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Main Street sows seeds of doubt for gold gains but Wall Street believes conflict will continue to propel prices

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Main Street sows seeds of doubt for gold gains, but Wall Street believes conflict will continue to propel prices

Gold prices followed a now-familiar pattern this week, trading in an elevated range until geopolitics shocked the market to highs, followed by retracement to a higher floor.

Spot gold opened the week trading at $2,367 per ounce, and other than a short-lived sharp drop to the weekly low of $2,332 a half-hour after the North American open on Monday morning, the yellow metal seemed content to oscillate between $2,360 and $2,390 per ounce.

Then, a week after Iran’s drone and missile attack on Israel sent spot prices to an all-time high above $2,426 per ounce came Israel’s response, which once again pushed gold back above $2,400 late Thursday evening. The market returned to its prior range, however, once it became clear that like Iran’s attack, this one was more demonstrative than destructive.

The latest Kitco News Weekly Gold Survey showed both Wall Street and Main Street still betting on bullion to make further gains despite its rapid runup and lack of retracement.

“I am bullish for the coming week,” said Colin Cieszynski, Chief Market Strategist at SIA Wealth Management. “At this point, macro risks remain high with so many political situations volatile at the moment. As we saw overnight, I would not take much to spark a rally in gold.”

Adrian Day, President of Adrian Day Asset Management, sees gold trading sideways next week. “Gold’s strength in the face of central banks deferring rate cuts is remarkable, but it is due for a short pause,” he said. “I do not expect a deep or long pullback, but at least a pause for a few days.”

Dennis Gartman, creator of the Gartman Letter, counts himself among the gold bulls for next week. “I wouldn't be surprised if gold took out its recent all-time highs in the next week or so,” he said. “Then it’s off to the races again.”

Daniel Pavilonis, Senior Commodities Broker at RJO Futures, said geopolitical conflict will continue to push gold prices higher even if there’s no immediate escalation.

“There's still a lot of geopolitical uncertainties, if [the Israel strike] is it, if everything is ended, or if there's going to be more behind this,” he said.

“I think that's one of the reasons why gold is still bid, I think that's probably the main reason,” Pavilonis added. “Next week, I would expect us to be at elevated levels, I would say probably higher. It's flight to safety right now, and I think gold is obviously a place where you want to be. I would imagine we continue to the upside.”

Pavilonis reiterated that the Israel-Iran conflict will be the driving force for gold and other markets in the near term. “I think everything is just Middle East right now,” he said. “This is either going to just fall to the wayside and not be cared about anymore, or this is going to be one of those things where it draws more countries in and gold really starts to take off.”

“That's really what's taking center stage right now.”

This week, 14 Wall Street analysts participated in the Kitco News Gold Survey, and while there was a noticeable shift to the sideways camp from last week, even fewer saw declining prices. Ten experts, or 71%, expected to see gold prices climb even higher next week, while three analysts, representing 21%, saw gold holding steady. Only one analyst, or 7% of those surveyed, predicted a price drop.

Meanwhile, 149 votes were cast in Kitco’s online poll, with Main Street investors showing some nervousness about the precious metal’s prospects at these elevated levels. 95 retail traders, representing 64%, looked for gold to rise next week. Another 29, or 19%, predicted it would be lower, while 25 respondents, or 17%, expect the precious metal to trend sideways in the week ahead.

With geopolitical risk sucking up all the oxygen in markets of late, it’s just as well that next week is another relatively light one for economic data. Still, traders will tear their eyes away from the news headlines to check New Home Sales for March on Tuesday, Durable Goods for March on Wednesday, Pending Home Sales, Jobless Claims and Advance Q1 GDP (including quarterly PCE) on Thursday, and March PCE and University of Michigan Consumer Sentiment on Friday.

Darin Newsom, Senior Market Analyst at Barchart.com, said gold is overdue for a pullback, but he still doesn’t see one coming.

“The market is overbought, and probably needs a selloff to release some of the pressure that could be building,” Newsom said. “But the trend remains up, and with geopolitical tensions expected to continue increasing from now through the US Presidential Election this coming November, gold will likely continue to find investment safe haven buying.”

James Stanley, senior market strategist at Forex.com, also sees the yellow metal continuing its climb.

“The $2400 level has stalled the move for now, but with two instances of failed breakout there, bulls have had an open door to take profit from the breakout – yet support still keeps getting bought,” he noted. “I’m not sure if this is accumulation from a bigger player or whether it’s just rate expectations around FOMC, but the fact that the move has continued to draw bulls in at support makes me think that Gold’s bullish trend isn’t over yet.”

Everett Millman, Chief Market Analyst at Gainesville Coins, said the Middle East conflict has taken charge of the gold market, and in the absence of major economic news events, it’s likely to stay that way for some time.

“I think the obvious catalyst for gold remaining this high after that selloff we saw last Friday, it's absolutely tied to the escalation between Iran and Israel in the Middle East,” Millman said. “We have this lull period until we get to the June FOMC meeting to get a clearer idea of if the Fed is actually going to stick to its guns and be more hawkish. So that goes on the back burner, the whole rates conversation, and even how the economy is doing, until we get a significant de-escalation.”

Millman said that he’s thankful it’s not World War III, but it's still a lot worse than it was only a week or two ago. “I think that geopolitical premium is absolutely keeping gold afloat right now near the all-time highs,” he said. “Any time I see gold and the dollar rising at the same time, that is usually a pretty strong indication that markets are being mainly driven by a flight to safety or a flight to quality, and I don't see any other strong reasons for them to do that, except for fears over a larger conflict in the Middle East, or even just an escalation between Iran and Israel.”

“I think that could be very short-lived,” he added “We could see gold sell off again if we do get a de-escalation. But right now, I think that's the main thing that I'd be looking at.”

Millman said that he expects the gold market to remain fairly volatile next week. “That being the case, I think that the price range that traders and investors should be looking at has to widen a little bit,” he said. “It would still be shocking if gold moves, let's say, another $200 an ounce next week, but I think $100 in either direction, $2,500 on the high end, and back down to maybe $2,250 or $2,200, I don't think those are outside the realm of possibility.”

Mark Leibovit, publisher of the VR Metals/Resource Letter, said he remains bullish in the short and medium term, and sees even bigger gains for silver. “Still targeting Gold for $2700-2800,” he said. “Silver is the big catchup play. $30 then $50.”

And Kitco Senior Analyst Jim Wyckoff still sees potential gains for gold prices next week. “Steady-higher as geopolitics still in play and charts are still bullish,” he said.

Spot gold last traded at $2,392.07 per ounce at the time of writing, up 0.55% on the day and 2.04% on the week.

Kitco Media

Ernest Hoffman

Time to Buy Gold and Silver

 

Tim Moseley

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Solana SOL Flips Final Resistance Into Support

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Solana (SOL) Flips Final Resistance Into Support; $250 In View

By Olivia Brooke – April 19, 2024

Prominent crypto analyst Jelle has drawn the cryptocurrency market’s attention to a recent development, particularly Solana’s (SOL) remarkable performance.

Renowned for its rapid transaction speeds and minimal fees, SOL has garnered attention for its upward trajectory, aiming to create a new all-time high.

Jelle’s latest analysis, supported by a comprehensive chart, reveals that Solana has effectively transformed its previous significant resistance level into a support level.

As expected, this critical shift indicates bullish sentiment surrounding the asset, accompanied by a Greed score 82. This development signals a potential upward trend for SOL, with Jelle projecting a trajectory toward surpassing the $250 mark in the summer months.

Solana’s Impressive Performance: Heading Towards New All-Time Highs

A recent chart shared by Jelle X’s account showcases Solana’s robust upward trajectory, signalling a significant rebound and sustained positive momentum. Solana experienced a period of consolidation and bearish trends. Nonetheless, the recent breakout indicates a shift in potential investor sentiment and market dynamics.

Over the last trading session, SOL traded around $145, signalling a 4.31% increase in the last 24 hours. This surge propels the market cap up by 3.23% to $64.7 billion. Similarly, Solana’s 24-hour volume has printed a 14.70% gain, surging to $5.8 billion.

Over the past year, Solana’s price has surged by 841%, reflecting a sustained upward trend. SOL trades 314.14% above its 200-day Simple Moving Average (SMA) of $47.08. Additionally, Solana’s trading data mirrors this northbound movement, with the daily close price surpassing the daily open price in 19 of the last 30 days. These trading days ended with green candle sticks, accounting for 63% of the observed period. In addition, Solana’s liquidity is high, represented by a 24-hour volume-to-market cap ratio of 0.1014.

Meanwhile, the Solana ecosystem’s rapid growth has resulted in liquidity flowing from SOL’s ecosystem to Coinbase Layer 2 (L2). According to a crypto analyst Rasgard, this influx suggests potential exponential growth for projects within the BASE ecosystem, with projections ranging from 10x to 100x shortly.

In light of this, market analysts and investors closely monitor Solana’s performance, recognizing its resilience and growing adoption.

The recent transition from resistance to support represents a technical milestone and solidifies Solana’s position as a notable project in the cryptocurrency space.

Furthermore, this transition signifies a noteworthy milestone for Solana, suggesting sustained momentum and investor confidence in its prospects. As SOL continues its ascent, investors may find reassurance in this strategic pivot, which could further solidify its position within the crypto market.

DISCLAIMER The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Olivia Brooke and posted on Zycrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

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Gold shines amid geopolitical tensions and economic uncertainty

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Gold shines amid geopolitical tensions and economic uncertainty

Gold, the precious metal long revered as a safe-haven asset, experienced a respectable price increase on Friday, fueled by a confluence of geopolitical tensions and economic uncertainties. As of 5:25 PM EDT, gold futures based on the most active June 2024 contract settled at $2,413.80, after factoring gains of $15.80, or 0.66%. Similarly, spot gold rose to $2,391.77, up $13.01, or 0.55%, reflecting the metal's allure in times of turmoil.

One of the primary catalysts for gold's ascent was the heightened concern over a potential escalation between Israel and Iran. Reports emerged earlier in the day that Israel had launched missile strikes on Iran, immediately fueling fears of a broader conflict in the Middle East. This development sent shockwaves through the markets, prompting investors to seek refuge in the safe-haven properties of gold.

However, as the day progressed, the magnitude of the Israeli attack was clarified, with sources indicating that it was a limited-scale operation targeting Iranian facilities, leaving the country's nuclearinstallations unscathed. Additionally, Iranian officials stated that there were no plans to retaliate against Israel for the incident, easing some of the initial tensions.

Despite the de-escalation of the Middle East conflict, gold's upward trajectory remained intact, supported by a confluence of other factors. The U.S. dollar's weakness played a minor role, with the dollar index closing down 0.02% at 105.96, making gold more affordable for holders of other currencies.

On the economic front, investors were faced with a mixed bag of data and signals. Strong economic indicators, including robust retail sales, an encouraging Philadelphia manufacturing PMI, and hawkish statements from Federal Reserve officials, suggested a resilient U.S. economy. This, in turn, fueled speculation that the central bank might maintain its current restrictive monetary policy, keeping benchmark interest rates between 5.25% and 5.5% to combat persistent inflation.

The combination of geopolitical uncertainties and economic ambiguities contributed to a selloff in U.S. equities, with the NASDAQ Composite declining by 2%, the S&P 500 dropping 0.9%, and the Dow Jones Industrial Average shedding 0.6%.

Market participants eagerly await the release of the Personal Consumption Expenditures (PCE) data next Friday, which will provide crucial insights into the most recent inflationary trends and potentially influence the Federal Reserve's future policy decisions.

As the global economic landscape continues to evolve and geopolitical tensions ebb and flow, gold's allure as a safe haven remains steadfast, attracting investors seeking stability amidst uncertainty.

Gary S. Wagner

Time to Buy Gold and Silver

 

 

Tim Moseley

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Bitcoin Slacks Ahead of Halving

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Bitcoin slacks ahead of halving, but analysts want you to pay attention to this historical data

By Olivia Brooke – April 19, 2024

The first quarter saw Bitcoin shake off losses from the previous year while increasing its price value significantly. Bitcoin’s price has taken a nosedive in the past weeks, resulting in a retest of previous daily lows.

While sentiments are mixed now, market players point to bullish data unfolding on the technical chart.

According to the pseudonymous cryptocurrency analyst CryptoJelleNL, the technical indicators display a bullish pattern spotted on the daily chart. The signal highlights Bitcoin’s current position, hinting that the asset could increase its price value by more than $14,000 of its current value.

“Bitcoin has locked in a hidden bullish divergence on the daily chart! This divergence often shows up during pullbacks, during a strong bullish trend – signalling the next leg higher.

Bring on $82,000.” The analyst wrote.

Market players maintain a bullish outlook ahead of April’s Bitcoin halving

As the market prepares for the upcoming Bitcoin halving scheduled to take place this April, onlookers are not putting off the possibility of Bitcoin experiencing volatility despite the upsides accompanying the Bitcoin halving.

Analyst CryptoJelleNL maintains a positive outlook regarding the halving. He cites historical data, explaining that halving events has typically benefited Bitcoin’s price.

“Historically, the Bitcoin halving event leads to a massive rally — but not before a period of choppy price action, designed to shake people out. Don’t fall for it. The best is yet to come.” He asserted.

Similarly, research analysts from Kaiko wrote the following in a note: “While the short-term price impact of the halving has been mixed in the past, BTC tends to increase in the nine to 12 months post-halving”.

At the time of this report, Bitcoin was trading at $64,521. Despite its reversal below its all-time high of $73,750, Bitcoin’s performance this year has largely been commendable. With YTD gains going up to 60%, Bitcoin has not only successfully set a new all-time high this year, but analysts are convinced that Bitcoin could hit $100,000 for the first time since its launch.

On the flip side, the altcoin market is trading in the red zone, as altcoins collectively trade at a loss. Altcoins have shed off around 20% to 35% of weekly gains against BTC and USD. The current data strengthens bearish sentiments, signalling that a bearish storm might be brewing.

DISCLAIMER The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Olivia Brooke and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

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Gold Surges Despite Economic Strength and Hawkish Fed

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Gold Surges Despite Economic Strength and Hawkish Fed

As of 5:30 PM EDT, gold futures for the most active April 2024 contract were fixed at $2,394.40, up $17.80 or 0.75%.

Spot gold also rallied, currently trading at $2,378.76 after gaining $17.69 or 0.75% on the day.

The precious metal managed to overcome headwinds from a stronger U.S. dollar, which gained 0.21% to push the dollar index to 105.99.

The recent upswing in gold prices, including today's moderately higher settlement, can be partially attributed to the safe-haven appeal of the yellow metal. Persistent geopolitical tensions in the Middle East are at the forefront of investors' minds, adding to bullish market sentiment. Despite robust U.S. economic data that reduces prospects of near-term interest rate cuts, gold is finding support.

The escalating conflict between Iran and Israel is a key driver of haven demand. Israel has warned it will retaliate against a barrage of attacks by Iran, rebuffing calls for restraint from the U.S. and other Western nations. On Saturday, Iran unsuccessfully launched over 300 drones and missiles into Israel in a massive strike, in retaliation for an alleged Israeli attack on an Iranian embassy in Syria. Without assistance from a coalition including the U.S, Britain, France and Jordan, the damage could have been devastating.

Another major bullish factor is continued central bank buying as central banks globally add to their gold reserves, viewing the metal as a prudent safe-haven asset.

Gold's gains are occurring despite data showing weekly U.S. jobless claims remained at low levels last week, indicating a tight labor market. Strong economic figures and hawkish Fed rhetoric have prompted investors to dramatically rethink chances of near-term rate cuts.

According to the CME's FedWatch tool, there is a zero chance of a rate cut in May, and a 1.7% chance of a rate hike. Furthermore, the is only a 18.9%% implied probability of a rate cut, and a 1.4% chance that the Fed will hike rates at the June FOMC meeting.

Fed Chair Jerome Powell said at an event in Washington that "recent data have clearly not given us greater confidence" on inflation, suggesting rates may need to remain elevated for longer. He noted that higher inflation "may necessitate maintaining current interest rate levels for an extended period."

While the economic backdrop seems unfavorable, gold continues drawing safe-haven bids amid heightened geopolitical risks and central bank buying. For now, those factors are overshadowing tighter Fed policy expectations.

Gary S. Wagner

Time to Buy Gold and Silver

Tim Moseley

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Gold pauses as marketplace remains pensive

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Gold pauses as marketplace remains pensive

Gold prices are modestly lower and have traded both sides of unchanged, while silver prices are higher in U.S. trading Wednesday. Both markets are in a pause mode as tentative traders and investors ponder the next

development in the volatile Middle East. June gold was last down $6.50 at

$2,401.70. May silver was last up $0.249 at $28.635.

The heightened geopolitical tensions in the Middle East—namely the Iran#Israel hostilities—have taken center stage in the general marketplace. Traders and investors have temporarily pushed supply and demand and economic fundamentals to the back burner and are keenly focused on the next shoe to drop in the Israel-Iran military confrontation. Such is evidenced by gold and silver markets rallying on safe-haven buying recently, despite normally bearish fundamentals at present that include rising U.S. Treasury yields, a rallying U.S. dollar index and a hawkish#leaning Federal Reserve.

Federal Reserve Chairman Jerome Powell in remarks on Tuesday afternoon cast a hawkish tone on U.S. monetary policy. He said U.S. inflation persists, calling into question whether the Fed can cut interest rates this year. He suggested interest rates may have to remain higher for longer, to get inflation back down to a level where the Fed feels more comfortable. U.S. Treasury yields rose to five-month highs after Powell’s comments. Powell’s hawkish lean is a bearish element for the precious metals markets. However, at present, heightened geopolitics are trumping economic fundamentals.

In other news, broker SP Angel reported overnight that metals analysts say central banks are buying around 25% of annual gold production–the highest level since the early 1970s when the Bretton Woods accord unraveled.

The key outside markets today see the U.S. dollar index slightly lower on a corrective pullback after hitting a 5.5-month high on Tuesday. Nymex crude oil prices are weaker and trading around $84.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around

4.6%.

Technically, June gold futures bulls have the strong overall near-term

technical advantage. A two-month-old uptrend is in place on the daily bar

chart. Bulls’ next upside price objective is to produce a close above

solid resistance at $2,500.00. Bears' next near-term downside price

objective is pushing futures prices below solid technical support at

$2,300.00. First resistance is seen at $2,425.00 and then at the contract

high of $2,448.80. First support is seen at today’s low of $2,389.00 and

then at Tuesday’s low of $2,379.20. Wyckoff's Market Rating: 9.0

May silver futures bulls have the strong overall near-term technical advantage. A two-month-old price uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $30.00. The next downside price objective for the bears is closing prices below solid support at $26.00. First resistance is seen at this week’s high of $29.10 and then at $29.50. Next support is seen at $28.00 and then at this week’s low of $27.665. Wyckoff's Market Rating: 8.5.

May N.Y. copper closed up 670 points at 437.05 cents today. Prices closed nearer the session high. The copper bulls have the solid overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 450.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 415.00 cents. First resistance is seen at this week’s high of 439.65 cents and then at 445.00 cents. First support is seen at this week’s low of 427.05 cents and then at 420.00 cents. Wyckoff's Market Rating: 8.0.

Kitco Media

Jim Wyckoff

 

Tim Moseley

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Fears Of An Impending Massive Crypto Market Dip

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“We Sold Everything,” Research Firm Reveals Amid Fears Of An Impending Massive Crypto Market Dip

By Newton Gitonga – April 16, 2024

Popular crypto research firm 10X Research has liquidated all its crypto holdings, fearing a deep price correction amid ongoing market volatility.

This development was brought to light by the firm’s founder, Markus Thielen, in a Monday blog post raising concerns over fears of an imminent market downturn driven by inflationary pressures and rising Treasury yields.

“We sold everything last night,” Thielen wrote, adding, “Our growing concern is that risk assets (stocks and crypto) are teetering on the edge of a significant price correction.”

Thielen outlined the rationale behind the decision, citing the bond market’s projection of fewer than three rate cuts and the 10-year Treasury yields surging past 4.50% as key indicators signalling a potential price correction for risk assets.

The analyst further noted that much of the crypto rally in 2023 and 2024 has been driven by expectations of a US rate cut, but that scenario is now “seriously questioned.” He also pointed out that miners’ slowdown in Bitcoin ETF inflows and the potential sale of $5 billion worth of Bitcoin could negatively affect the market for several months.

The pundit’s disclosure has elicited mixed reactions, with some in the crypto community calling out the firm for its seemingly contradictory statements. Notably, just last week, the firm noted that Bitcoin could soon rally to new record highs of $80,000 after breaking out of a triangular consolidation.

“You change your mind every two seconds. In the last eight days you’ve called for BTC 80,000, said it will be choppy for months, and now sold everything. that’s retail style day trading.” One critic stated.

Thielen clarified its stance in response, asserting a consistently cautious approach since March 8. As per the analyst, when the triangular breakout faltered, they implemented a stop-loss strategy at $68,300, aligning with their risk-reward trading ethos distinct from venture capital methodologies.

“This is simply risk-reward trading. We are traders, and not VC guys… different approach…,” he added.

Thielen’s disclosure comes amidst growing market uncertainty, especially with the Bitcoin halving on the horizon. Notably, Bitcoin has been experiencing a downward trend for the past two weeks, shedding just over 10% in the last seven days alone. And while the price remains above a critical support range between $61,000 and $62,000, some experts suggest the possibility of further correction, potentially dipping below $60,000 before a post-halving rebound.

Crypto analyst Ali Martinez highlighted $61,000 as the pivotal support level and $72,400 as the critical resistance level for Bitcoin. Martinez further suggested that Bitcoin could retreat to $56,200 or $51,600 if it breaches support. Conversely, breaking past resistance could lead to price targets of $79,000 and $86,000.

DISCLAIMER The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Brenda Ngari and posted on Zycrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

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From Financial To Physical The Next Big Thing In Crypto – DePIN

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From Financial To Physical. The Next Big Thing In Crypto – DePIN

Recently, there has been significant interest in decentralized physical infrastructure, also known as DePIN, within the crypto space. People are curious about the potential of this niche and which specific projects within it are worth noting. The latest detailed study, titled State of DePIN 2023 by Messari, aims to provide insights into these questions. This summary will highlight key findings from the report and discuss their potential impact on the cryptocurrency market.

What Is DePIN? 

The report commences with a concise delineation of DePIN, an acronym for decentralized physical infrastructure. It encompasses a cluster of ventures that employ cryptocurrency-based incentives to foster a range of physical infrastructure. These initiatives span from decentralized Wi-Fi systems, decentralized computing clouds, decentralized cloud storage solutions, and decentralized mobile networks to other similar endeavors. A salient feature that sets most DePIN projects apart, in addition to their crypto-based incentives, is the accessibility for individuals to contribute, provided they possess the requisite hardware.


Source: The Messari Report.pdf

The report highlights that DePIN solutions have the advantage of being more efficient, resilient, and high-performing than their centralized counterparts. Additionally, DePIN projects can rapidly innovate and evolve due to community participation, which gives them a unique edge over centralized projects. This efficiency and resilience not only make them attractive to investors but also instill confidence in their long-term viability.


Source: The Messari Report.pdf

The authors posit that DePIN initiatives possess a self-reinforcing mechanism known as a flywheel, whereby their growth and influence fuel further adoption and expansion. As these projects gain traction and popularity among users and service providers, they become even more potent and widespread, creating a positive feedback loop. The authors project that DePIN will substantially impact the global economy, with the potential to augment GDP by a staggering $10 trillion over the next decade. This ambitious projection underscores the transformative potential of these projects.


Source: The Messari Report.pdf

The authors go on to list the industries in which DePIN is currently causing significant changes. These industries encompass various areas such as digital maps in the crypto sector, energy grid management, home internet services, food delivery platforms, ride-sharing services, and, surprisingly, even pet and livestock-related projects. It should be noted that these endeavors are still in their initial phases.

The authors have categorized crypto projects in the DePIN niche into six categories: compute, wireless, energy, AI, services, and sensors. According to their analysis, there are over 650 cryptos across these categories, with a combined market capitalization of over $20 billion.

 
Source: The Messari Report.pdf

The DePIN projects have garnered significant interest from venture capitalists, resulting in substantial capital being invested. To put it in perspective, the top ten DePIN projects alone have collectively secured a significant amount of funding. It's worth noting that many of these projects continue to attract investments even after their initial coin offerings (ICOs) and the launch of their main networks.

It is uncommon for a crypto project to secure substantial funding after its ICO. However, when this does happen, it indicates that investors have tremendous confidence in the project's potential. The DePIN niche has attracted significant post-ICO funding, with numerous projects raising substantial amounts. The top ten DePIN crypto projects in terms of funding raised include Filecoin and Helium, each securing $250 million, RNDR Network with $100 million, Fetch AI with $75 million, Livepeer with $50 million, Really with $35 million, Hivemapper with $25 million, Andrena with $25 million, Braintrust with $25 million, and DIMO with $20 million.

DePIN Blockchains

Intriguingly, most of the nearly thousand crypto projects operating within the DePIN space are opting to deploy on a select few cryptocurrency blockchains. This observation encompasses both layer one and layer two blockchains, with Solana emerging as the most favored layer one choice among DePIN projects.

The authors cite the high speed, affordability, and use of the Rust programming language as reasons for this. Among layer two solutions, Caldera and Eclipse are favored for DePIN projects. These platforms offer flexibility, enabling DePIN projects to blend Ethereum's security with Solana's performance, as seen in the case of Eclipse.

In addition to layer one blockchains that prioritize DePIN, the authors highlight some notable examples. Iotex is one such example, which was already utilized by the US military for health monitoring trials in November 2021. Peaq, on the other hand, is still in the pre-launch phase, but it has already generated significant interest and excitement within the community.

The importance of DePIN adoption cannot be overstated, as it will have a profound impact on both layer one and layer two. The success of DePIN chains and projects hinges on the demand side of the equation, which is carefully examined in the second part of the report.

Unlike many other cryptocurrencies, the authors emphasize that DePIN revenues are fueled by utility rather than speculation. They highlight that participants in DePIN projects typically need to purchase and lock or burn their associated tokens in return for access to the decentralized service or product being provided. This characteristic aligns DePIN projects with traditional crypto coins, which are utilized for various purposes, such as payment of fees and staking.

According to the authors, DePIN projects consistently yield an estimated $15 million in yearly on-chain revenue throughout the bear market. Given the large number of DePIN projects, this amount may seem insignificant. The authors, however, need to offer a clear answer to which DePIN projects are the most profitable, leaving it open to speculation.

However, it is worth mentioning that Livepeer has developed a dashboard named the Web 3 Index, which monitors the earnings of major DePIN projects. Decentralized storage and computing are generating the highest revenue.


Source: The Messari Report.pdf

The authors highlight the evolution of DePIN projects, with many expanding their offerings to become comprehensive platforms providing a variety of decentralized products and services. They cite Filecoin, Helium, RNDR Network, and Bittensor as five notable examples of such platforms, demonstrating the diversification of DePIN projects beyond their initial scope.

DePIN Categories

Compute
In the next section, the authors divide the Compute category into its previously discussed main elements: Storage, Compute, and Retrieval. They mention that specific DePIN projects within the compute category, such as Filecoin and Akash Network, provide a “full stack experience.” 


Source: The Messari Report.pdf

In terms of Storage, it's suggested that DePIN could gain widespread acceptance by utilizing decentralized data storage. While other cryptocurrency projects and protocols have primarily adopted this technology, it's promising to see increased decentralization across the crypto space. This article provides an opportunity to delve deeper into the meaning of decentralization.

The authors highlight that Compute faces the opposite issue compared to storage. While there is an abundance of decentralized data storage but insufficient demand for it, the supply of decentralized computing power is lacking. Yet, there is a surplus of demand for it.

The authors note that decentralizing Retrieval poses a significant challenge, especially in maintaining competitiveness. This is primarily due to the fact that Cloudflare, a centralized retrieval protocol, currently serves 20% of all regular websites at no cost, making it challenging to monetize alternative solutions.

Wireless
This relates to the next DePIN category the authors detailed earlier: Wireless. The growth of the total addressable market for decentralized wireless services has been exponential, and it's no surprise why. The demand for decentralized wireless services is rising as the world becomes increasingly interconnected. This category of DePIN has even earned its own name – DeWi, short for decentralized wireless – highlighting its significance in the industry.

The authors also divide this category into three parts: mobile, fixed internet, and Wi-Fi. Helium, in particular, is gaining significant attention due to its rapid expansion and popularity. As an illustration, Helium has collaborated with T-Mobile to offer affordable mobile plans across the US.


Source: The Messari Report.pdf

Data Sales
The authors decided to examine a new category not initially included in their list but gaining significant interest: Data sales. They point out the importance of data in a world that is becoming more digital. 

That is why they are optimistic about DePIN initiatives such as Hivemapper, which motivates individuals to map their local surroundings, similar to Google Maps but without a central authority. They also highlight other specialized DePIN projects, such as one that monitors noise pollution in a community-driven manner.

This relates to another category detailed earlier: Services. According to their perspective, they classify services into two types: horizontal services, like decentralized marketplaces for freelance work, and vertical services, such as decentralized ride-sharing systems.

The conversation shifts to the emerging DePIN category of  Vertical Ads, but surprisingly, they don't offer much insight into it. Notably, they fail to mention the Brave browser in this context. The situation is similar regarding energy-related DePIN initiatives, as they are also in the early stages of development.

DePIN Growth, Potential 

The report now shifts its attention to the supply side of the equation, specifically examining the remarkable growth and potential of DePIN nodes. The authors begin by presenting an interesting fact: The number of DePIN nodes continues to grow and has now surpassed 600,000. The graph below illustrates that the Wi-Fi map nodes are the most numerous, with more than 200,000 nodes being a part of the DePIN project.


Source: The Messari Report.pdf

The authors note a rapid increase in the quantity of DePIN nodes. This growth is attributed to DePIN initiatives addressing scalability challenges related to the expansion of physical infrastructure. Consequently, DePIN offerings are becoming more affordable and of higher quality. It is worth noting that the development of this physical infrastructure is being encouraged through the distribution of crypto incentives, particularly tokens awarded to individuals contributing to such infrastructure.

The tokenomics of these tokens are integral to the supply-side equation, and the authors recognize three distinct strategies. First, supply-based tokenomics encourages growth. Second, demand-based tokenomics promotes efficiency. Lastly, a combination of supply- and demand-based tokenomics strikes a balance between development and efficiency.

The advantages and disadvantages of the three methods are outlined in the image below. The authors also observe that certain strategies have been more effective for specific DePIN projects. For example, they note that projects that require a lot of hardware benefit the most from supply-based tokenomics, as it essentially rewards contributors with a large number of tokens. On the other hand, DePIN projects that are primarily software-based can expand by offering points that may eventually be converted into tokens.


Source: The Messari Report.pdf

In assessing the value of various DePIN projects, the authors recommend focusing on both the market cap and the fully diluted valuation. Their rationale is that DePIN projects often involve significant investments from venture capitalists, which can influence price movements. 

Essentially, the authors suggest that the demand for specific DePIN offerings may be tempered by the influx of tokens from initial project backers. They imply that lower-quality DePIN projects may encounter challenges and predict that many early investors will opt to sell once their portfolios have appreciated five to tenfold.

Before making any investment decisions, it's crucial to thoroughly investigate cryptocurrencies, especially those in emerging sectors like DePIN. While some experts recommend investing in blockchains that support DePIN projects to mitigate risk, this approach may not yield returns as substantial as identifying and investing in promising DePIN projects early on, with their potential for 100x growth.


Source: The Messari Report.pdf

DePIN 2024 Forecast 

The section of Messari's DePIN report that garnered the most excitement is the predictions for DePIN in 2024. According to the authors, the first theme you need to watch out for is the intersection of DePIN and AI, which is expected to play a crucial role in DePIN's development. DePIN AI has the potential to surpass centralized AI in terms of capabilities and effectiveness within the next one to two years.

The second important topic is the intersection between DePIN and meme coins. While the idea may seem odd, the authors acknowledge this and use the Solana phone Bonk airdrop as an example to show how these two can be paired. This also hints at a future where physical infrastructure is encouraged through the use of meme coins.

The third important aspect to be mindful of is the intersection of DePIN with zero-knowledge technology. By leveraging advanced zero-knowledge technology, DePIN could carry out a form of cyber attack known as a vampire attack on Web 2, which involves taking control of users' content and activity.

The fourth theme to watch is similar to the third but focuses on the intersection between DePIN and gaming. Think of it as GameFi on steroids, where the cryptocurrency elements of gaming are integrated with cutting-edge gaming technology, such as VR headsets, to create a more immersive and interactive experience.

The fifth theme to be mindful of is the intersection between DePIN and privacy, with a particular focus on decentralized virtual private networks (VPNs) as a critical intersection area.

The authors highlight a curious trend in DePIN: The intersection between DePIN and Asia, referring to the continent, is expected to yield unexpected results. They foresee multiple top 10 DePIN projects emerging from this region, with most still in the nascent stages of development.

What It Means For Crypto

The DePIN report's findings have significant implications for the cryptocurrency market. In essence, they suggest that the most successful cryptocurrency narratives and niches during the current bull market will be those that are not financially focused. A previous article on crypto narratives supports this and is reinforced by the fact that some DePIN projects have already acknowledged this trend.

Several crypto initiatives acknowledge that applications related to finance will face increased scrutiny. In contrast, DePIN presents a significantly lower likelihood of antagonizing regulators, and its credibility is evident. The increasing presence of DePIN projects on global app stores and their partnerships with established companies and brands demonstrate that it operates within a safer realm, particularly in regulatory compliance.

Given its immense potential and the nascent stage of most DePIN projects, the DePIN niche is expected to be highly unpredictable from an investment standpoint. While some tokens may experience astronomical growth, others will likely plummet in value or become worthless. Despite the risks, the long-term outlook for DePIN indicates that it will have a lasting impact on the cryptocurrency landscape, contributing to increased adoption and mainstream acceptance.

Previously, the main factors driving cryptocurrency demand were primarily based on speculation. However, real-world adoption may occur with the rise of DePin and other non-financial sectors. This shift could make everyday individuals feel more at ease using and putting money into cryptocurrency, consequently boosting further adoption and investment. Advocates believe that the ultimate goal of cryptocurrency is to decentralize all aspects of life. If that is the desired outcome, we are on the right path.

The reaction of centralized equivalents to the decentralized alternatives of popular products and services is a topic of much speculation. Some anticipate a similar response to DeFi and other disruptors of the traditional financial system, characterized by intense regulatory opposition, mainstream media-fueled FUD, and attempts to suppress their growth. However, DePIN networks have an inherent advantage that will make them more resistant to suppression, as they are generally more decentralized than most cryptocurrencies. This resilience will demonstrate the staying power of crypto.

This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

 


 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech.  I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

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Pundit Declares Bitcoin’s Trillion-Dollar Crown Is Here To Stay Amid Deepening Market Rout

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Pundit Declares Bitcoin’s Trillion-Dollar Crown Is Here To Stay Amid Deepening Market Rout

By Brenda Ngari – April 16, 2024

The price of Bitcoin tumbled below $63,000 during Tuesday’s market bloodbath as momentum slowed in the run-up to the network’s much-awaited miners’ rewards halving event.

With the halving now only three days away, BTC plummeted to a low of $61,714 today amid geopolitical instability in the Middle East. The flagship crypto endured a 3.9% decline over the last 24 hours to trade for $62,851 at press time. Bitcoin’s market cap stood at $1.2 trillion at publication.

All of the top 20 crypto assets by market value, excluding stablecoins, have also taken a nosedive, with the likes of Solana (SOL), Telegram-linked Toncoin (TON), and Avalanche (AVAX) slipping by double digits in the past day.

CoinGlass data shows that over the past 24 hours, some $253 million of long positions—traders who bet that prices would rise—were wiped out across the entire crypto market. Of this total, Bitcoin accounts for roughly $81.70 million in longs liquidated during that period.

Willy Woo’s Perspective On Bitcoin’s Future

Statistician Willy Woo suggested that BTC’s latest drawdown towards the $60,000 mark flushed out leveraged longs.

Woo told his 1.1 million followers on the X platform that he doesn’t expect Bitcoin to slump in a straight line as he’s convinced BTC bulls will defend the “formidable” short-term holder (STH) at $59,000. In the expert’s opinion, there is a high chance that the crypto will rebound strongly and liquidate traders who shorted at around $70K-$75K.

The Bitcoin analyst also pointed out that the ongoing consolidation around the current record highs will strengthen the support level for the alpha crypto. Woo indicates that the accumulation between the $60,000 and $70,000 range is forming a base of buyers that will secure BTC’s status as a trillion-dollar asset.

“Remember: the longer BTC consolidates around ATH, the more coins that change hands between investors cementing its price discovery. This creates formidable long-term support once we break it. Bitcoin as a trillion-dollar asset class is here to stay. This is a good thing.”

Bitcoin To $650,000?

Many industry watchers say the outlook is still bright, thanks to the imminent halving — a pre-programmed event that reduces miner rewards by half every four years — and the possibility of interest-rate reductions.

Woo further posited that the shiny new spot BTC ETFs bring Bitcoin price targets of $91,000 at the bear market bottom and $650,000 at the bull market top. This could materialize once ETF investors have exhaustively deployed capital as per asset manager recommendations. According to Woo, these are actually conservative figures as he believes Bitcoin will undoubtedly surpass gold’s capitalization by the time the ETFs finish their role.

Although excitement persists for such lofty price predictions, Woo warned that these targets are not feasible this cycle because capital deployments take quite some time to complete.

Bitcoin is now 15.8% away from its record high of $73,737 set on March 14.

DISCLAIMER: None Of The Information You Read On ZyCrypto Should Be Regarded As Investment Advice. Cryptocurrencies Are Highly Volatile, Conduct Your Own Research Before Making Any Investment Decisions.

The original article written by Brenda Ngari and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

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Revolutionizing Online Networking: Welcome to Markethive

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Revolutionizing Online Networking: Welcome to Markethive !

In the digital communication world, Markethive wants to change how we connect, market, and do business online. It’s becoming a strong market network with the added power of blockchain, providing various free inbound marketing tools.

Markethive’s vision extends beyond traditional marketing platforms, as it provides a decentralized ecosystem that empowers individuals and businesses to connect, collaborate, and prosper in the digital era. Through the innovative integration of blockchain technology, Markethive introduces transparent and secure transactions, fostering trust and efficiency within its network.

"Elevate Your Digital Presence - Markethive.com, Your All-in-One Marketing Hub!"

Markethive offers a variety of inbound marketing tools at no cost, with a focus on empowering entrepreneurs and marketers worldwide. These tools include lead generation, social media broadcasting, content publishing, and campaign management, providing users with essential resources for success in the online business landscape.

As Markethive continues to grow, its steadfast dedication to nurturing a supportive and vibrant community propels it beyond the realm of just a marketing platform. By promoting teamwork and inclusiveness, Markethive leads the way in a new era of digital marketing, where the focus on creativity and collective success assumes a prominent role.

THE INBOUND MARKETING POWERHOUSE !

Markethive is a complete platform that provides various tools necessary for modern digital marketing. It includes blogging, email marketing, automation, social media monitoring, and analytics, offering users a comprehensive solution for their marketing needs. Additionally, the platform has features like landing pages and a content management system, making it a versatile choice for businesses and individuals looking to build and grow their online presence.

FROM VERITECH TO MARKETHIVE: A COLLABORATIVE EVOLUTION

Markethive has an interesting origin, stemming from Veritech and evolving from automated marketing to inbound marketing. This platform emphasizes a collaborative approach among its members, which sets it apart from other similar platforms. Notably, Markethive offers an intuitive user experience coupled with advanced tools, making it a comprehensive solution for those looking to enhance their marketing strategies. This dedication to user experience and innovation is what makes Markethive a standout option in the marketing industry.

GETTING REWARDED THE MARKETHIVE WAY

Users are rewarded for engagement and contributions, with the integration of various commerce platforms and blockchain technology ensuring transparency and privacy.

The integration of various commerce platforms and blockchain technology serves as a cornerstone for ensuring transparency and privacy in the ecosystem. leveraging the power of blockchain, users can be assured that their transactions and engagements are secure and immutable. Furthermore, the utilization of blockchain technology enables the creation of a decentralized environment, fostering trust and accountability. This innovative approach not only incentivizes user engagement but also promotes a sense of community and integrity within the platform. As users actively contribute and engage, they are duly rewarded, creating a virtuous cycle of participation and value creation.

YOUR DATA, YOUR RIGHTS

At Markethive, users have total control of their data, as activities are decentralized and encrypted, ensuring privacy and sovereignty. Shadow banning and getting banned are impossible

In the ecosystem of Markethive, individuals possess complete authority over their data and activities. The decentralized and encrypted nature of the platform guarantees the preservation of privacy and sovereignty. Moreover, the architecture is designed in such a way that shadow banning and being banned are rendered impossible, allowing users to engage without the fear of such restrictions.

In the ecosystem of Markethive

AN ECOSYSTEM FOR ENTREPRENEURS

Markethive is a comprehensive platform that provides a diverse range of services to its users. One of its key features is the provision of public profile pages, allowing individuals to showcase their professional and personal information in a centralized and accessible manner. This enables users to create a strong online presence and effectively network with others within the platform.

In addition to public profiles, Markethive also provides newsfeeds. Users can stay updated on the latest industry news, trends, and insights. This feature fosters a sense of community and ensures that users are well-informed to excel in their fields.

Furthermore, the inclusion of a blogging platform within Markethive enhances its utility by allowing individuals to share their thoughts, experiences, and expertise with a wider audience. This not only facilitates knowledge sharing but also contributes to the overall value and richness of the platform’s content.

Moreover, the availability of video channels adds another dimension to Markethive‘s offerings, enabling users to engage with visual content and harness the power of multimedia for communication and knowledge dissemination.

Markethive is deeply committed to helping individuals attain financial success and expand their knowledge. The company’s dedication is evident in its innovative tools and resources, which aim to empower users on their entrepreneurial journey. Through a platform that encourages learning and collaboration, Markethive leads the way in creating an environment where individuals can thrive and reach their objectives. Continuously adapting to the evolving digital entrepreneurship landscape, Markethive stands as a steadfast partner for those looking to improve their financial prospects and broaden their knowledge base.

Education, Earning, and Growth

The importance of education is huge, especially in Markethive. It’s the key to unlocking many opportunities and helps with growth and success. At Markethive, there’s a strong focus on rewarding learning, showing a real commitment to its users’ development. By investing in the knowledge and skills of its community, Markethive sets the stage for people to thrive. This not only benefits the users but also boosts the platform’s overall growth and dynamism. So, making education a central part of progress sets a strong example in the Markethive community.

A LEAP INTO THE BLOCKCHAIN

The adoption of blockchain technology ensures a secure and transparent system by leveraging its decentralized nature and cryptographic principles. With blockchain, users can have confidence in the integrity of transactions and data, thanks to its immutable and distributed ledger. This peer-to-peer network eliminates the need for intermediaries, leading to faster and more cost-effective processes.

Moreover, the exclusive banner program not only provides effective advertising but also serves as a powerful tool for brand promotion. By showcasing banners in strategic locations, businesses can capture the attention of their target audience and convey their brand message effectively. This form of promotion can significantly impact brand recognition and market visibility, ultimately driving customer engagement and loyalty.

ecosystem for entrepreneurs

In conclusion, the combination of blockchain technology and the exclusive banner program offers a robust foundation for businesses to ensure security, promote their brand, and reach their target audience in an impactful manner.

Markethive is designed for the new generation of business owners. It’s about providing people with free access, keeping their privacy safe, and helping them thrive. Members can use advanced tools to expand their businesses. The platform is committed to assisting business owners by offering them free access to marketing tools, education, and a supportive community while safeguarding their privacy. Markethive aims to help mold the future of business by offering the resources and assistance necessary for success in the digital era.

Tim Moseley

The Artist that came out of the Winter