Craig Wright, well known as Faketoshi for trying to claim that he was the creator of Bitcoin [BTC], recently spoke about the market dump of the #1 cryptocurrency. This is widely considered to be because Bitmain, one of the biggest mining networks on the Bitcoin network, has deployed a lot of hashpower to its Bitcoin ABC implementation, which is now considered as the continuation of the BCH ticker.
Wright claimed responsibility for the crash, stating that it was a selloff as they needed to pay for more electricity in order to fund the inordinate amount of hashpower that they are deploying to the Bitcoin SV chain. He also blamed the market’s lack of value on BTC, stating that the market was very thin. He elaborated:
“We aren’t aiming to make the prices go down but that’s never going to be out because. If we get more money, if we were to get three times as much in BTC for exchange we would actually be able to throw more hash at them. The reality is we’re not seeking to push down to BTC price. That’s not the goal. It’s just a consequence.”
Offering his thoughts on the CEO of Bitmain, Jihan Wu, who he has long considered his rival, Wright stated that he wanted to change the Bitcoin Cash protocol to add more coins. He said that Wu wished to do the whole “ICO thing”, wherein multiple coins can be launched on the BCH protocol. However, this is already being shut down by the SEC, stated Wright, going on to say that he predicted it occurring two years ago. He stated:
“One of the things [he] wants to build with Wormhole is a method to have enabled capital flight out of China. I don’t know about you but the creation of a system that becomes more and more illegal is the last thing I want to do to get sort of global adoption of Bitcoin.”
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Bitcoin’s on-chain/off-chain valuation indicators the key point of focus as coin heads to $13,000
With the rise in Bitcoin’s price, the rest of the cryptocurrency market has followed suit by displaying a green trend across the board. In a recent series of tweets by popular cryptocurrency analyst Adam Tache, users were informed about the top Bitcoin on-chain and off-chain valuation indicators, derived from on-chain valuation models.
The analysis touched on the Mayer Multiple created by dividing the price by the all-important – 200 day moving average. The current average Mayer Multiple stands at a figure of 1.39, which may climb higher. Looking at previous figures, the normal Mayer Multiple figures stated that if the value shoots up to 2.4, then Bitcoin eventually retraces back to a comfortable 1.5. The Mayer Multiple is usually considered as the original indicator used to clock the valuation of Bitcoin.
Another major indicator discussed in the thread was the NVT Ratio invented by Willy Woo, Partner at Adaptive Fund. The indicator is used to calculate Bitcoin’s prominence or value in the cryptocurrency space by evaluating the amount transacted on the blockchain as a “proxy for investment flow and bear and bull market cycles.”
At the moment, the NVT ratio for Bitcoin is in an abnormal region compared to the start of previous bullish patterns. The NVT ratio was above the “bear market” separator, which meant that the cryptocurrency was overbought. When Bitcoin is overbought, it usually means that the buying pressure is much higher than the selling pressure. Adam Tache opined,
“NVT signaling overbought is likely due to a number of factors — namely the proliferation of exchange-based, purely off-chain txs driving short-term price action.”
The analysis also pointed out the liveliness of the Bitcoin indicator created by Tamas Blummer. The indicator showed the inverse count of lost or ‘HODLed’ Bitcoin, while stating that when the ratio increases, long-terms holders of the cryptocurrency decrease their positions. The indicator conveyed accumulation of Bitcoin when the ratio decreased.
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