Bitcoin has seen its own share of ups and downs since the beginning of this year. In fact, it massively rallied over the course of the year’s first few months, before becoming a victim of May’s flash crash. It later consolidated for a couple of months before gradually, inching higher again.
Of late, however, the asset’s price has remained indecisive. Right after hitting a high of $69k on 10 November, the cryptocurrency started shedding value. It went on to fall to a level as low as $62.2k on 12 November, before recovering somewhat.
At press time, the king coin was trading around $65k, following a 1.7% hike on the daily timeframe.
Well, as soon as the price starts hiking, selling pressure sneaks into the market. Weak hands begin to realize gains, and that, to a fair extent, drags down the price further.
As far as the current Bitcoin market is concerned, there is slight selling pressure. However, one integral group from the community – miners – haven’t stepped onto the bandwagon yet.
Spurning away the sell pressure
Yes, the state of most miner-related metrics seemed to suggest so.
Consider the state of the Puell Multiple, for instance. This metric managed to climb as high as 1.9 towards the end of October, implying that a few miners sold their coins when Bitcoin’s price broke even and hit its previous ATH.
Since then, however, this metric has embarked on a downtrend journey, projecting a value of 1.5 at the time of writing, wiping off the selling pressure narrative in the process.
The Miners’ Position Index reading confirmed the same. Simply put, this is the ratio of Bitcoin leaving all miners’ wallets to its one-year moving average. Values above 2 usually indicate that miners are mass-selling.
As per CryptoQuant’s data, the MPI was in positive territory towards the end of October. It plunged soon after, however, and started re-advocating the accumulation narrative.
Cumulative miner outflows have also been oscillating around their lows. Miners clinging onto their HODLings is a clear indication of their confidence in the long-term prospects of Bitcoin. To some extent, it can also be contended that Bitcoin’s rally phase has just begun gaining steam and the coin would likely go on to increase its valuation in the coming weeks.
The ASOL has additionally been revolving in the lower range, implying that newer participants are the ones who are actively trading and dominating the market. On the contrary, investors and miners are clasping their HODLings.
Here’s the catch
Well, the miner revenue factor, to some extent has the potential of playing spoilsport and turning the tables. According to Glassnode’s data, this metric has recorded a dip, when compared to the end of October’s numbers.
Miners, to a fair extent, depend on their revenue to cover up their costs and the current state of this metric opens the door for miners in need of liquidity to sell their HODLings.
At this point, it should be noted that Ethereum miners have been earning more than Bitcoin miners of late. If BTC’s mining revenue continues to trend lower, these miners might consider shifting to Ethereum’s boat.
Ergo, only if miners resist the urge to sell their HODLings and shift their boats, Bitcoin’s price would be able to continue rallying without much hindrance.
Is Apple Planning For Bitcoin Payments! Will BTC Network Volume Eclipse Visa And Mastercard Payments?
In an acute inflationary atmosphere, numerous cryptocurrency projects seem to be more appealing to investors. Possible threats of US inflation and the prevailing pandemic situation prompt investors to espouse Bitcoin payments. On the other hand, the network has been thriving hard to outstrip the network volumes of Visa and Mastercard.
The global crypto market cap raised its bar to the new highs on, as investors gush into Bitcoin investments as Federal Reserve chairman Jerome Powell made remarks on tapering of monthly bond purchases to occur a couple of weeks before than expected. This move would further result in a hike in the interest rates, resulting in hyperinflation.
Apple to Adopt Bitcoin Payments?
The reputed tech firms might lookout for investment opportunities that would help manage their purchasing power. Notably, top companies with significant cash reserves such as Apple ($191 billion), Google ($168 billion), Microsoft ($137 billion), Amazon ($86 billion), Facebook ($86 billion), and Oracle ($39 billion) might shift their gears to Crypto investments. Moreover, crypto market insight platform Bitcoin Archive is been optimistic about Apple’s adoption of Bitcoin payments.
However, crypto analyst Venturefounds recently made remarks on loss of purchasing power by $102 billion in retaliation of record break inflation rate in the US. Hence, possibilities are quite high that top-tier tech firms would soon roll out a red carpet to the Bitcoin payment adoption.
On the other hand, the Report of Blockdata confirms Bitcoin’s progressive move against PayPal, Visa, and Mastercard payments. Bitcoin network acclaimed an evaluated average of $489 billion per quarter in 2021. Besides Visa, Mastercard, and PayPal payments have recorded network volume worth $3.2 trillion, $1.8 trillion, and $302 billion respectively. However, the platform has been optimistic about the massive growth of Bitcoin’s payment network.
Collectively, investors all across the globe appear to be FOMO-ing Bitcoin. Hence, the flagship asset and other revolutionary cryptocurrency projects would experience sustainable growth in the near future. Especially, the platform has dragged more than 60 to 70% of investments during uncertainties such as pandemic and global financial crises.
Bitcoin tests traders’ nerves as analyst reissues $400K BTC price forecast
Bitcoin (BTC) was on repeat on Dec. 2 as markets watched another attack on $60,000 end in defeat.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
“Nothing has changed”
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD back at $57,000 Thursday, having come full circle in 24 hours.
The pair had briefly hit $59,000 into the Wall Street open the day prior, this failing to hold as another round of macro triggers skewed sentiment to the downside once more.
Bitcoin thus fell in line with stocks reacting, it seemed, to continued concern over the new coronavirus omicron variant. The S&P 500 ended the day down 1.2%.
With a sense of frustration pervading crypto markets, analysts took the opportunity to reassert a longer-range perspective.
“It’s very simple. Below $60K I’ve remained cautious/bearish as I’d like to see that area flip,” Cointelegraph contributor Michaël van de Poppe summarized.
“Levels to watch for buys; $53K-54K zone and $47-50K zones for Bitcoin. When to buy altcoins? December. Nothing has changed past weeks.”
Those buy target lows were accompanied by renewed predictions for this cycle’s bullish peak, which, as in April this year, place BTC/USD at up to $400,000.
Fellow analyst TechDev, eyeing Fibonacci levels on the two-week chart, also described Thursday as “another day to zoom out.”
Open interest stays near all-time highs
On exchanges, open interest, meanwhile, remained a source of concern due to its sheer volume relative to price action.
Data from on-chain analytics firm Glassnode showed open interest on Bitcoin futures recently matching its second-highest levels in history, nearing its April record.
“At some point, this open interest is going to get flushed out one direction or the other,” analyst William Clemente commented.
Bitcoin futures open interest 7-day moving average chart. Source: William Clemente/Twitter
With cyclical price action characterizing the week, the mood thus stayed favoring an ultimate exit up or down, with derivatives structures being “reset” as a result.
Funding rates were mostly neutral across exchanges Thursday.
Post-Twitter Dorsey Moves Deeper into Bitcoin ‘Spiral’ as Square Goes ‘Block’
The Twitter founder Jack Dorsey’s payments firm Square has taken on an extra dimension – likely a crypto-themed one – as the company has changed its name to Block.
In a press release, the firm announced that “as a result of the name change,” its Square Crypto unit, a “separate initiative of the company dedicated to advancing bitcoin (BTC),” has changed its name to Spiral.
Its Twitter handle has also changed to @spiralbtc – a clear nod in the direction of bitcoin.
Dorsey stepped down as Twitter boss late last month.
The witty PR wordsmiths at Spiral rationalized the name change on Twitter, writing:
“Square Crypto is now Spiral. Since our formation, the spiral emoji has been a part of our brand lore, and given the opportunity to rebrand to CoinSomething or BitWhatever, we went a different way. Spiral looks and sounds cool. What other reason do we need?”
As for what the newly rebranded firm will do, the company explained in a blog post that it plans “to double the number of full-time [developers] working on projects under the Spiral umbrella in 2022,” adding: “We also plan to write more grants than ever in the coming year.”
“Square Crypto was never the best name for our team.”
The firm lamented the fact that its former name “drew a direct line between the corporate benefactor we are supposed to be independent of [namely Square] and us.”
Also on Twitter, the still-extant Square account noted:
“Obviously Square Crypto no longer makes sense, so the team is changing its name […]. This rebrand reflects their focus on bitcoin as it continues to grow like a spiral from a single point, encompassing more and more space until it touches everything.”
The bitcoiner and investor Stephen Cole noted the significance of the BTC in the @spiralbtc handle.
Dorsey has frequently made his views on bitcoin known online, often seeming to side with so-called bitcoin maxis and downplaying the potential of rival blockchain protocols – a fact that has often drawn ire from Ethereum (ETH)- and altcoin-centered communities.
In August, the Twitter founder appeared to “accidentally” share an ETH-bashing post from a bitcoiner, leading ETH advocates to accuse Dorsey of baiting them. He answered by claiming that he was “not trolling” or “fighting” rival “projects” but instead “agreeing” with the concept that ETH “wasn’t a good idea.”
Dorsey’s Block business empire also comprises TBD (TBD54566975), a planned decentralized bitcoin exchange project.
As for the main Block/Square company and brand, the firm explained that Block had not entirely squashed Square, noting:
“The Square name has become synonymous with the company’s Seller business, which provides an integrated ecosystem of commerce solutions, business software, and banking services for sellers, and this move allows the Seller business to own the Square brand it was built for.”
However, away from the world of BTC-themed symbolism, some expressed tongue-in-cheek reservations about the name change. Another sharp-witted soul, this time a Redditor on the r/bitcoin sub, pointed out that while spiral might sound cool for bitcoiners, in the world beyond crypto, it can often have negative connotations. The poster remarked:
“Spiral is a terrible name for a financial company.”
Meanwhile, Square/Block’s Cash App mobile payments app has started supporting Taproot.
Taproot is considered to be Bitcoin’s largest upgrade in more than four years. Finally activated on November 14, it came with Schnorr, a soft fork that improves privacy, scalability, and speed, and encodes multiple keys into one.
All @CashApp customers can now send #bitcoin to Taproot-enabled wallets. 🥕
Fun Easter egg at 0:13… #709632
Tick tock, next block. Block by block.pic.twitter.com/98OiPFaBq2— Michael ₿. Rihani 🇺🇸⚡️🇱🇧 (@MichaelRihani) December 2, 2021
If you're not in crypto, you're not in tech.
This was once true of the Internet — if you weren't working with it in some way, you were on your way to irrelevance.
Now, it's happened a second time. https://t.co/GyHL7thl9e— Mark Jeffrey ⚡️🚀 (@markjeffrey) December 2, 2021