The Bitcoin futures basis rate measures the difference between the price of Bitcoin futures contracts and the spot price. In a healthy market, this premium should range between 5%–10% annually 📊
When the basis rate drops, it signals weakening confidence in the market, as traders are less willing to pay a premium for futures contracts.
📉 Yesterday, the basis rate fell below 4%, indicating bearish sentiment. This suggests that traders are becoming more cautious and may be pulling back on leveraged long positions.
Crypto mining is the process of validating transactions and adding them to a blockchain. Miners use powerful computers to solve complex mathematical puzzles, keeping the network secure and transactions verified ✔️
Proof of Work (PoW) is the consensus mechanism behind this process. In PoW, miners compete to solve these puzzles first. The first to find the solution adds a new block to the blockchain and earns a reward in crypto, like Bitcoin 🥇
Why does this matter? PoW makes it extremely difficult for anyone to alter past transactions. To change a block, you'd need to redo the computational work for that block and all subsequent ones, which is nearly impossible.
🤝 There are other consensus mechanisms besides PoW. For example, Proof of Stake (which is used by Ethereum) lets validators create new blocks based on the amount of crypto they hold and "stake."
Other consensus mechanisms include Proof of Authority, Proof of History, etc., each of which uses different methods to secure the network 🔗
💵 Fiat money is the currency issued by governments, like dollars or euros. It's not backed by physical commodities and can be printed endlessly. This unlimited printing often leads to inflation, meaning your money buys less over time.
🌉 Hard money, like gold, has a limited supply and is difficult to produce more of. Its scarcity makes it a reliable store of value. As fiat currencies inflate and lose purchasing power, hard assets like gold tend to appreciate.
Enter Bitcoin, the digital form of hard money. Bitcoin has a fixed supply of 21 million coins. As governments continue to print their fiat money, Bitcoin and other hard money assets become more attractive as a hedge against depreciating national currencies 😁
Understanding the difference between fiat and hard money can help you protect your wealth. In a world of endless fiat inflation, scarce assets will offer a way to preserve and grow your value over time
In the new HBO documentary, Peter Todd is named Satoshi Nakamoto, the creator of Bitcoin. The funny thing is that he denies that it's him 👍
FTX has filed a motion seeking approval for a settlement agreement with former Alameda Research boss Caroline Ellison that would force her to return all her assets 🎎
A former California attorney has been sentenced to five years of probation and ordered to pay $14 million after admitting to conducting a multimillion-dollar Bitcoin Ponzi scheme 💰
Crypto exchange Crypto. com said it sued the U.S. SEC, Chair Gary Gensler, and its four commissioners after the regulator sent them a Wells Notice ⚖️
Market liquidity is about how quickly and easily you can buy or sell a crypto asset without causing a big change in its price. When a market is liquid, there's plenty of activity, so you can trade your tokens fast and at fair prices 🕯
In a market with high liquidity, you get more accurate pricing. This means less risk of slippage, which is the difference between the expected price of a trade and the price at which it happens.
💁♀️ Low liquidity can be risky. Imagine that you are holding $5 million worth of a memecoin (POPCAT in the example on the screenshot above), but the total liquidity for that coin is only $1.7 million.
If you try to sell all your tokens, you won't get the full $5 million USDT because your sell order will crash the price.
❗️ Always check the liquidity. On some DEXs or obscure trading pairs on CEXs, low liquidity can make trading a nightmare and cost you big time!
China's stock market is up 25% thinmonth after the government launched a stimulus blitz. Goldman: Goldman Sachs believes that if China does not do QE now, the current market rally will crash and burn and the economy will crater 😨
Today marks the 10-year anniversary of Tether, the USDT issuer. The company has announced a documentary about itself 🪀
On-chain sleuth ZachXBT has accused Ansem of pumping and dumping hundreds of meme coins with low market value among his 507k X followers 🔍
Japanese investment adviser Metaplanet has purchased another 1 billion yen ($6.7 million) worth of Bitcoin, pushing its holding to 639.5 BTC 🤑
Quantitative easing (QE) is when central banks inject money into the economy by buying financial assets like government bonds. This increases liquidity, lowers interest rates, and encourages borrowing and investment, stimulating economic growth and boosting stock markets 📈
Quantitative tightening (QT) is the opposite. Central banks reduce liquidity by selling assets or not reinvesting in them, leading to higher interest rates. This slows borrowing and can cool down markets and inflation 📉
QE can drive asset prices higher, benefiting markets, while QT often puts downward pressure on prices. Both policies impact inflation, interest rates, and overall economic activity.
The Federal Reserve has been doing QT for the last 4 years and only now, along with the start of the rate cut in September, has the Fed started a QE policy, which is very bullish 🐂
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