Author: BTCLFGTEAM
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Bitcoin and AI: Artificial Intelligence in Crypto
- The global AI market is forecast to grow $1394.30 billion in 2023.
- Investors and traders can tap into AI to benefit from features such as automation and accuracy.
- Bitcoin and AI also have the capacity to combat frauds in transactions across global markets.
Have you ever thought that where technology will extend us, either intelligent machines will replace us together or they will combine with humans to develop a third merger that will be four times more explosive than intelligent machines and humans? This is a long debate, but one thing is sure: artificial intelligence has plotted a strong position in this landscape, and almost every aspect is making full use of this.
This article is a mixture of Bitcoin with AI. Artificial Intelligence will be a role model for crypto enthusiasts to understand the crypto league and their sit in this landscape.
Salient stories
A well-known market research firm Fortune Business Insight has predicted that the global AI market will extend to $1394.30 billion in the year 2023. Furthermore, Ai will drive better outcomes for crypto investors as it will predict the market value of coins perfectly. The pattern detection ability of AI will greatly influence the functionality of crypto.
Bitcoin and AI will combat many frauds that occur in transactions, and these transactions will be provided lethal speed.
In the crypto field, fraudulent activities have been the greatest threat, and if someone becomes a victim of these fraudulent activities, that will be a disaster. AI power will ensure a greater monitoring system around the digital currencies landscape, further fuming these currencies’ personalities.
AI provides better products that give the crypto the upper hand, and one such product is Trading Bots uses a range of AI tools like Machine Learning, Deep Learning, and others to enhance the crypto trading experience. Furthermore, these tools do not only work best for predicting the prices of crypto but for many other things like providing information about the crypto landscape, what’s new inside the crypto world, and many others.
Apart from these stories, there is a lot to debate. First among them is what people say about these coins. Different perceptions fall into the debate. First, a suitable amount of the population believes that these currencies can replace traditional paper currency in what sense, and secondly, many countries do not have to provide legal status, these countries and why major Tech companies of the world have yet to recognize the use of these coins.
The nature of these coins suggests that these coins are highly volatile, and predicting the exact future position of these coins is impossible. Even powerful AI tools cannot predict the real scenario. AI will just put efficiency but not to 100%.
When technology emerges, it also gives new opportunities for attackers to invade the system. Crypto trading is honey for the attackers, where they can exploit sweet. AI plays a beautiful role in this regard, but these attackers will adopt new ways to invade the system.
Positive signs
AI is a new and innovative thing for finance, especially crypto trading, and can lead to many amazes for crypto. And will help traders to extract the goods. But the story has not one hero but many others too.
The technological Landscape will grow in the coming time, which will help digital currencies to gather what they have lost. The year 2022 was a disaster for these coins, but technology will lead them to a stronger position in the coming time.
Despite poor performance in the year 2022, the demand for crypto is enhancing, which will further add to the significance of crypto.
When major companies recognize these currencies, the real game will start, and many companies have shown greater interest in this regard.
Final Thoughts
There is a lot of heat going on regarding Bitcoin and AI, and the reason for such heat is simply the innovation they bring into this landscape. The digital landscape is all about techno products and their services, and both these dilemmas are best in the business.
On the one hand, Artificial Intelligence has been placing its theme in every aspect of the business. On the other hand, crypto, like Bitcoin, leads to innovative ways of investing.
And when both these things have merged, results are not hidden from anyone. One can use the internet to know better, and if not, then simply adopt both things, and then you will get to know about the difference.
Bitcoin and AI are providing many facilities to crypto companies and investors. The fascinating thing about AI is to predict the outcomes, which readily helps investors and companies to plot the future position of these digital coins.
Furthermore, this AI will lead to more secure transactions for investors and add greater measures for monitoring illegal activities within the crypto landscape.
There are AI bots for efficient trading that work as great news providers to traders, and together they perform the function of alerting the traders.
Last but not least, people’s perspective heavily influences the growth of these coins; when major companies or financial experts declare anything negative about them, then they will not merge in such a form to replace the traditional paper currencies. Still, if they feel positivity while using these coins, it will be easier for crypto like Bitcoin to make things happen.
If you are looking for the best crypto trading platform, then there is no need to search further. Just click on Immediate Connect, and this will lead you to a well-reputed trading platform that offers a range of solutions to find a better roadmap to make dollars from crypto.
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Solana price has spiked 137% YTD as cryptocurrencies soar
- Solana is currently changing hands at $23.26, about 137% up year-to-date.
- The coin’s price plummeted after FTX fell in November, ending the year below $10.
- SOL price has soared amid positive sentiment, broader market rally and meme coin-driven interest.
Solana traded below $10.00 on the first day of 2023, having plummeted more than 73% in a massive dump following the collapse of the FTX cryptocurrency exchange.
As was the case, Solana is a blockchain project with ties to disgraced crypto figure Sam Bankman-Fried – the founder of FTX and Alameda Research. After both companies filed for bankruptcy and Bankman-Fried found himself in custody, the native Solana token SOL took a nosedive.
Solana’s SOL soars 137% year-to-date
Having ended 2022 at around $9.66, SOL price has seen impressive bullish action over the past two weeks. The token’s price has rebounded strongly to currently trade more than 62% in the past week, according to crypto market data aggregator CoinGecko.
For its YTD price, SOL is up more than 137%, trading at $23.26 across major exchanges on Monday, 16 January, 2023.
A turnaround for SOL comes on the back of positive sentiment from across the crypto, including last month’s optimistic outlook for the Solana ecosystem from Ethereum founder Vitalik Buterin.
A rebound in decentralised finance (DeFi) and meme coin craze-related activity is also leading to more buy Solana market action. Another factor driving SOL price in recent days has been the broader enthusiasm in the market after what was typically a suffocating run at the backend of last year.
On 12 January, crypto markets platform Messari highlighted that Solana was far from “dead.” According to the firm, on-chain data showed both transaction volumes and active accounts on the Solana blockchain had surged to levels last seen before the FTX collapse.
Is @solana dead? Its fundamentals might say otherwise.
Transaction volumes and active accounts both spiked back to pre-FTX levels.
While tweets and meme coins may have been the cause for recent activity, it is difficult to pinpoint the FTX collapse by looking at these metrics. pic.twitter.com/hL05ixfLVw
— Messari (@MessariCrypto) January 12, 2023
As CoinJournal previously covered, some of the uptick in activity followed the launch of meme coin Bonk (BONK), with significant spike in interest in Solana after the cryptocurrency’s airdrop to the community.
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Analyst charts Bitcoin’s potential rally to $25K by March
- Bitcoin price broke above $21,440 on major cryptocurrency exchanges for the first time since the FTX implosion.
- Much of the buying pressure was retail driven as crypto mirrored stock markets’ Friday surge.
- Veteran trader and markets analyst Peter Brandt has shared his prediction for Bitcoin price in 2023.
Cryptocurrencies roared into the weekend as Bitcoin price spiked to highs above $21,000 for the first time since FTX’s debacle began to unfold in November.
Data from CoinGecko shows that the benchmark crypto hit prices near $21,450 on major crypto exchanges on Sunday, with major altcoins tracking the leading digital asset. Ethereum broke above $1,500, Solana jumped to trade at highs of $24 and Dogecoin rose as high as $0.088.
It’s notable that the rise in crypto prices followed a tick up for growth stocks and risk assets as the US inflation slowed further in December to suggest a potential pivot from the Federal Reserve.
Bitcoin price rally- analyst points to $25K by March
Bitcoin is up more than 22% in the past seven days, with BTC currently showing resilience above the $20,000 support level.
While on-chain data indicates the weekend buying pressure wasn’t so much as institutional investor-driven, the potential for bitcoin going higher remains if prices consolidate above the psychological level.
According to veteran trader and markets analyst Peter Brandt, BTC’s bullish trend will benefit from a weekly close above $20,800. He shared the prediction in a tweet.
Any idiot can make wild guesses about markets, so here is my dunce-hat prediction. In reality, nobody has a clue what any given market will do. $BTC pic.twitter.com/bpP2ThjnZK
— Peter Brandt (@PeterLBrandt) January 15, 2023
The seasoned trader predicts a run to major resistance at $25,000 by March, with rejection seeing BTC retest the $18,000 level. If bulls hold this level, the analyst forecasts another sharp rally that could end up with Bitcoin price testing resistance levels around the $35,000 mark by July 2023.
Although he warns that no one can predict the markets with certainty, his long term outlook for Bitcoin has the cryptocurrency’s price above $100,000 by 2025.
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Binance and Huobi recover 121 BTC from Harmony bridge hackers
- The Harmony bridge hack took place in June last year and over $100 million was lost
- 121 bitcoins have been recovered by Huobi and Binance security teams.
- The hackers were also moving ETH worth about $64 million over the weekend.
Seven months after one of the largest cryptocurrency exploits of 2022 took place, industry players are still optimistic about recovering the stolen funds. Over the weekend, Binance and Huobi teams teamed up to freeze and recover 121 bitcoins that the Harmony bridge hackers were trying to launder.
According to a tweet by Binance CEO, Changpeng Zhao, the hackers tried to launder 121 bitcoins worth about $2.5 million on the Huobi exchange and Binance detected the move and alerted Huobi. Binance then went ahead to assist Huobi in freezing and recovering the crypto assets which had already been deposited by the hackers.
Prior to Huobi and Binance recovering the bitcoins, on-chain crypto detective ZachXBT had tweeted saying that the hackers were moving 41,000 ETH worth about $64 million over the weekend.
1/2 North Korea’s Lazarus Group had a very busy weekend moving $63.5m (~41000 ETH) from the Harmony bridge hack through Railgun before consolidating funds and depositing on three different exchanges. pic.twitter.com/huDumaJeSh
— ZachXBT (@zachxbt) January 15, 2023
Laundering seven months after the hack
The Harmony One team detected the hack on June 24, 2022, and reported that crypto assets worth about $100 million had been lost in the hack. The hackers, who were identified on June 30 to be the notorious North Korean Lazarus Group had exploited mutisigs securing the Horizon bridge.
After the hack, the attackers deployed laundering programs to move the stolen assets.
According to ZachXBT, the hackers deposited the stolen crypto assets in three crypto exchanges although he did not specify these exchanges.
However, going by the recent developments, it is most likely that Huobi is one of the exchanges that the attackers have been trying to use.
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Crypto prices surge via strongest rally in 9 months, but why?
Key Takeaways
- Bitcoin is back in the 20s, Ethereum has crossed $1,500 and altcoins are powering north in what is the biggest crypto rally in 9 month
- Optimism that Federal Reserve will pivot off high interest policy sooner than expected, following cooler inflation data
- Next big day for crypto markets is February 1st, when the Fed will decide on the latest interest rate policy
- Solana is up 130% since the start of the year, leading the altcoins
- Even memes are rising, with Dogecoin and Shiba Inu again making moves
- Some analysts fear the market is premature in pricing in an earlier-than-expected Fed pivot
Crypto markets are dishing out a heavy dose of nostalgia to start the year, off to their strongest rally in 9 months.
Bitcoin is trading close to $21,000, Ethereum is at $1,500 and altcoins are powering aggressively upward, too.
I took a snapshot of the market on this day last week, when markets had bounced to start the new year. One week later, the direction is the same – but the rally has been taken up a notch. The below chart presents crypto price returns to start the year, a sea of upward moves:
What is causing prices to rise?
Over the past year, inflation has perhaps replaced pandemic as the dirtiest word in our vocabularies. But it is for good reason, with the globe gripped by an inflation crisis the likes of which we haven’t seen since the 1970s.
But in the last few weeks, just a little bit of optimism that inflation has peaked has seeped into the market. This has led to investors betting that the Federal Reserve will peel away from interest rate rises sooner than previously expected. And the markets are doing something that most people forgot they could – they’ve gone up.
The market in general has risen. The S&P 500 is up close to 5%. Crypto prices can throw up a 5% candle in a matter of minutes, but the stock market is obviously less volatile, and 5% amounts to a strong move – there were only four occasions throughout what was a very volatile 2022 when the market rose by this much in a week.
Interest rates hold the key for the crypto markets. Altcoins trade like levered bets on Bitcoin, and Bitcoin has been trading like a levered bet on the S&P 500 over the last year or so. Ever since interest rates began to be hiked in April 2022, the Bitcoin price has been freefalling.
While there have been wobbles drawn from the crypto market itself (the LUNA death spiral, Celsius crash and staggering FTX debacle spring to mind), the key variable is undoubtedly tight monetary policy suppressing the value of all risk assets. Bitcoin will not be allowed to rise until the Fed pivots, and this past week has seen investors move towards a stance that expects that pivot earlier than previously.
Will it continue?
The next key date is February 1st, when the Federal Reserve will meet to decide the latest interest rate policy. These FOMC meetings, alongside the monthly CPI report, have been the key drivers in markets over the last year.
I wrote five days ago about how we would get volatility to end the week as we ran into the CPI report. That report came in as anticipated, but reflected another month of falling inflation, which as described earlier propelled markets upward.
Nonetheless, the surge in prices is somewhat surprising when considering the words that have thus far come out of Fed chairman Jerome Powell’s mouth. He has been adamant that a pivot is not coming and has even taken swipes at the market’s perceived premature assumption that monetary policy will be loosened again.
Indeed, there had been plenty of false starts in the market over the last year, with investors repeatedly betting that the Fed was bluffing over the extent and speed that interest rate hikes would be implemented. This is part of the reason that the subsequent move downward has been so fierce.
In truth, the below chart paints the picture better than a thousand words:
Altcoins making greater moves
As we have seen repeatedly throughout crypto history, the higher-beta altcoins are printing gains significantly higher than Bitcoin. Of course, this comes from a lower base – the downside of higher beta is that when times are tough, the pain is that much more severe, and altcoins have certainly experienced that throughout this crypto winter.
The gains have been led by Solana, the Layer 1 that has had a tumultuous year even by crypto standards. I wrote a deep dive on it two weeks ago, but the coin had plummeted from at one point holding the third spot behind Ethereum and Bitcoin to barely hanging on inside the top 20.
A combination of repeated outages, top projects leaving for rival blockchains and a close connection with the disgraced Sam Bankman-Fried all contributed to Solana shaving 97% from its all-time high of $260, trading towards the end of 2022 at $7.70.
But in typical crypto standards, a flip of sentiment led by the outright inexplicable meme coin BONK has helped to boost the coin, which is now trading at $23.40, having more than doubled in the last two weeks.
Meme coins have been enjoying the gains across the board. This would normally be the part where I’d try input some analysis about why, but we know by now that there is no real pattern to the meme coin madness, so instead I will simply list the returns. Shiba Inu is up 29%, while the Daddy of them all, Dogecoin, has added 20% and is now trading at a market cap of $11.2 billion.
What happens next?
For now, investors are enjoying the gains, having simply tried to survive throughout 2022. But in looking at the market, while prices have soared, volatility remains low and volumes are still way off what they were during the pandemic.
The market has been uncharacteristically serene since the FTX implosion, and this is the first real move of any significance. While optimism is obvious, investors remain somewhat cautious and prices are still extremely suppressed from this time last year.
A 75% fall followed by a 20% rally still amounts to a 70% fall. So while the green candles are pretty this morning for traders – and long overdue – the scale of the damage to crypto here is still severe. Institutional adoption has likely been dented harshly by the myriad scandals, there is still the potential for more dominoes to fall in the FTX web of contagion, and macro/inflation remains highly uncertain.
The last two weeks amount to some much-needed positive news not only for crypto, but for the economy as a whole. Investors are celebrating that with surging charts, but these are still uncertain times with many twists and turns ahead.
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Bitcoin hits $18,200 as 13% more of of BTC supply in profit
- Bitcoin price jumped more than 5% on Thursday to hit levels above $18,400.
- According to on-chain data from Glassnode, the price rally has helped return 13% more BTC into profit; now 60.5% of circulating supply is in profit.
- Only 47%-48% of BTC had been in profit between November 2022 and the start of January, 2023.
Bitcoin’s breakout to prices above $18,200 has seen 13% more of circulating supply return into profit, on-chain data from Glassnode says.
Per the platform, the sharp surge in percentage of supply in profit amid the latest crypto rally confirms a buy the dip scenario as prices fell in late 2022. Indeed, the metric suggests a large volume of the benchmark cryptocurrency was acquired at prices between $16,500 and $18,200.
As #Bitcoin rallies to $18.2k, over 13% of the Circulating Supply has returned to profit.
The observed sharp move upwards in this metric helps to confirm that a large volume of $BTC was acquired between $16.5k and $18.2k.https://t.co/yflZloDbSP pic.twitter.com/J8egLvYt3w
— glassnode (@glassnode) January 12, 2023
Bitcoin supply in profit jumps amid BTC rally
Bitcoin price hit lows of $15,600 in November 2022 after a violent market reaction to the collapse of cryptocurrency exchange FTX. The price bounced to above $18,000 in mid-December before bulls hit resistance and BTC tumbled to below $17,000.
The supply in profit or supply in loss metric considers the on-chain history of a coin, determining the price at which it last moved. Coins are in profit if the price at which they last moved is lower than the current price of BTC, while the percent in loss is when the current price of BTC is higher than the value of the coins when they last moved on-chain.
According to Glassnode, more than half of Bitcoin circulating supply fell into loss between November and January this year. Approximately 47%-48% of BTC supply was in profit during the period.
However, with 2023 starting positively for cryptocurrencies and BTC’s push to highs of $18,420 on 12 January, the percentage of circulating supply on profit has increased to 60.5%.
As of writing, Bitcoin price is 5.2% up in the past 24 hours and data from CoinGecko shows the flagship cryptocurrency has rallied nearly 9% in the past week.
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What to expect in crypto ahead of inflation report, as Bitcoin banks eight straight days of gains
Key Takeaways
- Bitcoin has increased for eight straight days, now up 9.2% on the year
- Period of low volatility in the crypto markets paired with softer inflation data has sent prices upward
- Latest CPI report is out Thursday which will trigger volatility and is vitally important for the market following increased optimism over last month or so
- Altcoins could move violently on the report, while Bitcoin will likely shake off its $18,000 mark if data comes in below or above expectation
Bitcoin has banked eight straight days of price rises, as the new year has kicked off assiduously for cryptocurrency investors.
Whereas 2022 brought nothing but pain and freefalling prices, 2023 has thus far been the exact opposite. Bitcoin is up above $18,000 and Ethereum close to $1,400, good for rises of 9.2% and 16.4% respectively year-to-date. Many altcoins are up even more.
Volatility has reduced in the crypto markets
The macro climate is pushing prices upward. I wrote a piece analysing the softer climate last week, but optimism has crept into the market that inflation may have peaked and that the possibility of a pivot from the Federal Reserve off its policy of heightened interest rates may be coming soon than previously anticipated.
It should be noted that while this is a nice rally, it is hardly a violent breakout. Cryptocurrencies are notoriously volatile and there has actually been an unusual serenity that has washed over markets over the past couple of weeks.
A quick glance at the chart for the daily returns of Ethereum illustrates that there has been a perceptible fall in volatility.
Inflation data to be released Thursday
I write this on Thursday morning, with the all-important US inflation data to be released this afternoon. If we know anything by now, it is that inflation numbers rule the world. If there is anything in the current climate that will produce volatility, it is the CPI report.
As mentioned above, this relief rally has largely been predicated on softer inflation leading to the hope that the Federal Reserve will pivot off its high-interest-rate policy sooner than anticipated. Another positive inflation number would give further impetus to crypto prices. It is not hard to imagine Bitcoin pushing up towards $20,000 and Ethereum to $1,500 if the number comes in cooler than anticipated.
On the flip side, of course, is the potential for the number to disappoint investors. Following two straight months of positive inflation, a step back this afternoon would be a body blow for crypto, and it would not be a surprise to see it drop sharply as all the optimism of the last month gets released in an instant.
The inflation number is expected at 6.5%. This would be a decline from the prior month of 7.1%. Should the number come in at 6.7% or higher, this would represent a major disappointment and crypto will likely freefall. Do not be surprised to see Bitcoin down at $16,500 in this scenario.
The data will be released at 1:30 PM GMT (8:30 AM ET), and it is the last CPI report before the Federal Reserve’s February 1st interest rate decision.
Altcoins showing signs of life
However bad things have been for Bitcoin and Ethereum, the landscape has been a hell of a lot worse for altcoins. Below are the percentage returns in 2022 from the top 10 coins as of 1st January 2022.
As is standard, these coins are significantly more volatile, and trade like leveraged bets on Bitcoin. It follows that this year, the jumps have also been stronger than the number 1 crypto.
Looking at the top 10 coins from Jan 1st this year, some of the returns have been seismic, albeit from a significantly lower base. Remember, a 90% drop followed by a 50% rise is still the same as an 85% drop from the original starting point. A simple math problem that many investors do not understand. Hence, the past couple of weeks have been positive, but this is still a space that has been absolutely ravaged by the bloodbath that was 2022, and it will take a very long time to recover from.
Final thoughts
This is a pivotal week for the markets and it will be a true gauge of how far the battle against inflation has come. Central banks have been adamant that inflation is the number one priority, and the consequent interest rate policy has crushed risk assets over the last year.
Things are tough in the markets, but with a third straight month of OK inflation data, it could point toward a light at the end of the tunnel. Then again, the world is teetering on the edge of a recession as it is, and if inflation takes a step back, it will be a double whammy of high rates and still-persistent inflation. As always, risk assets will feel the pain.
Crypto investors will just have to hope that the pivotal CPI number doesn’t dare tick up beyond 6.5%.
