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Advances to Regulate Bitcoin Market

Uruguay, Colombia Make Advances to Regulate Bitcoin Market

Senators in Uruguay and Colombia have introduced bills with the goal of creating a safer Bitcoin market in their countries.

Jose Antonio Lanz           3 min read • Aug 4, 2021

Uruguay is joining the recent wave of political initiatives to regulate the Bitcoin and cryptocurrency industry in Latin America, just as Colombia makes moves of its own to update its existing crypto framework.

Yesterday, Uruguayan businessman and Senator Juan Sartori introduced a formal draft of a bill to regulate crypto. The proposed law seeks to fill in legal loopholes related to the crypto industry with the aim of preventing crimes associated with the use of digital assets.

What’s in the Uruguay Bitcoin bill

The bill is relatively broad, which could improve its chances of moving forward, since it does not change any previously defined concepts or create the need to modify the country's current legal or administrative framework.

The proposed law essentially seeks to regulate the issuance, custody, and trading of crypto assets, leaving crypto mining, such as Bitcoin mining, in a different class of economic activity. It defines crypto assets as “digital products that use cryptographic encryption to guarantee their ownership and ensure the integrity of transactions.” By spelling it out in law, the bill aims to provide clarity to regulatory agencies when establishing rules, avoiding conflicting interpretations.

What’s more, the bill proposes three mandatory licenses for those interested in participating in the cryptocurrency industry.

The first is a license granted to those who act as intermediaries in the markets. In this case, both centralized and peer-to-peer exchanges operating in the country must be registered as such.

The second is a crypto asset custody license—that is to say, any business that safeguards the assets of its clients must have this registration. This category includes wallet providers, cryptocurrency exchanges, and banks and financial entities that would offer services to cryptocurrency users such as savings accounts, custody, and loans.

The third is a license to issue crypto-assets or tokens with financial characteristics. In this sense, ICOs and companies interested in issuing stablecoins or proprietary tokens (not unlike JP Morgan’s JPM Coin in the U.S., for example) must have a proper license before launching their token.

According to the bill, crypto mining will not require these types of special licenses, but it will require a permit granted by the Ministry of Industry. According to the Industrial Registry of the Ministry of Industry and Commerce, mining will be considered an "industrial activity"—meaning that it falls under the purview of the Ministry, and the process for obtaining a permit would remain relatively straightforward.

Colombia’s crypto bill moves forward

Meanwhile, in Colombia, Senator Mauricio Toro yesterday announced new advances to his own bill that seeks to enact crypto-friendly regulations in the country.

According to the Colombian senator, the law is fundamentally aimed at controlling the black market, guaranteeing safer transactions, and promoting alternatives to the traditional banking system.

To accomplish this, the bill establishes a series of requirements for national and foreign exchanges seeking to operate in the country, requiring them to register with Colombian authorities. In addition, companies must clearly state their corporate purpose as crypto-asset exchange services to consumers and provide risk disclosures regarding the irreversibility of crypto transactions, should the bill become law.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

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Original article posted on the Decrypt.co site, by Jose Antonio Lanz.

Article re-posted on Markethive by Jeffrey Sloe

Visit MarketHive to learn more: http://markethive.com/jeffreysloe

PayPal Expanding Crypto Team

PayPal Is Expanding Crypto Team, Hiring 100+ Crypto Positions Globally

By Taylor Scott – August 3, 2021 in Cryptocurrency News Reading Time: 3 min read

Payments behemoth PayPal is expanding their crypto personnel. The company is reportedly hiring over 100 crypto-related employees as consumer crypto demand continues to grow. Over the past week, PayPal has been in continued conversations around growing it’s crypto services.

A Lot Of Shoes To Fill

While a majority of the job listings are in the U.S., there are a variety of positions across the globe – including five listings in Tel Aviv, seven in Guatemala City, and six between Dublin and Dundalk. Stateside, over twenty listings are in California, with another fourteen in New York and a dozen in Austin, TX. There’s a variety of positions in other U.S. cities as well.

Roles run the gambit, as well. Positions include anything from Enterprise Risk Managers and Operations Managers, to Legal Directors and Engineers – both on web and mobile. A number of the roles are for PayPal’s online money transfer service, Xoom, and for mobile payments app Venmo.


PayPal looks to continue investment in building it's crypto infrastructure, now bringing on a substantial amount of new team members across the globe. | Source: NYSE: PYPL on TradingView.com

Related Reading | On-Chain Expert Predicts $162K Bitcoin Peak This Cycle

Crypto “Super App” & More From PayPal

Crypto development and expansion for PayPal seem to be on the up and up. During the company’s second-quarter earnings call, CEO Dan Schulman stated that “the initial version of our new new consumer wallet super app is code complete and we are now beginning to slowly ramp.” Schulman added that features will likely include “high-yield savings, early access to direct deposit funds, new and improved bill pay functionality, messaging capabilities outside of P2P to enable family and friend communications” and more.

Crypto expansion is clearly in full swing. Another note from Schulman on the recent earnings call was that crypto services in the U.K. could be unrolled as early as later this month.

Last month, the firm also removed their annual purchase limit on crypto, and raised their weekly limit to $100K. The bumps were substantial previous weekly limit was $20K, and previous annual limit was $50K. These moves look to be the start of more aggressive maneuvers for PayPal in crypto. “We’re right in the middle of some open banking integration,” Schulman noted on the earnings call, which would “increase the ability to fully integrate it into ACH and do faster payments.”

The new crypto job listings come right on the cusp of PayPal competitor Square releasing strong year-over-year growth in bitcoin revenue and profits.

PayPal crypto launched in October 2020. Shortly after launch, U.S. customers were able to buy, sell and store Bitcoin, Litecoin, Ethereum, and Bitcoin Cash. Could more global access be on the horizon for PayPal customers?

Related Reading | “The Death Of China’s Bitcoin Mining Industry,” 7 Takeaways From The Article

Featured image from Pixabay, Charts from TradingView.com

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The original article was written by Taylor Scott and posted on NewsBTC.com.

Article reposted on Markethive by Jeffrey Sloe

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This Could Send Bitcoin On A Tear

Trend Line Touch Could Send Bitcoin On A Tear

By Hououin Kyouma – August 3, 2021 in Bitcoin Reading Time: 3 min read

Popular Bitcoin model Stock-to-Flow (S2F) shows BTC has touched a trend line that has historically sent the crypto flying.

Bitcoin Touches S2F Deflection Trend Line

As pointed out by a crypto analyst on Twitter, BTC seems to have just touched a lower S2F deflection trend line.

The S2F or Stock-to-flow Bitcoin model helps in predicting the price of BTC. The method has proved to be remarkably accurate so far, besides a few points of deviation.

S2F model is based on the ratio between the stock (supply) and the flow (annual production). The model can be applied to any asset, not just BTC. A higher value of the indicator means the commodity is more scarce.

Here is how the latest S2F chart for Bitcoin looks like:


The BTC S2F chart seems have a negative deflection at the moment | Source: buybitcoinworldwide.com

As the graph shows, despite some deflections during certain periods, the model still seems to be close. Currently, the chart shows a negative deflection.

Now, there is another, related indicator of relevance here. The Stock-to-Flow deflection. This metric highlights whether an asset is undervalued or otherwise in terms of its S2F value.

Related Reading | On-Chain Expert Predicts $162K Bitcoin Peak This Cycle

The BTC S2F deflection is calculated by taking the ratio between the current price and the S2F value. When the ratio is more than 1, it means BTC is overvalued, while if it’s less than 1, the crypto is said to be undervalued.

Below is a chart that shows the current trend in the BTC S2F deflection value:


The BTC S2F deflection ratio is much less than 1 right now | Source: glassnode

As the graph shows, there is a trend line that Bitcoin has touched in the past, soon after which the price has jumped up.

It seems like the crypto has once again made a touch on this line, and if past pattern follows, the price might move up.

BTC Price

At the time of writing, Bitcoin’s price is around $38k, up 2% in the last 7 days. Over the past month, the coin has accumulated 8% in gains.

Here is a chart showing the trend in the value of the cryptocurrency over the last 6 months:


BTC seems to be once again moving downwards | Source: BTCUSD on TradingView

After a relieving period of sharp uptrend where Bitcoin reached $42k, the coin is once again falling down. As the S2F deflection trend line shows, it’s possible the price might shoot back up. However, that’s only given the pattern indeed holds.

Related Reading | “The Death Of China’s Bitcoin Mining Industry,” 7 Takeaways From The Article

Also, something to note here is that even if the pattern holds, the price might not immediately go up. As the S2F deflection chart shows, BTC touched the trend line twice in 2017 before shooting back up.

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The original article was written by Hououin Kyouma and posted on NewsBTC.com.

Article reposted on Markethive by Jeffrey Sloe

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MicroStrategy Secures 14B In Bitcoin Gains

MicroStrategy Secures A Whopping $1.4 Billion In Bitcoin Gains – Not Dumping Anytime Soon

By Adrian Klent – July 31, 2021

A strong advocate for Bitcoin, Michael Saylor, has restated his bullish stance on the cryptocurrency calling it an open-digital property network, an international trust network as well as the only asset his company, MicroStrategy, needs to have a diversified investment for the long term.

Speaking to Bloomberg TV, the CEO of the first publicly-traded company to have Bitcoin on its balance sheet stated that the company is leveraged long on Bitcoin, with a 10-year view based on the fact that they envision a time when billions of people will catch on to the benefits of the network; they are working patiently to get there before the billions of users do.

He also points out that MicroStrategy is unique in the way it has put together its leverage with debt. The company made around $1.4 billion in profit on paper as it has not sold or plan to sell its BTC holdings soon. The company acquired its Bitcoins with both operating income and debt of $2.2 billion at a blended interest rate of around 1.5% interest. Saylor, pitching to win potential investors over for the company, said “if you like Bitcoin, then you’d like the idea of owning $2.2 billion in Bitcoin if it is at 1.5% of interest.”


BTCUSD Chart By TradingView (Click image for larger view)

Saylor, who has been unwaveringly bullish for Bitcoin, even amid the bear market, stated that his company envisions “Bitcoin on the balance sheets of cities, states, governments, companies, small investors, big investors…” adding “ultimately, we think Bitcoin is going to be the core to big-tech innovation at Apple, Amazon, and Facebook.”

Explaining further Saylor said that while the equity market was closed on weekends, the Bitcoin network never goes offline twenty-four hours a day, 365 days a year. This feature is already yielding benefits for platforms such as Square, PayPal, and Robinhood.

In much the same way as he has given publicity to Bitcoin in the past, Saylor further said that Bitcoin will solve issues in big-tech and social media companies as the network being trustless would help companies improve user experience online by eliminating spam and improving cybersecurity.

To clear all doubts, MicroStrategy is not relenting in its Bitcoin stance as the CEO also revealed that in the future the company still had plans to purchase more Bitcoin. Though it was still uncertain how it would fund the purchase, the company’s shareholders will decide if the move will be financed by cash flow, debt, or equity when the market conditions are right.

MicroStrategy currently holds over 105,000 Bitcoins on its balance sheet. The company does not consider any other cryptocurrencies and has been instrumental in reassuring the public to hold on to their positions.

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DISCLAIMER: None Of The Information You Read On ZyCrypto Should Be Regarded As Investment Advice. Cryptocurrencies Are Highly Volatile, Conduct Your Own Research Before Making Any Investment Decisions.

The original article written by Adrian Klent and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

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Greener Bitcoin Mining?

Is Bitcoin Mining Finally Getting Greener?

Calls for Bitcoin mining to get more environmentally friendly have grown louder. There are signs of progress—which is what Elon Musk is looking to hear.

Mason Marcobello          6 min read • Jul 30, 2021

Bitcoin mining uses a method called Proof of Work (PoW), and it’s been no stranger to criticism from regulators and environmentalists. Their main contention is over the increasingly large amount of energy (computational power) PoW demands. That energy use has risen along with Bitcoin’s price, since more lucrative miner incentives lead to more mining activity, which means more machines using more electricity.

Last week’s “B-Word” virtual event with Tesla CEO Elon Musk, Square CEO Jack Dorsey, and Ark Invest’s Cathie Wood felt like a culmination of sorts in the ongoing conversation around Bitcoin mining, especially since Musk stunned Bitcoiners in May when he abruptly announced Tesla would stop accepting Bitcoin as payment due to environmental concerns. He has since said that Tesla would be willing to reembrace Bitcoin if and when at least 50% of global Bitcoin mining uses renewable energy.

There’s been some progress on that front.

According to Cambridge University, the Bitcoin network currently consumes about 74 terawatt hours (TWh) of energy per year (TWh is a unit of measurement equivalent to one trillion watts per hour, and is used to measure the energy consumption of entire countries). That’s slightly higher than the annual energy use of countries like Colombia (70.2 TWh per year) and Bangladesh (70.6 TWh).

While that might sound alarmingly high, Bitcoin’s defenders point out that comparing the energy use of an entire global payment rails to the energy use of one country is not very instructive, and that there aren’t many useful apples-to-apples comparisons to draw with Bitcoin’s energy usage.

Importantly, Cambridge reported in September 2020 (its most recently available figure) that only 39% of Bitcoin’s current energy consumption is based on renewable energy. So, if we convert the 61% of Bitcoin’s non-renewable energy consumption—45 TWh—to its greenhouse gas equivalent, we know that the network’s carbon footprint is equivalent to about 35 billion pounds of burned coal.

About four months ago—well before China cracked down on Bitcoin mining—the network’s carbon footprint was equivalent to nearly double that amount of burned coal—61 billion pounds. In other words, Bitcoin’s carbon footprint has been cut nearly in half over the past four months, though this has coincided with a price drop.

Of course, there are other estimates when it comes to Bitcoin’s share of renewable energy. The Bitcoin Mining Council—which doesn’t require its members to submit their energy consumption data upon joining—released a report in July that found the sustainable electricity mix of the global Bitcoin mining industry crossed 56% in Q2 2021, up from 36.8% in the previous quarter. Because this survey was voluntary, questions were raised about how reliable its findings were.

Musk acknowledged at the B-Word event, "There appears to be a positive trend in the energy usage of Bitcoin,” but ultimately reiterated his conditions outlined in a June tweet. He went on to say that, “as long as there’s a conscious and determined effort by the mining community to move towards renewables, then Tesla will support that.”

Wood, for her part, said at the event, “I really do believe that Bitcoin will be much more environmentally friendly, certainly, than traditional gold mining or the traditional financial services sector. In many ways it already is.” (In April, ARK Invest and Square released a collaborative paper that advocated for Bitcoin as the key to a clean energy future, but critics have not found that report very convincing.)

Tesla’s preconditions to accept Bitcoin payments could prove to be an inevitability in mining, since it is hardly just Tesla asking for them.

Cambridge's mining map shows that in the wake of China’s massive crackdown, a considerable segment of the mining industry has already moved towards cleaner energy sources. And although alternative, greener solutions like stranded energy—the energy left behind after a fuel is used like wasted coal—are nothing new, North America now accounts for almost 17% of all Bitcoin mining, according to Cambridge in April. (And Compass Mining CEO Whit Gibbs claims 50% of North American mining comes from renewables, though it's unclear how he arrives at that figure, and a mining CEO has obvious inclination to say mining is getting greener.)

But in an industry where miners stay competitive by sourcing the most cost-effective energy solutions, the long-term focus to further accelerate environmentally conscious efforts while reaping the most profit may present itself in stranded renewables.

In an interview with CNBC, Mike Colyer, CEO of crypto mining company Foundry, confirmed Beijing’s heavy-handed approach to force miners into friendlier jurisdictions with cleaner, cost-efficient resources has been a big plus for Bitcoin. “Miners around the world are looking for stranded power that is renewable,” Colyer said. “That will always be your lowest cost. Net-net this will be a big win for Bitcoin’s carbon footprint.”

One of the many companies leveraging this greener rollout with stranded renewables is Canadian company Blockstream.

As evidenced by a steady proliferation of initiatives in the green energy sector—like its $5 million investment from Square to build a solar-powered Bitcoin mining facility, and its partnership with Seetee (a new subsidiary of Aker)—Blockstream is pushing for Bitcoin mining that utilizes renewable energy like solar, wind, and hydroelectric power otherwise trapped in remote locations where there is little demand for the energy.

Although regions like North America are experiencing an influx of mining companies, until the world verifies where most miners set up shop following the departure from China, questions remain around the practical utility of stranded renewables for Bitcoin mining at scale. But the progress already made is encouraging.

As Dorsey asked during the B-Word event, “being able to get that energy and convert it into a secure, sound money system for the planet feels like a worthy trade-off and feels like the most powerful incentive. But how do we reuse what is currently being dumped on the ground, wasted, and considered, and how do we do that at scale? That’s a bigger conversation that’s missing.”

SPONSORED POST BY SAIDLER & CO. THIS SPONSORED ARTICLE WAS CREATED BY DECRYPT STUDIO. LEARN MORE ABOUT PARTNERING WITH DECRYPT STUDIO.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

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Original article posted on the Decrypt.co site, by Mason Marcobello.

Article re-posted on Markethive by Jeffrey Sloe

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Bitcoin Chases 42K

Bitcoin Chases $42,000 in Weekend Rally

Bitcoin's latest rally has pushed the global market up by about 5%.

Decrypt Staff           2 min read • Jul 30, 2021

Bitcoin’s price has flown past $40,000 to highs of just under $42,000, according to data from metrics site CoinGecko.

The largest and oldest cryptocurrency, which has a market cap of $781 billion at its current price of $41,629, shot above $40,000 on Friday evening. Bitcoin hadn’t surpassed $40,000 since mid-June.

In a single burst, Bitcoin rose from $39,109 at 8pm UTC to $41,780 at 11pm UTC on Friday. The rise, which brought along the rest of the market in tow, nudged the total market capitalization of cryptocurrencies up by 5.2%, to $1.67 trillion.

Coinciding with the boom is a strong week for the U.S. economy. Several major tech companies, including Facebook, Amazon, Apple and Google, posted bountiful profits.

The spike also occurred shortly after $1.5 billion in Bitcoin options contracts expired on unregulated derivatives exchange Deribit. This allowed traders to buy up Bitcoin at a discounted rate to get a headstart on the latest rally. It also coincided with the surfacing of reports that GoldenTree, a U.S. hedge fund with $45 billion in assets under management, had invested in Bitcoin.

The rise to just under $40,000 happened last week after a report from City A.M. that Amazon would "definitely" accept cryptocurrencies this year and would launch its own coin. Amazon has since denied the rumors, which City A.M. attributes to an Amazon insider, but that didn’t stop the market from rising.

Ethereum joined Bitcoin in its weekend success. The second-largest cryptocurrency by market cap rose 4.8% to $2,458. This is Ethereum’s highest price since the middle of June.

The latest rise precedes the London Hard Fork by a couple of days. Launching on August 4, the London Hard Fork will burn fees instead of paying them to miners, incentivizing developers to hasten the move to Ethereum 2.0.

Bitcoin Cash ABC, a fork of Bitcoin Cash (a fork of Bitcoin) rose by 31% in the past 24 hours to $51.62.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

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Original article posted on the Decrypt.co site, by the Decrypt Staff.

Article re-posted on Markethive by Jeffrey Sloe

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Binance Reduces Daily Withdrawals to 006 BTC

Binance Reduces Daily Withdrawals for Unverified Accounts to 0.06 BTC

JOHN P. NJUI   •   BINANCE (BNB) NEWS   •   JULY 27, 2021

  • Binance has reduced daily withdrawal limits for unverified accounts from 2 BTC to 0.06 BTC
  • Binance has also reduced leverage on new futures accounts to 20x
  • There is also a new tax reporting tool on Binance for users who are obligated to report their capital gains
  • The exchange has implemented the new changes as it works towards complying with regulators globally

The popular crypto exchange of Binance has lowered the daily withdrawal limits for accounts that are not fully verified, from 2 BTC to 0.06 BTC.

The team at the exchange made the announcement of the new changes earlier today further explaining that they will take effect immediately for new accounts, and be implemented gradually for existing ones.

Existing users who have not verified their accounts will see their daily withdrawal limits adjusted to 0.06 BTC starting ‘ from 2021-08-04 00:00 AM (UTC) and completed by 2021-08-23 00:00 AM (UTC).’ Furthermore, verification was encouraged by the team at Binance for it would increase the daily withdrawal limits to 100 Bitcoin.

Leverage on Binance Futures Reduced to 20x For New Users

Hours ago, the exchange had also announced new limits on the amount of leverage available for new futures accounts. According to the official announcement, futures accounts that are less than 60 days old will have a maximum leverage limit of 20x.

Existing accounts that fall under this category will see their leverage reduce effective immediately. Existing trading positions will maintain their leverage until closed after which leverage will drop to 20x.

The leverage limits for new accounts will begin to increase gradually after 60 days.

Binance Introduces a New Tax Reporting Tool

Also today, Binance announced the launch of a new tax reporting tool that will assist traders in declaring capital gains or losses to their respective regulatory bodies. The new tax reporting tool is available via the ‘Account > API Management‘ feature on both the Binance website and mobile application.

Binance Implements Changes to Adhere to Various Regulatory Bodies

The aforementioned changes at Binance come in the wake of the exchange being pressured by various global regulatory bodies, to abide by existing rules in the various jurisdictions. Chances are, that Binance will continue to add new changes and policies in the days to follow.

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Original article posted on the EthereumWorldNews.com site, by John P. Njui.

Article re-posted on Markethive by Jeffrey Sloe

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Binance Smart Chain Growth

Binance Smart Chain Daily Transaction Count Grows by 92% in One Month

JOHN P. NJUI   •   BINANCE (BNB) NEWS   •   JULY 23, 2021

  • The daily transaction count on the Binance Smart Chain has increased by 92% in one month
  • Active daily addresses on the Binance Smart Chain have increased by 33% in the same time period
  • Dapps on the Binance Smart Chain are growing with games and play-to-earn applications leading the rest in unique wallet interactions
  • 4 of the top 5 games on the Binance Smart Chain have seen remarkable growth in unique active users

Daily transactions on the Binance Smart Chain have grown by 92% in the last month. The daily transaction count on the Binance Smart Chain currently stands at 6.043 million up from the June 26th lows of 3.150 million. The chart below, courtesy of BSCScan.com further demonstrates the resurgence in daily transaction activity on the Binance Smart Chain.

During the same time period, the number of daily active addresses on the Binance Smart Chain has also increased by 33%. At the time of writing, there are roughly 630k daily active addresses on the Binance Smart Chain compared to 474k on June 26th. The chart below, courtesy of BSCScan.com provides a visual cue of a resurgence in the daily address activity on the Binance Smart Chain.

Gaming and Play-to-Earn Dapps have Grown on the Binance Smart Chain

The growth in address activity on the Binance Smart Chain has also been observed by the team at DappRadar who pointed out that four of the top 5 games on the BSC have seen a remarkable increment in unique active wallets.

According to their analysis, games on the Binance Smart Chain are becoming particularly popular as explained in the following statement and accompanying screenshot of data highlighting the Dapps with the most user activity.

Games on Binance Smart Chain, often offering a play-to-earn or financial incentive, are becoming increasingly popular. CryptoBlades, My Defi Pet, Mobox and DungeonSwap have all seen their user base increase over the past 7 days.

Binance Smart Chain is Becoming a Big Development Ground

In their concluding remarks, the team at DappRadar stated that Binance Smart Chain is ‘actively becoming a big development ground’ as more usres and developers turn to blockchain-based games due to their play-to-earn mechanics. As a result, the current growth of games and play-to-earn Dapps on the BSC is a sign of bigger things to come.

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Original article posted on the EthereumWorldNews.com site, by John P. Njui.

Article re-posted on Markethive by Jeffrey Sloe

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Bitcoin price bottomed at 29500?

3 reasons why traders think Bitcoin price bottomed at $29,500

Bitcoin’s bounce above $32,000 boosted the mood among traders who believe the bottom is in, but some analysts caution that heavy resistance blocks the road to new highs.


Image courtesy of CoinTelegraph

            JULY 22, 2021

Traders are showing a renewed sense of hope after Bitcoin (BTC) price held onto the $32,000 range for what could be the second day in a row.

Data from Cointelegraph Markets Pro and TradingView shows that bulls have managed to regroup at the $32,000 level where Bitcoin has hovered throughout the day but traders a patiently waiting for further confirmation that Bitcoin may be in the midst of a trend reversal before fully re-entering the market.


BTC/USDT 1-day chart. Source: TradingView (Click image for larger view)

Here's what analysts and investors expect next from Bitcoin price.

CME futures see a bullish surge

According to a recent report from Delphi Digital, an aggressive reversal was observed in the CME futures basis on July 21, and this is a bullish sign for BTC traders who scooped up 'cheap' futures contracts. The resulting contango is interpreted as bullish because the futures price is above the spot price of the asset.


Bitcoin 1-month futures basis. Source: Delphi Digital (Click image for larger view)

As seen on the chart above, the open interest for CME’s Bitcoin futures doubled from $1.25 billion on July 19 to $2.5 billion on July 20 after institutions positioned themselves “slightly net long after an extended period of being short.”

While leveraged funds remain net shot as they utilize CME futures to hedge their spot exposure, Delphi Digital indicated that they have probably “closed out some amount of their positions.

Delphi Digital said:

“Overall, CME’s fresh futures contract creation is a slightly bullish narrative, considering BTC had a mini pump to reclaim its range a few hours after the New York session ended. As noted above, futures basis on CME hit negative levels yesterday before posting a sizeable reversal. All the data points to people buying up futures contracts as BTC spiked below the price range it’s sat in for months now.”

Multiple zones of resistance remain in Bitcoin's path

Bitcoin’s recovery above $32,000 reignited the bullish optimism for many traders but the road ahead is by no means a walk in the park due to the multiple zones of resistance that lay overhead.

According to pseudonymous crypto Twitter analyst Rekt Capital, many of the previous support levels for Bitcoin, including $35,000 and $37,000, could soon act as resistance.

At the time of writing, Bitcoin price is in the process of attempting a sustained breakout above $32,200 where the price has been stuck for most of the day.

Exchange inflows historically spike near market bottoms

Another sign of bullishness came from pseudonymous Twitter user IzzyEibani, who highlighted the recent spike in exchange inflows as a possible sign that the bottom is in.

A closer look at the chart shows that there have been three instances in the past on Aug. 1, 2017, Nov. 30, 2018 and March 12, 2020, where inflows to exchanges spiked in a manner similar to what was seen on July 16. Each time the market bottomed within a short time period following the inflows.


Bitcoin price vs. exchange inflows. Source: CryptoQuant (Click image for larger view)

If the market unfolds in a similar fashion to the historical pattern, there is a strong possibility that the recent drop to $29,500 may have been the bottom.

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.

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Original article posted on the CoinTelegraph.com site, by Jordan Finneseth.

Article re-posted on Markethive by Jeffrey Sloe

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Bitcoin Traders Watching 32K Level

Bitcoin traders watch $32K ahead of Friday's $330M BTC options expiry

Bulls managed to find some momentum, but holding the $32,000 support level will determine who is the victor of Friday's $330 million BTC options expiry.


Image courtesy of CoinTelegraph

            JULY 22, 2021

This Friday's weekly Bitcoin (BTC) options expiry currently holds a $330 million open interest. Considering the recent struggle to regain the $32,000 support, this event is an important test of bulls' willingness to display reversion signs.

On July 21, Alameda Research announced that the company made Bitcoin purchases below $30,000, and Sam Trabucco, the firm's quantitative trader, mentioned that the narrative for BTC could turn bullish because of the ongoing fear, uncertainty and doubt (FUD) caused by the China BTC mining ban, Grayscale GBTC unlock and recovery in stock markets.


BTC/USD price at Coinbase. Source: TradingView (Click image for larger view)

The chart above shows that the current downtrend channel, initiated three weeks ago, might be invalidated if the price breaks the $32,200 resistance. The move seems to have been sparked by Elon Musk's statement that his firm SpaceX also holds Bitcoin.

During the July 21 meet-up with Cathie Wood and Jack Dorsey, Musk said that despite the rumors, he completely opposes recent speculations that Tesla has been selling some of its Bitcoin position.

It is worth noting that the rumors had some backing only because Musk gave conflicting signals on social networks. Moreover, Tesla had previously sold 10% of its Bitcoin holdings in the previous month.

The $32,000 support is crucial for bulls

Friday's options expiry might be the first strength test of this recent bounce. If bulls want to set $32,000 as a support level, there's no better way than causing the most damage possible to the neutral-to-bearish put (sell) options.


Bitcoin aggregate options for July 23. Source: Bybt (Click image for larger view)

The first signal that bears have been trying to dominate is the put-to-call ratio. The 0.81 reading reflects a smaller amount of neutral-to-bullish call (buy) options for the July 23 expiry.

However, bears might have set themselves a trap because 96% of the put options used $32,000 or lower strike prices. If Bitcoin manages to stay above that level at 8:00 AM UTC on Friday, only $8 million put options will take part in the expiry.

Related: Bitcoin price hits $32K but derivatives metrics still show signs of weakness

On the other hand, there is $29 million worth of call options up to the $32,000 strike price. This $21 million difference favors bulls. Albeit small, it is completely opposite from an expiry below $32,000.

If $32,000 fails to hold, bears will have a $9 million lead because only 9% of the call options have been placed at $31,000 or lower.

Neither outcome is of extreme significance, but the profits could be used for the larger upcoming monthly options expiry on July 30. This is the primary reason why bulls need to hold their ground to keep the current momentum.

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

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Original article posted on the CoinTelegraph.com site, by Marcel Pechman.

Article re-posted on Markethive by Jeffrey Sloe

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