Short-term investors have driven down the Bitcoin price by cashing in on the latest surge. But that could be a good thing. Here’s why.
That’s according to some Bitcoin-centric analysis from blockchain data analytics gurus Glassnode and Blockware Solutions.
The thing about that is, however, it’s regarded as a potentially bullish sign when considering a metric referred to as the short-term holders’ (STH) spent output profit ratio (SOPR).
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Long story, er short, Bitcoin’s short-term investors appear to be making profit again, which is regarded as a good sign for potential continuation and bull-market conditions.
This tweet from the account “Ordinal Miners” shows the Glassnode chart…
3/3 ð¼ Bitcoin near-term outlook appears bullish as blockchain data reveals short-term holders are moving coins at a profit. The short-term holder’s spent output profit ratio (SOPR) has crossed above 1, indicating capitulation from short-term holders and potential price support pic.twitter.com/ZuqzBeHccy
— Ordinal Miners (@Ordinal_Miners) May 29, 2023
… And by way of further explanation, according to a note in Blockware Solutions’ latest weekly newsletter: “After a brief stint of coins moving at a loss, STH-SOPR is now back above 1. This is bullish for near-term price action as it shows capitulation from short-term holders.”
Heavy Bitcoin mining tax to be blocked
A controversial Bitcoin mining tax proposal looks like it’s set to fall on the scrapheap amid the likelihood of the US debt ceiling raise agreement coming to fruition between the Democrats and Republicans.
The tax proposal, put forth as part of Biden’s FY 2024 budget would have seen a 30 per cent tax on electricity used by crypto miners. As you might expect, the crypto/Bitcoin mining industry, which the US dominates, has been a tad upset about the idea.
A tweet from Republican Congressman Warren Davidson noted that the debt-ceiling deal blocks “proposed taxes”:
Yes, one of the victories is blocking proposed taxes.
— Warren Davidson ðºð¸ (@WarrenDavidson) May 29, 2023
MORE FROM STOCKHEAD: BTC, ETH bull trend ‘can’t be clearer’ | RBA moves ahead with CBDC | DeSantis spruiks Bitcoin plot narrative
Top 10 overview
With the overall crypto market cap at $US1.2 trillion at noon Tuesday (AEST), down about 1.3 per cent since the same time Monday, here’s the state of play among top 10 tokens – according to CoinGecko.
Source: CoinGecko
Bitcoin has pulled back below $US28k again, then bounced off a level just below $US27.6k to hover above $27,750.
Dip, retest support and continuation? Perhaps. But here’s a more technically analytical take that might suggest a further short-term pullback…
Meanwhile, here’s a confident large fish, or at least a swooping “birb” – Adrian Zduńczyk, a popular Bitcoin/crypto trader/analyst and founder of the trading group known as The Birb Nest…
Despite some renewed market confidence we’re seeing so far this week, however, as Collective Shift’s Matt Willemsen points out, May looks like being the first month so far this year in which the price of BTC will print a red candle. Not a massive one, mind…
Uppers and downers
Some of the biggest 24-hour gainers and losers at press time. (Stats accurate at time of publishing, based on CoinGecko.com data.)
PUMPERS (11-100 market cap position)
- marumaruNFT (MARU), (market cap: $US499 million) +32.1 per cent
- IOTA (MIOTA), (market cap: $US592 million) +6 per cent
- Quant (QNT), (market cap: $US1.63 billion) +4.9 per cent
- Lido DAO (LDO), (market cap: $US1.93 billion) +4.5 per cent•
- Injective (INJ), (market cap: $US597 million) +4 per cent
PUMPERS (lower, lower caps)
- Pink BNB (PNB), (market cap: $US19 million) +54 per cent
- Velo (VELO), (mc: $20 million) +24.1 per cent
- Dione (DIONE), (mc: $US29 million) +22.4 per cent
- Artificial Liquid Intelligence (ALI), (market cap: $US97 million) +22.3 per cent
- Everscale (EVER), (market cap: $US95 million) +21.7 per cent
- REI Network (REI), (mc: $US28 million) +21.4 per cent
Visit Stockhead, where ASX small caps are big deals
SLUMPERS (11-100 market cap position)
- Optimism (OP), (market cap: $US511 million) -8.1 per cent
- Render (RNDR), (mc: $US933 million) -6.2 per cent
- Casper Network (CSPR), (mc: $US549 million) -5.3 per cent
- Fantom (FTM), (mc: $US921 million) -5 per cent
- Conflux (CFX), (mc: $US657 million) -4.9 per cent
SLUMPERS (lower, lower caps)
- Decimal (DEL), (market cap: $US96 million) -47.8 per cent
- COCOS BCX (COCOS), (market cap: $US95 million) -24.9 per cent
- Lybra Finance (LBR), (market cap: $US18 million) -23.6 per cent
- 0X0.AI (0X0), (market cap: $US46 million) -23.4 per cent
- Open Campus (EDU), (mc: $US207 million) -14.5 per cent
Around the blocks
Some pertinence and randomness that stuck with us on our morning moves through the Crypto Twitterverse.
In 2014, most investors considered $NVDA, priced at ~$5, simply a PC gaming chip stock. In contrast, @ARKInvestâs first principles research pointed to #Nvidia as the premier equity play on #AI. Now up ~80-fold, investors seem to think NVDA is the only AI play. It is not! https://t.co/RzII3KMCGu
— Cathie Wood (@CathieDWood) May 29, 2023
This content first appeared on stockhead.com.au
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