Bitcoin continues its decline: further slumps on eToro

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The value of crypto Bitcoin has been declining steadily in recent weeks, with new declines in its performance. However, for reasons that we are going to analyze, at a later date its performance has shown a stabilization. Not surprisingly, the price is around $25,833 on eToro. Let’s see all the details below. 

Volatility and Macro data: analysis of performance for Bitcoin on eToro

As anticipated, Bitcoin has shown a decline week after week, evidencing further contractions in activity. Specifically, at the beginning of the week, the crypto started at above $26,000, but experienced volatility as investors examined macroeconomic data.

However, once most of this data was made public without revealing significant surprises (with the exception of the inflation rate in the United Kingdom), the market trend slowed down. 

At the moment, as anticipated, the price of Bitcoin stands at around $25,833 on eToro. Despite more than 36 percent growth over the past year, Bitcoin’s performance since June has not been particularly exciting.

Ether has also posted more significant losses, down about 2.5 percent. The week began with a value below $1,600 and then remained down throughout the week, stabilizing now around $1,560.

In other words, with few major macroeconomic updates this week, the market seems devoid of elements capable of generating significant movement, barring any unexpected events. 

Currently, market participants are waiting for clear signals to determine the future direction, while the market has appeared rather stable for some time.

Halving Bitcoin: the process at 85% and implications for the market

Bitcoin halving is now completed at 85%, an important step in the halving cycle. Based on the current pace, halving is expected to reach mid-2024. Recall that the last halving took place in May 2020.

As we know, halving is a process built into Bitcoin in which the reward for mining is halved after a certain number of blocks mined. Currently, the blockchain rewards 6.25 bitcoin per successfully mined block, but this figure will drop to 3.125 next year.

Like any process, halving brings with it several implications. First, the diminishing reward for mining forces miners to improve the efficiency of their processes, pushing toward greater use of renewable energy to reduce energy costs.

In addition, halving leads to a reduction in the supply of new tokens, which could promote greater scarcity. Although Bitcoin’s price may not change immediately, it is undeniable that halving has a significant influence on market dynamics.

Ethereum commissions at 2023 low: what does it mean for the blockchain?

Commissions on the Ethereum network, the Ether blockchain, recently reached their lowest level since 2023. Each transaction now requires about $1.15, a significant drop from the high transaction costs observed in 2021 and 2022.

These lower fees can be interpreted as a sign of difficulties in the market and low transaction volumes, but at the same time they are a potentially positive indicator for the future of the ecosystem. 

Indeed, lower fees make transactions more convenient for developers and users, creating a potential incentive for increased activity and adoption.

This phenomenon is part of the economic dynamics of blockchain, as such price signals can influence demand. Although lower fees may indicate a slowdown in activity, they also suggest that increased engagement may be on the way.

In addition, we point out that Google’s cloud computing company, Google Cloud, recently expanded its BigQuery program to include 11 new blockchain networks. This move significantly expands Google’s scope in blockchain and includes projects such as Polygon and Polkadot, alongside Bitcoin, Ethereum, and Dogecoin.

BigQuery serves as a repository of blockchain data, allowing programmers and developers to access a vast amount of blockchain information that is publicly available but often complex to analyze in detail individually.

Google’s commitment to blockchain is notable as it seeks to provide services to Web3 and other cryptographic projects that may not be immediately obvious or suitable for consumers. 

Despite recent market volatility, this expansion demonstrates the continued interest of a major player in the blockchain industry.