Dear Teroxx Community,
This week we saw a digital asset market which showed little change on a weekly basis, but led to minor sell-offs in some altcoins.
Weekly overview
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Digital Asset News
As Bitcoin miners eagerly vie for the remaining 2 million BTC, the performance and difficulty of the blockchain network are increasing in lockstep. Bitcoin (BTC) continues to build on its reputation as the most secure blockchain network around, with mining difficulty hitting a new record high for the second time in the month of April. The market-leading cryptocurrency achieves this with a jump in difficulty from 28.587 trillion to 29.794 trillion. Points.
A higher mining difficulty simultaneously means higher available processing power when mining a BTC block, which in turn makes it all the more difficult for malicious actors to take over or manipulate transactions. This is therefore almost impossible at this point in time. The on-chan data give reason to hope that, after hashrate and difficulty, the bitcoin price could soon be on the rise again.
The world’s largest asset management company wants to offer its clients indirect access to the crypto market, in which the investment firm still sees a lot of growth potential. Accordingly, the world’s largest asset manager, which currently manages assets worth just under $10 trillion. US dollars under management, has now launched the so-called Blockchain and Tech ETF (IBLC) this week.
The $4.7 million ETF does not invest directly in cryptocurrencies or crypto investment products, but instead tracks various companies within the crypto industry.
The ETF is made up of 41 different securities, of which the largest share (11.45%) is the American crypto exchange Coinbase. This is followed by bitcoin (BTC) specialist mining companies Marathon Digital Holdings (11.19%) and Riot Blockchain (10.41%).
To leave room for future investments in the crypto market, the ETF has a cash portion of 9.15% in the form of US dollars.
“We believe that the broad potential – arising from the use of blockchain technology in areas such as payments, contract settlements and consumption – has not yet been sufficiently priced in by the market.”
Although the U.S. dollar seems to have ended its current high today for the time being, the bitcoin price has not yet been able to convert this happy news into new gains and therefore remains well below the psychologically important $40,000 mark.
However, macroeconomic factors are still not playing into the cards of the market-leading cryptocurrencies, as the US Federal Reserve continues to push ahead with its planned debt reduction, which generally has a negative impact on risky investment products. In turn, crypto data analysts at Whalemap are looking at the current behavior of major bitcoin investors, known as whales, whose buying behavior is currently similar to what it was during the bottoming out period in late 2018.
The data to that effect reveals that the whales with assets between 1,000 – 10,000 BTC are buying at the moment at a similar rate as in December 2018, when BTC/USD stood at a meager $3,100. Accordingly, the current buying volume of large investors is even higher than in March 2020, when the bitcoin exchange rate had crashed to 3,600 US dollars.
Technical term of the week
Network Difficulty: A higher mining difficulty also means higher available computing power when mining a BTC block. As a result, the higher the Difficulty is in line with the Hash Rate, the stronger the network is.
Digital asset market
Thus, a resistance, which is broken playfully in a bullish market week, became visible and a strong support around $37,500 was confirmed.
Bullish outlook: $40,000 is the first psychologically important hurdle. Following that, a bounce towards $43,000 would be possible.
Bearish outlook: Loss of the support region at $37,500 would provide further selling pressure in the market.
