Bearish(Nuanced)BNBBUSD

3/28/2023 on

BUSD exchange balance has fallen further by another 500 million following the CFTC lawsuit

The recent news about the CFTC suing Binance and its CEO CZ seems to have had an impact on the BUSD exchange reserves. According to Crypto quant Data, the BUSD exchange reserves have dropped by 500 million since the news broke. This development is not surprising given that Binance is a major player in the cryptocurrency space, and any regulatory action against it is likely to affect its associated projects and partners. It remains to be seen how this lawsuit will play out and what the long-term implications will be!  

BTCBitcoinBullish(Nuanced)Bitcoin

3/19/2023 on

THE CURRENT STATE OF MARKET

Despite recent rallies, there has been a significant drop in the estimated leverage ratio for BTC margined Bitcoin futures. A more cautious approach among traders and suggests that the market is not yet heavily influenced by latecomers who tend to use excessive leverage. Another important metric to consider is Long/Short Liquidations, as it provides insights into market sentiment. In October 2022, when the price of BTC was trading around $15,500, we observed a dryness in Short liquidations. However, as the price started to make a sharp push upward, we saw $80 million in Short liquidations at the start of 2023, indicating the number of traders who were short. We are currently seeing a similar trend, with $80 million in Short liquidations following the break of the $26,000 price point. Notably, there are no major long liquidations nearing the $25/$30 million range. As we monitor this metric, we can gain a better understanding of market sentiment and potential price movements. #Bitcoin #Crypto #OnChainMetrics The current on-chain metrics outlook for Bitcoin shows a slight positive bias, with not much heavy short positioning and less involvement of leverage. Short positions are getting rekt as the price breaks new highs, while long liquidations stay within the normal range. the ongoing banking crisis creates more risks in the market, and it will be interesting to see how the US deals with this situation and how the market reacts. So far, the banking crisis has proven to be positive for crypto, as more investors shift funds into the crypto economy..    

Bearish(Nuanced)BTCBitcoinBitcoinSOLSolanaSolana

1/14/2023 on

Open Interest Dips: A Sign of a Bearish Turn for Bitcoin?

Key Summary: 1- Bitcoin's Best Week : A Defiance of Negative Market Sentiment 1- Biggest Week for Crypto is up more than 11% so far this week 2- And open interest of Bitcoin starts to decrease It's a promising start to the new year for the tokens, which in 2022 lost more than 60% in its second-worst annual performance on record. Solana tokens are up 60% on a cumulative basis and are ranked as the top sector abroad. While the rally in bitcoin is becoming the most hated rally where many miss out and watching from the sidelines, it starts to hate the rally. On the other hand, we saw $700 million shorts liquidated in just a few hours after Bitcoin breaks $21,000. However, Open Interest for Bitcoin starts to drop again, (Graph;1 below) indicating a correction or reversal in bitcoin prices. It would be interesting to see where the market leads in the next few coming days and weeks. I would suggest investors and traders to keep an eye on open interest, which is currently starting to turn. OI is one of the metrics that traders and analysts often use to gauge the market sentiment and predict price movements. That's it for now, until next time; Crypto Alliance  

BTCBitcoinNeutralBitcoin

6/24/2022 on

So What if the Revenue From Bitcoin Mining is Low?

Bitcoin miners are experiencing record-low Revenue. Miners earn Revenue from two sources: protocol-integrated subsidies and transaction processing fees. However, Bitcoin miners rely heavily on block subsidies to generate revenue; block subsidies account for more than 90% of their revenue. Since August 2021, their monthly revenue has consistently exceeded $1 billion, but in May-June 2022, it fell below $1 billion. Therefore, maintaining Bitcoin's security (approximately measured by total miner revenue in USD) at current levels over the long term is contingent upon (1) generating more aggregate transaction fees, via the network, (2) sustained increases in BTC's price, or (3) lower mining costs or a combination of these three factors. For instance, if Bitcoin's total transaction fees remain unchanged, the BTC price must double every four years for miner income to remain constant. It would be interesting to see how miners tackle it if the BTC price slips below $10k.  

ETHEthereumBearishEthereum

6/23/2022 on

Ethereum hash rate falls as profitability declines

Since April, the hash-rate of Ethereum has dropped by 10% because mining has become much less profitable. Over the past three months, the price of Ethereum has trended downwards from 3,500 to a low of 900. The drawdown in prices means that miners now earn less in dollars. The triple toxic mix of reduced income, increased operating costs, and the impending merge has caused some miners to stop their mining operations. This means that miners have to sell their balances to pay for mining and other costs of running their business. It is likely that many newly started mining operations will close down or be acquired by some of the larger, more established ones. It would be interesting to see how miners tackle this in upcoming days if the (BTC-ETH) price dropped more.