Another week, another round of Crypto Tidbits. Bitcoin has seen quite the tumultuous week.
After rallying towards $10,000 at the start of the week on the back of post-halving buying, seemingly caused by both retail and institutional players, Bitcoin plunged to $8,800 over the course of two days. Altcoins posted similar losses, with some underperforming the market leader and others outperforming BTC.
The drop coincided with rumors that Satoshi Nakamoto — the founder of the flagship cryptocurrency — was dumping his coins on the open market after a transaction was sent from an address created one month after Bitcoin was launched. This rumor has since been disproven by blockchain data.
As reported by NewsBTC previously, blockchain analytics company Glassnode noted on May 18th that the Puell Multiple — the USD value of BTC issued per day over the one-year moving average of the same metric — reached a crucial level.
As the below chart indicates, whenever the multiple entered the green zone, it found a macro bottom.
This strong precedent suggests that BTC is nearing a post-halving bottom and is about to embark on its fourth long-term rally.
Tuur Demeester — founder of Adamant Capital — echoed the optimism in an interview published this week by Messari, a crypto research firm:
“I think a price target of like $50,000 is not insane at all, especially given just how crazy the money printing is. I would even say between $50,000-$100,000.”
Related Reading: Crypto Tidbits: Bitcoin Halving, Reddit Using Ethereum, JP Morgan Dabbles in Crypto
Bitcoin & Crypto Tidbits
- Bitcoin Bulls Roar After “60 Minutes” Segment: Last weekend, the world-famous show “60 Minutes’ on CBS ran a segment in which the Federal Reserve was highlighted. In an interview, the central bank’s chairman, Jerome Powell, said that the trillions of dollars the Federal Reserve has already pumped into the economy is far from the end of the potential stimulus: “There is a lot more we can do. We’re not out of ammunition by a long shot. No, there’s, there’s really no limit to what we can do with these lending programs that we have.” Bitcoin bulls were incredibly pleased by this news.
- No, Chinese Isn’t Banning Crypto Mining: Earlier this week, there was an uproar in the community because an image was leaked of a Chinese government transcript indicating that an agency wanted to ban crypto mining. Asian-centric blockchain and fintech news outlet PANews wrote in regards to the image: “The Financial Administrative of the Sichuan province of China has issued a notice to its subordinate offices ordering them to ‘guide [Bitcoin and crypto] mining entities to end their mining activities in an