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Bitcoin, the reserves on Coinbase at the lowest and the bullish signal

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The reserves of Bitcoin Coinbase have reached the levels of December 2017. To make this revelation is Glassnode 

What the Bitcoin reserves on Coinbase indicate

The chart published by Glassnode clearly shows that Coinbase held around 700,000 BTC as of December 2017. 

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This sum has grown to exceed one million BTC in October 2020. With the start of Bullrun bitcoin from October 2020, this amount of criptovalute has drastically dropped while the price increased. 

It is no coincidence that this bitcoin outflow coincided with the price increase from 10,000 to 65,000 dollars. From May 2021 onwards, the outflow stopped, BTC on Coinbase started to rise again, while the price dropped. 

Now, Bitcoins are once again flowing out.

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Looking at the graph, putting it in relation to the price of Bitcoin, it seems that there is an inverse correlation : as the reserves on Coinbase increase, the price decreases, while it increases with the decrease in reserves.

That is why this is considered a bullish signal that could herald a rise in the price of Bitcoin.

BTC reserves on exchanges

After all, CryptoQuant notes , the analysis done for Coinbase can extend to other exchanges. In fact, the graph, just like the one linked only to Coinbase, shows the inverse correlation between price and reserves. Maximum peaks of reserves corresponding to price falls. On the contrary, with price spikes the reserves decrease drastically. 

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But this also confirms the deflationary nature of BTC , whose price can rise as the supply in circulation decreases. It should be remembered that more than 18 million BTC have currently been mined, and the Satoshi Nakamoto protocol has imposed a ceiling of 21 million. 

The relationship between reserves on exchanges and investors

However, not everyone agrees with the bullish thesis linked to Bitcoin reserves. On BitcoinTalk there are those who point out that the analyzes of Glassnode and Quant are not indicative of price forecasts , but of something else: those who buy BTC prefer to keep them in their wallet rather than on exchanges. 

The reason is simple: he has full control of his wallet, while custody on exchanges can always prove to be a risk, as evidenced by the cases of hacked Coinbase accounts. 

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The price of Bitcoin

Indeed, these days the price of Bitcoin has started to rise again and is now one step away from $ 50,000. 

BTC still remains far from the historical record of $ 65,000 recorded in April, but this analysis shows that there are ample possibilities that Bitcoin in the meantime will go back to exceeding $ 50,000, and then aim straight towards the previous historical record. 

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Bitcoin Drops as China Declares Crypto-Businesses Illegal

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  • China declared that cryptocurrency-related businesses are illegal
  • Bitcoin, Ether, and stablecoin Tether do not qualify as legal tender in China
  • BTC drops in price as the announcement went out

Once again, China reiterated its antagonistic stance on Bitcoin and the cryptocurrency industry as a whole.

In an announcement, the People’s Bank of China (PBOC) mentioned that BTC, ETH, and USDT are not legal tenders in China. They added that these cannot be used in the currency market.

Additionally, the central bank deemed all crypto-related businesses as illegal. This includes overseas exchanges serving residents within China and derivative transactions.

Following the news, Bitcoin’s price fell by almost $2,000 as the news circulated. This has been a common pattern whenever China FUD comes out.

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Earlier, China also reiterated its stance on crypto trading and mining while testing the Digital Yuan. According to the PBOC, it will continue releasing regulatory pressure over the crypto trading industry.

Despite the negative news, many analysts remain bullish on Bitcoin and the cryptocurrency industry as a whole. According to analyst Lark Davis, this is not new and will happen again in the future.

In a tweet, Davis mentioned that “The year is 2025, #bitcoin has just corrected from 400k to 250k on China banning BTC fears.”

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Can Bitcoin Surpass $6,000,000? Ethereum and Polkadot Creator Details Possible Future of Crypto

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Early Bitcoin developer and co-founder of Ethereum and Polkadot, Gavin Andresen, is outlining a future where BTC rises to a staggering $6,000,000 per coin.

Gavin Andresen, who took over as Bitcoin’s lead maintainer from founder Satoshi Nakamoto in 2011, just published a new blog post detailing how BTC’s theoretical evolution could look.

Andresen describes a “possible” scenario where Bitcoin hits a price tag of $6,000,000 by 2061, transaction fees 326x higher than they are now, and the blockchain is used chiefly by whales.

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“Imagine: it is the year 2061. The BTC price is six million US dollars – equal to about a million 2021 dollars because of inflation.

Miners are being rewarded 0.006103515625 BTC per block, plus transaction fees of about 5 BTC for 4,000 or so transactions ($7,500 per transaction).

But most BTC transactions don’t happen on the BTC network. Most BTC is locked up in multi-signature outputs secured using multiparty computation and mirrored on another chain as ‘wrapped’ tokens.”

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In his scifi scenario, Andresen says those who do remain on Bitcoin’s network will be incentivized to keep it alive.

“The transactions that do occur on the main BTC network are high-value, mostly between super-whale-size holders…

These whales maintain the BTC network forever. They are the miners and the transaction creators; they don’t care how high transaction fees go, because they receive as many fees as they pay.”

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However, Andresen says that by 2100, even those users would likely leave the blockchain.

“In the year 2100 the whales notice that the mining reward is basically zero… Eventually, there are zero new BTC being produced on the BTC network, and zero BTC circulating on the BTC network. There is nothing left to secure, and the chain stops.”

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Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone

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Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone

Crypto trader Michaël van de Poppe is looking at what’s ahead for Bitcoin (BTC) and the smart contract platform Cardano (ADA).

The analyst tells his 420,000 Twitter followers that the best entry point for Cardano may be gone after the asset bounced off a key support level at $1.86.

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“If you want to get into Cardano, this was the region where you would want to get into it, and the higher low that might be created.

So based on the daily timeframe, the best entry might be gone, but you’re still getting a better entry than the ones who have been buying around $2.80.”

Van de Poppe is now looking to see if ADA can turn resistance at the $2.37 level into support.

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If the markets correct further, he is keeping an eye on the $2.15 level as a potential buy zone.

“When you’re looking at the four-hour time frame, I think you’re getting the exact same view as what you have right now on Bitcoin and [Ethereum], actually. So you’re going to look for an entry point which is around the fact of $2.15, so anything in this region might be a good entry point if we get a corrective move.”

Looking at the Bitcoin pair, van de Poppe thinks that ADA will most likely consolidate briefly after retesting support at its previous all-time high.

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“We can see that we’ve had a beautiful retest of the previous high here too, and therefore some consolidation is most likely going to take place before we’re going to have new impulse waves.

So both the USDT and BTC pair are looking for continuation, and I think that’s just great, and I think that’s just what we want to see with the markets right now.”

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