Category Archives: Bitcoin
Ethereums Vitalik Buterin Claps Back at Bitcoin Maxis Who Mock Proof of Stake – Decrypt
Vitalik Buterin is taking to Twitter to defend Ethereums move to proof of stake.
The Ethereum co-founder took a shot at Swan Bitcoins managing editor Nick Payton, who argued Thursday that any cryptocurrency that powers a proof of stake blockchainwhich uses validators with pledged, or staked, assets to verify transactionsis a security.
The fact that you can vote on something to change its properties is proof that its a security, Payton said. The insult hits at a sore spot for a crypto industry that has for years battled with the Securities and Exchange Commissionand one that is particularly touchy for Ethereum investors, since the matter of whether or not ETH should be considered a security remains an open question.
Early Friday morning, Buterin called Paytons assertion a bare-faced lie.
It's amazing how some [proof-of-work] proponents just keep repeating the unmitigated bare-faced lie that [proof-of-stake] includes voting on protocol parameters (it doesn't, just like [proof-of-work] doesn't) and this so often just goes unchallenged, he said, adding, Nodes reject invalid blocks, in [proof-of-stake] and in [proof-of-work]. It's not hard.
Proof of work, which involves the participation of miners who devote large amounts of computing power to solve complex, mathematical problems, is currently how both Bitcoin and Ethereum validate transactions and secure their networks. Ethereum, however, is in the process of transitioning to proof of stake through a long-awaited update now known as the Merge.
In his defense of proof of stake, Buterin took his retort one step further with a tongue-in-cheek grammar correction for the editor.
In English when talking about things like proof of stake, we don't say It's a security," we say "it's secure." I know these suffixes are hard though, so I forgive the error, Buterin said.
While Bankless founder Ryan Sean Adams called the retort the spiciest Vitalik tweet Ive ever read, this is far from the first time Buterins gotten into arguments with anti-Ethereum Bitcoiners online.
Earlier this month Buterin responded to Bitcoin maximalist Jimmy Song, who argued that proof of stake does not provide decentralized consensus because it does not, in Songs view, solve The Byzantine Generals Problem. Song was referring to the problem of achieving consensus without dome centralization through a trusted single party. Consensus in crypto is achieved when multiple entities are all able to agree on the same data without the intervention of a central authoritythis enables blockchain transactions.
But for Vitalik, Songs argument hinges on a technicality.
If there's a long-established tradition of people debating A vs B based on deep arguments touching on math, economics and moral philosophy, and you come along saying B is dumb because of a one-line technicality involving definitions, you're probably wrong, Buterin said.
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Ethereums Vitalik Buterin Claps Back at Bitcoin Maxis Who Mock Proof of Stake - Decrypt
Bitcoin was supposed to hedge against inflationhere’s why it hasn’t worked that way – CNBC
Bitcoin has plunged in value this year, weakening the argument often made by crypto enthusiasts that it can be an effective hedge against inflation during times of economic turmoil.
Bitcoin advocates have long argued that its scarcity would protect its value during times of rising inflation. Unlike central banks which can increase the supply of money there are a fixed number of coins, which keeps them scarce.
Even before the market crashed, there was debate about whether or not bitcoin would hold its value. Billionaire investor Paul Tudor Jones was bullish on bitcoin as an inflation hedge, while Dallas Mavericks owner and investor Mark Cuban dismissed the idea as a "marketing slogan."
Another argument is that bitcoin, along with other similar cryptocurrencies, will have an intrinsic store of value over time as it becomes more accepted, like gold. Supporters believe it will be seen as an asset that won't depreciate over time.
However, this has not been proven to be true, at least not yet. The value of the cryptocurrency market overall has plummeted alongside rising inflation, with bitcoin losing half of its value since January. As of Friday, the price of bitcoin is $21,833, according to Coin Metrics.
With crypto, "the extent of [price] volatility is so significant, it's very hard for me to view it as a long-term store of value," Anjali Jariwala, certified financial planner and founder of Fit Advisors, tells CNBC Make It.
Jariwala says that crypto in general is a new type of asset that doesn't yet function either as a sought-after commodity like gold, or even as a currency, "because it's not easily exchanged for a good or service." Despite its scarcity, the price of a cryptocurrency like bitcoin is still based largely on consumer sentiment, she says.
"It's tricky because it's supposed to act like a currency, it's taxed like property and some people compare it to a commodity. At the end of the day, it really is its own asset class that doesn't have a pure definition."
Another consideration is that cryptocurrencies like bitcoin have only been around for just over a decade. Because of this, "there isn't enough history there in terms of historical data to really understand what purpose it serves as an investment," Jariwala says.
While cryptocurrencies like bitcoin are "not proven" to be a reliable, long-term store of value, they could still gain acceptance over time and become less volatile, Omid Malekan, an adjunct professor at Columbia Business School specializing in crypto and blockchain technology, tells CNBC Make It.
"Once volatility smooths out, we will have a better picture of how it responds to macro developments, like the rate of inflation or what the Fed is doing," he says, cautioning that current crypto prices could reflect all sorts of inputs aside from inflation, like too many overleveraged cryptocurrency lenders or a lack of regulation.
Either way, crypto as a whole remains a highly speculative investment. Jariwala recommends only investing with money you're prepared to lose. She also says to think of crypto investing as a long-term strategy and "stick to that strategy even during times like this."
Cryptocurrency might evolve into a more mature asset that can be a hedge against inflation. But "we just don't know yet, until we see more of a track history with it," says Jariwala.
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Bitcoin was supposed to hedge against inflationhere's why it hasn't worked that way - CNBC
Bitcoin (BTC) Is the Only Safe Haven Amid Full-Blown Recession, Says Host of InvestAnswers – The Daily Hodl
A popular crypto analyst is issuing a dire warning for all financial sectors as he breaks down the state of the macro economy.
The anonymous host of InvestAnswers tells his 442,000 YouTube subscribers that the markets tanked worse during the first half of 2022 than any time over the past half-century, with markets suffering significant losses as interest rates rose.
Im alone on this but Im beginning to see people turn around and begin to see the numbers that we see. First of all, the economy has screeched to a halt, despite the stuff that they say that GDP is strong and everything else.
No, its not. All markets got crushed. Highest, worst downfall in 50 years in the first six months of this year. Consumer confidence at a record low
The Feds fund rate was less than 1% last year now its targeting 3.8% in early 2023. That is a 4x in interest rates. We are in a full-blown recession. No ifs, ands or buts about that.
The analyst adds that the current situation is much worse than during the 2018 stock market dive because the US added $9 trillion worth of debt in about four years.
We have an empire built on debt that cannot handle rates over 3.2%. It simply cant, and let me explain why in simple numbers. The max Fed funds interest rate was 3.2% in 2018 and the markets crashed with $9 trillion less of debt than they have now.
Thats only four or five years ago, so basically they cannot also raise rates in a recession. My simple view of the world, and I would bet my bottom dollar on it.
Turning his attention to safe-haven investments, the InvestAnswers host notes that in the wake of both economic and political crises affecting European currencies, the strength of the US Dollar Index (DXY) held up surprisingly well and even outperformed the Swiss franc over the past six months.
Theres nothing but doom and gloom all over the place, but there is a little bit of a silver lining. According to what we see on the DXY, it does look like its topping out. It did spike to nearly 108, and it came right back down again. That type of formation tells us it could be out of steam.
I think the time to hedge was definitely earlier this year. [Previously] I had a question regarding the euro versus the Swiss franc, and I said the Swiss franc was a safer place. As it turns out, the dollar would have performed a little better by about 2% or 3% in that timeframe. But nobody expected the euro to come crashing down so hard.
The analyst concludes by saying people still have time to acquire hard assets like Bitcoin (BTC) rather than fiat currencies as part of a strategy to hedge against future losses in their investment portfolios.
The bright spot is, [since] its probably too late to hedge, get hard assets. Think about Bitcoin.
Thats the way you hedge your portfolio right now. That will preserve your buying power despite the fact its still considered a risk-on asset and still tanking with everything else.
Thats probably the safest bet. Stay away from the fiat currencies. They all have problems.
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Bitcoin (BTC) Is the Only Safe Haven Amid Full-Blown Recession, Says Host of InvestAnswers - The Daily Hodl
Full Bitcoin Mining Ban On Europe? ECB Think Its Probable – Bitcoinist
Venture advisor for Presight Capital Patrick Hansen shared the results of three new research articles on Bitcoin and cryptos climate risk, decentralized finances (DeFi), and stablecoins. Published by the European Central Bank (ECB), the articles highlight the approach adopted by the financial institution regarding the nascent asset class.
Related Reading |Bitcoin Supply Still Not Underwater Enough For Historical Bear Bottom Zone
The ECB research compared Bitcoin mining with someone driving a fossil fuel car. In that sense, they claimed public authorities have the option of incentivize it, imposing a carbon tax on it, or banning it. The research claims the latter is very probable.
As seen below, the research claims Bitcoin mining consumes more energy than Netherlands, Spain, Austria, and other massive sources of energy. The BTC mining consumption, as presented by the ECB, has been increasing electricity consumption over the years.
In 2022, the Bitcoin Mining Council (BMC) published a report on this blockchains energy consumption. In contrast to the report published by the ECB, this organization claims the Bitcoin mining industry is one of the most sustainable in the world with the rapid adoption of clean energy.
As seen below, members of the which comprised over 50% of the Bitcoin hashrate have a sustainable power mix larger than most countries in the world. Overall, BTC mining consumes less than 0.1% of global energy with 247 terawatts per hour (TWh).
However, Hansen claims the European Union will take action on what they consider to be the fossil fuel driven blockchain and its mining industry. According to the report:
It is highly unlikely that EU authorities will restrict/ban fossil fuel cars by 2035 but refrain from taking action for assets whose current yearly carbon emissions are enough to negate most (..) countries emission savings & (..) global net savings from (..) electric vehicles.
The European Union and its central banks are getting ready to introduce a new regulation for Bitcoin and cryptocurrencies. The financial institution wants to regulate the nascent asset class in-depth with the implementation of two regulations packages called Regulation on Markets in Crypto Assets (MiCA).
The first version of this package is set to come into law as soon as 2024. The second version is still in development but might include a mechanism to regulate Bitcoin and the entities maintaining its blockchain, DeFi, and other crypto intermediaries. The president of the ECB Christine Lagarde said:
MiCA 2 should fully cover decentralized finance (DeFi), currently the focus in on financial intermediaries. Where no intermediary exists, the regulation doesnt apply, and that is the case for Bitcoin. So Bitcoin wont be cover by MiCA 1, but hopefully for MiCA 2 you will take that into account.
Lagarde, other members of the ECB, and members of international regulators, politicians, and financial institutions converged on one point: Bitcoin and cryptocurrencies are becoming a risk to the financial system, and consumers.
Related Reading |Investor Sentiment Nosedives As Crypto Market Sheds $50 Billion
However, some experts believe MiCA 2 goes one step too far in regulating the nascent asset class. The first iteration of this package offers a framework and could provide crypto companies with clear rules. The second might simply pursue the control of the underlying assets.
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Full Bitcoin Mining Ban On Europe? ECB Think Its Probable - Bitcoinist
Fidelity Analyst: Bitcoin Is Cheap Ethereum Could Be Near Bottom Markets and Prices Bitcoin News – Bitcoin News
Fidelitys director of Global Macro has shared his bitcoin and ether price outlook. His analysis shows that bitcoin is cheap but ether could be even cheaper. Ethereum could be close to a bottom, he added.
Jurrien Timmer, director of Global Macro in Fidelity Investments global asset allocation division, shared his bitcoin and ether price analysis in a series of tweets Friday. Timmer specializes in global macro strategy and active asset allocation. He joined Fidelity 27 years ago as a technical research analyst.
He explained why bitcoin is cheap. I use the price per millions of non-zero addresses as an estimate for bitcoins valuation, and the chart below shows that valuation is all the way back to 2013 levels, even though price is only back to 2020 levels, he detailed, emphasizing:
In other words, bitcoin is cheap.
At its recent low of $17,600, bitcoin is now below even my more conservative S-curve model, which is based on the internet adoption curve, the Fidelity director added.
Timmer noted that it is clear from looking at Bitcoins network growth that the adoption curve is tracking the more asymptotic internet adoption curve, rather than the more exponential mobile phone curve. He continued: Per Metcalfes Law, slower network growth suggests a more modest price appreciation.
However, based on a simple power regression line, Bitcoins network appears to be intact, the director opined. That continued growth in Bitcoins network, combined with lower prices, means that bitcoins valuation is coming down.
The Fidelity director of Global Macro proceeded to share his ether price outlook, tweeting:
If bitcoin is cheap, then perhaps ethereum is cheaper. If ETH is where BTC was four years ago, then the analog below suggests that ethereum could be close to a bottom.
At the time of writing, bitcoin is trading at $21,584, up 11% over the past seven days but down 29% over the past 30 days. Ether is trading at $1,217, up 14% over the last seven days but down 32% over the past 30 days.
What do you think about the Fidelity directors analysis of bitcoin and ether prices? Let us know in the comments section below.
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.
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Fidelity Analyst: Bitcoin Is Cheap Ethereum Could Be Near Bottom Markets and Prices Bitcoin News - Bitcoin News
Bitcoin Still Follows This Legendary Pattern Created by Jean-Paul Rodrigue – U.Today
Arman Shirinyan
Bitcoin is still guided by common "bubble pattern" known by every trader and investor
One of the most popular patterns in the world, known as "stages of bubble," was developed by professor Jean-Paul Rodrigue. Itis still considered a viable tool for making cycle-based predictions, which is especially useful during alack of fundamental events happening around the digital assets industry.
According to the pattern, the cryptocurrency market is currently going through the capitulation intodespair phase, which is the last stage before the "return to mean"part, where assets or entireindustries start to gradually recover.
Bitcoin was once guided by the pattern back in the 2013-2015 correction period, when it reached $1,300 and made a new ATH. The retrace began in the first months of 2014 and lasted until October 2015.
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Sometimes assets do notexactly followthe textbook definition of the bubble pattern, but they are still going through distinctive phases on the market. In accordance with the cyclical nature of the bubbles, Bitcoin should bounce in upcoming weeks right after the consolidation we are seeing today, or it will take another hit and plunge once again.
Both the overheating of the whole industry and the macroeconomic structure of financial markets caused the sell-off on the cryptocurrency market that we saw in the last few months. Investors are no longer willing to accept risks that come with investment in digital assets and would rather choose stable options like bonds that are now offering better rates.
The majority of cryptocurrency investors are currently waiting for the release of CPI June data that will affect the upcoming rate hike meeting in July and the direction of U.S. monetary policy.
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Bitcoin Still Follows This Legendary Pattern Created by Jean-Paul Rodrigue - U.Today
Bitcoin ETFs, and the crypto fund wannabes – Axios
If there's any one solid metric proving that the death of crypto has been greatly exaggerated, it's the number of access points for investors to buy crypto.
Why it matters: People want an easy, direct way to invest in crypto, like they invest in stocks and bonds, but regulators have yet to approve them.
So far, the Securities and Exchange Commission has only approved ETFs that hold bitcoin futures, which investors use to trade on the price they think bitcoin will strike, without actually owning any bitcoin.
Details: ETFs are vehicles that can hold virtually any asset, whether they are stocks, bonds or commodities like gold but not for crypto, at least not directly, in the U.S.
State of play: Grayscale's application for a spot bitcoin ETF was rejected by the SEC in June, putting the firm's plans to convert the $14 billion Grayscale Bitcoin Trust into an ETF.
The way Grayscale's product works is like that of closed-end funds. In that only Grayscale can create or remove shares from the market, and the firm does so, through private placements and redemptions available solely to accredited investors, when the firm wants.
How it works: The great thing about an ETF is that through the use of people or firms called "authorized participants," shares can be created and removed from the market as needed, by exchanging them for pro-rata slices of the portfolio they represent.
What's happening: Regulators and wannabe spot bitcoin ETF issuers appear to have reached an impasse in the U.S., with ETF shops continuing to file applications in the face of serial rejection.
Be smart: That's because being first matters.
The other side: Yet a "whirlwind tour" of crypto ETP activity outside of the U.S. shows a blossoming supply of crypto investment vehicles.
ETF issuers from Brazil to Australia are reaching across jurisdictions to offer their products, according to Fuhr.
Aside from the ETFs that track bitcoin futures, which professional investors use to place indirect trades on bitcoin, U.S. investors will also find funds (ETFs included) that hold crypto stocks.
Crystal's thought bubble: In the U.S. the available options are few and mostly indirect plays on crypto, unless you're rich or well-versed in native crypto transactions.
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Bitcoin ETFs, and the crypto fund wannabes - Axios
Crypto Nation Switzerland defiant in face of bitcoin crash – SWI swissinfo.ch in English
The price of bitcoin has plummeted to a third of its peak value, an experimental cryptocurrency called Terra has crashed in spectacular fashion and several crypto companies have shed jobs or are faced with bankruptcy. Where does this leave the growing blockchain industry in Switzerland?
When not covering fintech, cryptocurrencies, blockchain, banks andtrade, swissinfo.ch's business correspondent can be found playing cricket on various grounds in Switzerland - including the frozen lake of St Moritz.
swissinfo.ch
The market crash is going to be cataclysmic for a lot of Swiss start-ups, Adrien Treccani, CEO of the Swiss crypto company Metaco, told SWI swissinfo.ch. I predict that around 20% to 30% of them will die. They will disappear within the next six months.
The volatile cryptocurrency market has experienced yet another boom-and-bust phase. The price of bitcoin went up more than ten-fold between the middle of 2020 and the end of last year, and then slumped by 30%, with much of the losses being felt in the last couple of months.
The boom phase sucked in money from day traders and start-up investors, who were encouraged by a lack of other money-spinning opportunities and the joys of obtaining credit to invest at rock bottom interest rates.
We saw a lot of money blindly flow into dreams that were being sold by technology religion guys, said Erik Wirz, managing partner of canton Zug headhunting firm Wirz & Partners. People want to believe dreams, but a lot of it was vaporware. Several months ago, even before the crypto price crash, investors started asking: Where is the business plan, where is the money?
Boosted by an extensive overhaul of financial and company laws to fold cryptocurrencies into the corporate landscape, the Swiss blockchain industry has grown to more than 1,000 companies, supporting 6,000 jobs.
The self-styled Crypto Nation has yet to see job cuts on the scale of the US-based Coinbase exchange, or company meltdowns along the lines of the Three Arrows Capital hedge fund in the British Virgin Islands, the US firms Voyager Digital and Blockfi or the Singapore-based crypto lending outfit Vauld.
My gut tells me that some companies in Switzerland are in trouble but how the market plays out in future, only time will tell, said Dirk Klee, CEO of Zug-based Bitcoin Suisse. The company increased staffing levels by 60% to 300 last year, but insists that it has not overstretched itself, unlike other competitors.
Other market participants have quadrupled their workforce, or even more, and they are now looking at corrections. We have been a little more prudent, he added.
The recent crushing setbacks have also failed to dampen the enthusiasm of the Swiss blockchain industry as a whole. Its just one of the characteristics of the crypto markets that we have these crashes. This was no big surprise, said Andy Flury, founder of the crypto financial services firm AlgoTrader, based in Zurich.
Theres still a lot of experimentation and some technologies are very new. If some things dont work out now it doesnt mean they cant do better in the future, said Diana Biggs, Chief Strategy Officer at Valour, a Canadian-based company that issues crypto-backed investment products on stock exchanges. There is no putting the brakes on this technology and turning back. I am still bullish on this space.
Such words are typical in Switzerland and may sound like bravado or sheer delusion. The underlying message is that the price of bitcoin is an irrelevance, like the froth on a cappuccino. What matters is the substance left behind when the bubbles have burst.
The goal of blockchain is to build a digital system that frees users from the constraints of the internet by reducing fees, paperwork and time wasted by intermediaries. It also aims to wrest control away from tech giants that harvest personal data for their own profit. The ethos is to create a new type of internet that is owned and controlled by a network of ordinary users.
Such a system, say it creators, will offer a fairer means of commerce, trading, voting, computer gaming, running a business, collecting royalties as an artist, storing personal data and a variety of other use cases.
Crypto as an asset class is here to stay notwithstanding recent events, Tracey McDermott, head of conduct, financial crime and compliance at Standard Chartered Bank, told the recent Swiss-Singaporean Point Zero Forum on financial technology in Zurich.
None of our clients have withdrawn from contracts or delayed projects. The number of new enquiries has not decreased, said Andy Flury. The crypto crash is having no impact on the long-term digital assets strategies of the large financial companies. AlgoTrader counts ten major banks among its clients, as does Swiss digital assets bank Sygnum. Metaco, another company that connects the classical financial world with cryptocurrencies, has recently signed up US banking giant Citi and Socit Gnrale of France.
The recent market crash was accelerated by the failure of a form of cryptocurrency known as a stablecoin, which is designed to peg its value to traditional currencies or other assets, such as gold. The Terra stablecoin, which tried to peg to the US dollar, became wildly popular until it fell apart, taking billions of dollars of investor money with it. Innovation turned into destruction overnight.
This has led to a surge of new regulatory scrutiny from different countries, including the United States and European Union, and from international bodies that oversee the global financial markets.
There is also no denying that decentralised finance has seen much nefarious activity. The publics lust for a quick buck provides fertile ground for ponzi schemes, insider trading, front-running and misleading marketing of crypto investment schemes.
A lot of trading in digital assets looks like the US stock market in 1928 [a period of frenetic speculation that preceded the Wall Street crash], Urban Angehrn, head of the Swiss financial regular, told the Point Zero Forum. All kinds of abuseare frequent and common.
The Swiss Financial Market Supervisory Authority has so far concentrated its efforts on preventing money laundering via cryptocurrencies. But Angehrn hinted that the time might be ripe for more stringent policing of market abuses.
Its not forbidden to speculate. Speculation is a legal activity, he said. But fleecing speculators with shady practices is not OK. We need to have orderly trading and transparency. We should have the means to fight abusive activities, Angehrn warned.
Several cryptocurrency companies that started off life in remote offshore islands, such as the BitMEX and Binance exchanges, have taken note by increasingly moving parts of their operations to strongly regulated jurisdictions like Switzerland.
The cryptocurrency crash will also flush weaker performers out of the market. Many surviving companies view an anticipated period of depressed cryptocurrency prices - known as a crypto winter as an opportunity to quietly build without the trading frenzy distraction.
This bursting bubble will filter out the noise and simplify the market. Normally after a big collapse, new opportunities emerge, said Adrien Treccani.
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Crypto Nation Switzerland defiant in face of bitcoin crash - SWI swissinfo.ch in English
When Will The Bear Market End? – Bitcoin Magazine
The below is an excerpt from a recent edition of Bitcoin Magazine Pro, Bitcoin Magazine's premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.
A look at previous bitcoin bear market cycles shows two distinct phases of capitulation:
Lets cover both of these phases with visuals and data derived from the blockchain.
While much has been written about the macroeconomic backdrop regarding the bitcoin market (with our analysis assuredly included), this bitcoin cycle ironically does not look all that different from the cycles of the past.
At the time of writing, bitcoin is 69.72% below previous all-time highs, with the peak of the drawdown reaching 71.86% on May 18. Bear markets of bitcoins past saw drawdowns of 93.08%, 84.82% and 83.47% respectively. With this in mind, despite the absolute size of this cycles drawdown dwarfing previous cycles, in relative terms this was nothing out of the ordinary for bitcoin.
Bitcoin drawdowns from all-time highs show this drop isn't out of the ordinary
When the average holder of bitcoin is underwater, despite the parabolic gains seen across longer time frames, we view this as a classic price-based capitulation event.
What follows the collapse of the market below the average cost basis of the average holder is what we consider the time-based capitulation event. As the average holder is underwater, most marginal sellers have already sold their holdings, and while further downside is possible, the pain market participants feel is in the form of a prolonged period of time spent underwater rather than rapidly declining prices that characterized the start of the bear market.
It is also worth noting that as price falls, and market participants capitulate at a loss, the average cost basis (realized price) falls. To contextualize this decline in fair value of bitcoin, the history of realized price drawdowns is shown below.
History of realized price drawdowns
Bear market cycles take time to play out and vary in length depending on how you define them.
In all likelihood, the brunt of the largest capitulation event in the history of bitcoin has just occurred. More balance sheet contagion is certainly on the table (rather hiding under it), and the macroeconomic environment looks increasingly ugly. Holders should buckle in, not just in case of more severe market downturns, but the arguably more painful possibility of extended sideways action together with lower prices and plenty of sideways chop as coins are transferred from weak hands to strong hands, and from the impatient to the convinced.
Bitcoin is here to stay. Your job is simply to survive.
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When Will The Bear Market End? - Bitcoin Magazine
Bitcoin price holds $20K, but analysts say expect 6 months of sideways price action – Cointelegraph
Trading across the cryptocurrency market was relatively subdued on July 5 as the ecosystem continues to digest the fallout from the Three Arrows Capital scandal and Voyager Digital announcing that it has filed for Chapter 11 bankruptcy protection.
Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin (BTC) has spent the day oscillating around the $20,000 support level, ranging from a low of $19,775 to an intraday high of $20,480 on $25.48 billion in trading volume.
Heres a look at what several analysts are saying about what could come next for Bitcoin and what support and resistance levels to keep an eye on in the event of a sharp move in price.
A noticeable pattern on the Bitcoin chart prior to the pullbacks that have occurred since November 2021 was pointed out by crypto analyst and pseudonymous Twitter user Moustache, who posted the following chart displaying the similarities between each drawdown.
Moustache said,
Noted market analyst Peter Brandt also recently highlighted the repeating pennant pattern on the Bitcoin chart, but stopped short of saying which way the price could move once the formation completes.
Lately, one of the most popular topics of conversation on crypto Twitter has been centered around trying to predict the bottom in Bitcoin price.
According to cryptocurrency research firm Delphi Digital, Bitcoin has now closed below its 200 weekly average for four consecutive weeks, a development that has historically marked previous market bottoms.
As for whether or not Bitcoin traders should expect a rapid recovery, Delphi Digital noted that this is the longest BTC has remained below its 200 weekly average and highlighted the fact that Bitcoins weekly correlation coefficient continues to remain inversely related to the US Dollar as it hit a 17-month low of -0.77.
While a strong dollar suggests that Bitcoin price will continue to struggle alongside other assets, Delphi Digital highlighted one encouraging development that suggests BTC adoption continues to grow.
Delphi Digital said,
Related: World's first short Bitcoin ETF sees exposure explode 300% in days
A macro look at what the past performance of Bitcoin suggests about its future was provided by market analyst and pseudonymous Twitter user KALEO, who posted the following chart outlining previous market cycles.
Based on the chart and the predicted path provided, Kaleo suggested that the market will continue to trade sideways for the foreseeable future and will be defined by a crab market saying above HTF logarithmic support.
Kaleo said,
The overall cryptocurrency market cap now stands at $916 billion and Bitcoins dominance rate is 42.5%.
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 price holds $20K, but analysts say expect 6 months of sideways price action - Cointelegraph