The week was truly bullish. The main news of the week is Bitcoin. The new bullish roar is being heard in every news feed and the market is optimistic. Against this background, it is worth mentioning some news that should delight everyone who owns BTC in the United States! After the exodus of miners from China, the United States became the industry leader. Data from the Cambridge Center for Alternative Finance shows that China’s share of global computing power for mining BTC has dropped to zero – in 2019, the country accounted for three quarters of the world’s hashrate. The share of the United States in recent months has increased from 17% to 35%. China made a mistake, and the US took advantage of it.
What else is characteristic of the modern market? Do not get tired of analytics, they are more important than ever when we are experiencing such an upswing in the market! According to a study by the consulting company Capgemini, within two years the share of users who use digital currencies in transactions will increase from the current 10% to 45%.
Analysts surveyed 6,300 clients and 210 payment system executives in 44 countries around the world, as well as studied data from the IMF, Bank for International Settlements and the World Bank.
The main drivers of digital asset adoption will be:
– People’s reluctance to pay high commissions
– The need for fast cross-border payments
– Adding cryptocurrencies by large companies as a payment option.
Of course, you can’t do without confrontation, regulators are very concerned about the security and governance of cryptocurrency. This is why leaders are united in the “struggle for governance” and regulation. The Big Seven (G7) provided guidelines for CBDC development. The finance ministers and central bank governors of the G7 countries outlined recommendations for central bank digital currencies (CBDCs), key messages:
– CBDCs must not harm monetary and financial stability
– Any CBDC must be based on a public commitment to transparency, rule of law and sound economic governance
– The central bank currency should complement cash and be pegged to existing payment systems
– CBDC must meet strict reporting standards
– Digital currencies of central banks must meet strict confidentiality standards (how?)
– CBDC needs to be made cheaper, safer and faster for regular users
– CBDC should not be used to promote crime
– The power consumption of any CBDC infrastructure should be as efficient as possible.
Bitcoin price analysis
At the beginning of the week, Bitcoin started at $54.7k. At the time of writing, BTC is holding at $61k with a 24-hour trading volume of $45,453,186,412.55. The dominance of BTC in the market is 46.70%.
Following an impressive rally from the September lows, the market has managed to hold onto the gains whilst on-chain activity has commenced a welcome climb higher. Active Entities, the count of individual participants on-chain each day, has grown 19% to this week, reaching around 291k active entities per day. This value is on par with counts from late 2020 at the beginning of the last bull run.
Along with an elevated number of market participants, the typical coin value of transactions has also increased. Since mid September, the median transaction size has risen to over 1.3 BTC. The last time the Bitcoin network saw a median transaction size above 1.6 BTC was March 2020 during the liquidity crash.
To further support the constructive increase in on-chain activity, the supply held by Long-Term Holders (LTH) is showing no signs of slowing down.
Also, the CEO of a US hedge fund in a report to investors said that after “following a period of temporary frenzy” that has been linked to Chinese cryptocurrency bans and heated debates about the environmental impact of Proof-of-Work, Bitcoin has now entered a new bull market.
But Dan Morehead noted that there is an event that could reverse the uptrend – the launch of the Bitcoin ETF. We look forward to the next correction!
Ethereum price analysis
Despite BTC’s bullish sentiment, there is no expected surge on the Ethereum network. We still haven’t broken the $4k psychological barrier. At the beginning of the week, the price was $3853, and at the time of writing, it’s $3865. Meanwhile, The current market dominance of ETH is 18.36%.
What’s new with ETH?
After the London update on August 5, 500,000 ETH was burned with a total value of $ 1.76 billion, an average of 5.2 ETH destroyed per minute.
Miners continue to extract maximum profit from commissions, and also continue to accumulate coins – their balance is now 533,000 ETH (0.45% of the issue).
TOP CRYPTO NEWS
- An American senator proposed to mine Bitcoin with unused energy. Ted Cruz said that Texas burns huge volumes of natural gas due to the lack of transportation equipment — it can be used to mine BTC, as a result, the connection of miners will immediately have a beneficial effect on the environment, and the excess gas will get real use. Formerly Texas:
– Allowed banks to store their clients’ cryptocurrencies
– Passed a bill that recognizes Bitcoin and other digital assets
– Gave the green light for the construction of industrial mining farms (half of the Chinese are already in Texas).
- The international airport in Venezuela will provide an opportunity to pay for air tickets and other services using cryptocurrencies.
- Switzerland is offering to make Bitcoin a reserve asset, similar to gold. The think tank 2B4CH proposed to make Bitcoin one of the reserve assets of the Bank of Switzerland along with gold, and reflect this in the Constitution. In order to put up an initiative for a vote, it is necessary to collect at least 100,000 signatures. At the same time, the founder of 2B4CH said that even if there are not enough signatures, discussions aimed at informing local citizens about cryptocurrencies will be held on this issue, which will already become a success.
- Vitalik Buterin stated that Ethereum will surpass Bitcoin in aggregate market value and as a means of preserving capital.
- The Mayor of Miami said that city civil servants will be able to receive their salaries in BTC, and city residents will be able to pay taxes using digital currency.
- How does a startup supply the entire city with heat from bitcoin mining? North Vancouver, British Columbia, will be the world’s first city to be heated by bitcoin mining. The heat source will be introduced in 2022 and will prevent 20,000 metric tons of greenhouse gas per megawatt from entering the atmosphere compared with natural gas. The company uses an “immersion” technology that captures the heat generated in mining and goes to hot water utilities known as “District Energy,” which is then distributed to the customers, MintGreen’s CEO, and Colin Sullivan. Everything was explained in an interview.
- Russian President Vladimir Putin is allowing the use of cryptocurrencies as a means of calculation and accumulation. He noted that bitcoin has theright to exist, despite the fact that it is “not yet backed by anything.” At the same time, Putin does not believe that cryptocurrency is worthless.
This is all the news, for now. We will continue to keep you informed of all the main events of the crypto market. This article is for informational purposes only and does not provide any financial advice. Stay tuned to our wallet, enjoy the usable interface and transaction security, and check back for updates and news on Twitter, Telegram, Facebook, TikTok and LinkedIn. Let’s learn the cryptocurrency market together step by step!