Bitcoin
Malaysian Electricity Company Hit Hard By Illegal Bitcoin Mining
Bitcoin mining, a complex activity that requires adding data to the blockchain, has been the subject of complaints. While it’s arguably a lucrative trade for some, it impacts the local electricity grid.
Some estimates say you need up to 155,000 kilowatt hours (kWh) of electricity just to mine one coin, and each transaction requires around 851 kWh, equivalent to one month’s electricity supply for an average household in the US.
Bitcoin mining’s threat is global, with many national and local economies feeling the pinch. For example, Tenaga Nasional Berhad, Malaysia’s national electricity provider, has reported losses of more than 440 million Ringgit (about $101 million) due to mining-related electricity theft. This figure is on top of the reported confiscation of electrical items related to Bitcoin mining valued at $500,000.
Local Reports Say Theft Has Affected TNB For Years
A report from The Star says that Tenaga Nasional Berhad has been bleeding from Bitcoin mining-related thefts since 2020. According to Comm Datuk Seri Mohd Shuhaily Mohd Zain, the company suffered from increasing losses year-on-year.
The director added that in 2020 alone, the company lost RM5.9 million, which increased to RM140.4 million the following year. Then, in 2022, the losses hit RM124.9 million; in 2023, they grew to RM67.1. This year, the losses are at RM103 million and counting.
As of today, the market cap of cryptocurrencies stood at $2.4 trillion. Chart: TradingView.com
Bitcoin Mining Continues To Impact Local Supply
TNB and the local authorities claim that the losses go back to 2018 and have connection to illicit mining operations. TNB said in another separate paper that their losses between 2018 and 2023 totaled more than $755 million.
Although crypto mining only accounts for a small portion of Malaysia’s total consumption, it has a substantial financial impact. Aside from TNB’s losses, over $500,000 of electrical equipment linked to illicit mining operations have been confiscated.
The government’s seizure of these electrical items is part of Malaysia’s campaign on tax evasion involving different parties involved with cryptocurrencies. Malaysia’s Criminal Investigation Unit plans to investigate the thefts and factors contributing to the increasing loss trend.
How Does Bitcoin Mining Affect Electric Companies?
Bitcoin mining is a complex activity that involves adding new data to the blockchain but requires extensive power. In exchange for Bitcoin, an individual or a firm must solve a complex mathematical problem in order to “mine” or acquire bitcoin.
However, experts say that this process requires a large amount of computational power and energy. In many countries like Malaysia, the requirement of a substantial electrical supply often tempts people to skirt payments and commit crimes.
Featured image created using Dall.E, chart from TradingView
Bitcoin
AI Company Invests $10 Million In BTC Treasury
As MicroStrategy continues to reap success with its aggressive Bitcoin play, it’s only a matter of time before other companies tread in the same path.
Genius Group, an AI-focused and Bitcoin education firm, is the latest one to the bandwagon. According to a press release, Genius Group said that it had bought 110 Bitcoins for a sum of $10 million at an average price of $90,932.
This purchase sets up the company’s first “Bitcoin treasury,” an essential step towards its plans to implement a “Bitcoin-first policy,” which it initially outlined in 2023. Under its Bitcoin-first policy implemented last year, the company commits to investing at least 90% of its current and future reserves in digital assets, initially targeting $120 million.
The 110 BTC is the company’s first tranche, and it expects to make more purchases to achieve its strategic plan.
JUST IN: AI firm Genius Group kicks off its #Bitcoin treasury with a $10M purchase of 110 BTC! 🚀 pic.twitter.com/Ts5KQqi4I6
— Simply Bitcoin (@SimplyBitcoinTV) November 18, 2024
A Bitcoin-First Policy For Genius Group
Genius Group announced on November 12th to go full-steam ahead on Bitcoin. According to the company’s corporate strategy presented at the end of the 2023 quarter, it would commit 90% of its reserve to BTC, a long-term plan of holding Bitcoins worth as much as $120 million.
According to CEO Roger James Hamilton, his company is in a position to integrate traditional learning with modern financial literacy backed by the blockchain. He added that when Genius Group adopted MicroStrategy’s Michael Saylor’s Bitcoin plan, there were no rules or plans to follow.
BTC market cap currently at $1.8 trillion. Chart: TradingView.com
Genius Group Continues Its Blockchain, Bitcoin Education Series
The Genius Group is primarily an AI-focused and Bitcoin-first education group. The group aims to promote Bitcoin as a payment system through its educational platform as part of its operations.
The company recently launched its Web3 Wealth Renaissance, an initiative that seeks to encourage the use of AI and spread awareness of the benefits and functions of cryptocurrencies and the blockchain.
Genius Group’s education campaign also includes a Bitcoin and Blockchain podcast series. On Tuesday at 9:00 a.m. Eastern Time, the podcast will cover a forecast on Bitcoin and fiat money’s future. The podcast will also explore the MicroStrategy story and how Saylor pioneered the Bitcoin Treasury concept.
This morning:
– MicroStrategy buys another 51,780 BTC for $4.6B
– MARA announces $700 million convert to acquire more BTC
– Semler Scientific raises $21mm ATM and acquires 215 BTC
– Metaplanet issues ¥1.75B debt offering to buy more BTCThe corporate Bitcoin race is heating up.
— Sam Callahan (@samcallah) November 18, 2024
More Corporations Adopt A Bitcoin-Focused Investing Policy
With MicroStrategy as a clear leader, many companies are also starting to add Bitcoin to their holdings. On November 18th, MicroStrategy announced its purchase of 51,780 Bitcoin for $4.6 billion.
Other companies followed suit, with MARA allocating $700 million to buy more Bitcoin, Semler Scientific raising $21 billion to buy 215 BTC, and Metaplanet issuing a $1.75 billion yen debt to finance its Bitcoin dream.
Other industries are joining the trend, including tech and crypto companies. For example, Cosmos Health Inc. has integrated a crypto strategy. The government’s interest in Bitcoin and crypto is also increasing. Sławomir Mentzen, a Polish presidential candidate, has announced his plans to create a BTC reserve.
Featured image from DALL-E, chart from TradingView
Bitcoin
Bitcoin Correction Looms As Analyst Predicts Fall To $85,600
The price of Bitcoin (BTC) rose by 7.99% in the past week to reach a new all-time high of $99,655 on November 22. Thereafter, the maiden cryptocurrency has experienced a slight retracement in the past 48 hours falling to around $98,200. However, speculations of a major price correction continue to emerge considering BTC’s impressive price rally over the past seven weeks.
Why Bitcoin Must Move Above $100,535 – Analyst
In an X post on November 23, Ali Martinez shared an intriguing prediction on Bitcoin’s potential price movement. According to the popular crypto analyst, the TD Sequential, used to spot potential price reversals, has indicated a sell signal on Bitcoin’s 12-hour chart, suggesting an incoming price dip.
Martinez’s latest forecast aligns with popular expectations of a Bitcoin price correction amidst the asset’s 61.76% price gain from $60,500 in early October. This notion stems from various trading metrics and indicators. For example, Bitcoin’s Relative Strength Index has perpetually remained in the overbought zone suggesting potential for a sudden price pullback.
Furthermore, fellow analyst Maartunn reports that BTC’s Fear & Greed Index has a 4.5-year high of 94. Generally, any Fear & Greed Index above 75 represents extreme greed among investors, which is overwhelmingly bullish but also presents room for overvaluation that precedes significant price corrections.
Of more concern, Maartun also notes that Bitcoin traders’ unrealized profit levels have reached 57% and are gradually approaching the local peak of 69% in March 2024 adding to the increased potential of price correction.
According to Ali Martinez, if BTC undergoes the much-anticipated correction as indicated by the TD Sequential and other factors, the crypto market leader could fall to $91,583. Amidst strong selling pressure, Bitcoin could further slide to $85,610 indicating a potential 12.64% decline from its present market price.
However, Martinez also postulates that BTC could nullify the sell signal by the TD Sequential and avoid a major correction by closing above $100,535 on the 12-hour daily chart. Considering Bitcoin’s recent price movement and events such as excitement around Donald Trump’s electoral victory alongside increased ETF inflows, an uptrend continuation is definitely a strong possibility.
BTC Price Overview
According to data from CoinMarketCap, BTC trades at $98,213 reflecting a 0.44% decline in the past day. In tandem, the asset’s daily trading volume is valued at $44.02 billion having declined by 43.14%. However, Bitcoin remains largely profitable for long-term holders with gains of 45.06% in the past 30 days. With a market cap of $1.95 trillion, the premier cryptocurrency remains the world’s largest digital asset.
Featured image from Fortune, chart from Tradingview
Bitcoin
Bitcoin Price Is Decoupling From Gold Again — What’s Happening?
Bitcoin has often been referred to as the “digital gold,” as it has proven to be a unique asset class and, more importantly, a reliable store of value over the years. While gold surely outpaces BTC in age, both assets are commonly used by investors as a hedge against economic instability and inflation.
Interestingly, there is almost always a positive correlation between Bitcoin and gold, leading to limited diversification opportunities for investors. However, the latest data shows that the premier cryptocurrency and the precious metal have been decoupling from each other in recent weeks.
BTC Is Losing Correlation With Gold — What Next?
In a recent Quicktake post on the CryptoQuant platform, an analyst with the pseudonym Darkforst talked about the existing relationship between the price of Bitcoin and gold. According to the pundit, there is an ongoing decoupling between the crypto market leader and the gold market.
For context, correlation is a metric that measures the degree of association (how closely related) of the direction of prices of two specific assets. When the value of correlation is positive, it implies that the two assets are moving in the same direction. It is worth mentioning that the closer the metric’s value is to 1, the more correlated the assets are.
On the flip side, a correlation value less than 0 indicates that the two assets are negatively correlated, meaning that they are moving in opposite directions. Similarly, the closer the correlation value is to -1, the less closely related the assets.
While the gold market has been performing well in recent months, the metal’s price has slumped over the past few weeks. On the other hand, the Bitcoin price has enjoyed a strong bullish momentum in November, forging successive all-time highs in recent weeks.
Source: CryptoQuant
As a result, the correlation between the price of Bitcoin and gold has slipped beneath the zero mark, moving into the negative territory, as shown in the chart above. According to Darkfost, the decoupling seems to be in BTC’s favor, as it could lead to a “liquidity shift” and cause more capital to flow into the flagship cryptocurrency.
Bitcoin Price At A Glance
As of this writing, the price of BTC is hovering around the $98,000 mark, reflecting an almost 1% decline in the past 24 hours. Nevertheless, the premier cryptocurrency’s performance on the weekly timeframe is still quite remarkable. According to data from CoinGecko, the market leader is up by more than 7% in the last seven days.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
-
Altcoin9 hours ago
BTC Continues To Soar, Ripple’s XRP Bullish
-
Altcoin23 hours ago
Crypto Trader Records $2.5M Profit With This Token, Here’s All
-
Market22 hours ago
Why the Altcoin Season May Be Underway
-
Market18 hours ago
Kraken Eyes Token Expansion as Trump Promises Crypto Support
-
Altcoin18 hours ago
XRP Price To $28: Wave Analysis Reveals When It Will Reach Double-Digits
-
Market17 hours ago
XRP To Hit $40 In 3 Months But On This Condition – Analyst
-
Ethereum22 hours ago
Deribit Moves $783M in Ethereum To Cold Storage: A Bullish Signal for ETH?
-
Market21 hours ago
Solana Sees Surge in Meme Coin Activity and Rising Fees