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Declining Bitcoin Prices Triggers Renewed Interest As Number Of Small-Time Investors Grow

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Bitcoin price recently suffered another crash that sent the price of the asset dropping towards the low $40,000s again. This one, however, has been significant in its cash and recovery patterns, and subsequent on-chain data suggests that this most recent crash may have worked in the favor of the digital asset. This is because interest returned in the pioneer cryptocurrency after its price fell low enough to a point that investors deemed it a buy opportunity.

The crash was also significant in how much it took off the market. Although lasting only a couple of hours in the early morning of Saturday, the crash had cleared about $150 billion off of the total market cap. Dragging the market cap to month-lows. Bitcoin’s value suffered tremendously for this crash, as did the altcoins, but an interesting aftereffect has been the increased number of small-time investors trooping back to stock up on the digital currency.

Addresses With 0.1 BTC Shoots Up

In an interesting turn of events, the market crash which would have normally led to a sell-off had triggered renewed interest from mostly small-time holders. These holders are investors with at least 0.1 bitcoins in their balances or approximately $4,300 worth of BTC. Data show that as the price had crashed on Saturday, the number of small-time holders buying more BTC shot up, leading to an increase in the number of addresses holding at least 0.1 BTC.

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Chart showing progression of addresses holding at least 0.1 bitcoins
Wallets holding at least 0.1 BTC shoots up | Source: Glassnode

This renewed interest and buying on the part of these investors pushed the number of addresses holding at least 0.1 BTC in their balances to hit a new four-month high. Given that bitcoin price had suffered in the recent months, this number had dropped to new lows. But now, in an ironic twist, another crash was all it took to get the number back up. The current count for the number of holders with at least 0.1 BTC in their balance has now gone up to approximately 3.25 million holders.

Whales Also Loading Up On Bitcoin

The returns on bitcoin have unfailingly been impressive year over year. This is why it is usually the first point of contact for new investors coming into the crypto market. But that does not mean the “old hands” have left the market either. Bitcoin is the most accumulated cryptocurrency in the market and at the top of the accumulation pyramid are the whales.

The whales who hold at least 100-10,000 BTC on their balances have been accumulating coins with each market crash. The present crash presented another opportunity for maximalists to increase their bags. A drop this close to $40,000 put immense buy pressure on the market. Thus presenting investors an opportunity to accumulate more coins before the market recovered again.

Bitcoin price chart from TradingView.com
BTC price trading close to $44K | Source: BTCUSD on TradingView.com

Bitcoin price has now recovered from its low of $40,800 in the crash that occurred on Saturday. With increasing momentum brought on by low volatility experienced on weekend, the digital asset has climbed back up above $43,000 again. But recent crashes have ended with lower highs and the recovery trends of this crash point at it following in the footsteps of its predecessors.

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The Cycle Started, Mike Novogratz Says – Bitcoin Boom Is Here; Jack Dorsey Boosts BTC’s Price

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Mike Novogratz is one of the essential names in the crypto space which is celebrating the booming price of Bitcoin.

Check out what he had to share with his followers and Twitter fans:

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Someone hopped in the comments section and said this; ‘Anyone who has not yet embarked on the crypto band wagon is a simple minded idiot who knows nothing about markets, freedom or wealth creation.’

Jack Dorsey boosts the price of BTC

It’s been also revealed that Jack Dorse said that Square could build a BTC mining system – this obviously triggered a more massive price race for the king coin.

At the moment of writing this article, BTC is trading in the green and the king coin is priced at $61,118.15.

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CNBC online publication just noted that Square CEO Jack Dorsey said late on Friday the company is considering jumping into BTC mining business.

Dorsey tweeted that the company is considering a “bitcoin mining system based on custom silicon and open source for individuals and businesses worldwide.”

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Dorsey’s goal would be to make crypto mining more accessible. We suggest that you check out the complete thread that Dorsey shared on his social media account in order to learn all the available details.

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Pantera Capital’s Dan Morehead: Bitcoin (BTC) Already Up 100% in This Bull Run

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How big is median increase in Bitcoin (BTC) price in bullish market phases?

As Bitcoin (BTC) reclaims $62,000 level, Dan Morehead, CEO of the first-ever cryptocurrency-focused VC firm in the U.S., shares the comprehensive statistics of the last six bull runs for Bitcoin.

Bitcoin (BTC) price doubled in 87 days: Bull Run 2021

According to the latest tweet by Mr. Morehead, the Bitcoin (BTC) price witnessed a 2x increase in the first 87 days of the ongoing bullish wave.

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Unlike many other experts, Mr. Morehead identifies two separate “bull run” phases in 2020-2021. During the previous one, between March 16, 2020, and April 14, 2021, it took 394 days for Bitcoin (BTC) to increase its price 13x and print a new all-time high.

According to his infographic, the most impressive rally ended with a 106x increase of the orange coin’s price in 2015-2017.

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That said, the median Bitcoin (BTC) price bull run lasted for 300 days and increased the “king coin’s price” by 15x.

Will Bitcoin ETF mark the top of the BTC cycle?

At the same time, according to “The Next Price Era” letter issued by Pantera Capital on Oct. 6, 2021, the hotly-anticipated approval of Bitcoin (BTC) ETFs is listed amidst the possible “sell the news” events.

Mr. Morehead noticed that the launch of CME Bitcoin Futures and Coinbase direct listing triggered painful bear markets:

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Will someone please remind the day before the bitcoin ETF officially launches?  I might want to take some chips off the table.

As covered by U.Today previously, similar statements were made by CNBC’s Jim Cramer.

The seasoned analyst also revealed his plans to “cash out” 50% of his Ethereum (ETH) bags.

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Bitcoin Will Significantly Underperform Altcoin Market As New Crypto Price Era Unfolds: Pantera Capital’s Dan Morehead

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The founder and chief executive officer of Pantera Capital says that investors can expect altcoins to outperform Bitcoin (BTC) in the long term.

In a recent edition of Pantera’s Blockchain Letter, the head of the digital asset management firm outlines Dan Morehead’s key quotes from the SALT 2021 conference in New York. During the conference, Morehead said that even though his company has greatly profited from BTC, he emphasized that most future crypto gains will come from altcoin investments.ADVERTISEMENT

“My perspective is: Bitcoin has been amazing – Pantera Bitcoin Fund is up 67,000% since inception. However, I think the majority of future gains will be from tokens outside of Bitcoin. I know that sounds heretical to some people here, but that’s my professional opinion.”

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Morehead compares the rise of Bitcoin and its competitors to that of the tech industry boom during the late 1990s.

“It’s like saying in 1998 that [the] majority of future tech gains would come from outside Microsoft.

At the time, Microsoft was worth $218 billion, Apple $3.5 billion, Amazon was $2.2 billion. Google and Facebook were zero – they didn’t even exist. In the years since Microsoft did great – it went up 10x. However, 80% of the tech gains in these five stocks came from outside Microsoft.

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That’s the view I have here – I think BTC is going to go up a ton – like 10x. It’s a great investment…[but] I think the broader portfolio is going to outperform.”

At time of writing, BTC has a market cap of $1.156 trillion while all altcoins combined have a market cap of $1.327 trillion, according to CoinMarketCap.

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