Is the bull run over? BTC loses $50,000 as transaction fees surge
April 24, 2021. Summarized by summa-bot.
Compression ratio: 39.5%. 3 min read.
Bitcoin falls below $50,000 for the first time since March, Ether racks up losses after hitting new all-time high, and analysts argue over whether this is the end of the bull market.
BTC’s prized $1-trillion market cap was also lost, and at one point, dominance sunk below 50% — a milestone that hasn’t been seen since 2018. But by the early hours of Friday, as selling pressure heightened, the world’s biggest cryptocurrency succumbed, dipping below $50,000 for the first time since March. Ether, which had managed to hit a new all-time high of $2,641. 09 in the hours before the crash, also wasn’t immune from the sell-offs. Mass liquidations, an overheated futures market, the decline of the Kimchi premium, whales selling and concerns over President Joe Biden’s tax plans may all have been factors in the major correction. PlanB speculates that Bitcoin’s price fall doesn’t mean the endThere’s been no shortage of reaction to Bitcoin’s loss of momentum, with PlanB, the analyst behind the stock-to-flow forecast, insisting that the fall below $50,000 doesn’t mean that the current bull run is over. Pointing out that nothing goes up in a straight line, he tweeted: “#Bitcoin has gone up 6 months in a row, until this month.
This looks like the mid-way dip that we also saw in 2013 and 2017. ”ExoAlpha’s Élie Le Rest also believes that there are reasons to be optimistic, saying: “This kind of market pullback is very healthy as it contributes to deleveraging market participants and builds ground for a more stable growth. ”The next major move in Bitcoin’s price will prove decisive, helping us to determine if this is merely an overdue correction or the opening salvo of the next bear market cycle. Veteran trader and chart guru Peter Brandt wasted little time in making a cheeky observation, writing: “The chances of a correction in cryptos is directly related to the prevalence of laser eyes on Twitter.
Get rid of your laser eyes. ”Bitcoin transaction fees in U. S. dollars near all-time highsIn other signs that history is repeating itself, Bitcoin transaction fees measured in U. S. dollars neared all-time highs recorded in 2017. Data from Blockchair shows the average cost of a BTC transaction hit $58 on Tuesday — approaching the record of $62 set in December 2017. The latest spike in BTC transaction fees comes amid a major decline in the Bitcoin network hash rate, which may have been exacerbated by massive power outages in the Chinese mining hub of Xinjiang. And the spike has also prompted some crypto exchanges to introduce less expensive ways of moving Bitcoin around as a matter of urgency, too. OKEx has now integrated the Lightning Network, while Square’s Cash App has quietly raised the minimum Bitcoin withdrawal to 0. 001 BTC — 100,000 satoshis — markedly higher than the 0. 0001 BTC that was in force previously. “Bitcoin incentivises renewable energy,” agree Elon Musk and Jack DorseyAs crypto traders with furrowed brows were confronted by a sea of red, industry heavyweights were focusing their attention on how to go green. Earth Day 2021 happened this week, and with Bitcoin regularly castigated for the high levels of energy that it takes to keep the network secure, some of the cryptocurrency’s most vocal backers made the case for BTC’s environmental efficiency. A new report authored by The Bitcoin Clean Energy Initiative argues that Bitcoin mining incentivizes the generation of electricity “from renewable carbon-free sources. ”The paper has received support from top crypto luminaries including Square’s Jack Dorsey, Tesla’s Elon Musk, and Ark Invest’s Cathie Wood. Tether is listing on Coinbase ProCoinbase Pro has announced that it is listing Tether on its platform, paving the way for trading pairs linking the ERC-20 version of USDT with BTC, ETH, USDC, the euro, the British pound and the U. S. dollar. This is a rather big deal, and it signifies that the exchange is not concerned about the stablecoin’s previous regulatory issues or the long-running controversy over the validity of Tether’s backing.
I actually think maybe it could be. ”Curtis Spencer, Electric Capital co-founderPrediction of the WeekGuggenheim CIO repeats $20,000 Bitcoin price forecast as BTC doubles since last warningThe chief investment officer of Guggenheim has repeated his warning that Bitcoin will crash to $20,000. Speaking to CNBC, Scott Minerd said: “Given the massive move we’ve had in Bitcoin over the short run, things are very frothy, and I think we’re going to have to have a major correction in Bitcoin. ”It is worth noting that Minerd is adamant that Bitcoin could hit $400,000 in the long run.