Weekly Roundup: AI and Bitcoin Mining Meet in Texas

Leonardo Perez
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Weekly Roundup: AI and Bitcoin Mining Meet in Texas

A new week concludes for the dynamic world of digital currencies and this time with good news for the price of BTC.

The price of Bitcoin is approaching 30K again while the mining business takes new steps in its unification with AI. Along with this AI news, other notable events also occurred that translate into advances in the mining industry. It was learned that the giant Marathon firm has Fidelity as custodian of its funds. Additionally, Celsius resumed mining activities several months after filing for bankruptcy.

This week, the biggest news was the rapprochement between AI and Bitcoin mining in a Texas data center. However, it was not the only news of interest included in this mining summary.

AI and Digital Mining Meet in Texas Data Center

Applied Digital, a blockchain infrastructure and artificial intelligence (AI) provider, launched its new data center and emulates Bitcoin mining firm Riot Blockchain. This installation marks the company’s third blockchain hosting installation in North America. It will also provide a planned total of 480 MW of hosting capacity.

For its part, Riot Blockchain has a 1 GW facility in the same state. Despite growing mining capacity, Applied is moving away from mining and focusing its efforts on high-performance computing. This would be more profitable per unit of energy.

Despite this transition, investors are still not completely convinced, as Applied Digital shares fell 5.3% after the announcement. The shift towards high-performance services and AI may be a sign of changing trends in the cryptocurrency industry.

Part of Marathon’s BTC Will Be Custodied by Fidelity

Bitcoin mining company Marathon Digital announced that it will use Fidelity Digital Asset as its second custodian for its digital assets. Historically, Marathon had held all of its bitcoins with a single provider. However, in order to diversify their treasury management strategy, they decided to add a new enterprise-level custodian.

The company plans to add more custodians in the future as they are generating over 1,000 BTC per month. In that sense, they believe that it is an opportune time to diversify the custody of their assets. Custody plays a key role in the world of cryptocurrencies and other markets. This allows companies to entrust their digital assets to third parties for their security and management.

This move comes after several custodians, including Fortress Trust, fell victim to cyberattacks that resulted in the theft of digital assets. The theft led Fortress Trust to seek a sale of the company to Ripple, a blockchain technology firm, although the transaction ultimately fell through.

Sazmining Opens Mining Center in Paraguay

Sazmining opened a new 100% renewable energy facility in Paraguay. This new facility will obtain its energy from the Itaipu dam, the largest in the country and the most expensive structure in the world.

Sazmining president Kent Halliburton said that Paraguay was selling 5 gigawatts of energy at a loss to Brazil due to its unique hydroelectric power generation. By purchasing excess energy from Itaipu, Bitcoin mining becomes a boost for Paraguay’s economy.

Halliburton explained that Sazmining gets all of its power from the dam, meaning the new facility is powered by 100% renewable energy. Although Texas is known as a strong Bitcoin mining sector, Halliburton believes that Paraguay could become “the new Texas.” The latter due to its excess energy. However, he noted that the infrastructure in Paraguay is still less developed in comparison.

By Leonardo Pérez

Bitcoin Daily Chart Indicates Imminent Liquidation, Analyst Says

Audy Castañeda
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Bitcoin Daily Chart Indicates Imminent Liquidation, Analyst Says

Crypto analyst Ali Martinez believes that Bitcoin will soon lose all recorded gains and experience a price drop unless a certain condition is met.

Popular crypto analyst Ali Martinez has painted a negative picture of the possible Bitcoin price trajectory in the next 24 hours. In the last day, the leading cryptocurrency rose 0.7% and briefly traded above the $30,000 mark. However, Martínez believes that the cryptocurrency market leader will soon lose all of these recorded gains and experience a price drop unless a certain condition is met.

Analyst Points to $31,560 as Crucial Zone for Bitcoin Traders

On Sunday, Ali Martinez posted on X in an attempt to gauge the formation of a possible head and shoulders pattern on Bitcoin’s daily chart. Generally, these patterns indicate that market bulls are struggling to push the price of an asset higher.

Martínez claims that the daily BTC indicator chart points to an incoming price drop during the next day. He noted that the TD sequential indicator, designed to identify potential trend reversal points, displays a green 9 candle, which can be interpreted as a potential sell signal.

His whole post on X goes like this:

“There’s a lot of talk around a potential head-and-shoulders pattern forming in #Bitcoin daily chart. Let’s dissect it!

The $BTC daily chart hints at a possible sell signal emerging tomorrow, based on the TD Sequential indicator flashing a green 9 candlestick. Not to mention, the RSI reached 74.21 — a level triggering sharp corrections since March.

An impending price correction appears to be on the horizon unless #BTC manages to clock a daily candlestick close above $31,560.”

The veteran crypto analyst also points to the relative strength index RSI, another indicator intended to recognize trend changes. Martinez stated that the RSI on BTC’s daily chart has crossed 74.21, a level known to induce “sharp” price pullbacks since March.

However, ​​​​Martínez has added a clause to his latest price prediction. The analyst claimed that BTC could avoid this incoming sell-off, but only if the token closes its current daily candle above the $31,560 price mark.

Currently, BTC is trading at $29,960, with a gain of 11.6% in the last week. Meanwhile, the token’s daily trading volume has currently increased by 18.25%. With a market capitalization of $584.38 billion, Bitcoin remains the most valuable crypto asset in the world.

Growing Investor Confidence in Bitcoin

In other news, there appears to be a high level of growing confidence in Bitcoin at the moment. Recent data from IntoTheBlock revealed a notable increase in long-term Bitcoin holdings, as 80% of BTC in circulation has not moved from an investor’s wallet in the last six months.

A more recent post, dated October 22, points out that “in a financial climate rattled by the Federal Reserve’s policies and shaky bond markets, Bitcoin is making its own rules.”

Furthermore, a crypto analyst with the username X Slim Daddy also shared that the total balance of BTC owned by hodlers, that is, investors who have held Bitcoin for more than a year, has recently reached a new height of 13.45 million Bitcoin.

The analyst believes that Bitcoin’s continued accumulation has been the driving force behind the token’s strong price performance despite a series of turbulent market events. The first cryptocurrency remained in the headlines in 2023, with a staggering 70% gain since the beginning of the year.

By Audy Castaneda

Cardano Founder Prefers Q&A Than Political Summit

Leonardo Perez
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Cardano Founder Prefers Q&A Than Political Summit

Charles Hoskinson declines the Web Summit invitation due to the politicization of tech conferences and plans an AMA instead. AXO DEX launches public testnet on Cardano network and anticipates unconventional trading patterns. Cardano ADA Price Remains Moderate Despite Positive Crypto Market; possible breakup with more whale acquisitions.

Charles Hoskinson, Cardano founder, recently declined an invitation to participate in a Web Summit because these events have become political.

On October 20, Hoskinson explained that he declined the invitation, citing concerns about the increasing politicization of technology conferences.

Hoskinson Turns Down Speaking Room at Web Summit

Hoskinson believes these conferences should be forums for sharing ideas and innovation for a better future rather than being used to make political statements. Reflecting on his previous experience at the event, Hoskinson noted that he spent 20 minutes defending the crypto industry against accusations of criminality.

He added that tech events should focus on collaboration rather than becoming spaces for judgment. Hoskinson said the following:

“The magic of technology conferences is supposed to be the wonder of a better tomorrow, the showcase of great ideas and new experiences. Not asking your speakers to explain why they are not criminals or attending a political statement.”

As an alternative, Hoskinson revealed his intentions to host a five-hour Ask Me Anything (AMA) session. He has not yet provided details on when this session will take place.

Cardano’s AXO DEX Launches Public Testnet

Decentralized exchange (DEX) AXO recently unveiled its public testnet on the Cardano network. On October 19, AXO said the public testnet would collect test data from widespread use of the protocol. The exchange said it anticipates unconventional patterns on its testnet and added that it could intentionally limit the performance of its protocol to minimize data noise.

“Depending on insights gathered from the testnet, we could introduce an update to the Axo protocol. These changes could be as subtle as brief downtimes or, in more extreme cases, require a comprehensive network relaunch.”

Charles Hoskinson: Cryptocurrencies and Their Role against CBDCs

According to the creator of Cardano, cryptocurrencies are the “antithesis” of CBDCs. The world of cryptocurrencies has been supported by one great pillar: the financial freedom of users. Its foundation was born with the crisis of 2008 and the hope of many to find a solution to the great centralization that existed.

As years went by, though, institutions and governments found potential to use in the blockchain. For this reason, in recent years the idea of ​​creating a digital currency controlled by central banks, known as CBDC, arose.

CBDCs have been controversial across sectors. On the one hand, many in the political world reject them for being a form of control over citizens. On the other hand, in the world of cryptocurrencies they see CBDCs as a violation of the founding proposal of the crypto project.

As a currency created and controlled by a central bank, CBDCs are centralized, unlike cryptocurrencies. For this reason, rejection in the crypto world is widespread.

Cardano (ADA) Price

The cryptocurrency market enjoyed a positive week, but Cardano’s ADA price remained largely subdued. Data provided by a specialized web portal shows that the Cardano ADA token rose 3.3% in the last 24 hours to around $0.25.

This price action has holders worried about a more bullish move. BeInCrypto reported that the market could see an ADA price breakout if it sees more whale acquisitions, along with an increase in the network’s daily participation rate.

By Leonardo Pérez

Former Ethereum Whale Wakes Up After 8 Years

Audy Castañeda
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Former Ethereum Whale Wakes Up After 8 Years

After 8 long years of hibernation, a former Ethereum whale made a multi-million dollar move into the ETH token.

For weeks now, experts have considered that the crypto market is inevitably approaching an upward trend. In other words, we would currently be experiencing a period of accumulation that would end next year with a new all-time high in the price of Bitcoin.

The large holders of cryptocurrencies continue to star in this context of the crypto market with surprising movements. In this case it was a former Ethereum whale, which made a million-dollar move in ETH tokens after 8 years of dormancy.

The curious thing about this wallet is that the ETH content it contained were pre-mined coins. With this you can get an idea of ​​the age of the investor’s possessions, considering that this currency is no longer mined. For years, obtaining Ethereum has been done through the Proof-of-Stake (PoS) protocol.

It should be noted that the total amount in the wallet amounted to 2,000 ETH, which is equivalent to approximately $3,250,000. According to the tracking address, Whale Alert, the wallet was dormant for 8.2 years. Thus, the owner of the coins stopped trading with it in 2015.

Ethereum Whale on the Charge

The behavior of the investor typically called a whale may be different in Bitcoin and Ethereum. However, that does not mean that there are not some similarities in general features. For example, the objective of both is the same: to multiply their profits through their movements.

In this case, the whale with ETH is a long-term holder, unlike others who make constant movements. Be that as it may, the behavior of whales has a notable influence on cryptocurrencies, especially in times of low trading volume.

Large network movement trackers found that the whale moved its funds in four different directions. On the other hand, it stands out that the person obtained that number of coins for a price a little higher than $600 dollars.

This simple fact is strong proof of how profitable cryptocurrencies stored in the long term can be. The profits made by this person would have been considerably higher had he withdrawn in 2021, when the price of ETH reached its all-time peak. However, the current price is enough to give you a huge return.

The aphorism that time tells everything is fulfilled to the letter in the world of cryptocurrencies. Thus, in the long term, a relatively modest investment can turn a person into an Ethereum whale like this old wallet.

This is the Price of ETH

Currently, Ethereum’s native currency changes hands for a price of $1,632 per unit. This represents 5.1% over the last 7 days and 2.8% over a month. This positive performance comes in response to the rising price of the pioneering digital currency, Bitcoin.

So far in 2023, the price of ETH presents a performance of 36.09%, well behind the notable 82.2% growth of Bitcoin, which once again passed the barrier of $30,000 per coin. It is worth noting that Bitcoin whales, like Ethereum whales, are also extremely active.

Recently, it was known that the number of wallets with more than 100 BTC skyrocketed in 2023, which marks a prelude to a possible bull market. For weeks now, experts have considered that the crypto sector is in an accumulation phase prior to a new bull-run.

By Audy Castaneda

Coinbase Executive Uses Law to Support Why the SEC Should Approve a Bitcoin Spot ETF

Leonardo Perez
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0
Coinbase Executive Uses Law to Support Why the SEC Should Approve a Bitcoin Spot ETF

The SEC did not file an appeal on the ruling indicating a possible approval of a spot BTC ETF soon within the stipulated deadline given to them by the court.

Coinbase Chief Legal Officer Paul Grewal recently used the law to support the US Securities and Exchange Commission’s (SEC) approval of a spot Bitcoin exchange-traded fund (ETF), noting that The US regulator must fulfill its responsibilities.

Coinbase CLO Optimism About BTC Spot ETF Approval

In an interview on Friday with CNBC’s Arjun Kharpal, Paul expressed optimism about the SEC’s approval of Bitcoin ETF applications. Coinbase’s CLO said he’s pretty sure the SEC will soon approve a spot Bitcoin ETF, backing up his belief under the law. “I am very hopeful that these [ETF] requests will be granted, if only because they should be granted under the law,” Grewal stated.

After the interview, Grewal highlighted his confidence in the early success of the approval and noted that companies that have submitted well-structured ETF proposals for these products and services are crucial players in the financial services industry.

“I believe that the companies that have presented solid proposals for these products and services are among some of the leading financial services companies. I think that suggests that we will see progress soon.”

However, Grewal did not give a timeline on when approval will occur, as the final decision on approval ultimately rests with the SEC. However, he is still confident that the US regulator will likely approve a Bitcoin ETF in a short period of time given recent events.

Grewal further backed his optimism following the SEC’s recent judicial setback when a US Court of Appeals judge stated that the US regulator had no reason to deny Grayscale’s approval to convert its Grayscale

Bitcoin (BTC) into a Bitcoin spot ETF, qualifying the SEC’s decision. an arbitrary movement. “I believe that after the U.S. Court of Appeals made clear that the SEC could not reject these requests arbitrarily or capriciously, we will see the commission fulfill its responsibilities. “I’m pretty sure of that,” Grewal said.

Furthermore, Grewal also highlighted that the SEC did not file an appeal on the ruling indicating a possible approval of a BTC spot ETF soon within the stipulated deadline given to them by the court. If a spot ETF is approved, BTC could see a major rally.

A Bitcoin ETF serves as a means for investors to invest in BTC without having to make a direct purchase of the digital asset on an exchange. One of the major cryptocurrency exchanges that will benefit greatly from any approval of a Bitcoin ETF is Coinbase. This is because the cryptocurrency exchange’s common shares are held in portfolios designed to give investors exposure to cryptocurrencies.

JPMorgan on Timely Approval of Bitcoin ETF

JPMorgan analysts also expressed optimism about the approval of a Bitcoin ETF, that the ETF product could be available to the public this Christmas. Due to the recent developments following the approval of a Spot Bitcoin ETF, the financial giant believes that there is a high probability that an ETF could obtain approval before January 10, 2024.

Furthermore, Bloomberg analysts also believe that there is a 90% chance. that a Bitcoin ETF will be approved next year.

By Leonardo Pérez

Crypto Market Change and Bitcoin Price Above $30,000: What Caused This Rally?

Audy Castañeda
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Crypto Market Change and Bitcoin Price Above $30,000: What Caused This Rally?

Flagship cryptocurrency surpassed $30,000.

Bitcoin is on the cusp of the $30,000 mark as investors bet on ETF approval. The markets are changing and it looks like Bitcoin will go up from here.

Bitcoin is currently trading at $29,538, up 3.44% in the last 24 hours, according to CoinMarketCap. The flagship cryptocurrency surpassed $30,000 earlier as optimism grew over the approval of exchange-traded funds (ETFs).

Bitcoin Gains Bullish Momentum

JPMorgan said today that the US Securities and Exchange Commission (SEC) will likely approve at least one Bitcoin spot ETF by January 10, 2024. The date is also the deadline for the SEC’s decision on the Ark 21Shares application. Previously, Ark Investment CEO Cathie Wood told CNBC that Ark’s 21Shares application is progressing and that the SEC showed changes in behavior.

JPMorgan’s comment is largely in line with predictions from Eric Balchunas and James Seyffart, ETF analysts at Bloomberg Intelligence. The two experts predicted a 90% chance of a spot ETF being approved in January. Grayscale Investment, a prominent Bitcoin ETF applicant, announced today that it has submitted a new filing to the SEC. Grayscale’s goal is to convert the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.

As explained in Grayscale’s blog post, the new development comes in conjunction with the filing of an S-3 document, which is a more simplified version of the conventional S-1 filing commonly used to issue new shares. The company’s continued pursuit of a Bitcoin spot ETF offering reflects its willingness to navigate regulatory complexities.

The SEC, following a legal dispute with Grayscale, has shown no intention to appeal a court ruling in favor of Grayscale. According to the court request, the agency must review Grayscale’s proposal to convert its Bitcoin Trust into a spot product.

Additionally, the agency is reportedly reviewing other one-time Bitcoin ETF filings, including those from BlackRock, Ark 21Shares, Bitwise, VanEck, Wisdomtree, and Invesco, among others. Previously, experts suggested that the SEC would approve multiple spot Bitcoin ETFs simultaneously instead of one at a time.

What Did the Federal Reserve Say?

On October 19, Federal Reserve Chairman Jerome Powell joined the Economic Club of New York to discuss the US economic outlook and monetary policy. Powell highlighted in his speech that the Federal Reserve is on track to meet its goals of maximizing employment and price stability.

Powell’s statement was positive, but left the door open to interest rate hikes. While inflation is declining, it is too early to say it is under control. Powell emphasized that inflation remains too high and that the Federal Reserve will continue working to reduce it to its 2% target. Market experts predict that the Federal Reserve will make another hike later this year. With rates rising, the economy is in big trouble.

Federal Reserve Governor Christopher Waller said during the European Economic and Financial Center (EEFC) conference on October 18 that the agency would take a careful approach before deciding on specific changes to interest rates.

Finding the right policy approach to sustain economic growth without overheating it or causing runaway inflation is a complicated task. The federal agency is in a difficult situation as the US economy is giving mixed signals. Despite job growth, price growth has slowed sharply since the beginning of this year and has increased over the long term.

By Audy Castaneda

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