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Bitcoin has been the flagship cryptocurrency for over a decade, but since the emergence of Ethereum and its native token, Ether, many analysts have compared and contrasted the two cryptocurrencies. Recently, Tuur Demeester, a board member of the Bitcoin Texas Foundation, explained why he is bearish on Ethereum compared to Bitcoin. He claimed that he is "shorting" Ethereum against Bitcoin, meaning he is betting that the price of Ethereum will fall in comparison to Bitcoin. Demeester detailed 7 reasons why he thinks Ethereum will depreciate compared to Bitcoin.

Demeester mentioned the "sell the news" strategy. This is an investment tactic that relies on market reaction to important events or announcements. Investors often buy a cryptocurrency on rumors or speculations of significant events or developments, and when the news is finally confirmed, the price of the asset drops, as investors sell their positions to make quick profits. This happened after Ethereum's Merge in September 2022, which was a significant event that caused a lot of anticipation. However, after the Merge, there are no more similar events of comparable magnitude to boost the price of ETH.

Demeester warned about the legal storm for "DINO" cryptocurrencies, which stands for "decentralized in name only." Demeester believes that all cryptocurrencies that are not truly decentralized will fall victim to regulations. Although he did not clarify, it could be inferred that he believes Ethereum falls into this category due to its founder Vitalik Buterin's significant influence over the network's decision-making and the powerful organization that finances Ethereum's development.

Demeester pointed out that the narrative of "digital gold" is more robust than that of "Web3," which is Ethereum's slogan. Digital gold is a term used to describe Bitcoin as a store of value similar to gold. Demeester believes that the narrative of Bitcoin as digital gold is stronger and more appealing to investors than Ethereum's narrative of Web3, which focuses on creating decentralized applications and smart contracts.

Demeester highlighted that Ethereum is experiencing high gas fees due to the growing number of transactions on the network. Gas fees are the transaction fees that users pay to miners to process their transactions on the Ethereum network. High gas fees make it more expensive to use Ethereum, which could drive users away from the network and towards other alternatives.

Demeester argued that Bitcoin has a stronger network effect than Ethereum. The network effect is a phenomenon where a product or service becomes more valuable as more people use it. Bitcoin has been around longer than Ethereum and has a larger user base, which makes it more valuable and robust than Ethereum.

Demeester noted that the Lightning Network, a second-layer protocol built on top of Bitcoin, is making significant progress in improving Bitcoin's scalability and reducing transaction fees. The Lightning Network allows for faster and cheaper transactions on the Bitcoin network, making it more attractive to users and investors.

Demeester cited the "digital silver" narrative as a weakness for Ethereum. Digital silver is a term used to describe Litecoin, which is often considered the "silver to Bitcoin's gold." Demeester believes that Ethereum is more like digital silver than digital gold, which could limit its growth potential compared to Bitcoin.

In conclusion, Demeester believes that these seven factors make Bitcoin a better investment than Ethereum in the long run. While his views are subjective and debatable, they offer valuable insights into the cryptocurrency market and the competition between Bitcoin and Ethereum.

According to data by Glassnode, a blockchain analytics firm, Bitcoin’s value increased by over 70% in Q1. This remarkable performance has caught the attention of many investors and analysts alike.

To better understand the trend of Bitcoin’s performance, Glassnode analyzed the spot versus derivatives trend over Q1. The analysis showed that the network is much healthier at the end of the quarter than it was at the beginning of the year.

One of the significant indicators of Bitcoin’s health is the exchange balance, which is now flat year-to-date, with roughly 2.28 million Bitcoin on exchanges. This means that more investors are holding onto their Bitcoin instead of selling it. Additionally, demand started to return after the collapse of SVB, which is a positive sign for the cryptocurrency market.

According to Glassnode, the balance of the exchange

Another interesting finding from the Glassnode report is that futures open interest is now at a one-year low, with roughly 300,000 Bitcoin liquidated from the 2022 peak in October. This means that investors are less interested in holding onto Bitcoin futures contracts, which could be attributed to the increased spot demand in recent weeks.

According to Glassnode, the comparison between options and futures.

Finally, options open interest saw a record-breaking amount of $4 billion worth of options expiring on March 31. Roughly 130,000 Bitcoin have been unwound in contracts from the exchange Deribit. This indicates that investors are taking profits from their options positions, which could lead to a decrease in volatility in the Bitcoin market.

Overall, the rally in Bitcoin price has been driven by spot demand in recent weeks. This means that more investors are buying Bitcoin on exchanges, which is driving up the price of the cryptocurrency. It will be interesting to see how Bitcoin performs in the coming months, especially as more institutional investors enter the market.

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This article was republished from azcoinnews.com

Bitcoin investors have been closely monitoring the market sentiment towards the world’s most popular cryptocurrency, and the recent addition of the Fear and Greed Index by Glassnode has added another tool to their arsenal. The Fear and Greed Index is a gauge that evaluates collective market sentiment toward Bitcoin by examining a variety of elements, including fluctuations on the market, trading volume, emotions expressed on social media, and search patterns.

Glassnode, a leading provider of on-chain market intelligence, recently tweeted that the Fear and Greed Index is now firmly within Greed territory. This indicates that market participants are currently feeling bullish about Bitcoin’s prospects and are willing to take on more risk in the hopes of earning a higher return.

However, the question on many investors’ minds is whether this rally will push Bitcoin into Extreme Greed like it did in 2019 and 2021, or whether it will be overwhelmed by resistance like it was in March 2020 or the 2022 deleveraging.

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To understand the implications of these scenarios, it’s important to understand the historical context. In 2019, Bitcoin experienced a massive rally that saw its price increase from around $4,000 to almost $14,000. This rally was driven by a combination of factors, including increased institutional adoption, the announcement of Facebook’s Libra project, and a growing recognition of Bitcoin as a legitimate asset class.

However, this rally was short-lived, and Bitcoin quickly retreated to its previous levels. The Fear and Greed Index showed that investors had become too greedy, and the market was due for a correction.

In 2021, Bitcoin once again experienced a massive rally, this time driven by a combination of factors, including increased institutional adoption, the announcement of Tesla’s decision to accept Bitcoin as payment, and a growing recognition of Bitcoin as a hedge against inflation. The Fear and Greed Index reached Extreme Greed levels, and Bitcoin’s price soared to almost $65,000.

However, this rally was once again short-lived, and Bitcoin quickly retreated to its previous levels. The Fear and Greed Index showed that investors had become too greedy, and the market was due for a correction.

So, what does this mean for the current market? The Fear and Greed Index is currently in Greed territory, but it’s important to remember that this doesn’t necessarily mean that Bitcoin will continue to rally. If investors become too greedy and push Bitcoin into Extreme Greed territory, we could see a repeat of the 2019 and 2021 rallies, where the market quickly corrected itself.

On the other hand, if the market is able to overcome resistance and continue its upward trajectory, we could see Bitcoin reach new heights. It’s impossible to predict the future with certainty, but by keeping an eye on the Fear and Greed Index and other indicators, investors can make informed decisions about their Bitcoin holdings.

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This article was republished from azcoinnews.com

As the world of cryptocurrency continues to gain momentum, the value of Bitcoin has been a topic of discussion for investors and enthusiasts alike. The latest data from CryptoQuant has revealed that there has been a significant decrease in the realized cap of Bitcoin, which is indicative of the spending behavior of Bitcoin holders.

Realized cap is a metric that measures the value of the currency by capturing the value stored as the values of the network and removing the lost unmoved currencies for a long time on a network. It differs from market cap in that it takes into account the spending behavior of Bitcoin holders.

According to the data by CryptoQuant, there is a large difference between the market cap and the realized cap, which suggests that most owners of Bitcoin may make a profit at any possible moment. The decrease in the realized cap is mainly due to short-term currency holders who have held the currency for one week to one month and then from six months to 18 months.

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The total expenditure on Bitcoin amounted to $11 billion, which is a significant amount, and it indicates that the spending behavior of Bitcoin holders is crucial to determining the value of the cryptocurrency.

The decrease in the realized cap of Bitcoin has implications for investors and traders, as it suggests that Bitcoin holders are actively spending their holdings. This behavior may have an impact on the value of the cryptocurrency in the short term, as it may lead to a decrease in demand.

However, in the long term, the spending behavior of Bitcoin holders may be seen as a positive sign for the cryptocurrency. It suggests that Bitcoin is being used as a medium of exchange, which is one of the main functions of any currency.

As the cryptocurrency market continues to evolve, the behavior of Bitcoin holders will be closely watched by investors and traders. The latest data from CryptoQuant provides valuable insights into the spending behavior of Bitcoin holders and may help to inform investment decisions in the future.

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This article was republished from azcoinnews.com

This article was republished from azcoinnews.com

Bitcoin investors are choosing self-custody over bank custody following the Silicon Valley Bank incident, according to data from Glassnode. Around 70,000 bitcoins have been moved into individual wallets for self-custody since the collapse of the bank. Self-custody is considered advantageous for investors as it allows them to manage their assets on their own, without the need for a third-party bank.

CoinMarketCap data shows that Bitcoin recorded a value of $24,800, up 0.6% from 1 hours ago, before the departure of the New York market. However, data tracked by ByteTree Asset Management shows that the number of coins held by close-ended funds, spot and futures-focused exchange-traded funds (ETFs) in Europe, the U.S. and Canada has declined by 16,560 BTC ($409 million) this month, reaching a 17-month low of 826,113 BTC.

ETFs and other investment vehicles that allow exposure to bitcoin without owning the cryptocurrency are considered a proxy for institutional activity. The decline in fund balance suggests a lack of institutional participation in bitcoin’s recent rally, reportedly fueled by safe-haven demand and renewed hopes for Fed rate cuts in the second half of the year. Despite this, some observers suggest that bitcoin’s recent gains are evidence of its strengthening appeal as a hedge against the banking system.

The recent spike in self-custody follows the collapse of Silicon Valley Bank, which was formerly one of the top 20 lenders in the U.S. Bitcoin picked up a strong bid near $19,600 late on Friday and has risen over 25% since then, reaching a nine-month high of $26,500 on Tuesday. The rise in self-custody may reflect a lack of trust in banks and traditional financial institutions, and a growing desire for individuals to take control of their own assets.

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Bitcoin has once again taken the investment world by storm, as it recorded a remarkable performance in the first quarter of 2023. According to Bloomberg, Bitcoin was one of the best-performing assets, outpacing major investment products in the same period.

Bitcoin’s Q1 performance is quite impressive, given that it rose by about 70%, marking its best quarterly performance in two years. This is a significant improvement from its 103% return at the end of the Q1 2021 bull market. On the other hand, major investment products such as NASDAQ 100, gold, S&P 500, and STOXX Europe 600 failed to match Bitcoin’s performance, as they all recorded a lower increase in value.

Bitcoin performance against other asset classes. Source: Bloomberg

Market analyst Noel Acheson attributed Bitcoin’s success to the foundation it has been building for a rally since the end of 2022. According to Acheson, Bitcoin’s performance is not surprising, given the recent developments in the cryptocurrency market. In addition, the possibility of additional interest rate hikes by the US Federal Reserve System being raised again as a response to inflation could have contributed to Bitcoin’s rise.

It is also worth noting that Bitcoin’s performance was further boosted by the increased interest in cryptocurrency as an alternative to the centralized currency system. This is particularly true following the bankruptcy of Silvergate Capital, Signature Bank, and Silicon Valley Bank, which affected the confidence of investors in traditional banks.

In summary, Bitcoin has regained momentum in 2023, and its remarkable performance has surpassed major investment products. With the increasing interest in cryptocurrency, it is expected that Bitcoin’s performance will continue to attract investors’ attention in the coming months.

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This article was republished from azcoinnews.com