The recent price upheaval seen in cryptocurrencies has been the hot topic in the cryptocurrency community. Crypto traders and investors have had a rough couple of days as this volatile market keeps shifting by the day.
At press time though, most cryptocurrencies, led by bitcoin seem to have struck a purple patch as they are recording small gains over the last 24 hours.
However, at the University of Cambridge, a certain group of researchers have been busy developing an index that computes the amount of electricity used by the bitcoin network.
This online tool indicates that the bitcoin network consumes more electricity than Switzerland. This revelation has left many in shock.
It is not the first time we’ve heard bitcoin and Switzerland in the same sentence. Not so long ago, a lot of conversations have sprung up concerning the correlation between the price of bitcoin and Swiss franc, Switzerland’s fiat currency. Now with the ongoing economic uncertainties, bitcoin has been recognized as a safe haven by investors alongside Swiss franc.
Bitcoin’s Energy Consumption Exceeds That of An Entire Nation
This time around, the conversation is centered on bitcoin’s electricity consumption. This research was prompted by concerns over the impact of bitcoin mining on the environment.
Cambridge Centre for Alternative Finance at the University of Cambridge developed an index known as Cambridge Bitcoin Electricity Consumption Index (CBECI) to calculate the amount of electricity that powers bitcoin in real-time then calculating annual power usage.
In Peter Brandt’s Opinion, Bitcoin is in its Fourth Parabolic Phase as it Heads Towards $100k
A lot of crypto analysts seem to have taken a bullish stance on Bitcoin despite the asset’s recent decline in its price. One of such is Peter Brandt, a veteran trader who said on September 1, 2019, that Bitcoin has entered its fourth parabolic phase. As such, the cryptocurrency could set another record, rallying to a new all-time high soon.
Peter Brandt’s Past Predictions
Peter Brandt is popularly known for his forecasts and has gained the interest of many traders as some of his predictions have come true in the past. For starters, he correctly predicted an 80% dump in Bitcoin’s price in January 2018, and it turned out to be the case by the year’s end. The iconic trader also forecasted a bull run in April, and by June, Bitcoin spiked to its year-to-date high of $13,796.
Of recent, Brandt also opined that Bitcoin has entered its fourth parabolic phase, which could do a lot of good for the crypto market. A phase, of this nature, could potentially take Bitcoin’s price beyond its present all-time high of about $20k. How high? One may wonder, it could be towards the $100,000 he says.
Raoul Pal Says It’s Now or Never
Brandt’s tweet was also linked to that of Raoul Pal, CEO of Global Macro Investor and Real Vision Group. According to Pal, a wedge pattern has just been exhibited in the Bitcoin short term chart. Moreover, it is not just any wedge, but one that has shown a high potential for success in the past.
Pal further remarks that this may be the last time for those who do not have Bitcoin to dive into the market. In his opinion, there could be a rocket in Bitcoin’s price soon; a prediction that is similar to that of Brandt’s.
Crypto Twitter Objects
On the other hand, some members of Crypto Twitter who made comments were in disagreement with Brandt’s and Pal’s opinion. These individuals remarked that the wedge pattern which Brandt and Pal spoke of is a pennant. A pennant, in their opinion, is a signal of a major dump in price in a crypto asset.
Despite the contrary views, there is still a high chance for the fulfillment of Brandt’s prediction. For beginners, Bitcoin’s halving in May 2020, which will reduce the amount of Bitcoin’s supplied to the market, could help to surge its price significantly. PlanB, for instance, had predicted in March that Bitcoin could rise to $55,000 after its halving in May 2020.
The Crypto Whale that Triggered an 8.5% Dip in Bitcoin (BTC) Prices
A Bitfinex investor staked a 20,000 bitcoins short order and gambled that BTC prices would slide in the near term. Within a fortnight, the BTC price dropped to $10, 765 from a whopping $11,900. After a span of a few hours, the valuation of the crypto market fell by over $20 billion.
Market experts have been wondering whether a quick upward recovery is even possible. Some analysts, like the incredible – Josh Rager were quite skeptical if the price of BTC went below $11, 500. Below this point could prompt even a further drop from $10, 000.
Whale movements seem to be key influencers in the price movements of crypto markets. Where the effect on the market is not rapid sales of crypto assets (Let’s say BTC); the trivial effect is maybe a dip in the prices and market capitalization.
Minor corrections of Bitcoin markets has resulted in the declining power of top crypto assets against the pair of BTC/USD. Litecoin had recorded a 5% rise against the U.S dollar during the weekend but has dropped by 5%. Other crypto assets that have slid by an average of more than 5% include, Ethereum, EOS, Bitcoin cash, and Binance Coin.
Experts predict the 8.5% BTC drop was a result of technical factors. The large short contract created panic among many retail investors. As a result, they end up selling their assets and pulling down the market. It was such an abrupt drop, however, experts believe a bullish fundamental catalyst still exists around the market. This bullish expectation, they predict could improve sentiments within crypto markets.
Analysts identified a generally positive trend for BTC from factors such as;
- Opening of trading venues such as Bakkt and Fidelity in the second quarter of 2019
- The gradual increase in retail investment
- Rising institutional interest
Short term traders are however skeptical and remain wary of the declining trend of bitcoin prices. An extended correction of market insights forecast that crypto assets tend to follow the bitcoin movement. Therefore, illustrating intensified markets moving both to the upside and the downside.
However, some traders are very optimistic and have spotted positive medium-term indicators in the monthly BTC trend. Despite the fact, investors did not expect an abrupt pullback in the magnitude of 8.5%. Investors have faith that pullbacks are quite necessary for the stabilizing of crypto market foundations.
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