Category: Bitcoin

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Bitcoin Mining Power Increases in Australia as Mawson Buys 17,352 BTC Miners

Sydney-based crypto mining company Mawson Infrastructure is looking to increase its mining power in Australia by purchasing 17,352 ASIC bitcoin mining rigs from Chinese manufacturer Canaan Creative.

On August 12, Mawson announced it had purchased an additional 17,352 latest-generation Avalon A1166 and A1246 mining rigs, which will be deployed across the company’s US and Australian operations in late 2021 and early 2022. 

Mawson Sets 5000 HP Goal by 2022

The company is looking to reach its goal of 2000 PH (petahashes) by the end of 2021, and 5000 PH by 2022. If all machines are deployed successfully, Mawson’s current hashrate capacity could increase by 1,500 PH.

Coupled with our extensive power infrastructure across the US and Australia, we look forward to having these units online in late 2021 and early 2022. We again reiterate our end of CY21 goal of 2000 PH and end of CY22 goal of 5000 PH, and look forward to updating shareholders further on hardware purchases in due course.

James Manning, Mawson founder/CEO

Chinese bitcoin mining companies have had a hard time with their businesses thanks to the PRC government crackdown on mining this year, and Canaan is no exception. The company has had to move its operations across borders, mostly to Kazakhstan.

The recent purchase comes in handy for both the mining company and the manufacturer, as hardware supply is becoming harder to get.

We are very happy to have contracted another large order with Canaan, who have been fantastic partners to date. Canaan has delivered consistently and on time, and in an environment where ASIC bitcoin mining hardware supply is once again becoming harder to secure, we are delighted to further cement our partnership.

James Manning, Mawson founder/CEO

As Crypto News Australia revealed a month ago, Mawson Infrastructure acquired 90 percent of Luna Squares, a major US bitcoin mining group, and it plans to fully acquire the company over time. The Canaan deal only consolidates its mining armoury.

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Bitcoin Crypto News Market Analysis Trading

New Record: Bitcoin Realised Market Cap Hits All-Time High

While much of the focus has been on its recent run on the back of strong fundamentals, bitcoin quietly achieved a new milestone – hitting an all-time-high of U$378 billion in “realised market cap”.

BTC realised cap. Source: Glassnode

What is Realised Market Cap?

The standard measurement of market capitalisation is a simple multiplication of all coins in circulation by the current price. At the time of publication, bitcoin’s total market cap is $US899 billion.

Realised market cap, by contrast, is a method of assessing bitcoin’s market cap based on the price at which each coin last moved. Put differently, it measures how much “active” money is in the bitcoin market.

Realised market cap therefore measures the size of bitcoin’s active market cap, which specifically excludes holdings that haven’t changed hands for a long time (ie, long-term HODLers and Satoshi’s stash).

To determine realised market cap, data providers like Glassnode assign time-sensitive values to coins. If, for example, a coin last moved in 2018, when the price of bitcoin was US$6,000, that coin is then priced at US$6,000 rather than at today’s price.

What Does it Mean?

Realised market cap is argued to provide a better estimate of the size of the “active” bitcoin market. This is perhaps reflected in the data, with 1.2 million new users joining the network in the past month.

It may also be useful to note that where the market cap trades above realised cap, the market is in aggregate profit. The inverse applies when market cap trades below realised cap.

If this all sounds a bit technical, Willy Woo breaks it down in simple terms:

Good Times Continue

Bitcoin is up 8 percent on the week and is currently trading at US$47,800. Analysts suggest it may continue to trade in the US$45,000-$50,000 band for some time, while others are eyeing a strong breakout in coming weeks above US$50,000.

For those less interested in short-term price fluctuations and who are in it for the long haul, the chart below offers a useful roadmap of where bitcoin may be going in the next few years. On a linear chart, bitcoin is all over the map. However, on a log-chart (as shown below), the growth trajectory in bitcoin is self-evident.

The easiest, and potentially best, strategy is to simply stack sats and HODL.

BTC pricewith stock to flow model. Source: ChartsBTC
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Bitcoin Cardano Crypto News Ethereum Markets

Crypto Extends Recent Gains, Market Rebounds Back to $2 Trillion

It’s good news for the crypto community as the market recovers positively after months of constant price corrections, once again crossing the US$2 trillion threshold.

Ethereum Up 18%, ADA Surges 40%

On August 11, the overall crypto market retook its $2 trillion peak following months of massive price corrections that wiped $1 trillion from the market. Bitcoin and most cryptocurrencies were on the green, especially Ethereum, which has been up over 18 percent following the activation of the London hard fork.

Throughout last week, BTC surged 14%, currently priced at US $47,239 as per data from Coinmarketcap. BNB is up 17%, Ripple by 39%, and the one that surprised everyone is ADA, which performed extremely well in the market – up by 40% – after Cardano founder Charles Hoskinson announced that the Alonzo hard fork is imminent. DOGE almost took the protagonism of ADA by surging 39% in the market.

Market Thrives Despite Regulatory Hurdles

The crypto market is ignoring global regulatory uncertainties. Many thought the recent bipartisan infrastructure bill imposed by American authorities would tumble the market, yet it didn’t have as strong an effect as expected. 

As Crypto News Australia has reported, the battle for crypto amendments in the US sparked a heated discussion between politicians and industry leaders on Twitter, many calling for proper, revised amendments to change the bill’s outdated and poorly written language. There might be a light at the end of the tunnel with Democrat Senator Anna Eshoo urging House of Representatives Speaker Nancy Pelosi to amend some of the flaws in that bill.

Despite the regulatory uncertainty, bulls are taking the upper hand, and the Bitcoin Fear & Greed Index is finally showing extreme greed after three months. We could also have a new wave of SMSFs approaching the market, as happened on April 8 this year.

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Australia Bitcoin Scams

Scam Alert: Aussies Beware of Fake Crypto Trading Websites

As the number of crypto scams continues to grow, Australians should be wary when entering certain fake crypto trading websites.

Beware of Fake Crypto Trading Platforms

Scamwatch, run by the Australian Competition and Consumer Commission (ACCC), recently issued warnings on how scammers are targeting Aussies to rip them off using fake platforms.

Not only are scammers designing highly detailed websites posing as crypto exchanges, they are also targeting Aussies on apps including Telegram and other channels to lure investors by offering trading tips and then sending them to fake platforms:

How To Spot These Scams and Avoid Them

There are many types of Bitcoin scams going on. The most common are fake exchanges and wallets, blackmail scams and impersonation giveaway scams.

First of all, a legitimate crypto exchange or broker will never reach out to your Telegram, Gmail or any other channel to offer you trading tips or whatever strategy they come up with. Scammers are persistent, so expect them to make several calls or send emails offering investment advice or trading tips. Another red flag is ads for sites or seminars with “risk-free” investments, or the classic how to “get rich quick” invitation.

For more information, read our guide about common bitcoin scams and how to protect yourself from making a bad decision and losing your capital.

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Bitcoin Crypto News

Bitcoin Users Explode: 1.2 Million Added in the Past Month

On the back of positive sentiment and growing evidence that bitcoin may have turned a corner, user growth data is painting an even more bullish picture.

Bitcoin v user growth. Source: Willy Woo

User Growth Equivalent to Adding Mauritius in a Month

According to on-chain specialist Willy Woo, the chart above illustrates that the number of users (purple line) is growing at its fastest rate ever.

In fact, over the past 30 days, 1.2 million users have been added to the network. This, according to Woo, doesn’t include off-chain users on exchanges which typically see up to three times that number.

Bitcoin – Still So Early

The S-curve of technology adoption is a useful way of considering where we are in the adoption of Bitcoin. It has five main phases:

  1. Innovators – adoption is slow as only a small group make a bet on a new technology before it is proven or widely accepted.
  2. Early Adopters – they accelerate the technology’s growth and evangelise its value and are often seen as representing the tipping point towards broader adoption.
  3. Early Majority – this is where the slope is steepest, and hence the rate of adoption is at its fastest.
  4. Late Majority – adoption continues growing at a solid pace as more are convinced to participate, and the technology appears almost everywhere.
  5. Laggards – these are holdouts, those who are last to accept/adopt a technology.

Bitcoin Archive is one of many commentators to suggest we have likely shifted into the Early Majority phase of the technology adoption S-curve, the phase at which growth is fastest.

Along similar lines, Willy Woo tweeted earlier this year that in terms of Bitcoin adoption, we are more or less where the internet was in 1997.

Price and Fundamentals Don’t Always Align

While most investors are often focused solely on bitcoin’s price, it is worth taking heed of Mark Yusko’s advice:

Price is a liar.

Chief investment officer and managing director, Morgan Creek Capital Management

Yusko often advises new investors to focus on Bitcoin’s fundamentals over price. This includes metrics such as user growth, hash rate and growth in the number of nodes. These cumulatively tend to provide a better overall picture of the health of the network.

The foundation appears set for bitcoin to push beyond US$50,000 in the near term, though if one were to take Yusko’s advice on board, it really shouldn’t make all that much difference to the average investor.

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Australia Bitcoin Crypto News Ethereum

Alex Saunders’ Woes Continue: $479,000 Lawsuit Filed Over Unpaid Crypto Loans

Australian crypto influencer Alex Saunders, who went to ground last month after rumours of multiple defaulted loans went wildfire on Twitter, is the subject of a near half-a-million dollar lawsuit filed this week.

New Zealand investor Ziv Himmelfarb is seeking A$479,270 in losses and damages for cryptocurrencies he allegedly loaned Saunders to invest in a putative stablecoin project:

In the statement of claim filed by lawyers for Himmelfarb in the Supreme Court of Victoria, he alleges that Saunders contacted him via Facebook in February and offered him an interest in a “long/short crypto fund”.

Himmelfarb claims he transferred 4 bitcoins to Saunders, which at the time were valued at A$269,682.14.

In April, Saunders allegedly asked Himmelfarb to invest in a “DCB project” and was transferred the equivalent of $65,282.67 in USDC.

No Goods, No Services, No Reimbursement

Saunders is alleged to have provided no goods or services to Himmelfarb for the digital currencies transferred, nor has he reimbursed the funds despite several requests to do so.

Himmelfarb further alleges he transferred to Saunders 30 ETH coins worth A$144,305.35 in May by way of a loan, which also remains unpaid.

The A$479,270.16 in loss and damages Himmelfarb seeks includes the monetary value of the combined digital currencies loaned to Saunders, plus interest and costs.

“Wrongfully, the defendant has failed and/or refused to transfer to the plaintiff the bitcoins, USDC and ETH coins,” states the writ lodged in the commercial division of the Victorian Supreme Court.

Nugget’s News founder Alex Saunders. Source: twitter.com

Saunders (above), who is based in Launceston, Tasmania and is the founder and CEO of digital media channel Nugget’s News, has yet to file a defence and remains silent on this and other matters relating to unpaid crypto loans.

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Bitcoin Crypto News Market Analysis Markets Trading

Bitcoin Bulls Say Golden Cross is ‘Imminent’

The bitcoin golden cross is a highly anticipated technical indicator that typical foreshadows bullish price action. Bitcoin analysts, investors and traders are looking closely at current price movements which at present suggest a strong push is imminent in the coming weeks.

What is the Golden Cross?

According to Binance Academy, a golden cross is a chart pattern where a shorter-term moving average (MA) crosses above a longer-term moving average. This is typically considered to be a bullish signal.

A golden cross occurs in three phases:

  1. There’s a downtrend where the shorter-term MA is below the longer-term MA.
  2. The market reverses and the shorter-term MA crosses over the longer-term MA.
  3. A continued uptrend starts and the shorter-term MA stays above the longer-term MA.

When considering a golden cross, the most commonly used moving averages are the 50- and 200-day periods. Once the crossover happens, the longer-term moving average is typically considered to be a strong area of support.

Golden cross example. Source: Binance Academy

The opposite of a golden cross is a death cross, where a shorter-term moving average crosses below a longer-term moving average. This is typically considered to be a bearish signal.

Potential Signs of Bitcoin Golden Cross

The chart below illustrates the potential intersection between the blue line (50-day MA) and black line (200-day MA), signalling a potential golden cross. Notice the inverse (death cross) that occurred towards the end of June highlighting a market crippled by fear.

Signs of golden cross. Source: Rekt Capital

Analysts suggest that a golden cross so soon after a death cross would create a “face-melting pump” reminiscent of the 2013 and 2017 bull cycles.

Rekt Capital, one of the more active technical analysts on Twitter, suggests it may well happen within days.

Will US$50,000 Prove to Be a Strong Resistance Level?

Despite the bullish talk of golden crosses and positive on-chain metrics, others have been more circumspect suggesting that bitcoin first needs to overcome the psychological barrier of US$50,000.

At this point, momentum appears to have shifted towards the bulls. Well-known podcaster Scott Melker seems to think so too and offers some interesting insights into the current market dynamics.

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Bitcoin Crypto News Market Analysis Markets Trading

BTC Breaks Over $60,000 AUD Triggering Key Bullish Indicator

The evidence is mounting that bitcoin is likely to continue its recent upwards price momentum. In what is widely regarded as a bullish market signal for the asset, bitcoin has now risen above the 200-day simple moving average (MA), an indicator watched closely by investors to determine whether the asset is trending either bullish or bearish.

Bitcoin moves above 200 day moving average. Source: Happy Lisaa (Twitter)

Bitcoin Reclaims 200 MA – What Next?

In advance, analysts were broadly in agreement that a daily close above bitcoin’s 200 MA was bullish.

Once the 200 day MA was surpassed, analysts began offering suggestions as to what sort of resistance might be on the horizon.

Katie Stockton of Fairlead Strategies argued that if the price continued upwards as she expected, it was likely to encounter resistance close to US$51,000. William Noble, chief technical analyst of research platform Token Metrics, offered similar input:

$43,700 is an important resistance point for bitcoin … if bitcoin moves above that level, and successfully retests it, the uptrend can accelerate. $49,000 could be the next stop and I would not rule out a gap move back to the highs at $64,000.

William Noble, chief technical analyst, Token Metrics

Others, such as Jake Wujastyk of TrendSpider, put the resistance level for bitcoin around US$45,000. According to him, the next level to watch above this would be the US$50,000 psychological level.

This sentiment was shared by John Iadeluca, founder and CEO of Banz Capital:

The price of $50,000 stands as a key psychological, as well as technical, level that holds immense selling pressure.

John Iadeluca, founder/CEO, Banz Capital

Focusing on on-chain analytics, Will Clemente suggested that bitcoin still had some way to go to address the current supply shock under way:

Bitcoin Gains Despite Regulatory Uncertainty

Remarkably, bitcoin’s current upwards trend is happening at a time of great regulatory uncertainty in the US, where a bill looks set to be passed that will have deleterious consequences for the entire crypto industry. For some reason or another, bitcoin doesn’t seem to care.

Honey badger doesn’t care. Source: Marek_BTC
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Bitcoin Crypto News Gold Market Analysis Markets

Gold Tanks as Bitcoin’s Price Soars

One of the most popular narratives surrounding bitcoin is that it is “digital gold”. At a time of unprecedented global fiscal and monetary expansion, one would have expected bitcoin’s physical counterpart to shine. Instead, it’s endured a rather torrid time that has left investors wondering whether it still has value in a diversified portfolio.

Switching the Physical for Digital

It’s well-documented by now that younger generations around the world are showing a distinct preference for all things digital. From India to Australia, millennials are choosing to invest in bitcoin over gold.

Gold has traditionally been considered a hedge against inflation, but over the past 18 months, gold bugs have had difficulty explaining its underperformance relative to almost all other assets, especially against bitcoin.

Gold price. Source: Goldprice.org

Bitcoin Priced in Gold

In considering the relative performance of bitcoin and gold, it is also useful to consider the performance of bitcoin priced in gold. Unfortunately for gold enthusiasts, this metric doesn’t paint a pretty picture either.

Bitcoin priced in gold. Source: Buybitcoinworldwide

Will Bitcoin Flip Gold?

With a current bitcoin price of US$43,121, bitcoin’s market cap is around US$809 billion. This is dwarfed by physical gold’s market cap, estimated to be around US$10 trillion. Commentators have long opined about when bitcoin would overtake gold’s market cap – the so-called “flippening”.

When will bitcoin flip gold? Source: Ecoinometrics

Based on the chart above, that may be out of reach for the foreseeable future, however given the surprises we’ve seen over the past 18 months, anything is possible.

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Bitcoin Crypto News Markets

Bitcoin Bulls Are Loving Latest On-Chain Metrics

While Bitcoin’s price action is determined by multiple variables, on-chain data provides useful clues of the direction in which the market may be heading. The latest data from leading on-chain analysts suggests that some sharp upwards price action may be just around the corner.

Bullish Signals

Despite bitcoin being up 263 percent over the past 12 months, bitcoin bulls have undoubtedly had their conviction tested in 2021. From China banning bitcoin mining to seemingly endless sideways movement to persistent fear gripping the market, it hasn’t been smooth sailing for the king of crypto. However, on-chain analytics are offering some positive signs for the coming months.

For starters, the last week of July saw 100,000 bitcoins leaving exchanges, as well as hitting a 2021 low of 13.2 percent of circulating supply left on exchanges. As a reminder, outflows typically indicate a shift towards long-term holders.

Exchange inflows and outflows. Source: Glassnode
Balances on exchanges. Source: Glassnode

In addition, compared to the US$260 million in losses from the previous week, gains were almost 10 times higher.

Realised profit compared. Source: Glassnode.

Lastly, a useful lagging indicator highlighted by on-chain analyst Will Clemente is the supply shock ratio. Note how the price below lags materially behind the purple line. This indicates that bitcoin may well be under-valued at current prices with a potential price rise on the horizon.

Price lagging behind supply shock. Source: Glassnode

Where is Bitcoin Going?

While bitcoin has previously trended within the parameters of the four-year halving cycles, in a recent episode of the Wolf of All Streets podcast, analyst Willy Woo suggested this may no longer be the case and that we may be in the “last cycle”.

He argues that as the market has matured, miners have increasingly less influence on sell pressure and therefore prices. Going forward, it is possible that the market price will be more a function of macro supply and demand, than the four-year halvings.

While price predictions abound and are likely to be inaccurate, it does appear as if the market is slowly moving in a bullish direction.

At the time of publication, Bitcoin is up almost 6 percent on the week and trading at US$43,465.83.