Day: March 5, 2021

A major Chinese bitcoin mining hub is shutting down its cryptocurrency operations

A major Chinese bitcoin mining hub is shutting down its cryptocurrency operations

GUANGZHOU, China — China’s Inner Mongolia region plans to ban new cryptocurrency mining projects and shut down existing activity in a bid to cut down on energy-consumption.

Bitcoin is based on a decentralized network, which means it’s not issued by a single entity like a central bank. Transactions, recorded on a public ledger called the blockchain, need to be “verified” by miners.

These miners run purpose-built computers to solve complex mathematical puzzles that effectively allow a bitcoin transaction to happen. The miners receive bitcoin as a reward and that is the incentive.

But because the computers are high-powered, they consume a lot of energy. Bitcoin mining consumes an estimated 128.84 terrawatt-hour per year of energy — more than entire countries such as Ukraine and Argentina, according to the Cambridge Bitcoin Electricity Consumption Index, a project of the University of Cambridge.

China accounts for around 65% of all bitcoin mining globally — Inner Mongolia alone accounts for about 8%, due to its cheap energy. In comparison, the United States accounts for 7.2% of global bitcoin mining.

Not all cryptocurrencies work like bitcoin, however.

Inner Mongolia, located in northern China, failed to meet central government assessment targets regarding energy use in 2019 and was scolded by Beijing. In response, the region’s development and reform commission laid out plans to reduce energy consumption.

Source – CNBC

Bitcoin Consolidates Below USD 50K, Ethereum, Altcoins Extend Decline

Bitcoin Consolidates Below USD 50K, Ethereum, Altcoins Extend Decline

Bitcoin price started a downside correction from the USD 52,500 zone. BTC settled below USD 50,000, but it remained stable above USD 48,000. It is currently (13:30 UTC) consolidating and it might climb back above USD 50,000.

Besides, most major altcoins are showing a few bearish signs. ETH traded below USD 1,550, but it found support near USD 1,525. XRP/USD is back above USD 0.450, but it must climb above USD 0.465 for upside continuation.

Bitcoin price
There was a downside break in bitcoin price below the USD 50,500 and USD 50,000 support levels. BTC extended its decline below USD 49,000 and tested USD 48,500. It is consolidating below USD 50,000 and it seems like the bulls might aim for a fresh increase above the USD 50,000 level.
If they fail, the price could decline towards the USD 48,500 level. The main support is near USD 48,000, below which the price could continue to decline towards the USD 46,500 level.

Ethereum price
Ethereum price failed to stay above the USD 1,600 level and it extended its decline below USD 1,550. However, ETH remained well bid near USD 1,525 and it climbed above USD 1,550. The first major resistance is near USD 1,600, above which the price could revisit USD 1,650.
On the downside, the first major support is near the USD 1,525 zone. The main support is at USD 1,500. Any more losses might call for a move towards USD 1,450.

BNB, ADA, litecoin, and XRP price
Binance Coin (BNB) is down over 5% and it is trading well below USD 250. BNB even traded below USD 242 and it is slowly approaching the USD 232 support. The next major support is near the USD 225 level. To start a fresh increase, the bulls need to clear USD 250.
Cardano (ADA) is down 8% and the price is moving lower towards the USD 1.150 support zone. The next major support sits near the USD 1.120 level. On the upside, the previous support at USD 1.200 might act as a strong support in the near term.
Litecoin (LTC) is now trading well below USD 195 and testing the USD 185 level. If LTC settles below USD 185, there are chances of a drop towards the USD 175 level. On the upside, the USD 195 and USD 200 levels are important hurdles for the bulls.
XRP price is back above the USD 0.450 level and is slowly gaining bullish momentum. If the bulls remain in action, there are chances of a break above the USD 0.465 resistance. The next major resistance is near the USD 0.482 level.

Other altcoins market today
Several altcoins gained over 10%, including ENJ, CHZ, HBAR, MANA, ZKS, THETA, FLOW, IOST, BNT, ICX, EGLD, STX, and TFUEL. Out of these, ENJ is outperforming with strong gains above the USD 1.400 level.

To sum up, bitcoin price is consolidating below USD 50,000. A fresh close above USD 50,000 and USD 50,500 could open the doors for a move towards USD 52,500.

Source – Crypto News

Bitcoin Stablizes With Institutional Support, But Volatility Could Hit in March

Bitcoin Consolidates Below USD 50K, Ethereum, Altcoins Extend Decline

Cryptocurrencies made a strong bounce back as the yield of the benchmark 10-year Treasury bond fell below 1.5% to 1.429% after a week’s surge. On Monday, Bitcoin rose to $49,000 and briefly touched $50,000 while ETH gained over 15%.
Although Bitcoin is trading at 16% lower than its ATH, many assume that Bitcoin is resuming its bull trend. Bitcoin has gained 1200% since its 2018 low. But the high volatility of Bitcoin is what deters investors from using it as a store-of-value. With more institutional investors stepping into the game, it is believed that certain levels of stability will be brought into the market.

In a new report of Citi, Bitcoin is said to be on the path to become “the currency of choice for international trade.” Meanwhile, Goldman Sachs is the next to embrace cryptocurrency. A cryptocurrency trading desk is scheduled to be set up later this month and will provide clients with Bitcoin futures trading service. Clients can also trade non-deliverable forwards through this trading desk.

Following Tesla, Dan Loeb, CEO of New York-based asset management firm Third Point shows interest in investing in Bitcoin and would like to bridge the gap between traditional finance and cryptocurrency.

Bigger Volatility Ahead?
While Bitcoin flipping $45,000 into a support could offer some confidence to traders, $52,000 still poses a hard resistance to crack. March is usually the worst performing month in Bitcoin’s history and the tax season may drive miners to liquidate their coins to cover costs.

Various indicators suggest that hodlers are keener on hodling despite Bitcoin debased 20% in the past week. According to Finance Magnates, the supply of Bitcoin on leading exchanges is at its lowest in three years. On Saturday, Whale Alert recorded two transactions moving 4,509 BTC in total from Coinbase to unknown cold wallets. JP Morgan strategist Nikolaos Panigirtzoglou pointed out that Bitcoin could be facing a liquidity crisis.

“Bitcoin has roughly tripled in the past three months but its liquidity has deteriorated. Market liquidity is currently much lower for Bitcoin than in gold or the S&P 500, which implies that even small flows can have a large price impact,” explained Panigirtzoglou.

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Source –

Source – Crypto News