Markets up to date: bitcoin recovers after hash rate drop

Sandra Loyd

Markets al día is an exclusive summary of the news that moves the bitcoiner economy. It is sent in advance by email to a list of subscribers and then published every Monday on CriptoNoticias. If you want to have the information in advance, subscribe to the list here.

The week that ended this Sunday was quite busy for the bitcoin and cryptocurrency market. In this period, Coinbase’s entry into Wall Street was completed, and a new all-time high was recorded for BTC and other cryptocurrencies. There was also a noticeable drop in the Bitcoin hash rate over the weekend , in China’s Xinjiang province, leading to a 14% decline in the price this Sunday.

On Wednesday, April 14, the expected inclusion of Coinbase in Nasdaq took place, a fact reported in CriptoNoticias. The exchange is traded through the COIN stock. Its price started at USD 400 and then fell and stabilized near USD 340. Among the investments highlighted in the exchange, ARK Invest bought 750,000 shares of Coinbase last Thursday, which we reported in this medium, which is currently equivalent to about USD 255 million.

The inclusion of Coinbase in Nasdaq contributed to the establishment of new historical highs, both for bitcoin and for ether, commented on this past Thursday by CriptoNoticias. The bullish momentum spread to the entire cryptocurrency market, which surpassed 2 trillion in market capitalization. On the other hand, the trend of reduction in the dominance of bitcoin is confirmed, which went from 70% at the beginning of the year, to its current value of 54.44%.

After the fall in the price of bitcoin this Sunday, caused by the abrupt decrease of the hash rate, the first cryptocurrency registered a recovery, from a low of USD 51,500, as seen in the four-hour BTC price chart, until the day closed above US 56,000.

Before the drop in the hash rate, bitcoin recorded corrections from its all-time high on Wednesday the 14th. Source TradingView.

Despite the trend This last week’s bearish trend, bitcoin maintained its market capitalization above a trillion dollars , even when it was close to USD 51,000.

The reduction in the supply of bitcoin is a bullish signal

Despite the recent price drop , the fundamental parameters of bitcoin remain. Analyst Willy Woo reiterated that the reduction in the supply of BTC in the market continues, from exchanges to cold wallets in the hands of long-term holders . This implies that we would be on the verge of a new bullish momentum for bitcoin, says Woo.

The miners have already gone from a deficit in their operations (in red), to accumulating savings (in green). Source: @woonomic on Twitter.

The miners are, according to Woo, above the profitability point, allowing them to accumulate BTC. This also contributes to the reduction in the supply of BTC.

Featured Tweet of the Week

The major tech companies took twice or four times as long as Bitcoin to reach a trillion dollars in capitalization. Source: @documentingBTC on Twitter.

Retweeted by Michael Saylor, CEO of MicroStrategy and Bitcoin evangelist in the corporate world, @DocumentingBTC’s tweet places on a graph the years required by MAGA companies (Microsoft, Apple, Google and Amazon) to reach a trillion dollars in market capitalization. Apple was the first to achieve the milestone, and it took 42 years to inaugurate the trillion dollar company club.

Microsoft took two more years, since its founding, to exceed in value one billion of dollars. Amazon and Google, more agile in the digital world, took half the time than their predecessors to enter the select club. Bitcoin, for its part, entered the exclusive group of billionaire “companies” this year, just 12 years after its birth. How could this teenager accomplish that feat? The answer may lie in one of HG Wells’s Three Laws of Technology and the Future: “Any sufficiently advanced technology is indistinguishable from magic.”

Big banks continue to support bitcoin

In new statements favorable to the first cryptocurrency, the largest investment banks in the United States continue to send messages of support to bitcoin, that they could have an echo among the investors that make up their respective clienteles.

JP Morgan, for example, sees a promising future in the bitcoin derivatives market, whose returns in futures and options five times the returns annual fiat currency market, according to a study by that bank, reviewed by this medium. Goldman Sachs goes a bit further by labeling bitcoin as an important asset for the future of global financial systems.

The interest in bitcoin ETFs

VanEck, a global investment manager, launched its first ETF of bitcoin, cryptocurrency and digital assets companies, which it called VanEck Vectors (or DAPP, for its ticker on Nasdaq). It is a new equity fund, reviewed by CriptoNoticias, which provides exposure to companies involved in the mining, hardware, exchanges, custody, commerce, and payment gateways sectors, among others. In Canada, which has already managed to get ahead of the US when it comes to issuing bitcoin ETFs, a reverse ETF was launched on Thursday 15th, so named because it allows investors to make money when bitcoin falls in price.

The ratification of the appointment of Gary Gensler as the new president of the SEC, on the other hand, could be a factor of greater flexibility in the consideration of ETF applications of bitcoin introduced before that commission. Gensler is part of a group of new members of the SEC considered favorable to bitcoin, as reported by CriptoNoticias.

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