Ukraine’s Deputy Digital Minister Rejects ‘FTX-Democrats Narrative’

November 16, 2022 Bitcoin.com

Bitcoin price bottom takes shape as ‘old coins’ hit a record 78% of supply

November 2, 2022 Coin Telegraph

Analysis

Bitcoin’s long-term holders’ NUPL metric has dropped to levels that coincided with market bottoms thrice since November 2011.

Bitcoin (BTC) and the rest of the crypto market have been in a bear market for almost a year. The top cryptocurrency has seen its market valuation plummet by more than $900 billion in the said period, with macro fundamentals suggesting more pain ahead.

Another bear cycle produces more BTC hodlers

But the duration of Bitcoin’s bear market has coincided with a substantial rise in the percentage of BTC’s total supply held by investors for at least six months to one year.

Notably, the percentage of coins held for at least a year has risen from nearly 54% on Oct. 28, 2021, to a record high of 66% on Oct. 28, 2022, data shows.

This evidence suggests that long-term investors are increasingly looking at Bitcoin as a store of value, asserts Charles Edwards, founder of digital asset fund Capriole Investments.

“Despite the worst year in stocks and bonds in centuries, Bitcoiners have never held on to more Bitcoin,” the analyst noted while highlighting how the floor and ceiling in Bitcoin held for the long term have been increasing after each cycle.

*Bitcoin hodl waves featuring long-term BTC holding highs and floors. Source: Glassnode/Capriole Investments*

Hodler data hints at Bitcoin’s price bottom

Additionally, Glassnode’s research shows that the Bitcoin tokens held for at least five to six months are less likely to be sold. The number of these so-called “old coins” typically rises during bear markets, highlighting accumulation by the patient, long-term investors as short-term investors sell.

The behavioral difference is visible in the chart below, where the downtrend in Bitcoin’s price coincides with a persistent decline in the number of “younger coins” and an increase in the number of coins inactive for at least six months, or “old coins.”

*Bitcoin’s percent young (red) vs. old (blue) supply. Source: Glassnode*

As of Oct. 31, the old coins comprise nearly 78% of the Bitcoin supply in circulation versus younger coins’ 22%, thus reducing the likelihood of intense sell-offs while forming a potential market bottom.

Moreover, on-chain data tracking Bitcoin’s price and its long-term holders’ (LTH) net unrealized profits and losses (NUPL) hints at a similar scenario.

*Bitcoin entry-adjusted LTH-NUPL. Source: Glassnode*

Notably, Bitcoin’s entry-adjusted LTH-NUPL has entered the capitulation zone (red) that has coincided with the end of previous bear markets, as shown above. That includes the strong bullish reversals witnessed in November 2011, January 2015 and December 2018.

As Cointelegraph reported, MicroStrategy, the world’s largest corporate holder of Bitcoin, has also reiterated its commitment to continue buying BTC for the long term.

“We have a long-term time horizon, and the core business is not impacted by the near-term Bitcoin price fluctuations,” explained MicroStrategy CEO Phong Le.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Costa Rica Might Be the Next Country to Establish Bitcoin as Regulated Currency

October 28, 2022 Bitcoin.com

Public Bitcoin miners’ hash rate is booming — but is it actually bearish for BTC price?

October 25, 2022 Coin Telegraph

Bitcoin

Efforts to keep Bitcoin mining operations afloat may end up stressing the spot BTC price further lower.

The public miners' share of the Bitcoin (BTC) network could grow to 40% by mid-2023, according to a new report by Hashrate Index. But this could bring more stress to an already bearish BTC market.

Public Bitcoin miners' hash rate jumps 295% in a year

The outlook appeared after assessing the hash rate performance of Core Scientific, Marathon Digital Holdings, Riot Blockchain, and other public miners in the last 12 months. Notably, these firms increased their hashing capacity to 58 EH/s in October 2022 from 15 EH/s a year ago — up 295%.

*Bitcoin mining public versus private hash rate performance. Source: Hashrate Index*

In comparison, the private miners' Bitcoin hashrate increased from 134 EH/s to 177 EH/s in the same period — 58% growth.

"The driving force for the public miners' rapid capacity increases is that they could access cheap capital during the bull market of 2021," explained Jaran Mellerud, a Bitcoin mining analyst and author of the Hashrate Index report.

He adds that public miners employed the money to purchase massive mining rigs. As a result, these firms have tens of thousands of Bitcoin mining rigs in storage, waiting to be plugged in, while awaiting deliveries of more rigs.

Core Scientific - the biggest public #bitcoin miner - has a 5% share of the total hashrate. Marathon and Riot follow behind, each controlling over 2% of Bitcoin's hashrate.

In total, there are seven public bitcoin miners with a hashrate share of more than 1%. pic.twitter.com/ZnwsFjvQcy
— Jaran Mellerud (@JMellerud) October 24, 2022

Thus, the Bitcoin hash rate generated by public miners could continue to increase substantially as more and more new machines come online.

On the other hand, private miners couldn't access the capital to purchase mining rigs. So their hash rate contribution growth may remain slower by comparison, argues Mellerud.

Stressed miners could boost Bitcoin selloff risks

But in 2022, Bitcoin miners in general have been battered by declining BTC prices, rising energy costs, regulations, and growing competition. Public mining firms have rushed to raise capital by issuing additional stakes or by taking on more debt, resulting in massive declines in their stock prices.

For instance, Valkyrie Bitcoin Miners ETF (WGMI), which tracks several major public miners, has plunged 75% since its launch in February.

*Valkyrie Bitcoin Miners ETF weekly price chart. Source: TradingView*

Another unpopular alternative to raising capital is selling Bitcoin at lower prices. For instance, Core Scientific has dumped 85% of its Bitcoin holdings since the end of March, according to its August update.

The same period witnessed BTC's price decline by 60% to around $19,500 a token. In other words, a growing hash rate may boost miners' need to sell Bitcoin for cash to keep their operations running.

"Its an absolute bloodbath," wrote Marty Bent, founder of Bitcoin media company TFTC, adding:

"Bitcoin miners are in a world of hurt right now and the likely outcome is a wave of failures in the coming months as hashrate continues to pump, the price remains flat and as energy prices continue to rise."

*BTC/USD weekly price chart. Source: TradingView*

Meanwhile, Mellerud says that many public miners will not be able to handle a decline in cash flows, resulting in bankruptcies. As a result, their mining rigs could be auctioned off to private miners.

Conversely, public miners' decision to increase their capacity may pay off if the Bitcoin price undergoes a decisive bullish reversal. As Cointelegraph reported, signs of a potential market bottom are already emerging, which would provide relief to miners struggling at current prices.

3 reasons why Quant Network’s QNT token may have topped after 450% gains since June

October 19, 2022 Coin Telegraph

Altcoin

QNT whales have started securing profits after the token's 450%-plus price rally since June 2022.

The price of Quant Network (QNT) eyes a sharp reversal after an impressive 450% rally in the past four months.

QNT's downside outlook takes cues from a flurry of technical and on-chain indicators, all suggesting that investors who backed its price rally have likely reached the point of exhaustion.

*QNT/USD daily price chart. Source: TradingView*

Here are three reasons why it could be happening.

Quant's daily active addresses drop

Interestingly, the period of QNT's massive uptrend coincided with similar upticks in its number of daily active addresses (DAA). This metric represents the number of unique addresses active on the network as a sender or receiver.

As of Oct. 17, the Quant Network's DAA reached an all-time high of 10,949, up from around 5,850 four months ago, data from Santiment shows. Its upsurge during the QNT price uptrend shows traders were net buyers.

However, the DAA readings dropped sharply in the past two days, reaching nearly 6,800 on Oct. 19. Simultaneously, QNT's price fell by 25.5% to $171 in the same period, suggesting that many traders have been securing their profits.

*Quant Networks's price versus daily active addresses. Source: Santiment*

QNT price downside target

The profit-taking in the Quant Network market comes as its daily relative strength index (RSI) crossed above 70 on Oct. 17, hinting that the asset is overbought.

An overbought RSI does not necessarily mean a strong bearish reversal, however. Instead, it shows that the price has moved upward too quickly and, thus, a correction is becoming increasingly likely before the uptrend could resume.

QNT's daily RSI corrected to 65 on Oct. 17. Simultaneously, the token's price dropped toward $185, coinciding with its 0.236 Fib line of the Fibonacci retracement graph shown in the chart below.

The $185-level was instrumental as support in August 2021. But given the existing profit-taking sentiment, the level may not hold for long, which could result in an extended decline toward the $137-$150 support range.

The area falls between QNT's 0.382 and 0.5 Fib lines and further coincides with its 50-day exponential moving average (50-day EMA; the red wave in the chart above), creating a strong support confluence. Therefore, a break below $185 could have QNT bears eye $137, a 25% drop, as the ultimate downside target by the end of the month.

QNT whales diminish

The period of Quant Network's 450% price rally heavily coincided with the increase in the number of addresses holding between 100 QNT and 1,000 QNT tokens, dubbed as "whales" by Santiment.

However, the whale count started dropping on Oct. 16, a day before QNT's price and DAA topped out. Meanwhile, addresses holding between 1,000 QNT and 10,000 QNT tokens also fell, suggesting that the plunge in the 100-1,000 QNT cohort was due to token distribution, not accumulation.

*Quant Network addresses holding 100-1,000 QNT and 1,000-10,000 QNT tokens. Source: Santiment*

In other words, QNT whales have started selling their holdings near the token's potential price top, raising possibilities that the decline could continue toward the technical targets, as mentioned above.

$740M in Bitcoin exits exchanges, the biggest outflow since June’s BTC price crash

October 18, 2022 Coin Telegraph

Bitcoin

Bitcoin price technicals, however, remain bearish for with the BTC price eyeing a run-down toward $14,000 in Q4.

The amount of Bitcoin (BTC) flowing out of cryptocurrency exchanges picked up momentum on Oct. 18, hinting at weakening sell-pressure that could help BTC price avoid a deeper correction below $18,000.

Bitcoin forming a "bear market floor"

Over 37,800 BTC left crypto exchanges on Oct. 18, according to data tracked by CryptoQuant. This marks the biggest Bitcoin daily outflow since June 17, on which traders withdrew nearly 68,000 BTC from exchanges.

Moreover, over 121,000 BTC, or nearly $2.4 billion at current prices, has left exchanges in the past 30 days.

*Bitcoin exchange netflow from all exchanges. Source: CryptoQuant*

A spike in Bitcoin outflows from exchanges is typically seen as a bullish signal because traders remove the coins from platforms that they wish to hold. Conversely, a jump in Bitcoin inflows into exchanges is typically considered bearish given that the supply immediately available for selling increases.

For instance, Bitcoin bottomed out locally at around $18,000 when its outflows from exchanges reached nearly 68,000 BTC on June 17. The cryptocurrency's price rallied toward $24,500 in the following weeks.

This time, the massive uptick in Bitcoin outflows from exchanges surfaces as the BTC price downtrend pauses inside the $18,000-$20,000 range. Interestingly, Bitcoin whales have been mainly behind the coin's strong foothold near the $18,000 level, according to several on-chain metrics.

For instance, the Accumulation Trend Score by Cohort notes that the wallets holding between 1,000 BTC and 10,000 BTC have been accumulating Bitcoin "aggressively" since late September.

*Bitcoin accumulation trend score by cohort. Source: Glassnode*

In addition, whales' on-chain behavior shows that they have recently withdrawn 15,700 BTC from exchanges, the largest outflow since June 2022.

*Bitcoin whale deposits and withdrawals volumes from exchanges. Source: Glassnode*

"Bitcoin prices have shown remarkable relative strength of late, amidst a highly volatile traditional market backdrop," noted Glassnode in its weekly review published Oct. 10, adding:

"Several macro metrics indicate that Bitcoin investors are establishing what could be a bear market floor, with numerous similarities to previous cycle lows."

Positive BTC fund inflows

Meanwhile, Bitcoin-based investment vehicles have also seen the fifth week of consistent inflows, according to CoinShares weekly report.

About $8.8 million entered Bitcoin funds in the week ending Oct 14, which pushed the net capital received by these funds to $291 million on a year-to-date timeframe. CoinShares head of research James Butterfill said the inflows imply a "net neutral sentiment amongst investors" toward Bitcoin.

*Capital flows by asset. Source: CoinShares*

On the flip side, Bitcoin's technical outlook remains in favor of the bears, given the formation of what appears to be an inverted-cup-and-handle pattern on its three-day chart.

An inverted-cup-and-handle pattern forms when the price undergoes a crescent-shaped rally and correction followed by a less extreme, upward retracement. It resolves after the price breaks below its neckline and falls by as much as the distance between the cup's peak and neckline.

*BTC/USD daily price chart featuring inverted-cup-and-handle pattern. Source: TradingView*

Bitcoin's price could fall toward $14,000 if the inverted cup and handle play out as mentioned, in accordance with previous reports, or a 30% drop from current price levels.

Blockchain-Based Platform Created by Saudi Students Places Third in National Women’s Coding Competition

October 18, 2022 Bitcoin.com

BTC Ownership in Canada Rises Sharply in 2021, Bank of Canada Study Shows 13% of Canadians Own Bitcoin

October 15, 2022 Bitcoin.com

Why is the price of Huobi Token up 12% today as rest of the market slumps?

October 13, 2022 Coin Telegraph

Altcoin

HT price makes further gains as Huobi Global opens SEAN spot trading, but the rally might be short-lived as technicals flip bearish.

Huobi Token (HT) has been up 12% in the last 24 hours and is one of the few cryptocurrencies bucking the general downtrend.

Trading at over $7, HT's price is up over 80% since the beginning of this week, which is also its best weekly performance since February 2021.

*HT/USD daily price chart. Source: TradingView*

HT's intraday gains coincide primarily with crypto exchange Huobi Global announcing the opening of Starfish Finance (SEAN) spot trading on its platform.

Plans to "empower" HT

Additionally, HT's impressive weekly gains were related to About Capital Management. On Oct. 8, this Hong Kong-based investment firm announced purchasing Huobi Global, one of the leading cryptocurrency exchanges by volume.

HT serves as a utility token inside the Huobi Global ecosystem. Justin Sun, the founder of the Tron blockchain project and reportedly the core backer of About Capital, said on Oct. 10 that they would empower HT to boost Huobi Global's brand and business endeavors.

今天是我入职Huobi第二天，我代表Huobi Global顾问委员会发言，我们深知振兴Huobi的关键就是赋能HT，HT兴火币才能兴！未来将有许多大动作围绕HT展开，包括品牌升级，重磅赋能，商务合作，我们会团结一切能团结的力量，共同把@HuobiGlobal 做好！
— H.E. Justin Sun (@justinsuntron) October 10, 2022

Nevertheless, the HT price rally has exposed it to potential profit-taking scenarios, per a mix of technical indicators.

Huobi Token overbought?

On the daily chart below, HT's relative strength index (RSI) has crossed above 70, which is considered an "overbought" signal. That typically follows with the price entering a consolidation or correction period.

Similarly, the HT price rally witnessed this week accompanies a drop in trading volumes, suggesting traders have been growing doubtful about the longevity of the uptrend. Again, it could result in a price correction in the coming days.

The third bearish signal comes from HT's weekly chart.

*HT/USD weekly price chart. Source: TradingView*

Notably, HT's price now tests a resistance confluence made up of its 50-week exponential moving average (50-week EMA; the red wave), the 0.786 Fib line near $7.30, and a horizontal level near $7.40 that has historically served as support but now acts as a price ceiling.

The event of a pullback from this resistance confluence could have HT drop toward the $3.4-$3.8 area by the end of this year, a 50% price decline.

Spanish Telecom Giant Telefonica Invests in Bit2Me, Pilots Cryptocurrency Payments

October 3, 2022 Bitcoin.com

Investment