The price of Bitcoin (BTC) dropped to as low as $9,110 across major exchanges on July 10. Despite the pullback, key fundamental data points show that market bias remains optimistic.
Three fundamental factors pointing toward positive market sentiment are record high hash rate, neutral futures funding rate, and address activity.
Bitcoin address activity indicates a bullish trend
According to data from market research firm Santiment, the number of daily active addresses on the Bitcoin blockchain is rising.
An increase in active addresses typically suggests strengthening network activity. It could indicate that more users are beginning to use Bitcoin, which is a positive network metric.
Santiment researchers wrote:
“BTC’s daily active addresses continue their long-term uptrend in spite of this morning’s minor retracement down to ~$9,180. After a 2-year high of 1.08M DAA on July 1, yesterday’s DAA at market close nearly matched it at 1.02M DAA.”
Blockchain network metrics, such as developer and address activity, can provide insights into the medium-term trend of BTC.
Hash rate continues to climb to new highs
Data from Blockchain.com shows the total hash rate of the Bitcoin blockchain network has achieved a new all-time high.
The total hash rate of Bitcoin now hovers at 124.42 million terahash per second (TH/s). It is up by nearly two-fold within the past 12 months.
The record high hash rate of the Bitcoin blockchain network hints at stability in the mining industry. Due to the relatively cheap electricity cost in some regions, like Sichuan, many large-scale miners remain highly profitable.
The profitability of big mining centers reduces the probability of an intense sell-off in the Bitcoin exchange market.
Miners are regarded as an external source of selling pressure against the cryptocurrency exchange market.
Futures funding rate is neutral
Bitcoin futures exchanges employ a mechanism called “funding” to provide balance in the market.
Perpetual swaps are a type of futures contract with no expiration. That means traders can continue to trade Bitcoin futures without being limited by time.
But, the funding mechanism incentivizes either short or long contract holders if the market sways to the opposite side.
For example, if there are more short contracts in the market, long contract holders are incentivized with a negative funding rate. When the funding rate turns negative, sellers pay long contract holders a fee every eight hours.
Currently, the funding rate on BitMEX and Binance Futures remains at a neutral 0.01%. It shows the market is net neutral following the recovery of BTC from $9,110 to nearly $9,300.
A confluence of a neutral futures market and optimistic fundamental metrics suggest an overall positive sentiment in the Bitcoin market.
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Atari Chief: ‘I’m a Big Supporter of the Blockchain’
Atari CEO Frédéric Chesnais may not be into nostalgia, but the company’s public token sale has both gamers and cryptocurrency investors reminiscing both about video games and the ICO era. The public Atari Token sale launched on Bitcoin.com Exchange today at $0.25 per token. The company is targeting a hard-cap of $1 million. While it’s […]
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Atari CEO Frédéric Chesnais may not be into nostalgia, but the company’s public token sale has both gamers and cryptocurrency investors reminiscing both about video games and the ICO era.
The public Atari Token sale launched on Bitcoin.com Exchange today at $0.25 per token. The company is targeting a hard-cap of $1 million. While it’s unclear whether or not they are on pace to achieve that amount, Atari has big plans for its token, which is designed to go beyond gaming to “power the interactive entertainment industry.”
Chesnais was featured as a keynote speaker during CoinAgenda Global 2020 in a virtual fireside chat today hosted by Michael Terpin, founder and CEO of Transform Group. The gaming exec explained that Atari, which helped to shape the early video game industry, is still alive and kicking, saying,
“There is a lot of awareness about this brand. The audience just got older, the fan base got older. That’s a good thing for us because we have a wider reach in terms of the potential audience and people who are interested in what we are doing. We’re still doing video games. That’s still the DNA of the company. But at the same time, we realize the world is changing.”
In order to compete with companies like Activision, Atari is focused on virtual products, which according to Chesnais is the direction in which the world is going. Chesnais said he is a “big supporter of the blockchain,” pointing to Atari Chain, which is a Gibraltar-based entity responsible for the governance and ecosystem of the Atari Network fueled by the Atari Token. It is comprised of an Atari wallet blockchain ecosystem powered by the ERC-20-based Atari Token. Chesnais said during the fireside chat,
“This is what the brand needs.”
The Road Less Traveled
When Atari set out to build Atari Chain, they were faced with a fork in the road. They could have built the platform exclusively for its own games, in which case Atari would be the only company to use the token. In that case, Chesnais explained, the company could try and “corner the video game market on the blockchain.” But Atari is involved in a cryptocurrency and blockchain sandbox initiative and they have some NFTs. So this option wasn’t really possible.
On the other hand, they could make it very broad and let anyone who would like to use the Atari token on their platform or in the app do so. This is ultimately the direction in which Chesnais and his team decided to go. In the spirit of Satoshi Nakamoto, Atari is giving others access to use the token and the household brand in an invitation ripe for partnerships and licensing agreements.
Ultimately Chesnais envisions an Atari Chain that can build bridges from Ethereum to other chains, especially if issues like gas fees on Ethereum aren’t solved.
The Next Living Room
Atari is an icon whose history dates back to the Pong game from 1972. But Chesnais is far from being stuck in the past. The company is on a blitz to build “video game-themed Atari hotels” across the United States, which has the potential to introduce a whole new audience to the Atari Token. These hotels will be popping up in Las Vegas, San Francisco, Seattle and more U.S. cities while the company eyes an international expansion.
Chesnais also has his sights set on self-driving vehicles, saying that while the concept has not yet caught on entirely, it will in the next couple of years. He envisions a world in which the vehicle becomes the “new living room.” Classic and newer Atari games are already featured in the lineup of Elon Musk’s Tesla vehicles.
*Direct quotes are an approximate translation from a live video stream.
Michael Saylor Reveals Massive Personal Bitcoin Portfolio – Here’s How Much BTC He Owns
Michael Saylor, the chief executive officer of business analytics firm MicroStrategy, is revealing just how hefty his personal Bitcoin (BTC) bag is and why he is so bullish on the king coin’s future.
“Some have asked how much BTC I own. I personally hodl 17,732 BTC which I bought at $9,882 each on average. I informed MicroStrategy of these holdings before the company decided to buy Bitcoin for itself.”
In a new interview with tcnTV, Saylor explains why he’s all in on Bitcoin and the developing macroeconomic factors that could make it one of the world’s most valuable assets.
“I don’t know exactly in the near term where [Bitcoin’s] price will move, but what I’m sure of is that central bankers will print more currency in every country on earth and as they print more currency it’s going to have to find its way into an asset and it’s not going to go to bonds because they’re yielding 0% so it’s going to have to go to either to equity or to gold or to Bitcoin.”
Saylor goes on to liken Bitcoin’s utility to that of Apple, Facebook and Google, suggesting that getting into Bitcoin now would be like investing in the tech giants a decade ago.
“Apple dematerialized everything you could hold in your hand… Facebook dematerialized social energy, Google dematerialized libraries, information and video, these are all trillion dollar ideas. If you invested in them a decade ago it was a good idea…
Bitcoin is a dematerialized monetary network and it’s still early on in its life cycle… The best time to invest in anything is when it’s big enough to be sure it’s going to work and that means more than $100 billion dollars (market cap) and dominant in its industry and when it’s small enough that everybody else doesn’t understand it and the majority of the people aren’t quite sure what [Bitcoin] is.”
As of writing, Saylor’s own BTC supply is worth roughly $235 million, which means the CEO has seen about a $60 million return on his investment thus far. MicroStrategy has earned more from its Bitcoin investment than what the company netted in the past 3.5 years, according to crypto researcher Kevin Rooke.
Despite the huge gains, Saylor has no plans to sell the company’s bag any time soon, saying that he may sell some when it goes up by a factor of 100. However, the CEO wonders what he will want to buy at that point in time that’s better than Bitcoin.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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