🗞 Daily Crypto News, May, 18th💰

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Welcome to the Daily Crypto News: A complete News Review, Coin Calendar and Analysis. Enjoy!

🗞 Market Wrap: Elon Taketh Away – Bitcoin Continues Fall as Options Traders Pile Into Puts

Bitcoin’s 24-hour range: $42,269-$46,462 (CoinDesk 20)

Ether’s 24-hour range: $3,142-$3,587 (CoinDesk 20)

Bitcoin dumps, rest of crypto follows

“Over the last three months bitcoin has been consolidating around $50,000 within a volatile and wide $45,000 to $60,000 range,” said Jean-Marc Bonnefous, managing partner of investment firm Tellurian Capital. “We are still in a supportive trend generally but a lot of participants are already long bitcoin, so you need more and more bullish news to break this range and the all-time highs.”

“We saw the highest print recorded on Deribit’s ‘DVOL’ index,” noted Magadini.

Selling When Tesla Hasn’t

Puts could possibly prove lucrative for BTC options traders, but analysts continue to be concerned about the whims of Musk, CEO of electric car manufacturer Tesla and an increasingly influential cryptocurrency tweeter.

ETH price follows bitcoin; call options still favored

ETH options are still trending bullish: While over 60% of bitcoin options are puts, 55% of ether options are calls, based on Monday’s option market flows. Calls are the right but not the obligation to buy an asset before a specific expiration date – and can be used by traders to bet on upside.

🗞 How Today’s Bitcoin Slump Compares to 2017 Bull Run Drawdown

Bitcoin is undergoing a “historically significant correction,” Glassnode argues today.
*This is in part because of inexperienced investors panic-selling, the firm says.
*But long-term investors aren’t bothered—and see it as an opportunity.

Bitcoin’s latest price slump has got investors sweating. Do they have reason to worry? Not if you’re a long-time HODLer looking at the bigger picture, argues blockchain analysis company Glassnode in a report today.

“This is the deepest correction of the current bull market, however is consistent with five major pullbacks during the 2017 bull,” researchers for the analytics firm argued in its The Week On-chain newsletter.

Musk, who in February bought $1.5 billion-worth of Bitcoin on behalf of his car company, Tesla, said last week that his firm would stop accepting Bitcoin, causing the price to drop.

🗞 Ethereum Network Revenue Set to Smash Monthly Record of $722 Million

Transaction revenue, in dollars, is a product of transaction fees and Ethereum price.

Revenue is high due to demand for the network and record ETH prices.

The revenue model is due to shift in coming months, with EIP-1559 and Ethereum 2.0.

Total Ethereum transaction fees have never been higher, thanks to a combination of network use (and the ensuing congestion) and historically high ETH prices.

Transaction fees for May 2021 are on track to break the current monthly record of $722 million at some point today, according to statistics from Coin Metrics, with two full weeks left to go in the month. If the trend continues, the blockchain network will pass its Q1 network revenue totals of $1.7 billion in ETH before the end of May.

The previous high was set just three months ago, in February 2021.

The July network upgrade, known as "London," will include Ethereum Improvement Proposal (EIP) 1559, a controversial initiative that will automate gas prices then burn the fee rather than paying it to miners. The upshot is that it will decrease the supply of ETH, thereby increasing demand, while also removing some network congestion.

🗞 Banking system consumes two times more energy than Bitcoin

Amid the ongoing concerns over Bitcoin’s (BTC) energy consumption, a new study states that the traditional banking system consumes much more energy than the Bitcoin network.

Michael Novogratz’s cryptocurrency firm, Galaxy Digital, released a report Friday titled “On Bitcoin’s Energy Consumption: A Quantitative Approach to a Subjective Question,” providing open-source access to its methodology and calculations.

Compiled by Galaxy’s mining arm, the study estimates Bitcoin’s annual electricity consumption to stand at 113.89 terawatts per hour, including energy for miner demand, miner power consumption, pool power consumption and node power consumption. This amount is at least two times lower than the total energy consumed by the banking system as well as the gold industry on an annual basis, according to Galaxy’s estimations.

While Bitcoin’s energy consumption is transparent and easy to track in real time by using tools like Cambridge Bitcoin Electricity Consumption Index, the evaluation of energy usage of the gold industry and the traditional financial system is not that straightforward, Galaxy Digital Mining stated.