The volume of transactions using the soft fork protocol upgrade, SegWit [Segregated Witness] protocol, in the Bitcoin network, hit a whopping 89.70% in the first week of February this year according to the tracking site, p2sh.info.
During the beginning of 2018, SegWit transactions accounted for a mere 15%, doubling up post-February. The percentage shot up to over 50% in October of the same year. The usage, however, stalled for more than five months, after mostly because of the long bearish trend in the crypto space and remained below 45% of the total transaction.
A year later, as of 12th February 2019, out of a total of 258459 transactions on the Bitcoin network, around 45.91% were executed using SegWit protocol. The transaction fee paid accounted for 42.23% and the volume of transactions done using the soft fork protocol, slipped to 82.18% on the same day, cladding a block space of 44.74%.
The adoption of this controversial protocol has been slow since its upgrade is not mandatory. Owing significantly to the SegWit protocol, the transaction rates of Bitcoin have been optimistic even as the transaction fees have declined. Major crypto asset exchange platforms have also backed SegWit facilitating its adoption for network players.
The protocol increases the block size from 1 MB to over 3 MB simply by eliminating digital signatures from the input. These signatures take up a significant volume, 65% in a transaction. Detaching these frees up space for more transactions to be added in a block. Subsequently, more transactions are carried out by fewer blocks on the chain efficiently.
SegWit was initially developed to fix a security flaw concerning transaction malleability on the Bitcoin network. Since the transactional signatures are removed from the input, no fraudulent entity on the network would be able to alter the Transaction ID.
A Twitter user @PESligo commented:
“For me Segwit was not about block size, it was about more efficient code reducing TX fees and more important introducing the technology to allow L2 and many other technologies to Bitcoin. Until a few more Dev’s add their voice I see no need for all this noise.”
The nodes without SegWit implementation can seamlessly execute transactions with the upgraded nodes. Hence, the technology has not been widely embraced. Despite its activation in 2017, the protocol largely remains untouched by most of the network players, both big and small.
Besides, miners are at a loss. The elimination of digital signatures decreases the mining reward. Even when the pros seem to outweigh the cons, SegWit will continue to face serious opposition from major mining players.
Top BitMEX Trader Says He’s “Patiently Waiting” for Bitcoin Price to Drop to $6,000 Level
One of the most successful BitMEX traders believes that Bitcoin is bound to experience another major correction
Cryptocurrency trader “Angelo฿TC,” who rose to stardom after becoming the number one trader by notional profit on the BitMEX cryptocurrency exchange, has just taken crypto Twitter by the storm by saying that he’s “patiently waiting” for the Bitcoin (BTC) price to hit $6,000 so that he can add more sats to hit long-term holdings.
It’s very rare when the “semi-retired” whale takes to Twitter, but he always causes a huge splash when he does. At the end of August, when Bitcoin was still hovering above the $10,000 level, he tweeted his friend’s warning about “long capitulation” that would occur if Bitcoin were to break below $8,000.
As reported by U.Today, the BTC price did experience a painful correction on Sept. 25, just two days after the much-anticipated Bakkt launch. After rebounding from the $7,700 level and witnessing several fakeouts, the top coin is currently trading sideways in the $8,100-$8,200 region.
Back in March, when Bitcoin was inching closer to its historic 20 percent green candle that was recorded on Apr. 2, “Angelo฿TC” stated said he had never been more bullish on Bitcoin.
He predicted that the BTC price could surge to $30,000 by 2021 given that crypto is only “a drop in the bucket” compared to already established asset classes, such as gold.
“The end goal for Bitcoin as an investment is a binary outcome. It goes to 0 or you 10x your investment. There is no in-between.”
Still, $30,000 might be a very conservative figure. Commodity trading veteran Peter Brandt, whose tweets also attract a lot of attention on Twitter, recently predicted that the BTC price could shoot up to $50,000 after eventually bottoming out at the $5,500 level at the beginning of January.
Bitcoin Steady While Altcoins Take-Off: The Weekly Crypto Market Update
This week the market continued to stagnate, but we saw some promising signs in the altcoins field. While most of the attention is towards Bitcoin’s price and whether the support will hold, traders have also moved to altcoins where we saw a lot of interest during the week.
Bitcoin’s dominance declined since peaking at 72% and other cryptocurrencies finally managed to reclaim some grounds.
Despite the fact that during the past 3 months Bitcoin’s price has shuffled up, its current point is still respectable, compared to the beginning of the year when it was trading in the range of low $3,000s.
Meanwhile, it’s worth noting that big companies are abandoning Facebook’s Libra, including PayPal, Visa, and Mastercard. There are growing fears that the project won’t launch at all. However, Facebook has said that they will continue with their work so that Libra can see daylight and that there are no changes in their plans.
Overall, it was a positive week for altcoins which started to wake up from the crypto winter and it was a rather quiet one for Bitcoin.
Market Cap: $226B24-Hour Volume: $52.2MBTC Dominance: 66.4% BTC: $8,336 ETH: $184 XRP: $0.29BTC Shorts (BFX): 8.7K BTC
BTC Longs (BFX): 25.3K BTC
Alipay Fires Back at Binance’s CZ, Will Block Bitcoin Transactions. The official Twitter page of Alipay has responded to Binance’s Changpeng Zhao who had previously confirmed that users can use Alipay to buy Bitcoin on Binance. According to the payment processor, however, this is not the case and all transactions associated with cryptocurrencies are immediately halted.
Sweden’s Debt Collection Agency Is Auctioning Some Off. The Swedish Enforcement Authority auctioned off 4.59 BTC at a price of around $8,200 per coin. The entire thing was conducted online. The main reason for auctioning it off and not keeping it is the lack of existing infrastructure.
SEC Halts Telegram (TON) Sale: How Does It Differ From the EOS Case? The US SEC has halted the token sale of Telegram’s TON cryptocurrency. This happened soon after Block.one was fined for conducting its unregistered EOS initial coin offering. However, there are some key differences between the actions of the Commission.
It’s Been 10 Years Since the First Bitcoin Transaction: 5,050 BTC For $5. Ten years ago, the first Bitcoin market transaction took place. Back then, 5,050 bitcoins were sold for a grand total of $5.02. Now, these are worth upwards of $42 million. The network has also grown substantially ever since then.
US SEC Rejects Bitwise Bitcoin ETF Proposal. In a somewhat expected act, the US SEC has rejected the Bitcoin ETF proposal filed by Bitwise. The Commission said that it failed to meet the necessary requirements. More specifically, the main concerns were, once again, associated with market manipulation and illicit activities.
83% of Generation Zers Interested in Cryptocurrencies: KPMG Study. According to a study by big-four professional services company KPMG, approximately 83% of people from Generation Z are interested in cryptocurrencies. Moreover, it also appears that Millennials are intrigued as well as 71% of them said they are interested in the future of tokens.
Leading London Brokerage Provides Cryptocurrency Basket Including Bitcoin to Retail Investors. FCSM Group, a leading provider of online foreign exchange trading and other related services, has announced the introduction of a new cryptocurrency basket which includes Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and XRP. All of the cryptocurrencies are weighted equally.
Grayscale Wins Approval for First Public Digital Currency Index Fund. Grayscale Investments has received a legislative approval to list its publicly-traded digital currency index fund. It’s called Digital Large Cap Fund, carrying the ticker GDLCF. It will be available to all investors who have access to US securities.
Analyst Eyes 10% Bitcoin Price Expansion as Volatility Creeps Closer
If you’ve followed the price of Bitcoin (BTC) at all over the past few weeks, you know there is a large lack of volatility. In fact, for the past 20-odd days, the leading cryptocurrency has been stuck in an effectively 8% range — something that doesn’t happen all too often.
This likely leaves you wondering — what comes next for the cryptocurrency market? More sideways price action or a spike?
Apparently, it’s the latter.
Analyst CryptoHamster noted that a Bitcoin price breakout “is approaching”, looking to the fact that the one-day Bollinger Bands (a technical indicator meant to determine ranges) have begun to heavily tighten.
Their observation comes shortly after prominent analyst Josh Rager wrote the following on Twitter: “With three weeks of sideways and the bbands starting to pinch, Bitcoin price could see some volatility soon.”
Indeed, as the chart above shows, periods of tight Bollinger Band ranges have preceded large breakouts at least four times this year, implying that this time is going to be no different.
That’s not all. Volume levels on BitMEX, the leading Bitcoin futures platform, have begun to fall to multi-month lows. Low volume in markets after a period of consolidation is often indicative of impending volatility.
Chart courtesy of Skew.com
Bitcoin Price to Mount Higher
While the breakout could head in any direction, analysts are leaning bullish on Bitcoin at the moment.
Brave New Coin’s Josh Olszewicz recently noted that the Tenkan and Kijun lines of the Ichimoku Cloud suggest that BTC has a higher chance of reverting to a mean (higher than current price) than establishing a lower low under $7,700. Olszewicz added that Bitcoin is trying to form an inverse head and shoulders/diamond bottoming pattern on its 12-hour chart.With this in mind, Olszewicz said that Bitcoin could feasibly rally by 10% from current levels to hit $9,300 in the coming days and weeks.
This isn’t the only evidence that BTC’s price may be ready to head higher once again. Analyst CL argued that Bitcoin ball is in the court of the bulls, noting that BTC is trading above its monthly time-weighted average price while funding is widely negative (a bullish sign) and this market has established higher lows.