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Bitcoin This Week: All Eyes on Fed Meeting After $10,500-Rejection

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Bitcoin closed last week with a brief jump above $10,500, a critical resistance target that excited traders into booking their short-term profits.

The result was a dump. Bitcoin’s benchmark symbol BTC/USD trimmed about $350 off its weekly top overnight. Furthermore, the pair fell into the same trading range that trapped its breakout moves throughout this September. Entering the new week, the technical outlook for BTC/USD remains the same as before: Fluctuate inside the $9,800-$10,400 area.

bitcoin, btcusd, btcusdt, xbtusd, cryptocurrency, Euro, EURUSD, cryptocurrency, dollar,

Bitcoin rejects $10,500 to enter the previous consolidation range. Chart Source: TradingView

Josh Rager, the co-founder of BlockRoots.com, also noted the same in his weekly analysis. The analyst said BTC/USD should reclaim $11,900 to confirm its bullish bias.

“Until then, I remain neutral (leaning bullish) and will continue to trade altcoins at this time,” he added.

More Insights on Inflation

The Bitcoin market opened the new week in green, partially after finding modest technical support above $10,200 that caused an uptick in bullish trades. At the same time, the bounce-back after the $10,500-rejection also appeared ahead of the Federal Reserve’s policy meeting on Wednesday.

The central bank’s gathering expects to explain how it would put its fresh inflation targeting policy into action. There remains a lack of clarity after the Fed chair, Jerome Powell, committed to raising the inflation rate towards or above its benchmark target of 2 percent at the annual economic policy symposium held two weeks back.

Many analysts and investors, including the likes of Paul Tudor Jones, the Winklevoss Twins, and Jack Dorsey, believe higher inflation would push the Bitcoin price higher. The scarce asset, to them, is a reliable measure of protection–a hedge–against purchasing power risk.

Nevertheless, BTC/USD remains to the downside even after the Fed’s inflationary outlook for the years ahead. The pair plunged by a maximum of 18.75 percent from its session top above $12,000. The downside move clarified that many daytraders remained skeptical for the short-term.

The reason could be the first significant correction in the US equity market since March 2020, especially in the tech stocks. The sell-off shifted investors back into the fiat market. It, meanwhile, woke the US dollar index from its two-year low, making other safe-haven assets–like Bitcoin and gold–cheaper.

Bitcoin Correction Risks

A clarification over how the Fed plans to reach its inflation targets in the coming years could push Bitcoin higher. That would mean a retest of the $10,400-resistance followed by another extended move towards $10,500.

Nevertheless, if the central bank remains elusive at the September meeting, Bitcoin would risk breaking below $10,000 to target $9,800 as its primary downside target. To make the matter worse, one economist sees no major announcement from the Fed this week.

Nomura’s Lewis Alexander said the Fed officials have not agreed on the timing of its forward guidance release, especially as the US economy shows signs of recovery after recording a modest growth in its manufacturing and labor sector.

“Recent comments from FOMC participants suggest a consensus for stronger, outcome-based forward guidance or significant changes to asset purchases remains some ways off,” Mr. Alexander said in a note.

But if Bitcoin traders are watching closely, they could take some bullish cues off the Fed’s updated Summary of Economic Projections–aka “dot plot“–coming this week. There, the central bank would likely continue its zero-rate policy at least until 2022. Lower rates lift the appeal of riskier assets.

Photo by Random Sky on Unsplash

Source: https://bitcoinist.com/bitcoin-this-week-all-eyes-on-fed-meeting-after-10500-rejection/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoin-this-week-all-eyes-on-fed-meeting-after-10500-rejection

Blockchain

Iran To Lift Cryptocurrency Mining Ban In September

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In 2019, the Iranian government announced it would regulate mining activities in the country. Interested miners were required to get a permit from the Ministry of Industries. Semnan province leads with six mining farms out of the 30 licensed companies. After legalizing bitcoin mining, the government licenced over 1000 companies in January 2022.

Ban on Crypto Mining Activities

The Iranian government banned bitcoin mining in the country in May 2021. The ban announced by the former president Hassan Rouhani was due to a strain on electricity power majorly caused by illegal mining. While authorised bitcoin miners consume modest 30 megawatts, illegal mining activities use up to 2000 megawatts putting a strain on the electricity grid. 

Since April, the ministry of Energy has also increased power tariffs for miners. The companies buy power at export rates of $0.34 per kilowatt-hours. This cost is fourfold the standard rate before April. Besides prohibiting bitcoin mining, the government has confiscated 200 000 illegal mining rigs in 12 months. 

A Reason To Smile 

The good news is that miners have a reason to smile. The Iranian Ministry of Industries, Mining and Trade will lift the Bitcoin mining restriction on September 22. The announcement was made by the Iran Power Generation, Distribution and Transmission Company, Tavanir. According to the Utility spokesman, Mostafa Rajabi Mashhadi, they expected electric power usage to fall by the end of summer. This will create perfect conditions for resuming bitcoin mining. After announcing this news, the price of Bitcoin slightly jumped and is now according to CoinCheckup.com traded at $43,626, similar growth has also been according to coincheckup.com recorded for a relatively new coin called Solana, which now hovers around the 150 USD mark.

Power demand in the country goes up during hot weather. Initially, the government had planned to shut down mining activities during peak hours. However, they decided to impose a nationwide ban until the end of the summer season. Besides using massive power, the Utility claims the miners damage the power grid, with losses amounting to $4 million. 

Government Control on CryptoCurrencies 

The Iran government has gone a notch higher to control and centralise the use of cryptocurrencies in the country. The parliament has proposed a bill that will prohibit using foreigner mined cryptocurrencies for local transactions. This move seems like a plan to localize crypto mining. Recently, the tax agency in the country also called for the establishment of a legal framework for crypto trading activities. This regulation will boost the scope of the crypto acceptance policy.

Positive Effect on Economy 

Bitcoin has become a significant source of income for the country. Elliptics guide’s projection shows that mining activities in Iran will rake in $1 billion in annual revenue.  However, the ban has affected this goal significantly. However, the resumption of mining will solve this problem.

Miners who had dispersed will resume operations, a factor that could inject more revenue into the economy. With the crackdown of bitcoin mining in China, lifting the ban in Iran could propel the country to the top spot in crypto mining. 

Iran is also facing sanctions from the US government. This means that MasterCard, PayPal and other international payment technology can’t operate in the country. This has made it very difficult for Iranians to conduct online international transactions such as online purchases and money transfers. The bitcoin mining ban exacerbated the situation. Therefore resumption of mining activities is welcome good news. Iranians consider cryptocurrency as an investment and payment method.

Bitcoin mining is quite an essential activity in the circulation, development and maintenance of its blockchain ledger. In other words, mining more bitcoin boosts its circulation. Although bitcoin price is pretty much unpredictable, the resumption of mining activities in Iran will increase competitiveness and encourage crypto enthusiasts to invest more in bitcoin. Despite the high volatility and restriction by the international banking system, bitcoin has immense growth potential. 

Source: Plato Data Intelligence

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Blockchain

Ethereum Token Circulation Hit Levels Last Seen in June Amid ETH Realized Cap Reaching ATH

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Ethereum has been experiencing an uptick in different activities, despite the crypto market bleeding triggered by factors like a major liquidity crisis witnessed by leading Asian property developer China Evergrande.

The amount of unique tokens moving on the Ethereum network, known as token circulation, is uptrending. On-chain metrics provider Santiment said:

“Ethereum’s token circulation soared yesterday to its highest level since June 22nd. If signs of ETH utility and tokens being moved continue to rise, the price will generally follow.”

Image

Santiment noted that this was a bullish sign because the price would soon follow suit if token circulation were on an uptrend.

Ethereum has been stamping its authority in the financial market. Reportedly, the second-largest cryptocurrency based on market capitalization recently topped traditional markets.

Ethereum realized capitalization reaches a record high

According to crypto analytic firm Glassnode:

“ETH realized cap just reached an ATH of $168,760,319,570.33. Previous ATH of $166,629,459,955.06 was observed on 20 September 2021.”

Realized market capitalization is a metric calculated by valuing each supply unit at the exact price it last moved on-chain or at the last time it was transacted. 

As a result, it does not calculate coins that remain unmoved because cryptocurrencies can be lost, unreachable, or unclaimed. This contrasts with the standard market capitalization that values every supply unit evenly at the current market price. 

Meanwhile, Ethereum transaction volume hit a monthly high, thanks to continued adoption in decentralized finance (DeFi) and non-fungible tokens (NFTs). For instance, ETH locked in DeFi edged closer to a new ATH of $8 million. 

 

Image

DeFi is founded on blockchain-based smart contracts that fulfil certain financial functions based on the underlying code. 

This industry took the world by storm in 2020 after its value grew by fourteen times. Its presence in the crypto space continues to be felt because it has become a billion-dollar industry valued at $81.85 billion.

Image source: Shutterstock
PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
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Source: https://Blockchain.News/analysis/ethereum-token-circulation-hit-levels-last-seen-in-june-amid-eth-realized-cap-reaching-ath

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Blockchain

Ethereum Token Circulation Hit Levels Last Seen in June Amid ETH Realized Cap Reaching ATH

Published

on

Ethereum has been experiencing an uptick in different activities, despite the crypto market bleeding triggered by factors like a major liquidity crisis witnessed by leading Asian property developer China Evergrande.

The amount of unique tokens moving on the Ethereum network, known as token circulation, is uptrending. On-chain metrics provider Santiment said:

“Ethereum’s token circulation soared yesterday to its highest level since June 22nd. If signs of ETH utility and tokens being moved continue to rise, the price will generally follow.”

Image

Santiment noted that this was a bullish sign because the price would soon follow suit if token circulation were on an uptrend.

Ethereum has been stamping its authority in the financial market. Reportedly, the second-largest cryptocurrency based on market capitalization recently topped traditional markets.

Ethereum realized capitalization reaches a record high

According to crypto analytic firm Glassnode:

“ETH realized cap just reached an ATH of $168,760,319,570.33. Previous ATH of $166,629,459,955.06 was observed on 20 September 2021.”

Realized market capitalization is a metric calculated by valuing each supply unit at the exact price it last moved on-chain or at the last time it was transacted. 

As a result, it does not calculate coins that remain unmoved because cryptocurrencies can be lost, unreachable, or unclaimed. This contrasts with the standard market capitalization that values every supply unit evenly at the current market price. 

Meanwhile, Ethereum transaction volume hit a monthly high, thanks to continued adoption in decentralized finance (DeFi) and non-fungible tokens (NFTs). For instance, ETH locked in DeFi edged closer to a new ATH of $8 million. 

 

Image

DeFi is founded on blockchain-based smart contracts that fulfil certain financial functions based on the underlying code. 

This industry took the world by storm in 2020 after its value grew by fourteen times. Its presence in the crypto space continues to be felt because it has become a billion-dollar industry valued at $81.85 billion.

Image source: Shutterstock
PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
Click here to access.

Source: https://Blockchain.News/analysis/ethereum-token-circulation-hit-levels-last-seen-in-june-amid-eth-realized-cap-reaching-ath

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Rich Dad Poor Dad’s Author Now Invests in ETH After BTC and Gold

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During a period of major corporate and institutional interest in the crypto industry, nearly 5,000 new tokens have emerged in the last 12 months, averaging over 10 new coins per day, new data shows.

Cryptocurrency Boom of 2021

As can be observed on CoinMarketCap’s homepage, the number of existing cryptocurrencies has recently surpassed 12,000. This is well over the approximately 7,100 coins recorded by the site in September of last year, meaning that at least 4,900 new digital assets have been created in the last 12 months alone.

This represents the largest YoY surge in the absolute number of cryptocurrencies since Bitcoin’s inception. During this time, the digital asset industry achieved a total market cap of over $2 trillion.

Interest in crypto creation is largely driven by Bitcoin’s price gains in the past year, as well as increasing institutional involvement in the space.

As household names like Elon Musk and Jack Dorsey show support for the industry and its possibilities, both creative and financial interest continues to be drawn into the space. This further bolsters the markets, inspiring developers to work on their own cryptocurrencies to avoid missing out on potential gains and demand.


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Furthermore, digital assets have garnered high interest as an asset class for hedging against inflation – especially during the economic crisis created by the coronavirus pandemic. While September of 2020 saw stock markets plunge, cryptocurrencies mostly held their value. This may have inspired even more creators to start investing and developing in the emerging asset class.

Is This a Good Thing for Crypto?

Through increased interest and technological development is crucial to the crypto industry’s growth, an ever-growing number of coins may be counterproductive or even dangerous.

For example, SEC chair Gary Gensler is only more skeptical of the space due to the vast number of tokens in existence. Recognizing that there is no room for thousands of different currencies, he plans to further regulate the industry to protect investors before some of them inevitably collapse.

Indeed, many of these tokens seem like dangerous investments – if not outright scams. Over $25 million were lost to crypto scams among Australians only in the first half of 2021

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Source: https://coingenius.news/rich-dad-poor-dads-author-now-invests-in-eth-after-btc-and-gold-27/?utm_source=rss&utm_medium=rss&utm_campaign=rich-dad-poor-dads-author-now-invests-in-eth-after-btc-and-gold-27

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