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More than half of all Ethereum hasn’t moved in 12 months

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More than half of Ethereum’s circulating supply has not moved in more than a year, with only 39.6% of Ether (ETH) changing hands over the past 12 months.

According to Glassnode’s ‘hodlwaves,’ which offers a chronological breakdown of the velocity of on-chain transactions, roughly 28% of Ether last moved between the past 12 and 24 months — comprising the largest segment of on-chain activity.

Ethereum hodlwaves: Glassnode

The data suggests that many whales spent 2019 accumulating Ether in advance of the project’s ETH 2.0 overhaul — for which phase 0 is expected to commence in the coming months, allowing users to stake their Ether for the first time. 

Around 20% of tokens have not moved since before October 2017, with analysts watching to see if a percentage of these coins are moved into staking with the roll-out of phase 0.

Phase 0’s coming launch appears to have sparked a recent increase in the short-term velocity of on-chain transfers, with the share of Ether moved in the past 24 hours increasing from less than 0.5% during January and February to average more than 1% in early September. 

Weekly velocity also increased from 1.5% at the start of the year to tag 5% in both July and September, while monthly and quarterly transfers similarly increased steadily since June.

By contrast, Bitcoin’s short-term on-chain velocity has largely declined since the pre-halving hype and ‘Black Thursday’ crash of early 2020, with weekly transfers sliding from nearly 6% of supply in February to between 3.5% and 4% in September.





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PayPal Forays into Crypto Market as Bitcoin Price Explodes Past $12,400

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  • Bitcoin is now trading at the highest price seen in well over a year, with bulls aiming for $13,000 as its strong uptrend gains momentum
  • Today, news regarding PayPal’s foray into the crypto market provided the benchmark cryptocurrency with a serious boost
  • Its price surged all the way up to highs of nearly $12,500 before meeting some resistance, but it does appear to be poised for further gains
  • This recent uptrend has come about in the absence of any immense bullishness in the stock market, with BTC incurring independent momentum
  • Where it trends next will likely depend on how long it can stay above $12,000

After struggling to gain momentum throughout the past few weeks, Bitcoin has now entered a firm bull trend as its price rockets up towards fresh yearly highs.

The cryptocurrency is currently trading at the highest price seen since earlier this year, with bulls appearing to be in firm control of its short-term trend.

This trend is now leading BTC up towards $13,000 – a level that has not been breached since the June of 2019 rally that sent the crypto towards $14,000.

This time is different than before, as the benchmark cryptocurrency is being driven by immense underlying strength.

PayPal’s decision to provide its users with access to buying, selling, and storing cryptocurrency is one catalyst behind today’s move.

Bitcoin Rockets Towards $13,000 as Buying Pressure Mounts

At the time of writing, Bitcoin is trading up just under 4% at its current price of $12,380. This marks a massive surge from its recent lows of $10,200 set just a few weeks ago.

The cryptocurrency is facing some resistance at $12,500, it seems, as sellers are aggressively offloading their holdings each time its price reaches this level.

This rally will likely persist in the near-term if bulls continue holding BTC above $12,000.

PayPal Sparks a New Sense of FOMO Amongst Investors

The latest leg higher came about following reports of PayPal entering the crypto market, allowing users to buy, sell, and store Bitcoin and other digital assets like Ethereum.

As Reuters reported earlier today:

“PayPal joins the cryptocurrency market, allowing customers to buy, sell and hold virtual coins including bitcoin using the company’s online wallets.”

This is the latest major name in FinTech to involve itself with the nascent market, as Square recently made headlines with its decision to purchase $50 million worth of Bitcoin to be held on its balance sheets as a reserve asset.

Featured image from Unsplash.
Pricing data for BTCUSD from TradingView.





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Study finds CME drives Bitcoin price, but it excludes stablecoin volumes

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On Oct. 14, Wilshire Phoenix investment firm released its Efficient Price Discovery report, which detailed how CME Bitcoin (BTC) futures impact Bitcoin price discovery.

The firm concluded that “CME Bitcoin futures contribute more to price discovery than its related spot markets.” And the researchers also suggested that:

“CME Bitcoin futures have grown to become significant, this is not only demonstrated through trading volume and open interest, but also by influence on spot price formation.”

Wilshire’s analysis correctly states that price discovery in traditional markets is a contested topic. The report also adds that studies on price formation often find that the futures markets lead most of the time, but this doesn’t mean their conclusions about CME Bitcoin futures are absolute.

According to the report, CME Group, the leading derivatives venue, trades $5.15 trillion per day across its multiple markets. According to Nasdaq data, this number compares to the $430 billion in daily volume seen in the U.S. stock market.

This data shows that the trend of derivatives volumes surpassing spot exchanges by tenfold is the norm rather than an exception.