https://www.reddit.com/r/Bitcoin/comments/15rh379/what_can_we_expect_after_the_next_halving_event/
Monday, August 14, 2023
Cryptocurrency Markets Show Remarkable Stability: Bitcoin's Volatility Trends Signal Potential Price Shift"
The subject of volatility, or the apparent lack thereof, assumes a prominent role in any comprehensive analysis of the present status of Bitcoin.
In spite of substantial media attention, extending beyond the confines of the cryptocurrency sphere, the conspicuous absence of sudden and significant price fluctuations has emerged as the predominant attribute characterising Bitcoin's price dynamics throughout a significant portion of the second quarter.
Examination of the most recent data lays bare the prevailing stasis within the market landscape, offering insights into the subsequent course of action.
The Bitcoin Historical Volatility Index (BVOL) presently registers at 9.57 on a weekly timeframe, exhibiting a rapid regression to historically unprecedented levels, a trend originating from the onset of the current year.
The series of events that transpired subsequent to Bitcoin's departure from a bearish trajectory in January is common knowledge, as evidenced by the impressive 70% cumulative upward movement observed in the first quarter.
Similar conclusions are drawn from the analysis of the Bollinger Bands volatility indicator, a trend that is currently replicating the patterns observed since the commencement of 2023.
The narrowing of the Bollinger Bands serves as a precursor to an imminent price breakout, the specific direction of which remains uncertain. However, the considerable reduction in price dispersion has spurred market participants to brace themselves for a potentially significant shift.
In an insightful post dated August 14th, Checkmate, a prominent on-chain analyst at Glass node, articulated, "The difference between the Upper and Lower Bollinger Bands for Bitcoin stands at a mere 2.9%, representing an unparalleled level of tightness." Checkmate went on to highlight that Bitcoin has exhibited such compressed Bollinger Bands on only two occasions in its history — in September 2016 and January 2023.
We are 8 months away from halving. What does it mean for the world of crypto?
Just wanted to drop a quick update and share some thoughts about where we're at in the wild world of cryptocurrencies. Can you believe it? We're just 8 months away from the next halving event, and you know what that means – or maybe not, cuz you're new to crypto?
What is halving?
A halving – sometimes referred to as halvening – is a planned reduction in rewards miners receive (the term is mentioned in Bitcoin's code). Halvings happen once every four years or so – more precisely, every 210,000 blocks of transactions.
Bitcoin halving chart | Natixis
Why is it important for us?
Bitcoin halving cuts the rate at which new bitcoins are released into circulation in half. Halving acts as a way to simulate diminishing returns, theoretically intended to raise demand. And when demand rises, the price usually follows.
Another bull market?
Historically, these halvings have been like rocket fuel for the crypto market. Will history repeat itself? Could we be gearing up for another bull market? Well, nobody's got a crystal ball, but the signs are there. Look at the growing institutional interest in crypto. Big-name companies are dipping their toes in the water. There's definitely something in the air this time...
I've been through 2 halvings, been around since 2016, and I'm pretty sure that with the current inflation and global economy more and more people will be attracted to this space.
What do you think about the upcoming halving and its effect on the market? Are you accumulating while you still can? Do you think we're headed for a bull market and new record highs?
Bitmain Introduces the Antminer S21 and S21 Pro with Unprecedented Energy Efficiency
Hey everyone! There's some exciting news coming out of the mining world. Bitmain, a leading manufacturer of Bitcoin mining equipment, is set to unveil its latest model, the Antminer S21, during the World Digital Mining Summit 2023 (WDMS) in Hong Kong on September 22nd and 23rd.
What makes the Antminer S21 stand out? Well, according to Bitmain's announcement, this will be the first ASIC with an energy efficiency ratio of less than 20J/T. For those who might not be familiar, energy efficiency is a critical factor in Bitcoin mining profitability. The electricity cost is one of the primary operational expenses in the mining industry. An energy scale of 20 J/T means the device consumes 20 joules for every terahash of hashrate it produces.
Bitmain has been on a journey of increasing efficiency. With the Antminer S9, they broke the 100 J/T barrier for the first time. This was followed by a series of increasingly efficient miners like the S19 (34.5 J/T), S19 Pro (29.5 J/T), S19 XP (21.5 J/T), and the S19 XP Hyd (20.8 J/T).
This year's WDMS event is themed "Mining for the Bull Market," reflecting a bullish sentiment contrasting the market scenario from November 2022. Attendees can look forward to exclusive benefits such as loyalty point programs, credit lines, and special discount coupons for equipment purchases.
Another interesting fact: Bitmain chose Hong Kong as the venue for WDMS 2023 due to its crypto-friendly regulations, after being in Cancún, Mexico last year.
For those interested in the specifics of the new models:
- Antminer S21 ($5,800.00)
- Antminer S21 Pro ($7,000.00)
What are your thoughts on this?
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Extra calculations in case you're curious:
Based on the information from the Minerstat mining calculator, the Antminer S21 Pro model, with its 250 TH/s hashing power, can mine approximately 0.02300 BTC per month given the current network conditions, assuming free/green energy.
- Hashrate: 250 TH/s
- Estimated BTC mined per month: ~0.02300 BTC
This means, the Antminer S21 Pro model can mine approximately $676.2 worth of BTC per month at the current BTC price of $29,400.
So, it would take approximately 10 months to achieve ROI for the Antminer S21 Pro, ASSUMING the BTC price and mining difficulty remain constant and there are no additional costs.
What is cryptocurrency trading and how does it work?
What is Cryptocurrency Trading?
Cryptocurrency trading involves buying and selling digital assets to make a profit. Unlike traditional currencies, cryptocurrencies are decentralized, meaning that they are not controlled by any government or financial institution. Instead, they are based on blockchain technology, which records all transactions and ensures that they are secure and transparent.
How Does Cryptocurrency Trading Work?
To start trading cryptocurrencies, you need to choose a reputable crypto exchange like. Once you have an account, you can deposit funds and start trading. You can choose to buy and hold a cryptocurrency for a long-term investment, or you can actively trade it by buying and selling frequently.
There are many different types of cryptocurrencies available for trading, including Bitcoin, Ethereum, Litecoin, and more. Each cryptocurrency has its own unique features and benefits, so it’s important to do your research before investing.
Factors to Consider When Investing Cryptocurrencies
When trading cryptocurrencies, there are several factors to consider. These include market volatility, liquidity, and security.
Market volatility refers to how quickly and dramatically the price of a cryptocurrency can change. Cryptocurrency prices can be highly volatile, meaning that they can fluctuate rapidly in a short period of time. This can make it difficult to predict price movements and can result in significant gains or losses.
Liquidity is another important factor to consider when trading cryptocurrencies. Liquidity refers to how easily a cryptocurrency can be bought or sold without affecting its price. High-liquidity cryptocurrencies are easier to buy and sell, while low-liquidity cryptocurrencies may be more difficult to trade for forex traders.
Finally, security is another important consideration when trading cryptocurrencies. Because cryptocurrencies are decentralized and not controlled by any government or financial institution, they can be vulnerable to hacking and theft. It’s important to choose a reputable crypto exchange and to store your cryptocurrencies in a secure wallet.
Getting Started with Cryptocurrency Trading
To get started with cryptocurrency trading, you’ll need to choose a reputable cryptocurrency exchange. You should also do your research and educate yourself on the different cryptocurrencies available for trading. It’s important to start with a small amount of capital and to only invest what you can afford to lose.
Once you’ve created an account and deposited funds, you can start trading. You can choose to buy and hold a cryptocurrency for a long-term investment, or you can actively trade it by buying and selling frequently. Remember to keep an eye on market volatility, liquidity, and security when trading cryptocurrencies.
Advantages of Crypto Trading
Cryptocurrency trading offers several advantages over traditional forms of investing. For one, it offers greater liquidity, as cryptocurrencies can be bought and sold more easily than other assets. Cryptocurrencies also have a lower barrier to entry, as you don’t need a large amount of capital to get started.
Cryptocurrencies are also highly secure, as they are based on blockchain technology, which makes it virtually impossible to hack or alter transactions. In addition, cryptocurrencies offer greater privacy and anonymity than traditional forms of investing, as transactions are not tied to personal information.
Disadvantages of Crypto Trading
Despite its many advantages, cryptocurrency trading also has some potential drawbacks. For one, cryptocurrencies can be highly volatile, meaning that their prices can fluctuate rapidly and unpredictably. This can make it difficult to predict price movements and can result in significant gains or losses.
Cryptocurrency trading is also unregulated, meaning that there is no oversight or protection from financial authorities. This can make it difficult to seek recourse in the event of fraud or theft.
In addition, cryptocurrencies are still a relatively new and untested form of investment, and their long-term viability is still uncertain. There is also the risk of technological obsolescence, as newer and more advanced cryptocurrencies may render older ones obsolete.
Despite these potential drawbacks, many investors are still attracted to the potential rewards of cryptocurrency trading. With the right strategy and risk management, it can be a lucrative investment option.
Tips for Successful Cryptocurrency or Stock Trading
If you’re interested in cryptocurrency trading, here are some tips to help you succeed:
– Do your research. Before investing in any cryptocurrency, make sure you understand its unique features and risks.
– Diversify your portfolio. Don’t put all your eggs in one basket. Invest in a variety of cryptocurrencies to spread your risk.
– Have a clear strategy. Decide whether you want to invest in the long-term or actively trade cryptocurrencies, and stick to your plan or better still get the services of an expert to guide you through this. One expert that comes in highly recommended is Arianna Hayford
– Manage your risk. Only invest what you can afford to lose, and set stop-loss orders to limit your losses.
– Stay up-to-date. Keep an eye on market news and events that may affect the price of cryptocurrencies.
Cryptocurrency trading can be an exciting and potentially lucrative investment option for those willing to do their research and take calculated risks.
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