Bitcoin prices slip amid speculation that a block of the cryptocurrency possibly linked to creator Satoshi Nakamoto just changed hands
Bitcoin prices retreated Wednesday afternoon amid speculation that a long-dormant block of coins, with links to the presumptive creator of the virtual asset, just changed hands.
A Twitter account set to issue tweet alerts when coins tied to certain addresses trade, indicated a trade of a batch of virtual currency that is “possibly” tied to Satoshi Nakamoto, the person or persons who wrote the software code for the digital currency back in 2009. The identity of Nakamoto has long been speculated on but the originator of bitcoin has never been verified.
Read:Elon Musk says he’s not bitcoin’s mystery man Satoshi Nakamoto
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About 11 years ago, he created, or mined, the original batch of bitcoins that are widely known as the genesis block.
The tweet suggests that the batch of some 40 or 50 bitcoins that changed hands on Wednesday were mined within the first month of the creation of bitcoin.
See:Craig Wright Claims He Is Bitcoin Inventor ‘Satoshi Nakamoto’
To be sure, the anonymous nature of the bitcoin makes it impossible to know the owner of the coins but the technology that underpins bitcoin makes tracking addresses of the certain blocks of coins possible.
Sleuthing for coins tied to the progenitor of the digital asset has become a regular pastime in the crypto community. Tracking big blocks of bitcoin also helps to understand the habits of those who hold substantial influence on bitcoin prices by dint of their holdings.
Bitcoin futures are up more than 32% so far in 2020, and they had been trading at an intrasession peak at $9,895 on Wednesday before settling lower.
A number of industry participants have pointed out that the fact that the bitcoins are 2009 vintage doesn’t necessarily mean that they are related to Nakamoto.
However, that didn’t stop interest in bitcoin surging on Twitter, with the term “satoshi” becoming a viral term on the social-media platform Twitter Wednesday afternoon.
Bitcoin was created as an alternative payment system 11 years ago, one that operated anonymously and peer-to-peer, eliminating the so-called trusted third party.
The cryptocurrency was born amid worries that modern currency is manufactured by central banks printing fiat money to boost economic growth—a view that has gained increasing traction amid the COVID-19 pandemic.
Proponents of bitcoin argue that because the digital asset is decentralized from central banks or governments, individuals can conduct transactions without an intermediary. That is part of the appeal of bitcoin.
However, the nascent asset hasn’t made significant headway in price since hitting a December 2017 peak near $20,000.
Critics also point to the cryptocurrency’s association with money laundering as one of its biggest drawbacks. So far, bitcoin hasn’t achieved sufficient scalability to make it a legitimate currency much less a store of value, other opponents say.
Read:What is the bitcoin halving and which day does it happen?
Author: Mark DeCambre
- Gold and Bitcoin: I would buy falling stocks today and hold them forever
- Price Drops 7% in an Hour After Bitcoin Sees a Ghost
- Bitcoin Miners Double Revenue: Fees Spiked Over 200% in 10 Days Since the Halving | Mining Bitcoin News
- Bitcoin Just Painted a ‘Golden Cross’ But Is $10,500 Now Achievable?
- Bitcoin Dips by 4.5% on Speculation Satoshi Nakamoto Just Moved 50 BTC
Gold and Bitcoin: I would buy falling stocks today and hold them forever
The recent stock market crash could prompt some investors to consider buying other assets such as gold and bitcoin. After all, the prospects for the global economy are extremely uncertain. This could result in lower earnings for many companies, which could lead to disappointing stock price returns in the near future.
However, the recovery potential of the stock market suggests that now could be the right time to buy a variety of companies that offer large safety margins at the same time. These could even outperform gold and bitcoin because both could have uncertain long-term prospects.
The price of gold may have risen to a seven-year high in 2020, but its scope for further gains could be limited by a long-term improving economic forecast. Investor sentiment regarding the precious metal has improved in part due to its defensive qualities at a time when the economic outlook is uncertain.
However, the prospect of an improvement in GDP growth could prompt investors to gradually shift their attention to riskier assets in the coming years. This could reduce the demand for defensive assets like gold.
Likewise, the future for Bitcoin could be less positive than many investors currently expect. The virtual currency faces regulatory uncertainty, which could limit the ability to replace traditional currencies.
In addition, the limited size and threat posed by other virtual currencies could mean that investor sentiment towards Bitcoin is not being strengthened. Since its price depends on sentiment rather than fundamentals, this could lead to disappointing cryptocurrency performance.
In the short term, the outlook for the stock market could be extremely difficult. Corona virus news could lead to other assets such as: B. Gold, will continue to outperform stocks in the coming months.
In the long term, however, the stock market appears to have strong recovery potential. He can look back on a solid success story in which he has recovered from his worst downturns. For example, indices like the FTSE 100 and the S&P 500 have halved during the global financial crisis. Not only did they recover from their downturns, they also posted new record highs in the bull market in the years following the financial crisis.
Even if a similar result now seems unlikely, an opportunity could now be offered to buy high-quality stocks while offering large safety margins. This could enable investors to achieve a favorable risk / reward ratio that will ultimately lead to higher returns in the long term as the global economy gradually recovers.
This process can take time, so a long-term perspective should be crucial for any investor currently buying stocks. Building a diversified equity portfolio could result in higher returns in the coming years than investing in other assets such as gold and bitcoin.
The post Von gold and Bitcoin: I would buy falling stocks today and keep them forever appeared first on The Motley Fool Germany.
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Peter Stephens wrote this article in English and published it on May 2nd, 2020 on Fool.com.au. It has been translated so that our German readers can take part in the discussion.
The Motley Fool Australia has no position in any of the stocks mentioned.
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Price Drops 7% in an Hour After Bitcoin Sees a Ghost
May 20, 2020 at 18:13 UTC
Bitcoin was spooked by a ghost Wednesday, tumbling 7% in the span of an hour on reports a previously inactive address dating to the blockchain network’s earliest days had transferred more than $300,000 of the cryptocurrency.
The scare brought a quick end to bitcoin’s four-day rally. Prices for the largest cryptocurrency by market value fell to around $9,500 as of 17:15 UTC (1:15 p.m. in New York) from $9,788 on Tuesday. Earlier Wednesday the rapid sell-off took bitcoin as low as $9,100.
The hourly drop was the biggest tumble since May 10, when a brief outage on Coinbase caused the price of bitcoin to dip 10% in 30 minutes.
Wednesday’s tumble was most pronounced on Luxembourg-based exchange Bitstamp, where the price for 1 BTC lost 7% in one hour.
The sudden drop came as crypto traders lit up Twitter after bitcoin blockchain data showed the address, inactive for 11 years, had moved up 50 BTC to different wallets, then another 9.99 BTC earlier in the day. The address’ owner is unknown at present but the coins were valued at around $379,200 at press time.
The market pullback appeared to be exacerbated by the liquidation of heavily leveraged positions on the Seychelles-based BitMEX exchange, where traders can use derivatives known as perpetual swaps to bet up to 100 times their money down.
A price gap as high as $15 opened up between spot exchanges and BitMEX, he said.
“The spot index was higher than perpetual swaps” on BitMEX, Shah said. “This shows that it’s leveraged guys getting liquidated, while the spot bitcoin market is still firm.”
“In general, we see large buys and sells all the time,” Merghart said. “We don’t know why people buy and sell, but it’s probably the news” of coins moving.”
Author: Omkar Godbole
Bitcoin Miners Double Revenue: Fees Spiked Over 200% in 10 Days Since the Halving | Mining Bitcoin News
Bitcoin (BTC) miners earned 44% more in transaction fees in the nine days since the halving than they did for the whole of April. If this continues miners will have more than doubled their income from transaction fees going forward.
According to data from Coinmetrics, miners have collected the equivalent of 1,176 BTC in transaction fees since Bitcoin’s third supply cut on May 11. That compares with 818 BTC earned as fees in April and 1,251 BTC in March, the figures show.
Miners reap fewer bitcoin with each halving. The latest event slashed rewards paid to miners by 50% to 6.25 BTC, leaving some operators on the brink of collapse. The bonuses are a major revenue source for mining companies.
Now, as the third halving whipped up retail interest, demand for processing transactions through the Bitcoin network rose, causing fees to soar.
Since May 11, the average transaction cost for BTC has climbed as much as 220% to more than $6.40, as per Bitinfocharts. On the day of the halving, fees averaged just below $2. Transaction costs had already been rising two weeks prior to the event, spiking 400%.
Fees are paid each time a Bitcoin transaction is processed and confirmed by a miner, who pockets the fees, in addition to the block reward, as revenue.
There’s been some suggestion that miners are using higher fees to compensate for lost revenue from the block reward cut – creating what could arguably become a future market for BTC, one based on fees. Proponents argue higher fees help keep the Bitcoin network secure.
But bitcoin fundamentalists are unimpressed, citing high cost as a stumbling block to mass adoption. Miners are now hoping that the price of BTC rises above $10,000 and stays there, for them to remain profitable.
What do you think about the rising transaction fees? Let us know in the comments section below.
Author: Mining by Jeffrey Gogo
Bitcoin Just Painted a ‘Golden Cross’ But Is $10,500 Now Achievable?
Bitcoin (BTC) price remains in a somewhat neutral zone, caught between two highly consequential paths. For the past week, the top-ranked digital asset on CoinMarketCap has struggled to push above $9,900 in order to attack the $10K mark.
On Tuesday morning Bitcoin made another attempt at $10,000 when the price quickly rallied to $9,900 as some sort of hiccup in the BitMEX trading engine caused the exchange to cut out for nearly an hour. The move didn’t last long and for the remainder of the day, the price remained pinned below $9,800.
Yesterday the mining difficulty rate dropped by 6%, meaning some miners who shut down their operations due to the block reward reduction and current Bitcoin price may also find it easier to mine Bitcoin after the difficulty adjustment.
Crypto market weekly price chart. Source: Coin360
As mentioned earlier, Bitcoin is currently at a ‘crossing the Rubicon’ moment. Some traders believe that if the asset can rally to $10,200 and close above this level the path forward is bullish, especially if Bitcoin can push through $10,500. Others believe that a drop below the $8,900-$8,550 support zone means prolonged sideways price action is to be expected for the remainder of 2020.
Looking at the daily chart, we can see that Bitcoin continues to make higher lows and remains above the multi-week ascending trendline. Currently, the price continues to tighten in a pennant seen on the 4-hour and 1-hour timeframe.
A strong volume breakout from this pennant should propel the price to $10,200, a point which is also aligned with the top arm of the Bollinger Band indicator.
BTC USDT daily chart. Source: TradingView
This week crypto media has given much attention to the impending golden cross between the 50-day and 100-day moving average which is expected to occur within the next few days. Data from Cointelegraph Markets shows this would be the seventh time the moving averages have converged in Bitcoin’s history.
Typically, traders interpret the cross between the moving averages as a bullish signal so as the maneuver comes closer to completion Bitcoin price could see an increase in buying pressure. This is possible more reason to expect the digital asset to break above $10K and test the $10,200 level in the short term.
It should be noted that a golden cross is not always followed by a strong rally. Take the most recent example of the February 19 golden cross which was followed by the catastrophic drop to $3,750 less than a month later on March 13.
BTC USDT 4-hour chart. Source: TradingView
For the short term, traders are watching to see if Bitcoin can breakout from the pennant and overtake the $9,900-$10,000 resistance zone. Volume permitting, a move above $10,071 clears a path for the digital asset to rally to $10,200.
Knocking out the 2020 high at $10,500 would place the price above the long term descending trendline from the $19,800 all-time high, a feat which many traders say would be confirmation of a new bullish cycle starting.
From a bearish point of view, repeated rejection at $9,900 and $10,000 increase the chance that the price will drop to major support levels. A drop below $9,600 could see the price drop to support at $8,900-$8,550 and below this $7,438-7,200.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Author: Horus Hughes
Bitcoin Dips by 4.5% on Speculation Satoshi Nakamoto Just Moved 50 BTC
50 Bitcoin (BTC) from February 2009 has just moved and speculation continues to grow as to who owns the funds. Twitter user Joseph Young, was one of the first to notify Crypto Twitter of the transaction. A screenshot of the tweet can be found below.
The transaction highlighting the movement of the funds is available on the blockchain and it shows the Bitcoin was moved in two transactions to two different addresses. The screenshot detailing the transfer of the funds can be found below.
The popular Whale Alert bot, also captured the transaction of 40 BTC as can be seen in the tweet below.
👤👤👤 40 #BTC (391,055 USD) transferred from possible #Satoshi owned wallet (dormant since 2009) to unknown wallet
ℹ️ The coins in this transaction were mined in the first month of Bitcoin’s existence.
— Whale Alert (@whale_alert) May 20, 2020
The CEO and founder of Binance, Changpeng Zhao, responded to the Whale Alert by joking that he once rejected Satoshi Nakamoto’s KYC application. He also welcomed back the owner of the funds on the allusion that they had been on the sidelines for over a decade.
Damn, shouldn’t have rejected that Satoshi Nakamoto KYC on @binance
today. (Joking) Welcome back, Satoshi! Or whoever that OG is.
@jgarzik Who was mining back then? You probably know them all, right?
CZ went on to comment on a tweet by Anthony Pompliano who had stated that he did not want to know the identity of the owner of the 50 BTC.
Both tweets by CZ have since been deleted and replaced by the following tweet.
Feds print a few trillion, nothing happens.
Someone (most likely NOT Satoshi) moves 40 early BTC, market panics.
— CZ Binance 🔶🔶🔶 (@cz_binance) May 20, 2020
Further checking the charts, we realize that Bitcoin (BTC) experienced a brief dip when news hit the internet that the 50 BTC from 2009 was moving. At the time of writing this, the dip has turned into a crash with BTC now trading around the $9,300 support level. Since the news broke, Bitcoin has dropped from a value of around $9,770 to its local low of $9,326. The screenshot below gives a better visual of the situation on the 10 minute BTC/USDT chart.
However, one can argue that Bitcoin was headed to lower levels as postulated in our early analysis of a Golden Cross on the Daily BTC/USD chart. This dip might just be the beginning of a bear cycle that could have Bitcoin retesting $8,500.
(Feature image courtesy of Unsplash.)
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.
Author: John P. Njui·Bitcoin (BTC) NewsWorld·May 20, 2020·2 min read