In this article, we look at what are the latest market news for Bitcoin and a future price forecasting, according to investment broker eToro.
At the center of the discussions we find an issue related to cryptocurrency mining, which is increasingly becoming an incentive for energy sustainability, with a rare event in which a user paid 19 BTC, or about $500,000, as a fee on the crypto network.
Finally, let’s look at a price analysis and a forecasting of Bitcoin’s future trend: are we close to the long-awaited bull market?
All the details below.
eToro and the latest market news for Bitcoin: mining boosts energy sustainability
The latest crypto news offered by eToro is primarily about an affair that has to do with Bitcoin mining and its predisposition to incentivize the use of renewable energy.
Last week, one of Texas’ leading computing power providers, Riot Blockchain, released its August results, revealing that it received a $32 million economic incentive for reducing its power consumption during peak hours when the Electric Reliability Council of Texas (ERCOT) struggles to support high demand.
This strategy is called “demand response” and is precisely based on the voluntary decision by large industries to halt energy demand during the hottest hours so that the power grid can maintain its stability while avoiding heavy blackouts.
As a reward, ERCOT gave Riot a reward of $32 million in energy credits, which is a significant income compared to the mining company’s monthly revenues.
Compared to July, Riot managed to mine fewer BTC in August due to reduced energy consumption, while counting a significant increase in “Power credits” and “Demand Response Credits.”
In detail, counting a reduction in revenue from BTC sales of $3.5 million, we can observe an increase in economic incentives of $23.8 million.
What happened with the mining company in August is proof that this sector can somehow incentivize energy sustainability by improving the operation of power grids.
At the same time, Bitcoin miners can be a release valve for renewable energy by allowing for a steady economic return, enabling them to partially abate the costs associated with building and maintaining photovoltaic panels and wind turbines.
Of note in this regard is how in the United Kingdom last week there was a failure of a wind auction due to the associated uneconomic costs.
Digital gold mining could in this sense offer an unconventional solution to support the development of renewable energy by contributing economically to its sustenance
A massive $500,000 fee for a cryptocurrency network user
Another news report from eToro concerns a curious affair involving a Bitcoin whale and a whopping $500,000 fee paid for a single transaction.
Indeed, looking at the data from “Mempool.space” we can see how in block 807057 the total fees for miners amount to 20.013 BTC, much higher than those recorded in the previous block, where we see a total of 0.178 BTC.
The address bc1qr35hws365juz5rtlsjtvmulu97957kqvr3zpw3 is responsible for this anomaly since it paid a whopping 1,982,108,632 sat (about 19 BTC), equivalent to $510,770 to execute a single transaction on Saturday, September 9 at 7:10 PM (CET).
This is the largest commission paid to date within the Bitcoin network.
Usually a user may decide to pay multiple fees to get priority confirmation of his tx, however in this case the order of magnitude seems so exaggerated as to suggest a typing error.
On average it costs about $2 to perform a transaction in Bitcoin according to current data.
In May, under the wave of Fomo ushered in with the advent of Ordinals, average fees came to cost about $30, an exaggerated value but extremely far from the half-million dollar figure.
In any case, looking at the address in question we can see a balance of more than 400 BTC, equal to more than $10 million, and a considerable amount of transactions that were executed after the one related to the huge fee.
Thus, the mishap has not hindered the whale, which while recording a painful mistake does not seem to have gone down, continuing its operations at a high pace.
Future price forecasting for Bitcoin by eToro: the week of truth?
After reporting the news reported by the broker eToro, let’s look at a future price forecast for Bitcoin. We are in a very important week that may decree the price action in the coming months until the end of the year.
At the moment BTC is at around $25,720, poised between a possible bullish restart and a tremendous bearish shakeout.
Prices have been stagnating at this level now since 19 August giving signs that signal a likely descent ahead.
The only bullish attempt dated 19 August, on the news that Grayscale had won a very important lawsuit against the SEC, was promptly absorbed by the next two candles that erased all previous gains.
Moreover, the directionality of the short trend is blatantly bearish with the asset holding firm below the EMA 10 and EMA 50.
A break of the $25,000 would take us straight to $23,000 and then to $20,000, where major support is located.
Countering the bears’ assumptions is the RSI indicator, which shows us an interesting bullish divergence on a daily time frame: while in fact prices have been going sideways since mid-August, the RSI is rising and could lead prices to a pump in the coming days.
As such, a quick recovery of $28,000 and then $30,000 could invalidate bear theories and bring bulls back into the market.
However, the outlook between now and the next few weeks remains negative, and it seems that we should wait until next year before an actual return to the bull market.
2024 could be the year for us to be able to find Bitcoin at its all-time highs again, given the coincidence with the halving, which usually prompts the cryptocurrency to increase its price significantly in anticipation of reduced supply in the markets.
Hang on holders, it can’t rain forever.