SpaceX Sells Bitcoin?
Plus: Oman Builds $370 million mining farm
Today we’re covering:
Bitcoin hits lowest daily RSI since 2020,
SpaceX sells Bitcoin?
Oman’s new $370 million dollar mining farm,
Vitalik sends $1 million worth of Ethereum to Coinbase,
And everything else you need to know.
First time reading? I’m Jordan, and this is the Bitcoin Minimalist. Every day, our team scours dozens of sources to bring you need-to-know Bitcoin news and insights—all in 5 minutes. Were you forwarded this email? Sign up here.
Bitcoin RSI Hits Lowest Level Since March 2020
The scoop: Bitcoin daily RSI has hit its lowest level since March 2020. RSI indicates when assets are overbought or oversold. In the graph above, you can see the Bitcoin price (red and green) and RSI (light blue at bottom) since April 2022.
In simple terms: The white blue line at the bottom indicates RSI. Bitcoin is at extremely low levels on the daily time frame. This indicates the Bitcoin price is oversold and is likely to rebound. You can see that at previous RSI lows, Bitcoin consolidated for a while and went up after, or went up very shortly after without consolidation.
Normal Levels: Bitcoin Monthly RSI is also at normal levels usually seen before the halving (currently estimated to be 239 days away). Bitcoin generally has large period of almost no price movement around this time before the halving.
WHAT WE'RE WATCHING
🚀 The cryptocurrency market witnessed a $1 billion sell-off, triggered by news of Elon Musk's SpaceX liquidating its bitcoin holdings. Bitcoin plummeted 7.2%, reaching a two-month low of $26,172. Rising interest rates affecting riskier assets and SpaceX's bitcoin write-down contributed to the decline, with eToro's Ben Laidler highlighting the SpaceX news as the "immediate catalyst" for the sell-off.
🙌 Coinbase acquires a minority stake in Circle Internet Financial. USDC, the second-largest stablecoin, is expanding its reach by launching on 6 new blockchains. Coinbase and Circle, the entities behind USDC, are strengthening their ties.
🇸🇪 Genesis Digital Assets (GDA), a major Bitcoin miner, inaugurates 8 MW mining facility. The new facility is in Sweden near a 417 MW hydroelectric station. GDA plans further expansion, emphasizing environmental impact reduction in the industry.
🔋 Nodal Power secures $13 million in seed funding. The company aims to combat methane emissions from landfills and use it to power Bitcoin mining centers. Funds have already been deployed to build two US power plants.
🏫 During the BRICS summit in South Africa, leaders could initiate a new university ranking system. The BRICs countries are planning a new system outside of the US dollar. Part of that may include a new university ranking system, as these countries attempt to remove themselves from the US system and US dollar.
🏦 The Federal Reserve's Neel Kashkari suggests prolonged high interest rates. The Fed has raised rates 11 times since March 2022 to combat inflation. Rates are currently at their highest since 2001, and Kashkari says The Fed “is a long way” from cutting rates.
Company Builds $370 Million USD Mining Farm in Oman
In short: Oman's Ministry of Transport, Communications, and Information Technology (MTCIT) welcomes Exahertz International's RO 135 million ($370 million) data hosting and Bitcoin mining center.
The Afaaq for Advanced Technologies center is the second major data hosting venture attracted by Oman's Ministry in recent months.
The initial phase is currently active, equipped with 11 megawatts of power and more than 2,000 Bitcoin mining machines. Towards October, the capacity is expected to accommodate as many as 15,000 miners.
Analysis: After China’s bitcoin mining ban, many miners shifted operations to the USA. It’s a positive development to see mining shifting to other countries, as the network becomes more decentralized. It was also announced earlier in the year that Bhutan has been quietly mining Bitcoin.
Is Bitcoin mining too centralized in the USA?
IN THE LOOP
🔒 Trezor's Model One hardware wallet introduces CoinJoin for enhanced transaction privacy, allowing collaborative transactions to obscure transaction history, a first in hardware wallets.
🇺🇸 Former President Donald Trump warns of America's diminishing global influence, citing a decline in currency prominence. In an interview, he criticizes Biden's leadership and highlights infrastructure and currency concerns. Trump predicts China's yuan could replace the US dollar due to energy-related inflation.
🏛️ Cryptocurrency exchange Gemini seeks to dismiss its SEC lawsuit over alleged securities violations by Gemini Earn. Gemini argues SEC's unclear claims and changing arguments undermine its case.
✉️ Ethereum's Vitalik Buterin sent $1 million worth of ETH (600 ether) to Coinbase as the cryptocurrency market saw a 10% decline over the week. The move's purpose remains unclear.
Today’s newsletter was written by Jordan and edited by Colin.