Welcome to the 53rd issue of the Broker’s Beat. This week, the Polygon Matic network got hacked, and we witnessed the crypto market cap hit $2 trillion for the first time since May.
BY THE NUMBERS
SNIPPETS
Nasdaq-Listed Tech Company Powerbridge Is Entering Crypto Mining Market
Source: U.Today
“According to a recent announcement, the $61 million Powerbridge company is planning to enter the cryptocurrency mining market. The company’s plan is to mine Bitcoin and Ethereum globally.”
iMD Crypto Mining Rigs Get Solar Power Upgrades
Source: BeInCrypto
“Cryptocurrency technology development company, iMD, has announced an eco-friendly upgrade to its crypto mining rigs. According to a press release, iMD stated it has implemented solar-powered cryptocurrency mining by upgrading its server mining rigs.”
CHINESE CRACKDOWN ALLOW NORTH AMERICAN MINERS TO HODL MORE BITCOIN
Source: Bitcoin Magazine
“In July, North American bitcoin miners have enjoyed a bigger bitcoin production without meaningful increases in hash rate capacity. Five publicly listed firms mined a combined total of 1,802 BTC that month, a 58% average increase over June.”
These five North American firms mined 58% more bitcoin in July thanks to China
Source: The Block
“Five publicly listed North American bitcoin mining firms have churned out a total of 1,802 bitcoin in July – on average 58% more than what they did in June.”
Cryptocurrency mining under proposed US policy changes
Source: CoinTelegraph
“The impact of tighter crypto reporting requirements in the digital asset provision of the Infrastructure Investment and Jobs Act will concentrate on cryptocurrency mining.”
THE BITCOIN BEAT
BTC/USD
A snapshot of Bitcoin’s spot price as of this writing is $44,350.00 representing 3.05% decrease in the past 24 Hours and 6.25% increase in trading volume. The 30-day volatility of BTC is 54.36%. Bitcoin remains the top cryptocurrency trading with a support at $40,000 and resistance at $47,000.
ETH/USD
ETH is trading at $3,076.28 as of this writing, representing a 24-Hour increase of 1.63%, and 30-day volatility of 61.31%. Over the last 24 Hours, the trading volume decreased by 8.46%. As of today, ETH holds 19.44 % of the cryptocurrency market, making it the second largest coin traded.
INFLOW/OUTFLOW MONITOR
With green days taking their toll on the market on consecutive days, the crypto market is looking promising now. The market exchanges reserve for BTC has been steadily consolidating and trading sideways within the past two weeks around 2.43 – 2.45M BTC after crashing from 2.53M on July 26, 2021.
From this chart, it is safe to say that there has been an overall decrease in the selling pressure of BTC, with more traders preferring to hold out their bags in external wallets rather than exchanges wallets.
The BTC all exchanges netflow chart has also seen a similar sideways trend during this week, but recorded a value of -3.59k BTCon August 10, 2021. This negative netflow value signifies an increase in BTC outflow relative to BTC inflow to exchanges wallets. There’s a greater transfer of BTC from spot exchanges wallets to external wallets.
HASHRATE ANALYSIS
With the crypto markets starting to embrace the reality of clean mining operations, the mining hashrate has climbed steadily. States like Texas have started to embrace more miners that were sent out from their previous mining hubs in China. The current mining hash power value as of August 11, 2021, is 112.9m Tera hashes per second since hitting an all-time low of 84.79m Tera hashes per second on July 3, 2011.
More publicly-listed companies have picked an interest in crypto mining and have begun to amass fundraisers. The recent gains in Bitcoin price have benefited these listed companies that deal in Bitcoin mining. Popular bitcoin mining institutions such as Riot Blockchain and Marathon Digital Holdings have seen their prices rally into higher values since hitting previous lows.
TRADER’S DIGEST
As we continue to see a lot of consecutive green days within the crypto markets since the beginning of August, Bitcoin is looking ready to surge upward and test new major resistance levels at 46k and even 50k. The news has had a significant impact on the crypto market and even alt coins are looking to rally as we continue into the end of the month. Here are some of the crucial fundamentals to take note of:
The infrastructure bill has caused panic among cryptocurrency holders, especially those living in the United States. It May even take months before that happens, seeing as the House does not resume until September 20, 2021. We have to be aware that there are bigger politics at play here. General sentiments believe that this is good news for crypto and it may be until 2023 before this is completely passed. It is important to note that this bill will only mean that the US government will tax the crypto market higher than we would expect and has nothing to do with banning cryptocurrencies.
There was a recent hack to the Polygon Matic network which is the biggest crypto hack in history. The hackers were able to swipe $600 million and reports say that they have returned $258 million of the stolen funds. They pulled off this successful attack on the decentralized finance (DeFi) Poly network by using the cross-chain protocol to steal $600 million from Ethereum network, Binance Smart Chain and Polygon network combined. Experts believe this was a well-planned attack and the hackers must have been at it for a while.
Despite the FUD and bad news that has been flying around recently, the crypto space has held strongly against support levels. This is a great fundamental signal that the markets are looking to break upwards again barring any major bad occurrence as we head into the end of 2021. As at August 11, 2021, the total crypto market cap hit $2 trillion again since May 2021. Hopefully, things continue to go in the bullish direction.
However, the bears believe that this is only a bull trap and that history will repeat itself again like it did in the 2018 bear cycle.
That’s all for this week! If you have any questions about what we talked about here or would like to explore trading with us, please reach out here.
Happy trading!
The Secure Digital Markets Team
