Crypto Week in Review: Bitcoin (BTC) Gains 10% Ahead of the Halving
Remember when we asked you to guess the price of Bitcoin (BTC) at the moment of the Halving? Of the 1,000+ responses we received, the average estimate of our ever-so-optimistic community was $17,138.50. With the Halving now just days away, the OG cryptocurrency fought to make honest men and women out of you this week.
On Thursday, Bitcoin soared above $10,000, gaining nearly 10% in 24-hours. The price action came as a storm of positive news began to brew, highlighting Bitcoin as a safe-haven hedge to traditional markets and global currencies at risk of inflation. At the same time, Bitcoin’s hashrate and mining difficulty hit near all-time highs, a sign that miners are increasing production ahead of the Halving. From late March, BTC’s hashrate has risen from around 95 TH/s (terahashes per second) to 116 million TH/s.
The top three altcoins, Ethereum (ETH), XRP (XRP), and Bitcoin Cash (BCH), have yet to react to Bitcoin’s momentum, all ending the week nearly flat. DigiByte continued its parabolic streak, gaining another 18% this week. 0x (ZRX) also added a whopping 104.5%.
If this was any market other than crypto, I would call your collective Bitcoin Halving guesses impossible. Stay tuned. This is about to get interesting
0x (ZRX) +104.5%
Numeraire (NMR) +56.8%
Neo (NEO) +21.1
Verge (XVG) +16.3%
as of 5:45 pm (EST) on 5/9/20
Bitcoin isn’t the only thing booming ahead of the Halving. The market cap of all stablecoins catapulted to $9.5 billion this year, with Tether minting over a billion dollars in April alone. Also, $3 billion worth of stablecoins was deposited on exchanges, a sign many in the crypto community call bullish.
As Ryan Selkis pointed out, investors may be holding their stablecoins on exchanges so they can quickly be put to work in the market as the Halving approaches.
There's now $3 billion++ of stablecoins sitting on exchanges.
If investors wanted to cash out of crypto completely, they would have withdrawn funds to banks.
Instead, we've got more dry powder held in the crypto economy than ever before.
In both real and market cap % terms. pic.twitter.com/rCEYNqcMY0
— Ryan Selkis (@twobitidiot) April 17, 2020
Others are pointing to the increased use of stablecoins in Asian. Darius Sit, the managing partner of QCP Capital, an over-the-counter trading firm based in Singapore, told DeCrypt that ninety percent of its spot-trading business is in stablecoins. He added that they see an average of ten-to-twenty million dollars in stablecoin transaction volume every day.
Legendary Trader Backs BTC
Bitcoin got the backing of Wall Street legend Paul Tudor Jones this week. Much to the crypto community’s delight, Jones, the founder and chief executive officer of Tudor Investment Corp, is reportedly buying bitcoin as an inflation hedge as central banks around the world print money.
“The best profit-maximizing strategy is to own the fastest horse,” Jones said in a market outlook note entitled ‘The Great Monetary Inflation.’ “If I am forced to forecast, my bet is it will be Bitcoin.”
According to Bloomberg news, his fund holds a single-digit percentage of Bitcoin futures.
Finance Magnates: USD-Backed Stablecoins Are Booming Amid the Coronavirus Crisis
Coindesk: 9 Reasons Why Bitcoin Has Never Been Stronger Going Into a Halving
Medium: Steve Ehrlich of Voyager Digital: “Investing During The Pandemic; What Should I Do With My Money Considering All of the Volatility and Uncertainty Today”