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Bitcoin [BTC] chiding crypto-winter; on-chain transactions at 15-month high




Bitcoin [BTC] chiding crypto-winter; on-chain transactions at 15-month high
Source: Pixabay

Bitcoin [BTC] has seen a massive spike in its network capacity despite the ongoing crypto-winter, leading to a decline in the coin’s price over the past few months. The latest research from indicates that on-chain confirmed transactions have shot up to 400,000 in the past day.

The data further revealed that the last time the transactions per day saw a high of this nature was back in January 2018, when the coin’s price was hovering close to $15,000, following its $19,500 apex in December 2017.

Following the crypto-boom leading into 2018, the transactions per day dropped to a yearly low in the second quarter of the year, falling below 150,000. The transactions only began growing in July, despite the price of the coin falling consistently.

The transactions per day rose even in December 2018, when the coin dropped to its lowest price of the year. March saw significant volatility as the transactions almost dropped below 200,000 before shooting up to the recent high.

As Bitcoin off-shoots Bitcoin Cash [BCH] and Bitcoin SV [BSV], being the most notable, continually lambasting the top coin for its block size, the former’s block size has been fairly consistent as well. The BTC network’s block size has been ranging over the 1MB limit that was placed prior to Segregated Witness [SegWit] activation allowing larger blocks.

Currently, the blocksize has been within the range of 0.8MB to 1.2MB. Occasionally, there are blocks produced that are greater than 2MB.

Segregated Witness, the protocol upgrade to the Bitcoin network has added to the increase in Bitcoin transaction rate. Since January 2019, the percentage of SegWit spending payments has shot up from 40 percent to nearly half of the on-chain Bitcoin transactions.

Recently, the Veriblock blockchain went live on the BTC mainnet. This addition will allow several exchanges, merchants, wallet providers, and other crypto-centric companies to use the features of the Bitcoin blockchain to enhance security. Additionally, this integration will allow blockchains to link to the Bitcoin blockchain, thereby increasing security.

According to, the cryptocurrencies that can be mined account for close to 70 percent of the entire coin market’s valuation. The top cryptocurrencies that can be mined are Bitcoin [BTC], Bitcoin Cash [BCH], Ethereum [ETH], Litecoin [LTC], Bitcoin SV [BSV], Monero [XMR], Dash [DASH], and Ethereum Classic [ETC].

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JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise




JP Morgan: Big bank stands corrected at Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise
Source: Pixabay

Big banks are riding a FOMO wave as the Bitcoin bull-run is just beginning. Spearheaded by the changing colors of JP Morgan, which recently forayed into the digital assets world, the banking elite is now suggesting that their initial stance on Bitcoin and the larger cryptocurrency world might have been off.

A recent chart by JP Morgan shows the current BTC price veer upwards chiding the “intrinsic value” the big bank placed on the virtual currency.

Based on the article by Bloomberg, the price of the coin would reverse towards the end of December 2018 and then make marginal gains until May 2019, all under the $5,000 mark. In reality, the BTC price, after dropping to “rock bottom” at just above $3,100 in early December 2018, edged upwards.

Several spurts of growth were seen in early January and February, prior to a massive April ascendance. On April 2, Bitcoin did away with the bank’s value mode and amassed a daily gain of over 15 percent, fuelling its current rise. Breaking the $5,000 ceiling in the process, which was pegged to remain intact well into May 2019, the king coin is now almost $3,000 ahead of the mark and is not looking to stop.

Source: Bloomberg

It should be noted that JP Morgan’s “intrinsic value” is calculated on the basis of the marginal cost of production, electricity prices, and hash rates. This model does not take into account, at least on absolute terms, the anticipatory effect of the 2020 halving, which, according to a slew of analysts is the behind the price rise.

Nikolaos Panigirtzoglou, the MD in the Global Market Strategy team at JP Morgan stated that Bitcoin breaking through its “intrinsic value” showed signs of mirroring its 2017 bull run. He evidenced this move by comparing the pre-December 2017 slump to the one seen prior to the current bullish swing.

The analyst added:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

With the analyst admitting that the imparting of an “intrinsic or fair value” to a cryptocurrency, much less a volatile one like Bitcoin, is a “challenging” ordeal, a mere JP Morgan acknowledgement of a Bitcoin bull-run is a remarkable sign for the digital assets industry, especially given the bank’s and its CEO Jamie Dimon’s Bitcoin-bashing in the past.

Mati Greenspan, senior market analyst at eToro attested to the same, adding a key point that JP Morgan failed to take into account in their calculation. He stated:

“Great to see JPM finally admitting that Bitcoin has intrinsic value.
Now wait till they understand that miners who run a surplus tend to begin hording.”

Despite Bitcoin slumping at press time, recording a 1.23 percent decline against the dollar, the prospects look positive. After recording a massive gain on 19 May, briefly surging past $8,000 for the second time in a week, Bitcoin created a High-Low [HL] at $7,100, which many analysts look at with glee.

This HL immediately following last week’s pull-back caused due to post-Consensus bears, a Bitstamp sell-order and market correction showed the king coin’s bullish persistence and can even be a foundation for a $9,000 ascendance, defying any “intrinsic value” expectations.

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