Bitcoin’s futures market is showcasing signs that have historically signalled bullish sentiment. Analysts are turning their attention to the Bitcoin futures basis—a metric representing the differential between the futures price of Bitcoin and its spot price. Recent data has revealed that this basis has escalated to unprecedented levels since Bitcoin’s all-time high of $69,000 in November 2021. Related Reading: Bitcoin’s 2024 Forecast: Analyst Predicts $60,000 Surge Before Halving And New ATH By Q4 Bullish Indications From Bitcoin Futures Deribit’s Chief Commercial Officer, Luuk Strijers, has highlighted the current state of the Bitcoin futures basis, which ranges between 18% to 25% annually, a rate reminiscent of the market conditions in 2021. According to Strijers’s comment, this elevated basis is not just a number but a lucrative opportunity for derivatives traders. By engaging in trades that involve buying Bitcoin in the spot market and simultaneously selling futures contracts at a premium, traders can secure a “dollar gain” that will materialize at the contract’s expiry, irrespective of Bitcoin’s price volatility. Strijers further noted that this strategy is particularly appealing in the current climate, fueled by the influx of new investments following the approval of Bitcoin ETFs and anticipation surrounding the Bitcoin halving event. The significance of the heightened futures basis extends beyond the mechanics of derivatives trading. It further reflects broader market optimism, “bolstered” by recent regulatory approvals and macroeconomic factors influencing cryptocurrency. The disparity between Bitcoin’s spot and futures prices suggests a confident market outlook, propelled by the anticipation of continued investment inflows and the impact of the upcoming Bitcoin halving. Such conditions create a fertile ground for Bitcoin’s value to surge, as historical precedents have often linked bullish futures basis rates with periods of substantial price appreciation. Market Sentiment And Halving Cycles While Bitcoin’s current market performance exhibits a bearish trajectory, with a 3.9% dip bringing its price to $68,203, market analysts advise against interpreting this as a negative signal. Rekt Capital, a respected figure in crypto analysis, views the recent price correction as a “positive adjustment” preceding the much-anticipated Bitcoin halving in April. Halving events, which reduce the block reward for miners, thus slowing the rate of new Bitcoin entering circulation, have traditionally catalyzed significant price rallies due to the resulting supply constraints. Rekt Capital’s analysis parallels current market movements and historical patterns observed in previous halving cycles. Related Reading: The $69,000 Bitcoin Question: Expert Forecasts When Price Will Breakout According to the analyst, despite the swift pace of these cycles, they exhibit a consistent sequence of a pre-halving rally followed by a retracement phase—both of which align with Bitcoin’s current trajectory. This cyclical perspective suggests that the recent dip is merely a temporary setback, setting the stage for the next bullish phase post-halving. #BTC Though there are signs of BTC experiencing an Accelerated Cycle… History still continues to repeat, nonetheless$BTC broke out into a “Pre-Halving Rally” right on schedule And now, #Bitcoin is transitioning into its “Pre-Halving Retrace” right on schedule#Crypto https://t.co/Egqxs9ritl pic.twitter.com/lj0IdQtBEE — Rekt Capital (@rektcapital) March 15, 2024 Featured image from Unsplash, Chart from TradingView
MicroStrategy could raise as much as $600 million from its latest convertible debt offering to purchase more Bitcoin. However, JPMorgan analysts have reportedly cautioned that the firm’s reliance on debt to purchase Bitcoin could exacerbate a market downturn. The firm, led by BTC advocate Michael Saylor, has acquired over 15,000 BTC worth nearly $1 billion […]
The post Analysts warn MicroStrategy’s plan to fuel Bitcoin buys with debt could backfire appeared first on CryptoSlate.
The XRP community is celebrating a recent development that could have significant implications for the cryptocurrency’s future. The European Corporate Governance Institute (ECGI), a highly respected European think tank focused on corporate governance, published a research paper acknowledging XRP’s status as a utility token, distinct from securities. This recognition comes amidst an ongoing legal battle […]
The chances of approval for the pending spot Ethereum exchange-traded fund (ETF) applications this May are strained as two US Senators urged the Securities and Exchange Commission (SEC) to reject other crypto ETF proposals. In the March 11 letter to SEC Chair Gary Gensler, Senators Jack Reed and Laphonza Butler advised the financial regulator to […]
The post US senators push SEC to reject other crypto ETF proposals, casting doubt on Ethereum ETF approval chances appeared first on CryptoSlate.
Bitcoin experienced a heavy price correction during Asian trading hours, dipping to a multi-week low of under $66,000, which resulted in significant losses for traders betting on further price increases. Over the past weeks, the flagship digital asset, fueled by the buzz surrounding the spot Bitcoin exchange-traded funds (ETFs), had been on an upward trend […]
The post Bitcoin’s sudden price correction wipes out over $666 million from long traders in 24 hours appeared first on CryptoSlate.
The winds of change are blowing through the Bitcoin landscape. On March 14th, 2024, the network witnessed a monumental shift – mining difficulty skyrocketed to a record-breaking 84 trillion hashes. This unprecedented challenge coincides with another significant event on the horizon: the Bitcoin halving slated for April. Related Reading: Euphoria Or False Dawn? Why The Ethereum $4,000 Party Might End Soon According to BTC.com, the rate has risen by nearly 5.80% since the previous modification. The mining hashrate for the original coin has also peaked, indicating that more people are now participating in the mining process. At present, the value stands at 617 EH/s. Source: BTC.com Bitcoin Mining: The Difficulty Dilemma Mining Bitcoin is no easy feat. Miners compete to solve complex cryptographic puzzles, and the difficulty of these puzzles adjusts based on the overall network hash rate. As more miners join the network, the difficulty increases to ensure a steady block production rate (roughly 1 block every 10 minutes). This recent surge in difficulty signifies an influx of new miners, likely drawn by Bitcoin’s recent price rally that saw it peak at a staggering $73,800 on the same day. The Halving Effect The upcoming halving event in April throws another variable into the equation. Every four years, the block reward for miners – the amount of Bitcoin earned for successfully mining a block – is cut in half. This economic policy is a cornerstone of Bitcoin’s design, aiming to control inflation and maintain scarcity over time. The last halving in May 2020 witnessed a significant price increase in the following months, and many analysts believe the upcoming halving will follow suit. BTCUSD weakens today and trades at $68,178: TradingView.com Here’s the logic: with the supply of new Bitcoins being halved, the existing ones become relatively more scarce, potentially driving the price up due to increased demand. A Balancing Act For Miners Despite the rising difficulty, the potential for Bitcoin’s price to appreciate after the halving could incentivize miners to weather the storm. This economic incentive is bolstered by the recent spike in mining rewards, which reached nearly $79 million This suggests that even with the increased difficulty, miners are still reaping substantial profits due to the high Bitcoin price. However, the long-term sustainability of this model is debatable. As difficulty continues to climb, the energy consumption required for mining will also rise. It raises concerns about the environmental impact of Bitcoin mining, especially considering the reliance on non-renewable energy sources in some regions. Related Reading: Number Of Ethereum Short-Term Holders Increasing – Is A Bull Rally Next? Beyond The Headlines The narrative surrounding Bitcoin’s recent surge often focuses on its price and the upcoming halving. However, there are crucial underlying factors to consider. The ever-increasing mining difficulty raises questions about the long-term viability of proof-of-work, Bitcoin’s current consensus mechanism. Alternative, more energy-efficient mechanisms are being explored, but their widespread adoption remains uncertain. Featured image from Unsplash, chart from TradingView
Despite XRP lagging in this early stage of this bull run, crypto expert Zach Rector has shared his belief and given reasons why the crypto token is still bound to perform well. He went as far as ranking the token up there with Bitcoin to drive home his point on why the token will make a run soon enough. “XRP Will Not Miss This Bull Run” Rector mentioned in an X (formerly Twitter) post that XRP will not miss this bull run. In the accompanying video, the crypto expert highlighted the crypto token’s fundamentals as one of the reasons he holds this belief despite XRP’s tepid price action. Rector further claimed that the token and XRP Ledger (XRPL) have some of the best fundamentals in the crypto space. Related Reading: Dogecoin Influencer Sounds Critical Warning Alarm For Scams Targeting The Community Rector even challenged his followers to mention any other crypto token with a better fundamental than XRP. According to him, Bitcoin is the only other token that comes close to XRP in that regard. His statement echoes the sentiments of Ripple’s CEO Brad Garlinhouse, who recently stated the importance of real-world utility in driving a crypto’s growth. Meanwhile, Rector alluded to XRP’s recent pump as a sign of the great things to come for the crypto token. On March 11, XRP climbed to as high as $0.74 before seeing a sharp correction. However, the community will hope Rector’s conviction is correct, considering that XRP didn’t make any significant statement in the 2021 bull run. As Rector noted, community members’ faith in the token is fast waning, and there is a belief that a repeat of the altcoin’s sluggish 2021 run will ultimately erode this faith. XRP getting close to or surpassing its all-time high (ATH) of $3 will be a great place to start if it is to make a run in this bull run. Time For Price Predictions To Come True Crypto analysts like Crypto Rover and Egrag Crypto had before now made bullish price predictions for XRP, which are meant to be actualized sometime around this period. On his part, Crypto Rover predicted that the altcoin would see a “massive breakout” this March. Meanwhile, Egrag predicted that XRP will rise to $5 between now and April. Related Reading: Samson Mow Gives Reasons Why Bitcoin Price Could Reach $1 Million This Year Other analysts like Dark Defender have also fuelled expectations for XRP this period. Dark Defender, in particular, recently stated that the next target for toke is the $1.33 price mark and that the $1.88 and $5.85 Fibonacci targets could be attained in the upcoming weeks. At the time of writing, XRP is trading at around $0.686, down over 1% in the last 24 hours, according to data from CoinMarketCap. Token price at $0.68 | Source: XRPUSDT on Tradingview.com Featured image from Bitcoin News, chart from Tradingview.com
In a recent development, the United States Attorney’s Office in Massachusetts has taken legal action to reclaim $2.3 million in crypto assets and return it to 37 victims who fell prey to online scams and fraud. The civil forfeiture action aims to forfeit various cryptocurrencies, including Circle’s USD Coin (USDC), Tether (USDT), Tron (TRX), Solana […]
Nexo Card's holiday spending hits $50M, earning the FinTech Breakthrough Award for payment innovation.
Transaction fees across various Ethereum layer-2 networks, such as Base, StarkNet, and Optimism, have seen significant reductions following the implementation of the Dencun upgrade. Yesterday, the Dencun upgrade went live after months of anticipation within the crypto community. The upgrade, described as the most “complex fork” since Ethereum transitioned into a proof-of-stake network, introduced a […]
The post Blobs successfully slash layer-2 fees as Ethereum Dencun upgrade aims to increase adoption appeared first on CryptoSlate.
The tax measures aim to promote fundraising using investment tokens and establish the country as an investment hub.
The U.K. started a consultation on its money laundering rules on Monday.
Aurelie Barthere examines the uncertain future of the US economy and the likelihood of fewer Fed rate cuts.
The Crypto Open Patent Alliance and Craig Wright will present their closing arguments this week in a case debating whether Wright is indeed Satoshi Nakamoto..
Coinbase delivered an opening brief in a United States appeals court, arguing that the SEC should be forced to “engage in rulemaking.”
The United Kingdom’s Financial Conduct Authority said it would not object to requests to create a market segment for crypto-backed ETNs.
The U.S. will appeal the ruling of a Montenegro Court to hand Terraform Labs co-founder Do Kwon to South Korea, according to Bloomberg.
Nigeria's government has started a fresh crackdown on crypto firms, reportedly blocking access to several, including Binance, Coinbase and Kraken.
The U.K. government believes implementing the reporting framework could draw in 35 million pounds ($45 million) from 2026.
The five-nation BRICS group comprising Brazil, Russia, India, China and South Africa will work on creating a payment system based on blockchain and digital technologies, a report by Russian news agency TASS said.
A crime bill passed last year gave law enforcement agencies more power to seize and freeze crypto.
The exchange allegedly enabled funds to leave Nigeria while the country is trying to restrict capital outflows.
The price of Bitcoin stumbled amid a big day of Grayscale’s ETF outflows. JPMorgan analysts think more price corrections are coming post-halving.
The Financial Stability Board plans to publish a status report on its crypto roadmap and a report on the financial stability implications of tokenization.
As the backbone of many cryptocurrencies, including Bitcoin, block rewards help maintain the security and integrity of the blockchain network.
The Law Commission also called for evidence on its project on digital assets and electronic trade documents in private international law.
The Intergovernmental Fintech Working Group is also considering the impact of tokenization on domestic markets.
Ömer İleri, who oversees Information and Communication Technologies for Turkey’s ruling party, met with representatives of the crypto sector to discuss upcoming regulations.
Lawyers for the Crypto Open Patent Alliance declared that the recollection of the witnesses today was "hazy" and "confused."
During the presidential campaign, vice-presidential candidate Gibran discussed crypto and blockchain as a means to expand job opportunities for the country’s younger generation.