BNB experienced a notable 3% price surge following Binance’s recent announcement, which has generated significant excitement and speculation among traders. This update, aimed at increasing market liquidity and enhancing the trading experience, involves adjustments to the tick size, or the minimum price movement of a trading pair. Such changes are expected to lead to more The post BNB Price Soars 3% Amid Binance’s Latest Spot Trading Update appeared first on CoinGape .
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Ethereum’s Dominance Grows as NFT Market Faces Significant Decline
The cryptocurrency market has been abuzz with the recent price hikes of Bitcoin (BTC) and Ethereum (ETH). Despite this bullish momentum, the non-fungible token (NFT) market has seen a decline in enthusiasm. Google search trends indicate a significant drop in public interest in NFTs, reaching levels not seen since 2021. Discover why the NFT market
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Bitcoin Price Struggles to Recover After Falling Below Key Support Levels
With Bitcoin struggling to maintain its recent support levels, the cryptocurrency market is seeing significant volatility. Experts are debating the potential impacts of these fluctuations on broader market stability. “Bitcoin’s recent price movement is a critical test for its support structures,” noted a well-known market analyst. Bitcoin fights to maintain stability amidst turbulent market conditions.
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DePIN – Overcoming the Challenges for a Decentralized Future
The recent emergence of DePIN (decentralized physical infrastructure networks) offered a unique solution to the various limitations of centralization by presenting a distributed, incentivized system that integrates community-driven blockchain technology. This decentralized route ensured individuals could participate in owning and managing physical infrastructure without having to rely on centralized providers. In itself, DePIN’s potential applications The post DePIN – Overcoming the Challenges for a Decentralized Future appeared first on The Daily Hodl .
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Ethereum Price Slips: Slow Descent as Market Pressure Mounts
Ethereum price failed to recover above the $3,650 resistance. ETH declined again below the $3,550 level and now shows bearish signs below $3,600. Ethereum started a fresh decline below the $3,550 support zone. The price is trading below $3,550 and the 100-hourly Simple Moving Average. There is a key bearish trend line forming with resistance near $3,650 on the hourly chart of ETH/USD (data feed via Kraken). The pair could extend losses if it stays below the $3,650 resistance zone. Ethereum Price Takes Hit Ethereum price attempted a recovery wave but there was no bullish momentum. ETH failed to settle above the $3,650 level and started another decline. There was a steady decline below the $3,600 level. The price declined below the $3,550 support level. A low was formed near $3,430 and the price is now consolidating losses, like Bitcoin. Ethereum is now trading below $3,550 and the 100-hourly Simple Moving Average. There was a minor correction above the $3,480 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $3,710 swing high to the $3,430 low. If there are more gains, the price might face resistance near the $3,550 level. The first major resistance is near the $3,570 level. It is close to the 50% Fib retracement level of the downward move from the $3,710 swing high to the $3,430 low. There is also a key bearish trend line forming with resistance near $3,650 on the hourly chart of ETH/USD. An upside break above the $3,650 resistance might send the price higher. The next key resistance sits at $3,720, above which the price might gain traction and rise toward the $3,820 level. A clear move above the $3,820 level might call for a test of the $3,920 resistance. Any more gains could send Ether toward the $4,000 resistance zone. Another Decline In ETH? If Ethereum fails to clear the $3,550 resistance, it could continue to move down. Initial support on the downside is near $3,475. The next major support is near the $3,430 zone. A clear move below the $3,430 support might push the price toward $3,320. Any more losses might send the price toward the $3,250 level in the near term. Technical Indicators Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone. Hourly RSI – The RSI for ETH/USD is now below the 50 zone. Major Support Level – $3,430 Major Resistance Level – $3,550
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TeraWulf: Breakout Is Likely To Continue
Summary TeraWulf, a domestic bitcoin miner, has broken out of a multi-month trading pennant and is expected to move higher. The company operates Bitcoin mining facilities in New York and Pennsylvania, with plans to increase mining capacity. TeraWulf aims to become debt-free and reinvest its operating cash flow into Bitcoin mining and data centers for generative AI and complex computing. TeraWulf ( WULF ) is a domestic bitcoin miner that owns and operates vertically integrated and environmentally clean facilities. The stock just broke out of a multi-month trading pennant that started late last year. Shares appear ready to move considerably higher over the summer, and especially if Bitcoin pricing can continue its upward trend in the second half of 2024. Further, WULF has a pilot program towards the development of data centers to capitalize on the growth in demand for locations to house the power-hungry processes of generative AI and related complex computing. As a result, I recently added exposure to WULF. TeraWulf currently operates a wholly owned Bitcoin mining facility in Lake Mariner, New York, and is part of a JV operating the Nautilus Cryptomine Facility in Berwick, Pennsylvania, along with Cumulus Coin and Talen Energy (TLNE). Talen owns and operates the Susquehanna nuclear power plant that provides Nautilus with a fixed cost of $0.02/kWh for its zero-carbon power for the next few years. TeraWulf's Lake Mariner facility is powered by hydroelectric electricity from a Niagara river facility that boasts 93% zero-carbon power at an annual average cost of $0.04/kWh. Both facilities are capable of substantially ramping their mining capacity. WULF has plans to make significant increases over the next year through already made purchase and option agreements for S21 miners. WULF's past and future BTC mining growth (TeraWulf's May 2024 Investor Update) Additionally, the company has been reducing its debt this year, and expects to be debt free within 2025. TeraWulf's ability to pay down debt is largely premised on its profitable mining operations, where it sells the Bitcoin it mines. Many large publicly traded Bitcoin miners switched to a ‘hodl’ strategy in 2021 or shortly thereafter. This distinction may allow WULF to not only become debt free, but also keep it from undertaking the significant level of dilution that proliferates the business. WULF's debt repayment since Q4 2023 (TeraWulf's May 2024 Investor Update) In addition to paying down its existing debt, WULF's future operating cash flow is likely to be reinvested into the company's ambitions for growth. These growth aspirations include both their Bitcoin mining operations and data centers for power-hungry processes such as generative AI and related complex computing. Operating AI data centers should be a highly complementary business to Bitcoin mining, where both require large optimized facilities with access to competitively priced energy, and ideally renewable energy. This secondary line of business should be expected to eventually attract a second investor base. It is reasonably likely that a growing number of investors will increasingly allocate into high-speed parallel processing of complex computations that are powered by cheap and renewable energy sources, such as those WULF intends to develop. After the semiconductor and hardware companies, leasable AI data centers appear to be the next pure-play within the ongoing AI revolution. I believe that it is probable that the marketplace will soon lump Bitcoin miners and AI data centers into a combined umbrella asset class that I currently think of as nodes acting as utilities. The primary difference between an AI data center and a Bitcoin miner is that the mining operations utilize Application-Specific Integrated Circuit ('ASIC') hardware, and the AI model are using Graphics Processing Unit ('GPU') hardware, but the best of both tend to be made by the same chip designers. WULF's stock recently broke out of what appears to be a 5-month long bull pennant pattern. WULF daily candlestick chart ( FINVIZ.com ) WULF shares appear likely to increase from here so long as Bitcoin pricing maintains or increases from here. Further, TeraWulf has another potential catalyst from its nascent data center business, where a future hosting contract may be announced, or investors may simply begin to speculate upon it. At WULF's current share price, the company has a market capitalization of almost exactly $1 billion. Many mutual and alternative fund instruments are restricted by their own covenants from buying securities based upon both the overall market value of the company and the actual stock price. In particular, a great many funds are restricted from purchasing stocks that have a market price below $5. As a result, there is far less institutional and news coverage of such low-priced equities. Similarly, many advisors cannot suggest equities below $5 to clients, as some compliance standards will consider them penny stocks. Risks The primary risk to TeraWulf is if Bitcoin were to sustain a significant decline. WULF and all Bitcoin miners will follow the underlying performance of Bitcoin, and likely with leverage. Other risks include the possibility of dilutive secondaries, which are incredibly common for Bitcoin miners, and the potential for excessive stock-based compensation. WULF's recent history of making debt repayments appears to indicate a conservative use of available cash, and hopefully that they will be sensible issuers of shares. While dilution is always problematic for Bitcoin miners, it is considerably less concerning towards the underlying thesis than is the potential for Bitcoin to enter a bear market. For this reason, if Bitcoin were to decline more than 10% from present levels and not immediately bounce off of some supportive level around there, I would likely abandon any near term speculation upon Bitcoin miners. Conclusion I believe that the recent breakout in TeraWulf shares has the potential to continue. If WULF gets a catalyst in the form of either an increasing Bitcoin price or a meaningful AI-related data center, let alone both, I think it is possible and even likely that WULF shares will be revalued well above current levels. Further, if shares can advance above $5, new fund and institutional investments are probable, as is an influx of media coverage.
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