Bitcoin’s recent price drop to $30,098 has sparked discussions about the future of the cryptocurrency and the direction of its development.
Vitalik Buterin, co-founder of Ethereum, believes that the rise of projects like Ordinals signals the resurgence of a builder culture in the Bitcoin network.
In a Twitter Space conversation with Bitcoin proponents Eric Wall and Udi Wertheimer, Buterin praised Ordinals and its BRC-20 token standard as a rejection of the stagnant politics within the Bitcoin ecosystem.
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According to Buterin, Ordinals are reintroducing a culture of action and pushing back against the laser-eye movement, which he views as positive progress.
The main focus of the two-hour-long conversation revolved around scalability.
Wall expressed concerns about Bitcoin’s Lightning Network, stating that it struggles to scale for future users and frequently fails when processing medium-sized payments.
Buterin proposed that a solution would be to implement various layer-2 solutions and find ways to enhance the efficiency of the Bitcoin base layer.
He emphasized the importance of rollups and ZK-snark-based scaling solutions.
Wertheimer added that zero-knowledge rollups could potentially enable smart contracts on Bitcoin, creating a new execution environment.
However, proponents of the Ordinals project, such as Wall and Wertheimer, face criticism from traditional Bitcoin advocates.
Some argue that introducing NFTs and smart contracts on Bitcoin dilutes its primary function as a peer-to-peer cash network.
Samson Mow, CEO of Jan3, believes that Ordinals waste valuable block space that should be allocated to Bitcoin payments.
Wall responded to these criticisms by suggesting that Bitcoin could serve as a proof system for zero-knowledge proofs, avoiding network congestion.
He expressed the desire to utilize the Bitcoin base layer as a judge or arbiter of computations, rather than running them on-chain.
Wall urged the community to consider second layers as a means of achieving expressive capabilities, not just facilitating payments.
The discussion sparked controversy within the Bitcoin community, with Wertheimer criticizing Samson Mow and Adam Beck, CEO of Blockstream, for dismissing the conversation with Buterin.
The clash of opinions highlights the ongoing debate about the future of Bitcoin’s development and the potential for increased functionality within its network.
As Bitcoin enters this new era of development, it remains to be seen how the community will navigate these conflicting perspectives and shape the future of the world’s largest cryptocurrency.
Larry Fink, the CEO of BlackRock, the world’s largest asset management firm, recently vocalized his support for cryptocurrencies during an interview on Fox Business.
This comes as BlackRock applies to list a Bitcoin exchange-traded fund (ETF) in the U.S, a move that could revolutionize finance by providing an accessible investment tool linked directly to Bitcoin.
In the interview, Fink characterized cryptocurrency’s role as essentially “digitizing gold”, implying that it could serve as an alternative investment asset that isn’t tied to any specific currency.
He suggested that Bitcoin could provide investors with a way to protect against inflation and currency devaluation, signaling an international asset appeal.
Fink’s commentary on the crypto landscape has been consistent. He has weighed in on various important occurrences within the sector, such as the FTX downfall in 2022 and the growing intrigue surrounding Bitcoin.
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Given BlackRock’s influence, with over $9 trillion in assets under management as of April, Fink’s pro-crypto statements could trigger substantial impacts both within and outside the cryptocurrency domain.
Crypto enthusiasts online have reacted favorably to Fink’s pro-Bitcoin commentary, with some predicting a potential surge in certain asset prices, referred to as the “Fink Pump”.
At the time of the interview, Bitcoin’s price stood at $30,473, a slight 1% decline from the previous 24 hours.
It’s worth noting that under Fink’s leadership, BlackRock has pursued the launch of a Bitcoin ETF, with crypto giant Coinbase as a surveillance partner.
However, the outcome remains uncertain as the U.S Securities and Exchange Commission has previously rejected all spot Bitcoin ETF applications.
Fink’s positive stance on crypto could potentially tip the scales in favor of such advancements, marking a milestone for cryptocurrency integration into traditional finance.
Bitcoin miners experienced a significant boost in earnings during the second quarter of 2023, as transaction fees reached a staggering $184 million.
This figure surpasses the total transaction fee earnings for the entire year of 2022, showcasing the remarkable growth in profitability.
The latest data from cryptocurrency analytics platform Coin Metrics reveals that this represents a remarkable increase of over 270% from the first quarter of 2023.
Moreover, it marks the first time since the second quarter of 2021 that quarterly transaction fees have exceeded $100 million.
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This surge in fees can be attributed to two key factors. Firstly, Bitcoin’s price surge played a crucial role in bolstering top-line revenues.
Additionally, the introduction of BRC-20, a new token standard on the Bitcoin network, has expanded the possibilities for various use cases and accelerated the scalability of the network through the Lightning Network.
It is important to note that transaction fees accounted for only 7.7% of the total $2.4 billion earned by miners throughout the quarter.
The majority of their earnings still came from Bitcoin block rewards, which currently stand at 6.25 BTC per solved block.
However, this reward is set to decrease to 3.125 BTC following the network’s anticipated halving in May 2024.
Beyond their substantial earnings, Bitcoin miners had additional reasons to celebrate in Q2.
The blocking of the proposed Digital Asset Mining Energy tax by the Biden administration was a notable win for the mining industry.
Additionally, U.S.-based miners benefited from favorable macroeconomic conditions, leading to lower electricity prices due to receding inflation pressures.
Despite these positive developments, the mining fee market has become increasingly competitive as Bitcoin’s hash rate continues to reach new all-time highs.
Coin Metrics reports that the network’s efficiency has improved with the adoption of advanced ASICs like the S19 XP.
The fierce competition underscores the evolving landscape of Bitcoin mining and highlights the need for miners to stay ahead in this rapidly changing environment.
In conclusion, Bitcoin miners enjoyed a highly profitable second quarter of 2023, with transaction fees soaring to $184 million.
This milestone reflects the substantial growth in Bitcoin’s value and the emergence of new token standards.
However, miners must remain vigilant as competition intensifies, and they face the challenges of future halvings and a dynamic mining industry.
According to Blockstream CEO Adam Back, the Bitcoin ecosystem has been hindered by the prevalence of initial coin offerings (ICOs) and the subsequent focus of venture capitalists (VCs) on non-Bitcoin investments.
In a conversation with Cointelegraph’s Joseph Hall at the Lugano Plan B Summer School in Switzerland, Back highlighted the disparity between the lack of VC investment in Bitcoin and its dominant position in the overall cryptocurrency market.
Back referred to a market research report by Trammell Venture Partners, which revealed that VC flows into the ICO frenzy surged after the launch of Ethereum and smart contracts.
However, this trend has declined in recent years as investors sought early liquidity by purchasing discounted tokens and selling them to retail investors before the products were even available.
Back argued that although ICOs generated profits for investors, they often failed to deliver usable products due to misaligned incentives.
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The Trammell Ventures report indicated that 97% of VC investments in recent years went into “crypto” rather than Bitcoin.
Back emphasized that ICOs, altcoins, and discounted tokens attracted significant investor attention, which was surprising considering the actual real-world utility and adoption of Bitcoin.
He noted that exchange volume primarily consisted of Bitcoin, while the majority of VC spending went to “crypto” ICOs, highlighting the misallocation of resources.
Back pointed out that the underfunding of the Bitcoin space by these types of investors hindered innovation and the creation of valuable products.
However, he also mentioned a positive trend: investment in Bitcoin-related startups, especially at the early stage, had doubled in the last year, indicating renewed interest.
In addition to the discussion on VC funding, it was revealed that Twitter co-founder Jack Dorsey donated $5 million to Brink, a nonprofit organization that supports Bitcoin developers.
Back’s company, Blockstream, and Lightning Labs were recognized as significant contributors to the ongoing development of the Bitcoin protocol, with each employing eight developers dedicated to maintaining the leading cryptocurrency.
Overall, the impact of ICOs on the Bitcoin ecosystem has been significant, with VCs showing a preference for non-Bitcoin investments.
However, recent trends suggest a shift in funding behavior, with renewed interest in Bitcoin-related startups and increased support for Bitcoin developers.
This development bodes well for the continued innovation and advancement of the Bitcoin ecosystem.
The Law Commission of the United Kingdom is advocating for the establishment of a unique category of personal property that caters to the distinct characteristics of cryptocurrencies and digital assets.
In response to a directive from the British government, the commission conducted a comprehensive analysis of common law frameworks in England and Wales to determine how they can effectively accommodate digital assets, including non-fungible tokens (NFTs) and cryptocurrencies.
The most notable recommendation put forth by the commission is the creation of a fresh and distinct category of personal property specifically for digital assets.
The commission intentionally refrained from defining clear boundaries for this proposed category, asserting that the determination of which digital assets fall within this framework should be left to the discretion of the U.K.’s common law system.
According to a statement released by the commission and shared with Cointelegraph, the introduction of a new personal property category would enable a nuanced approach to recognizing a broad spectrum of digital assets, ranging from cryptocurrencies to digitized instruments like carbon emission credits or export quotas.
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In addition to this, the Law Commission proposed the establishment of a panel consisting of industry-specific technical experts, legal practitioners, academics, and judges.
This panel would be responsible for providing non-binding advice to courts regarding various legal issues and considerations pertaining to the digital asset sector.
Another key recommendation put forth by the commission is the development of a tailored legal framework aimed at facilitating the operation and enforcement of collateral arrangements.
Lastly, the commission called for statutory law reforms that would provide clarity on whether specific digital assets fall under the purview of the U.K.’s Financial Collateral Arrangements Regulations of 2003.
The Law Commission’s review of the legal challenges associated with the cryptocurrency sector commenced in October 2022 at the request of the Ministry of Justice.
Subsequently, in March 2023, the U.K. Treasury and Home Office announced their intentions to implement robust regulations on the cryptocurrency sector to combat its potential misuse for criminal activities.
Asset management giant BlackRock’s recent filing for a Bitcoin exchange-traded fund (ETF) has taken an interesting turn with the inclusion of a “surveillance-sharing agreement” with Coinbase, a leading cryptocurrency exchange.
The filing, made on June 29 with the United States Securities and Exchange Commission (SEC), requested a rule change to allow the listing of BlackRock’s Bitcoin ETF on the Nasdaq stock exchange.
The document revealed that a June 8 agreement between Nasdaq and Coinbase was designed to enhance the exchange’s market surveillance program and grant access to data on spot Bitcoin trades.
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This announcement followed ARK Investment Management’s amendment to its own spot Bitcoin ETF application, which incorporated a surveillance-sharing agreement with the Chicago Board Options Exchange (Cboe) and an undisclosed U.S.-based crypto exchange.
Speculation arose that the agreement was with Coinbase, potentially conflicting with BlackRock’s ETF application.
On June 30, the SEC reportedly stated that the crypto ETF filings with Nasdaq and Cboe were insufficiently clear and comprehensive, urging the applicants to provide additional information on surveillance arrangements.
It is worth noting that BlackRock initially submitted its application for the spot Bitcoin ETF on June 15.
Despite several market participants submitting ETF applications linked to cryptocurrency investments, the SEC has yet to approve any spot ETF related to crypto.
In response to the denial of its spot Bitcoin ETF in June 2022, Grayscale Investments filed a lawsuit against the SEC, accusing the regulator of applying inconsistent treatment to similar investment vehicles.
The inclusion of surveillance-sharing agreements in these recent ETF filings reflects a growing emphasis on market surveillance and investor protection.
Regulators are keen to ensure that proper monitoring mechanisms are in place to prevent market manipulation and illicit activities within the crypto space.
By partnering with trusted cryptocurrency exchanges like Coinbase, BlackRock and ARK Investment Management aim to address the SEC’s concerns and provide a transparent and secure environment for investors looking to access Bitcoin through regulated investment vehicles.
As the SEC continues its evaluation of the latest ETF filings, the crypto industry eagerly awaits a breakthrough in the approval of a spot Bitcoin ETF, which could potentially open up new avenues for institutional and retail investors to participate in the crypto market.
According to a report by CoinShares, institutional investors have primarily concentrated on Bitcoin in the past two weeks as the cryptocurrency achieves new 2023 highs.
The research, led by James Butterfill, revealed Bitcoin-centric products accounted for $310.6 million of the total inflows in the past fortnight, marking a considerable 98% of all digital asset flows.
This is a significant shift following nine continuous weeks of outflows.
In 2023, this is the second instance where Bitcoin products composed 98% of total inflows into cryptocurrency investment vehicles.
The recent boost aligns with Bitcoin’s escalating price and market dominance.
The surge is widely attributed to the Bitcoin ETF application by BlackRock on June 15, followed by similar filings from Invesco, Fidelity, Wisdom Tree, and Valkyrie.
Since these submissions, Bitcoin’s price has seen a substantial increase of 25.2%, valued at $31,131.
Additionally, Bitcoin’s market dominance, gauged by its market cap compared to the total market cap of all cryptocurrencies, rose to 51.46%.
Contrastingly, Ethereum investment products registered inflows of $2.7 million last week, marking the second consecutive week of inflows and breaking a prolonged outflow trend.
Fireblocks CEO, Michael Shaulov, indicated in a conversation with Cointelegraph that institutional investors were interested in core assets like Bitcoin and Ether, but less enthusiastic about alternate cryptocurrencies.
Shaulov explained that the Ethereum narrative revolves around the likelihood of future tokenization ecosystems being based on Ethereum Virtual Machine (EVM).
This factor could boost Ethereum’s utility. However, for Bitcoin, the narrative is less defined, but most investors recognize the cryptocurrency’s essentiality in their portfolio.
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Bitcoin (BTC) has been trading within a narrow range in recent days, but its remarkable 84% rally in 2023 remains a significant achievement.
This impressive recovery in Bitcoin’s price has also contributed to the rise of several altcoins, which have experienced substantial gains from their yearly lows.
As the second half of the year commences, the burning question on every investor’s mind is whether the rally will continue.
Data from CoinGlass reveals that since 2013, July has only seen three negative monthly closes, with the largest decline being 9.69% in 2014.
This indicates that the bulls currently have a slight advantage.
The recent surge in Bitcoin and altcoins can be attributed in large part to the hopes surrounding the approval of a spot Bitcoin exchange-traded fund by the United States Securities and Exchange Commission.
However, any negative news on this front could quickly shift the sentiment to bearish, resulting in a significant sell-off.
At present, Bitcoin and select altcoins are displaying strength. Let’s examine the charts of the top five cryptocurrencies that may sustain their upward movement in the coming days.
Bitcoin’s price analysis indicates that it continues to trade near the strong overhead resistance at $31,000.
This suggests that the bulls are not in a hurry to take profits as they anticipate another upward surge.
Typically, a consolidation near a crucial overhead resistance leads to an upward breakout.
The rising 20-day exponential moving average ($29,278) and the positive relative strength index (RSI) indicate that the path of least resistance is upwards.
If the bulls manage to propel and maintain the price above $31,000, the BTC/USDT pair is likely to initiate the next leg of the uptrend.
This bullish momentum may push the price above the immediate resistance at $32,400, potentially propelling the pair further towards $40,000.
On the other hand, if the bears regain control, they would need to sink the price below the 20-day EMA, potentially leading to a decline towards the 50-day simple moving average ($27,622).
Litecoin’s price analysis reveals that it recently surged above the descending channel and broke the overhead resistance at $106 on June 30, signaling the resumption of the uptrend.
Although the bears briefly pulled the price back below the breakout level on July 1, the bulls quickly bought the dip.
If buyers successfully sustain the price above $106, it increases the likelihood of a continued rally. In that case, the LTC/USDT pair could soar towards the overhead resistance zone between $134 and $144.
However, a slip and sustained price drop below $106 would indicate that bears are selling at higher levels, potentially leading to a decline towards the psychological level of $100 and the breakout level from the channel.
Monero’s price analysis suggests that it rose above the downtrend line on June 23, invalidating the developing descending triangle pattern.
This failure of the bearish pattern often results in a short squeeze, as seen in the XMR/USDT pair’s surge from $150 on June 23 to $171 on June 27.
After the sharp rally, the price has been consolidating between $171 and $160.
This consolidation indicates that the bulls are holding their positions, anticipating another upward move.
If buyers manage to push the price above $171, the pair may initiate the next leg of the up-move, potentially skyrocketing to $187.
However, a drop back below the 50-day SMA ($149) would suggest bearish control.
Aave’s price analysis indicates that the pair has been trading within a descending channel pattern for several weeks.
However, recent price action suggests a change in sentiment, as the bulls are now buying on dips instead of selling during rallies.
The repeated retests of the resistance line weaken it over time. The rising 20-day EMA and the positive RSI indicate an upside bias.
If buyers successfully propel and maintain the price above the channel, the AAVE/USDT pair may embark on a new upward move towards $84.
On the downside, the 20-day EMA serves as crucial support, and a break below it may prolong the pair’s time inside the channel.
Maker’s price analysis reveals that the pair is attempting to start an upward move.
The recent dip to the moving averages between June 24 and 28 indicated demand at lower levels. The rising 20-day EMA and the overbought RSI favor the bulls.
However, the strong selling pressure observed at higher levels suggests caution.
If buyers manage to break above the downtrend line, the MKR/USDT pair may rally towards $979.
On the other hand, a drop below $772 would indicate weakness and potentially lead to a deeper correction towards the 20-day EMA.
In conclusion, Bitcoin and select altcoins are currently displaying strength in their price movements. While Bitcoin is trading near a crucial resistance level, the charts suggest an upward bias.
Litecoin, Monero, Aave, and Maker also show positive signs, but caution is advised as there may be some resistance at higher levels.
Traders and investors should closely monitor these cryptocurrencies to assess their potential for continued upward movement or a shift in market sentiment.
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Venture capitalist Tim Draper has revised his projected timeline for his bitcoin price prediction, acknowledging that his previous forecasts were off.
In a tweet on Friday, Draper revealed that when bitcoin was valued at $4,000, he had predicted it would climb 60 times and reach $250,000 by now.
However, the cryptocurrency ended June below $31,000, prompting Draper to admit that his prediction would take longer to materialize.
He stated that it may now take an additional two years for his $250,000 projection to come true.
Initially, Draper had predicted that bitcoin would reach $250,000 by the end of 2022. However, on December 31, 2022, he acknowledged that his forecast had missed the mark.
Nevertheless, he remained adamant that BTC would reach the predicted level before the halving event in 2024.
With his forecast failing to materialize in December 2022, Draper extended the timeframe for his BTC price prediction by six months, setting a new deadline of mid-2023.
In an interview with the Observer, he confidently declared that if this timeframe also proves unsuccessful, he is certain bitcoin will hit the $250,000 milestone before the end of 2024.
Draper expressed his confidence, stating, “I am almost 100 percent sure I will be right in 18 months.”
Additionally, he believes that increased adoption by women will contribute to the surge in bitcoin’s price beyond his estimate.
However, in his recent tweet, Draper revised his projection yet again. He now believes it may take until the end of June 2025 for bitcoin to reach the coveted $250,000 price point.
Draper has not only focused on price predictions but has also raised concerns about cryptocurrency regulation.
He criticized the U.S. Securities and Exchange Commission (SEC) and its chair, Gary Gensler, for their enforcement-focused approach to regulating the crypto industry.
Draper argued that “regulation by enforcement” is detrimental to the economy and highlighted that such practices are also negatively impacting China.
Despite the delays and challenges, Draper remains optimistic about bitcoin’s future trajectory.
While his previous predictions may not have come to pass, he maintains that BTC will eventually reach the $250,000 mark, albeit with an extended timeline.
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Exchange operator Cboe has resubmitted an application with the U.S. Securities and Exchange Commission (SEC) to launch a bitcoin exchange-traded fund (ETF) in collaboration with asset manager Fidelity.
Cboe aims to address concerns raised by the SEC regarding the clarity and completeness of its initial filing. The SEC had previously raised similar concerns with Nasdaq over a spot bitcoin ETF filing by BlackRock.
One of the key issues was the failure to disclose the crypto-trading platforms that would enter into surveillance-sharing agreements to detect fraud in the bitcoin markets.
In addition to the Fidelity ETF, Cboe has also resubmitted listing applications for bitcoin ETFs by WisdomTree, VanEck, and a joint effort by Invesco and Galaxy.
Cboe intends to enter into a surveillance-sharing agreement with Coinbase for all these filings.
The SEC, Cboe, Nasdaq, Fidelity, and BlackRock declined to comment on the matter, while Coinbase was unavailable for comment.
It is worth noting that the SEC recently filed a lawsuit against Coinbase for failing to register as an exchange. According to Cboe’s Fidelity bitcoin ETF filing,
Coinbase represented roughly half of the U.S. dollar-bitcoin trading volume in May.
Coinbase has responded by filing a letter in federal court, seeking the dismissal of the SEC lawsuit, arguing that the regulator lacks authority to pursue civil claims since the crypto assets traded on its platform are not considered securities.
In addition to the Coinbase lawsuit, the SEC is also suing Binance, alleging that the world’s largest crypto-trading platform is involved in deceptive practices.
Concerns have been raised about the lack of transparency and auditability in the cryptocurrency market, with claims of rampant manipulation.
The recent filings for bitcoin ETFs by BlackRock and Fidelity have led to a surge in the price of bitcoin, reaching one-year highs and rising over 20% since June 15.
Despite the SEC’s request for more information on the ETF applications, the fact that the price of bitcoin has remained stable suggests that sentiment in the market is not turning bearish.
Analysts believe it was unrealistic to expect quick approval from the SEC, as the agency has previously rejected numerous spot bitcoin ETF applications due to concerns about fraudulent practices and investor protection.
Overall, Cboe’s renewed applications for bitcoin ETFs, along with similar filings by other firms, reflect the growing interest in providing regulated investment vehicles for cryptocurrencies.
However, the approval process still faces regulatory hurdles and the need to address concerns related to market manipulation and investor protection.
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