bitcoin-ouro.jpg

Analyst Predicts Bitcoin (BTC) Above $50K Based on Gold Correlation

(Image: Unsplash/executium)

TechDev’s self-titled graph analyst, famous for his analysis on twitterpublished its most recent prediction: the gold can pull the Bitcoin (BTC) for prices above US$ 50 thousand if the correlation with the commodity continues.

Gold has been appreciating since the beginning of the year, and it surpasses the Nasdaq in correlation with the price of Bitcoin. The price movement of both is really quite similar.

– Advertisement –

The analyst’s followers are divided. Some say it makes sense since cryptocurrency is seen as digital gold. However, others call the graphist insane, and show that the correlation was once stronger between the two.

Bitcoin’s correlation with Nasdaq is 0.73 – on a scale of -1 to 1 – while gold’s is at 0.81.

– Advertisement –

The year 2022 was marked by the intense correlation of Bitcoin with the nasdaqthe technology index of U.Sand precisely the decorrelation with gold.

Gold analyst criticizes comparison

The correlation makes gold analysts uneasy, as the vast majority are critical of bitcoin. Peter Schiff, defender of the precious metal, and known for criticizing the cryptocurrencycomments that the correlation of both is for different reasons.

“Both gold and Bitcoin are bullish in 2023, but they are rising for opposite reasons. Gold is rising as a hedge against inflation and a weaker dollar, while Bitcoin is rising with other high-risk assets as speculators bet a Fed pivot will cause a rebound in 2022’s biggest losers.




Source link

1665093692_social.jpeg

Why bitcoin is up 40% in January despite crypto industry carnage

Welcome back to Distributed Ledger. This is Frances Yue, crypto reporter at MarketWatch.

Bitcoin has had a stellar start this year, with an almost 40% rise so far, even though crypto lender Genesis filed for bankruptcy last week, only months after digital asset exchange FTX imploded in November. In this installment, I’ll break down what’s driving the largest cryptocurrency’s rally.

Find me on Twitter at @FrancesYue_ to share any thoughts on crypto, this newsletter, or your personal stories with digital assets.

Why the rally?

It is not only crypto – most markets tend to perform well in January, as fund managers rush to deploy money at the start of a year, according to Ivan Ivanchenko, managing partner at Phinom Digital. In fact, most risk assets rose so far this year, with the tech-heavy Nasdaq Composite logging a 8.8% gain, according to FactSet data. 

Meanwhile, bitcoin was heavily shorted in November and December after FTX’s collapse. As the crypto’s price rose unexpectedly in January, some short sellers were forced to close their positions and buy bitcoin, pushing the crypto’s price even higher. 

Bitcoin’s rise also comes as investors’ confidence picked up, noted Luuk Strijers, chief commercial officer at crypto derivatives exchange Deribit. 

After FTX’s implosion in November, the number of open contracts for bitcoin futures and options on Deribit reached the highest level in history, indicating a high level of activity, noted Strijers. “That’s because people were anticipating the worst which requires a need for them to hedge their holdings to protect more downside moves,” Strijers told Distributed Ledger in an interview.

The fear and panic in the crypto market may be easing slightly in January, with several signals in the derivatives market suggesting a comeback of institutional interest. The spot price of bitcoin is lower than the futures prices, showing that traders believe bitcoin’s price will rise, according to data from several exchanges.

In addition, there are more call options trading in the market than put options, signaling a rise in bullish sentiment, noted Strijers. Call options allow traders to buy an asset at a predetermined price, while put options allow traders to sell an asset at a predetermined price. 

What’s next?

Despite the recent rally, Phinom’s Ivanchenko expects further downside for bitcoin, which may fall below its previous low of $15,480, said Ivanchenko. “I prefer to think of the market right now as having more risks than opportunities,” Ivanchenko said. “We don’t know the weakness of certain links.” 

The macroeconomic environment remains challenging, with still high inflation and a possible recession on the way at least in the U.S. It is also unclear how Genesis’s bankruptcy may spill over to other companies, including its corporate parent Digital Currency Group and its sister company Grayscale Investments, which owns the world’s largest bitcoin fund GBTC, noted Ivanchenko. 

Read: Jeremy Grantham says ‘easiest leg’ of stock-market bubble burst is over. Here’s what’s next.

Meanwhile, after several major crypto companies’ collapsed last year, “regulators can push the market to new lows, easily,” said Ivanchenko.  

Deribit’s Strijers holds a different view. He expects the rally to continue with a market in a “recovery mode.”

The impact of the implosions of FTX and Genesis on most large crypto companies are already known and priced in, noted Strijers. “I think that people realize it, and the Genesis problem even though bad and unsettled, is manageable,” said Strijers. 

Tesla’s crypto holdings

Tesla didn’t buy or sell any bitcoins in the fourth quarter of 2022, though the largest cryptocurrency fell to a two-year low of $15,480 in November, after FTX filed for bankruptcy. Tesla invested $1.5 billion in bitcoin in early 2021, when the crypto was trading above $30,000. 

Still, the electric car maker recorded a $34 million impairment loss in the fourth quarter, recording the value of its digital asset holdings at $184 million on Dec. 31, down from $218 million on Sept. 30.

Crypto in a snap

Bitcoin prices rose 10% during the past week, and was trading at around $23,027 on Thursday, according to CoinDesk data. Ether
ETHUSD,
-0.71%

 gained 5% over the same stretch to around $1,601, CoinDesk data shows.

Biggest Gainers

Price

%7-day return

Aptos

$18.32

139.5

Fantom

$0.49

63

Axie Infinity

$11.64

44.6

BTSE

$3.01

42.6

eCash

$0.00004

42.5

Source: CoinGecko as of Jan. 26

Biggest Decliners

Price

%7-day return

Flare

$0.04

-8.6

Tokenize Xchange

$6.67

-2.2

Pax Dollar

$1

-0.4

Tether

$1

-0.3

TrueUSD

$1

-0.2

Source: CoinGecko as of Jan. 26

Crypto companies, funds

Shares of Coinbase Global Inc.
COIN,
+0.66%

rallied 8.6% for the week to around $53.67. MicroStrategy Inc.
MSTR,
-1.09%

rose by 9.6% thus far on the week, to $242.77.

Crypto mining company Riot Blockchain Inc.
RIOT,
-1.44%

surged 7.1%, to $6.19, as of Thursday. Shares of rival Marathon Digital Holdings Inc.
MARA,
-0.34%

were up 17.9% at $8.65, over the past week. Ebang International Holdings Inc.
EBON,
-5.83%

lost 10.9% over the past week and was trading at $8.09.

Overstock.com Inc. shares
OSTK,
+0.32%

were trading up 11.3% to $22.48, over the week.

Shares of Block Inc.
SQ,
-0.10%
,
formerly known as Square, gained 13.2% to $80.32 for the week thus far. Tesla Inc. shares
TSLA,
+10.03%

were up 24% to $157.99.

PayPal Holdings Inc.
PYPL,
+1.33%

advanced 3.6% over the week, to trade at around $79.56. Nvidia Corp.
NVDA,
+1.77%

added 17% at $197.42 for the past week.

Advanced Micro Devices Inc. shares
AMD,
+0.02%

obtained 10.7% to $74.92 for the week.

Among crypto funds, ProShares Bitcoin Strategy
BITO,
+0.82%

went up 9.3% over the week to $14.64 Thursday, while counterpart Short Bitcoin Strategy ETF
BITI,
-0.86%

declined 8.8% to $27.53. Valkyrie Bitcoin Strategy ETF
BTF,
+0.33%

increased 9% over the past week to $9.20, while VanEck Bitcoin Strategy ETF
XBTF,
+0.58%

climbed 5% to $23.39.

Grayscale Bitcoin Trust
GBTC,
+0.41%

were up 5.5% for the past five days to $12.13 on Thursday.

Must reads




Source link

CryptoQuant’s Bitcoin PnL Index Forms Bullish Crossover

Originally posted here.
By: Hououin Kyouma

Overview

CryptoQuant’s Bitcoin on-chain PnL index has surged above its 365-day MA recently, a crossover that has historically signaled early bull markets. Bitcoin On-Chain PnL Index Has Formed A Bullish Crossover As per data from the on-chain analytics firm CryptoQuant, the index is indicating a buy signal for BTC right now. The “CryptoQuant on-chain PnL index” is a metric that combines three different indicators into one to point out tops, bottoms, and cyclical shifts in the price of Bitcoin. The first of the metrics that the PnL index uses is the “MVRV ratio,” which is a model that checks whether BTC is currently overvalued or undervalued by comparing the crypto’s market cap with a fair value model called the “realized cap.” The second relevant indicator here is the “NUPL,” which tells us whether the Bitcoin market as a whole is currently carrying an unrealized profit or an unrealized loss. This metric can provide hints about whether there is a buying or selling motive among investors right now. Finally, there is the Spent Output Profit Ratio (SOPR), which tracks whether the average holder is selling at a loss or a profit at the moment. The SOPR shouldn’t be confused with the NUPL, as the quantity being measured by the NUPL is the “unrealized” profit/loss, which is the profit or loss that investors have accumulated but are yet to harvest (or “realize”) as they are still to sell their coins. There are actually two SOPR metrics of interest here; the version specifically for the short-term holders (STHs) and that for the long-term holders (LTHs). The entire Bitcoin market can be divided into these two groups, with the criteria being that holders who bought within the last 155 days fall into the former cohort, while those who bought before that fall into the latter. Related Reading: Shiba Inu Declines 6%, Gets Flipped By Litecoin In Market Cap Again Now, here is the data for the CryptoQuant on-chain PnL index, which takes all these different Bitcoin indicators and combines them into one model for the crypto: Looks like the value of the metric has shot up | Source: CryptoQuant As displayed in the above graph, the CryptoQuant on-chain PnL index has sharply risen out of the historical bottom zone recently. The chart also includes the curve for the 365-day moving average (MA) of the metric, and it’s clear that the index has crossed above this MA with the latest surge. Historically, such a crossover during bearish periods has signaled a transition toward an early bull market. If this pattern holds true this time as well, then the current breakout could be good news for the ongoing rally. Related Reading: Bitcoin Short-Term Holder Profit-Taking Spikes, Will BTC Price Recover? However, back in 2015, an initial breakout like the current one did end up failing, and it was only later that a successful transition took place. Nonetheless, CryptoQuant notes “although it is still possible for the index to fall back below, the CryptoQuant PnL Index has issued a definitive buy signal for BTC.” BTC Price At the time of writing, Bitcoin is trading around $22,900, up 11% in the last week. BTC seems to be showing stale price action | Source: BTCUSD on TradingView Featured image from Hans Eiskonen on Unsplash.com, charts from TradingView.com, CryptoQuant.com

The Post

CryptoQuant’s Bitcoin on-chain PnL index has surged above its 365-day MA recently, a crossover that has historically signaled early bull markets.

Bitcoin On-Chain PnL Index Has Formed A Bullish Crossover

As per data from the on-chain analytics firm CryptoQuant , the index is indicating a buy signal for BTC right now. The “CryptoQuant on-chain PnL index” is a metric that combines three different indicators into one to point out tops, bottoms, and cyclical shifts in the price of Bitcoin.

The first of the metrics that the PnL index uses is the “MVRV ratio ,” which is a model that checks whether BTC is currently overvalued or undervalued by comparing the crypto’s market cap with a fair value model called the “realized cap .”

The second relevant indicator here is the “NUPL ,” which tells us whether the Bitcoin market as a whole is currently carrying an unrealized profit or an unrealized loss. This metric can provide hints about whether there is a buying or selling motive among investors right now.

Finally, there is the Spent Output Profit Ratio (SOPR), which tracks whether the average holder is selling at a loss or a profit at the moment. The SOPR shouldn’t be confused with the NUPL, as the quantity being measured by the NUPL is the “unrealized” profit/loss, which is the profit or loss that investors have accumulated but are yet to harvest (or “realize”) as they are still to sell their coins.

There are actually two SOPR metrics of interest here; the version specifically for the short-term holders (STHs) and that for the long-term holders (LTHs). The entire Bitcoin market can be divided into these two groups, with the criteria being that holders who bought within the last 155 days fall into the former cohort, while those who bought before that fall into the latter.

Now, here is the data for the CryptoQuant on-chain PnL index, which takes all these different Bitcoin indicators and combines them into one model for the crypto:

As displayed in the above graph, the CryptoQuant on-chain PnL index has sharply risen out of the historical bottom zone recently. The chart also includes the curve for the 365-day moving average (MA) of the metric, and it’s clear that the index has crossed above this MA with the latest surge.

Historically, such a crossover during bearish periods has signaled a transition toward an early bull market. If this pattern holds true this time as well, then the current breakout could be good news for the ongoing rally.

However, back in 2015, an initial breakout like the current one did end up failing, and it was only later that a successful transition took place. Nonetheless, CryptoQuant notes “although it is still possible for the index to fall back below, the CryptoQuant PnL Index has issued a definitive buy signal for BTC.”

BTC Price

At the time of writing, Bitcoin is trading around $22,900, up 11% in the last week.


Source link

shutterstock-795319732.jpg

New York Judge Orders Increasing Fine on Bitcoin Facility

(TNS) — A State Supreme Court justice, following the lead of another justice, has ordered a cryptocurrency mining company in the Falls to stop operating or face fines of $10,000 a day.

Justice Edward Pace said he would impose the fines, dating back to Dec. 9, when Supreme Court Justice Frank Sedita III first issued a temporary restraining order (TRO) that directed U.S. Data Technologies Group Ltd. and U.S. Data Mining Group Inc, doing business as U.S. Bitcoin, to stop operating while lawyers for the Falls sought a preliminary injunction to force their cryptocurrency mining facility on Buffalo Avenue to comply with a new zoning ordinance governing high energy use industries.

Pace said the $10,000 fine would be in place through Jan. 31.


“If, by January 31, (the cryptocurrency mining operation) has not shut down, then a check should be delivered to the city of Niagara Falls on February 1 for $540,000,” Pace said.

The justice also told John P. Bartolomei, an attorney for U.S. Bitcoin, that if his clients continued to operate past Jan. 31, the daily fine would increase to $25,000 a day until the case was finally settled. Bartolomei protested the ruling and indicated he would appeal Pace’s decision to the State Supreme Court Appellate Division Fourth Department in Rochester.

Attorneys for the Falls had asked Sedita, who recently transferred some of his caseload to Pace, to find U.S. Bitcoin in contempt of court for violating his TRO that directed them to shut down their Buffalo Avenue facility, which the city charges is creating “a public nuisance” and engaging in “ongoing violations” of the city’s Zoning Code.

Sedita issued the restraining order on Dec. 1. It directed U.S. Bitcoin to cease “engag(ing) in “any and all forms of cryptocurrency mining” pending the outcome of a hearing on the city’s request for a preliminary injunction that seeks to shutdown three cryptocurrency mining facilities.

© 2023 the Lockport Union-Sun & Journal (Lockport, N.Y.). Distributed by Tribune Content Agency, LLC.




Source link

Bit.png

Arizona Senator Pushes Bill To Make Crypto Legal Form Of Currency

In the past year, bitcoin’s price has declined by about 60% from its all-time high. This has diminished the excitement surrounding the alpha coin, but not entirely.

There are still many who have faith in the cryptocurrency’s future. One of them is Arizona state Sen. Wendy Rogers.

Rogers, a Republican, has presented legislation that would make bitcoin legal currency in Arizona and allow state agencies to accept it.

The law proposed on Wednesday would, if passed, make Arizona the first state in the United States to recognize bitcoin as a legal form of currency.

The proposals are co-sponsored by Rogers’ Republican colleagues in the state senate, J.D. Mesnard and Jeff Weninger.

Wendy Rogers Arizona state Sen. Wendy Rogers. Image: KJZZ

Arizona To Deliberate On Bitcoin As Legal Currency 

The widely anticipated bill, designated SB 1341, has sparked a heated exchange of opinions.

It has not yet been established when the discussion will be held in an official capacity, but a date will be set soon.

The bill permits the payment of debts, taxes, and other financial responsibilities in Arizona with bitcoin.

This would imply that all transactions currently conducted in U.S. dollars (USD) might possibly be carried out in BTC, and people and establishments would be free to use the cryptocurrency as they see right.

BitcoinImage: Common Cents Mom

According to research by one of the most prestigious financial institutions in the United States, Goldman Sachs, Bitcoin was “the best-performing asset in the world.”

Bitcoin tops the list, according to the bank’s study, with nearly 27% in total returns and a risk-adjusted ratio of 3.1 in its year-to-date assessment of returns.

Take Two For The Arizona Senator

Meanwhile, this is the second time that Rogers has presented legislation in her state to make bitcoin legal tender.

In January of last year, the senator submitted identical legislation that was rejected by other legislators in the second reading.

The crypto bill’s approval is uncertain, given the U.S. Constitution prohibits individual states from establishing their own legal currency.

Interestingly, Roger’s proposed legislation mentioned Bitcoin’s potential to operate independently of central bank intervention.

Arizona is not the only state battling with cryptocurrency laws. Last week, legislators in Mississippi and Missouri attempted to enact legislation preserving citizens’ rights to mine bitcoin, an energy-intensive industry that was outlawed in New York in 2022.

According to Anderson Kill law firm partner Preston Byrne:

“The Coinage Clause of the U.S. Constitution means that the power to determine what is and isn’t legal tender in the United States is the exclusive province of Congress.”

Byrne noted that if the Arizona senator’s plan were to become law, it would be “primarily symbolic.”

BTC total market cap at $443 billion on the daily chart | Chart: TradingView.com

BTC Nears $23,000

Currently, the United States leads the world in Bitcoin trading volume with over $1.5 billion. Approximately 23 million Americans possess cryptocurrency. And around 16% have invested in or traded cryptocurrencies, a Bankless Times study reveals.

El Salvador’s use of bitcoin as legal cash has been beneficial for economic growth and investment.

Image - Coingecko

As bitcoin acceptance grows, the probability that measures like the one offered by Sen. Rogers will be passed by Congress will only increase.

As the time of writing, bitcoin is trading at $22,984, up 10.8% in the last seven days, data from Coingecko shows.

Featured image by Travellers Worldwide


Source link

Copy-of-2023-01-23T141834Z_1050116577_RC2DWY9C8VWP_RTRMADP_3_FINTECH-CRYPTO-NEW-YORK-1674723380399_185ed4accbb_medium.jpg

Bitcoin options exchange Deribit looks to relocate to Dubai

Dubai: Deribit, the world’s biggest Bitcoin and Ether options exchange, is making plans to relocate to Dubai as soon as the third quarter.

The trading platform, which has been based in Panama since 2020, is preparing to open a Dubai office with about 10 people, a mix of core employees and local hires, David Dohmen, chief legal compliance and regulatory officer at Deribit, said in an interview. Some employees will continue to be based in Panama. Deribit’s Netherlands-based parent company and related subsidiaries currently employ 95 people globally, roughly double year-ago levels.

The November collapse of the rival FTX crypto exchange shook trust in the sector, resulting in outflows across the industry, including between 10 per cent and 15 per cent at Deribit.

“We’ve had a number of clients who basically intimated to us that they would like to trade on a crypto exchange that’s actually regulated,” Dohmen said. “In Panama we are not regulated. Also we also saw where the regulatory winds were blowing, and there was a drive toward regulation across the globe.”

Tailored crypto regulations

Dubai has made extensive efforts to woo the world’s largest firms with crypto-friendly policies. As some financial centers tightened regulations last year, many UAE officials were touting virtual assets as a key pillar for economic growth and diversification. Companies like Binance, the world’s biggest crypto exchange, have expanded in Dubai.

“We felt that the whole regulatory regime was more tailored to crypto than other jurisdictions,” Dohmen said. “It’s more flexible. The government and the regulator are welcoming crypto as a product.”

Deribit plans to submit an application and supporting documents for a Full Market Product license to Dubai’s Virtual Assets Regulatory Authority once the agency gives an update on its regulatory regime, Dohmen said.

Deribit is now also working to appoint a well-known auditor, said Luuk Strijers, Deribit’s chief commercial officer. The company was profitable in 2022 despite being impacted by the collapse of hedge fund Three Arrows Capital, he said.

In the next few years, Deribit also want to obtain broker licenses in countries like the UK, Brazil and Singapore, in an effort to drive more clients onto the exchange, Dohmen said.


Source link

1205a477-ff6b-4d15-990d-e73d2e7cfebe.jpg

Tesla Held Onto Its Bitcoin Holdings Through Q4 2022 Despite Market Turmoil

Electric vehicle maker Tesla has refused to sell any more of its Bitcoin (BTC) reserves during the second half of 2022 despite having sold 75% of its holdings in the second quarter.

In its latest earnings report for the fourth quarter of 2022 and published on January 25, Tesla’s financials show that, for the second quarter in a row, it neither bought nor sold Bitcoin. And this despite the strong market turbulence in November and December, after the collapse of FTX.

The documents show that the company had USD 184 million in digital assets as of December 31, 2022, down from $218 million in holdings from the prior quarter due to the $34 million impairment loss due to the fall in Bitcoin’s price between late September and December of last year.

Bitcoin was hovering around $19,500 on September 30, 2022, before falling nearly 15% to $16,600 on December 31.

The electric vehicle maker also held onto its Bitcoin until the third quarter of last year after selling off 75% of its coins during the second quarter. The second-quarter sale added $936 million in cash to Tesla’s records, giving the company a realized gain of $64 million.

Tesla CEO Elon Musk He explained at the time that the sale was to “test Bitcoin’s liquidity as an alternative to holding cash on a balance sheet.”

NeverthelessHis Bitcoin Holdings and Cryptocurrency Opinion Were Not Discussed on Tesla’s Latest Earnings Call, on January 25. According to estimates, Tesla owns about 9,720 BTC.

Overall, Tesla posted $5.7 billion in profit from $24.3 billion in revenue in the fourth quarter, with its gross margins at the lowest level in five quarters. The company posted total profit of $20.8 million in 2022 from revenue of $81.4 billion.

The revenue figure missed analyst estimates, but its earnings beat consensus estimates.

Tesla’s stock price rose slightly during the day on January 25, closing with a gain of almost 0.40%. It continued to trade positive after the close, up almost 4.6% at press time, according to data from Google Finance.

Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.

Keep reading:




Source link

PM6hSEFz7zvHbJvjSqINJJEMZMWiKxTIXb3DhcFQ.jpg

Nuclear powered Bitcoin mining to start operations in US this year

Mining is crucial for Bitcoin as it is the only method to generate new coins of the cryptocurrency. To generate a new Bitcoin token, users solve complex mathematical puzzles, and the first to provide the correct answer is awarded the newly generated crypto coin. Called the Proof of Work system, the process is commonly referred to as mining, and the users involved in solving the puzzle are called miners.

Over the years, the puzzles have become more difficult to crack, and miners have dedicated greater computational resources in their bid to earn the coveted new coin. This, in turn, has increased the power consumption of the Bitcoin industry, making it less sustainable than beef farming, and it is estimated to have emitted 86.3 million tons of carbon in 2022 alone.

No carbon nuclear power

As renewable sources of energy are getting cheaper, mining operations are increasingly being built closer to solar, hydro, and wind energy farms. However, a major portion of the mining operations continues to be powered by carbon-emitting sources of energy.

The Cumulus Data Center built in the 1,200-acre campus in Pennsylvania is connected to the 2.5 GW Susquehanna nuclear power station and will soon host the mining operations of TeraWulf, making it the first nuclear-powered Bitcoin mine in the U.S.

This will bring down carbon emissions from TeraWulf’s operations, and other mining companies are also expected to follow suit in the near future. Miami, which is also home to nuclear power, is also looking to attract crypto miners with its pro-crypto policies, the CNET report added.


Source link

green-energy-renewable-mining.jpg

Leaving Kazakhstan, Bitcoin Mostly Green – Bitcoin Magazine

Kazakhstan was, at its height, the second-largest Bitcoin mining nation on earth. Then, within a year, it capitulated. While mainstream news commentators were quick to pick through the reasons for why Kazakh authorities turned against Bitcoin mining operations, the consequence this had on the greening of the network went unreported.

But because Kazakhstan is fuelled 87.6% by fossil fuel, less mining there means a higher clean energy mix for the Bitcoin network.

How much higher?

That’s what I asked myself. And the answer I found was surprising.Source


Source link

Banking Giant Goldman Sachs Ranks Bitcoin As World Best Performing Asset

Originally posted here.
By: ronaldomarquez

Overview

Ahead of Gold, US Treasury, the S&P 500, and others, banking giant Goldman Sachs ranks Bitcoin (BTC) in the top 1 best-performing asset year-to-date, per a Twitter user. Related Reading: MakerDAO Passes Proposal To Deploy $100 Million USDC In Yearn Finance Vault According to Goldman Sachs, Bitcoin has outperformed its cryptocurrency pairs and those major financial institutions of the traditional market with a risk-adjusted return (Sharpe ratio) of 3.1. The Sharpe Ratio is used to measure market volatility-adjusted performance; the higher the ratio, the better the investment, currency, or stock in terms of risk-adjusted returns. Bitcoin Takes The Lead In Broad Market Recovery On smaller timeframes, Bitcoin continues its quest to regain lost territory. Slowly but steadily, Bitcoin is attempting to break above the resistance level of $23,800. Bitcoin appears to have a healthy pullback below the resistance line in search of bullish momentum. Despite the recent crisis of not only the cryptocurrency market with the collapse of FTX and the world economy in free fall, bringing consequences for investors and institutions, the market has also noted the comeback of market makers on cryptocurrency exchanges.  In contrast with Goldman Sachs’ report, according to an annual report by CoinGecko, Bitcoin is the worst-performing asset among the major currencies, with a significant decline of 64%. CoinGecko also noted that since January 2022, the trading volume in the spot market has decreased by 67%.  The new year for Bitcoin and the market started positively, with $200 billion bulking the volume and volatility sheets, according to CoinMarketCap data. Bitcoin’s year-to-date solid rally has shifted market sentiment. Analysts seem bullish in the short term, expecting the cryptocurrency to increase to as much as $30,000. However, in the long term, economist Lyn Alden said that Bitcoin could be in “considerable danger” in the second quarter of 2023 as liquidity risks increase.  As the price of Bitcoin consolidates below the resistance zone, the cryptocurrency is looking for a trendline break to position itself above the $24,500 level, representing its next obstacle.  The rising 20-day moving average at $20,700 and the Relative Strength Index (RSI) in the overbought zone near 80 suggest that BTC’s bullish trend line can continue and conquer new regions. Conversely, bears are ready to stall the Bitcoin price action to the upside and turn the momentum and direction of the market, but bulls seem unwilling to surrender. Speculation is on the rise with no certainties in the market and the upcoming Federal Open Market Committee (FOMC) meetings.  Related Reading: Cardano’s Aggressive Development Activity Will Withstand Bear Assault At $0.3? As of this writing, Bitcoin has gained nearly 8% in the last seven days. It has traded at $22,889 with sideways movement in the last 24 hours. The currency’s current capitalization stands at $440 billion, outperforming all its market pairs.

The Post

Ahead of Gold, US Treasury, the S&P 500, and others, banking giant Goldman Sachs ranks Bitcoin (BTC) in the top 1 best-performing asset year-to-date, per a Twitter user .

According to Goldman Sachs, Bitcoin has outperformed its cryptocurrency pairs and those major financial institutions of the traditional market with a risk-adjusted return (Sharpe ratio) of 3.1. The Sharpe Ratio is used to measure market volatility-adjusted performance; the higher the ratio, the better the investment, currency, or stock in terms of risk-adjusted returns.

Bitcoin Takes The Lead In Broad Market Recovery

On smaller timeframes, Bitcoin continues its quest to regain lost territory. Slowly but steadily, Bitcoin is attempting to break above the resistance level of $23,800. Bitcoin appears to have a healthy pullback below the resistance line in search of bullish momentum.

Despite the recent crisis of not only the cryptocurrency market with the collapse of FTX and the world economy in free fall, bringing consequences for investors and institutions, the market has also noted the comeback of market makers on cryptocurrency exchanges.

In contrast with Goldman Sachs’ report, according to an annual report by CoinGecko, Bitcoin is the worst-performing asset among the major currencies, with a significant decline of 64%. CoinGecko also noted that since January 2022, the trading volume in the spot market has decreased by 67%.

The new year for Bitcoin and the market started positively, with $200 billion bulking the volume and volatility sheets, according to CoinMarketCap data.

Bitcoin’s year-to-date solid rally has shifted market sentiment. Analysts seem bullish in the short term, expecting the cryptocurrency to increase to as much as $30,000. However, in the long term, economist Lyn Alden said that Bitcoin could be in “considerable danger” in the second quarter of 2023 as liquidity risks increase.

As the price of Bitcoin consolidates below the resistance zone, the cryptocurrency is looking for a trendline break to position itself above the $24,500 level, representing its next obstacle.

The rising 20-day moving average at $20,700 and the Relative Strength Index (RSI) in the overbought zone near 80 suggest that BTC’s bullish trend line can continue and conquer new regions.

Conversely, bears are ready to stall the Bitcoin price action to the upside and turn the momentum and direction of the market, but bulls seem unwilling to surrender. Speculation is on the rise with no certainties in the market and the upcoming Federal Open Market Committee (FOMC) meetings.

As of this writing, Bitcoin has gained nearly 8% in the last seven days. It has traded at $22,889 with sideways movement in the last 24 hours. The currency’s current capitalization stands at $440 billion, outperforming all its market pairs.


Source link