Cryptocurrency exchange Coinbase says bitcoin dips are likely to be “more aggressively bought compared to previous cycles, even as volatility persists during price discovery.” The crypto firm noted that the impact of U.S. spot bitcoin exchange-traded funds (ETFs) and the larger inflow of institutional demand can be seen in the open interest of bitcoin futures. […]
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The Bitcoin (BTC) market has been on a wild ride recently, hitting a new all-time high (ATH) before experiencing notable volatility that resulted in an 8% drop to the $65,500 level on Friday.
Meanwhile, Marathon Digital, one of the largest US-based Bitcoin mining companies, is preparing to acquire more power infrastructure and streamline operations to meet the challenges posed by a reduction in revenue due to the upcoming April halving event.
According to a Bloomberg report, Marathon Digital plans to acquire additional power infrastructure and expand its mining capacity to keep costs low and maintain profitability.
By optimizing operations and scaling up, Marathon aims to mitigate the impact of the impending revenue drop and secure wider margins in the post-halving landscape.
Marathon Digital recently announced an agreement to purchase a 200-megawatt data center in Garden City, Texas, for over $87 million. This acquisition marks the company’s second major investment in power infrastructure after it acquired multiple sites for $179 million earlier this year.
By increasing its ownership of mining capacity infrastructure to 53%, up from a meager 3% in the previous year, Marathon is positioning itself for greater operational efficiency and cost-effectiveness, Bloomberg notes.
However, post-halving, the Bitcoin mining industry is expected to undergo significant changes, with some miners facing profitability challenges and potential exits.
Marathon Digital’s CEO, Fred Thiel, highlights the impact of revenue reduction, estimating that the industry’s average break-even point will rise from around $23,000 per Bitcoin to approximately $43,000. Thiel stated:
Post halving, there will be some miners to lose profitability, maybe challenged, or maybe looking for an exit as their revenues will drop because of the Bitcoin rewarded will drop. The simple math is, if the industry average break-even point was around $23,000 per Bitcoin, it will now go up to around $43,000.
It is worth noting that this does not necessarily mean that Bitcoin’s price will fall to $43,000 from its current trading price of $69,300. The breakeven price refers to the price at which miners like Marathon Digital can cover their operating costs and achieve profitability. It is not directly correlated to the market price of Bitcoin.
As of the time of writing, BTC is trading at $69,300 and is on the verge of reclaiming the significant milestone of $70,000. The cryptocurrency experienced a notable spike in volatility during the early hours of Friday’s trading session but has since recovered, mitigating its losses from 8% down to 2.5%.
Featured image from Shutterstock, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
While Bitcoin exchange-traded fund (ETF) applications are still awaiting approval from the US Securities and Exchange Commission (SEC), executives from asset management firms are already speculating about the potential launch of spot ETFs for other major cryptocurrencies, including XRP and Ethereum (ETH).
Valkyrie Invest’s Chief Investment Officer, Steven McClurg, expressed his belief that the SEC’s potential approval of a Bitcoin ETF could pave the way for similar offerings in the XRP and Ethereum markets.
However, regulatory challenges and classifying XRP and Ethereum as securities may present hurdles toward these index funds.
Unlike Bitcoin, which has been classified as a commodity by regulators, XRP and Ethereum have been deemed securities. This divergence in classification poses potential difficulties and may necessitate a more complex approval process for spot ETFs tracking these cryptocurrencies.
The anticipated impact of spot ETF approval on the XRP and Ethereum price would mirror the pattern seen with Bitcoin. Still, the SEC’s skepticism towards the broader cryptocurrency market could pose additional hurdles for XRP and Ethereum ETFs.
Nevertheless, the outcome of the ongoing Ripple vs. SEC case holds significant implications and could hold the key for the cryptocurrency industry to pursue these index funds for other cryptocurrencies.
If Ripple, the blockchain payment company associated with XRP, emerges victorious and is not classified as a security by Judge Analisa Torres, it could establish a precedent for asset managers seeking to apply for an XRP ETF.
This legal precedent could also prompt potential litigation against the SEC to support an Ethereum ETF application.
While discussions revolve around the possibility of spot ETFs for XRP and Ethereum, there is still uncertainty surrounding the approval of Bitcoin ETFs.
The SEC may reject or delay the pending applications, making it uncertain whether these other index funds will materialize. Furthermore, US regulators’ current classification of XRP and Ethereum as securities adds an additional layer of complexity to their respective ETF prospects.
As reported on Monday by NewsBTC, Sources close to the process have indicated that the ultimate approval for Bitcoin ETFs may come on Wednesday.
CNBC’s sources suggest that this coincides with the application deadline for Ark Invest and 21 Shares, raising the possibility of a potential trading launch between Thursday and Friday. Several applications are expected to receive the green light, pending updates from the SEC on the filings.
Overall, as anticipation builds around the potential approval of Bitcoin ETFs, asset managers are already contemplating the prospect of spot ETFs for other major cryptocurrencies like XRP and Ethereum.
However, the regulatory challenges and the classification of XRP and Ethereum as securities present significant hurdles for these index funds. The Ripple vs. SEC case outcome could have far-reaching implications, potentially setting a legal precedent for asset managers to pursue XRP and Ethereum ETFs.
XRP is trading at $0.5673, showing a lack of bullish momentum with a 1% decline in the past 24 hours. Furthermore, it has experienced a continuous downtrend of 13% over the past 30 days.
Featured image from Shutterstock, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
The XRP price has been rather stagnant in recent days. However, this could be about to change according to crypto analyst Jaydee. In a recent technical analysis, Jaydee has highlighted a potential golden cross on the 4-day chart which may be confirmed as soon as today.
The chart presented by Jaydee shows a potential golden cross, a bullish chart pattern that occurs when a shorter-term moving average crosses above a longer-term moving average. The last occurrence of a golden cross was followed by an impressive 650-fold increase in XRP’s price, according to the analyst.
Jaydee posted on X (formerly Twitter), “XRP – Golden cross on 4-day chart confirming today? Will this help us break the 8 year trendline? Last time it did this, XRP 650x! Although it won’t make the same gains, the gains coming will be LIFE CHANGING for the 5% who take “calculated” profits!”
In the history of the XRP price, there have been two occasions in which Jaydee’s golden cross has taken place. The first was in March 2017, which was followed by a massive rally that saw the price rise from below $0.005 to its all-time high of $3.31. The rise represented a price gain of over 65,000%.
The second time was in December 2020, when the price rose from around $0.17 to as high as $1.95. This represented a price appreciation of an incredible 1,040%. However, the rally came to an abrupt end when it was rejected at Jaydee’s “8-year trend line”.
This long-standing resistance level has capped the XRP price growth several times since its inception. Based on the monthly chart, the XRP price has been rejected at the descending trend line a total of 6 times since January 2018.
This is another similarity to the 65,000% rally which started in March 2017. The chart by Jaydee outlines a notable 4-year trendline breakout that occurred after the Golden Cross appeared. If history repeats, the price could target the upper end of the trendline very soon, if the golden cross is confirmed today.
Currently, the digital asset’s price is hovering around the $0.63 mark. According to Jaydee, the price could go straight up to the resistance of the descending 8-year trendline. Notably, the XRP price would have to rise to the region around $0.82 to touch the resistance.
The yellow arrow in Jaydee’s chart shows where the XRP price could move. Even if the crypto analyst does not name a specific target, he indicates with the yellow arrow that XRP could potentially reach over $20 by 2025.
In response to community member James’ query regarding the possibility of a 650x increase, Jaydee cautiously tempered expectations. While acknowledging the historical bull runs, Jaydee stated, “I wish.. highly doubt it though brotha.”
At press time, XRP traded at $0.6244.
Featured image from iStock, chart from TradingView.com