As the week’s coming to an end, let's start by looking at action in the markets and then diving into developments here at NewsCrypto.
Looking at the chart we can see that the price has been rather stable around the $50k level, ever since the meltdown last Saturday morning. On one hand the bulls haven’t yet shown any particular strength in the price of Bitcoin, as the price is hanging around 30% below its peak price. On the other hand ETH is currently just a little bit over 10% lower than its all time high, as the ETH/BTC chart is hanging around its peak.
Having crashed to as low as 84 EH/s at the start of June, this week we witnessed Bitcoin hash rate return back almost to all-time high levels. The current number is roughly 3% shy of its peak 180 EH/s. Since Bitcoin uses a proof of work consensus mechanism, hashrate is used to measure the total computational power being used to process transactions and mine new coins, thus it’s usually interpreted as a bullish sign for the price of Bitcoin. Additionally, we’ve also reached the lowest level in reserves of BTC on all exchanges (amount of BTC held by all exchanges). Because a decrease in reserves indicates that there is less selling pressure, as people are moving their assets to cold storage, it is yet another indicator pointing towards a reversal.
It’s important to note that there is quite some downward pressure, since macro markets are (and will be in the future) dealing with a default from China’s Evergrande property giant. The failure to make two coupon payments by the end of a grace period on Monday means that the firm has finally defaulted, although this was expected for some time now. While cutting lenders’ reserve requirements will likely help prevent nightmare scenarios of an uncontrolled Evergrande collapse, authorities have made it clear they have no intention of bail out.
When it comes to other major headlines from the crypto news, there have been quite a few, but let’s look solely at the most important ones. On Wednesday Visa announced that they’re launching new consulting and advisory services, to help their clients navigate through the crypto world. According to Visa, their (and also other firms’) interest in cryptocurrencies can at least partly be attributed to trying to remain competitive, as their recent study suggests that 40% of crypto owners would likely (or very likely) switch their primary bank to one that offers crypto-related products in the next 12 months.
Let’s look at developments here at NewsCrypto, as there have been quite a few. This week we updated our academy with a Metaverse and NFTs section. It is available on our platform, where everybody can find extensive crypto educational content for free. I hope that getting through it will give you not only a better insight into the matter, but also an edge in the market, so you can profit off the ongoing trends.
To celebrate the progress, we’ve also burned another million of NWC tokens, which concludes the 8th burning event this year. You can expect two more burns until the end of the year, so get ready! This is not the only way we give back to our community, as we regularly hold giveaway competitions as well. This Friday we had an additional quiz that supplemented the regular Newsco quiz. The total prize pool was 300 NWC tokens, which will be delivered to the most aspiring learners.
On Monday we also released our Grant Program with the aim to find (and also reward) new ideas. The idea is to fund creation of creative ideas that could be implemented in our product’s ecosystem. We want to give highly motivated developers an opportunity to show their skills and determination by not only sharing, but also materializing their ideas.
We’ve allocated 1 million tokens for this program, which will be distributed among development contributors, based on the ideas or tasks they undertake. Having a decentralized ecosystem, where we aim to govern the project hand in hand with the community, the funding amount for each specific program will be partly decided by the governance system. If you have any doubts why you should collaborate with NewsCrypto, let’s just point out that we’re the number one educational crypto project, trusted by countless top tier partners, having a user base of over 200k crypto traders and enthusiasts.
Hoping that the bearish action is about to end, I wish you all a successful week. Enjoy the rest of your Sunday and expect me to update you on our developments and action in the markets at the end of next week.