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Bitcoin’s Ascent to $72,000: Validating On-Chain Insights

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In a previous article, BeInCrypto predicted the Bitcoin price surge to $72,000, supported by our comprehensive analysis of on-chain metrics.

BeInCrypto prediction is validated by the recent price movement, emphasizing the importance of continuous monitoring and analysis of these indicators.

Delving Deeper Into Bitcoin on-Chain Data

By analyzing key indicators such as Hash Ribbons and the 90-day Moving Average of Coin Days Destroyed (CDD), we can gain a deeper understanding of market dynamics.

This continuous monitoring approach is crucial for making informed decisions and highlights the importance of keeping up with expert analyses like those from BeInCrypto.

What Are Bitcoin Hash Ribbons?

Hash Ribbons are a powerful metric that identifies when BTC miners are capitulating or giving up and when they are starting to recover. Miners are essential for securing the Bitcoin network by solving complex transaction validation problems.

When mining becomes unprofitable, miners may shut down their machines, causing the network’s hash rate to drop.

The chart highlights periods where the 30-day moving average exceeds the 60-day moving average, indicating miner capitulation. These periods often precede significant price recoveries.

In the early part of 2023, the chart shows a capitulation phase, followed by a recovery where the 30-day average crosses above the 60-day average. This crossover aligns with the recent price surge to $73,000, validating the effectiveness of the Hash Ribbons indicator in predicting market bottoms.

Bitcoin Hash Ribbons. Source: 0nchained
Bitcoin Hash Ribbons. Source: 0nchained

What Is Coin Days Destroyed (CDD)?

Coin Days Destroyed (CDD) measures the activity of long-term BTC holders.

Each Bitcoin accumulates “coin days,” for every day it remains untouched. When it is finally moved, these coin days are “destroyed.” This metric helps identify significant shifts in market sentiment among long-term holders.

CDD is calculated by multiplying the amount of Bitcoin moved by the number of days it was held. The 90-day SMA smooths out daily fluctuations, providing a clearer view of long-term trends.

The 90-day SMA of CDD has shown a steady increase in 2023, indicating growing activity among long-term holders.

However, recent decreases in CDD indicate reduced selling pressure from long-term holders, suggesting confidence in continued price appreciation. This aligns with the recent bullish momentum in Bitcoin’s price, further supporting our analysis.

Bitcoin CDD 90SMA. Source: 0nchained

What Is the STH RP Daily Change to Price Ratio?

The Short-Term Holders Realized Price to Price Ratio (STH RP/PR) is an innovative indicator identifying potential buy signals during bull markets. This metric compares the realized price daily change of short-term holders to the current market price, highlighting periods of negative sentiment as potential buying opportunities.

Negative STH RP/PR values suggest that short-term holders capitulate, often marking good entry points for new investments.

We can observe that the Short-Term Holders’ Realized Price-to-Price Ratio (STH RP/PR) increased during Bitcoin’s appreciation to $72,000. This suggests that the price could continue to rise, as short-term holders, on average, are not facing unrealized losses relative to the current BTC price.

STH Realized Price Daily Change to Price Ratio. Source: (0nchained)
STH Realized Price Daily Change to Price Ratio. Source: 0nchained

Strategic Recommendations and Future Price Projections

On-chain data and Bitcoin fundamentals indicate a looming bull run. A sustained break above the $73,000 resistance level could easily propel the price to $82,000.

Obviously, a sustained drop below $68,000 could reverse market trends, but the likelihood of this happening is diminishing. As highlighted in previous BeInCrypto analyses, the majority of on-chain data has shown positive signals for weeks.

BeInCrypto will continuously monitor these metrics and provide updates to keep you informed about key market movements and opportunities. Stay tuned for detailed future outlooks and strategic insights.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Bitcoin Could Serve as Inflation Hedge or Tech Stock, Say Experts

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Bitcoin may be a useful hedge against inflation in the near future as market uncertainty is growing. In the long run, it may also be useful to envision Bitcoin differently, treating it as a barometer for the tech industry.

Standard Chartered’s Head of Digital Assets Research and WeFi’s Head of Growth both shared exclusive comments with BeInCrypto regarding this topic.

Bitcoin: Inflation Hedge or Magnificent 7 Candidate?

Since the early days of the crypto space, investors have been using it as a hedge against inflation. However, it’s only recently that institutional investors are beginning to treat it the same way. According to Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, the trend of Bitcoin as an inflation hedge is increasing.

Still, this view may be too narrow in a few ways. Since the Bitcoin ETFs were first approved, BTC has been increasingly well-integrated with traditional finance. Kendrick noted this, saying that it is highly correlated with the NASDAQ in the short term. He claimed that Bitcoin might represent more than an inflation hedge, instead serving as an ersatz tech stock:

“BTC may be better viewed as a tech stock than as a hedge against TradFi issues. If we create a hypothetical index where we add BTC to the ‘Magnificent 7’ tech stocks, and remove Tesla, We find that our index, ‘Mag 7B’, has both higher returns and lower volatility than Mag 7,” Kendrick said in an exclusive interview with BeInCrypto.

This comparison is particularly apt for a few reasons. Tesla’s stock price is heavily entangled with Bitcoin, but it’s also been dropping due to political controversies. If Bitcoin were to replace Tesla’s position in the Magnificent 7, it may be a welcome addition. Of course, there is currently no mechanism to cleanly treat Bitcoin as a similar type of product. That could change.

However, Bitcoin’s role as an inflation hedge might be more immediately relevant. As Trump’s Liberation Day approaches, the crypto markets are becoming increasingly nervous about new US tariffs. As Agne Linge, Head of Growth at WeFi, said in an exclusive interview, these fears are impacting all risk-on assets, Bitcoin included.

“Crypto markets are closely tracking investor sentiment ahead of Trump’s…tariff announcement, with growing concerns over the potential economic impact. Bitcoin’s increasing correlation with traditional markets has amplified its exposure to broader macroeconomic trends, making it more sensitive to the risk-off sentiment that has affected equity markets,” Linge claimed.

She went on to state that US economic uncertainty was at record levels, surpassing both the 2008 financial crisis and the pandemic in April 2020. In these circumstances, recent inflation indicators are showing expected rates above expectations.

In such an environment, the crypto market is sure to take a hit, but traditional finance and the dollar is also in great jeopardy. All that is to say, Bitcoin is likely to be a solid inflation hedge in the near future. Even if it falls dramatically, it has worldwide appeal and the ability to rebound.

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.



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$500 Trillion Bitcoin? Saylor’s Bold Prediction Shakes the Market!

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Michael Saylor, one of the most outspoken supporters of Bitcoin, is back and bolder than ever. In a recent statement, the former MicroStrategy CEO predicted that the alpha coin will potentially hit a $500 trillion market cap. Saylor’s bold prediction for the world’s top digital asset comes during the intensified push for a Strategic Bitcoin Reserve (SBR). 

In his latest pro-crypto statement, Saylor argued that the digital asset will “demonetize gold”, then it will demonetize real estate, which he calculated as 10x more than gold. To summarize his argument, Saylor further states that Bitcoin will demonetize “all long-term store of value”.

Push For SBR Gains Ground

Saylor’s latest statement comes as Congress intensifies its efforts to build the country’s BTC holdings. United States President Donald Trump formalized the plans to build crypto holdings through an executive order to establish a strategic crypto reserve that will initially include $17 billion worth of BTC that the country currently controls.

According to the president, additional acquisitions of cryptocurrency are allowed, provided these are done through “budget-neutral” approaches. Senator Cynthia Lummis initially proposed in the Senate, through the Bitcoin Act, the plan to create a Bitcoin reserve. Under the proposal, the administration can purchase 1 million Bitcoin to complement the reserve.

Saylor Explains Crypto’s Role During Blockchain Summit

Saylor’s latest prediction on Bitcoin was made during his appearance at the DC Blockchain Summit. He was joined on stage by Jason Les, the CEO of Rito Platforms, and Lummis, the principal author of the Bitcoin Act.

BTC is now trading at $83,238. Chart: TradingView

During the program, Saylor was asked about America’s need for Bitcoin. Saylor answered with conviction, saying the rising importance of BTC is inevitable and will happen with the US’ participation. During his talk, he shared that Bitcoin, created by the enigmatic Satoshi Nakamoto, is unstoppable. 

Image: Gemini Imagen

Saylor added that the premier digital asset is the next stage in money’s evolution, and it’s currently absorbing value from traditional assets like currency reserves and real estate.

Saylor Predicts Top Coin Will Reach $500 Trillion In Market Cap

During his talk, Saylor predicted that BTC will eventually grow from $2 billion to $20 billion, which can hit $200 billion and beyond. Finally, he thinks the asset can achieve a $500 trillion market capitalization, reflecting more than 29,000% increase from its current market capitalization of $1.67 trillion.

Saylor’s recent bold prediction aligns with his firm conviction and support for the asset. He argues that Bitcoin’s unique features, its decentralized nature and fixed supply, make it a perfect hedge against economic uncertainties like inflation.

Featured image from Gemini Imagen, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.





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Big Bitcoin Buy Coming? Saylor Drops a Hint as Strategy Shifts

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A top executive of Strategy, formerly MicroStrategy, posted a cryptic post on X, fueling speculation that the company might be positioning itself to make another Bitcoin acquisition soon.

Strategy Executive Chairman Michael Saylor suggested in an X post that the company would purchase additional Bitcoins to boost its current BTC holding of $42 billion.

Saylor To Buy More Bitcoin 

In a typical Saylor fashion, the Strategy top honcho disclosed the company’s BTC investment portfolio tracker, an indicator that the company is planning an upcoming Bitcoin acquisition.

“Needs even more Orange,” Saylor said in the post, referring to the orange circles in the graph (below), which represents the company’s Bitcoin purchases since September 2020.

Once again, Saylor’s post intrigued the crypto community because many believe the graph conveys a message that Strategy will buy more BTC soon.

Strategy Stockpile: Over $40B BTC

According to Saylor, Strategy’s Bitcoin holding now stands at more than $42 billion. Despite the company’s already huge investment in BTC, it seems the company will continue to increase its holdings, believing in the value of crypto.

Strategy has made great strides in building its BTC reserve from its initial Bitcoin purchase of 21,454 coins worth $250 million in August 2020.

On March 17, the company announced its latest acquisition of 130 Bitcoins for about $10.7 million in cash, with an average price of around $82,981 per coin.

BTC is now trading at $84,287. Chart: TradingView

Meanwhile, Onchain Lens reported on Sunday that Strategy moved a considerable number of its coins to new addresses.

“Strategy (formerly MicroStrategy) transferred 7,383.25 $BTC worth $612.92M to three new addresses on March 30,” Onchain Lens said in a post.

Analysts believe the company is influencing the crypto market to strengthen its position, as its chairman has consistently urged others never to sell their Bitcoin.

Fueling BTC Adoption

Many market observers argued that Saylor’s BTC investment strategy might have driven crypto adoption. Ironically, Saylor was pessimistic about Bitcoin’s future in 2013, predicting that the flagship crypto would fail.

However, in 2020, Saylor became one of Bitcoin’s staunch advocates and has now been preaching the merits of the firstborn crypto, urging companies to acquire Bitcoin.

For example, Visa planned to let its customers spend digital assets directly at 70 million merchants. At the same time, financial institutions such as JPMorgan and Morgan Stanley have begun offering crypto investments to wealthy clients and institutional investors.

Featured image from Times Now, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.





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