Category: Cryptocurrency News

The recent crypto winter has affected miners negatively to the extent that many sold off their Bitcoin and other crypto holdings. In addition, many of these miners could not even pay their loans since their rigs’ values plummeted. As the price falls, there have been a lot of losses for them, given the cost of producing BTC. But now, recent events show that even the cost of producing the crypto for miners has also dropped. Recent news states there has been a 50% dip in the cost of producing Bitcoin. JP Morgan Chase & Co stated this in a recent report. JPMorgan Chase & Co is an American-based multinational investment bank. BTC Production Cost Drops To $13,000 Strategists headed by Nikolaos Panigirtzoglou at Wall Street banking announced the plunging of BTC production costs. According to the report, the Bitcoin production cost as of June 2022 was $24,000. But currently, the production cost stands at $13,000. The strategists added that this could, in turn, hurt the prices of digital tokens. Suggested Reading | Avalanche Notches Solid Mid-Week Bounce – Can AVAX Sustain The Positive Noise? They also cited that the primary cause of the decline in the production cost can be traced to the limited use of electricity. This report was drawn from the Cambridge Bitcoin Electricity Consumption Index data. As per JPMorgan, this can also affect the price of Bitcoin, looking at the present bearish trend of the digital currency market. Defeat Of Bitcoin Miners Bitcoin and the whole digital market have been facing a new phase of a bearish market. The event can be traced back to November 2021, after Bitcoin hit its ATH (all-time-high) of $69K. This occurrence has affected certain high-profile companies and blockchains. A prominent example to note is the crashing of the LUNA digital token, which was based on the Terra blockchain. Another instance includes the insolvency of Three Arrows Capital (3AC). Also, the information about the hiking rates of the Federal Reserve to fight inflation is another example to note. Drawing from the crypto market watch, the most significant digital token, BTC, has been fluctuating around the $20K mark. This is about 70% of the digital token’s price drop last year. The drastic price change in the Bitcoin price posed a high level of uneasiness in the minds of BTC miners. This high price crash was why many BTC miners sold off the digital asset. This was notable in the second quarter of this year. Suggested Reading | CEL Token Price Plummets 50% As Celsius Goes Bankrupt With this newest development, miners’ profitability will at least increase, and the craze to sell their holdings will reduce. But analysts believe that the bitcoin price might be affected negatively in the long run since the cost of producing it is now lower. If this keeps happening, investors who already have BTC in their portfolios will lose more. Featured image from Pixabay, charts TradingView.com

I want to store my private key offline, I don't want to trust my key to smartphone (which I've saw most wallets run on). I have spare old PCs and I like open source. So I envision I create transaction(s) to send ETH on offline PC, copy them to connected one (or smartphone) and send…
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First and foremost: I don't trust Tether anymore than I trust my junkie brother in law. But this sub's reaction to the recent USDC – attestation post has me concerned we're putting too much "trust" in these massive crypto-banking entitites. Circle/ USDC recently disclosed it's full holdings – In a self-attestation. Important Note from the…
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Are we in a bear market? Opinions vary, but it certainly feels like one. Markets across the board and across the world are in the red, and the bitcoin and crypto ones are no exception. If you’ve been paying attention, you know how all of this happened, but a refresher course wouldn’t hurt. Using ARK Invest’s latest Bitcoin Monthly report as a guide, let’s go through the tragic sequence of events and evaluate the bitcoin market as it stands. According to ARK, the road to the bear market went like this:  “Beginning with the Terra collapse in early May, contagion spread to major crypto lenders including Blockfi, Celsius, Babel, Voyager, CoinFlex, contributing to the insolvency of the once highly-respected hedge fund, Three Arrows Capital (3AC). Since Terra’s collapse, total crypto market capitalization has dropped ~$640 billion.” Nevertheless, there seems to be a light at the end of the tunnel. “Promisingly, however, recent fallout (Babel, Voyager, CoinFlex, Finblox) appears lower in magnitude compared to Terra, Celsius, and 3AC.” That doesn’t mean the end of the bear market is near, nor that capitulation is already over. Especially if the Mt. Gox victims receive the rumored 150K BTC. First, let’s follow ARK as they analyze two of the main players in this drama. Then, let’s check the stats of the bitcoin market to see if we can find signs and clues that point out to the end of the capitulation stage. SPOILER ALERT: The jury is still out on that one. Some signs point to an early end, others to further downside. Aren’t bear markets fun? Celsius And The Death Spiral When Terra fell, the earth trembled. The Luna Foundation Guard sold nearly all of their 80K BTC reserve trying to defend the UST peg to the dollar. This event could’ve been the catalyst for the bear market. The worst was yet to come, though. Several once-respected institutions were heavily exposed to Terra through its Anchor protocol, and the UST collapse sent them all into a still ongoing death spiral.  According to ARK, “Celsius froze withdrawals on June 12th in response to significant outflows. Its DeFi debt outstanding is $631 million but the magnitude of its nonDeFi exposure is unclear.” There was still hope for its clients, as the company paid several loans. However, Celsius filed for Chapter 11 bankruptcy, leaving them all high and dry. What really happens to the coins you deposit to reputable lending platforms. pic.twitter.com/RQh7jfrrNZ — softsimon (@softsimon_) July 13, 2022 The Chief Commercial Officer at Choise.com, Andrey Diyakonov, analyzed the situation for NewsBTC: “To put things into perspective, we need to turn it upside down, and ask, how much of the recent price action on the markets was influenced by or outright created by Celsius’ actions? What goes around always comes around. It’s so much more ironic given those credible reports that Celsius withdrawals were among those that sent UST and Terra position down the rabbit hole to find out where the bottom is.” Our team covered that particular claim and the company’s response. Three Arrows Capital And The Bear Market Then, there was “Three Arrows Capital (3AC), a highly regarded crypto hedge fund reportedly managing $18 billion at its peak, appears to be insolvent after taking on too much leverage.” That’s according to ARK, who also says, “Seemingly, 3AC took on excess leverage to try and recover the losses. Its creditors included major players in the industry like Genesis, BlockFi, Voyager, and FTX.” All of those companies except FTX seem to be counting down to extinction.  BTC price chart for 07/15/2022 on Velocity | Source: BTC/USD on TradingView.com Is The Bear Market Just Beginning Or About To End? Is the bottom in? Opinions vary. In a section titled “Market Contagion Sets Bitcoin Into Capitulation,” ARK analyzes all of the indicators and can’t reach a final conclusion. The numbers are extremely interesting, though. “Down 70% from its all-time high, bitcoin is trading at or below some of its most important levels: its 200-week moving average, the general cost basis of the market (realized price), the cost bases of long-term (LTH) and short-term holders (STH), and its 2017 peak.” This “suggests extremely oversold conditions,” which is a great sign. However… “Historically, global bottoms occur when the MVRV of short-term holders exceeds the MVRV of long-term holders. That condition has not been met, suggesting the potential for more downside.” The “condition has not been met,” but it’s close. Very close. “This month, miners generated revenues only 45% of that for the last twelve months, breaching a threshold that usually correlates with market bottoms.” Miners who didn’t practice proper risk management have been selling at the present low levels. Miners who know what they’re doing will keep holding until we come out of the bear market. The question is, how many companies are in the first group and haven’t sold just yet?  “Net realized losses in bitcoin recently reached a 2-year low, breaching 0.5% for only the fourth time since 2013.” Historically, this suggests capitulation is over. Or is it? “Bitcoin’s net unrealized loss has hit a 3-year low, highlighting that its current market value is nearly 17% lower than that of its aggregate cost basis. Historically, global bottoms have formed when losses hit 25%+.” If we’re going to reach 25%, that means there’s still a long way to go. Is the bear market just beginning or about to end? The data is unclear. But capitulation seems to be nearing its end, which would be the first step in the right direction. Featured Image by Marc-Olivier Jodoin on Unsplash | Charts by TradingView

Bitbase, a Spanish cryptocurrency exchange and crypto ATM operator, has announced its expansion to Latam with the establishment of a store in Paraguay. The company, which had previously opened a store in Portugal, is now bringing its operations to several locations in Paraguay, having its sights on Venezuela as the next destination for its expansion […]

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Ethereum’s transition journey from PoW to PoS journey could take up to years as it began with the launch of Beacon Chain in December 2020 and has seen several delays on the way.

The upswing in alternative currencies is outshining the top cryptocurrencies. In particular, the MATIC, UNI, and AAVE tokens are doing well, whereas the biggest currency, Bitcoin, is still fighting to keep its position above the $20,000 mark. Polygon (MATIC) skyrocketed on July 14 — the day after it was chosen for the Walt Disney Company’s elite business development program. After this announcement, the value of a MATIC token rose 22.5% to $0.711705, the highest price in a month. Related Reading | Avalanche Notches Solid Mid-Week Bounce – Can AVAX Sustain The Positive Noise? It is the only blockchain network to have ever been selected by Disney. As a result, the native utility and staking token of Polygon, MATIC, recovered more strongly than most of its competing digital assets. MATIC price is currently at $0.693640, up 9.2% over the previous 24 hours and 46.7% for the previous 14 days. According to CoinGecko statistics, the coin is down 76.4% from its ATH of December 27, 2021, which was over seven months ago. On the other hand, $2.46 billion worth of transactions has taken place in the past 24 hours, representing a huge rise of 31.46%. While Aave (AAVE), 46 largest currency, is currently trading at $92.47 and has increased by 16.4% over the past day and by a sizable 63.4% over the past 14 days. AAVE has been climbing since it recovered from a falling support line on June 18. Where some of the leading altcoins experience a volatile trading session, Uniswap (UNI) is up a stunning 12.4% for the day. The current Uniswap price is $7.06, with a 24-hour trading volume of $701.54 million, up by 22%. Bitcoin Is Retaining Its Level Of Attention BTC gained a new level of attention at under $21,000. The cryptocurrency market is beginning to recover, as shown by BTC, which is currently up 4.3% in value and trading at $20,807.69. In addition, a new 40-year high in U.S. inflation, as measured by the Consumer Price Index (CPI), has caused the price of bitcoin to increase from its lows. Well, there are indications that Bitcoin is stabilizing. However, after rising as high as $22,000 less than a week before reversing course, BTC is still desperately trying to hold its position above the crucial $20,000 level. Related Reading | A Breakout Above This Level Could Help Polkadot Recover On Chart Investors are worried that because inflation is still extremely high and the Federal Reserve is trying to combat it by raising interest rates, which reduces economic demand, it won’t be able to prevent a recession. Furthermore, an economic downturn would not be favorable for riskier investments, including Bitcoin and other cryptocurrencies. Along with macro factors, the problems in the cryptocurrency industry itself have made the price declines worse. The state of the crypto market is already severe. The cost of bitcoin has recently come off of its worst quarter in more than ten years, but it is still trading 70.7 % below its all-time high, set in November 2021. Featured image from Flickr, chart from Tradingview.com

Don't get me wrong, I'm bullish on Polygon and I'm bullish on Ethereum. Polygon was the only blockchain chosen by this accelerator program and it's huge. This is going to bring a ton of eyes to web3 and is going to be doing a ton towards the goal of mass adoption. Polygon is up by…
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