All eyes on Bitcoin [BTC] as the CEO of Coinbase reveals…
- Coinbase CEO stated that Coinbase may integrate Bitcoin Lightning Network.
- Bitcoin’s sentiment remained positive; however, traders are becoming skeptical.
Over the past few months, Bitcoin has [BTC] has witnessed a significant rally with an increase in price. While some traders have predicted an impending price correction due to BTC’s significant rise, Brian Armstrong, CEO of Coinbase comments [BASE]could potentially turn the tide in Bitcoin’s favor.
Is your portfolio green? Check out the Bitcoin Profit Calculator
In an April 8 tweet, Brian mentioned that Coinbase has an interest in integrating the Bitcoin Lightning Network into Coinbase.
It’s strange how @brian_armstrong actively ignores #Bitcoin Lightning network. He never tweeted about it. Not even once. 🤔
— Wicked (@w_s_bitcoin) April 8, 2023
The Bitcoin Lightning Network is a second-layer protocol that enables fast and cheap off-chain transactions between users. By creating a network of payment channels, the Lightning Network aims to improve the scalability and usability of Bitcoin.
Brian Armstrong’s comments have led to a significant increase in social activity for Bitcoin. LunarCrush’s data suggested that the number of social mentions for BTC has increased by 25.1%, and the number of social engagements related to BTC has grown by 8.4%.
The weighted sentiment was also positive, suggesting that the crypto community had more positive things to say about BTC than negative.
Source: Sentiment
The positive support for Bitcoin was also indicated through the decrease in Bitcoin’s average transaction volume. This decrease in transfer volume suggested that many addresses chose to hold BTC and wait for prices to rise.
📉 #Bitcoin $BTC Median Transaction Volume (7d MA) just hit a 3-year low of $266.98
The previous 3-year low of $267.13 was observed on March 6, 2023
See calculation: pic.twitter.com/9ZsKqb7qfG
— glassnode alerts (@glassnodealerts) April 8, 2023
Bitcoin traders remain suspicious
Traders, however, did not share the same sentiment. According to Coinglass’ data, the number of short positions taken against BTC has increased in recent weeks. At press time, the proportion of short positions taken against BTC increased from 49% to 52.16%.
Source: Coinglass
One reason for the increasing number of short positions may be the increasing selling pressure on the miners. Over the past few months, the difficulty of mining has increased tremendously. When mining difficulty is high, it can cause various challenges for cryptocurrency miners, such as increased competition, increased energy costs, and the need for newer hardware to remain competitive.
Read Bitcoins [BTC] Price prediction 2023-2024
To compensate for these expenses, miners may be incentivized to sell their BTC holdings.
Additionally, there was a risk of centralization, which could go against the decentralized nature of cryptocurrencies, potentially affecting their integrity.
Source: Glassnode
