Markets
How Bitcoin’s Technological Expansion Could Boost Price Growth 5x in 2 Years
- The Bitcoin blockchain is slowly becoming more than just a buying and holding platform.
- Developers have been expanding its functionality, which could lead to new demand.
- Ethereum went through a similar trend, leading to its big rally in 2021, Bitget CEO Gracy Chen told Business Insider.
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Bitcoins 2024 catalytic converters may seem like a thing of the pastbut programmers are fueling future advantages behind the scenes.
For most of its existence, the flagship cryptocurrency has captured the market’s attention as a buy-and-hold asset, and this store-of-value appeal has led to explosive gains. Furthermore, blockchain has not offered investors much else to do.
“Despite bitcoin’s diverse use cases, it is primarily viewed as ‘digital gold’ for inflation mitigation or an alternative currency that allows participants to transact in a decentralized, peer-to-peer (P2P) environment,” he said. a Chainalysis note in March. “It’s not typically seen as the blockchain you can build on.”
This puts bitcoin a step behind certain competing networks, especially Ethereum. On this platform, investors have the freedom to trade different cryptocurrencies or gain exposure to non-fungible tokens and DeFi.
And with Ethereum’s native cryptography now approved for its own set of spot ETFs, some analysts expect these technological advantages to trigger a bull run towards it.
But bitcoin is recovering.
Although programmers have tried for years to expand its functionality, the launch of the Ordinals protocol last year provided new momentum. This system is what allows the blockchain to finally host digital data beyond the bitcoin token, such as NFTs.
Then came the BRC-20 tokens. Built on the Ordinals engine, the protocol allows tokens to be minted and traded directly on the blockchain, and new cryptocurrencies have hit Bitcoin in droves.
“The Ordinals protocol has enabled the growth of memecoins on the bitcoin blockchain, leading to an increase in liquidity within the BTC ecosystem in record time. Since the protocol’s inception, tens of thousands of BRC-20 tokens, with a combined market capitalization exceeding to $2 billion, were issued,” Gracy Chen, CEO of cryptocurrency exchange Bitget, told Business Insider in an email.
Memecoins and NFTs may, for now, appeal more to those looking for fun, but this is good news for price-conscious investors as well, she said. Added to this are bitcoin’s forays into scaling and DeFi solutions, helping to increase demand for transactions.
While key technical differences still remain between bitcoin and ethereum, she said, replicating their functionality could see bitcoin rise fivefold in just a matter of years, Chen said.
This is based on the total value locked, or the amount of assets staked in the bitcoin protocol. Currently, this metric is roughly in line with Ethereum’s position just before it hit a parabolic boom between 2020 and 2021.
In the case of Ethereum, new DeFi functions and new coin launches triggered the seismic rise, and ether jumped 3,702% from peak to trough. For bitcoin, the growing adoption of BRC-20 could be the basis for its own rise – albeit less amplified:
“Despite bitcoin’s higher capitalization, it may not experience as meteoric growth as ETH in 2020, given the absence of a low base effect and stricter regulatory conditions. However, even a rise twice as weak could still result in a fivefold increase in the main cryptocurrency,” Chen wrote in a note.
Since its creation in March, close to 67 million BRC-20 registrations It has been done.
The explosive popularity has increased the profits of cryptominers, who receive a certain fee for minting these assets. While transaction fees have rarely been the main source of revenue, the increase in activity is changing the industry’s mindset, said Brian Wright, co-head of mining at Galaxy.
“We see these events occur, you know, probably not sustainably, but throughout the year, there will be some periods where miners may be more profitable than they thought they would be, just as a result of transaction fees,” he said. O Cerebro Galáxia Podcast in April.
This week saw $722 million worth of Bitcoin spot ETF inflows, including the largest daily inflow in a month.
Cryptocurrency markets rallied on Wednesday, driven by inflows into spot Bitcoin exchange-traded funds (ETFs).
The price of Bitcoin (BTC) is up 3% over the past 24 hours to last change hands at $65,200, according to CoinGecko. Ethereum (ETH) is up 2% and is trading at $3,471. Solana (SUN) and Polkadot (POINT) increased by 4%.
Bitcoin spot ETFs saw $422 million in daily inflows on Tuesday, the highest in the past 30 days, according to Far side data, . The all-time record for a single day was $1.05 billion on March 12.
Among Tuesday’s top contributors, BlackRock’s IBIT led with $260 million in inflows, followed by Fidelity’s FBTC with $61 million. This week has already seen more than $722 million in inflows.
Among the top 100 cryptocurrencies by market cap, Worldcoin (WLD) led with a 28% increase, followed by Helium (HNT) with 20% and Lido DAO (LDO) with 15%.
Worldcoin, a decentralized identity project led by OpenAI CEO Sam Altman, announced is extending the lockups for early investors and team members. This means that tokens will be gradually released through 2029, instead of the original 2027 plan. Token unlocks are generally seen as a negative because they increase supply and early investors can sell their tokens for profit.
Meanwhile, XRP, the token of the XRP Ledger network, jumped 8% after the CME and CF benchmarks introduced new indices and reference rates for XRP.
U.S. stocks faced a downturn on Wednesday. The S&P 500 fell 1%, while the Nasdaq Composite and Dow Jones Industrial Average both fell 2%.
Markets
Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days
Crypto markets appear to have been taken over by the bulls as major tokens have surged above their crucial resistance zone. Bitcoin surged above $65,000 while Ethereum was above $3,500, and XRP, which had remained passive for quite some time, surged over 40% in the past few days to hit $0.6. The uptrend has been captured in most altcoins, with Worldcoin (WLD), Arweave (AR), and Injective (INJ) leading the rally. Here’s what to expect for these tokens in the coming days.
Worldcoin (WLD) Price Analysis
O Worldcoin Price has been trading inside a descending wedge since it marked a new ATH near $12 in the final days of Q1 2024. The recent price action helped the price break out of the upper resistance of the wedge, breaking above the crucial resistance zone between $2.21 and $2.39. Market sentiments have changed, but technicals suggest that the bulls may remain passive for a while, which could offer some room for a bearish pullback.
The price broke out of the wedge with a significant increase in volume, but the current volume suggests that the bulls have taken a step back. Meanwhile, the RSI is about to reach the upper boundary, which could attract bearish forces. Additionally, the DMI has undergone a bullish crossover, but the decline in the ADX suggests that the rally may remain consolidated above the gains. Therefore, the WLD price is expected to maintain a horizontal consolidation between $3 and $3.3 and trigger a fresh rally to $4.4 during the next bullish rally.
Arweave (AR) Price Analysis
Arweave formed a strong base around $25, which helped the rally trigger a recovery during the bearish attack. Mt. Gox and German terror forced the price to fall below $20. However, the recent price action has brought the altcoin within the bullish range and raised expectations of maintaining a decent uptrend for a few more days.
AR price has hit one of the major resistances around $30 to $31.5, which could act as a strong base once overcome. The buying volume is slowly increasing, which could keep the bullish hopes for the rally high. Moreover, the supertrend has just flashed a buy signal, indicating a clean reversal of the trend. Therefore, AR price seems primed to maintain a healthy uptrend and rally above $40. However, if the bulls maintain a similar trend, making new highs above $50 may not be a tedious task for the bulls.
Price Analysis of Injective (INJ)
Injective price has been showing sharp strength since the beginning of the year and hence, the recent turnaround is expected to revive a good uptrend going forward. The bears engulfed the rally to a large extent, but the recent price action suggests that the bulls have regained their dominance. Therefore, INJ price is expected to maintain a strong uptrend with a bearish interference on the way down.
INJ price has surged above the lower support zone and has registered consecutive bullish candles. Although the volume is below the required levels, the OBV is maintaining a sharp uptrend. Furthermore, the Ichimoku cloud lead span B is heading towards the lead span A and a healthy crossover indicates the start of a new uptrend. However, INJ price may be out of the bears’ reach once it secures the resistance zone between $30.77 and $32.12, which seems to be on the horizon.
Ethereum (ETH) supply on exchanges has hit a 34-month high as the asset’s price surpassed the $3,500 mark.
ETH has risen 2.3% over the past 24 hours and is trading at $3,490 at the time of writing. The second-largest cryptocurrency — with a market cap of $419 billion — briefly touched an intraday high of $3,517 earlier today.
ETH Price, Whale Activity, RSI, and Exchange Supply – July 17 | Source: Santiment
Ethereum’s daily trading volume also increased by 7.6% to reach $19.8 billion.
According to data provided by Santiment, the supply of Ethereum on exchanges has reached $19.52 million ETH. This level was last seen in September 2021, when the asset was trading around the same price.
On the other hand, data from the market intelligence platform shows that the number of whale transactions has fallen by 12% in the last day — falling from 8,730 to 7,629 unique transactions per day.
The move shows that the supply of Ethereum on exchanges has been increasing with small deposits rather than large transactions from whales.
Additionally, the ETH Relative Strength Index (RSI) is currently hovering at the 60-mark, per Santiment. The indicator shows that Ethereum is slightly overbought at this price point, but it may not be in a critical position due to its large market cap.
One of the main drivers of Ethereum price increase is ETH spot expectations ETFs in the US Investment products are scheduled to start trading on July 23rd.
Markets
Bits + Beeps: How to Play the ‘Trump Trade’ in Cryptocurrencies After the Assassination Attempt
Also, how much will the Fed cut rates (and when)? What will be the inflows into ETH ETFs? And what is the near future for Bitcoin?
Posted on July 17, 2024 at 12:00 PM EST.
Listen to the episode at Apple Podcasts, Spotify, Capsules, Source, Podcast Addict, Pocket molds, Amazon Musicor on your favorite podcast platform.
In this episode of Bits + Bips, hosts James Seyffart, Alex Kruger and Joe McCann, joined by guest Jack Platts, dive into the market reaction to the recent assassination attempt on former President Donald Trump, analyzing how this event will influence the 2024 US presidential election and the cryptocurrency markets.
They also cover potential rate cuts: Could there be a cut in July? How big could the September rate cut be? Could the decision be influenced by the upcoming election?
They also give their predictions on what percentage of BTC ETF inflows the ETH ETFs will reach, and James talks about what he expects for Grayscale’s ETHE (hint: his outlook would be positive for ETH).
Finally, they delve into what’s next for Bitcoin as the German government runs out of BTC and Mt. Gox distributions begin. Just now?
Program Highlights:
- Whether Trump’s shooting decided the election and whether the event caused a “flight to safety”
- How election markets are becoming a place to watch election probabilities and whether cryptocurrencies “lean right”
- Whether rate cuts will occur in July or September and by how much they will cut: 25 bps or 50 bps
- How Joe sees the relationship between global liquidity cycles, rate cuts, and the potential rise of Bitcoin
- What are the new updates about Ethereum ETFs and their expected launch?
- Why Solana Hasn’t Performed Significantly Better Since Trump News
- What Market Breadth Indicates About the Current Market Rally and the Impact of Rates on Small Caps
- Everyone’s predictions on ETH ETF inflows and how much outflow we’ll see on Grayscale’s ETHE
- What’s Next for BTC After German Government Exits Bitcoin and Mt. Gox Giveaways Starting This Week
Hosts:
Guest:
- Jack PlattsCo-Founder and Managing Partner of Hypersphere Ventures
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Bitcoin Big Bang is near – Lyn Alden emits a red code.
Once this happens, Bitcoin is pushing towards $ 200k without brakes – Matt Hugan
The next Bitcoin event will be so large, it will make 2021 look like heating – James Lumo
I’m 100% sure that Bitcoin will challenge the financial rules and soon reach $ 1 million
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