Recent on-chain data reveals a compelling narrative in the world of Bitcoin (BTC) as holders continue to accumulate the digital asset. The statistics depict a scenario where exchange holdings have plummeted to yearly lows, while the proportion of dormant BTC supply has surged to unprecedented levels.
Glassnode’s Bitcoin supply last active chart highlights this trend, showcasing that the amount of inactive BTC, untouched in addresses for one, three, and even five years, has reached historic highs since July 2023.
These findings resonate with Bitcoin analytics from CoinMarketCap, which tracks wallet addresses based on the duration of BTC holding. Remarkably, a staggering 69% of addresses, equivalent to 36.8 million, have maintained their BTC holdings for over a year.
CryptoQuant’s data further reinforces this trend by indicating a consistent decline in Bitcoin outflows from exchanges since July 2021.
Currently, a meager 2 million BTC remains on various exchanges, reflecting a substantial decrease over time.
For a more granular view, the CoinGlass Bitcoin on exchanges tracker dissects the circulating BTC holdings among major centralized exchanges.
Leading the pack is Binance, boasting 543,281 BTC on its platform. However, it’s worth noting that Binance has experienced a notable exodus of Bitcoin in the past month, with 21,645 BTC withdrawn.
Coinbase Pro secures the second position with a BTC balance of 435,530.
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Similar to Binance, this U.S.-based exchange has witnessed 3,612 BTC being withdrawn over the last 30 days.
Interestingly, OKX stands out as the only exchange in the top 10 to have observed a substantial inflow of Bitcoin in the same period, with 4,630 BTC flowing onto its platform.
The broader context of these developments involves market commentators and analysts making bullish predictions about Bitcoin’s potential value.
These sentiments are fueled by the anticipation of the highly-awaited mining reward halving, scheduled for 2024.
As Bitcoin holders increasingly opt to store their assets securely in non-exchange wallets, the crypto community is left to speculate on the potential for further price appreciation in the coming years.
These accumulating patterns suggest a strong belief in Bitcoin’s long-term value and utility as a digital store of wealth.
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The United States House Financial Services Committee is taking significant steps to address the issue of central bank digital currencies (CBDCs).
Chairman Patrick McHenry has announced that the committee will hold markups for two bills related to a potential digital dollar on September 20.
Markups serve as essential sessions where lawmakers thoroughly discuss the specifics of a proposed bill before it progresses to the House floor.
One of the key bills under consideration is the Digital Dollar Pilot Prevention Act, known as H.R. 3712.
This legislation, introduced by Representative Alex Mooney in May, seeks to restrict the Federal Reserve from launching pilot programs to test CBDCs without prior approval from Congress.
This move is aimed at ensuring that any steps towards a CBDC are subject to proper oversight and authorization.
Although the Federal Reserve has recently asserted that it has not made any concrete decisions regarding the issuance of a CBDC, it clarified that any such move would require authorization through legislation.
Interestingly, the Federal Reserve of San Francisco has been actively recruiting technical personnel for a CBDC project in recent months, suggesting that the digital dollar remains a topic of serious consideration.
The second piece of legislation being discussed is an amendment to the Federal Reserve Act, which carries multiple provisions.
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It prohibits Federal Reserve banks from directly offering certain products or services to individuals. Additionally, it bars the use of CBDCs for monetary policy purposes and other similar objectives.
The bill explicitly states that “a Federal reserve bank shall not offer a central bank digital currency, or any digital asset that is substantially similar under any other name or label, indirectly to an individual through a financial institution or other intermediary.”
The issue of a digital dollar has sparked considerable debate within the United States.
Prominent figures like presidential candidates Robert F. Kennedy Jr. and Ron DeSantis have voiced their concerns, particularly regarding financial privacy, in opposition to the establishment of a CBDC in the country.
Meanwhile, proponents of CBDCs argue that such a digital currency would help maintain the global relevance of the U.S. dollar and potentially facilitate increased adoption of cryptocurrencies.
As the debate continues, the House Financial Services Committee’s actions represent a pivotal moment in shaping the future of digital currency in the United States.
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In September, Binance.US, the American arm of the global cryptocurrency exchange Binance, grappled with a series of challenges that sent its trading activity plummeting to historic lows.
On September 16th, Binance.US reported a mere $5.09 million in trading volume, as disclosed by Amberdata on The TIE Terminal.
The lowest point of the month was recorded on September 9th when trading activity dipped to a paltry $2.97 million.
This stark decline is a stark contrast to September 17, 2022, when the exchange’s trading volume comfortably hovered around $230 million.
The turmoil surrounding Binance.US can be traced back to a lawsuit filed by the Securities and Exchange Commission (SEC) on June 5. The SEC accused both Binance and Binance.US of various infractions, including unregistered securities offerings and wash trading.
The allegations included Binance.US’s failure to register as a broker-dealer and to properly register its staking-as-a-service program.
In response to the lawsuit, Binance.US took the drastic step of suspending trading for more than 100 token pairs.
This move had a substantial impact on the exchange’s overall trading activity.
Internal challenges have further compounded the situation. Brian Shorder, the former CEO of Binance.US, resigned recently, joining a growing list of global executives who have departed the organization in recent weeks.
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Following Shorder’s departure, Head of Legal Krishna Juvvadi and Chief Risk Officer Sidney Majalya also announced their resignations.
Speculation is rife that these departures are linked to an ongoing investigation by the U.S. Department of Justice into Binance, its CEO Changpeng “CZ” Zhao, and Binance.US. CZ, in a statement on X (formerly Twitter), indicated that Shorder’s exit was due to a “deserved break” and praised his contributions to the company.
The troubles for Binance.US appear to be far from over.
The SEC has accused the exchange of non-cooperation in the ongoing investigation, citing a meager production of 220 documents during the discovery process.
Additionally, a judge granted the SEC’s request to unseal previously sealed or redacted documents related to the case on September 15.
These documents are expected to shed further light on the ongoing legal challenges faced by Binance.US and are anticipated to become publicly available in the near future.
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James Tromans, Google Cloud’s Web3 lead, has raised a crucial point about the cryptocurrency industry’s excessive fixation on token prices at the expense of exploring the practical applications of smart contracts in real-world business scenarios.
In a recent interview with Cointelegraph, Tromans emphasized the importance of shifting the focus from token dynamics to the actual business logic embedded within smart contracts.
Tromans highlighted the need to identify and address specific business challenges that smart contracts can resolve.
He asserted that tokens should be seen as tools to execute business logic, rather than the central focus of Web3 technology.
He stated, “It’s the business problem that’s the thing, not the token.” Tromans urged the industry to move beyond discussions of tokens and speculative trading, as they do not constitute the essence of Web3.
Google Cloud plays a significant role in the blockchain space through its Blockchain Node Engine, providing users with self-hosted nodes for accessing blockchain data, conducting transactions, developing smart contracts, and running decentralized applications.
Tromans emphasized that blockchain and smart contracts can drive innovation, reduce operational costs, and create new revenue streams.
Despite the crypto bear market, Google Cloud has experienced robust demand from enterprises seeking to integrate blockchain technology into their operations.
Tromans noted that traditional enterprises continue to express interest in leveraging blockchain to enhance efficiency, reduce costs, and accelerate innovation.
Most of this demand stems from the traditional finance (TradFi) sector, where blockchain technology is employed to address fundamental financial and accounting challenges.
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Additionally, Google Cloud customers are increasingly exploring blockchain solutions for digital identity and supply chain management.
Digital identity has garnered significant attention in the Web3 space, with the recent launch of Worldcoin, a biometric cryptocurrency project founded by OpenAI CEO Sam Altman in 2019.
However, Tromans cautioned that blockchain technology may not achieve mass adoption until the user experience improves.
He argued that complex concepts like private keys must be abstracted away to make blockchain technology accessible to non-technical users.
Tromans drew parallels with everyday technology like web browsers, highlighting the need for similar user-friendly interfaces in Web3.
He emphasized the importance of building frictionless solutions for key recovery and data management to enhance the overall user experience.
Ultimately, Tromans envisioned a future where blockchain technology seamlessly addresses challenges in various industries, including payments, gaming, and the arts, without users needing to understand the underlying technology.
He concluded that once Web3 achieves mass adoption, it will become synonymous with the web itself, transcending its current distinct identity.
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Dubai-based cryptocurrency exchange, JPEX, has found itself entangled in a liquidity crisis, prompting a series of actions that have stirred controversy within the cryptocurrency community.
In a blog post on September 17, JPEX attributed this crisis to what it termed as “unfair treatment” by certain institutions in Hong Kong, compounded by negative news coverage.
The exchange claimed that these factors led to its third-party market makers freezing funds and demanding additional information for negotiation, thus restricting liquidity and increasing operational costs to unsustainable levels.
In response to this predicament, JPEX announced the delisting of all operations affiliated with its Earn product, effective September 18.
This decision prevents users from initiating new Earn orders, allowing only existing orders to continue until their respective product end dates.
While regular spot trading activities remain unaffected for now, reports have emerged that JPEX is imposing a hefty 999 Tether withdrawal fee, capped at 1,000 USDT, further unsettling its user base.
JPEX, however, did not provide a direct explanation for the high withdrawal fee but assured users that it plans to gradually restore normal withdrawal fee levels once negotiations with third-party market makers conclude.
The exchange stated its commitment to reclaiming liquidity from these market makers and promised to share the revised withdrawal fee details after these negotiations.
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Additionally, JPEX revealed plans to utilize a decentralized autonomous organization (DAO) to gather suggestions from users on its restructuring efforts.
This move reflects the exchange’s desire to engage its community in reshaping its future direction.
Despite these announcements, JPEX has faced scrutiny from regulators.
On September 13, the Hong Kong Securities and Futures Commission (SFC) issued a warning against JPEX for allegedly marketing its services to Hong Kong residents without obtaining the necessary license.
The SFC highlighted various irregularities in JPEX’s practices, including offering exceptionally high returns and other discrepancies in its marketing strategies.
Concerns deepened as an attendee at the Token 2049 conference in Singapore reported that the JPEX booth had been abandoned shortly after the SFC’s warning was issued.
Subsequently, local authorities in Hong Kong received numerous complaints about the exchange, further intensifying the regulatory scrutiny surrounding JPEX’s operations.
As this situation unfolds, the cryptocurrency community and regulatory bodies continue to closely monitor developments with JPEX, with both sides eager to see how the exchange addresses its liquidity crisis and regulatory issues.
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Bitcoin has shown signs of a positive turnaround as it formed successive Doji candlestick patterns on the weekly chart over the last three weeks.
This indicates a resolution of the uncertainty between the bulls and bears in favor of the bulls.
However, the upcoming Federal Open Market Committee meeting on September 20 could introduce volatility, depending on the outcome of Fed Chair Jerome Powell’s press conference following the rate decision.
Most market participants anticipate the Federal Reserve to maintain the current interest rate levels.
Bitcoin’s recovery from strong support near $24,800 has sparked interest in select altcoins, which present trading opportunities.
For these altcoins to sustain their upward trajectory, Bitcoin must remain above $26,500.
Bitcoin has recently surpassed the 20-day exponential moving average ($26,303), indicating a reduction in selling pressure.
The bulls have successfully defended against several bearish attempts to push the price below the 20-day EMA.
If buyers manage to push the BTC/USDT pair past the 50-day simple moving average ($27,295), it may reach $28,143, though this level is expected to face resistance from bears.
Conversely, if the price drops below the 20-day EMA, it could retest the pivotal support at $24,800.
Similarly, altcoins like MKR and AAVE have displayed bullish signs, with MKR above the 50-day SMA ($1,162) and AAVE surging past moving averages on September 16.
MKR/USDT could head towards $1,370, though the level may witness a battle between bulls and bears.
Conversely, if the 20-day EMA ($1,162) is breached, the pair might consolidate within the range of $980 to $1,370.
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As for AAVE/USDT, a sustained price above the 50-day SMA ($59) could drive it towards $70 and $76, but a drop below the 20-day EMA ($56) could lead to a decline to the solid support at $48.
THORChain’s RUNE has made a smart recovery, nearing the resistance at $2.
If it breaks through, it may initiate a new uptrend to $2.30 and eventually $2.80.
However, a sharp downturn from $2 could push the price down to the 20-day EMA ($1.62).
Lastly, RNDR broke out and closed above the 50-day SMA ($1.58), suggesting reduced selling pressure.
The moving averages are on the verge of a bullish crossover, and a bounce from the 20-day EMA ($1.50) could lead to a stronger recovery to $1.83 and $2.20.
On the contrary, a drop below the moving averages could send RNDR/USDT down to $1.38 and later to $1.29.
In summary, these cryptocurrencies show promising signs, but their paths forward depend on key support and resistance levels, as well as broader market factors like the Federal Reserve’s decisions.
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In August, the decentralized finance (DeFi) ecosystem faced a series of challenges, witnessing a decline in on-chain economic activity, as revealed by an analysis conducted by the investment management firm VanEck.
During this period, exchange volume plummeted to $52.8 billion, marking a 15.5% decrease compared to July.
VanEck based its findings on the MarketVector Decentralized Finance Leaders Index (MVDFLE), which monitors the performance of the most substantial and liquid tokens on various DeFi platforms, including Uniswap, Lido DAO, Maker, Aave, THORChain, RUNE, and Curve DAO (CRV).
August proved to be a tough month for the DeFi index, which dropped by 21%, underperforming Bitcoin and Ether.
This decline was further exacerbated by the negative performance of the UNI token, which saw a staggering 33.5% decrease as investors offloaded their tokens to capture profits earned in July.
Despite the underwhelming performance of DeFi tokens in August, the ecosystem did witness some notable positive developments throughout the month.
These included the dismissal of a class-action lawsuit against Uniswap Labs and the remarkable growth of Maker and Curve’s stablecoin.
Following a significant exploit in late July, Curve Finance’s stablecoin, crvUSD, experienced substantial growth in August, reaching an all-time high of $114 million borrowed.
CrvUSD is pegged to the U.S. dollar and operates on a collateralized debt-position (CDP) model, where users deposit collateral like ETH to borrow crvUSD.
“The growth of crvUSD has allowed it to become a significant contributor of revenue for the platform, with crvUSD fees exceeding fees collected from all non-mainnet liquidity pools in 3 of the 4 last weeks,” noted the report.
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However, Curve Finance’s governance token struggled to recover from the exploit, with its price falling by 24% in August to $0.45.
The report also highlighted the concerns surrounding Michael Egorov, the founder of Curve Finance, who had around $100 million in loans backed by 47% of the circulating supply of CRV tokens.
As the CRV price dropped nearly 30% following the hack, there were fears of Egorov’s collateralized loan liquidation, raising concerns of a potential contagion effect within the DeFi ecosystem.
To reduce his debt position, Egorov sold 39.25 million CRV tokens to notable DeFi investors during the crisis.
Furthermore, VanEck pointed out that current global interest rates, particularly in the United States, continued to put pressure on stablecoins.
The aggregate market capitalization of stablecoins declined by 2% in August, reaching $119.5 billion.
This drop was attributed to elevated interest rates in traditional finance, prompting investors to shift from stablecoins to money market funds offering approximately 5% risk-free yield.
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Bitcoin (BTC) concluded the week ending on September 17th with a price of approximately $26,500, showcasing a sense of stability after reaching new highs earlier in the month.
This weekend marked a period of relative calm for the leading cryptocurrency, as indicated by data from Cointelegraph Markets Pro and TradingView.
Just a couple of days prior, Bitcoin had surged to $26,880, marking its highest level for the month.
Credible Crypto, a renowned trader and analyst, examined the state of the Binance BTC/USD order book and observed a cluster of bid liquidity supporting the market.
He noted that some seller absorption was occurring at this level, suggesting a defense of this price point.
Amid this period of consolidation, another trader named Crypto Tony identified two potential scenarios. He highlighted that $26,000 was still acting as a strong support level.
Tony mentioned, “I am still looking for that dip down to $26,100 and a bounce for a long trigger.” Alternatively, he would consider going long if Bitcoin managed to reclaim the $26,600 highs.
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Examining exchange behavior, trader Skew pointed out specific short-term trends among traders, particularly spot entities selling into bounces.
This indicated a pattern of aggressive positions being hunted heading into the next week.
Beyond Bitcoin’s weekly close, participants in the crypto market were eagerly anticipating a crucial macroeconomic event from the United States Federal Reserve scheduled for September 20th.
The Federal Open Market Committee (FOMC) meeting would decide on benchmark interest rates, with the prevailing expectation in the markets being that they would remain unchanged.
CME Group’s FedWatch Tool assigned a mere 2% probability to a surprise scenario.
It’s worth noting that Bitcoin had recently displayed a decreased sensitivity to macroeconomic data, and many believed that it would continue to trade within the range of $25,000 to $27,000 in the short term, even in the face of the upcoming FOMC meeting.
As popular trader Crypto Santa concluded, “Next week’s FOMC and Interest Rate decisions should induce some volatility, but BTC will likely continue to trade within $25k – $27k in the short-term.”
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Magic Eden, a prominent nonfungible token (NFT) marketplace, has made an exciting announcement that is set to revolutionize the world of digital collectibles.
They are now offering support for Solana’s compressed NFTs (cNFTs), presenting a game-changing alternative that combines cost-efficiency and scalability.
These innovative cNFTs distinguish themselves from conventional Solana NFTs by employing data compression techniques and storing the information off-chain.
This unique approach drastically reduces the fees required for minting, making it economically viable to produce NFTs in larger quantities.
Magic Eden firmly believes that cNFTs are poised to make waves across various industries such as gaming, music, events, and the metaverse.
This newfound flexibility opens doors for creators to embark on mass-produced collections, expanding their reach to wider audiences without incurring excessive costs.
Beyond catering to creators, Magic Eden also aims to democratize NFT ownership by lowering the barriers to entry.
By minimizing the production costs associated with NFTs, the marketplace becomes an accessible gateway for newcomers looking to explore the world of digital collectibles.
Users can now amass NFTs without risking substantial funds, mitigating the potential financial pitfalls that come with this burgeoning asset class.
At the core of cNFTs is Solana’s state compression, a groundbreaking feature that enables the minting of up to 1 million NFTs for a mere $110.
This stands in stark contrast to the exorbitant costs of minting NFTs on Ethereum, where fees can range from $2.9 to well over $30 per NFT.
The cost-efficiency of cNFTs is set to disrupt the market, making NFT ownership more accessible to a broader audience.
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While the advantages of off-chain NFT hosting are evident, it is essential to acknowledge the potential challenges that may arise.
A notable incident in 2022 involved NFTs minted on the crypto exchange FTX, which displayed blank images as the exchange faced bankruptcy.
An engineer highlighted that these NFTs were hosted using Web2 technology, underscoring the importance of using blockchain-based solutions for NFT hosting to ensure the security and integrity of digital collectibles.
In conclusion, Magic Eden’s support for Solana’s cNFTs marks a significant leap forward in the NFT space.
This innovation promises to democratize NFT ownership, reduce costs, and foster the growth of various industries, while also reminding us of the critical importance of employing blockchain technology for secure NFT hosting.
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BitQuant, a renowned social media commentator in the cryptocurrency sphere, has set a bold price prediction for Bitcoin.
While many anticipate Bitcoin’s price to surge as it approaches its next block subsidy halving, BitQuant’s forecast suggests that it will reach new all-time highs even before this event.
In a recent post on X, formerly known as Twitter, BitQuant, operating under the pseudonym of a “central banker and Bitcoiner,” disclosed a pre-halving target exceeding $69,000.
He emphasized that Bitcoin would not reach its peak before the halving, but rather, it would attain a new record high.
Currently, Bitcoin has a little over six months left before the halving, an event that reduces miner rewards by 50% every four years.
Analysts contend that this reduction in supply emissions tends to catalyze a surge in Bitcoin’s price, acting as a launching pad for new all-time highs.
BitQuant, however, remains even more bullish in his outlook.
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He believes that not only will Bitcoin surpass its existing all-time high, established in 2021, before April, but it will eventually reach an impressive $250,000 per coin after the commencement of the next halving cycle in 2024.
Contrary to BitQuant’s optimism, the cryptocurrency market is marked by a stark division of opinions regarding Bitcoin’s price trajectory leading up to and following the halving.
While some share BitQuant’s optimism about higher prices by April, many adopt a more conservative stance.
Jesse Myers, a Bitcoin investor and author, dismisses the idea of BTC/USD hitting six figures before the halving.
Meanwhile, Filbfilb, co-founder of trading suite DecenTrader, projects a pre-halving BTC price ceiling of $46,000, barring any unforeseen black swan events.
As of September 15, Bitcoin was trading at approximately $26,400, marking a 1.3% increase in September so far, according to data from monitoring resource CoinGlass.
While the future remains uncertain, BitQuant’s prediction has certainly added to the ongoing debate about Bitcoin’s price trajectory, leaving the cryptocurrency community eager to see how events unfold in the coming months.
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