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Current Bitcoin Whale Population Looks Exactly Like September 2017, Just As BTC Ascended To $20K

Current Bitcoin Whale Population Looks Exactly Like September 2017, Just As BTC Ascended To $20K

Over the last few days, bitcoin’s price action has been quite dramatic. On June 15, the bellwether cryptocurrency tumbled below $9k alongside the US stock market which also took a dive. A few hours later, however, the cryptocurrency rebounded to as high as $9,500 after the Fed announced it will begin purchasing individual corporate debt. […]

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Current Bitcoin Whale Population Looks Exactly Like September 2017, Just As BTC Ascended To $20K

Over the last few days, bitcoin’s price action has been quite dramatic. On June 15, the bellwether cryptocurrency tumbled below $9k alongside the US stock market which also took a dive. A few hours later, however, the cryptocurrency rebounded to as high as $9,500 after the Fed announced it will begin purchasing individual corporate debt.

Amid all the break-neck volatility, one interesting trend stands out: the number of BTC addresses with massive holdings has been steadily growing in recent months. The last time the current number of BTC whales was seen was in 2017 just before BTC soared to $20,000, according to Glassnode.

Eerily Reminiscent Of September 2017 Before BTC Pumped To $20,000

Although bitcoin has remained below the key $10,000 level for the better part of 2020, large BTC investors have remained unfazed. In fact, they have been gradually adding to their positions.

According to a report published by on-chain analytics firm Glassnode on June 15, the number of addresses holding at least 1000 BTC has been growing since January of this year. At the moment, there are at least 1882 such bitcoin whales. The analytics firm notes that they last witnessed such numbers in September 2017 as BTC surged to the $20,000 all-time high.

Current Bitcoin Whale Population Looks Exactly Like September 2017 As BTC Ascended To $20K

What’s even more interesting for Glassnode is the fact that they first saw these many BTC whales in March 2016 while the cryptocurrency was still trading below $420. Notably, the bitcoin price is now 20x higher than it was back in March 2016, indicating that the whales are now holding more wealth.

But “the average balance held by each whale has decreased during this period, such that whales actually hold less BTC now than in 2016, and less wealth (in USD terms) than in 2017,” Glassnode added.

Whales Dominate The Crypto Seas

Notably, BTC whales play a significant impact on crypto markets. For most traders, a huge whale population is a sign of a healthy crypto-asset as it shows that the well-financed investors are extremely confident about the price of BTC in the future. 

However, some suggest that the same whales have the ability to manipulate the cryptocurrency’s price. For instance, theories online linked the harrowing drop on Monday to whales on Gemini and Coinbase moving their holdings right before the steep plunge began. 

As the crypto market is still a burgeoning sector with traders that are mostly driven by fear and greed, the bitcoin price is unlikely to escape the whales’ tail flaps in the near future. All in all, BTC seems to have loyal large investors that have continued to accumulate since January despite the prevailing uncertain economic conditions.

Source: https://zycrypto.com/current-bitcoin-whale-population-looks-exactly-like-september-2017-just-as-btc-ascended-to-20k/

Blockchain

Canaan Sees Over 75% Decline in Net Revenue in Q3 as Bitcoin’s Price Surge

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Chinese Bitcoin mining firm Canaan has recorded a loss in yet another quarter but is showing positive signs of a recovery as share price and market capitalization spikes. Following a disappointing initial public offering (IPO) last year and declining inventory sales, the company has seen the balance of power shift considerably to major competitors MicroBT and Bitmain.

$12.7 Million Loss for Q3 2020

Bitcoin miner maker Canaan has reported a 75.7% year-on-year (YOY) decline in net revenue as part of its Q3 2020 financials published on Nov. 30. In the report, Canaan revealed that its net revenue for the period was $24 million, which also amounts to an 8.5% reduction from the earnings recorded in the previous quarter.

Following the significant drop in quarter-on-quarter (QOQ) net revenue, it is unsurprising to see Canaan post another quarterly net loss in 2020. According to its Q3 2020 financials, the bitcoin mining chip maker recorded a net loss of $12.7 million, compared to a $2.5 million loss in Q2 2020 and $14.3 million in Q3 2019.

Commenting on the firm’s Q3 financial performance, Nangeng Zhang, Canaan’s CEO and Chairman said:

“During the third quarter of 2020, we remained undeterred by the pandemic to strengthen our research and development capabilities, expand our AI business, and execute new business initiatives. By leveraging our enhanced R&D capabilities in the third quarter, we launched our A1246 product series, which continues to lead the industry with its energy efficiency, computing power, and unit cost.”

Canaan Market Cap on the Rise

Net loss aside, Canaan has been recording some positives in the latter part of 2020. Indeed, the company’s market capitalization has more than tripled from $300 million in September to about $900.8 million as of press time.

Canaan’s share price has also been on a tear in recent months, rising over 200% within the same period. With one-third of Q4 remaining, the company’s stock has risen over 170%. Maintaining the current price action could see the Bitcoin miner manufacturer’s stock price challenge its IPO float price of $9, which incidentally is its all-time high share price.

Tweeting on Canaan’s Q3 performance, @WuBlockchain identified rising inventory sales and the release of the company’s A1246 miners are contributing factors to the firm’s recent resurgence.

Canaan was also among a group of Chinese mining hopefuls looking to float IPOs in the last couple of years. However, Canaan’s offerings fell short of the mark, failing to even realize a quarter of the $400 million estimate.

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Source: https://cryptopotato.com/canaan-sees-over-75-decline-in-net-revenue-in-q3-as-bitcoins-price-surge/

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Ethereum Prices Return to $620 Resistance on ETH 2.0 Launch Day

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Today marks the long-awaited genesis of Phase 0 in the Ethereum 2.0 upgrade roadmap which stretches ahead for the next couple of years. According to the Beacon Chain countdown, there is now less than seven hours to go before the genesis event spawns the first block on the new chain.

The Beacon Chain explorer reports that there is currently 872,000 ETH staked which equates to approximately $525,000 at today’s prices.

No Native Scaling For a Year

The excitement over the launch is palpable but many are still unaware that the new blockchain will not actually function as anything other than providing staking rewards to validators. All of the smart contracts, dApps, and transactions will continue as usual on the original ETH 1.0 chain.

Researchers at Messari Crypto pointed out;

“When the Beacon Chain launches tomorrow, outside of bootstrapping a network of proof of stake validators, it will have little functionality.”

This also means that there will still be issues with high gas prices when the existing network comes under heavy load which is bound to happen over the next year if DeFi momentum continues and the space evolves even more.

Phase 1 will introduce scaling through sharding, which will introduce 64 parallel side chains to take the load off the main chain and increase throughput. This is unlikely to occur for at least another year from today, and even then ETH 1.0 and 2.0 will operate independently until Phase 1.5 merges them together sometime in 2022.

Either way, the Ethereum community is hyped up over the event which is the culmination of five years of research and development for the world’s largest smart contract and decentralized application network. In his latest Bankless newsletter, David Hoffman aptly said;

“We were born too late to explore the globe, too early to explore the galaxy, but we were born at the perfect moment to explore the infinite whitespace of Ethereum 2.0.”

Ethereum Prices at Resistance

Ethereum prices have returned to their June 2018 price high of $620 just hours before the launch. This level appears to have formed a double top and heavy resistance zone as it did in early 2018. A next leg up could take prices to $800 where further resistance lies, but on the downside, support can be found at around $520.

At the time of press, ETH prices had retreated a little to trade at $605 but the momentum and potential is still with it.

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Source: https://cryptopotato.com/ethereum-prices-return-to-620-resistance-on-eth-2-0-launch-day/

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The Oracle Debate: How Should DeFi Protocols Source Price Data?

Chainlink is in one corner, explaining why using one or low-quality DeFi sources is a bad idea. Uniswap is in the other and its founder begs to differ. It all began with Chainlink’s Sergey Nazarov who posted a blog on the risks of improperly leveraging oracle flexibility when sourcing data. Using just one price source … Continued

The post The Oracle Debate: How Should DeFi Protocols Source Price Data? appeared first on BeInCrypto.

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A debate has begun on crypto Twitter over the use of price oracles for DeFi protocols.

Chainlink is in one corner, explaining why using one or low-quality DeFi sources is a bad idea. Uniswap is in the other and its founder begs to differ.

It all began with Chainlink’s Sergey Nazarov who posted a blog on the risks of improperly leveraging oracle flexibility when sourcing data. Using just one price source could be problematic, as the tech entrepreneur explains:

“DeFi protocols should avoid using a single exchange or even just a few exchanges as their price source, regardless of whether it’s an off-chain exchange that seems reliable and/or an on-chain DEX.”

Mixing DeFi Data Also Dangerous

He added that oracle networks pulling price data from a single exchange have no protection against exchange downtime, flash crashes, and price manipulation. Additionally, they also have extremely limited market coverage.

However, there are also issues with oracles that pull data directly from preselected exchanges. They are vulnerable when volume shifts to new exchanges that were not included in the original aggregation process, he explained.

Using multiple different oracles together to create price updates sounds like the solution but there may be discrepancies between the quality of the data which could also cause problems.

The Chainlink founder concluded with a recommendation to use the project’s own superior quality oracles over mixing sources with “lower quality” alternatives.

The Counter Argument

Arguing against this notion was Uniswap founder Hayden Adams who said the number of unique price sources is quite meaningless on its own.

He added that it’s not possible to directly compare manipulation resistance of entirely on-chain oracles that pull data from a DEX with something like Chainlink that reports off-chain data.

Adams argued that the cost of manipulating price feeds on Uniswap is lost to arbitrage by moving the average market price across the period.

Chainlink, on the other hand, has a manipulation cost that arises from corrupting enough of the people who are reporting prices or manipulating prices on the exchange, he added.

The source of the data is also pretty important he stated, adding,

“As DEX continues to eat CEX, CEX data will continue to decline in relevance”

He said that it’s still very early with automated market makers (AMM) but they will eventually be way more expensive to manipulate than centralized exchanges.

Knowing that there was likely to be backlash from the phalanx of Chainlink aficionados, the Uniswap founder wrapped up the conversation:

“Lastly, I’m going to be harassed and attacked for weeks for criticizing Chainlink, despite this being a mostly technical / opinion post.”

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Martin Young

Martin has been writing on cyber security and infotech for two decades. He has previous trading experience and has been actively covering the blockchain and crypto industry since 2017.

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Source: https://beincrypto.com/the-oracle-debate-how-should-defi-protocols-source-price-data/

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