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Bitcoin Mining Difficulty Hits Record High of 17.3 Trillion

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Following last week’s record-high Bitcoin hash rate, the latest difficulty adjustment saw a change of +9.89%, bringing the level to a new all-time high of over 17.3 trillion on July 13.

Despite a lack of recent significant Bitcoin (BTC) price action, the fundamentals securing the network are as healthy as they’ve ever been. This is more positive news for investors concerned about a previous drop in hash rate and difficulty after May’s third reward halving event.

Concerns over halving unsubstantiated

Some analysts predicted that the reward halving earlier this year would lead to mass capitulation from unprofitable miners.

There was a significant drop in hash rate immediately after the halving, followed by two reductions in the mining difficulty. But an upwards difficulty adjustment of 14.95% last month almost reversed the previous two falls on its own.

With both hash rate and difficulty now at historic highs, any concerns around the impact of the halving now seem to have been proven unfounded.

Keeping Bitcoin ticking along at 1 block per 10 minutes

The mining difficulty gets automatically adjusted every 2016 blocks (or approximately 14 days), in order to ensure that new blocks are produced every 10 minutes on average.

It generally fluctuates with the hash rate (increasing hash power means quicker blocks so difficulty must also be increased), although the overarching trend tends to be upwards.

Higher difficulty can also have an impact on mining profitability, which causes some miners to sell up. When this happens, it can potentially force the hash rate back down again.

Source: https://cointelegraph.com/news/bitcoin-mining-difficulty-hits-record-high-of-1734594887251606

Blockchain

Bitcoin Escapes Stock Market Sell-Off on Booming Safe-Haven Appeal

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An overnight attempt to crash Bitcoin alongside the US stock market met with extreme resistance as the cryptocurrency bounced back handsomely.

The BTC/USD exchange rate lost $465, or 3.51 percent, after the New York opening bell Monday. The pair fell to as low as $12,785, only to find a considerably higher buying sentiment. As a result, BTC/USD rebounded almost instantly after touching the said local bottom, climbing back above $13,000 to reclaim the level as support.

Interestingly, the brief downside attempt in the Bitcoin market appeared almost in sync with a similar sell-off across the US stock market. The Dow Jones Industrial Average plunged 650 points, or 2.3 percent, logging its worst one-day decline since September 3, led by a drop in leisure and travel stocks.

cryptocurrency, Bitcoin, BTCUSD, XBTUSD, BTCUSDT, S&P 500, Dow, Nasdaq

Bitcoin correlation with the Wall Street indexes and the US Dollar Index. Source: DXY on TradingView.com

Meanwhile, the benchmark S&P 500 and the tech-savvy Nasdaq Composite dropped 1.9 percent and 1.6 percent, respectively. Together, all three indexes were down more than 5 percent from their record peaks earlier this year.

Bitcoin Not Infected

The US stock market suffered pain as investors assessed the growing number of coronavirus cases in the country. The infections reached an all-time high of 68,767 on Monday. Additionally, scientists warned that a second way is due amid the coming winter season.

That is increasing worries about tighter lockdown restrictions and their impact on an already-suffering US economy.

Bitcoin and the US stock market could survive the first round of lockdowns because of the US government’s $3 trillion fiscal injections into the economy. Nevertheless, the situation is direr in current times. The first stimulus package stands dried, and the second one remains stuck amid a political battle between the Democrats and the Republicans in the US Congress.

Analysts believe no package will come up until the November 3 presidential election. That explains why investors are seeking safety outside equities.

Ronnie Moas, the founder of Standpoint Research, noted:

“BTC is now above where it was 24 hours ago, even though the Dow Jones dropped 640 points today. That is impressive, especially to those who (mistakenly) thought the two asset classes were correlated. Year-to-date, the US stock market is negative. BTC is +80%.”

Gold Correlation Back

The overnight sell-off and subsequent recovery in the Bitcoin market attest to the renewed demand. The cryptocurrency traded more in line with gold, a traditional rival asset, than with the risky stocks, showing that investors are beginning to explore its safe-haven characteristics.

cryptocurrency, Bitcoin, BTCUSD, XBTUSD, BTCUSDT, gold

Spot gold recovers on the line of Bitcoin after witnessing an early morning decline Monday. Source: XAUUSD on TradingView.com

The sentiment follows a JP Morgan report in which analysts treat Bitcoin as an alternative to gold among millennials. The study expects the cryptocurrency price to increase by 300 percent in the coming years.

That party explains Bitcoin’s ability to hold $10,300 as its interim support amid unsupportive fundamentals.

Source: https://bitcoinist.com/bitcoin-escapes-stock-market-sell-off-on-booming-safe-haven-appeal/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoin-escapes-stock-market-sell-off-on-booming-safe-haven-appeal

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Blockchain

ARK Investment Management Will Review its Distribution in US

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ARK Investment Management, LLC, a self-described “New York-based investment adviser focused solely on disruptive innovation,” has revealed “an important step toward strengthening its business and foundation for future growth,” according to a press release from the group.

“As part of this process, ARK has commenced a request for proposal (“RFP”) process to explore the potential replacement of Resolute Investment Distributors, Inc., an affiliate of ARK’s minority partner, Resolute Investment Managers, Inc., as a distributor of its U.S. retail and institutional products and services. Resolute Investment Distributors, Inc. will be considered in ARK’s evaluation and RFP process,” the release continues.

Speaking on the matter is ARK Founder, CEO, and CIO, Cathie Wood, who said:

“Since our founding in 2014, ARK has evolved a differentiated research and investment strategy that identifies technologically-enabled disruptive companies which, as reported by Morningstar, has resulted in top 1 percentile returns for multiple products over one, three, and five year periods. Thanks to our research and investing success, ARK now is one of the largest ETF issuers in the U.S. To maximize ARK’s potential, one of our priorities is to partner with shared-vision, best-in-class service providers.”

Source: https://insidebitcoins.com/news/ark-investment-management-will-review-its-distribution-in-us

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Bitcoin Will 10X Compared to Gold, Says JP Morgan

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Source: https://cryptobriefing.com/bitcoin-will-10x-compared-gold-says-jp-morgan/

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