Cryptocurrency

This analysis is based on the latest Q4 2023 results and major developments in the industry from January to April 2024.Following the publication of Cantor’s previous report in January, Bitcoin surged from $40,000 to a new all-time high of about $73,000. This increase is largely attributed to the success of newly approved Bitcoin Spot ETFs. Despite initial gains for miners, the sector began to underperform the token itself as the halving drew near, shifting investor focus and funds towards ETFs due to their direct exposure to Bitcoin’s price movements.Cantor’s analysis includes a detailed ‘all-in’ cost-per-coin metric which integrates all operational costs associated with mining a single Bitcoin. This includes electricity costs, hosting fees, and other cash expenses. For Q4 2023, the best-performing miners in terms of unit economics were Bitdeer Technologies Group (NASDAQ:BTDR), Cipher Mining (NASDAQ:CIFR), and Hut 8 Corp (NASDAQ:HUT). These miners were able to keep costs low through efficient operations and strategic revenue streams such as cloud hash and hosting services.Conversely, the worst-performing miners, including Argo Blockchain PLC ADR (NASDAQ:ARBK), Riot Blockchain (NASDAQ:RIOT), and Bit Digital Inc (NASDAQ:BTBT), faced higher costs primarily due to inefficient operations or high energy costs.With the halving set to reduce Bitcoin mining rewards by half, miners’ cost-per-coin is expected to double if the network hash rate remains unchanged. This “stress test” indicates that CleanSpark (NASDAQ:CLSK), Riot, and Cipher are likely to be the best-positioned miners immediately following the halving due to their efficient cost structures and robust operations. However, it’s projected that three miners— Argo Blockchain, Stronghold Digital Mining Inc (NASDAQ:SDIG  and Marathon Digital (NASDAQ:MARA)—will struggle to mine profitably immediately after the halving, given their high operational costs relative to the current Bitcoin price. Cantor highlights that Bitcoin miners act as a call option on Bitcoin, offering low-cost access to newly issued tokens and potential for energy monetization, which provides downside protection. With improved operations since the last bull run, investing in Bitcoin mining stocks could be a strategic move for investors anticipating another bull run, despite the halving’s impending impact on miner profitability.The halving, which will reduce the reward for mined blocks, makes understanding each miner’s cost structure critically important.Cantor’s all-in cost-per-coin model accounts for both electricity costs and total other cash expenses related to mining a single Bitcoin. Adding these figures together, the company concludes that the total cost to mine one Bitcoin would be $17,696, considering both electricity and other operational costs. With many miners moving from profitability to breakeven or loss post-halving, Cantor advises investors to focus on miners with positive free cash flow who can sustain operations without needing to raise additional capital. This approach is more resilient and profitable in the long run, especially as these miners are better positioned to leverage the next Bitcoin bull run effectively. More

Bitcoin rose 3.7% to $64,977.3 over the past 24 hours by 08:05 ET (12:05 GMT). The token had slumped as low as $59,693 when reports of the Israeli strike first broke on Friday morning.Bitcoin’s fall below $60,000- which is considered a key support level for the cryptocurrency, signaled that risk appetite, especially towards crypto markets, remained fragile.This was also evidenced by traders pivoting into the Japanese yen, the U.S. dollar and gold in the immediate aftermath of the Israeli strikes.Multiple media reports linked explosions seen across Iran earlier on Friday to drone attacks by Israel. While Iran’s major nuclear facilities appeared to be undamaged by the strikes, the move marked a potential escalation in the conflict and could spill over into a war across the Middle East.After its sharp decline, the market’s focus shifted back to the upcoming halving event, elevating the flagship cryptocurrency close to $65,000 on the day.The halving event, which is expected to take place with the generation of block no. 840,000 on the Bitcoin blockchain, is set to take place over the weekend.The halving will effectively cut the reward for mining Bitcoin by half, and is expected to reduce the rate at which new Bitcoin is generated. The event ties into the notion that declining supply of Bitcoin will push up its price, but past halvings have yielded few near-term gains.JPMorgan analysts said that Bitcoin was still sitting in overbought territory after a strong run so far this year, and could see more price declines after the halving.The recovery in Bitcoin prices spilled into other major cryptocurrencies as overall sentiment improved after recent headwinds.World no.2 crypto Ethereum rose 2.2%, while XRP climbed 1.3%. Solana popped 6%.Other major altcoins were also trading above intraday lows, having recovered from an initial drop in response to the Israel-Iran news.On Thursday, U.S.-based spot bitcoin ETFs experienced a continuation of their recent withdrawal trend, registering outflows totaling $4.3 million.This marked the fourth consecutive day of net outflows, occurring just before the much-anticipated halving.Since April 12, these ETFs have seen more than $319 million in cumulative net outflows, according to provisional data from Farside Investors.A significant portion of these withdrawals can be attributed to Grayscale’s Bitcoin Trust (GBTC), which reported $90 million in outflows on Thursday alone.These losses were somewhat mitigated by inflows into other funds; Fidelity’s FBTC and BlackRock’s IBIT saw some investments, although the inflow to BlackRock (NYSE:BLK)’s IBIT was notably lower at $18.8 million, a sharp 93% decrease from its monthly peak of $308.8 million on April 5. More

Dalio points out what makes good money: a means to trade and a place to park wealth, accepted globally. Right now, the top contenders are the dollar, euro, yen and Chinese renminbi. But here’s the thing: these are all tied to debt. That means when you are holding onto these currencies, you are actually holding onto promises of payment — debt liabilities.He highlights a simple truth: when the risk is high that debts will not be paid back or will be paid back in money that has lost value, confidence wanes. If a country is swimming in too much debt, its central bank might just print more money to ease the pressure, leading to devaluation.Bitcoin/USDT Chart by TradingViewGold is different. It is not backed by debt. It is more resilient to the devaluation that hits cash and bonds when inflation rears its head. Central banks and investors like gold because it does not wilt under debt defaults and inflation — it is actually the third-most-held reserve after the major currencies.Now, cryptocurrencies are like gold in that they are nondebt monies too. While some might argue that gems or art serve a similar purpose — being nondebt, portable and accepted storeholds of value — Dalio’s focus is on recognized financial safeguards.When the system works fine, with no debt or inflation crises, and governments manage their monetary duties without devaluing their currency, then financial assets are solid. But when trouble bubbles, Dalio says gold is a good asset to own because it is a reliable hedge — a diversifier in his own portfolio. He is careful to clarify, though, that he is not giving direct investment advice, just offering his take on the markets.This article was originally published on U.Today More

The Telos Foundation today announced that it will work with Ponos Technology, the leading Zero Knowledge Proof (ZKP) research and development firm, to develop an end-to-end optimized, hardware-accelerated Ethereum Layer 2 network featuring SNARKtor, the Telos-developed decentralized recursive proof aggregator. The teams will take a hardware-software co-design approach that will help unlock new possibilities in terms of massive scalability, greater data protection and trustless interoperability for Ethereum users globally.Ponos Technology provides end-to-end optimized solutions for ZK proving, which is essentially achieved by leveraging FPGA acceleration, thus maximizing business value streams through cost-performance optimized computation by matching hardware-software co-designed modules and dedicated execution environments. The team includes a unique blend of experienced scientists and highly skilled industry experts that have accumulated deep technical knowledge on all aspects of ZKPs.“Zero Knowledge technology is going to become increasingly mainstream and can open the door to increased efficiency and security across so many industries,” said Slobodan Lukovic, CEO and co-founder, Ponos Technology. “Similarly to AI, steady enhancements in algorithms coupled with advancements in underlying hardware infrastructures will enable commoditization of ZKPs and result in the technology being widely adopted in the near future.”Telos will also be working with several other new partners during the development cycle, including:“Fundamentally, Ethereum will need to take a hardware-software co-design approach in order to realize zkEVM performance at tremendous scale,” said Lilic. “That’s the approach we’re taking with Ponos Technology and our growing partner network as we build a hardware-accelerated zkEVM L2. We believe that this formula, alongside the exciting work our team is doing with recursive proofs via SNARKtor, is going to offer compelling services to the Ethereum community and beyond.”Telos was created in 2018 through a fair drop network launch that did not include an ICO nor token sale. Over the past six years, the Telos Foundation has helped steward the development of two primary networks – Telos EVM and Telos Zero – and will now also focus on building a highly performant and succinctly provable L2 zkEVM.Additional details on the Telos L2 will continue to be announced in the lead up to EthCC in July, for which Telos is a primary sponsor. Live in Brussels from EthCC, the Telos team plans to broadcast its first-ever demo of SNARKtor to the world as a precursor to the official launch of the Telos L2. About TelosTelos is a decentralized blockchain ecosystem that includes Telos EVM, which tested as the fastest Ethereum Virtual Machine globally, and its high-speed consensus layer, Telos Zero. The project is also focused on expanding its capabilities with novel Zero Knowledge technology through the development of a hardware-accelerated Ethereum Layer 2 network powered by SNARKtor, which promises to enhance privacy and scalability for global use cases. Telos is overseen by The Telos Foundation, an ownerless foundation dedicated to advancing the Telos blockchain network and its community.ContactThe Telos Foundationpress@telos.netThis article was originally published on Chainwire More

This unsettling movement could have been seen as a dark cloud, but there is a silver lining that has the crypto faithful watching the calendar: the Bitcoin halving. Slated for around April 20, this event is historically known for shaking up the market in unexpected ways. The halving could tighten supply and potentially swing the pendulum back in favor of higher prices.BTC/USDT Chart by TradingViewLooking at the charts with a magnifying glass, we can see that Bitcoin’s next support test lies at $58,572, just a stone’s throw from where it is currently. If it fails to hold this line, the descent might continue toward the $50,319 area, where the next safety net lies.But let’s not write off Bitcoin just yet. If it can rally back and crack through the $60,000 ceiling again, it might just push back to its recent comfort zone. The first sign of recovery will be reclaiming ground above this critical level, with eyes then set on the $68,789 marker — a formidable resistance that could block the path to its previous highs.We have spotted some levels that could tell us where things might head. Right now, Ethereum is testing the waters below the $3,000 line. If it does not climb back up soon, the next floor might be around the $2,800 mark, a point that could offer some resistance to the fall. On the chance that Ethereum finds its feet again, watch out for the $3,200 ceiling — it is the next battle to win for recovery hopes.There is a real chance that ETH could keep dropping, especially if it does not get back above $3,000 quickly. But with the halving in play, it is too early to count it out. A surge of inflows to the market might change the situation in favor of bulls quicker than anticipated.Key indicators that many traders look to for signs of healing, like RSI and moving averages, have been breached. Currently, Solana struggles to find a proper footing for the price.The situation looks tense. With the support at $130 now a thing of the past, the next checkpoint is at $100. Yet, not all hope is lost. There is still a chance for a turnaround. Growth could be around the corner if Solana manages to rally and break through resistance levels, particularly around $150, which could act as a ladder to climb back up from its current position.The future of Solana is not set in stone. If it finds strength and pushes above these resistance levels, it might just regain its previous momentum. But if it continues to fall, the drop below $100 could be a hard reality check for the coin and its investors.This article was originally published on U.Today More

Despite this apparent cooling off, Eric Balchunas, a senior ETF expert at Bloomberg, has offered insights that challenge any premature conclusions about the demise of the Bitcoin ETF fervor. Balchunas suggests that such fluctuations are part of a natural ebb and flow within the ETF market, particularly following a period of rapid growth. He emphasizes that the recent net outflows represent a mere fraction of the overall picture, with inflows persisting in other ETFs, notably IBIT, which has maintained an impressive streak of inflows for 67 consecutive days.IBIT, in particular, has garnered attention for its sustained performance, ranking 13th in all-time inflows among over 3,000 ETFs. Its total net flows now stand at $15.3 billion, cementing its position as a leading player in the ETF landscape.While recent headlines may paint a picture of waning interest in Bitcoin ETFs, Balchunas’ analysis offers a counterpoint, suggesting that the hype surrounding these investment vehicles is far from over.This article was originally published on U.Today More

These statements, believed to have been made by Nakamoto before exiting the social media scene, have sparked renewed interest and reflection on the significance of the halving event.Nakamoto bowed out of the cryptocurrency scene three years after publishing Bitcoin’s white paper and mining the genesis block. On April 23, 2011, he emailed another Bitcoin developer, informing him that he had “moved on to other things.”As the Bitcoin community counts down the final hours to the much-anticipated halving event, a sense of reflection permeates the air. Oklink says the current countdown to the Bitcoin halving event is one day, 11 hours.Galaxy’s tweet and report on the Bitcoin halving event echo Satoshi’s words: “The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust.” – Satoshi Nakamoto, Feb. 11, 2009. In its report, Galaxy stated that Satoshi programmed the halving function on Bitcoin as a countermeasure to the ongoing debasement of fiat currencies, which prompted the reflection on this particular Satoshi Nakamoto comment. On April 20, 2024, Bitcoin is expected to perform its fourth halving at block 840,000. Following this, the Bitcoin block reward will decrease from 6.25 to 3.125 BTC. As a result, Bitcoin’s annualized issuance rate will fall from 1.7% to about 0.85%. A total of 93.7% of the total Bitcoin supply will be in circulation at the time of the event. These facts demonstrate that Bitcoin’s monetary policy is fixed, and each halving confirms its lifespan once more. Halvings will continue, but stakeholders might not be bailed out by the financial system. The impending halving, scheduled for April 20, 2024, underlines these fundamentals and serves as a reminder to the market of Bitcoin’s unique features.”If you don’t believe me or don’t get it, I don’t have time to try to convince you, sorry,” Galaxy Research echoed one of Satoshi Nakamoto’s statements that dates back to July 29, 2010.This article was originally published on U.Today More

This article was originally published on U.Today More