Connect with us

Bitcoin

Cathie Wood Says Bitcoin Heading to $500,000, Crypto Market in Capitulation Phase

Published

on

Superstar hedge fund manager Cathie Wood says she still sees Bitcoin heading to $500,000 BTC despite its recent crash to $30,000.

In an interview with Bloomberg, the Ark Invest CEO say that while her team’s conviction that Bitcoin will hit $500,000 remains high, she concedes that some conditions have changed.

Wood says that the ongoing conversation about Bitcoin’s energy consumption, brought to the forefront in large part due to Tesla CEO Elon Musk’s recent comments, have brought a new dynamic to the crypto market.

Advertisement

“One thing that has changed here, however, is the environmental concerns around Bitcoin, in particular, have caused people like Elon Musk to pull away and say, ‘Whoa, whoa, whoa, whoa, let me make sure I understand this,’ and we believe that even this is going to change because first of all, right now, the percentage of Bitcoin mined with renewables and hydroelectric power is quite substantial…

We also believe – and we wrote a paper in conjunction with Square on this and we’re going to have a conference about it in July – we believe that Bitcoin mining integrated into the distributed grid, and by that I mean solar roofs, power walls in homes, utilities, merchant power producers, [are] starting to include Bitcoin mining in the ecosystem.”

Wood says that since renewables rely on intermittent sources like wind and sun, the excess power generated from these technologies could be offloaded into Bitcoin mining. According to her, this will make Bitcoin mining a greener industry, while also ramping up the renewable energy sector by adding more economic incentives.

Advertisement

As for Bitcoin’s ongoing bearish price action, Wood says she won’t pinpoint the exact bottom for BTC. However, she does think the world’s largest crypto asset is likely presenting an ideal buying opportunity.

“We were looking at all the indicators this morning, they’re all suggesting that we are in the capitulation phase, which is a really great time to buy. No matter what the asset is, capitulation is a buy. It’s on sale. Am I saying $35,000 is the low? Traders, and there are a lot of speculators in Bitcoin, if they are running for the hills just because Bitcoin has broken through a moving average that is important to them… [The correction] could continue, but all our indicators are saying this is capitulation right now.”

News Source

Advertisement

Bitcoin

Terra prepares to burn more than 9% of LUNA’s total supply

Published

on

Burning nearly 90 million LUNA tokens into the community pool can put an upward pressure on the native token’s price.

Do Kwon, co-founder and CEO of Terraform Labs, the South Korean company behind the blockchain project Terra (LUNA), recently announced on Twitter that on-chain voting for project 44’s proposal will begin on Wednesday. ).

The proposal to start burning 88,675,000 LUNA from the community pool to mint 3 – 4 billion UST will reduce the total supply of native token by more than 9%.

Advertisement

TVL on Earth reached ATH

After the integration of the IBC protocol last week and the launch of Wormhole V2 support for Terra, the total blocked value (TVL) in protocols on the network has reached a new high.

Last week, TVL on Earth reached $10.22 billion, with the Anchor, Lido, Mirror and Terraswap protocols accounting for more than 90% of the amount, according to data from DeFi Llama.

Currently, at US$9.97 billion, Terra is ranked as the fourth blockchain with the largest TVL, following Ethereum, Binance Smart Chain and Solana.

Advertisement

News Source

Continue Reading

Bitcoin

New Bitcoin ETF Offers Shorting Bitcoin Futures, Creators Warn of Multiple Risks

Published

on

Direxion has filed for a Bitcoin ETF that allows traders to short BTC futures contracts

According to an article by Bloomberg, a new Bitcoin ETF, if approved, will enable traders to short Bitcoin futures. The filing was submitted on Tuesday, Oct. 26.

Advertisement

Direxion wants to launch Bitcoin futures ETF for short-sellers

Bloomberg has written that, on Oct. 26, Direxion submitted documentation to launch the Direxion Bitcoin Strategy Bear ETF. Last week, two ETFs that track the performance of Bitcoin futures were launched by ProShares and Valkyrie.

Now, the BTC futures ETF industry in the U.S. may reach a new milestone—if the launch of the ETF for bears is approved by the U.S. Securities and Exchange Commission.

The debut of Bitcoin futures products last week prompted Bitcoin growth to almost $67,000 and a new all-time high.

Advertisement

However, today, the flagship cryptocurrency retreated below the $60,000 level as a mind-blowing half-a-million worth of liquidations were conducted across major exchanges: Binance, Bitfinex, OKEx, Huobi and so on.

Slightly over $500 million worth of those crypto liquidations were long positions.

BITO ETF gains $1 billion in just two days

ProShares Bitcoin ETF last week became the second-most-traded asset on the NYSE on its first day of trading. Buy orders to the tune of 10,100 were placed on BITO (the ticker the ETF goes by), and seven times more orders were placed to sell it.

Advertisement

After trading for two days, BITO reached $1 billion in net asset value. That is the equivalent of the net asset value of several Canadian Bitcoin ETFs that have been trading for a while already.

Direxion fund bears lots of risks

The new Bitcoin ETF filed for by Direxion bears numerous financial risks for short-sellers, the company warns. Trading this ETF may lead to shorters getting wiped out, Bloomberg writes, and Bitcoin’s massive price swings would be a problem here, too.

The SEC filing states that if you are not prepared to lose all your funds by investing in this ETF, you should not bet on it.

Advertisement

This week, some in the crypto community also expect another Bitcoin futures ETF to kick off—the one filed for by the VanEck asset manager.

News Source

Advertisement
Continue Reading

Bitcoin

Blockstream is sponsoring this tech for scaling Bitcoin [BTC]

Published

on

Major blockchain technology company, Blockstream has announced its sponsorship of work on Federated E-Cash. For the uninitiated, David Chaum was the man behind the concept of E-Cash that predates Bitcoin.

E-Cash Federation, on the other hand, is an entity that comprises of independent members assembled to develop a multi-sig wallet for the purpose of being a “blind, distributed custodian by acting as an e-cash mint.”

One of the main factors that have impeded Bitcoin’s adoption is scalability. On that note, Adam Back-led Blockstream has made significant strides. Even as scaling solutions like the Lightning network and federated sidechains have paved the way for large-scale adoption of the crypto-asset, they are yet to see substantial growth. Here come Federated blind mints, which the tech firm believes are a “natural complement to the existing scaling solutions.”

Advertisement

Blockstream’s tryst about Bitcoin scaling

Blockstream stated that Federated E-Cash can help scale Bitcoin. It cited an innovative exciting possibility of integrating LN into federated mints. This, in turn, would make them interoperable with each other and the broader space. It further stated,

“One could imagine the emergence of community-run federations, where users have a natural trust in the federation members, which isn’t the case with traditional custodians. For the larger number of Bitcoin users who rely on custodial wallets to store their bitcoin, switching to an E-Cash Federation, reduces the trust profile and increases the privacy guarantee for these users.”

Blockstream is looking at an experimental project of a Federated E-Cash scheme dubbed MiniMint that is currently under development.

Advertisement

$16M Funds for Bitcoin mining STO

The latest news comes a week after Blockstream announced raising $16 million funds in the sixth tranche of its BTC mining-focused security token [STO], called the ‘Blockstream Mining Note [BMN].’ This marked the rapidly rising interest from individual and institutional investors.

It was in March 2021 when Blockstream formally unveiled its BMN security token. Its offering essentially facilitated non-United States investors with an alternative to mine Bitcoin or invest in BTC mining stocks mining BTC with the help of BMN’s associated hash rate. Additionally, it was issued on Bitcoin’s Liquid sidechain with each BMN Series 1 granting market players up to 2k Tera hashes per second of BTC mined at the Canadian blockchain technology company’s enterprise-grade mining facilities.

Besides, Blockstream is also gearing up to list its BMN security token on Bitfinex Securities, which happens to be a relatively new STO platform by Bitfinex.

Advertisement

Blockstream’s tryst about Bitcoin scaling

Blockstream stated that Federated E-Cash can help scale Bitcoin. It cited an innovative exciting possibility of integrating LN into federated mints. This, in turn, would make them interoperable with each other and the broader space. It further stated,

“One could imagine the emergence of community-run federations, where users have a natural trust in the federation members, which isn’t the case with traditional custodians. For the larger number of Bitcoin users who rely on custodial wallets to store their bitcoin, switching to an E-Cash Federation, reduces the trust profile and increases the privacy guarantee for these users.”

Blockstream is looking at an experimental project of a Federated E-Cash scheme dubbed MiniMint that is currently under development.

Advertisement

News Source


Continue Reading