BitcoinBites: 5 BTC stories you should know – March 9th, 2022
Bitcoin dominance spikes to 44% as price climbs back above $42,000
Today, Bitcoin climbs to $42,300 following positive sentiment over the Biden Administration’s executive order on digital assets.
While this is a far cry from November’s $69,000 all-time high, it still brings welcome relief to investors who have faced huge uncertainties over the last five months.
The executive order will bring about a cryptocurrency framework, which is said to balance responsible innovation with addressing risks. But what this means in practice is up for debate at this point.
Nonetheless, markets consider the executive order an optimistic development. At the same time, Bitcoin dominance spikes higher, to 44% off the back of this event.
Bitcoin rallies above $42K after info on Biden’s crypto executive order leaks
Bitcoin rallied early Wednesday to hit highs above $42,000 to precipitate short liquidations worth millions. All these happened amid a broader crypto market uptick, with altcoins led by privacy coins taking cue from the flagship crypto to make impressive gains.
BTC’s rally above $42k followed news of a reportedly leaked press release that shared details of the much anticipated US President Joe Biden’s executive order on cryptocurrencies.
A Fact Sheet on the order, contained in a leaked release indicates “the first ever, whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets and their underlying technology."
As well as looking into consumer protection and curbing illicit finance, the order seeks to promote the US as a technology leader and lays out plans for a central bank digital currency (CBDC).
Why 'money will never be the same' after Russia-Ukraine, and Bitcoin may benefit
As commodities prices spike and stocks swoon as a result of Russia waging war against Ukraine, the monetary system could be changed in profound ways, some analysts say.
At some point in the future, digital tokens may revert to the inflation hedge and safe-haven from fiat turmoil, as envisioned when they were first created. Traditional safe havens like gold, U.S. Treasuries and the U.S. dollar have surged in the current environment of risk-aversion.
In a recent analysis, Zoltan Pozsar, global head of short-term interest strategy with Credit Suisse, said the crisis-level crunch could eventually benefit Bitcoin after the current market bedlam passes.
"We are witnessing the birth of Bretton Woods III – a new world (monetary) order centered around commodity-based currencies in the East that will likely weaken the Eurodollar system and also contribute to inflationary forces in the West," Pozsar wrote in a research note.
Bitcoin transaction fees briefly doubled yet remain exceptionally low
The cost of sending Bitcoin from one address to another has stayed exceptionally low since July 2021 despite spiking in price last week.
Got some Satoshi to send or Bitcoin (BTC) wallets to reorganize? It’s increasingly cheap to do so. According to an Arcane Research report, Bitcoin “transaction fees have stayed low since July 2021, showing no signs of rising.”
There was, however, a small bump in transaction fees last week. Shown as a small jump at the tail end of the graph, clustering of the mempool pushed “up the average transaction fees per day over the past seven days to $691,000, a doubling since last Tuesday.”
Nonetheless, the doubling in transaction fees is insignificant: Transaction fees remained in a low range. Miners churned through the mempool transactions over a two-day period, securing the network while keeping transacting affordable.
HODL Hard! Formerly dormant Bitcoin address gains 4,254% after 8 years
According to data revealed by blockchain tracking tool Whale Alert, a dormant Bitcoin wallet with a balance of 407 bitcoins (approx. $15.5 million at current prices) just made its first transaction in a long while. The wallet which has not seen any activity for 8.3 years was worth only $355,254 back in 2013. This means the balance has witnessed a staggering 4,254% surge.
The wallet address, which is not linked to any individual or firm, sparked many reactions from the crypto community. Some say the wallet could belong to someone that just came out of jail while others connected it to the Bitcoin pseudonymous creator Satoshi Nakamoto who disappeared 11 years ago.
In recent times, wallets containing large amounts of BTC have come out of dormancy. These wallets are being reactivated by their owners who haven’t performed any transaction on them for many years.
For the latest Bitcoin prices, check out NDAX's BTC Price page