Connect with us

Bitcoin

Bitcoin Could Hit $150,000 If History Repeats

Published

on


Crypto investors are eagerly awaiting the next chapter in Bitcoin’s story, and this veteran trader just offered a potential plot twist.

In his analysis, Peter Brandt suggests Bitcoin could gallop towards a record-breaking peak of $130,000 to $150,000 by late summer 2025.

Brandt’s forecast hinges on a historical phenomenon known as the Bitcoin halving. Every four years, the number of Bitcoins awarded to miners gets cut in half, restricting supply and theoretically pushing prices upwards.

25% Chance Bitcoin Has Already Hit Its Peak

But Brandt examines deeper – he argues that past halving dates have coincided roughly with the midpoint of bull market cycles. With the most recent halving happening in April 2024, his analysis suggests a peak 16-18 months later, landing us squarely in that August-September 2025 window.

Peter Brandt's analysis. Source: TradingView

Brandt himself acknowledges the limitations of his prediction. He warns that “no method of analysis is fool-proof,” adding a cautious 25% chance that Bitcoin might have already hit its peak for this cycle. This raises a critical question – are we already past the stampede and staring down a crypto winter?

Underlying Factors For Brandt’s Analysis

There are additional factors that temper Brandt’s optimism. One is the diminishing returns of each bull cycle. While historical peaks show impressive growth, the gains seem to be moderating. The last peak fell short of its predecessor, and if this trend continues, there’s a chance we might not see a six-figure Bitcoin this time around.

Additionally, a price drop below $55,000 could signal a weakening bull and a potential correction, sending shivers down the spines of even the most dedicated hodlers (holders of cryptocurrency for the long term).

BTC market cap currently at $1.3 trillion. Chart: TradingView.com

Bitcoin Price Forecast

Meanwhile, the current Bitcoin price prediction indicates a strong bullish trend, projecting a substantial increase of 28% to a price of $88,600 by July 3, 2024. This optimism is supported by positive market sentiment, as reflected by technical indicators. A Bullish sentiment suggests that investors are confident in Bitcoin’s upward trajectory.

Additionally, the Fear & Greed Index, which currently stands at 73 (Greed), signals that market participants are becoming more eager to invest, potentially driving the price further up. This index level indicates a high level of market confidence and could be a precursor to sustained price increases if the sentiment persists.

Over the last 30 days, Bitcoin’s performance has shown mixed results with a 47% success rate in recording green days, indicating almost half the days were profitable. The price volatility at 4.45% suggests that while there is significant movement, it remains within a moderate range, characteristic of an active but not overly volatile market.

The combination of these factors—positive sentiment, a high Greed index, and relatively controlled volatility—paints a picture of a market poised for continued growth, assuming no significant external shocks or negative news impacts the cryptocurrency landscape.

Featured image from Pngtree, chart from TradingView



Source link

Bitcoin

Bitcoin’s Put-to-Call Ratio Tops 1.0: Bearish Signs Ahead?

Published

on


Crypto markets will witness $3.42 billion in Bitcoin and Ethereum options contracts expire today. The massive expiration could cause a short-term price impact, particularly as markets wait expectantly for Bitcoin to tag $100,000.

With Bitcoin options valued at $2.86 billion and Ethereum at $561.66 million, traders are bracing for potential volatility.

Unlike Ethereum, Traders Bet On Bitcoin Price Pullback

There has been a significant increase in Bitcoin (BTC) and Ethereum (ETH) contracts due for expiry today compared to last week. According to Deribit data, 28,905 Bitcoin options contracts will expire on Friday with a put-to-call ratio of 1.09 and a maximum pain point of $86,000.

Expiring Bitcoin Options
Expiring Bitcoin Options. Source: Deribit

On the other hand, 164,687 Ethereum contracts are due for expiry today, with a put-to-call ratio of 0.66 and a maximum pain point of $3,050.

Expiring Ethereum Options
Expiring Ethereum Options. Source: Deribit

Bitcoin’s Put-to-call ratio stands above 1, indicating a generally bearish sentiment despite BTC’s whales and long-term holders fueling its recent growth. In comparison, Ethereum counterparts have a put-to-call ratio of 0.66, reflecting a generally bullish market outlook.

The put-to-call ratio gauges market sentiment. Put options represent bets on price declines, whereas call options point to bets on price increases.

When this ratio is above 1, it suggests a lack of optimism in the market, with more traders betting on price decreases. On the other hand, a put-to-call ratio below 1 suggests optimism in the market, and more traders are betting on price increases.

Bitcoin’s Put-to-Call Ratio, Implications for BTC

As options near expiration, traders are betting on BTC prices dropping and ETH prices rising. According to the Max Pain Theory in options trading, BTC and ETH could each pull toward their maximum pain points (strike prices) of $86,000 and $3,050, respectively. Here, the largest number of contracts — both calls and puts — would expire worthless.

Notably, price pressure for both assets will ease after Deribit settles contracts at 08:00 UTC today. At the time of writing, however, BTC was trading for $98,876, whereas ETH was exchanging hands for $3,389. Meanwhile, in line with put-to-call ratios, analysts at Greeks.live anticipate an extended move north for ETH and say BTC is at the cusp of a correction.

“With about 8% of positions expiring this week, the big rally in Ethereum has led to a significant increase in ETH major term options IV [implied volatility], while BTC major term options IV has remained relatively stable. The market sentiment remains extremely optimistic at this point,” Greeks.live analysts said.

The analysts also note that while Bitcoin risks a correction, the generalized market rally keeps this potential pullback at bay. They ascribe the positive sentiment in the market to significant capital inflows into ETFs (exchange-traded funds), specifically BlackRock’s IBIT options, which started to trade only recently alongside a strongly driven spot bull market.

Nevertheless, with today’s high-volume expiration, traders should anticipate fluctuations in Bitcoin and Ethereum prices that could shape their short-term trends.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



Source link

Continue Reading

Bitcoin

Marathon Digital Raises $1B to Expand Bitcoin Holdings

Published

on


Marathon Digital Holdings, one of the largest Bitcoin miners, has completed a record $1 billion offering of 0% convertible senior notes due 2030. The net proceeds from the sale were approximately $980 million.

According to the firm’s statement, the net proceeds will be primarily used to buy Bitcoin

Marathon Digital Holds over $2.5 Billion Worth of Bitcoin

After its last purchase in September, Marathon Digital’s Bitcoin holdings stand at 25,945 BTC. This is currently worth approximately $2.52 billion, as Bitcoin reached an all-time high of $98,000 earlier today. 

However, the company’s decision to expand its holdings potentially points to a larger bullish cycle for the token in the long term. According to its press release, Marathon Digital plans to use $199 million of the net proceeds to repurchase existing convertible notes due 2026. 

The remainder will be used to acquire additional Bitcoin and for general corporate purposes. Marathon Digital is currently the second largest Bitcoin holder among publicly traded companies. 

marathon digital bitcoin holdings
Bitcoin Holdings by Public Companies. Source: CoinGecko

The notes offer flexibility, with options for conversion into cash, shares of Marathon’s common stock, or a combination of both. Redemption terms include the ability for the company to redeem the notes at full principal value plus accrued interest. 

“$1 Billion. 0% interest. MARA has completed the largest convertible notes offering ever amongst BTC miners. The mission, as always: Provide value. Acquire #bitcoin,” the company wrote on X (formerly Twitter). 

Increasing Bitcoin Acquisition Among Public Firms 

Marathon Digital is following an ongoing trend of public companies increasing their Bitcoin holdings in this bull market.  Earlier this week, MicroStrategy announced plans to issue $1.75 billion in convertible notes maturing in 2029. The proceeds will be used to fund additional Bitcoin purchases. 

On the same day, the company secured $4.6 billion worth of Bitcoin, building on a $2 billion acquisition from the prior week. 

Bitcoin’s all-time high and these aggressive purchases propelled MicroStrategy’s stock price by nearly 120% in a single month. The largest Bitcoin holder also entered the list of top 100 public companies in the US. 

Meanwhile, Marathon Digital has faced challenges despite its growing Bitcoin reserves. The company reported a $125 million net loss in Q3. This was driven by a $92 million year-over-year increase in operating costs. 

However, its operational capacity has strengthened. Earlier this month, its energized hash rate surged by 93%, signaling increased mining efficiency. Marathon Digital also signed an $80 million agreement with the Keynan government to expand its Bitcoin mining capabilities. 

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



Source link

Continue Reading

Bitcoin

cbBTC Surges Past $1 Billion as Coinbase Ends WBTC Support

Published

on


Coinbase, the largest US-based crypto exchange, has announced it will suspend trading for Wrapped Bitcoin (WBTC) on December 19, 2024, at approximately 12 p.m. ET.

The decision, revealed in a post on X (formerly Twitter), cites a routine review of its listed assets to ensure compliance with listing standards. 

Coinbase Sidesteps WBTC Amid cbBTC Boom

The suspension will apply to both Coinbase Exchange and Coinbase Prime. Although trading will cease, WBTC holders will retain full access to their funds and the ability to withdraw them at any time. In preparation for the transition, Coinbase has moved WBTC trading to a limit-only mode, where users can place and cancel limit orders while matches may still occur.

“Coinbase will suspend trading for WBTC (WBTC) on December 19, 2024, at or around 12 pm ET. Your WBTC funds will remain accessible to you, and you will continue to have the ability to withdraw your funds at any time. We have moved our WBTC order books to limit-only mode. Limit orders can be placed and canceled, and matches may occur,” Coinbase detailed.

Coinbase’s move to suspend WBTC comes amid the rapid success of its wrapped Bitcoin token, cbBTC. Recently, cbBTC surpassed a $1 billion market capitalization, reflecting growing adoption and trust within the crypto community. This milestone has further cemented cbBTC’s position as a strong competitor to WBTC in the decentralized finance (DeFi) space.

oinbase’s cbBTC Bitcoin Wrapper Supply and Market Cap Chart
Coinbase’s cbBTC Bitcoin Wrapper Supply and Market Cap Chart. Source: Dune

As of this writing, data on Dune shows that cbBTC market capitalization has increased to $1.44 billion. CBTC’s native availability on networks like Solana, Ethereum, and Base has significantly expanded its accessibility, with Arbitrum being the latest addition.

“cbBTC is live on Arbitrum. cbBTC is an ERC-20 token that is backed 1:1 by Bitcoin (BTC) held by Coinbase. It is natively available on Arbitrum and securely accessible to more users across the Ethereum ecosystem,” Coinbase shared on Tuesday.

Additionally, prominent DeFi protocol Aave is targeting cbBTC for its Version 3 (V3) platform, enhancing its utility within the ecosystem. This growing momentum may have played a key role in Coinbase’s decision to phase out WBTC trading.

WBTC Core Team Urge Coinbase to Reconsider

The team behind Wrapped Bitcoin expressed regret and surprise at Coinbase’s decision. In a statement on X, WBTC’s core team emphasized its commitment to compliance, transparency, and decentralization. 

“We regret and are surprised by Coinbase’s decision to delist WBTC…We urge Coinbase to reconsider this decision and continue supporting WBTC trading,” the team said.

The statement outlined WBTC’s longstanding reputation for novel mechanisms, regulatory compliance, and decentralized governance. Highlighting its seamless integration with DeFi protocols, WBTC described itself as an essential liquidity solution for Bitcoin users. Urging Coinbase to reconsider, WBTC reaffirmed its readiness to address any concerns or provide additional information to support its case.

Meanwhile, Coinbase’s announcement has sparked mixed reactions across the crypto community. Some users criticized the exchange, suggesting the decision reflects an inability to handle competition.

“Coinbase can’t handle fair competition?? WBTC superior to cbBTC” said Gally Sama in a post.

Nevertheless, others support the move, citing concerns over WBTC’s custody model, with one user referencing BitGo’s recent adoption of a multi-jurisdictional custody system.

“You put custody in the hands of a fraud. What did you think was gonna happen?” the user expressed.

This critique aligns with growing fears about Justin Sun’s involvement in WBTC’s custody processes, as BeInCrypto reported recently. Some users have acted preemptively to avoid potential risks, with one commenter sharing their reservations.  

“When Sun got on the multisig for WBTC, I sent all my WBTC on OP to Coinbase and exchanged for true BTC that I withdrew to my hardware wallet… You gave me confirmation just now that I made the right move,” they wrote.

The decision to suspend WBTC trading could mark a pivotal moment in the competition between wrapped Bitcoin solutions. While cbBTC’s integration across multiple blockchain networks has gained momentum, skepticism surrounding WBTC’s custody model and leadership has intensified.

Justin Sun has voiced criticism of Coinbase’s cbBTC strategy, labeling it a setback for Bitcoin’s broader adoption. As the debate continues, the industry watches closely to see whether Coinbase’s cbBTC will solidify its dominance or if WBTC can regain its position as a leading wrapped Bitcoin solution. Regardless, the shifting dynamics reflect the importance of transparency, governance, and community trust in shaping the future of DeFi.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



Source link

Continue Reading

Trending

Copyright © 2024 coin2049.io