Connect with us

Bitcoin

Lost Or Held Bitcoin Are Now Outpacing New Circulating Coins

Published

on



Bitcoin is once again trading above $11,500 after a retest of $10,000 was quickly bought up. A variety of factors are beginning to have an influence over supply and demand, and appear to be tipping the scales in favor of price appreciation.

One specific metric could be particularly crucial to the increase in value recently, and it could be causing demand to far outweigh any BTC supply available to buyers.

Bitcoin Held Or Lost Coin Metrics Outpace New Circulating Coins

Satoshi Nakamoto designed Bitcoin to be the first peer-to-peer electronic form of cash, but in ten years its become so much more. He also sought to give Bitcoin a sort of collectability, and instill within it the attributes of a rare commodity.

RELATED READING | THIS UNUSUAL BITCOIN ADOPTION METRIC SETS NEW ATH

That design element helps to give Bitcoin a scarcity and rarity that makes it similar to gold, yet due to its all-digital code, more can never be produced once the entire 21 million BTC supply is mined.

Until that happens, new coins are released at a rate or 6.25 BTC roughly every ten minutes per block generation. The current post-halving BTC inflation rate is around 900 BTC per day.

BTC Lost or Hodled Coins | Source: glassnode.com

That means aside from the coins being sold on exchanges – a number that decreases by the day – only 900 BTC are being unlocked each day by miners that are at risk of being sold into the market.

Less Bitcoin sold at market rates, keeps prices growing due to supply and demand. And according to new glassnode data, the amount of BTC “lost” or “hodled” is meanwhile increasing by the day. The current data points to a BTC being held or lost at a rate of 1375 per day, resulting in outpacing the creation of new circulating coins by 385 BTC per day.

Does This Growing Trend Prove Halving-Based Price Appreciation Theories?

The data could very well indicate the start of a bull run brewing due to the offset of supply and demand alone. Not taking into account economic factors, the increase in money supply due to stimulus, and more, could be further fuel for the next rise.

RELATED READING | DATA SHOWS STAGGERING AMOUNT OF BITCOIN SUPPLY HASN’T MOVED IN SEVERAL YEARS

Compared to where Bitcoin was during the last market cycle, the crypto asset is less than a month away from retesting its former all-time high. Or it should be if following the same halving-based trajectory.

bitcoin btcusd supply halving

Halving-Based Market Cycle Theory Prove It Or Lose It Point | Source: BTCUSD on TradingView.com

The chart above acts as a roadmap for what could be the next peak and when Bitcoin gets there, according to the past market cycle alone. The next peak should arrive somewhere around October of next year, suggesting a bull run is starting now. After the next peak of roughly $300,000 per BTC, the crypto asset could fall another 80% back to roughly $50,000.

But again, there’s only a small sample size to go off of, so the leading cryptocurrency by market cap is at a ‘prove it or lose it’ moment when it comes to the stock-to-flow model and other halving-based four-year cycle theories.

Featured image from Deposit Photos, Charts from TradingView & glassnode



Source link

Bitcoin

Here’s Why Analysts Think Bitcoin Will Rally Towards $17,000 by EOY

Published

on



  • Bitcoin’s price has been caught within a consolidation phase around $13,000 ever since it was rejected at its recent highs of $13,200
  • This is around the price at which it has been trading throughout the past few days, with buyers and sellers being unable to take control of its near-term trend
  • Yesterday, bulls did attempt to set fresh yearly highs and kickoff a leg higher, but it resulted in a rejection
  • This shows that buyers don’t currently have enough support for another push higher
  • One analyst explained that a push towards $17,000 could be just months away, but it may first see some consolidation

Bitcoin and the aggregated crypto market are consolidating following Bitcoin’s recent rejection at its yearly highs.

The cryptocurrency has been unable to spark any sustained moves past $13,200, signaling that the selling pressure here is significant and may continue slowing its ascent.

Despite its short-term trend being somewhat unclear, there’s no questioning that Bitcoin’s macro trend is shaping up to be extremely bullish.

As such, one analyst is noting that a move to $17,000 could be just a couple of months away.

Bitcoin Consolidates Around $13,000 as Buyers and Sellers Reach an Impasse

At the time of writing, Bitcoin is trading down just over 1% at its current price of $13,000. This is around where it has been trading throughout the past few days.

Yesterday, bulls attempted to break this trend and propel it higher, but a move past $13,300 resulted in an influx of selling pressure that sent it reeling lower.

Its inability to see any sustained rally does indicate that the selling pressure it is facing above its current price level is quite significant.

Where it trends next should depend largely on whether or not it can push past the resistance laced throughout the lower-$13,000 region.

BTC Poised to See a Sharp Climb to $17,000, Claims Analyst

Despite this micro weakness, one analyst is noting that Bitcoin is positioned to see some major upside in the months ahead.

He is specifically pointing to $17,000 as a target that he expects to be reached by the end of the year.

“I think this is a likely scenario, not expecting a clear breaker above $14,000 yet. A retest of previous resistance zone to build momentum towards the next rally towards $17,000 beginning next year.”

Image Courtesy of Crypto Michael. Source: BTCUSD on TradingView.

The coming few days should provide insights into whether or not the resistance Bitcoin is currently facing will be enough to spark any selloff.

Featured image from Unsplash.
Charts from TradingView.





Source link

Continue Reading

Bitcoin

China’s central bank lays regulatory foundation for CBDC

Published

on



China’s central bank, the People’s Bank of China (PBOC), published a draft law this Friday that aims to provide regulatory framework and legitimacy for a forthcoming central bank digital currency (CBDC), the digital yuan. 

The draft law states that the yuan is the official currency of the People’s Republic of China whether in physical or digital form.

The draft law also appears to take aim at third-party efforts at yuan-backed digital currencies, stating that individuals and institutions are prohibited from making and issuing a currency designed to “replace” digital yuan circulation. This move would presumably criminalize all non-state-sanctioned yuan-backed stablecoins. 

The punitive measures against violators of this proposed law are harsh: most notably confiscating all profits, destroying all tokens, and imposing a fine of not less than five times the illegal amount created, in addition to the possibility of criminal prosecution and imprisonment.

The People’s Bank of China clarified that the draft of the new law is on the table for public consultation until November 23, 2020.

Previous reports have indicated that China hopes to start officially issuing the digital yuan before the Winter Olympics in Beijing in February 2022. Additionally, earlier this month, China conducted a major test of Shenzhen’s digital yuan payment system, where nearly 47,500 residents claimed 200 yuan ($30) each in digital currency which they then spent across 3,389 stores throughout the city.

This regulatory move is also just the latest in a worldwide trend towards CBDCs. The Bank for International Settlements had told Cointelegraph that it had worked with seven central banks to define the foundational principles necessary for any publicly available CBDCs to help central banks meet their public policy objectives.



Source link

Continue Reading

Bitcoin

Bitcoin Must Consolidate Above This Key Level, Or Risk Plunging to $11,900

Published

on



  • It has been a wild past few days for Bitcoin and the aggregated cryptocurrency market
  • Bitcoin has been able to post consistent gains throughout as of late, with buyers and sellers largely reaching an impasse following its slight rejection at $13,200
  • This has created a slight consolidation phase around $13,000 that it has been caught within throughout the past two days
  • If this phase persists in the near-term, BTC must continue holding above $12,800
  • One analyst noted that a break below this level could open the gates for a move down to lows of $11,900

Bitcoin and the aggregated cryptocurrency market have seen a roller-coaster week, with Bitcoin’s previous weakness being fully erased by bulls who sent it surging to fresh yearly highs of $13,200.

This move’s intensity has sparked a sense of euphoria and hope amongst traders and investors, with may expecting further upside in the days and weeks ahead.

For this to come to fruition, bulls must continue defending against a break below $12,800.

One analyst noted that a break below this level could open the gates for BTC to see a sharp decline down towards $11,900.

Bitcoin Struggles to Gain Momentum as Selling Pressure Mounts 

On a short-term scale, Bitcoin’s momentum is faltering slightly due to some heavy selling pressure within the lower-$13,000 region.

Until it can break above this region, there’s a possibility that a retrace could be imminent in the near-term.

At the time of writing, Bitcoin is trading flat at its current price of $12,985. This is around the price at which it has been trading for the past couple of days.

Each selloff has been aggressively absorbed by bulls, which is a positive sign.

Analyst: Here’s the Crucial Defense BTC Needs to Defend

While sharing his thoughts on Bitcoin’s present technical outlook, a popular crypto-focused analyst and trader at the Amsterdam Stock Exchange noted that $12,800 is the key support level to watch in the near-term.

He contends that a defense of this level could lead BTC towards $13,500, whereas a rejection could cause it to drop towards $11,900.

“Bitcoin: As long as $12,750-12,800 holds, I think $13,500 is next. But if it doesn’t hold as a pivot, I assume the price drops further down toward $12,200 and potentially $11,900.”

Image Courtesy of Crypto Michael. Source: BTCUSD on TradingView.

How the entire market trends in the months ahead will depend on Bitcoin. This makes it vital for BTC and altcoins investors alike that the benchmark crypto maintains its newfound momentum.

Featured image from Unsplash.
Charts from TradingView.





Source link

Continue Reading

Bitcoin

DeFi

Regulations

Advertisement

Trending