity in the perpetual and futures markets along with a drop in BTC open interest over the past two months. Delphi Digital said, “For the most part, the price contraction stemmed from liquidity issues in the perp/futures market, which triggered a series of liquidations that exacerbated BTC’s initial price weakness.”As for what comes next, Delphi Ditial indicated that “short-term momentum indicators appear to signal the worst may be behind us” and the analyst noted that the Fear & Greed index is at levels not seen since May 2021.Related: Bitcoin hodlers ‘under siege’ at $42K as 30% of BTC supply flips from profit to lossBitcoin price could dip under $38,000A similar trend of weakness was addressed by crypto market intelligence firm Decentrader, who observed that the number of overly bullish “I’m buying the dip” traders on crypto Twitter was challenged around $41,000.The analysts suggested that based on the size and consistency of the BTC drawdown over the past two months, “a move out of the range to the upside is the most probable outcome eventually and they expect the price “to run towards the 200DMA and the point of breakdown in the summer at around $49,000 – $50,000.”BTC/USD 1-day chart. Source: DecentraderDecentrader said, “It is our view that we may need to see some further ranging between $44,000 and potentially $38,000 before an eventual breakout.”For traders hard hit by this latest drawdown, Twitter user ‘John Wick issued a positive perspective.I just want to take a moment to say to you guys who might be underwater in your positions that its okay.Every cycle this happens. Most of us have to wear these battle scars at least once in our journey to becoming a better trader/investor. I know I did.Just don’t give up.— John Wick (@ZeroHedge_) January 18, 2022The overall cryptocurrency market cap now stands at $1.976 trillion and Bitcoin’s dominance rate is 40%.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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El Salvador’s Bitcoin wallet onboards 4M users with Netki partnership

El Salvador, the first country to make Bitcoin (BTC) a legal tender has onboarded 4 million users for its government-backed BTC wallet Chivo in partnership with digital identity provider Netki, according to an announcement.Netki has announced that Chivo wallet onboarded over 4 million new users in 45 days using the company’s flagship KYC/AML product, OnboardID. The platform also claimed that it had facilitated the compliant onboarding of 70% of the country’s previously unbanked population. El Salvador passed the Bitcoin bill in June last year and officially made Bitcoin a legal tender along with the U.S. dollar in September. Nayib Bukele, the President of the small Central American nation, made it clear that the goal was to offer digital banking facilities to more than 70% unbanked population in the country. To promote BTC use and ease of transactions, the government launched a national crypto wallet named Chivo and a $30 airdrop in BTC.Major financial institutions, including the World Bank and the IMF, shared drastic forecasts while warning El Salvador of unwarranted economic consequences. However, President Bukele continued to promote Bitcoin use in the country and rebuked all the fear-mongering. After the IMF rejected $1 billion financial aid, the El Salvador government launched Bitcoin volcanic bond as Bitcoin proponent Max Keiser advised.Earlier today, President Bukele also responded to Moody’s recent downgrading of El Salvador’s sovereign debt and said, “BREAKING: EL SALVADOR DGAF”BREAKING: EL SALVADOR DGAF https://t.co/VuJ25PcvQL— Nayib Bukele (@nayibbukele) January 17, 2022 Related: El Salvador’s dollar debt dives on Bitcoin bond plansChivo has been instrumental in making El Salvador the first country to make Bitcoin easy as using fiat. Apart from transferring money worldwide, Chivo wallets are being used for daily transactions at restaurants, cafeterias, malls and every other retail market. The government has also deployed hundreds of Bitcoin ATMs across the country that facilitates millions in cross-border remittance. Chivo has managed to do what banks haven’t been able to do in decades. 

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Bitcoin miner Rhodium set for IPO, valued at $1.7 billion

The first IPO for the crypto industry in 2022 comes from a Texas-based Bitcoin (BTC) mining company, Rhodium Enterprises.In an SEC filing made last week, Rhodium plans to offer 7.69 million shares at $12-$14 each in an initial public offering (IPO). Trading under the ticker “RHDM” on Nasdaq, 56.8 million class A and 67.5 million class B shares will be released, ultimately valuing the company at just shy of $1.7 billion. Rhodium is a cryptocurrency technology company that uses proprietary tech and liquid cooling technology to self-mine Bitcoin. Their goal is to be the most sustainable and cost-efficient producer of Bitcoin in the industry.The company joins a growing list of US-based companies that mine Bitcoin. Over the past three years, Marathon, Bitdeer Technologies, Riot Blockchain, and Bit Digital listed on stock exchanges such as NASDAQ.According to the filing, Rhodium currently runs 125 megawatts (MW) of mining power capacity at its first Texas site. 33,600 Bitcoin miners are running, churning out a total combined hash rate capacity of approximately 2.7 EH/s.Following the IPO and a raise of $100 million capital, it will run a second site in Texas where they “expect to develop 225 MW of additional capacity.” By the end of 2022, the company will effectively more than double its current capacity. Bearing in mind that the average cost per BTC in 2021 was about $47,000, their electricity cost basis is staggering: Our infrastructure platform allows us to mine Bitcoin at a significantly lower cost compared to the industry average. For the period from January 1. 2021, to September 30. 2021, our average electricity cost to produce one Bitcoin was approximately $2,507.Related: Mr. Wonderful plans to invest in mining company stocksTexas continues to carve out a reputation as a Bitcoin mining-friendly state. In quarter four of 2021, Senator Ted Cruz commented that Texas should use Bitcoin mining to capture wasted natural gas while the Electric Reliability Council of Texas (ERCOT) anticipated that Texan Bitcoin mining power demands could jump 5 times by 2023.Rhodium takes advantage of Texas’ “independent power market and abundance of low-cost renewable energy resources,” and pro-Bitcoin business environment. Given the company’s experience with liquid-cooling technology and efficiency; for tiny Bitcoin miners seeking to solve valid blocks, it just got a bit harder. 

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Bitcoin cycle is far from over and miners are in it for the long haul: Fidelity report

Fidelity Digital Assets — the crypto wing of Fidelity Investments which has $4.2 trillion assets under management–shared their “two sats” on the future of the digital assets space. The key takeaways touched upon miners’ behavior and Bitcoin (BTC) network adoption. In the annual report released last week, the group shared some insights into the world of BTC mining:“As Bitcoin miners have the most financial incentive tho make the best guess as to the adoption and value of BTC (…) the current bitcoin cycle is far from over and these miners are making investments for the long haul.”The report stated that the recovery in the hash rate in 2021 “was truly astounding”, particularly when faced the world’s second-largest economy China banning Bitcoin in 2021. The rebound in hash rate since the ban thanks to BTC’s hash power being “more widely distributed around the world,” showed miners are set on long-term profits.The statements aligned with miners’ recent selling performance. Key on-chain metric indicate Bitcoin miners are in “massive” BTC accumulation mode, as miners show no desire to sell. Related: Fidelity exec says Bitcoin is ‘technically oversold,’ making $40K a ‘pivotal support’When it came to orange-pilling entire countries, Fidelity made some interesting predictions into more nation-states accepting BTC as legal tender: “There i​​s very high-stakes game theory at play here, whereby if bitcoin adoption increases, the countries that secure some bitcoin today will be better off competitively than their peers. We, therefore, wouldn’t be surprised to see other sovereign nation-states acquire bitcoin in 2022 and perhaps even see a central bank make an acquisition.”Their comments come as Tonga’s former MP suggested the country could adopt BTC in late 2022. In essence, more regulation and better products will open up the crypto space, “bringing a greater portion of the hundreds of trillions in traditional assets into the digital asset ecosystem.” Combined with miners’ hodling, it could lengthen the cycle and drive BTC to new highs.

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Institutional investment will boost Bitcoin to $75,000, says SEBA CEO

The CEO of Swiss-based financial institution SEBA Bank shared his predictions for Bitcoin in 2022. A boon for BTC bulls, Guido Buehler was optimistic about institutional adoption and a price increase to $75,000 per coin.He explained in an interview that, at SEBA, asset pools are looking for the right time to invest. However, they need the right counterparties and the necessary regulation in order to deploy capital. When pressed on whether Bitcoin (BTC) would hit new highs this year, Buehler thinks it’s possible, “the question is always time.” He noted that with BTC dominance bottoming out at 40%, it’s a pivotal moment for investors looking for a directional play. The interview took place at the Crypto Finance Conference in St. Moritz, Switzerland, where “sophisticated” players across the crypto space came together to discuss potential business deals. The reasons behind price increases clash with the CEO of Ledger’s musings. At the same conference, Pascal Gauthier agrees on BTC hitting new highs but it’ll be retail leading the charge. Related: Fidelity exec says Bitcoin is ‘technically oversold,’ making $40K a ‘pivotal support’SEBA bank is building a reputation as a crypto-friendly banking institution. The bank recently completed a Series C funding round of 110 million Swiss francs ($119 million) in which FTX and Alameda Research were investors. In October last year, the bank said that customers would soon be able to earn yields on their crypto holdings. A crypto enthusiast himself, in Buehler’s words, the technology behind Bitcoin will “redefine finance.”

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