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Don’t Buy Bitcoin, It’s NOT Going To Crash

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What’s a good reason to buy Bitcoin? Well, the fact that it’s not going to crash is a good one. Looking at the charts can tell you a lot about what you need to know about a coin.

Bitcoin is over a decade old by now. This means that there is now a bit of history to go on. One way is the movements across the charts. Rise and fall times and bull and bear markets are good indicators.

 

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Given this, there is an infamous video in the Bitcoin world. The YouTube video had surfaced six years ago in 2015. Jokingly telling people why they should not buy Bitcoin. Reason being that Bitcoin had always risen exponentially and crashed subsequently. Even though the poster knows the coin will still rise before the crash. The patterns presented in this video seem consistent. Following a timeline of rising and falls.

Obviously, this video has aged beautifully. It is still a joke that is passed around the crypto space.

Bitcoin Bull And Bear Patterns

Bitcoin has always seemed more like a bubble in its movement patterns. But unlike most bubbles, it keeps coming back.

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Even bull market has always followed a halving event. And halvings happen every four years.

A halving is when the reward that is gotten from mining Bitcoin blocks is cut in half. When Bitcoin first launched, you got 50 Bitcoins for each block. After the first halving in 2012, the reward was cut down to 25. Then 12.5 after the next halving in 2016. The most recent halving happened in July 2020. Right in the heart of when the bull market began.

Bitcoin chart from TradingView.com

Bitcoin maintains price above $30K | Source: BTCUSD on TradingView.com

The current reward for mining a block is now 6.25 Bitcoins. With each halving, the price of Bitcoin surges. This is due in part to there being less Bitcoin going into circulation. The scarcity model of Bitcoin is what makes it such a high-value asset. And it is why it is inflation resistant. You simply cannot make more.

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The halvings mean miners are getting fewer rewards. This means that they are having to list their bitcoins at higher prices to break even. And by the next halving, miners will get 3.125. A much lower amount of rewards in just 16 years.

The bitcoins gotten would have to be listed for about $100K or so to break even and make profits. This will be a big driver in the next bull market. As it has always been in the markets.

Low Prices Does Not Equate To A Crash

Bitcoin price movements have always been erratic. Bull markets always end in a bear.

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But just because the price is low at some point does not mean the asset has crashed. All assets go through periods of a downtrend.

The widely volatile nature of Bitcoin is something that scared a lot of investors away. But it is also something that draws most investors in. An asset that has the potential to move by a wide margin is an asset that people want to invest in.

Every end of a bull market has people calling it a market crash. But the market always picks back up. We have had a good number of bull markets now. And there is no reason to believe that it is going to stop now.

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The current movement patterns suggest that bitcoin might have broken its normal bull and bear cycles. It’s going on a year and bitcoin is still above the previous all-time high. Prices are currently still holding steady at $30K.

If Bitcoin continues its pattern, then it will never fall below previous all-time highs. This means that Bitcoin would currently not fall below $19K. Although a more conservative number would be $15K. Since the 2017-2018 bull market ran a bit higher than anticipated.

Regardless, this would mean a lot of the crash predictions would fail.

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

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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%.

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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.

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

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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.

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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.

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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.

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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.

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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.

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Blockstream is sponsoring this tech for scaling Bitcoin [BTC]

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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.”

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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.

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$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.

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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.

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