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Compared to a dismal 2022, Bitcoin (BTC -0.33%) is on a tear in 2023. Since the beginning of the new year, the world's most valuable cryptocurrency is up more than 70% year to date. While this jump in prices is refreshing, especially when considering it has accomplished this in less than four months, Bitcoin still remains almost 60% off its all-time high.

This dichotomy between a recent rally but still well off from its previous highs makes evaluating Bitcoin's current position a little difficult. However, there are two charts that might add some perspective and shed some light on whether the cryptocurrency is a buy or a sell today.

One of the primary investment theses for Bitcoin is that it is one of the most decentralized and highly secure networks in the world. While this is true, how can we be sure? Thankfully there is a metric that quantifies this decentralization and security.

Known as hash rate, this statistic measures the amount of computational power required to mine one block on the Bitcoin blockchain. As hash rate increases, it becomes more difficult to mine Bitcoin blocks, and thus increases the security and decentralization of the network. There are quite a few dynamics at play when it comes to hash rate, but what investors should know is that today Bitcoin's hash rate sits just below its all-time high.

Image source: TradingView.

While Bitcoin's price has gone through multiple bear markets and crypto winters, there has been a clear trend of its hash rate increasing with time, regardless of market conditions. It is difficult to emphasize just how important this is.

As long as its hash rate continues on this upward trend, the premise of investing in Bitcoin remains intact.

Although Bitcoin's hash rate sits at record levels, its price remains well off from the November 2021 all-time high of nearly $69,000. The cycle of Bitcoin hitting seemingly impossible new highs every few years is a recurring theme, but so is its subsequent dramatic fall from those levels.

Based on the chart below, we can get our bearings on Bitcoin's current standing in these boom-and-bust cycles that have become so common.

Image source: TradingView.

Today, as mentioned, Bitcoin is far from its all-time high. But rather than just showing price, this chart shows the percent decline from Bitcoin's previous all-time high. While we aren't trying to time the market, imagine that you bought Bitcoin every time it fell into these deep troughs. It's in these deep valleys where the most lucrative returns are found.

While hindsight is always 20/20, today Bitcoin is once again at a low point in this chart. Although it might sound like timing the market, the true goal here is to find occasions when Bitcoin's valuation does not match its worth and long-term potential, thereby creating a rare buying opportunity.

The combination of Bitcoin's low price and its hash rate now near an all-time high is likely the only argument needed to warrant an investment in the cryptocurrency today. While we can never have certainty, should the next bull market arrive, those who invest today may be poised to reap the greatest rewards.

RJ Fulton has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

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Bitcoin In 2 Charts: Is It Time to Sell? - The Motley Fool

Mawson Infrastructure Group announced on Monday that the company has secured a new mining site in Corning, Ohio. The bitcoin mining firm, on May 1, 2023, unveiled its plans to set up its miners at the new location by Q3 of this year, with an aim to raise the operations hashpower by 1 exahash per second (EH/s).

On May 1, 2023, Mawson Infrastructure Group revealed it has signed an agreement for a new site in Ohio. This development comes on the heels of the companys prior ventures in Pennsylvania and the decision to pull out of Australia.

The new mining site, located in Ohio, is expected to offer a starting capacity of 24 MW. Mawson, however, anticipates expanding its operations to harness an additional 26 MW of power, effectively bringing the total capacity of the site to 50 MW.

The mining company disclosed it already operates 240 MW of capacity in the surrounding area. We are very excited to have finalized this new site acquisition. The addition of this site to our portfolio of assets in the region is a great achievement by the team reinforcing our revised strategy of focus in the PA/OH region, Mawsons CEO, James Manning commented.

Despite the expansion news, Mawsons publicly-listed shares (Nasdaq: MIGI) have experienced a 5% drop in the last 24 hours and a 1.97% decline over the last month. Nonetheless, the statistics of the past six months reveal an upward trend in MIGI shares by 11.26%, and year-to-date, the shares have increased more than 107%.

Mawsons initial plan for the Corning facility is to house 12 mobile data center (MDC) units and 7,056 miners. Both hosted and self-hosted machines will be deployed at the new mining location. Just prior to the Ohio announcement, in April, Mawson sold its Greenfield Texas sites for $8.5 million.

What do you think the future holds for Mawson Infrastructure Groups expansion plans in the PA/OH region? Share your thoughts about this subject in the comments section below.

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 7,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Mawson Infrastructure Group Expands to New Bitcoin Mining Site in ... - Bitcoin News

Investors aren't sure what to make of bitcoin right now. Since the beginning of the year, the cryptocurrency has behaved as both a risk asset and a hedge against uncertainty. That's been especially true since turmoil in the U.S. banking sector began in March and returned volatility to the market. Bitcoin has soared 77% this year. Volatility (and therefore uncertainty) is a key characteristic of cryptocurrencies at least for now. Despite what looks and sounds like institutional adoption and mainstream advancement, it's still very early days for the industry, so getting comfortable with the unpredictability is step one to being a good investor in it, according to Tyrone Ross, president and founder of financial planning firm 401 Financial. "If you make an investment into bitcoin, you understand that this is par for the course, it just is," he told CNBC. "You can dollar cost average in and hold it. Traders who have used a lot of leverage and have gotten liquidated in shorts those folks have a whole different set of issues than those that are really looking at it as an investment. These moves should not bother you if you are really an investor in bitcoin and understand it." "Believe in the core reasons for which you put money in and hopefully there are some 'narratives' around that that you can hang on to when it gets really volatile like this," he added. Bitcoin spent much of 2022 being tied to stocks, with inflation data and Fed policy as its main price drivers. That correlation has been sliding since the beginning of this year, but bitcoin remains sensitive to the macro economy. Meanwhile, its correlation with gold spiked in early March when the banking crisis began. This week, just as crypto volatility had returned to pre-banking crisis lows , troubles at First Republic Bank reignited concerns about the health of U.S. banks and bitcoin rallied as much as 8% . Still, investors are holding their breath for the next policy decision by the Fed at its meeting next week with many expecting a hard landing, and positioning for dollar debasement and interest rate cuts. Additionally, with so much liquidity having been drained from the market these past two months, investors aren't trusting any bitcoin rally to turn into the next great bull run. "Because bitcoin takes on a lot of asset profiles risk asset, store of value, VC-like nascent asset class investing in it is actually really attractive," said Greg King, CEOof investment company Osprey Funds. "Truly uncorrelated assets, with unpredictable behavior and a positive expected value, are rare jewels in terms of portfolio allocation." "Being highly volatile means that even a small allocation of bitcoin to a portfolio is enough to make the investment noticeable," he added. A very early technology play Looking at the price path on short timeframes, bitcoin will and often does mimic high-risk assets. The volatility will go away though, as it has for other new technology advancements before it, according to Mark Connors, head of research at Canadian investment fund manager 3iQ. He pointed out that over the past 10 years, bitcoin has declined from 5x more volatile than the Nasdaq in 2015 to 3x in 2019, to just 1.8x at the end of last year. "The qualities that make it an exponential grower bear out over periods of quarters and years," he said. "It's declining its volatility profile at a greater rate relative to equities," he said. "Mature assets don't have high adoption rates," he added. "People already own all the equities they're going to own. We're not going to have another 20% of people buy equities because there aren't 20% of people around to buy equities birth rates are down, portfolios are mature." Ross had a nuanced view, arguing that bitcoin remains a highly volatile asset. BTC.CM= 1Y mountain Bitcoin over the past year For the past decade traders have tried to understand bitcoin's identity, sometimes with little patience for its newness and ability to morph from one thing to another. It was designed to be digital cash for those excluded from the formal financial system. New entrants to the market that came in the 2021 bull run were sold on the idea of a hedge against inflation. They've gotten used to it trading like a stock. "Is it pristine collateral for some folks? Perhaps," Ross said. "Is it a better currency for some folks? Yes. Is it an inflation hedge? It didn't seem like it was. Is it safety when First Republic Bank looks like it's on the brink of collapse? Sure. But it's a speculative asset that is highly volatile and benefits from a very liquid environment," he said. For Ross, it's also a technology bet. New crypto investors often overlook the Bitcoin technology, focusing instead on bitcoin the crypto asset. Ross is bullish on its ability to act as a financial system for those who can't access bank accounts. "We have a venture capital investment essentially, with liquid pricing," Connors said. "That's a combination we're not used to, so to have an understanding of it is job one. The second one is to size it appropriately so that you're not watching all the time." "Volatility is a price you pay and, as people say, price is the least interesting thing about bitcoin although that's a hard pill to swallow," Connors added.

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Bitcoin keeps wavering between a store of value and a high-risk ... - CNBC

Nearly $125 billion worth of Bitcoin (BTC) are now considered ancient, or untouched for at least seven years, according to top blockchain analytics firm Glassnode.

Glassnode says that in all of Bitcoins history, only 8.3% of all coins that become ancient have ever been spent.

Of the BTC that remain ancient, Glassnode says they could be either dormant or lost completely.

Since the inception of Bitcoin, only 4.25 million coins have reached the status of Ancient Supply (7+ Years).

Remarkably, only 356,000 ancient coins have been spent, equivalent to 8.3% of the all-time ancient supply total, whilst 3.9 million (91.7%) coins currently remain dormant or lost.

The analytics firm also takes a look at its supply-per-whale metric, which looks at the average amount of BTC held by whales. It finds that the average BTC owned by whales has remained relatively static for multiple months now, but that each whale is owning a smaller and smaller percentage of the Bitcoin market cap on average.

Following the recent surge in price action, the Bitcoin supply per whale has reached an equilibrium, remaining stable around a value of ~5,350 BTC/whale.

However, despite stability in supply held, the percentage of the market cap owned by the whale cohort (46%) is declining.

Glassnode also takes note of its supply in profit/loss metric, which keeps track of the amount of coins that are sitting at a loss and at a profit. According to the firm, the metric is showing that market participants positions are more and more in the green as time goes on, indicating that a sell-off event might be on the table.

With the strong opening to 2023, the aggregate market has confidently transitioned out of a regime of unrealized loss, towards one of unrealized profit, shown by the sharp divergence between supply held in profit vs. loss. As this takes place, the incentive to take profits grows.

Featured Image: Shutterstock/Liu zishan/Vladimir Sazonov

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Over $124,700,000,000 in Bitcoin (BTC) Is Now Ancient, According to Analytics Firm Glassnode - The Daily Hodl

Bitcoin (BTC) is still in the process of emerging from last years crypto winter, a situation that saw some attention move away from the maiden cryptocurrency. The uncertainty regarding the general economy has also compounded Bitcoins recovery.

Despite the uncertainty, 400-year-old German investment bank Berenberg has stated that Bitcoin is set to reclaim the spotlight in the world of cryptocurrencies and general finance sector after fading in the wake of bear market, Coindesk reported on April 28.

Interestingly, the bank acknowledged that Bitcoins status in the crypto market had been relinquished to other digital assets and projects in recent years.

The banks bet on Bitcoin is rooted in a research report that outlines several factors that could elevate the cryptocurrencys status in the coming months. The report sheds light on the increasingly stringent regulatory environment in the United States, which puts almost every token at risk of being classified as a security and subjected to enforcement action.

However, Bitcoins unique design, characterized by decentralization and transparency, makes it an exception to this regulatory crackdown.

The report comes at a time Bitcoin has experienced a price rally in recent weeks, with the asset partly inspired by the US banking crisis. Therefore, the bank views the rally as a sign that more investors are considering Bitcoin as a sensible alternative among digital assets and the general finance sector.

Furthermore, the lender suggested that with other global economies attempting to abandon the dollar as the worlds reserve currency, Bitcoins value proposition as an alternative to traditional currencies may rise.

The report also notes that the next Bitcoin halving, slated for May 2024, is another possible catalyst for a Bitcoin rally.

If history is any guide, then Bitcoin could rally ahead of and after this much-anticipated halving, the report said.

Finally, the bank emphasized the growing importance of the Bitcoin blockchain and how the widespread adoption of the Lightning Network has demonstrated it. Notably, the Bitcoin Lightning Network is a second-layer solution for the Bitcoin blockchain that enables almost-instant transactions with low fees.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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400-year-old bank says Bitcoin set to reclaim finance sector spotlight - Finbold - Finance in Bold