Another week, another round of Crypto Tidbits. Bitcoin has had a pretty tumultuous week.
After rising to $ 10,000 at the beginning of the week from mid-term purchases, seemingly caused by both private and institutional players, Bitcoin fell to $ 8,800 in two days. Altcoins posted comparable losses, with some outperforming the market leader and others outperforming BTC.
The drop coincided with rumors that Satoshi Nakamoto – the founder of the flagship cryptocurrency – dumped his coins on the open market after a transaction was sent from an address created a month after Bitcoin’s launch. This rumor has since been refuted by blockchain data.
As previously reported by NewsBTC, blockchain analysis company Glassnode noted on May 18 that the Puell Multiple – the USD value of BTC spent per day on the one-year moving average of the same metric – reached a critical level.
As the graph below indicates, whenever the multiple entered the green zone, it found a macro bottom.
This strong precedent suggests that BTC is approaching a halved bottom and is about to begin its fourth long-term rally.
Tuur Demeester – founder of Adamant Capital – echoed the optimism in an interview published this week by Messari, a crypto research firm:
“I think a price target of about $ 50,000 isn’t crazy at all, especially how crazy money printing is. I would even say between $ 50,000 and $ 100,000. ‘
Related Read: Crypto Facts: Bitcoin Halving, Reddit Using Ethereum, JP Morgan Dabbles in Crypto
Bitcoin & Crypto facts
- Bitcoin Bulls roar after “60 minute” segment: Last weekend, the world-famous ’60 Minutes’ show on CBS ran a segment highlighting the Federal Reserve. In an interview, central bank president Jerome Powell said that the trillions of dollars that the Federal Reserve has already injected into the economy are far from the end of the potential stimulus: “There is much more we can do . We have been out of ammunition for a long time. No, there is really no limit to what we can do with these lending programs we have. Bitcoin bulls were incredibly happy with this news.
- No, Chinese does not prohibit Crypto Mining: Earlier this week, there was commotion in the community as a picture leaked from a transcript from the Chinese government that an agency wanted to ban crypto mining. Asia-focused blockchain and fintech news broadcast PANews wrote regarding the image: “The Sichuan Province Financial Administration in China has sent a message to its subordinate offices ordering them to [Bitcoin and crypto] mining entities to end their mining operations in an orderly manner. “While many took this as a sign that the country was once again banning Bitcoin mining, Chinese crypto insiders confirmed that this is not the case. Matthew Graham of fund Sino Global Capital said:
“China does not prohibit mining, it is complicated as usual, messages are often in conflict, especially at local or regional level. The real message is, in fact, ‘don’t use local government mining aid to raise illegal money’. Thank you.” Graham wrote, in an attempt to counter the fear of a Chinese crackdown on crypto assets such as Bitcoin.
- Iran is pushing a national crypto mining strategy: Likewise, Iranian President Hassan Rouhani was reported this week to have told the Central Bank of Iran, the Ministry of Energy and Information and other ministries that he plans to implement a national cryptocurrency strategy. The strategy reportedly includes the regulation of private mining operations and the management of cryptocurrency mining revenues. Not much more was explained, but some speculate that Iran is trying to amass Iran and other cryptocurrencies to circumvent international sanctions.
- No, Satoshi Nakamoto does not dump his crypto: This week, blockchain analysis companies registered a suspicious transaction: an address created a month after Bitcoin’s birth displaced 50 coins. Due to the proximity of the address’s age to the creation of the network, many thought it was Satoshi Nakamoto who started selling his coins. Still, programmer Jimmy Song noted that this is unlikely, pointing to blockchain data indicating that this was only an early miner, not the creator of Bitcoin.
Featured Image from Shutterstock