Crypto2023

At the time of writing, the king of cryptocurrencies is finding buyers at $26,000. However, the cumulative volume of crypto has decreased to $14 billion. The lack of interest has led to significant sideways movement in price over the weekend. On the other hand, Bitcoin miners have set a new record. So, will this have an impact on the price?

Bitcoin Mining

Despite the decline in price, Bitcoin miners are increasing their activities with about 6 months left until the halving. Mining activities of Bitcoin provide vital clues about the network’s health and profitability in the mining sector, and are constantly monitored by experts in the crypto ecosystem. According to the on-chain analysis company Glassnode, the network hash rate reached its highest level in the last 4 months on August 26. The previous 4-month peak was recorded more than a month ago on July 7.

The increase in hash rate is an extremely positive development for the security of the network. More active miners contribute to decentralization. The participation of more miners or the use of more efficient machines usually leads to an increase in this metric.

Bitcoin Hash Rate

The jump in hash rate has pushed mining difficulty to an all-time high last week. Mining difficulty is automatically adjusted approximately every two weeks to keep the total block time at 10 minutes.

Analysts from Bitfinex have revealed that the increase in mining difficulty is due to miners’ expectations of a rise in Bitcoin price. Miners are among the largest investor groups, and their market history is much older than that of an average investor. Experience, knowledge, and advanced analytical capacity give hope to investors at this point.

In their recent evaluation, analysts said:

“Miners can be sure that the price of Bitcoin will eventually recover. This deviation can be seen as just a deviation from its true value. Therefore, making more resource investments to mine Bitcoin at these prices can be quite profitable for them.”

Analysts also pointed out that miners are delaying the sale of their assets due to their belief in the growth potential of BTC. Glassnode’s data supports these views. We can see that the total supply held in miner addresses reached a high level of 1.83 million as of August 26.

It should be noted that miners often make cash outflows to cover mining and energy costs. The delay in liquidations typically indicates their expectation of further strengthening of the Bitcoin price.

#crypto2023 #binacefeed $BTC

Bitcoin (BTC) kicked off the U.S. trading week, falling below $27,500 in the afternoon (ET).

The largest cryptocurrency by market capitalization was recently trading at around $27,350, down over 5.5% in the past 24 hours, according to CoinDesk data, as investors continued to mull over a surge in interest in the PEPE meme coin and Binance congestion issues that forced the exchange giant to temporarily suspend bitcoin withdrawals over the weekend.

Binance resumed the service Sunday night (ET), but the stoppages and rising price of bitcoin raised questions about the impact of large bitcoin transaction volume.

Ether (ETH) followed a similar pattern, falling beneath the $1,900 level it’s held for much of the past seven days. The second largest crypto in market value was trading at around $1,829, off 4.4% on a 24-hour basis.

ETH’s deflationary narrative post-Ethereum Shapella upgrade has strengthened as ETH’s net issuance, or the annualized inflation rate, recently dropped to -2.7%, according to ultrasound.money. More than 62,300 ETH, worth around $116 million, have been burned over the past seven days, ultrasound.money’s data tracker showed.

“Both BTC and ETH haven't tested near-term supports since the rally we saw around mid-March," Joe DiPasquale, CEO of crypto fund manager BitBull Capital, told CoinDesk in an email.

DiPasquale said BTC might test support between $25,000 and $27,000 before bouncing again, although the economic outlook is favorable for BTC and the broader crypto market to thrive. He called accumulating BTC and ETH on dips a “sound strategy.”

Most major tokens were also trading in the red on Monday, including crypto payment-focused XRP and Polygon’s MATIC, which both tanked over 8% to trade at around 42 cents and 92 cents, respectively. The PEPE craze appeared to be waning with its market cap dropping to some $878 million after peaking above $1 billion before the weekend, Messari data showed.

The CoinDesk Market Index (CMI), which measures the overall crypto market performance, was down over 5% for the day.

Greg Cipolaro, global head of research at bitcoin investment firm NYDIG, wrote in a Friday newsletter that despite short-term price fluctuation, BTC is increasingly serving as a “buy-and-hold asset” based on on-chain data.

“With more bitcoins being held for longer, a dwindling supply is available for short-term trading,” Cipolaro wrote, adding that this may result in increased volatility or trading costs through wider spreads.

“Given bitcoin’s fixed supply nature, this also means that fewer bitcoins are available for others to purchase. This may result in upward pressure on prices if the demand for bitcoin grows,” he wrote.

Equity markets turned mixed on Monday midday, with the S&P 500 and tech-heavy Nasdaq Composite trading almost flat, while the Dow Jones Industrial Average (DJIA) was down 0.1%.

In bond markets, the note on the 2-year Treasury yield – a gauge of near-term, interest rate expectations – edged 8 basis points higher to sit around 3.99%. The note on the 10-year Treasury yield also rose 7 basis points to 3.51%.

#feedfeverchallenge #Binance #BTC #crypto2023

Coingecko data shows that Tether's USD stablecoin market capitalization has exceeded $140 billion, currently reported at $140,063,045,980, continuing to reach new highs; in addition, the trading volume of USDT in the past 24 hours has reached $113,035,541,694. #crypto2023