Bitcoin

Bitcoin’s mining revenue indicates Bitcoin is ready for movement, but only if the macro environment cooperates

. I noticed a key indicator, miner revenue, which suggests that Bitcoin might be preparing for an upward movement However, in isolation, it means nothing. Sample size for Bitcoin is too small, with the current environment the only macro bear market it has seen since launch in 2009 Until the risk-off sentiment in a wider…

I noticed a key indicator, miner revenue, which suggests that Bitcoin might be preparing for an upward movement
However, in isolation, it means nothing. Sample size for Bitcoin is too small, with the current environment the only macro bear market it has seen since launch in 2009
Until the risk-off sentiment in a wider market dissipates further, on-chain indicator should be taken with a pinch of salt

One of the most interesting things about Bitcoin is its ability to track many indicators from one place. These metrics become more powerful as we get a better understanding of Bitcoin’s performance over time.

The Puell indicator is one of my favorite on-chain indicators. The Puell indicator adjusts the total miner’s revenue by the yearly moving average. So, the calculation of the indicator takes mining revenue and divides it by the 365-day simple moving average of mining revenue.

Miner actions can often offer unique insights into market. Because their revenue is in Bitcoin, their fixed costs (mainly electricity) are in fiat, they are often considered compulsory sellers. They must cover these fixed costs, so bitcoins issued by miners will always be directly related to price.

The Puell indicator basically tracks whether the volume of bitcoins entering market is too high or low relative to historical norms. It is clear that there has been a strong correlation in the past. The price tends upwards when the Puell indicator falls within the green zone of the chart below.

The most recent time that the Puell indicator entered the “buy” area was in June. Again, we saw upward movement soon after, as Bitcoin had its little rally from about $20,000 up above $24,000. Of course in the last week or so we have dipped back down to below $20,000, as the Fed’s comments on interest rate plans and inflation sparked a wave of risk-off sentiment across all asset classes.

Interestingly, I noticed yesterday that the Puell indicator has dipped back into the “buy” zone. Zooming on the time period since the start of 2020 demonstrates this a bit clearer on the chart.

However, I am always cautious about using on-chain indicators alone. This is especially true in today’s climate where there is an unprecedented mix of a Fed that is hawkish and rampant inflation, as well as a geopolitical climate that is becoming more volatile every day.

This is the first time we’ve seen this macro mix in Bitcoin’s brief history. Indeed, Bitcoin was only launched in early 2009, meaning it has resided during a period of sustained up-only bull market dynamics. It is difficult to draw firm conclusions from the historical price action because it does not have enough data.

The way I would ultimately look at the Puell indicator is that Bitcoin seems primed to move upward IF the macro environment cooperates. This is a big if. This has been true all year, and will continue to be so. Markets are being driven by macro developments.

Bitcoin follows the stock market. It is also following news about the interest rate, inflation and geopolitical sectors. This is a bullish indicator on Bitcoin’s blockchain, but it doesn’t mean anything unless we have further cooperation from the wider world.

Bitcoin

Fed Report Explores How Crypto Price Changes Affect Ownership

A report by the Federal Reserve Bank of Philadelphia’s Consumer Finance Institute found that cryptocurrency ownership declined during market downturns, despite price increases in bitcoin. Data from multiple surveys showed that crypto interest and ownership did not rise, even as prices surged. The report suggests further research into consumer behavior in response to market fluctuations [……
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Bitcoin

The Open Network (TON) to launch teleport Bitcoin bridge

The Open Network announces plans to launch a bridge to get Bitcoin onto the TON blockchain, The bridge will allow Bitcoin to be used for DefI purposes in the TON ecosystem. The TON Foundation announced that the Open Network will launch a trustless bridge to allow people to bridge Bitcoin into the TON ecosystem for…

The Open Network announces plans to launch a bridge to get Bitcoin onto the TON blockchain,
The bridge will allow Bitcoin to be used for DefI purposes in the TON ecosystem.

The TON Foundation announced that the Open Network will launch a trustless bridge to allow people to bridge Bitcoin into the TON ecosystem for DeFi purposes. The bridged Bitcoin, called Teleport BTC, will maintain the original Bitcoin’s security while allowing holders to take advantage of the growing opportunities on TON.

According to the Foundation, each Teleport BTC will be backed 1:1 by native Bitcoin via a trustless, transparent process chiefly executed by verifiable smart contracts and validators.

This new development aims to “enhance Bitcoin’s utility, transforming it into a powerful tool for generating additional rewards on TON.”

TON’s Growth in 2024

The Open Network, closely linked with the popular Telegram messaging app, has been on an upward climb in 2024 both in price and network development. The network was initially created by the Telegram team for internal use but was abandoned and eventually picked up by the community.

TON made major waves after Telegram re-established contact by using the network to power its ad reward system, which pays channel owners in TON (the network’s native cryptocurrency) for traffic and views.

Outside of Telegram, TON is making a name for itself as a social gaming chain with tap-based casual projects like Notcoin and Hamster Kombat garnering attention.

TON’s Growing DeFi Ecosystem

While TON is not primarily known as a network for decentralised finance, its DeFi ecosystem has witnessed a boom in recent months. According to Defillama, a leading on-chain finance data provider, the total value locked on TON currently stands at $745.96 million as of writing after rising significantly from $22 million at the end of February 2024.

The Open Network plans to launch the Teleport BTC bridge later this year.

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Bitcoin

First ETP for Near Protocol’s NEAR token unveiled on Sweden’s Spotlight Stock Market

Valour’s NEAR ETP will be available on Sweden’s Spotlight Stock Market. Valour currently operates one of the largest Solana ETPs. The crypto fund issuer also operates Bitcoin, Ether, and Internet Computer ETPs. Crypto fund issuer Valour today announced the launch of an exchange-traded product (ETP) for Near Protocol’s native token, NEAR. This groundbreaking ETP will be…

Valour’s NEAR ETP will be available on Sweden’s Spotlight Stock Market.
Valour currently operates one of the largest Solana ETPs.
The crypto fund issuer also operates Bitcoin, Ether, and Internet Computer ETPs.

Crypto fund issuer Valour today announced the launch of an exchange-traded product (ETP) for Near Protocol’s native token, NEAR.

This groundbreaking ETP will be available on Sweden’s Spotlight Stock Market, offering retail and institutional investors the opportunity to gain exposure to the decentralized application development platform.

NEAR ETP joins Valour’s diverse portfolio of ETPs

Valour already operates one of the largest Solana ETPs, Valour Solana, and offers a suite of staking products, including ETPs for Bitcoin, Ether, and Internet Computer.

Valour’s head of product, Elaine Buehler, emphasized the significance of this new fund, highlighting its potential to grant investors access to an asset renowned for its transformative impact on decentralized finance (DeFi) and non-fungible tokens (NFTs).

Near Protocol, designed to tackle common blockchain development challenges such as user onboarding and multi-chain operations, boasts a market capitalization of approximately $6.8 billion. This positions NEAR among the top 20 digital assets globally, according to CoinMarketCap.

The launch of NEAR ETP comes amid a wave of regulatory approvals in the United States, where investment managers BlackRock, Franklin Templeton, and VanEck recently received preliminary approval to list the first exchange-traded ETH products. Analysts predict this move will pave the way for more crypto exchange-traded products in the US, including potential Solana-based ETFs.

Valour’s parent company, DeFi Technologies, currently manages around $600 million in assets across various crypto-native strategies.

On July 16, DeFi Technologies expanded its footprint by acquiring trading desk Stillman Digital in an all-stock deal. This acquisition is expected to significantly enhance the Canadian crypto platform’s capabilities, potentially positioning it as a formidable competitor to larger entities like Galaxy Digital.

Valour’s new NEAR ETP represents a significant advancement for investors seeking exposure to innovative blockchain technologies, reinforcing the firm’s position at the forefront of digital asset investment products.