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Bitcoin’s network strength peaks as hash rate surges to new all-time high

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The Bitcoin network is currently at its strongest, with the hash rate hitting a new all-time high 63 days after the May supply squeeze

Total computing power on the Bitcoin network has hit a new all-time high: clocking 125 EH/s for the first time since the mining rewards were cut by half in May.

The hash rate value, whose seven-day moving average now stands at 124.4 EH/s, beats the 123.8 EH/s high recorded in the days leading up to the last halving.

Bitcoin hash rate chart. Source: Blockchain.com

With the added hash rate, the largest cryptocurrency by market cap is arguably at its strongest and healthiest.

Fundamentally, miners have switched on their mining rigs at a time when the network’s mining difficulty has been projected to adjust upwards by more than 9.5%, from 15.78 T to 17.29 T.

No miner capitulation yet

Bitcoin’s hash rate hitting new highs renders the theory that the network faced an imminent ‘death spiral’ irrelevant for now. The theory postulates that Bitcoin miners are likely to dump their machines or move on to other networks after the latest rewards cut also cut miner revenue.

More pointedly, Bitcoin’s hash rate tanked in the days after the halving as Bitcoin Cash and Bitcoin SV had their computing power spike to new highs.

Although the price of Bitcoin has stagnated below long term resistance at $10k, it appears FUD about miner capitulation is out of the question — for now at least.

The entry of new and more efficient mining devices, like Bitmain’s S19 and S19 Pro, means miners are contributing more computing power to the network.

Bitcoin’s bulls will be noting the historical significance of current network strength. In the past, specifically after the 2012 and 2016 halvenings, prices surged to local highs in the second half of the year after each event.

Bitcoin price stagnates below $9,400

Bitcoin’s price has stalled around $9,300, with the inactivity likely to continue for a while as volatility lingers close to its lowest since the last bull market.

Notably, however, the cryptocurrency market usually follows such an extended phase of consolidation with a surprise move.

In the short term, BTC/USD is likely to linger between $9,300 and $9,400, with the price hitting the lower boundary of a declining triangle if sellers have their way.  The area around $9,000 to $8,600 is a key support zone for buyers, with any spikes in the short-term likely to be quelled at around $9,400.

Source: https://coinjournal.net/news/bitcoins-network-strength-peaks-as-hash-rate-surges-to-new-all-time-high/

Blockchain

Binance Might Delist Many Low-Volume Coins Soon, CZ Hints

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Binance is the world’s largest cryptocurrency exchange by means of daily trading volumes. In the few short years since its launch, the venue went on to become a leading company in the industry.

In fact, launching coins up for trade on the exchange has created the so-called “Binance Effect.” In short, when a cryptocurrency is selected and launched for trading on the platform, its price usually undergoes a substantial surge.

Now, the CEO of Binance, Changpeng Zhao, has hinted that it may start delisting low-volume coins.

Low-Volume Coins May Kiss Binance Goodbye

In an interesting Twitter thread, a popular cryptocurrency analyst and trader RookieXBT suggested delisting all coins on Binance that “do less than 10 BTC of daily volume.”

Expectedly or not, the CEO of the exchange engaged in the thread, providing a hint that they might consider doing so.

“I think it is a good idea. If you are on Binance and still have no volume, then…” – Said CZ, perhaps hinting that there’s something inherently wrong with coins listed on Binance and failing to generate big daily volume.

Naturally, there are two sides to this debate. Some users think that the merits of a coin shouldn’t be valued based on the volumes it generates on cryptocurrency exchanges. People argue that they hold a coin for the long-term and don’t really care about the daily volume.

This is most definitely true. The inherent merits of a cryptocurrency are most definitely not associated with it being listed on a certain exchange, be it Binance. So, a logical question pops – why would someone care if the coin is listed or not, presuming they are “in it for the technology”? And this is where things take a twist.

The Other Side of the Story

At this point, it becomes rather clear that this particular narrative doesn’t stand on solid ground because people are obviously concerned about the price, perhaps even more so than the technology itself.

If an investor is holding a cryptocurrency for the long run, it being listed on Binance shouldn’t make a difference. But that’s usually not the case – people are rarely “in it for the technology” despite what they might claim.

The main concern is that if Binance decides to delist low-volume cryptocurrencies en-masse, this might cause a larger upset in the market because of the “Binance Effect.”

As we mentioned before, when a cryptocurrency is listed on Binance, it usually goes through a substantial increase. However, the opposite is also true. Last year, the exchange delisted Bitcoin SV, and it tanked more than 10% on the news. That’s just one example.

In any case, there’s no formal confirmation, and it remains interesting to see whether the exchange will really start delisting coins based on low volumes.

Featured image courtesy of Medium

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Source: https://cryptopotato.com/binance-might-delist-many-low-volume-coins-soon-cz-hints/

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Blockchain

Fidelity’s Crypto Subsidiary Targets Asian Investors To Buy Bitcoin

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  • Fidelity Digital Asset Services (FDAS) has partnered with Stack Funds to enable Asian investors to purchase and store cryptocurrency assets more freely and securely. 
  • Based in Singapore, Stack Funds is a regulated fund manager focusing on Bitcoin and other digital assets.
  • According to the Bloomberg report, Stack Funds will make Fidelity’s secure custody services available to its clients, primarily based in Asia. The company outlined that the Asian market has been continuously growing in demand towards the cryptocurrency industry, especially from high-net-worth investors and family offices.
  • Stack further explained that all assets under its management will be audited monthly. The firm will provide insurance coverage, weekly contributions, and redemptions to enhance capital security.  
  • Stack’s co-founder, Michael Collett, said that Fidelity’s involvement will enable its company to attract even more investors from the region. 
  • On the other hand, Christopher Tyrer, head of Fidelity Digital Assets Europe, believes that “there’s a critical need for platforms which have a deep understanding of what local and regional investors are looking for.” However, he admitted that the digital asset space has “historically lacked” such platforms. 
  • After its success in the US, Fidelity Digital Assets expanded its cryptocurrency services to Europe last year. The company aims at entering the Asian market as well now with the Stack Funds partnership. 
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Source: https://cryptopotato.com/fidelitys-crypto-subsidiary-targets-asian-investors-to-buy-bitcoin/

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Hacked? Crypto Lending Platform Cred Suspends Deposits And Withdrawals While Cooperating With Authorities

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The popular cryptocurrency lending service Cred has announced that it has temporarily suspended all funds inflows and outflows. Without disclosing many details, the platform said it’s cooperating with law enforcement authorities to investigate an incident.

Cred Suspends Deposits And Withdrawals

The United States-based crypto lending platform, which recently announced joining Visa’s fast track program, updated its customers on Twitter regarding the latest troubling developments with a brief message.

“Unfortunately, we are unable to comment further at this time, but we will undertake to provide an update within the next two weeks. During this period, all inflows and outflows of funds will be suspended.” – read the statement.

Staying true to its fashion, the cryptocurrency community lashed out at Cred and its lack of details about what’s going on. This reaction prompted the lending protocol to comment once again. Firstly, Cred apologized for the concerns and inconveniences it has caused while it’s assessing the “business impact connected with a recent fraudulent incident.”

Furthermore, the post explained that Cred is currently cooperating with law enforcement authorities. However, it provided some reassurances claiming that “no client personal data or account information was compromised.”

It’s worth noting that Cred’s website reads that the platform works with “trusted security and insurance providers Fireblocks and Lockton to ensure that our customers’ digital assets have enterprise-grade security.” Nevertheless, several community members have questioned the state of their holdings on the platform, as they weren’t satisfied with Cred’s brief updates.

A Dissolved Partnership Saw This Coming?

Although it’s still unconfirmed if the so-called “incident” is indeed a hack, it seems that the issues have been transpiring for a while now. Days before Cred suspended deposits and withdrawals, one of its partners ended its relationship with the lending protocol.

The cryptocurrency wallet and trading platform, Uphold, announced on Sunday that users could no longer link their Uphold wallets to the third-party crypto lending provider Cred.

At the time of this writing, neither Uphold nor Cred have disclosed why their partnership agreement ended.

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Source: https://cryptopotato.com/hacked-crypto-lending-platform-cred-suspends-deposits-and-withdrawals-while-cooperating-with-authorities/

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