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Bitcoin Eyes Second-Biggest Monthly Drop on Record

(Asian News Hub) – Bitcoin is on track for the second-biggest monthly percentage decline on record, despite bouncing from session lows in Asia.

The cryptocurrency changed hands near $36,200 at 9:00 am UTC, representing a 37.5% loss for May. Prices hit a low of $34,195 early today. 

The monthly decline beats the 37% drop seen in November 2018 and is just short of the record 40% slide in September 2011, according to Bitstamp data. 

Ether, the second-largest cryptocurrency, is on track to end May down 12%, the first monthly loss since September 2020. Meanwhile, gold has gained 7%, its biggest monthly rally since July 2020, and the S&P 500 is little changed on the month, per data provided by TradingView.

The bitcoin market looked weak earlier this month amid continued selling by whales, or large investors with an ability to make or break price trends. The cryptocurrency took a beating after Tesla disowned bitcoin as means of payment, citing environmental concerns.

The move dashed hopes for widespread corporate adoption raised by the carmaker’s decision to adopt bitcoin in February. 

The market mood soured further after China’s recent regulatory announcements and on concern of an early scaling back of stimulus by the U.S. Federal Reserve. 

Bitcoin slumped from $58,000 to almost $30,000 in the eight days to May 19 and has traded sideways ever since, with the upside capped by the 200-day simple moving average (SMA) at just above $40,000.

According to blockchain analytics firm Glassnode, the price crash was driven mainly by panic selling by new investors who bought coins during the first-quarter bull run.

Meanwhile, holders and institutions have been buying the dip in a sign of confidence in cryptocurrency’s long-term price prospects. 

The supply held by whale entities – clusters of addresses controlled by a single network participant holding at least 1,000 coins – has increased by over 25,000 BTC to 4.149 million since May 19. 

Looking forward, a sustained accumulation by large investors might be needed to restore battered market confidence. The number of whale entities rose in tandem with the price between October and February.

Chart analysts foresee a relief rally in the short term, as the sell-off looks overdone. 

“Bitcoin is newly oversold from an intermediate-term perspective, and there is a new short-term ‘buy’ signal from the DeMARK Indicators today that supports a two-week rebound,” Katie Stockton, founder and managing partner of Fairlead Strategies, said in a weekly research note published on Monday.

DeMark indicators compare the most recent maximum and minimum prices to the previous period’s equivalent price to measure the demand of the underlying asset. 

Stockton, however, said the bounce is likely to be short-lived because intermediate-term momentum is to the downside, as indicated by the negative reading on the weekly MACD histogram. 

The overall bias remains bullish, with the likes of Ray Dalio, founder of Bridgewater Associates, preferring to hold bitcoin over bonds in an inflationary environment. 

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Bitcoin to get major facelift after four years in November

The upgrade would take about five months as it requires a lot of testing before being fully integrated into the system.

(Asian News Hub) – Bitcoin’s new upgrade ‘Taproot’ has received overwhelming support from miners around the world and is set to take effect from November, CNBC reported.

The new upgrade would mean greater transaction privacy and efficiency which would enable smart contracts, a feature of the blockchain technology which eliminates the need for middlemen.

Taproot is the first and the most anticipated update since the last one ‘Segregated Witness (SegWit)’ in 2017. While the main focus of SegWit was scaling the Bitcoin protocol, Taproot will equip Bitcoin with a new signature scheme known as Schnorr signatures.

Currently, Bitcoin uses the “Elliptic Curve Digital Signature Algorithm,” which is created from the private key that secures the Bitcoin wallet and ensures that it is only used by its owner.

On the other hand, Taproot will switch to Schnorr signatures which is multi-signature transactions unreadable, the report said citing Alejandro De La Torre, Vice President at Hong Kong-headquartered major mining pool Poolin.

“You can kind of hide who you are a little bit better, which is good,”  Brandon Arvanaghi, previously a security engineer at crypto exchange Gemini told the publication.

This would allow greater anonymity for an individual bitcoin address on the public blockchain, but it will make simple transactions indistinguishable from those that are more complex and comprised of multiple signatures, the report added.

The new upgrade will also allow smart contracts cheaper along with taking up lesser space on the blockchain.

“The most important thing for Taproot is…smart contracts,” said Fred Thiel, CEO of cryptocurrency mining specialist Marathon Digital Holdings.

“It’s already the primary driver of innovation on the ethereum network. Smart contracts essentially give you the opportunity to really build applications and businesses on the blockchain.”

The upgrade would take about five months as it requires a lot of testing before being fully integrated into the system.

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Gondola service resumes partially in Gulmarg

Services resumed on trial basis, situation being monitored closely: Dir Tourism Itoo

Jahangir Sofi

(Asian News Hub) – With the graph of Covid-19 positive cases in the valley showing the decreasing trend, the Tourism department Kashmir, has partially resumed the Gulmarg Gondola service on trial basis.

Director Tourism Kashmir, Dr. G. N. Itoo said that the Gondola services have been partially resumed as the Covid situation is evolving which is being monitored closely.

“The Gondola services will be limited only as it has been started on a trial basis. If there are more modalities to be discussed with respect to Covid situation that will be also taken care of,” Itoo said.

“We are ensuring everything is being taken care of from our side, and whenever the Government takes a call, we should be ready to welcome tourists,” he said.

After the tourism was opened in June 2020, the tourism arrival in the valley had gained a reasonably good momentum and the hoteliers and houseboat owners had pre bookings till May end of this year.

However, with the onset of the second wave of Covid-19 which also engulfed the valley along with the other parts of the country, a complete Corona lockdown was imposed in Jammu and Kashmir, resulting in the cancellation of the all the pre bookings giving a deserted look to hotels and houseboats in the valley.

KNO

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Cryptocurrencies: Elon Musk Changes Twitter DP to ‘Triggered’ Crypto Woman

(Asian News Hub) – Elon Musk has changed his Twitter display picture (DP), otherwise known as a profile photo, a character from a Japanese site wearing a Bitcoin dress and posed on the foreground of a $BTC logo.

The character has “Triggered” eyes. Currently, there are no explanations as to why the CEO did it. Still, speculations point out to Musk targeting Bitcoin fans that blame his tweets for the leading cryptocurrency plummet.

Musk’s Tweets Causes Bitcoin Drop

Recently, Bitcoin has dropped in market price and performance despite seeing a rise in its trends, particularly as it is on the road to recovery, following the drastic changes it suffered in the past months. The drop in performance of the leading cryptocurrency was due to Elon Musk’s tweet about it, saying that Tesla has dropped Bitcoin use due to coal energy dependence.

Tesla is known to be a clean energy company, and that Musk is also an advocate for the environment, so dropping Bitcoin was a way to adhere to their beliefs and not something personal against Bitcoin. However, recent developments have pushed Bitcoin purists to think of Musk as the villain, especially with his increased support for Dogecoin.

What Does This Mean?

Musk is always fond of trolling people on the internet, and doing things without explanation even though people would either go crazy about it or have them develop theories as to his next move. However, one speculation is that the CEO was about the “triggered” Bitcoin fans who were affected by the price drop in the market, as brought by his latest tweet.

The CEO did not mean for the prices to go down, but his meme photo tweet still had a massive effect on the cryptocurrency, and in doing so, has triggered the downfall of Bitcoin in the market today.

Currently, Wazirx still lists Bitcoin as the top and leading cryptocurrency, with a $37,500 market price and a 4.33 percent downward trend in the past 24 hours.

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