Bitcoin Weekly (5/8/2023)

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Written by

CryptoMasterMiner

DeFi Yield Farmer Liquidity Provider Crypto Lender, Miner, Investor & Blogger

1 year ago

In community: Everything Crypto(f12e)

Topics: Cryptocurrency, Crypto, Bitcoin, Finance, Investment

Bitcoin Weekly - Edition 58

Bitcoin (BTC) crept up last week despite higher-than-expected US job gains until spikes in fees along with BTC withdrawal halts on Binance caused the largest cryptocurrency to fall over the weekend. How will Bitcoin perform as we open the week against the backdrop of these two issues and other microeconomic factors in play this week?

Looking at on-chain data, Binance paused Bitcoin withdrawals three times over the weekend blaming the stoppages on the congestion occurring on the Bitcoin network itself. Binance CEO Changpeng Zhao, also known as CZ, put the 'FUD' label on the weekend's issues. It looks like the problem was more due to high volume than actual congestion on the network.

Fees on the Bitcoin network were the highest we have seen in years and can be blamed for something that miners have rarely experienced since the coin's inception in 2009 as they earned more from actual fees (6.7 BTC) than from mining block 788695 itself (6.25 BTC). In other words, the amount of Bitcoin earned from the block subsidy for solving the mathematical equation is equal to a fixed amount of new BTC (6.25) which was lower than the fees generated within the block (6.7).

Why are fees skyrocketing as of late? There has been an introduction of the BRC-20 token standard on the network to be able to mint fungible tokens. New meme coins, like PEPE, are increasing the number of transactions resulting in higher fees. On CoinGecko's Top Trending Cryptocurrencies Today, PEPE was actually the top-ranked coin at the time of writing this article and up 149% in the past seven days.

Looking at one of Bitcoin's biggest price drivers, the US economy and specifically interest rates, we have the April print of the United States Consumer Price Index (CPI) on tap for Wednesday. The CPI is a highly scrutinized and widely used figure when looking at inflation. While that will likely have the most impact on stock and crypto prices, we also have jobless claims and Producer Price Index (PPI) figures due out on Thursday. If that wasn't enough, we also have the consumer sentiment data due out to close the week on Friday and have four Federal Reserve speakers this week as well. We also have the last of the US corporate first-quarter earnings reports this week. Buckle your chin straps, it could get a little bumpy this week.

Looking at technical analysis, the 50-day exponential moving average (EMA) was sitting around $50 below $28K and looked to be a support level but BTC broke below that line indicating a bearish move today. We also had the relative strength index (RSI) fall below a floor at 45.00 also indicating a bearish market currently.

The Crypto fear and greed index highlighted below is 60 and down three points from last week staying in the "Greed" range.

Ten Must-Read Bitcoin Articles This Week

Block Demand Leads to Fee Spike as Bitcoin-Based Memecoins Flourish (CoinDesk)
Binance twice pauses bitcoin withdrawals due to 'large volume' (MarketWatch)
Bitcoin options: How to play it when BTC price moves up or down 10% (Cointelegraph)
Bitcoin Faces Two-Block Chainsplit: Here's What It Means (U.Today)
Bitcoin panic: Network contraction points to looming market crash (Finbold)
Bitcoin Ordinals: Miner fees breaks new record, assessing the effects on BTC (AMBCrypto)
Bitcoin vs. Ethereum: Which Is the Better Buy? (US News Money)
Binance working to enable Bitcoin lightning network (CryptoSlate)
‘Bitcoin is not under attack:’ BTC maxis allay fears of a DoS offensive (Cointelegraph)
World's Biggest Bitcoin Event To Feature US Presidential Candidate As Keynote Speaker (Bitcoinist)

Bitcoin Price Statistics (as of 5/7/2023, weekly close)

Bitcoin Price = $28,425
Last Week = $27,591
Weekly High = $29,724
Weekly Low = $27,740
Market Cap = $539,543,310,060
Market Cap Dominance =45.043%
All-Time High = $69,044.67 on November 10, 2021


statistics provided by CoinGecko

Bitcoin Fun Fact of the Week

The total mining power of the Bitcoin network is basically equal to 300 times the combined power of the world’s top 5 supercomputers.

Bitcoin Mining Statistics

Miners = 5,321,099
Hashrate = 381.65 EH/s
Difficulty = 48.01T
Emission (24hr) = 925 BTC
Circulating Supply = 19.37M (92.2%)

statistics provided by MiningPoolStats

Crypto Fear & Greed Index

index provided by Alternative

What is Bitcoin?

Bitcoin (BTC) is a decentralized digital cryptocurrency. Bitcoin was invented by the person or persons under the pseudonym Satoshi Nakamoto as described in the Bitcoin Whitepaper released on October 31, 2008. The original cryptocurrency began trading in January of 2009 and could be transferred in a peer-to-peer fashion implemented using open-source software. The transactions are recorded and stored on a public ledger called a blockchain. Only 21 million Bitcoins will ever be minted with one million being owned by its creator(s).

For more on Bitcoin, please read What is Bitcoin? [A comprehensive Guide to Understanding Bitcoin] on Publish0x written by Mr.CryptoWiki

For information on the Bitcoin white paper, please read I Finally Read the Bitcoin Whitepaper on Publish0x written by CryptoMasterMiner

Find Bitcoin on Bitcoin.org, Reddit, Twitter, Instagram, Facebook

* Where to Buy and HODL Bitcoin (Referral Links) *