{"id":7672,"date":"2021-04-24T14:07:39","date_gmt":"2021-04-24T18:07:39","guid":{"rendered":"https:\/\/cointelegraph.com\/magazine\/?p=7672"},"modified":"2021-04-24T14:09:50","modified_gmt":"2021-04-24T18:09:50","slug":"bullrun-stalls-transaction-fees-surge-041824","status":"publish","type":"post","link":"https:\/\/cointelegraph.com\/magazine\/2021\/04\/24\/bullrun-stalls-transaction-fees-surge-041824","title":{"rendered":"Is the bull run over? BTC loses $50,000 as transaction fees surge: Hodler\u2019s Digest, April 18\u201324"},"content":{"rendered":"

Coming every Saturday, <\/i><\/b>Hodler\u2019s Digest<\/i><\/b><\/a> will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more \u2014 a week on Cointelegraph in one link.<\/i><\/b><\/p>\n

Top Stories This Week<\/b><\/h2>\n

\"\"<\/h4>\n

<\/h4>\n

Bitcoin tumbles 10% in 12 hours and falls below $50,000 for first time since March<\/b><\/a><\/h4>\n

Things were looking markedly bearish for Bitcoin following last weekend\u2019s swift and sudden correction, which caused Bitcoin to crash by <\/span>20% <\/b>in a single hour.<\/span><\/p>\n

Within minutes last Sunday, <\/span>$60,000 <\/b>became a distant memory\u2026 with bulls forced to defend <\/span>$55,000 <\/b>instead. <\/span>BTC\u2019s prized $1-trillion market cap was also lost, and at one point, dominance sunk below 50% \u2014 a milestone that hasn\u2019t been seen since 2018.<\/b><\/p>\n

But by the early hours of Friday, as selling pressure heightened, the world\u2019s biggest cryptocurrency succumbed, dipping below <\/span>$50,000 <\/b>for the first time since March.<\/span><\/p>\n

Ether, which had managed to hit <\/span>a new all-time high of <\/span>$2,641.09<\/b><\/a> in the hours before the crash, also wasn\u2019t immune from the sell-offs.<\/span><\/p>\n

Mass liquidations, an overheated futures market, the decline of the Kimchi premium, whales selling and concerns over President Joe Biden\u2019s tax plans <\/b>may all have been factors<\/b><\/a> in the major correction.<\/b><\/p>\n

 <\/p>\n

PlanB speculates that Bitcoin\u2019s price fall doesn\u2019t mean the end<\/b><\/a><\/h4>\n

There\u2019s been no shortage of reaction to Bitcoin\u2019s loss of momentum, with PlanB, the analyst behind the stock-to-flow forecast, insisting that the fall below <\/span>$50,000 <\/b>doesn\u2019t mean that the current bull run is over.<\/span><\/p>\n

Pointing out that nothing goes up in a straight line, he tweeted: <\/span>\u201c#Bitcoin has gone up 6 months in a row, until this month. This looks like the mid-way dip that we also saw in 2013 and 2017.\u201d<\/b><\/p>\n

ExoAlpha\u2019s \u00c9lie Le Rest also believes that there are reasons to be optimistic, saying: <\/span>\u201cThis kind of market pullback <\/b>is very healthy<\/b><\/a> as it contributes to deleveraging market participants and builds ground for a more stable growth.\u201d<\/b><\/p>\n

The next major move in Bitcoin\u2019s price will prove decisive, helping us to determine if this is merely an overdue correction or the opening salvo of the next bear market cycle.<\/span><\/p>\n

Veteran trader and chart guru Peter Brandt wasted little time <\/span>in making a cheeky observation<\/span><\/a>, writing: <\/span>\u201cThe chances of a correction in cryptos is directly related to the prevalence of laser eyes on Twitter. Want the correction to end? Get rid of your laser eyes.\u201d<\/b><\/p>\n

 <\/p>\n

Bitcoin transaction fees in U.S. dollars near all-time highs<\/b><\/a><\/h4>\n

In other signs that history is repeating itself, Bitcoin transaction fees measured in U.S. dollars neared all-time highs recorded in 2017.<\/span><\/p>\n

Data from Blockchair shows the average cost of a BTC transaction hit $58 on Tuesday \u2014 approaching the record of $62 set in December 2017.<\/b><\/p>\n

The latest spike in BTC transaction fees comes amid a major decline in the Bitcoin network hash rate, which may have been exacerbated by massive power outages in the Chinese mining hub of Xinjiang.<\/span><\/p>\n

And the spike has also prompted some crypto exchanges to introduce less expensive ways of moving Bitcoin around as a matter of urgency, too.<\/b><\/p>\n

OKEx has now integrated the Lightning Network, while Square\u2019s Cash App <\/span>has quietly raised<\/span><\/a> the minimum Bitcoin withdrawal to <\/span>0.001 BTC<\/b> \u2014 100,000 satoshis \u2014 markedly higher than the <\/span>0.0001 BTC <\/b>that was in force previously.<\/span><\/p>\n

 <\/p>\n

\u201cBitcoin incentivises renewable energy,\u201d agree Elon Musk and Jack Dorsey<\/b><\/a><\/h4>\n

As crypto traders with furrowed brows were confronted by a sea of red, industry heavyweights were focusing their attention on how to go green.<\/span><\/p>\n

Earth Day 2021 happened this week<\/span><\/a>, and with Bitcoin regularly castigated for the high levels of energy that it takes to keep the network secure, some of the cryptocurrency\u2019s most vocal backers made the case for BTC\u2019s environmental efficiency.<\/span><\/p>\n

A new report authored by The Bitcoin Clean Energy Initiative argues that Bitcoin mining incentivizes the generation of electricity \u201cfrom renewable carbon-free sources.\u201d<\/b><\/p>\n

The paper has received support from top crypto luminaries including Square\u2019s Jack Dorsey, Tesla\u2019s Elon Musk, and Ark Invest\u2019s Cathie Wood.<\/span><\/p>\n

 <\/p>\n

Tether is listing on Coinbase Pro<\/b><\/a><\/h4>\n

Coinbase Pro has announced that it is listing Tether on its platform, paving the way for trading pairs linking the ERC-20 version of USDT with BTC, ETH, USDC, the euro, the British pound and the U.S. dollar.<\/span><\/p>\n

This is a rather big deal, and it signifies that the exchange <\/b>is not concerned<\/b><\/a> about the stablecoin\u2019s previous regulatory issues or the long-running controversy over the validity of Tether\u2019s backing.\u00a0<\/b><\/p>\n

Bitfinex chief technology officer Paolo Ardoino told Cointelegraph: \u201cWe are gratified by Coinbase\u2019s decision to add Tether tokens on ERC-20 to its Coinbase Pro platform. This is happening as we near a market capitalization of $50 billion and represents another step forward as we broaden our community.\u201d<\/span><\/p>\n

 <\/p>\n

Winners and Losers<\/b><\/h2>\n

 <\/p>\n

\"\"<\/p>\n

 <\/p>\n

At the end of the week, Bitcoin is at <\/span>$49,237.93<\/b>, Ether at <\/span>$2,203.74 <\/b>and XRP at <\/span>$1.06<\/b>. The total market cap is at <\/span>$1,813,860,544,571<\/b>.<\/span><\/p>\n

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are <\/span>Solana<\/b>, <\/span>Celo <\/b>and <\/span>PancakeSwap<\/b>. The top three altcoin losers of the week are <\/span>Bitcoin SV<\/b>, <\/span>NEM <\/b>and <\/span>Ontology<\/b>.<\/span><\/p>\n

For more info on crypto prices, make sure to read <\/span>Cointelegraph\u2019s market analysis<\/span><\/a>. <\/span><\/p>\n

 <\/p>\n

 <\/p>\n

Most Memorable Quotations<\/b><\/h2>\n

<\/h2>\n

 <\/p>\n

\u201cContrary to what you may have been told or wish, #crypto is not a get rich quick scheme.\u201d<\/span><\/p><\/blockquote>\n

Changpeng Zhao<\/b><\/a>, Binance CEO<\/b><\/p>\n

 <\/p>\n

\u201cBitcoin is up 600% in last year. Gold is up 3% in last year. No more tweeting until gold can beat inflation, Peter!\u201d\u00a0<\/span><\/p><\/blockquote>\n

Anthony Pompliano<\/b><\/a>, Bitcoin proponent<\/b><\/p>\n

 <\/p>\n

\u201cWithout any strong catalyst, breaking above $60k looks difficult at this time, and a break below $50k may drive Bitcoin down to $30k. Traditional markets showing signs of exhaustion may also put a dent on the crypto markets recovery.\u201d<\/span><\/p><\/blockquote>\n

David Lifchitz<\/b><\/a>, ExoAlpha chief investment officer<\/b><\/p>\n

 <\/p>\n

\u201cETH is rapidly becoming the currency of the digital world and BTC is the pristine collateral and base layer.\u201d<\/span><\/p><\/blockquote>\n

Raoul Pal<\/b><\/a>, Real Vision CEO<\/b><\/p>\n

 <\/p>\n

\u201cI think the crypto space is amazing right now. It\u2019s the best-kept secret in the world and maybe the history of the financial markets.\u201d<\/span><\/p><\/blockquote>\n

Thomas Farley<\/b><\/a>, New York Stock Exchange president<\/b><\/p>\n

 <\/p>\n

\u201cDOGE is relatively well suited for payments. It\u2019s extremely fast and efficient \u2014 transactions cost less than a cent.\u201d<\/span><\/p><\/blockquote>\n

Jason Lau<\/b><\/a>, OKCoin chief operating officer<\/b><\/p>\n

 <\/p>\n

\u201cunSAFEMOON\u201d<\/span><\/p><\/blockquote>\n

Luke Martin<\/b><\/a>, blockchain developer<\/b><\/p>\n

 <\/p>\n

\u201cWe have no appetite for dealing with customers, whether taking them on as new clients or having an ongoing relationship with people, whose main business is backed by an exchange for cryptocurrencies, or otherwise transacting in cryptocurrencies as their main activity.\u201d<\/span><\/p><\/blockquote>\n

Morten Friis<\/b><\/a>, NatWest head of risk committee<\/b><\/p>\n

 <\/p>\n

\u201cI would argue that such a change is critically important for Bitcoin to remain the world\u2019s dominant cryptocurrency. PoW\u2019s current energy demands and carbon footprint are already unsustainably high.\u201d<\/span><\/p><\/blockquote>\n

Chris Larsen<\/b><\/a>, Ripple co-founder<\/b><\/p>\n

 <\/p>\n

\u201cThe chances of a correction in cryptos is directly related to the prevalence of laser eyes on Twitter. Want the correction to end? Get rid of your laser eyes.\u201d<\/span><\/p><\/blockquote>\n

Peter Brandt<\/b><\/a>, veteran trader<\/b><\/p>\n

 <\/p>\n

\u201c70% of our time should be focused on core work, 20% on strategic bets, and 10% on innovative experimentation.\u201d<\/span><\/p><\/blockquote>\n

Coinbase<\/b><\/a><\/p>\n

 <\/p>\n

\u201cI think we could pull back to $20,000 to $30,000 on Bitcoin, which would be a 50% decline, but the interesting thing about Bitcoin is we\u2019ve seen these kinds of declines before.\u201d<\/span><\/p><\/blockquote>\n

Scott Minerd<\/b><\/a>, Guggenheim chief investment officer<\/b><\/p>\n

 <\/p>\n

\u201cCould Bitcoin really be stopped by government? I actually think maybe it could be.\u201d<\/span><\/p><\/blockquote>\n

Curtis Spencer<\/b><\/a>, Electric Capital co-founder<\/b><\/p>\n

 <\/p>\n

Prediction of the Week<\/b><\/h2>\n

<\/h4>\n

Guggenheim CIO repeats $20,000 Bitcoin price forecast as BTC doubles since last warning<\/b><\/a><\/h4>\n

The chief investment officer of Guggenheim has repeated his warning that Bitcoin will crash to <\/span>$20,000<\/b>.<\/span><\/p>\n

Speaking to CNBC, Scott Minerd said: \u201c<\/span>Given the massive move we\u2019ve had in Bitcoin over the short run, things are very frothy, and I think we\u2019re going to have to have a major correction in Bitcoin.\u201d<\/b><\/p>\n

It is worth noting that Minerd is adamant that Bitcoin could hit <\/span>$400,000 <\/b>in the long run. He said: <\/span>\u201cI think we could pull back to $20,000 to $30,000 on Bitcoin, which would be a 50% decline, but the interesting thing about Bitcoin is we\u2019ve seen these kinds of declines before.\u201d<\/b><\/p>\n

Many Bitcoin proponents have dismissed suggestions that deeper losses were inevitable, referencing a combination of factors including strong on-chain indicators. <\/span>Minerd has also been wrong before. Back in January, he said Bitcoin had put in a price top for 2021\u2026 and since then, it has more than doubled.<\/b><\/p>\n

 <\/p>\n

FUD of the Week\u00a0<\/b><\/h2>\n

\"\"<\/p>\n

<\/h4>\n

 <\/p>\n

Not so safe? SafeMoon\u2019s parabolic rally isn\u2019t sustainable, traders warn<\/b><\/a><\/h4>\n

A token on the Binance Smart Chain has been receiving a lot of attention from crypto enthusiasts on TikTok, but there are warnings that its recent rally is unsustainable.<\/span><\/p>\n

SafeMoon\u2019s price rose from $0.00000029 to $0.0000074 in merely three weeks \u2014 gains of 2,200%. The altcoin then dramatically dropped by 50% in two days.<\/b><\/p>\n

Luke Martin, a well-known cryptocurrency trader, described the price trend of SafeMoon as \u201cunSAFEMOON\u201d after it had dropped 65% in a short period on April 22.<\/span><\/p>\n

 <\/p>\n

Another U.K. bank serves anti-crypto notice to customers<\/b><\/a><\/h4>\n

The British bank NatWest has said that it will refuse to serve business customers that accept cryptocurrency payments.<\/span><\/p>\n

A report in The Guardian quoted the head of the bank\u2019s risk committee, Morten Friis, as saying: <\/span>\u201cWe have no appetite for dealing with customers, whether taking them on as new clients or having an ongoing relationship with people, whose main business is backed by an exchange for cryptocurrencies, or otherwise transacting in cryptocurrencies as their main activity.\u201d<\/b><\/p>\n

Friis\u2019 comments echo similar sentiments recently attributed to HSBC, another U.K. bank, that used identical statements in announcing its decision to bar customers from buying MicroStrategy stock. HSBC\u2019s anti-crypto stance also saw the bank refuse to allow account holders to deposit profits from cryptocurrency exchanges earlier in the year.<\/span><\/p>\n

 <\/p>\n

Governments can stop Bitcoin by shutting down mining, says Electric Capital exec<\/b><\/a><\/h4>\n

Electric Capital co-founder and partner Curtis Spencer has implied that the Bitcoin network may owe its continued existence to the grace of world governments.\u00a0<\/span><\/p>\n

In a panel at the Collision Conference web summit on Tuesday, Spencer said lawmakers are the ones giving Bitcoin a chance to grow by not imposing harsher restrictions on mining operations in their respective countries.\u00a0<\/b><\/p>\n

He argued: \u201cCould Bitcoin really be stopped by government? I actually think maybe it could be. If you think about the cost of attacking the network, it\u2019s not something that nation-states couldn\u2019t do.\u201d<\/span><\/p>\n

Spencer then pointed to what happened in Xinjiang, where a power outage dramatically affected Bitcoin\u2019s hash rate.<\/span><\/p>\n

 <\/p>\n

Best Cointelegraph Features<\/b><\/h2>\n

 <\/p>\n

\"\"<\/h4>\n

<\/h4>\n

Satoshi Nakamoto saves the world in an NFT-enabled comic book series<\/b><\/a><\/h4>\n

A comic version of Satoshi Nakamoto (SATOSH1) explores a \u201cdistant dystopian future version of our Earth after the \u2018Big Reset\u2019, where the big corporations and citadels hold the power.\u201d<\/span><\/p>\n

<\/h4>\n

DOGE out of control? Social media and whales sway Dogecoin price action<\/b><\/a><\/h4>\n

Dogecoin posting over 14,000% gains in a year could be a sign of the rise of retail investors in the crypto market, but will the price go up even further?<\/span><\/p>\n

<\/h4>\n

One week of COIN: How Coinbase\u2019s Nasdaq listing is shaping up so far<\/b><\/a><\/h4>\n

Coinbase\u2019s largest investors \u2014 Andreessen Horowitz, Union Square, Ribbit Capital \u2014 have already roped in multi-billion-dollar profits.<\/span><\/p>\n

<\/h4>\n","protected":false},"excerpt":{"rendered":"

The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more \u2014 one week on Cointelegraph in one link!<\/p>\n","protected":false},"author":15,"featured_media":7677,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"mc4wp_mailchimp_campaign":[],"_links_to":"","_links_to_target":""},"categories":[35,2413],"tags":[2933,2928,2722,2927,2929,2930,2727,2795,2736,2902,2932,2931],"yst_prominent_words":[225],"_links":{"self":[{"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/posts\/7672"}],"collection":[{"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/comments?post=7672"}],"version-history":[{"count":4,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/posts\/7672\/revisions"}],"predecessor-version":[{"id":7681,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/posts\/7672\/revisions\/7681"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/media\/7677"}],"wp:attachment":[{"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/media?parent=7672"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/categories?post=7672"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/tags?post=7672"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/yst_prominent_words?post=7672"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}