CryptoCurrency
iYield Launches Crypto's 1st Financial Planning Tool
Mahe, Seychelles, December 9th, 2024, Chainwire
iYield provides users with a free and secure platform for tracking cryptocurrency cryptocurrency, DeFi, and traditional finances.
iYield was founded by Gentleman James, a crypto native and experienced DeFi investor. Driven by his need for a better way to manage and track his crypto, including DeFi yields, and frustrated by juggling spreadsheets and multiple dashboards, James built iYield for investors like himself.
Unlike portfolio trackers that only display asset values, iYield reveals a full financial picture by also supporting debts, incomes, and expenses – in both crypto and fiat. iYield’s dashboard lets users compare returns from their DeFi positions side by side, eliminating uncertainty and offering them the clarity needed to make smarter, more informed decisions.
Simplified Financial Management
iYield has integrated over 16,000 tokens across 17 blockchains, 40 top DeFi, and staking protocols, along with all fiat currencies, into one unified platform. This gives users real-time insights into their finances empowering them to manage everything from one secure dashboard.
iYield enables users to track a broad range of assets, from Bitcoin and Eigenlayer restaking to Solana-based tokens, traditional savings accounts, and daily expenses. The platform includes tools for budgeting, financial forecasting, and cash flow monitoring, helping users enhance their financial management and plan for long-term growth.
Real-Time DeFi Yield Tracking
iYield distinguishes itself among other crypto portfolio trackers by integrating with a growing list of the top DeFi and StakeFi protocols, including Aave, Ethena, Ether.fi, Eigenlayer, Pendle, Rocket Pool, Thorchain, Uniswap, and Zircuit. The platform also provides real-time tracking of investments, staking rewards, and income streams.
New Feature: Historical Value Tracking
iYield’s latest feature enhances financial tracking by introducing the ability to view historical values. Users can now access detailed records of their items’ value and balance from the moment they were added to the platform. This feature enables a deeper analysis of financial decisions, helping users understand their impact and refine strategies for long-term success.
Built on Privacy and Security
iYield is built on a privacy-first foundation, ensuring that users can plan and manage their finances without ever compromising their personal data.
This starts with anonymity. Unlike many other platforms, iYield does not collect user IDs or sell user data, and it never asks for access to funds or personal information. The platform operates without ads, data mining, or fees, ensuring a private and secure experience for all users.
About iYield
iYield’s mission is to empower individuals to take full control of their financial future. With a clear, holistic view of both crypto and fiat finances, users can confidently make informed decisions about their long-term financial growth. From budgeting and cash flow to comparing DeFi yields side by side, iYield equips users with the tools they need to make better decisions and gain financial independence, all for free.
For more information, users can visit iYield’s Website | Twitter | Discord
ContactMarketing DirectorJoshiYieldjosh@iyield.com
Disclaimer: This is a sponsored press release and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.
CryptoCurrency
Paying Employees In Cryptocurrency – All You Need To Know!
Pros and Cons of Paying Employees in Cryptocurrency
Paying employees in cryptocurrency has several potential advantages and disadvantages.
Pros
- Transaction speed – Crypto transactions can be completed instantaneously without any time-consuming procedures, such as through the banking system allowing employees to receive their remuneration immediately.
- Transaction fees – Cryptocurrency processing has lower transaction costs, enabling businesses to pay employees without incurring high fees.
- Tax efficiency – The laws regarding cryptocurrency vary according to a company’s operation region. Paying employees with cryptocurrency can generate tax efficiency for several employees.For example, Bitcoin is treated as a property in the United States. Bitcoin owners are required to pay capital gains tax (CGT) which is applied on the sale of any cryptocurrency that has appreciated in value since it was acquired.Therefore, many high-salary employees prefer receiving crypto compensation rather than cash salary when the CGT is lower than the high-income tax bracket.
- Workforce appeal – Paying employees in the form of cryptocurrency acts as a hiring incentive for young individuals and the global workforce in general who understand and use crypto and want to minimize their reliance on other authorities, such as financial intermediaries. Therefore, making remunerations in crypto can provide a distinctive recruiting edge to any business.
- Potential gains – One of the unique features of the crypto market is its constant fluctuation in value. Therefore, it carries a great investment potential allowing employees to get a better value than they would have received through cash payments.
Cons
- Compliance – Laws related to cryptocurrency constantly evolve and vary greatly based on location. Therefore, it is difficult to ensure that companies paying employees in cryptocurrency comply with federal law as well as local laws.
- Volatility – The world of virtual currencies experiences great volatility, which could increase or decrease the value of payments within a short time, leaving them worthless. Therefore, making base salary payments to employees in cryptocurrency carries a high amount of risk.
- Inconsistency in global integration – Cryptocurrency lacks integration with the banking and finance systems making it a major challenge on the logistics part, such as paying cryptocurrency as salaries. Many financial institutions, including banks, do not recognize virtual currency and offer no option to integrate payments for goods and services.
Moreover, cryptocurrency is not treated as lawful money or legal tender in many countries, making it a global challenge to pay employees in cryptocurrency.
Are Crypto Payments Subject to Taxes?
Payments made in crypto are treated differently according to the legal regulations in various countries and carry different tax implications for employees and how employers choose to distribute crypto.
For Employees
The tax implications for employees receiving crypto vary according to the type of payment. For example, if employers pay bonuses, they are treated as fringe benefits and are treated in compliance with the Fringe Benefits Tax Assessment Act 1986, which accounts for 47% of the taxable value. Crypto gifts and bonuses of less than $300 per year are exempted from this tax.
For Employers
Just buying and holding crypto is not taxable in the U.S., as all taxes are applied to capital gains in the event of selling or using a cryptocurrency. However, in the U.K., cryptocurrency taxes are applicable to the current market value at the time of making payments.
Companies Paying Wages in Cryptocurrency
The increasing demand and acceptability of payments in the cryptocurrency by the top companies, including Microsoft and Tesla, has encouraged businesses to pay wages in crypto. Some companies that offer compensation in crypto include GMO Group, BitShares, SC5, Fairlay, and Bitwage.
- GMO Group- Focuses on online advertising, media, and internet finance.
- BitShares- A cryptocurrency exchange platform that allows the trading of virtual currencies and pays its employees wages in crypto.
- SC5 – A Finnish company that offers application and software development services.
- Fairlay- A cryptocurrency exchange and a prediction platform that pays its employees in Bitcoin.
- Bitwage- A solution provider that caters to services such as payroll and invoicing.
FAQs: Is Paying Employees in Crypto Worth It?
What is the legal status of paying employees in crypto?
The laws related to cryptocurrency are different throughout the world, and they might be treated as legal tender in some countries, such as El Salvador, whereas they are banned in some countries, such as China. Even if cryptocurrency exchange is accepted in a country, it does not necessarily mean that it can be used to pay wages.
What are the tax implications of making cryptocurrency payments to employees?
The state law for making a payment to an employee in crypto is different in compliance with the regulations of each country. For example, tax is due on all earnings in the U.K., which means that cryptocurrency holders are liable to pay taxes in accordance with the fair market value at the payment time.
On the other hand, the IRS treats cryptocurrency as property, and owners are liable for tax payments on capital gains.
How to be smart about paying employees in crypto?
Crypto compensation can be a convenient option with multiple potential benefits, but it will take time until it is well-understood and coordinated amongst different state and legal authorities.
Moreover, this process still needs regulatory guidance and confidence so that it can be completed without any inconvenience. Employers need to take into account multiple aspects when making their remuneration decision, such as tax implications, legal aspects, and the regulatory environment.
Final Thoughts
There is no question about the feasibility, and positive impact cryptocurrency has made on the global financial paradigm, including the payroll procedure of many companies, such as in the United States.
However, the use of digital currencies is still prohibited in many countries, including China which puts a question mark on the use of cryptocurrency as a compensation option.
As the use of cryptocurrency to pay employees is a relatively new concept, it will take some time until it becomes a reliable business practice. Therefore, the decision to pay employees in cryptocurrency should be considered through a holistic perspective by taking into account all concerning factors such as tax implications, legal aspects, and employee well-being.
Lastly, please note that this is not a piece of financial advice, and employees as well as employers need to understand the risks of cryptocurrency before making their decisions.
CryptoCurrency
PENGU Surges 6%, But Can It Sustain the Momentum?
According to Coinglass, the latest data indicates that PENGU has recorded spot market outflows of $1.14 million. This would tend to suggest that many investors are cashing in on the recent price increase, which would be profit-taking behavior and a possible lack of confidence in further gains.
Adding to the uncertainty, PENGU’s Chaikin Money Flow (CMF) stands at -0.19, despite the price rally. A negative CMF often signals weak buying interest and hints at a possible price reversal. This divergence raises concerns about whether the rally can be sustained.
At its current price, PENGU remains just above its all-time low support level of $0.022. Analysts warn that if buying pressure continues to decline, the token’s value could dip to this level soon. On the other hand, renewed demand for the token might push its price up to $0.030.
For now, all eyes are on PENGU as traders watch for signs of either a deeper drop or a renewed surge.
CryptoCurrency
North Dakota mulls bill to safeguard consumers from crypto ATM scams
North Dakota regulators are debating a bill that introduces consumer protections to combat scams involving cryptocurrency ATMs.
During a Jan. 22 hearing, lawmakers in North Dakota discussed House Bill 1447, introduced to the state’s legislative assembly earlier this month, which seeks to cap daily withdrawals, regulate transaction fees, and mandate fraud warning notices on crypto ATMs to safeguard residents from financial scams.
For those unfamiliar, crypto ATMs are kiosks at physical locations that allow users to convert cash into cryptocurrencies and vice versa. However, the limited regulation surrounding these machines and the anonymity provided by cryptocurrency transactions have made them increasingly susceptible to exploitation by scammers, who use them as a channel for funneling illicit loot.
According to Lisa Kruse, North Dakota’s Department of Financial Institutions Commissioner, locals filed 103 crypto scam complaints with the FBI in 2023 alone, resulting in reported losses of $6.5 million.
Reported losses are much higher when considering the latest Federal Trade Commission data, which shows that scam incidents in the United States have surged over tenfold between 2020 and 2023.
At the hearing, House Representative Steve Swiontek, the primary sponsor of the bill, raised concerns over the current lack of regulations and protection measures that make it easier for criminals to exploit crypto ATMs.
What is House Bill 1447?
The bill seeks to put in place various protection measures, such as capping daily withdrawals at $1,000 and limiting transaction fees to $5 or 3% of the transaction amount, whichever is higher.
Additionally, it mandates that all crypto ATMs display fraud warning notices to alert users of common scam tactics and advise them to contact law enforcement if they suspect fraudulent activity. Users will also be notified of the irreversible nature of crypto transactions so they’re aware that funds, once sent, may not be recoverable.
Meanwhile, Kiosk operators will be required to acquire a license, comply with requirements applicable to money transmitters under state law, and submit quarterly reports to the state commissioner.
They must also ensure that kiosks are placed in commercially accessible areas, are accessible to users with mobility limitations, and are equipped with adequate security measures such as proper lighting and surveillance.
The bill has received support from committee members and industry representatives, including Kevin Lolli from CoinFlip, who backed its consumer protection measures but was against the transaction limits and fee caps.
Regulatory efforts
With crypto ATM-related fraud cases on the rise, regulators all across the globe have moved to tighten oversight of the sector. Concerns over money laundering and unregulated operations also remain at the forefront.
The Niagara Regional Police announced a similar initiative on Jan. 22 where it said it would collaborate with major kiosk operators in Ontario, Canada, to issue warnings on crypto ATM machines.
Meanwhile, in Germany, authorities reported carrying out nationwide raids to crack down on unlicensed crypto ATM operations. Roughly $28 million in cash and 13 kiosks were seized as a part of the effort.
CryptoCurrency
Bitcoin (BTC) Above $100K is Like Coiled Spring Nearing Burst of Price Volatility, Key Indicator Suggests
Volatility traders looking to capitalize on significant price swings may soon find opportunities. A key indicator suggests that bitcoin (BTC), currently above $100,000, resembles a coiled spring poised to release energy in either direction.
The indicator is the rolling 60-day price range, representing the variation in maximum and minimum price ticks in percentage terms. A tighter range implies stable market conditions characterized by range play and demand-supply equilibrium.
Analysis by Glassnode shows that bitcoin’s 60-day range is now tighter than the current trading range. Historically, such patterns have presaged volatility explosions.
“All of these instances have occurred prior to a significant burst of volatility, with the majority being in early bull markets or prior to late-stage capitulations in bear cycles,” Glassnode said in its weekly analysis report.
Volatility is mean-reverting, that is, it tends to oscillate around its lifetime average. Rapid price swings typically follow a low-volatility period and vice versa.
It is also price agnostic. Higher volatility means price fluctuations will become bigger and potentially more unpredictable. It does not say whether prices will surge or slump.
Recent flows, however, have been biased bullish, particularly on the Chicago Mercantile Exchange, where traders have been piling into call options. A similar bullish bias is apparent on Deribit and other exchanges.
“BTC futures continue to trend upward, especially on the front end, as the market’s net-long exposure from last week remains solid. Bullish bets currently outpace bearish ones by a ratio of approximately 20:1,” QCP Capital said in a Telegram broadcast.
If the positioning is a guide, it’s safe to say that market participants expect a bullish resolution to BTC’s multiweek consolidation between $90,000 and $110,000.
CryptoCurrency
XRP & Cardano Technology Outdated By 1Fuel Exchange as Presale Hits Major Milestones
Crypto never sleeps, but even in a market that thrives on volatility, some shifts hit harder than others. Bitcoin is back above $105K, Ethereum is holding its ground, and XRP and Cardano are rolling out big developments.
But right when everyone thought they had the landscape mapped out, 1FUEL (OFT) presale picked up the pace. Its presale just soared past $1.4 million, and with frictionless cross-chain transactions, airtight privacy features, and staking rewards that actually mean something, 1FUEL is outpacing legacy projects that have been slow to evolve.
XRP and Cardano have been climbing, but in a space that rewards innovation over nostalgia, they might need to pick up the pace. Here’s why!
2025 is a big year for XRP
XRP has made itself impossible to ignore, starting the year on a blistering run and planting its flag as the third-largest cryptocurrency with a market cap of $186 billion. It’s still the go-to for rapid, low-cost cross-border payments, and Ripple keeps stacking heavyweight partnerships. Momentum is strong, and confidence in XRP hasn’t wavered.
But in a world where DeFi keeps evolving, momentum isn’t enough. The market is shifting toward complete interoperability, yet XRP remains bound to its lane. It thrives in its ecosystem, but what happens when the entire space demands something bigger?
While XRP methodically carves its path, 1FUEL is already hopping across chains like a digital nomad with no baggage. No conversions, no multi-wallet mess, just quick movement in a way XRP hasn’t even scratched the surface of.
Cardano’s leap of faith
ADA reclaiming $1 was a moment worth celebrating. Cardano’s daily active addresses have shot past 50,000, and the Plomin hard fork is set to enhance scalability and performance. If ADA can clear the $1.20 resistance, it could trigger a strong bullish run.
Yet for all its progress, Cardano still feels like it’s waiting for something, a green light, a catalyst, a perfect storm to push it where it needs to be. While discussions swirl around a potential Cardano ETF under Trump’s administration, the reality is simple: the crypto world isn’t waiting.
ADA is still climbing back from a 68% discount on its all-time high, and while that’s not a death sentence, it’s a sign that patience can only take a project so far.
1FUEL is the disruptor nobody accounted for
XRP’s speed is undeniable. Cardano’s ambition is real. But 1FUEL’s cryptocurrency wallet and next-gen platform aren’t locked into one role, they’re taking everything crypto should be and cranking it up.
1FUEL promises no more wrestling with cryptocurrency wallets or waiting for an exchange to approve a swap. 1FUEL moves assets between chains like they were never separated in the first place. While XRP and Cardano double down on their respective strengths, 1FUEL is proving that strength comes from adaptability, not just refinement.
Not to mention, privacy is something neither XRP nor Cardano has truly prioritized. 1FUEL is making it a fundamental part of how transactions work. An inbuilt mixer, disposable wallets, and layers of protection keep movements off the radar. Cold storage solutions lock assets away from prying eyes, leaving no room for exploits.
Even staking isn’t an afterthought. Instead of throwing out token rewards that barely matter, 1FUEL is offering up to 30% APR, making passive income something worth paying attention to, making OFT one of the best growing cryptocurrencies of this year.
The bottom line
XRP and Cardano have built their legacies, and they’ll continue to play major roles in the crypto space. XRP still dominates the payments sector, and Cardano’s upgrades might finally bear fruit. But when the conversation shifts from what’s merely functional to what’s truly redefining crypto, 1FUEL is leading that discussion as the best growing cryptocurrency.
1FUEL’s presale’s success is about recognition. The market sees what’s happening, and it’s moving fast, with early backers already sitting on 70% gains. OFT’s current price of only $0.017 might be the lowest it’ll ever be.
To Find Out More About The 1Fuel Presale Use The Links Below:
Website: https://1fuel.io/
Telegram: https://t.me/Portal_1Fuel
Twitter / X: https://x.com/1Fuel_
Disclaimer: This is a sponsored press release and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.
CryptoCurrency
Yuga Labs responds to CryptoPunks rumors, MakersPlace shuts down: Nifty Newsletter
NFT collection Mad Lads surged in market capitalization as the price of Solana reached a new all-time high.
CryptoCurrency
Bank of England to cut interest rate six times by next year as UK economy slumps, Goldman Sachs says
Markets are greatly underestimating the likelihood that the Bank of England will need to speed up the pace of interest rate cuts, Goldman Sachs has argued.
They forecast that UK interest rates could drop to 3.25 per cent by the second quarter of 2026.
The Bank of England could cut interest rates six times by next year due to sluggish economic growth, according to the US investment bank.
Goldman analysts believe that the markets are underestimating the number of rate cuts, stating: “We believe that markets are pricing too few rate cuts.
“While it is possible that the Bank of England will slow the pace of cuts if underlying inflation fails to make progress, we believe that a step-up to a sequential pace of cuts in response to weaker demand is actually more likely.”
The Bank of England rate cuts could happen more quickly, Goldman sachs says
GETTY
While markets expect two interest rate cuts this year, most economists think the Bank of England will reduce rates every quarter in 2025, with a 0.25 per cent reduction likely at the next meeting on February 6.
Rates were cut twice last year, from 5.25 per cent to 4.75 per cent.
Goldman Sachs points to weaker-than-expected economic growth as a key factor that will likely prompt the Bank of England to loosen policy more quickly.
November’s GDP growth was just 0.1 per cent, below expectations, and services inflation dropped to 4.4 per cent in December.
They also noted that private sector surveys suggest the labour market has weakened following the October Budget, which raised taxes on employers. Unemployment has increased to 4.4 per cent, and job vacancies have fallen to their lowest level since mid-2021.
The US investment bank acknowledged that price pressures were “uncomfortably high”, but said there were “several indications” that the medium-term inflation outlook was “softening”.
Most analysts think that the economy was essentially flat at the end of last year, while fears about inflation have started to rise up the agenda again too.
LATEST DEVELOPMENTS:
Economists think the headline rate of inflation could surpass three per cent by the spring on the back of higher energy prices, a weaker pound and the impact of the Budget.
Analysts led by Sven Jari Stehn said: “Growth has weakened markedly…household real disposable income growth is likely to slow…and rising trade tensions are likely to weigh on activity.”
They expect the UK economy to grow 0.9 per cent in 2025, notably behind the consensus estimate of 1.3 per cent.
Goldman analysts added: “While some of this weakness is likely related to expectations for a negative employment effect from the upcoming national insurance increase, we now see notable signs of underlying cooling, which should weaken pay pressures over time.
“We are sceptical that Bank Rate can stay above four per cent persistently – as priced by financial markets – without materially weakening the economy and thus inflation.”
Three members of the nine-strong Monetary Policy Committee (MPC) voted to cut rates in December as the Bank said the economy was stagnant in the fourth quarter.
Alan Taylor, a new member of the Bank’s monetary policy committee, indicated last week that he would be open to cutting interest rates five or six times saying he would be comfortable with this approach “to get interest rates back toward normal to sustain a soft landing.”
CryptoCurrency
North Dakota Lawmakers Push for Stricter Regulations on Cryptocurrency ATMs
In a recent legislative move, North Dakota lawmakers have proposed new limitations on cryptocurrency ATMs within the state. This initiative aims to combat the rising tide of scams associated with these machines. The proposed regulations come as part of a broader effort to protect consumers from financial fraud in the rapidly evolving digital currency landscape.
The bill proposes a daily withdrawal limit of $1,000 per customer and fees would be capped at either $5 or 3% of the transaction amount, whichever is higher.
Cryptocurrency ATM operators would need to obtain state licensing to operate in North Dakota. Operators would be required to refund ATM fees for transactions related to fraud.
The bill mandates that ATMs print out receipts for every transaction, providing a paper trail for law enforcement investigations. While not explicitly stated in the bill, some operators already report suspicious transactions exceeding $2,000 to federal authorities.
The limit is similar to some other states:
Vermont: $1,000 daily transaction limit.
Minnesota: $2,000 daily transaction limit for new customers.
California: $1,000 daily transaction limit (recently implemented)
The new bill, introduced in the North Dakota legislature, seeks to implement several key measures:
– Mandatory registration of all cryptocurrency ATM operators with state financial regulators
– Enhanced user verification processes at ATM locations
– Prominent display of fraud warnings and consumer protection information on ATM screens
– The bill mandates that ATMs print out receipts for every transaction, providing a paper trail for law enforcement investigations
– Limits on daily transaction amounts to deter large-scale fraudulent activities
Proponents of the bill argue that these measures are necessary to safeguard vulnerable individuals who may fall prey to sophisticated crypto scams. Critics, however, contend that overly restrictive regulations could stifle innovation in the cryptocurrency sector.
As the bill moves through the legislative process, it has sparked a debate about the balance between consumer protection and technological advancement in the financial industry. The outcome of this proposed legislation could set a precedent for other states grappling with similar issues surrounding cryptocurrency ATMs and their potential for misuse.
The North Dakota initiative reflects a growing trend of increased scrutiny on cryptocurrency operations across the United States, as lawmakers and regulators seek to establish a more secure and transparent environment for digital currency transactions.
Angel Marinov is the Managing Editor at Coinlabz. With extensive knowledge of crypto payments and blockchain use cases, Angel is a trusted source of accurate and timely information
CryptoCurrency
Dogecoin ETF may be coming soon, Bitwise files registration
Bitwise has recently filed documents to the Delaware’s Department of State, applying for the registration of a Bitwise Dogecoin ETF.
On Jan. 22, crypto fund manager Bitwise Asset Management submitted documents to register for a Dogecoin (DOGE) exchange-traded fund. The filing can be found within the Delaware Department of State’s Division of Corporations official website. The agent registered on the form was revealed to be CSC Delaware Trust Company.
Bitwise’s application marks the start of the process towards establishing a Dogecoin ETF under the fund manager. A few hours after the news broke, the Polymarket poll betting on the odds of whether a Dogecoin ETF will get approved by the SEC in 2025 stood at nearly 50%.
In the past 24 hours of trading, Dogecoin has dipped slightly by 3.18% to a trading price of $0.35 according to data on crypto.news. In the past week, the Shiba Inu coin has gone down by nearly 7%. DOGE currently has a market cap of more than $52 billion and a 24-hour trading volume of $2.8 billion.
As previously reported by crypto.news, Dogecoin’s price movement has been showing signs of heading towards a bullish breakout amidst the ongoing crypto rally.
Is a Dogecoin ETF on the horizon?
Just two days before Bitwise’s Dogecoin ETF registration, another asset manager, REX Shares, also submitted a filing for a Dogecoin ETF to the U.S. Securities and Exchange Commission. Aside from Dogecoin, REX Shares also filed for ETFs tied to the official TRUMP meme coin, Bitcoin, Ethereum, XRP, Bonk, and Solana.
Senior ETF analyst at Bloomberg, Eric Balchunas commented on the rise of the Dogecoin ETF, calling it “surreal” in a recent post on X. He also previously predicted that a Dogecoin filing would come around the end of December.
Dogecoin has been gaining momentum these past few months after President-elect Donald Trump announced the creation of the Department of Government Efficiency to streamline government operations. The acronym “DOGE” is a direct reference to Dogecoin’s ticker.
The new department was supposed to be led by DOGE-enthusiast Elon Musk and American politician Vivek Ramaswamy. However, on Jan. 21 Ramaswamy declared he would be stepping down from the role, leaving Musk and his team to lead the department.
CryptoCurrency
Bitcoin Profit-Taking Drops 93% From December Peak – What’s Next For BTC?
After testing the low $90,000 price level multiple times over the past two months, Bitcoin (BTC) briefly broke out of its tight trading range earlier this week, reaching a new all-time high (ATH) of $108,786. However, a recent report by Glassnode suggests that the sustained consolidation observed in recent months may be nearing its end, with the leading cryptocurrency primed for its next significant move.
Bitcoin Profit-Taking Declines Sharply
According to the latest edition of Glassnode’s ‘The Week On-Chain Report,’ BTC profit-taking volumes have dropped significantly, falling from a peak of $4.5 billion in December to approximately $316.7 million – a sharp decline of 93%.
This drop in profit-taking signals a substantial reduction in sell-side pressure for Bitcoin. Currently, BTC is trading within a tight 60-day price range, a pattern that has often preceded significant market volatility.
Related Reading
When Bitcoin trades in a narrow price range, it either signals the beginning of a bull market rally or the final stages of a bear market capitulation. One key metric highlighted in the report is the Realized Supply Density, which measures Bitcoin’s supply concentration around the current spot price within a 15% range, both up and down.
Currently, approximately 20% of Bitcoin’s supply is within this price band, indicating heightened price sensitivity. Small price movements within this range could significantly impact investor profitability, thereby fueling market volatility.
The report also points to a key metric, CoinDay Destruction (CDD), as further evidence of declining sell-side pressure. During late December and early January, CDD values were notably high, reflecting increased activity by long-term holders. However, the metric has cooled off in recent weeks.
For the uninitiated, CDD measures the economic activity of spent BTC by tracking how long coins were held before being moved. It multiplies the number of coins by the number of days they remained idle, highlighting whether long-term holders are spending their coins.
The recent decline in CDD suggests that many BTC investors who planned to take profits have already done so within the current price range. As a result, the market may enter a new price range to unlock the next wave of supply and liquidity.
Long-Term Investors Return To Accumulation Mode
The report also highlights the Long-Term Holder (LTH) Binary Spending Indicator, a key metric that tracks Bitcoin held by long-term investors. The report notes:
Aligned with the heavy profit-taking volumes from before, we can see a significant decline in the total LTH Supply as the market reached $100k in December. The rate of LTH Supply decline has since stalled out, suggesting a softening of this distribution pressure in recent weeks.
Additionally, LTH inflows to crypto exchanges have fallen sharply, dropping from $526.9 million in December to just $92.3 million. That said, the total LTH BTC supply is showing signs of growth, indicating that long-term investors are returning to accumulation mode.
Related Reading
Meanwhile, retail demand for BTC remains strong. Investors holding less than 10 BTC collectively purchased approximately 25,600 BTC in the past month. In comparison, Bitcoin miners minted only 13,600 BTC during the same period. At press time, BTC trades at $104,207, up 0.5% in the past 24 hours.
Featured image from Unsplash, Charts from Glassnode and TradingView.com
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