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Will Bitcoin target the $43k resistance level as price slowly recovers?

Bitcoin is trading above $41k again after adding more than 3% to its value today.

The broader cryptocurrency market continues its recovery, adding more than 2% to its value in the last 24 hours. At press time, the total cryptocurrency market cap stands around $1.9 trillion.

The total market cap could soon reach the $2 trillion psychological mark with the gains spread across the broader crypto market. 

Bitcoin remains the leading cryptocurrency, with a market dominance of over 41%. BTC has added more than 3% to its value in the last 24 hours, outperforming the broader cryptocurrency market in the process.

Bitcoin now trades around $41,200 per coin, an improvement from earlier this week when the leading cryptocurrency briefly dropped below the $40k psychological level. 

If the market sustains the current momentum, Bitcoin could look to reclaim its price above $43,000. However, it would need something special to move past the $45k resistance level before the end of the week.

Key levels to watch

The BTC/USD 4-hour chart is currently one of the most bullish amongst the top 10 cryptocurrencies by market cap. Bitcoin is only outperformed by LUNA and AVAX in the top 10 list at the moment. 

The MACD line is still below the neutral zone, an indication that the bearish momentum has not completely vanished.

The 14-day RSI of 50 shows that Bitcoin is no longer in the oversold territory. However, it would need to record further gains to enter the overbought region over the coming days.

If the rally continues, Bitcoin could surpass the first major resistance level at $42,621 before the end of the day. Bitcoin will trade above $43k again if the bullish momentum is sustained over the next few hours. 

However, Bitcoin could drop towards the $40k support level if the bearish trend resumes. Unless there is a massive loss, Bitcoin should defend its price above $39k in the short term.

The post Will Bitcoin target the $43k resistance level as price slowly recovers? appeared first on Coin Journal.

Bitcoin price surges above $47.5K: what is fuelling the comeback?

Bitcoin, the world’s largest cryptocurrency, among other major altcoins started the week on a surge after a bloodbath that saw the majority of cryptocurrencies nosedive below expected levels over the past two months of 2022.

Yesterday, BTC reached a new three-month high after hitting a high of $47,765 before retracing back to $47,506.06 at the time of writing.

This article focuses on the forces behind the current Bitcoin price comeback.

Factors behind the current BTC rally

There are two main factors that are being attributed to the current Bitcoin (BTC) price surge that has seen Bitcoin maintain above $47K as it heads back above $50. 

These factors include increased short-sellers and a surge in BTC whale addresses.

  • Short Sellers

Glassnode, a well-known crypto analyst, investigated to see what the surge is all about. In a video, the analyst said that those betting on a protracted drop in Bitcoin price (Short Sellers) are the ones responsible for the current market trend.

Besides, when the market experiences dramatic upswings, there are short liquidations too.

The analyst said:

‘’They can watch it falling, down, down. They eventually get enough confidence to say, “You know what? I’m tired of being squeezed out of my long position. I’m going to go short.” They did it at the exact bottom, which is impressive, but then they are squeezed out oppositely, and the trend begins to shift.’’

The current bitcoin bullish trend started on February 24, 2022, after ‘short’ liquidations started gaining momentum. At the time BTC was trading at around $37000. 

According to the analyst, although ‘short sellers’ are responsible for the surge, they need to have an organic demand.

  • A surge in BTC whale addresses

Another factor for the current surge is the growing number of BTC whale addresses.

Glassnode said that there has been a huge increase in the overall accumulation balance which shows that more people are stacking the coin. From the address growth, we can also see that there is a genuine organic demand.

The post Bitcoin price surges above $47.5K: what is fuelling the comeback? appeared first on Coin Journal.

Anthony Pompliano: Bitcoin is destroying stocks this year

  • Pompliano says Bitcoin has shown greater decoupling from stocks and is now positive year-to-date.

  • The Fear & Greed index jumped from “neutral” to “greed” between Sunday and Monday.

  • Nexo and BitBull executives are also bullish about Bitcoin, with $46,000 now a key price level for bulls.

Bitcoin’s breakout over the past few days has included a rally to highs of $48,075 as seen in intraday trades on Monday.

The upside has pushed BTC price into the positive territory year-to-date while showing a greater decoupling from the stock market.

BTC is up, stocks are down YTD

In Pomp Investments founder Anthony Pompliano’s words, “Bitcoin is destroying stocks this year,” even as the “haze” that shrouded the market at the start of the year begins to clear. 

He notes that Bitcoin is up while stocks are down, with the sideways action giving way to fresh gains in BTC that have left equities in the dust.

We are watching Bitcoin outperform the equities market year-to-date, just like it did last year and just like it’s done over the last decade or so,” the entrepreneur said.

Looking at the S&P 500, we see its year-to-date performance at -4.61%. The Nasdaq Composite is 9.33% down, while the Dow Jones Industrial is -4.45% YTD. Bitcoin, on the other hand, is nearly 4% up year-to-date, with gains since the YTD low of $33k now around 44%.

Fear & Greed index

Pomp also points to the Fear & Greed index and says it’s undergone quite a shift in just a few days.  There’s a lot of buy-side pressure as the “greed” index hits slightly above 60. On Sunday, the metric was around 49 (neutral) and it hovered in the mid-20s last week.

The rally to highs of $48k proves Bitcoin remains the king even when there’s “blood on the streets,” Pompliano added.

He says Bitcoin continues to show it’s the “ultimate safe haven asset.”

According to the co-founder and managing partner at Nexo Antoni Trenchev, Bitcoin’s rally has seen it test 2022’s peak for the fifth time. With more people likely to “pile” into the market, as a result, it is possible to see further buying propel BTC-USD even higher.

It might just be time to awaken from the Bitcoin-sideways slumber that’s been 2022,” Trenchev said in a quote Pompliano highlights in his YouTube comment.

Joe DiPasquale, the CEO of BitBull Capital says bulls might now want to see BTC-USD stay above $46,000 to give room for new momentum. “The coming week is also important as it marks the end of the quarter, and we could see increased volatility after that,” he told Pomp.

The post Anthony Pompliano: Bitcoin is destroying stocks this year appeared first on Coin Journal.

Canada PM candidate Pierre Poilievre buys lunch with Bitcoin

Tahinis Restaurants owner Aly Hamam shared his ‘secret’ with Canadian politicians during a Standing Committee on Finance’s Pre-Budget Consultations session.

Canadian politician and Conservative leadership candidate Pierre Poilievre just bought lunch at Tahinis Restaurants using Bitcoin (BTC).

The news follows an earlier tweet from the politician about his plan to buy a shawarma with BTC even as he met the owner of a business that outsmarted the government to beat inflation.

Poilievre, who wants to become the next Canadian Prime Minister, could help Canadian businesses do just that. And he said as much in a tweet posted on Monday, which also aligns with his other big plan – to give people back their ‘freedom’ and make Canada the world’s “blockchain capital.”

Bitcoin to the ‘world’

You’ll never believe how this London shawarma shop owner outsmarted government to beat inflation. Today, I’m buying lunch from him—and bringing my Bitcoin wallet.”

So, how did a small business manage to beat inflation, outsmarting government experts and officials in the process? In a video, also shared on Monday, Poilievre specifically says even the Finance Minister got it (inflation) wrong.

Asked how, Aly Hamam, the owner of Tahinis Restaurants, gave an apt response:

He and his company noticed how there was a lot of money “chasing the same goods” in the months before the pandemic. And more money, exacerbated by the quantitative easing that followed the pandemic led to the rising inflation seen over the past year.

Luckily, Tahinis had stumbled upon Bitcoin (BTC).

According to Hamam, Bitcoin’s fixed money supply meant they went “in knowing the rules” and more importantly, these rules “don’t change on you.” Simply, no one controls the money as do banks and politicians.

He said Tahinis bought Bitcoin when the coin’s value was around $10k-$12k in 2020. At BTC’s market price of around $37k last week, the company had a +66% deflationary advantage over its fiat holdings at the start of the pandemic.

Here’s the rest of Hamam’s Bitcoin experience.

The post Canada PM candidate Pierre Poilievre buys lunch with Bitcoin appeared first on Coin Journal.

Global air conditioning consumes 16 times the amount of electricity as Bitcoin – Deep Dive on Bitcoin’s energy consumption

When talking to people about cryptocurrencies, one of the top things people mention is how bad it is for the environment. This narrative has become prevalent in mainstream media, and we will mention several examples in this article.

Whereas five years ago, the most common anti-crypto argument was that it’s only a covert, anonymous network used by criminals on the dark web, today the biggest criticism is undoubtedly the anti-environment angle.

So, is it true? Is cryptocurrency actually boiling our oceans? Let’s find out.

Consensus Algorithms

We first dug into the attached data from Crypto Wisser, which ranks the top 100 cryptos by energy consumption. So, a high rank below indicates a heavy energy consumption, whereas a low rank signifies relatively light energy consumption (i.e. rank 100 means the most energy intensive crypto in the top 100, rank 1 means the least energy intensive).

We filtered the data by consensus algorithm, in order to see which type of mechanism consumes the most energy, and created the below graph. The results are obvious: Proof-of-Work mechanisms are clearly the most energy intensive mechanisms, while Proof-of-Stake blockchains consume the least.

Graphing Crypto Wisser’s data, we see Proof-of-Work mechanisms consume by the most energy

Bitcoin & Ethereum

You may have heard of the two biggest Proof-of-Work cryptos: Bitcoin and Ethereum. However, Ethereum will be transitioning to a Proof-of-Stake blockchain soon (well, we say soon. The merge has been repeatedly pushed back but the consensus is that it will finally happen this year). The hope is that Ethereum transitioning to Proof-of-Stake will reduce its energy output by 99%, and hence it would fall down the ranks in our graph above.

With this Ethereum move in the pipeline, alongside the anticipated energy reduction, we will focus our attention on Bitcoin. Let’s try to answer perhaps the most asked question in crypto: quite how bad is Bitcoin for the planet?

Provocative Statistics

In September 2021, the New York Times reported that “The process of creating Bitcoin to spend or trade consumes around 91 terawatt-hours of electricity annually, more than is used by Finland, a nation of about 5.5 million”.

This was preceded four months earlier by a Forbes article in May-21, which reported that Bitcoin’s “annual electricity consumption is higher than Norway’s 124 TWh and more than twice the level of Bangladesh’s 70 TWh”.

BBC put their own spin on things another three months earlier, when they printed the shocking fact that “Bitcoin uses more electricity annually than the whole of Argentina”.

They certainly make captivating headlines, and the fun facts become oft-repeated rhetoric, at least by our experience. But in looking deeper, we noticed that all these reports comparing Bitcoin’s mammoth electricity consumption shared a common source: The Cambridge Bitcoin Electricity Consumption Index.

Cambridge Bitcoin Electricity Consumption Index

We soon noticed that on the Cambridge page sat a section aptly titled “comparisons”. Within it lay the below quote:

“However, as indicated by the chart below, country comparisons without additional context provide only limited insight given the huge disparities between nations. The size of a country, both in geographical and population terms, does not always correlate with energy usage.

Instead, the energy profile of each country is a unique product of factors such as the energy demand of domestic industries and residents, the level of economic and social development, the stock of available energy sources, economic spending and production patterns, strategic policy actions to attract or outsource energy-intensive industries, and many more.

As a result, it should not be surprising that the energy footprint of a single large city in a developed country can match the total level of an emerging economy”.

Hence, the stats comparing energy consumption can be deceptive. An important point, and one that makes sense when you think about it. Yet none of the above articles made efforts to contextualize their reported stats.

Besides – and more importantly – what is actually the point in comparing Bitcoin to a country, in any case? Should we not be comparing to other asset classes or commodities? Would that not be more relevant?

Other Assets

By far and away, the most referenced asset in relation to Bitcoin is gold. Enthusiasts hope that one day, Bitcoin can wrestle the store-of-value title from the precious metal. Protecting holders against inflation while circumventing governmental monetary control, if Bitcoin can reduce its volatility, it can become the ultimate store-of-value, or so the story goes.

Sticking with the same researchers for consistency purposes, Cambridge outline Bitcoin’s electricity consumption as 137 TWh per year. And how much energy consumption does gold mining consume? Nearly the exact same, at 131 TWh. Looking at the gold industry as a whole (not just mining), energy consumption is even larger at 241 TWh, according to this Galaxy Digital report – close to double what Bitcoin consumes. I guess “Bitcoin consumes roughly the same amount of energy as gold mining” or something similar doesn’t capture quite as many clicks, however.

While Cambridge data use strong metrics, it’s worth mentioning that other sources are even more aggressive in quantifying the chasm to gold. The Bitcoin Mining Council has gold mining’s energy consumption over double the size of bitcoin mining (with bitcoin mining’s energy consumption roughly equivalent to holiday lights!). Most studies, however, have the output coming in lower, such as this nasdaq piece which computes gold mining’s output as 265 TWh for 2020. 

GMC does present a neat comparison to other sectors, however. We mentioned that Bitcoin mining energy consumption is similar to holiday lights, but the below data also reads that Bitcoin is dwarfed by aviation, shipping and US appliances, among others. 

The same Nasdaq piece has the banking industry’s total output at 700 TWh for 2020, although we think this is a true apples-to-orange comparison and should be taken with a pinch of salt. You simply cannot compare Bitcoin to the entire banking class at this point in time with the required degree of confidence, not to mention the difficulties in actually quantifying the energy consumption of banking – what exactly is included and to what degree can be highly subjective with a sector that large. 

Finite number of Bitcoins capped at 21 million

So far, you may be brushing off our grievances as nitpicking. Perhaps. So let’s get a little more in-depth. Because we found one thing was missing from all the above articles, as well as similar ones like them in mainstream media. And it’s one that is vitally important to the equation – it’s Bitcoin’s  supply cap and the corresponding mining schedule.

Satoshi Nakamoto designed the cryptocurrency so that there will only ever be 21 million mined. The supply schedule follows a predetermined route, with nearly 19 million already mined, corresponding to 90% of total supply. This means that, at the current price of circa $45,000, each bitcoin was mined at a much lower price than it currently trades at. If the asset continues to appreciate, this means society essentially got a discount on the mining.

Once all the bitcoins are mined (in the year 2140), miners will rely solely on fee income to sustain themselves. Therefore, fee income will grow to account for the lower mining revenue going forward. But this mining revenue is already falling, as Bitcoin is programmed for “halvings” every four years (the most recent of which was in 2020, with the next slated for early 2024).

And it is this halving point that is the vital point that can’t be overlooked when assessing Bitcoin’s energy consumption. This is because it implies that unless Bitcoin doubles in price every four years, the energy consumption by miners (i.e. their expenditure) will decrease, because their revenue is getting halved every four years. 

It’s simple economics, but in reports extrapolating Bitcoin forward, such as statements like “if Bitcoin continues at this rate, it would require X times the world’s consumption limit to replace VISA” or something of that ilk, don’t take account of this point – they completely miss it (be it intentional or via ignorance). It’s simply false.  

Miner Rewards since Bitcoin’s inception: the halvings are easy to see, coming in Jan-09, Nov-12, Jul-16 and May-20, data via IntoTheBlock

Fees

Related to this fall in mining rewards, is what happens as mining dries up and miners are forced to rely on transaction fees. Nic Carter discusses a key point regarding this in his excellent piece assessing Bitcoin’s energy consumption. He states that “fees have a natural ceiling to them, as transactors must actively pay them on a per-transaction basis. If they become too onerous, users will look elsewhere, or economize on fees with other layers that periodically settle to the base chain”.

With this point made, he continues that “thus, it’s unlikely that security spend results in the world-eating feedback loop that has been posited in the popular press. In the long term, Bitcoin’s energy consumption is a linear function of its security spend. Like any other utility, the public’s willingness to pay for block-space will determine the resources that are allocated to providing the service in question”.

It’s another major point that is simply not mentioned in a lot of the aforementioned pieces about Bitcoin’s onerous energy consumption.

Green Energy and Changes to Mining

The other glaring aspect of these headlines that tends to be omitted is Bitcoin’s movement towards green energy and continued improvement.

In May 2021, the Bitcoin Mining Council was set up to promote, encourage and report sustainable energy use by Bitcoin miners. Its Q2 report last year, for example, highlighted the portion of global Bitcoin mining energy consumed that is sustainable as 58%, higher than that of the EU at 43%, as shown on the below graph (incidentally, the EU last week voted rejected a bill proposing the banning Proof-of-Work mining).

Portion of sustainable energy of Bitcoin mining vs countries, data via Bitcoin Mining Council

Elsewhere, El Salvador’s high-profile move to adopt Bitcoin as legal tender has had a strong focus on renewable energy. Regardless of what you think of the economic consequences of adopting the nascent currency as legal tender, the Central American country is pushing forward with plans to harness geothermal energy from volcanoes to power Bitcoin mining – a move that will also help clean up Bitcoin’s carbon footprint.

Sustainable initiatives

There are numerous organizations and companies working towards lowering their environmental footprint, many even aiming to reduce this to zero. Amongst them, there are plenty in the crypto industry that have such goals. One of such examples is the cryptocurrency mining company called Stronghold Digital Mining, which is reportedly converting waste from old power plants into energy for hundreds of Bitcoin mining rigs.

In an effort to realize this idea, the crypto company collects coal waste, a leftover material from the coal mining process. The company claims to incinerate this in an emissions-controlled environment in its own power generation facilities.

The use of coal waste can cause various environmental problems. Some examples of this are water and air pollution. However, collecting this waste and disposing of it safely, while generating power for crypto mining, currently appears to be a productive way to tackle the issues.

The American state of Pennsylvania, where Stronghold Digital Mining is based, is the third-largest producer of coal in the United States. They estimate that the amount of coal wasted is about 880 pounds per 2,200 pounds mined. Converted, this equates to approximately 400 kilograms per tonne. According to Stronghold, Pennsylvania alone has more than 220 million tons of hazardous waste.

The Proof-of-Work consensus mechanism has attracted attention from different angles in recent months for its energy-intensive processes to mine and validate the network. Although the use of coal waste does not affect this energy-intensive process, it is a way to achieve cleaner energy in the short term.

In addition, other ways of making mining construction environmentally friendly are also being looked at. In Texas, for example, where Argo Blockchain has a significant mining installation, plans are underway to run solely on renewable energy. Elsewhere, earlier this month the oil drilling company ConocoPhillips started a program in North Dakota where it would sell the natural gas by-product from its operations to Bitcoin miners instead of burning it. 

Just this morning, we got further evidence of the ability of Bitcoin to go “green”. Bloomberg reported that Exxon Mobile, the largest producer of oil in the US, is considering taking a gas-to-bitcoin pilot project to four countries. The report describes how the project, which was launched in January 2021, also in North Dakota, already consumes up to 18 million cubic feet of gas per month that Exxon couldn’t otherwise monetize. 

In essence, it allows oil producers to sell the gas they discover by chance while drilling for oil. Given the lack of infrastructure nearby, such as pipelines, this energy would otherwise be wasted. 

With Exxon now considering expanding the project to Alaska, Nigeria (Qua Iboe Terminal), Germany, Guyana and Argentina (Vaca Muerta shale field), it highlights how much economic sense these initiatives make – Exxon’s profits increase, while waste is reduced. That’s what they call a win-win.

Wasted Energy

To build on this point, Bitcoin’s wider role in consuming energy that would otherwise be wasted is key. Miners are free to locate themselves anywhere, and therefore are in a unique position whereby they can exploit remote energy assets, powering their operations from otherwise wasted energy. The diagram below, from the same BMC report as above, shows just how much energy is wasted. 

This is where crypto can do good. Governments should be pushing miners towards renewable energy as much as possible (taking a leaf out of El Salvador’s book) – miners will naturally gravitate towards renewable sources if costs are reduced, thus providing a willing home for renewable projects with excess supply – in essence, killing two birds with one stone.  

This Horizon Academy report digs into this: “Overall, cryptocurrency mining is a way for renewable energy producers to temporarily utilize energy that the grid cannot transport to locations where it is needed. By mining with their excess energy, they can lower the financial risk of setting up a wind park, hydro dam or solar park. PoW might therefore pose a net positive for the global energy footprint”.

Similarly, it is a very neat way to export cheap electricity. Given the age-old problem that is electricity being so expensive to transport over long distances (as well as causing abundant waste), location independent industries which consume large amounts of power can fill this void.

The Horizon Academy report references the interesting case of Iceland, which has traditionally leveraged aluminium to use up its abundant renewable energy. ““We are based in the middle of the North Atlantic Ocean. We are not connected to the mainland Europe grid,” Bjarni Mar Gylfason, chief economist for the Federation of Icelandic Industries, famously said. “So we export energy in the form of aluminium.””

Well, why not Bitcoin mining for this?

Conclusion: What the Debate is Really Centred On

So, with some misgivings about the environmental criticisms of Bitcoin pointed out, let’s move on and wrap this up. We compared earlier the energy consumption of Bitcoin against gold. Cambridge in their studies also collated energy consumption for several more industries, which can be seen in the diagram below.

Energy consumption of various industries, via Cambridge Bitcoin Electricity Consumption Index

So, one could also write the headline “Global air conditioning consumes 16 times the amount of electricity as Bitcoin”.

Your reaction to this may be that it’s absolutely ridiculous to compare these two things, but that’s kind of our point. It’s no more ridiculous than comparing Bitcoin’s energy consumption to a country without further context.

And this brings us to our conclusion, and what we think this debate really comes down to. Is Bitcoin worth it? It rings true that most of the people lamenting the crypto’s onerous energy consumption do not believe in Bitcoin. They believe that every watt of electricity consumed by the crypto is a waste. And, to be fair, if Bitcoin is worthless, then they’re probably right – it is wasting energy.

But Bitcoin being worthless is an enormous if, and, if it wasn’t already obvious, it is a statement we wholeheartedly disagree with. But in levelling our opinion like that, haven’t we summed up the crux of the issue?  There are those who believe that Bitcoin is the most important asset since the Internet; that the existence of a decentralized, non-government-controlled currency will lead to a more democratic, fairer and transparent financial economy, and overall society. There are others who think it doesn’t make sense, and it’s simply a speculative, get-rich-quick scheme.

We simply don’t have the column space to open that can of worms here, but we think that is inherently what this debate about Bitcoin’s energy consumption comes down to.

Air conditioning is generally accepted as necessary, which is why we don’t see headlines such as “air conditioning consumes more energy than Japan, Brazil and Canada put together” (this is true, by the way). If people all believed that Bitcoin was necessary, these headlines would simply not be here.

But having said that, it still doesn’t mean that the logic used in some anti-Bitcoin environmental arguments, nor the explosive headlines written, are all factually correct.

So no, Bitcoin is in fact not boiling the oceans.

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Bitcoin touches $45k amid ‘PetroBitcoin’ sentiment

Bitcoin broke above key resistance levels to touch highs last seen in February, with the uptick buoyed by various macro factors.

Bitcoin has gained 10% this past week, climbing to its highest price level since it 24 February when it briefly traded above $45,000.

On Friday, the Bitcoin (BTC-USD) pair rallied over 4% in intraday gains to reach highs just above the $45k price point. The pair has since retreated but remains well-bid above $44,700 at the time of writing.

Do Kwon’s $3 billion BTC plan gives bulls legs

The leading cryptocurrency’s upside follows weeks of ranged trading, with relief rallied over the past month tempered by risk-off sentiment triggered around the Russia-Ukraine war and the impact of rising inflation on equities.

But according to GlobalBlock analyst Marcus Sotiriou, upside sentiment this week got legs from the hype around fresh accumulation by Terra Labs founder and CEO Do Kwon.

Kwon, who recently placed two bets worth $11 million on Terra (LUNA)’s price being higher than $90 by March next year, has unveiled a “$3 billion Bitcoin accumulation plan,”

Sotiriou points to Do Kwon and Terra’s Bitcoin reserve purchases as key to the buying pressure for BTC and Ethereum (ETH), which surged above $3,100 for the first time in weeks.

‘PetroBitcoin’ sentiment helps BTC climb to $45k

This week’s big jump above recent resistance and testing of $45,000 was also aided on Thursday by sentiment around Russia’s announcement that it would accept Bitcoin from ‘friendly’ countries for its oil and gas. These countries would also pay in their local currencies like the yuan or Turkish lira.

Besides the bullish narrative behind Bitcoin being used as a stablecoin reserve asset, there are now talks of a Petro Bitcoin instead of a Petro Dollar,” Sotiriou noted in emailed comments.

He says this has probably added a fresh narrative to BTC’s price movement. Russia’s flip towards Bitcoin for oil and gas exports is an indication of the cryptocurrency’s ‘ideological malleability.’ It’s not just about Russia, but a broader promotion of the fact that crypto is “unstoppable.”

The big question, in Sotiriou’s view, is whether PetroBitcoin is poised to replace PetroDollar. Can nations begin pricing oil in Bitcoin and not the US dollar?

Bitcoin was up by more than 30% since the sell-off to lows of $33,000 soon after Russia’s invasion of Ukraine.

BlackRock and Exxon news

BlackRock CEO Larry Fink said on Thursday that the asset manager, the world’s largest with over $10 trillion in AUM, was considering crypto services for its clients. According to Fink, demand for crypto opportunities has increased among its clients, something he said the investment giant was looking at.

Elsewhere, Texas-based gas giant Exxon is mining Bitcoin using excess gas in a move that is set to see around “18 million cubic feet of gas” utilised to mine BTC every month. The gas, which would otherwise be flared off, is thus helping with environmentally-friendly mining.

Exxon’s Bitcoin mining operation is bullish for the cryptocurrency, Sotiriou said in a comment. He believes this is likely to bring on board many institutional investors, with Bitcoin’s market capitalisation of $845 “seems so undervalued to many.”

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Oil giant Exxon to expand its gas to power crypto mining pilot program to four countries

Exxon Mobil Corporation is conducting a pilot program using the surplus natural gas from North Dakota oil wells that would otherwise be burned off to power cryptocurrency mining operations. Sources familiar with the program say that the oil giant intends to replicate the project in four other sites across the globe.

As part of the pilot program, Exxon signed an agreement with Crusoe Energy Systems Inc. to use gas from a Bakken Shale Basin oil well to power mobile generators used to run Bitcoin mining servers on-site.

The pilot program was launched in January 2021 and by July the same year had already used up to 18 million cubic feet of natural gas that would have otherwise been burned off because of the lack of enough pipelines to transport the gas.

Expanding the pilot program

Exxon is now considering undertaking similar pilot programs in Alaska, Argentina’s Vaca Muerta shale field, Qua Iboe Terminal in Nigeria, Germany, and Guyana.

One of the people privy to the information in an interview with Bloomberg said:

“We continuously evaluate emerging technologies aimed at reducing flaring volumes across our operations,” and Exxon expects to meet the World Bank’s call to end routine flaring by 2030, spokeswoman Sarah Nordin said in an email. She declined to comment on “rumors and speculations regarding the pilot project.”

Exxon’s push comes amid the increasing push to have oil and gas producers reduce their carbon footprint to help in the fight against climate change. One of the ways of reducing the carbon footprint is by reducing the amount of natural gas they burn on site.

At the same time, there is a rash by crypto miners to use the cheap gas from oil wells to power their mining operations instead of going for power from the national grids. Although when using the gas to power crypto mining still involves burning the gas and releasing carbon dioxide into the atmosphere, the energy is at least put to use compared to just burning the gas for nothing.

Last month ConocoPhilips acknowledged supplying a Bitcoin mining firm with natural gas from the Bakken shale basin in North Dakota. Shale oil produces a lot of excess gas which is mostly burned off.

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Crypto spot trading: The Best coins to consider in it

Spot trading has become one of the most common ways to buy and sell crypto. Although spot trading has its risks, it has low barriers of entry and is open to literally everyone. But you need to be very careful when choosing assets for spot trading. Here are some attributes to consider:

  • Cryptos for spot trading must have very high trading volumes

  • You also want highly volatile assets that swing fast.

  • The assets must also be available in all major centralized exchanges.

With that said, if you are thinking of dipping your toes into the world of crypto spot trading, these are some of the best coins to consider:

Bitcoin (BTC)

Bitcoin (BTC) is the biggest crypto and one of the most recognizable in the world. If you are going to spot trade, then BTC will need to be part of that calculus. The most important thing about BTC is the large daily trade volume.

This means that there is enough liquidity in the market to ensure orders to buy or sell are filled with minimum or no slippage. BTC is also spot traded in the biggest exchanges in the world and is accessible to everyone.

Bitcoin Cash (BCH)

Bitcoin Cash (BCH) was created to provide the foundations over which payment systems can be developed in the decentralized economy. It’s related to Bitcoin in a way, but it is an asset of its own. However, just like BTC, BCH has large trade volumes each day. There is also a huge market cap to deal with so chances of making returns are high.

Shiba Inu (SHIB)

Meme coins have always been great for short-term speculative trading, and there is no better meme coin out there than Shiba Inu (SHIB). The token is prone to a lot of daily volatility and trade volume as well. SHIB can also be purchased from a lot of exchanges.

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Goldman Sachs executes first over-the-counter crypto trade

Goldman’s over-the-counter crypto transaction was facilitated by Michael Novogratz’s Galaxy Digital Holdings.

Goldman Sachs is said to have completed its first over-the-counter crypto derivatives trade, the first major US bank to dive into the growing crypto options market.

The development came to light on Monday and saw the bank make the maiden OTC crypto trade featuring a type of BTC derivative that settles in cash.

According to a report by CNBC, Goldman teamed up with Galaxy Digital to successfully execute the non-deliverable Bitcoin option. 

SkyBridge Capital’s Anthony Scaramucci pointed out that Galaxy Digital also helped it handle its first OTC crypto trade.

Crypto has matured as an asset class

This is not the first time Goldman Sachs, which already allows its clients access to non-deliverable forwards and exchange-traded options. 

However, the OTC trade is the ‘first big move’ to highlight the increased interest in crypto investment products from institutional investors. It also comes as traditional finance continues to show a flip in sentiment towards digital assets.

Goldman’s Max Minton, the bank’s head of digital assets for Asia Pacific, said in a statement that the trade is an indicator that crypto as an asset class is mature. And he noted that the OTC trade marks an important milestone for the bank’s overall plans around digital assets, which he revealed to revolve around the crypto options market.

Galaxy co-President Damien Vanderwilt noted that Goldman’s Bitcoin crypto OTC trade marks the first step in major bank’s involvement, with clients set to benefit from more “direct, customisable exposures to the crypto market.”

Bitcoin and other crypto-assets continue to see greater interest after initial apathy from mainstream investors, including legacy financial institutions. 

Today, several major banks, hedge funds, endowments, family offices and sovereign wealth funds have crypto as a slice of their portfolios.

The post Goldman Sachs executes first over-the-counter crypto trade appeared first on Coin Journal.

Could this on-chain metric catapult Ethereum’s price?

As another week comes to a close in this eventful macroeconomic climate, let’s take a look at how the world of cryptocurrency looks, before we all take a breath over the weekend.

Key Points

  • Bitcoin net outflows from exchanges breach $1 billion for the week
  • Tuesday sees highest daily outflows in ETH since October
  • Moderate uptick in new and active addresses for Bitcoin

Bitcoin

Net Flows

Data via IntoTheBlock

A nice milestone for Bitcoin this week, as net outflows from exchanges breached the billion dollar mark, as displayed on above graph. One of the go-to indicators of sentiment, a net outflow from exchanges typically means accumulation, while a net inflow signals selling pressure.

Volatility

Price-wise, we “closed” last Friday at $39,200, while currently we sit at $40,700. Looking at volatility, the 30-day annualised standard deviation remained relatively stable at circa 63%. This is shown on the below graph, but if we want to translate these numbers to simple English, we can simply say that this week Bitcoin was … chill. As the world seems to be falling down around it, Bitcoin has been actually been quite well behaved. Who would have thought?

Data via IntoTheBlock

Addresses

Some moderate uptick here too, with an 11% increase in new addresses since last week. Active addresses were relatively stable (up 3%) and there was a fall of 2% in zero-balance addresses. All pointing, again, to a steady but unspectacular week for Bitcoin. If only all the weeks were like this – this must be what it feels like to hold stocks, right? Maybe next week we will get some more movement, helping to make this piece a little more entertaining! 

Data via IntoTheBlock

Ethereum

Let’s see if we can poke around with Ethereum a little and uncover any trends.

Net Flows

There was nice net volume here too, with close to a billion dollars flowing out of exchanges over the last week. This was buoyed mainly by Wednesday, which saw $448 million in net outflows. For context, in dollar terms that’s the 24th largest daily outflow volume ever – and the second largest this year. 

Data via IntoTheBlock

Precedent

The largest of 2022, you may be wondering, was January 4th. Known as “Blue Monday”, they say it’s the most depressing day of the year – the return to work after the holidays. Apparently, people settled down to their computers to withdraw their crypto gifts into their cold wallets this year. Unfortunately, Ethereum plunged 21% in the next four days – so let’s hope that’s not a signal of what’s to come here.

I’m not really sure what exactly caused such a spike this Tuesday, given the lack of activity elsewhere. Maybe, just maybe, it’s plain old coincidence, huh? Or maybe somebody was afraid they would be tempted to redeem their ETH to buy a load of Guinness ahead of St Patrick’s Day. I don’t know.

Denominated in ETH terms, however, it marks the largest daily withdrawal since last October, at close to 180,000 ETH. In Ocotober, Ethereum did the opposite to January– ramping 14% in just over a week. Although it’s important to note that at 750,000 ETH, the withdrawal last October was over 4X what we saw on Tuesday. The graph below highlights the size of this move compared to last October, as well as the price action (black line). So be careful with your conclusions.  

Data via IntoTheBlock

Closing Thoughts

So, a somewhat notable tidbit to close the week from Ethereum then. Bitcoin behaved, while the crypto markets largely followed. A nice week without too much volatility. If only they were all like this, I reckon my heart rate would be significantly lower. Then again, wouldn’t life be less fun?

Still, next time we get those ugly red candle days, I’ll look upon weeks like this with green-eyed envy. In crypto, it could always be worse. Happy Weekend !

 

The post Could this on-chain metric catapult Ethereum’s price? appeared first on Coin Journal.