ack Dorsey, the founder of Square, has announced reviewing plans to build a decentralized Bitcoin [BTC] mining system based on custom-designed silicon intending to make it more accessible to both retailers and large institutions on a global scale. In his latest tweet, the CEO of the social media giant, Twitter pointed out the current BTC mining scenario in terms of distribution, energy efficiency, concentration, etc, and stressed the urgent need to transform the prevalent system. Revealing more about the master plan he said,
“Square is considering building a Bitcoin mining system based on custom silicon and open source for individuals and businesses worldwide. If we do this, we’d follow our hardware wallet model: build in the open in collaboration with the community. First some thoughts and questions.”
Accordingly, Dorsey said the proposed project, if successful, would align with the ideals of Square’s own hardware wallet model i.e, to build an open-source and in collaboration with the community as a whole. In his tweet, the CEO also revealed that the technical specifics would be handled by its team of engineers led by Hardware Exec Jesse Dorogusker and concluded the post by hoping for suggestions or queries from the community with regards to its proposed plan.
The latest details caused the price of Bitcoin [BTC] to surge briefly and climb nearly $62,700. This was enough to send the market investors into a frenzy, renewing hopes to cross the all-time high of $64,863. At the time of writing, BTC was trading at $61,521 after an increase of 3.57% in the past 24-hours.
Jack Dorsey’s tryst with Bitcoin [BTC]
The Twitter head is known for his staunch support towards the crypto industry and has always been a big Bitcoin bull. In September this year, the micro-blogging website officially integrated Bitcoin tipping services through Lightning Network [LN] focused third-party payment app, Strike. MicroStrategy’s CEO Michael Saylor, on Twitter, shared a video of Strike Founder Jack Mallers showing how the firm’s API integration had opened up opportunities for a faster and unified global remittance payment system.
In addition to that, Square recently doubled up its BTC investment from $220 million to $470 million adding 8,027 Bitcoins in its reserve ranking third behind blockchain intelligence company Microstrategy and Elon Musk-led Tesla.
Bitcoin Doesn’t Work as a Form of Payment, According to Celsius CEO Alex Mashinsky – Here’s Why
The CEO of crypto lending platform Celsius does not think that Bitcoin (BTC) has the correct properties to become a suitable payment option.
In a new interview on Coin Stories, Alex Mashinsky offers a contrasting picture between the qualities of the US dollar and the leading cryptocurrency.
“I’d much rather be in a scenario where the dollar remains as the reserve currency but Bitcoin continues to do very well…
The dollar is a phenomenal form of payment. It’s a horrible store of value and Bitcoin is a phenomenal store value, but it’s a pretty bad form of payment.”
Mashinsky highlights that it is not a great idea to use Bitcoin to pay for goods and services as he says that people who have done so in the past often regret making the transaction.
“If you fell for Elon Musk’s deal where he gave you a Tesla for two or three Bitcoins, obviously you hate driving that Tesla because you would in a second go back and take those three Bitcoins and return the Tesla, which lost value during the same period of time.
Anything you bought with Bitcoin in the last 10 years, you rather have the Bitcoin back and would have paid in US dollars. That’s really the crux of the matter that you cannot use it as a form of payment or cannot use it in a way that makes you happy about the transaction.”
Is Bitcoin Officially in Bear Territory? Crypto Analyst Michaël van de Poppe Analyzes State of BTC After Deep Pullback
A widely followed crypto strategist and trader is looking at the state of Bitcoin to determine whether the largest crypto asset by market cap has crossed bear territory.
Hours before the deep crypto pullback, analyst Michaël van de Poppe told his 518,000 Twitter followers that he was expecting Bitcoin to correct hard and leave an impression that the bull market is over.
“The scenario is very simple.
- People expected a peak bull run in December. Not happening.
- Let the market correct due to that.
- People will expect a bear market at the low (approx. $47,000-$50,000).
- Moon the markets and leave everyone behind.
With Bitcoin trading below $50,000, Van de Poppe says BTC is still in a bull market and highlights that he believes the correction is now over.
“Overall, this should be the low of a standard 30-40% correction in the markets.
However, corrections are super wicky the past few years in Bitcoin as there’s such a massive amount of leverage in the markets.
Through that, we overshoot.
But all good, should be done now.”
Looking at the charts, Van de Poppe says there’s a decent chance that Bitcoin will launch a V-shaped reversal or a sharp rally where BTC revisits its all-time high around $69,000 by early next year.
“Rounding off the day with this chart on Bitcoin.
I think that the chances for a V-shape recovery are there.
We’ll see coming week how it unfolds, but these bounces are significant and good.”
Bitcoin is exchanging hands at $48,994, down over 7% in the last 24 hours.
This Bitcoin fractal predicted the fall, but here’s the next price target
Bitcoin, along with the larger crypto-market, dropped the ball after the most recent price fall had echoes of 19 May’s crash. With BTC shedding 25% of its value in a matter of a few hours, the market seemed to reset to its September-end levels. While it was trading around the $49k-mark at press time, for a brief moment, it did tread close to $42,000 too.
The aforementioned price fall led to a mass wipeout, giving way to over $2.5 billion liquidations across the market. Ergo, the question – Does the macro bullish outlook for Bitcoin remain intact?
The dip was overdue
On the daily chart, Bitcoin’s price had been in a falling wedge structure since the 16 November crash. Looking at the larger structure for the past month, it can be argued that the latest crash to the $42k level was overdue.
During the previous major corrections too, the price had broken below this level in May and then again, in late June. However, it has always managed to hold it.
In fact, this level has acted as a support for the +100% rally from July to November. Thus, as long as the weekly closes above or at least around the 1W MA50, BTCUSD has a legitimate probability of forming support there and starting a new rally.
Interestingly, an RSI fractal seemed also to be in play here. As noted in the chart above, a similar RSI structure was seen from mid-2019 to early 2020, as seen from early 2021 to the time of writing. The key catalyst in both cases was the sell-off due to COVID fears.
However, this crash was more of a combination of multiple factors like the panic among retail investors, tech market crash, over-leveraged crypto-markets, high Open Interest, positive funding rate, and so on.
So, what’s next?
For now, while the price has rebounded, another fall to the lower $40k-level cannot be discarded.
However, BTC’s two main utility indicators continue to rise – A good signal. BTC’s token circulation and its daily active addresses, at press time, sat at a 6-month high. In fact, they seemed likely to continue their uptrend too.
Furthermore, the estimated leverage ratio dropped by 22% in just one day. This was last seen in September when the price dropped by 24% and touched $40k.
At the time of writing, the biggest takeaway as BTC’s price rebounded from its lower levels seemed to be that the market dynamics have been looking very different than previous cycles.
Even though volatility was still high, the market seemed to move from FOMO-induced price tops and sell-offs to more mature and sustainable growth while flushing leverage. Nonetheless, with the price structure still tilting towards bearish, despite the bounce, it would be best to be cautious.