Entire Crypto Market Cap Still Hovers Above a Quarter of a Trillion US Dollars

Digital currency supporters can safely say that so far, crypto assets have performed extremely well since the March 12, 2020 market carnage, otherwise known as ‘Black Thursday.’ The entire crypto economy of over 5,000 cryptocurrencies is currently worth $255 billion using today’s exchange rates. Today, BTC is trading for $9,156 per coin and has around $4.8 billion in 24-hour global trades.

Ethereum (ETH) is swapping for $207 per unit and there’s just under $2 billion worth of ETH trade volume on Sunday. The digital currency XRP is still commanding the third-largest position by market cap as each coin is trading for $0.19. The stablecoin tether (USDT) is the fourth largest market valuation today and the USDT market is worth $5.74 billion.

Bitcoin Cash (BCH/USD) Market Action

Bitcoin cash (BCH) lost its footing price wise, as well on Wednesday, May 20, 2020. At that time, BCH was trading for $247 per unit, but today each coin is swapping for $233. The BCH market cap is worth $4.3 billion today and tether recently eclipsed the coin’s market share. In fact, close to 100 million USDT was created on May 23, 2020 according to Whale alert data.

On Sunday morning, 70% of BCH trades are in tether, which is followed by 17.4% worth of BCH/BTC swaps. Additionally the top trading pairs with bitcoin cash include the USD (3.06%), KRW (2.35%), ETH (2.32%), GBP (1.50%), and the stablecoin USDC (0.59%). Bitcoin cash has around $99 million in total global trades on Sunday.

Andreessen Horowitz Predicts a ‘Fourth Crypto Cycle’

Silicon Valley venture capital firm Andreessen Horowitz executives have recently published a blog post called “The Crypto Price-Innovation Cycle.” Chris Dixon and Eddy Lazzarin say that a “fourth crypto cycle” is on the horizon. “Even though crypto cycles look chaotic, over the long term they’ve generated steady growth of new ideas, code, projects, and startups— the fundamental drivers of software innovation,” Dixon and Lazzarin wrote in the post.

“The 2017 cycle spawned dozens of exciting projects in a wide range of areas including payments, finance, games, infrastructure, and web apps— Many of these projects are launching in the near future, possibly driving a fourth crypto cycle.” Just recently it was reported that Andreessen Horowitz raised over $515 million for a cryptocurrency-focused fund.

Golden Cross Decline

Despite the recent “golden cross formation,” BTC prices saw a 3% loss since May 20, 2020. This particular golden cross predicted a bullish scenario for BTC. Essentially, the 50-day moving average (MA) and 200-day MA initiated the golden cross, but the price never followed the traditional northbound outcome. Even though the golden cross came to fruition, the Moving Average Convergence Divergence (MACD) has not shown any bullish signals whatsoever.

Although, it is hard to measure the market with divergence, especially when weighing the options of a reversal. While the 50-day and 200-day MA had shown a definitive golden cross, the market trade volume just hasn’t been enough to push prices forward. Various traders were hoping for some kind of indication from the golden cross event just as they do for the death cross. Unfortunately, the BTC chart indicating the formation of a golden cross, was meaningless this time around.

Source: https://news.bitcoin.com/market-outlook-golden-cross-invalidated-andreessen-horowitz-predicts-fourth-crypto-cycle/

Image Credits: Shutterstock, Pixabay, Wiki Commons, Andreessen Horowitz, Trading View

The post Market Outlook: Golden Cross Invalidated, Andreessen Horowitz Predicts ‘Fourth Crypto Cycle’ appeared first on Bitcoin Singapore.

The digital asset BTC has made headlines today, as the price per unit has once again crossed the $10K zone. After dropping to $3,600 per BTC on March 12, otherwise known as ‘Black Thursday’ the price has since gained over 177%. There is no asset (besides a few other cryptocurrencies), stock, commodity, or precious metal that has experienced a sizable gain such as BTC’s recent run-up. The price gives the crypto asset a $184 billion market valuation, and there’s around $15 billion worth of global trade volume today.

A number of investors believe the rise in price is due to the upcoming halving on or around May 12. The BTC network’s block rewards are halved after this date and miners who find blocks will only get 6.25 BTC as opposed to the former 12.5 coins. The chain halves every four years or every 210,000 blocks mined.

This week, the crypto analytics startup Messari.io and the digital currency exchange Bitstamp, published a report about the crypto asset’s third halving and the implications. Within the research report, the companies explain “miner economics” and how as soon as the BTC network halves, there will be a “50% overnight drop in revenue” for miners. This will cause a lot of attention toward BTC’s price and network hashrate.

“While this overnight drop may not be a shock, given that the halving is known in advance, it doesn’t mean that planning for the halving is straightforward,” the report details. “The amount of new BTC issued every block is only one side of the equation. The other side is bitcoin’s price.” The report concerning BTC’s block reward halving further notes:

Without a 100% price increase to counteract the reduction in new issuance, every miner’s revenue will be impacted significantly. Those with the most efficient cost structures will ultimately stay in business. Those with inefficient structures will likely be forced to shut off their machines once profitability dips below break-even levels. While most miners cannot immediately shut off their machines due to contractual obligations with colocation facilitates and utilities, those with the highest costs to produce new BTC will eventually capitulate and go bankrupt.

With the price of BTC crossing the $10K zone, it helps but a number of speculators and skeptics are more concerned about after the halving. Some theories and estimates suggest that $10K per BTC might not be enough for some mining operations to survive. According to a recent study published by Tradeblock, the price will need to be around $12.5K or above for a great majority of miners. While some speculators assume mammoth prices await investors, others believe the price could drop significantly after the halving. Either way, most cryptocurrency proponents will be watching.

Source: https://news.bitcoin.com/bitcoin-price-touches-10k-amid-2020s-macroeconomic-storm-and-covid-19-fears/

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