Hamster Kombat Scores Binance Listing, Updates HMSTR Supply Before Airdrop

September 14, 2024 Bitcoin.com

Bitcoin exchange reserve metric hits 3-year low

June 20, 2024 Coin Telegraph

Rising M2 money supply will see crypto become ‘Super Massive Black Hole’: Raoul Pal

October 31, 2023 Coin Telegraph

Historically, the cryptocurrency market has benefited from the rise in global money supply, as the majority of bull runs in the past coincided with the rise in fiat supply.

The rising total money supply (M2) could propel crypto into another bull rally and help it outperform the traditional markets, according to Raoul Pal, co-founder and CEO of financial media platform Real Vision. Pal’s X post highlighted the correlation between the rising fiat market supply and the start of the crypto bull run.

Pal, in an X (formerly Twitter) post, shared a graph comparing Bitcoin’s (BTC) yearly performance against the global M2 money supply, indicating the simultaneous rise of Bitcoin and global M2 supply. Historically, the Bitcoin and cryptocurrency markets have started outperforming the traditional financial markets with a rise in global M2 supply.

*Bitcoin vs. global M2 supply. Source: Global Macro Investor*

The chart above shows that Bitcoin’s price is on the verge of decoupling from the traditional market with a rising M2 supply, which has been the case historically, as evident from the spike in BTC’s performance in 2021, 2017 and 2014.

*Bitcoin/NDX vs. global M2 supply. Source: Global Macro Investor*

Pal said he “loves Global M2... this is when BTC outperforms the NDX and crypto becomes the Super Massive Black Hole.”

The M2 is the amount the United States Federal Reserve estimates to be in circulation; it comprises all cash that people own and all money placed in savings accounts, checking accounts and other short-term savings instruments like certificates of deposit.

A Bitcoin bull run is often linked to the block reward halving every four years, with the next one scheduled for April 2024, as it reduces the market supply of BTC against growing demand. However, the halving is not the sole factor behind the surge, as several macroeconomic factors also play a key role.

Over the past decade, Bitcoin’s price has made significant gains during the fast growth of M2, owing to a reduction in interest rates, quantitative easing and fiscal stimulus. On the contrary, during times of monetary tightening by central banks, the cryptocurrency market has struggled to gain bullish momentum. The 2021 bull market coincided with 6% or higher aggregate M2 growth at the Fed, European Central Bank, Bank of Japan and People’s Bank of China.

Magazine: Beyond crypto — Zero-knowledge proofs show potential from voting to finance

Why the 2024 Bitcoin halving may play out differently than in the past

October 19, 2023 Coin Telegraph

Bitcoin Halving

While the halving event is considered one of the main catalysts for Bitcoin bull markets, it may play out differently next year.

The impact of the Bitcoin halving on crypto prices is often overestimated and the next halving, set for April 2024, may play out differently than previous ones, according to a leading analyst.

The halving event, which every four years, cuts in half the rate by which new Bitcoins are created, and is generally considered one of the main catalysts driving Bitcoin’s biggest upside moves.

Despite the bullish narrative surrounding the halving, however, the event by itself does not guarantee the appreciation of Bitcoin.

If the reduced supply of new Bitcoin is not accompanied by significant demand, prices are unlikely to surge.

Also, the halving is an entirely predictable event: that means all market participants know in advance when it will occur and therefore its current price may already be reflective of the halving's impact before it happens.

“Things that we most anticipate generally don't happen,” said Bloomberg analyst Mike McGlone, commenting on the much anticipated event.

“And that's what I'm concerned about. It's complete consensus,” he continued.

Also, each time the halving occurs, its impact on the new Bitcoin supply decreases; over time, its impact will eventually become irrelevant. Changes in demand, rather than supply, are therefore becoming the dominant factor influencing the price of Bitcoin.

So, how will the next Bitcoin halving impact the crypto market? And, if not the halving, what is the catalysts behind Bitcoin’s cyclical upside moves? To find out, check out our latest Cointelegraph Report on our YouTube channel and don’t forget to subscribe!

Bitcoin scarcity rises as bad exchanges take 1.2M BTC out of circulation

November 19, 2022 Coin Telegraph

Coin Telegraph

Historical data around crypto crashes revealed that 14 crypto exchanges, together, were responsible for the loss of at least 1,195,000 BTC, representing 6.3% of the 19.2 Bitcoin currently in circulation.

One of the biggest factors differentiating Bitcoin (BTC) from fiat currency and most cryptocurrencies is the hard limit of 21 million on its total circulating supply. However, the demise of numerous crypto exchanges over the last decade has permanently taken out at least 5.7% (1.2 million BTC) of the total issuable Bitcoin from circulation.

The lack of clarity around a crypto exchange’s proof-of-reserves came out as the primary reason for their sudden collapses, as seen recently with FTX. Historical data around crypto crashes revealed that 14 crypto exchanges, together, were responsible for the loss of 1,195,000 BTC, which represents 6.3% of the 19.2 Bitcoin currently in circulation.

*Bitcoin lost due to defunct crypto exchanges. Source: Casa Blog*

An investigation conducted by Jameson Lopp, co-founder and CTO of Bitcoin storage platform CasaHODL, revealed that Mt. Gox maintains the top position when it comes to exchanges losing BTC holdings.

While the scarcity of Bitcoin is directly related to its value as an asset, Lopp pointed out that fake Bitcoin offerings currently threaten the ecosystem, adding that “Bitcoin will not be a great store of value if most people are buying fake bitcoin.” Investigations confirm that at least 80 crypto assets have “Bitcoin” in their names, aimed purely to mislead BTC investors.

As a result, investors purchasing fake Bitcoin assets negatively impact the price appreciation of the original Bitcoin.

80+ crypto assets have the word "bitcoin" in their name.
14 have a market cap over $1,000,000.
3 claim to be Bitcoin.
1 is Bitcoin.
— Jameson Lopp (@lopp) September 22, 2022

To ensure Bitcoin’s position as sound money, self-custody comes out as the most effective way to reduce reliance on crypto exchanges and corporate “paper Bitcoin” contracts.

Salvadorean President Nayib Bukele announced plans to acquire 1 BTC every day starting from Nov. 17, 2022.

We are buying one #Bitcoin every day starting tomorrow.
— Nayib Bukele (@nayibbukele) November 17, 2022

Public records show that El Salvador currently holds 2,381 BTC at an average buying price of $43,357. However, stagnant Bitcoin performance opened up a window of opportunity for the country to substantially bring down its average price of Bitcoin acquisition.

Total Supply