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Board approves UW System’s 2021-22 Annual Operating Budget (day 1 news summary) – University of Wisconsin System

MADISON The University of Wisconsin System Board of Regents unanimously voted Thursday to approve a $6.564 billionannual operating budget for 2021-22.

Key takeaways of the annual budget presented by Sean Nelson, Vice President of Finance, include:

Regent Bob Atwell said he appreciated the UW Systems ongoing efforts to keep costs down for students, but urged the Board to consider not just the cost to students, but also the cost of a UW education for students as part of a larger discussion of meeting higher education needs in Wisconsin.

In response, President Thompson reiterated his call for a blue-ribbon commission to study the overall state of higher education in Wisconsin, including both the UW System and the Wisconsin Technical College System.

Several Regents and Chancellors spoke in support of a commission, emphasizing the need to proceed without delay and to include input from campuses.

System President Thompson told Regents it is vital that the University support the whole student as things return to pre-pandemic life and that includes supporting students academic, financial, emotional, and overall health. He said the UW System is expanding some of its traditional programs, like the Summer Bridge Program, to address growing needs.

In a promising sign, Thompson told the Board that new fall freshman applications for UW System universities are up by about 30% over each of the last two years. Moreover, applications by Wisconsin residents, first-generation students, and underrepresented minorities are also up.

I am thrilled with these positive application numbers, he said. It shows our strategies are working and we are setting the stage for success.

Over the past 15 months, UW System has worked to simplify the application process, including waiving application fees, creating a new EApp, allowing students to use a single application for multiple universities, and suspending the ACT requirement.

Thompson also updated Regents on recent progress with UW Systems Administrative Transformation Program (ATP), the multi-year program to address Systemwide legacy process inefficiencies, risks, and gaps in functionality, and to build an administrative infrastructure for the future.

Im going to push this very hard in order for this university to be run like a modern institution, Thompson said.

He reported that he and Chancellor Blank recently approved an amended timeline for implementing ATP that would simultaneously benefit all campuses, rather than UW-Madison going first and others following. Thompson also noted that a 10-year contractual agreement between UW System and Workday, Inc., for cloud-based enterprise resource planning software had been approved by Regents in the Business & Finance Committee earlier in the day and that a new Request for Proposal on implementation services was issued last week.

Turning to budget matters, Thompson noted that Governor Evers had signed the state biennial budget just this morning. That budget provides $8.25 million in additional GPR, $628.7 million for building projects, a 2 percent pay plan increase in each year, and returns tuition setting authority to the Board of Regents by not extending the tuition freeze.

I want to thank Governor Evers and the legislature for their leadership, especially for investing in critical improvements in our infrastructure and support for our employees, Thompson said.

Regent President Edmund Manydeeds III, in his first report to the Board as President, shared a few thoughts on his expected priorities.

As the UW System works to provide a pre-pandemic college experience for students this fall, he said its also recognized there likely will be lingering effects of COVID, particularly in the areas of student and employee behavioral health.

We are actively engaged in a behavioral health initiative to improve the wellbeing and academic success of our students across the UW System because we know that healthy students are more likely to stay in school, graduate, and lead productive and fulfilling lives, he said.

Manydeeds is also focused on improving the campus climate for underrepresented students and employees. He noted the first recipients of the new Wisconsin Regents Opportunity Scholarships, which recognize underrepresented and underserved students, were announced this week. Funded by UW System, 267 students will be awarded scholarships in the inaugural round, totaling $995,000.

We have to do more than just talk about equity, diversity, and inclusion. We have to live it, and weave it through everything we do in the System, Manydeeds said. It starts by doing just one thing a day to make that happen.

Manydeeds also told Regents he wants to appoint a special committee to review the Boards bylaws and governance issues. A key item for this committee to address is the UW Systems allocation of state GPR dollars to campuses.

The Board welcomed new colleague, Dr. Jill Underly, who has just begun her term as State Superintendent of Public Instruction. Underly has a deep background in public education, most recently serving six years as superintendent of the Pecatonica School District in southwestern Wisconsin.

President Thompson introduced Dr. Jim Henderson, recently named interim Chancellor at UW-Whitewater after Chancellor Dwight Watson announced his resignation for medical reasons. Henderson previously served as UW System Vice President for Academic and Student Affairs.

The Business & Finance Committee approved a contract between UW-Madison and the National Football League. Under the agreement, the National Football League will support the UW-Madison School of Medicine and Public Healths 4-year multi-site, longitudinal, multi-discipline investigation involving the development and validation of new technologies toward muscle injury risk mitigation in collegiate football players, with a total budget of $3,999,974. The goal of the project is to incorporate advanced imaging and biomechanics to build digital models of athletes risk for hamstring strain injury.

In other business, the Business & Finance Committee:

The Education Committee approved amendments to Regent Policy Document (RPD) 4-12, Academic Program Planning, Review, and Approval in the University of Wisconsin System, to incorporate provisions requiring institutions to review credit requirements of degree programs that require more than 130 credit hours to complete and to reduce the number of students who accumulate excess credits. The proposal recognizes and seeks to address the institutional systems and processes that may present a barrier to students completing their degrees in a timely manner without amassing excess credits.

In other business, the Education Committee:

Chief Compliance Officer Katie Ignatowski presented the Fiscal Year 2022 Compliance Plan, which was approved by the Audit Committee. Ignatowski noted that the Office of Compliance and Integrity (OCI) has worked with each UW System institution to identify individuals responsible for key compliance obligations, craft policies to codify standards for compliance, and develop tools and resources necessary to aid compliance efforts.

Ignatowski told Regents the OCI expects to finalize policies in 2022 related to youth protection and records management.

In other business, the Audit Committee:

The Capital Planning & Budget Committee approved UW-Eau Claires request to lease student athletics, events, and recreation space within the Sonnentag Event and Recreation Complex. It also approved a new segregated fee that will be applied towards the lease of the facility.

The facility, which results from a unique community partnership between Mayo Clinic Health System Northwest, Blugold Real Estate, and the City of Eau Claire, will provide additional athletics and recreational needs for UW-Eau Claire and a collaborative use of space with Mayo Clinic, who contributes sports medicine, athletics and human performance training expertise, rehabilitation, medical imaging, and research conducted with the UW-Eau Claire Department of Kinesiology and other academic departments.

In other business, the Capital Planning & Budget Committee:

Presenting to the REDI Committee, three WiSys faculty innovators highlighted their efforts to build a culture of research, discovery, and product commercialization at UW System comprehensive universities. Their unique perspectives were followed by updates from several students who have been recognized systemwide for excellence in undergraduate research, product development and start-ups.

UW-Parkside Chancellor Debbie Ford, WiSys Advisory Board Chair, led a panel discussion with three other chancellors highlighting the growth of intellectual property development, industry partnerships, and entrepreneurial ecosystems at UW System campuses and in their surrounding communities.

The University of Wisconsin System Board of Regents will resume its meeting at 8:45 a.m., July 9, 2021, in Madison.

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Board approves UW System's 2021-22 Annual Operating Budget (day 1 news summary) - University of Wisconsin System

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China’s war on bitcoin just hit a new level with its …

Budrul Chukrut | LightRocket | Getty Images

China's central bank said Tuesday it had called for the shutdown of a company that "was suspected of providing software services for virtual currency transactions."

The statement, issued by the Beijing office of the People's Bank of China, also warned institutions not to provide other services related to virtual currency, including providing business premises or marketing.

Lashing out against digital currencies is nothing new for the authoritarian state.

In 2013, the country ordered third-party payment providers to stop using bitcoin. Chinese authorities put a stop to token sales in 2017 and pledged to continue to target crypto exchanges in 2019.

But typically, each time Beijing has lashed out at the crypto industry, the sting has worn off and the rules eventually softened.

This time, however, appears to be different.

In May, China banned financial institutions and payment companies from providing crypto-related services. In June, there were mass arrests in China of people suspected of using cryptocurrencies in nefarious ways. That same month, regulators dialed up the pressure on banks and payment businesses to stop providing cryptocurrency services, and Weibo, the Twitter of China, suspended crypto-related accounts.

As of July, half the world's bitcoin miners have now gone dark following Beijing's call for a severe crackdown on bitcoin mining and trading.

"China's government is doing everything they can to ensure that bitcoin and other cryptocurrencies disappear from the Chinese financial systems and economy," said Fred Thiel, CEO of Marathon Digital Holdings and a member of the Bitcoin Mining Council.

So why China has essentially declared war on cryptocurrencies in 2021?

"We're all wondering," said Nic Carter, founding partner at Castle Island Ventures.

One theory is that it's part of a broader law-and-order push ahead of the 100th anniversary of the Chinese Communist Party this year.

"They're cracking down on all sorts of undesirable behavior," Carter said.

Crypto has long been synonymous with crime on the mainland.

"The largest-ever Ponzi in crypto was likely Plus Token, which was a Chinese project," he said.

In that scheme, scammers swindled $5.7 billion from investors and dozens were arrested. "That will be lingering in their memory,."

Another theory is that China is clearing the runway for its very own digital yuan, a central bank digital currency that's been in development since 2014.

"Part of this is to ensure the adoption of China's central bank digital currency, and part of this is most probably to ensure financial surveillance activities are able to see all economic activity," Thiel said. The digital yuan could, theoretically, enable the government greater power to track spending in real time.

But Carter contends that bitcoin and the digital yuan are different to the point that they can't really be considered direct competitors.

"That's certainly the most commonly cited reason," Carter said. "I just don't know if I believe it. They're such distinct systems from each other."

The most likely motivator, according to Carter, is that Beijing is looking to stem capital outflows via stablecoins and cryptocurrencies. "China choking off the flow of yuan to crypto is a big deal," he said.

When it comes to the price of bitcoin, stemming all Chinese retail into crypto "totally moves the needle," according to Carter.

"I think that actually explains a lot of the market weakness and the sell-off," he said. "The good news is that as the crackdown has accelerated, bitcoin has stayed pretty flat, which suggests the market has digested this information."

Thiel believes that prohibiting bitcoin and crypto will actually help bitcoin in the long term.

"If China's goal was to kill bitcoin by shutting down 50% of the mining capacity and prohibiting trading thus crashing its value to punish Chinese holders (a la Didi post IPO and Ant Financial)," it didn't work.

"Instead, bitcoin proved its resiliency and the trades just moved offshore and miners elsewhere will take up the slack."

Alyse Killeen, founder and managing partner of bitcoin-focused venture firm Stillmark, points out that this whole conversation may be a moot point, as a government's capacity to effect a bitcoin ban will only continue to erode over time.

"I'd expect this type of news to have less of an impact on bitcoin's exchange rate than it has historically," she said. "It's also true that there has been some level of industry inoculation to this news bitcoin has been banned many times in many geographies, and yet today adoption is outpacing internet adoption at a similar lifecycle stage."

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Bitcoin billionaire Mircea Popescu dies, leaving lost fortune

Controversial Bitcoin billionaire Mircea Popescu, 41, has suddenly died, leaving behind a massive crypto fortune that could be worth as much as $2 billion and which some speculate could be lost forever.

Popescu, known to be among the largest individual holders of Bitcoin in the world at one point, drowned last week off the coast of Costa Rica near Playa Hermosa after going for a morning swim, according to local news reports.

Popescu was reportedly swept away by the current and died on the spot.

His death has since been confirmed by three women who were reportedly known to be close to him, though others have raised questions over whether hes actually dead.

His website, which he previously actively maintained, has not been updated since June 23, the day of his reported death.

Popescu, a controversial figure with documented instances of sexism and bigotry, according to Nasdaq.com, was estimated to hold at least tens of thousands of Bitcoins, with some estimating even larger holdings.

The lower end of those estimates would place the value of Popescus ownership close to $2 billion, based on the peak value of Bitcoin reached in April. Based on Bitcoins current value, his holdings would have been worth closer to $1 billion.

It remains unclear who, if anyone, has access to his digital assets, and crypto watchers are already speculating that the fortune could be gone.

Alexander Marder, a research analyst for Crypto Briefing, said on Twitter that Popescus Bitcoins may be lost forever, along with those of John McAfee, the antivirus software pioneer who hanged himself in a Spanish jail cell last week.

Anthony Pompliano, founder of Pomp Investments and noted Bitcoin bull, said in a since-deleted tweet that the loss of Popescus holdings could benefit other current holders of the crypto.

Mircea Popescu, a Bitcoin OG, has passed away. He likely owned quite a bit of bitcoin, Pompliano said on June 27 in the since-deleted tweet. We may never know how much or if they are lost forever, but reminds me [of what] Satoshi said: Lost coins only make everyone elses coins worth slightly more. Think of it as a donation to everyone.'

Pompliano appeared to be referencing a quote attributed to Satoshi Nakamoto, the pseudonym used by the anonymous person or people who developed Bitcoin.

Others in the crypto space mourned the loss of Popescu, who was known as a Bitcoin pioneer and early adopter.

Pete Rizzo, editor of Bitcoin Magazine, noted Popescu was known as The Father of Bitcoin Toxicity by some.

Popescus most high-profile crypto venture was likely MPex, a self-styled Bitcoin securities exchange, which he launched in 2012, long before Bitcoin received its current-day popularity.

The Securities and Exchange Commission investigated MPex in 2014, according to emails released by Popescu himself.

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Bitcoin billionaire Mircea Popescu dies, leaving lost fortune

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Bitcoins Mid-$30,000 Struggle And $2.87 Billion Crypto Whale Spike – Forbes

Following a fresh wave of regulatory crackdown on cryptocurrency mining operations in China, bitcoin saw a historic difficulty readjustment of nearly 28% last Saturday. The bitcoin network automatically adjusts the level of difficulty it takes to find a new block approximately every two weeks, or 2016 blocks, based on the amount of computing power on the network, so that new blocks are added on average every 10 minutes. In the near term, the remaining miners, especially those outside of China, stand to collect larger profits, however the market shows signs of stagnation.

Bitcoin is struggling to break out of the $34,000-range, trading at $34,618 as of 6:50 a.m. ET. According to data from Coinbase, bitcoins price has been range-bound between $33,197 and $35,909 over the last five days, with a five-day change of +2.4%.

Bitcoin price chart according to Coinbase

Bitcoin is in a consolidation phase between $30,000-$42,000 zone andwe expect it to spend the next few weeks testing this range on either side, wrote Pankaj Balani, CEO of crypto derivatives platform Delta Exchange, in a message to Forbes. There are limited catalysts here for any break on the upside in the short term; on the downside however weakness in the economic data is a concern. Any weakness in the broader markets or reduction in liquiditycan cause sharp down-moves in bitcoin. We see this reflected this in options data as well with puts trading at a premium to calls for July and August expiry.

These observations dovetail with an overall tempering of the market after a volatile few weeks. The short-term volatility is now at 2-months low, reports Norwegian crypto analytics firm Arcane Research.

BTC-USD Volatility

Crypto Whales Remain Hungry

As analysts are looking for clearer signs in the broader market amidst this relative tranquility, crypto whales (individuals or entities with large amounts of crypto holdings) are ostensibly buying. On July 2, 18 new whales surfaced on the chain and the total bitcoin balance held by whale entities shot up by 82,760 BTC, or $2.87 billion at current prices, according to on-chain analyst Will Clemente. The spike leads me to believe we may finally start to see some new big buyers step in (a bullish sign), writes Clemente.

Additionally, a new survey by Nickel Digital Asset Management, $200 million U.K. crypto hedge fund, found that 82% of institutional investors and wealth managers from the U.S., U.K., France, Germany, and the U.A.E. who currently have exposure to cryptocurrencies and digital assets expect to increase their crypto holdings by 2023.

That said, not all are convinced that we are out of the bearish woods. Ben Lilly, a crypto economist at trading and analytics platform Jarvis Labs writes, While we wouldnt be entirely surprised to see the price run higher, we are leaning towards downside movements in the near term. Which means even if price does pop higher, we expect price will lack momentum and ultimately retest $32-30,000 support.

Meanwhile, other top cryptocurrencies including Ethereum, BNB, Cardano and Polkadot are up on the week by 4.2%, 9.2%, 2.8% and 2.1% respectively.

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Bitcoins Mid-$30,000 Struggle And $2.87 Billion Crypto Whale Spike - Forbes

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Bitcoin, ether, dogecoin cracked nearly 10% today. Here is why – Mint

Major cryptocurrencies slumped on Friday with bitcoin, ether and dogecoin falling up to 10% amid continued consolidation and low volatility, as bulls and bears continued to fight for domination over the crypto market.

The crypto market mirrored the weak trend in the traditional markets, where major global equity indices traded in the red on concerns over the US growth outlook amid fears of the rise in covid-19 cases due to the delta variant.

While bitcoins correlation with S&P 500 hit a three-year low in June, as per the Kraken Intelligence report, experts say that institutional adoption of cryptocurrencies over the past year has made them susceptible to changes in the traditional markets.

Over the past two months, bitcoin has been trading between $30,000 and $42,000 levels as sentiment remained muted amid concerns over the environmental impact of bitcoin mining and regulatory crackdown in China.

The worlds biggest cryptocurrency on Thursday again slumped below the crucial support at $33,000 level and is now in danger of falling towards the $30,000 level. The digital asset, which is 50% lower against its all-time high, was trading 6% lower at $32,682 at around 4pm, as per CoinGecko.com.

Trading veteran, Peter Brandt on Wednesday said that bitcoin may soon fall below the $30,000 level.

In a Twitter thread, Brandt, who is the chief executive officer of global trading firm Factor LLC, shared a chart pattern showing bitcoins trading range. He also launched a poll asking users how low bitcoin can go below $30,000. However, most respondents were of the view that the digital currency wont break that level.

However, a major critic of bitcoin, Peter Schiff, who is the CEO of US-based Euro Pacific Capital, tweets that the digital asset may lose over a third of its value from here on.

Bitcoin continues to carve out the right shoulder of an ominous head and shoulders top pattern. If bitcoin takes out the June low, the market could easily collapse below $10,000, especially if leveraged speculators are forced to sell. No one seems to acknowledge this possibility," Schiff tweeted. Bitcoin had slumped to $28,000 level last month.

Meanwhile, the worlds second-biggest cryptocurrency, ether, was down over 8% at $2,183 today, while Shiba Inu-based meme crypto dogecoin slumped as much as 10%.

The sentiment in the crypto market further took a hit after shorts on cryptocurrency exchange Bitfinex spiked 160%. The latest price action came hours after fresh selling pressure thanks in part to an unknown whale trying to short it with over 5,000 bitcoin," Cointelegraph reported.

In the bearish cues from global regulators, The European Union is expected to propose a new agency to crack down on money laundering and transparency rules crypto assets, while Chinas central bank highlighted concerns over risks to financial systems from stablecoins.

A stablecoin is a digital currency that is linked to an underlying asset such as a national currency such as the US dollar or a precious metal such as gold.

Last week, Fitch Rating Ltd had said that the rapid growth of stablecoin issuance could have implications for the functioning of short-term credit markets.

In another negative news for the crypto market, the Securities and Exchange Commission (SEC) on Wednesday extended its review of SkyBridge Capitals application for a bitcoin exchange-traded fund.

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Bitcoin, ether, dogecoin cracked nearly 10% today. Here is why - Mint

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This Is The Key Level To Reignite The Bitcoin Rally – Forbes

The Bitcoin price has shown low volatility lately. Its price is trading in a tight range, under $36,000. While the dominant cryptocurrency is much higher than where it was this time last year, it is down more than 40% since its peak in April.

Bitcoin price continues to range in a small range, unable to find a clear direction.

The key level the Bitcoin price has to over come is $38,000. Above it, the rally would likely get reignited, especially at a point where the futures market is not crowded.

Many traders in the cryptocurrency space are looking at the daily chart of the Bitcoin price.

If the Bitcoin price exceeds $38,000, it would break out of a crucial technical formation, as seen below in a chart shared by the pseudonymous trader TeddyCleps.

The Bitcoin price daily chart.

But, the problem is that Bitcoin is continuously trading in a small range, unable to either break upwards or correct downwards.

How Would Bitcoin Break Above $38k?

There are two factors that could push Bitcoin upwards, above $38,000.

The first is the miner capitulation bottom signal. Recently, the Bitcoin hash rate has plummeted due to Chinas growing pressure on the local mining sector.

Historically, whenever the hash rate dropped hard, it marked a bottom, as it made many miners capitulate.

The second is the consistent selling pressure coming from the futures market.

Across major exchanges, the futures funding rate of Bitcoin has frequently been negative in recent weeks.

This means that many traders in the crypto derivatives market are shorting or selling Bitcoin, instead of buying.

When the selling pressure becomes too intense, it opens up the possibility of a short squeeze.

In the Bitcoin futures market, a mechanism called funding rate exists. Exchanges use this mechanism to reward the minority in the market.

For example, if there are more buyers in the market, the futures funding rate would typically hover above 0.01%. This means that buyers have to reward sellers 0.01% of their position every eight hours, and vice versa.

In recent weeks, the Bitcoin futures funding rate on major exchanges has been hovering at around -0.01%.

Since this kind of market incentivizes buyers, it could increase the probability of a short squeeze, especially when met with a strong fundamental catalyst.

Still, there are concerns shown by economists and analysts toward the crypto market. Namely, the negativity around stablecoins and the mining sector persist within the media circles.

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This Is The Key Level To Reignite The Bitcoin Rally - Forbes

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Are Bitcoin Prices Getting Ready To Break Free Of Their Current Malaise? – Forbes

Bitcoin's Bollinger bandwidth reached a mulit-month low today. Does this signal impending ... [+] volatility? (Photo Illustration by Chesnot/Getty Images)

Bitcoin prices have been trading in a reasonably well-defined range lately, but could a multi-month low in the value of technical indicator presage a coming breakout?

The worlds most prominent cryptocurrency has been moving largely between $30,000 and $42,000 since late May, according to CoinDesk.

Earlier today, CoinDesk reporter Omkar Godbole wrote about the digital assets market conditions, emphasizing one specific technical indicator:

Bollinger bandwidth, a measure of volatility calculated by dividing the spread between the Bollinger bands by the 20-day average of the cryptocurrency's price, has declined to a 2 1/2-month low of 0.15, he stated.

Similarly low readings of this indicator came before significant increases in volatility, noted Godbole.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Bollinger Bandwidth Considerations

However, a low Bollinger bandwidth does not, in and of itself, signal an impending breakout, analysts pointed out.

Bollinger Bands illustrate market volatility and a narrowing of the Bollinger bandwidth is a way of visualizing the decrease in volatility in recent weeks, said David Keller, chief market strategist at StockCharts.com.

In general, periods of lower volatility usually precede price breakouts. We saw that with Bitcoin and narrow Bollinger Bands in October 2020 and December 2020 before large price increases, and we also saw that in April 2021 right around the top for Bitcoin.

William Noble, the chief technical analyst of research platform Token Metrics, also commented on the situation.

Bollinger Band width is a good gauge as to [how] long, or how painful, a range trade has become. With bitcoin BBW crashing to .15 you have a numerical manifestation of the boredom bitcoin traders are living with.

BBW can sometimes crash and stay at low levels for up to a month, he added.

Low BBW doesnt guarantee the range will end soon.

Consulting Additional Indicators

When looking at Bollinger bandwidth, market observers can benefit significantly from checking other technical indicators, said Noble.

When using Bollinger Bands, you want to look for a reversal candlestick, he stated.

If bears try and force the market down, but bulls make a dramatic counterattack that same day, that is the sign that bulls have control and the range could end.

The same goes for the downside, Noble added.

For example, if bitcoin is in a tight range and there is a sudden breakdown because of a problem in the stock market, the sudden shock of the down move can send bulls running for cover.

Katie Stockton, the founder and managing partner of Fairlead Strategies, LLC, also weighed in, stating that:

I would always cross-reference any tool with other indicators.

She noted that when Bollinger bands contract, its time to watch levels closely.

So, Id be watching the 50-day MA and 30K for a breakout/breakdown, with a breakout more likely (in my work) from an overbought/oversold perspective.

Stockton wasnt the only one who spoke to potential downside, as Keller also offered some input on the bearish price action the digital asset might experience in the near future.

Overall, the chart of Bitcoin remains in distribution mode, with lower highs and lower momentum through much of 2021, he stated.

Bitcoin has remained below a downward-sloping 50-day moving average since May, indicating overall price weakness. The tight Bollinger Bands suggests a breakout is imminent, and the patterns of distribution suggest that break will most likely be lower.

Look for $30,000 to remain an important area of support, and a break below $30,000 could open the way to the next downside objective around $27,000, Keller emphasized.

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.

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Are Bitcoin Prices Getting Ready To Break Free Of Their Current Malaise? - Forbes

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Bitcoin prices have crashed, but CoinBase stock may still double: analyst – Yahoo Finance

It's time to back up the truck and buy the beat-up shares of pioneering crypto exchange Coinbase (COIN), contends Oppenheimer analyst Owen Lau.

Coinbase shares don't deserve to be swept up into the latest crypto winter, according to Lau.

"We think Coinbase should not trade in lockstep with bitcoin because bitcoin can be very volatile, but at the same time because of their volatility it drives higher trading volume. It is similar to all the traditional exchanges, and we think that it's still a misunderstanding in the market that people think Coinbase should trade along with bitcoin going forward," Lau said on Yahoo Finance Live moments after releasing a bullish research note on the company.

Lau reiterated his Outperform rating on Coinbase along with a 12-18 month price target of $440. In effect, Lau is looking for Coinbase shares to nearly double within an 18 month timespan.

Here are key aspects to Lau's call:

Stronger than expected second quarter volumes.

Wall Street analysts will likely be forced to raise their 2021 estimates in light of a strong second quarter for volumes.

Concerns of Coinbase cutting its fees are overblown and will subside.

That being said, Coinbase shares have been swept up into the downdraft in crypto prices going on for months already.

From the record highs of more than $63,000 in mid-April, bitcoin (BTC-USD) has shed about 50% (including a trip below the $30,000 level). Major sell-offs have spread to other top cryptos such as dogecoin and ethereum amid fears of regulator crackdowns in the U.S. and China.

Coinbase shares are down about 30% over the past three months. At $234.88, Coinbase shares trade well below the $328.88 level set on its Nasdaq debut in mid-April.

Coinbase employee Daniel Huynh holds a celebratory bottle of champagne as he photographs outside the Nasdaq MarketSite, in New York's Times Square, Wednesday, April 14, 2021. Wall Street will be focused on Coinbase Wednesday with the digital currency exchange becoming a publicly traded company. (AP Photo/Richard Drew)

The pullback comes despite Coinbase CFO Alesia Haas reiterating in an interview on Yahoo Finance Live that the second quarter started off strong.

Said Lau in his note, "Looking ahead, we believe management will continue to strategically increase contributions from 1) recurring revenue (e.g., the Coinbase Earn campaign, staking, and M&A) and 2) altcoins. Coinbase indicated ~40% of its trading volume in 1Q came from altcoins, materially lower than peers (e.g., ~85% of spread revenue for Voyager). After adding Dogecoin, Polkadot, and others, Coinbase should gradually reduce its reliance on Bitcoin. We continue to see a sharp dislocation between Coinbase's fundamentals and its valuation and believe the current price offers an attractive entry point for long-term investors."

Story continues

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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Bitcoin mining is now easier and more profitable as algorithm adjusts after China crackdown – CNBC

A bitcoin mine near Kongyuxiang, Sichuan, China on August 12, 2016.

Paul Ratje | The Washington Post | Getty Images

It just became a whole lot easier and much more profitable to mine for bitcoin.

The world has known for months that more than half the world's bitcoin miners would be going dark as China cracked down on mining. Now that it's happened, the bitcoin algorithm has adjusted accordingly to make sure miner productivity doesn't continue to fall off a cliff.

That adjustment which took effect early Saturday morning also means that way more cash is going to the bitcoin miners who remain online.

"This will be a revenue party for miners," said bitcoin mining engineer Brandon Arvanaghi.

"They suddenly own a meaningfully larger piece of the pie, meaning they earn more bitcoin every day."

A bitcoin miner runs a program on a computer to try to solve a puzzle before anyone else does. Solving that puzzle is what completes a block, a process that both creates new bitcoin and updates the digital ledger keeping track of all bitcoin transactions.

China had long been the epicenter of bitcoin miners, with past estimates indicating that 65% to 75% of the world's bitcoin mining happened there, but a government-led crackdown has effectively banished the country's crypto miners.

"For the first time in the bitcoin network's history, we have a complete shutdown of mining in a targeted geographic region that affected more than 50% of the network," said Darin Feinstein, founder of Blockcap and Core Scientific.

More than 50% of the hashrate the collective computing power of miners worldwide has dropped off the network since its market peak in May.

Fewer people mining means that fewer blocks are solved each day. Typically, it takes about 10 minutes to complete a block, but Feinstein told CNBC the bitcoin network has slowed down to 14- to 19-minute block times.

This is precisely why bitcoin re-calibrates every 2016 blocks, or about every two weeks, resetting how tough it is for miners to mine. On Saturday, the bitcoin code automatically made it about 28% less difficult to mine a historically unprecedented drop for the network thereby restoring block times back to the optimal 10-minute window.

The bitcoin algorithm is programmed to handle an increase or decrease in mining machines, according to Mike Colyer, CEO of digital currency company Foundry. "It is a self-regulating market that does not require any outside committee to determine what to do. This is a very powerful concept," he said.

Fewer competitors and less difficulty means that any miner with a machine plugged in is going to see a significant increase in profitability and more predictable revenue.

"All bitcoin miners share in the same economics and are mining on the same network, so miners both public and private will see the uplift in revenue," said Kevin Zhang, former Chief Mining Officer at Greenridge Generation, the first major U.S. power plant to begin mining behind-the-meter at a large scale.

Assuming fixed power costs, Zhang estimates revenues of $29 per day for those using the latest-generation Bitmain miner, versus $22 per day prior to the change. Longer-term, although miner income can fluctuate with the price of the coin, Zhang also noted that mining revenues have dropped only 17% from the bitcoin price peak in April, whereas the coin's price has dropped about 50%.

"We are expecting a period of much higher mining profitability for Compass Mining clients," said Whit Gibbs, CEO and founder of Compass, a bitcoin mining service provider. "We expect miners to be approximately 35% more profitable."

Blockcap's Feinstein agrees. "We are expecting a revenue and profit increase for the foreseeable future. This was an unexpected gift to the network, not just on revenues but on decentralization and sustainable energy metrics."

Although the difficulty drop benefits all miners, those using new-generation equipment stand to benefit the most.

Feinstein tells CNBC that most of the gear in China that was turned off was old-generation equipment, which is inefficient and runs on much smaller profit margins.

It is hard to predict how long the hashrate deficit will last. Barbour said that it is totally possible that Beijing could simply reverse their policy, and this could only be a short-term interruption.

If not, most mining crypto experts agree that it will take anywhere from six to 15 months for all of that idle and displaced mining hardware to migrate. "It's going to take a long time for the surplus to find a home," said Barbour.

Gibbs thinks miners should see heightened revenue for at least the rest of 2021.

"Every day the Chinese miners are searching globally for places to turn their machines back on.There is very limited space at the moment," said Colyer.

Part of the problem, according to Feinstein, is that even before China cut off mining, there was already a lack of infrastructure to house the new-generation miners being deployed monthly by Beijing-based manufacturer Bitmain.

Now that the market is flooded with an over-supply of used mining rigs, it is tough to say how fast countries will be able to absorb the influx of gear.

"Some mining companies have had everything built and were just waiting for these ASICs to plug in, which would only take a couple days," explained Arvanaghi.

"Others may need to build containers, extend warehouses, or increase their power capacity. We won't see the hashrate reach what it used to be overnight, but we'll see it tick back up over the next few months," he continued.

Of all the possible destinations for this equipment, the U.S. appears to be especially well-positioned to absorb this stray hashrate. CNBC is told that major U.S. mining operators are already signing deals to patriate some of these homeless Bitmain miners.

U.S. bitcoin mining is booming, and has venture capital flowing to it, so they are poised to take advantage of the miner migration, Arvanaghi told CNBC.

"Many U.S. bitcoin miners that were funded when bitcoin's price started rising in November and December of 2020 means that they were already building out their power capacity when the China mining ban took hold," he said. "It's great timing."

But Barbour believes that much smaller players in the residential U.S. also stand a chance at capturing these excess miners.

"I think this is a signal that in the future, bitcoin mining will be more distributed by necessity," said Barbour. "Less mega-mines like the 100+ megawatt ones we see in Texas and more small mines on small commercial and eventually residential spaces. It's much harder for a politician to shut down a mine in someone's garage."

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Bitcoin mining is now easier and more profitable as algorithm adjusts after China crackdown - CNBC

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Sen. Pat Toomey Invested in Bitcoin, Ethereum After Advocating for Less Crypto Regulation – Barron’s

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Sen. Pat Toomey, who recently pushed for less-burdensome cryptocurrency regulations, has disclosed investments in Bitcoin and Ethereum.

The Pennsylvania Republican, the ranking member on the Senate Banking Committee, invested a total of as much as $30,000 in Grayscale Ethereum Trust (ticker: ETHE) and Grayscale Bitcoin Trust (GBTC). According to a disclosure Toomey filed Wednesday with the Senate Office of Public Records, he invested between $1,001 and $15,000 in each of the trusts on June 14.

On June 10, the senator wrote to Treasury Secretary Janet Yellen to raise concerns regarding recent proposals to regulate cryptocurrency transactions. Toomey noted that the proposals would have a detrimental impact on financial technology, the fundamental privacy of Americans, and efforts to combat illicit activity. He urged significant revisions to them.

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Toomeys office didnt immediately respond to requests for comment. It wasnt immediately clear if Toomey made the investments himself, or if they were made by a third-party advisor.

Toomeys cryptocurrency investments are his first on record; his annual financial report for 2019, the latest available, shows no crypto holdings.

The senator has met with cryptocurrency lobbyists as recently as 2019. Also that year, Toomey spoke against cracking down on Facebooks (FB) cryptocurrency plans.

Grayscale notes on its site that the Ethereum trust has rocketed 860% in the latest 12 months, while the Bitcoin trust has surged 260% in that time. The single-asset products are designed to track the market prices of Ethereum and Bitcoin, respectively.

Toomey said last year that he doesnt plan to run for re-election in 2022, setting up a scramble in Pennsylvania for his seat.

Inside Scoop is a regular Barrons feature covering stock transactions by corporate executives and board membersso-called insidersas well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin.

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Sen. Pat Toomey Invested in Bitcoin, Ethereum After Advocating for Less Crypto Regulation - Barron's

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