A novel development has taken the cryptocurrency world by storm as the Alpha project has introduced a groundbreaking community-based social token ecosystem within the Bitcoin network.
Alpha, positioned as a decentralized social network protocol, shares similarities with the well-known Ethereum-based platform Friend.tech.
Its primary function is to enable users to monetize their online presence and content creation by utilizing social tokens.
Distinguishing itself from Friend.tech, Alpha employs a unique structural composition.
It hinges on the security and immutability of the Bitcoin blockchain for finality, while data storage is facilitated through the Polygon blockchain.
Notably, the project has introduced Trustless Computer as its proprietary scaling network for Bitcoin. Co-founder Punk3700, operating under a pseudonym, eloquently described Alpha as “a rollup that rolls up to another rollup that rolls up to Bitcoin.”
In an exclusive conversation with Cointelegraph, Punk3700 shed light on the intricate architecture of Alpha. He explained, “Alpha implies a layered architecture that includes NOS-TC.
Trustless Computer (TC) is an optimistic rollup layer that directly integrates with the Bitcoin blockchain. NOS is implemented as another optimistic layer, enhancing scalability on the Bitcoin network.”
These optimistic rollup layers, he emphasized, collaborate harmoniously to ensure both security and efficiency in the deployment of decentralized applications.
Punk3700 elucidated further, stating, “NOS adopts a hybrid design that leverages Bitcoin for data validity and Polygon for data storage, ultimately settling on Bitcoin.”
This ingenious approach not only enhances flexibility in data storage but also serves to mitigate the exorbitant transaction fees associated with Bitcoin.
The user-centric ethos of Alpha is exemplified by its community-driven development approach.
Punk3700 revealed that the project was conceived and launched in an astonishingly brief 48-hour window.
To further incentivize user engagement, a referral program is currently in development, allowing users to earn 1% of their friends’ trading volume.
This move is poised to encourage user participation and motivate content creators to produce valuable content.
Meanwhile, Alpha is experiencing rapid user growth, contrasting with recent developments at Friend.tech.
The latter platform recently announced penalties for users engaging with forked or copycat versions of its platform, as it seeks to reward loyal users during its beta phase.
This decision followed concerns about a decline in key metrics, including user activity, inflows, and volume.
Additionally, Friend.tech grappled with rumors of a data breach, which the platform vehemently denied, assuaging fears regarding the exposure of over 100,000 user’s personal data.
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Cryptocurrencies, primarily Bitcoin, have emerged as a dominant component of South Korea’s overseas assets, according to the latest report released by the country’s National Tax Service (NTS).
In an official announcement made on September 20, the NTS disclosed that a total of 1,432 individuals and corporations had reported overseas accounts denominated in cryptocurrencies during the current year.
The cumulative value of these reported cryptocurrency holdings amounted to a staggering 130.8 trillion South Korean won, which equates to approximately $98 million.
This remarkable figure represents more than 70% of the overall reported value of all overseas assets.
The official data revealed that a total of 5,419 entities had filed reports regarding their offshore financial accounts, encompassing a diverse range of assets, such as cryptocurrencies, stocks, deposits, and savings.
The aggregate worth of these assets was measured at 186.4 trillion won, or around $140 million.
Although cryptocurrencies were the single largest category in terms of the value of assets reported, deposits and savings accounts were predominant in terms of the number of reports filed.
A total of 2,952 individuals and companies reported holdings worth 22.9 trillion won, equivalent to $17 million.
Additionally, another 1,590 entities disclosed the possession of stocks valued at 23.4 trillion won, or approximately $17.6 million.
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To ensure compliance with tax regulations, the NTS has outlined its intention to intensively scrutinize individuals and entities that fail to report their overseas financial accounts.
The agency has been collecting comprehensive cross-border information exchange data, foreign exchange data, and notifications from relevant agencies, and it is prepared to levy fines on those who breach the reporting rules.
The NTS emphasized the global trend of tax authorities collaborating to exchange information, as part of efforts to counter potential tax base erosion resulting from virtual assets.
South Korea, known for its crypto-friendly environment, has become increasingly vigilant regarding cryptocurrency tax regulations, even confiscating significant amounts of cryptocurrency from tax evaders.
In August 2023, the city of Cheongju in South Korea reiterated its commitment to seizing cryptocurrency from local tax delinquents.
Previously, the South Korean government had postponed the implementation of a 20% tax on crypto gains, originally scheduled for early 2023, now rescheduled for 2025.
These actions underscore the evolving landscape of cryptocurrency taxation in South Korea.
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Cryptocurrency Market Sees Bullish Momentum Amidst Bitcoin’s Recovery
On September 20, Bitcoin stood firm at $27,000 as the cryptocurrency world awaited a critical macroeconomic event.
Cointelegraph Markets Pro and TradingView data indicated a shift in focus towards higher BTC prices compared to the previous week.
The crypto markets demonstrated confidence in the upcoming decision regarding interest rates by the United States Federal Reserve.
The Federal Open Market Committee (FOMC) was scheduled to announce its latest changes at 2 pm Eastern Time on that very day.
As of the report, the consensus was overwhelmingly in favor of the rates remaining unchanged, with a 99% probability according to CME Group’s FedWatch Tool.
Financial commentator Tedtalksmacro noted that core CPI inflation was aligning with the Fed’s target, suggesting a potential acknowledgment by the Fed that inflation was trending as desired.
However, the event was expected to bring about short-term market volatility.
Analyzing the BTC/USD order book on Binance, Material Indicators highlighted thin liquidity around the spot price, indicating potential for increased volatility.
They also anticipated that the speech and press conference by Fed Chair Jerome Powell would further impact Bitcoin’s price.
Looking at the order book, there were bid-side liquidity levels around $26,650, with substantial bids at $25,000.
On the upside, sellers were positioned at $27,450, which marked the local BTC price high for September.
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Traders had their eyes on key levels and expected the FOMC’s decision to trigger various reactions in the market.
Some traders foresaw challenges to range levels as part of the FOMC’s impact.
Popular trader Daan Crypto Trades anticipated that stop-loss orders might be triggered during the volatility.
Others, like trader Jelle, predicted “choppy waters” for Bitcoin. Trader Skew also anticipated an active trading environment following the FOMC announcement.
Crypto Tony emphasized the importance of the $26,800 support zone for Bitcoin bulls. He noted that maintaining this level was crucial for his long position, highlighting the potential risk of creating a deviation below it.
In conclusion, Bitcoin remained stable at $27,000 on September 20, with the crypto community eagerly awaiting the outcome of the FOMC’s interest rate decision, which was expected to have short-term effects on market volatility and key price levels.
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Bitcoin may experience a surge in upside volatility, according to John Bollinger, the creator of the Bollinger Bands volatility indicator.
In a recent post on X (formerly Twitter), Bollinger pointed out that Bitcoin was poised for a significant breakout.
Bitcoin had reached new highs in September, challenging resistance levels that had eluded it since mid-August, as reported by data from Cointelegraph Markets Pro and TradingView.
Bollinger, however, found these developments encouraging, relying on his Bollinger Bands indicator, which utilizes standard deviation around a simple moving average to gauge price ranges and volatility.
Currently, BTC/USD is exhibiting daily candles that touch the upper band of the Bollinger Bands, which can signify an impending reversal back to the center band or a surge in upside volatility.
The recent narrow Bollinger Bands on Bitcoin contribute to the optimism that the latter scenario will prevail.
Bollinger noted, “And there is the first tag of the upper Bollinger Band after a new set of controlling bars was established at the lower band.”
However, he cautioned that it’s too early to predict if Bitcoin will continue its upward trajectory along the upper band.
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This narrowing of the Bollinger Bands was previously observed in July and preceded a return to lower price levels.
Bollinger’s analysis aligns with the sentiments of seasoned Bitcoin traders and analysts on shorter timeframes.
Despite the recent strength in Bitcoin’s performance, there is a sense of caution in the market.
Various trendlines that previously acted as support are still above the current spot price.
On-chain monitoring resource Material Indicators advised X subscribers to be skeptical of bullish momentum.
The commentary from Material Indicators highlighted the presence of technical resistance at the Key Moving Averages and support at the LL (likely low).
It suggested that Bitcoin might trade within a range and emphasized the importance of upcoming tests of R/S (Resistance/Support) levels to gain clarity about Bitcoin’s direction in the coming week.
Additionally, Material Indicators referenced the impending decision by the United States Federal Reserve regarding interest rates.
This decision could potentially introduce sudden volatility and unreliable short-term trading signals, further complicating Bitcoin’s near-term outlook.
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Bitcoin Stabilizes at $26,500 After Hitting September Highs: Eyes on Federal Reserve’s FOMC Meeting
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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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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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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In August, the crypto markets experienced their most challenging month since Bitcoin hit rock bottom in November 2022.
Initially dismissed as a mere summer slump, this downturn turned out to be a significant market setback, primarily fueled by cascading liquidations in the derivatives sector.
This led to a daunting 7.3% loss in Bitcoin’s value and a 6.9% decline in Ether’s value.
Grayscale’s legal victory briefly provided respite, but prices quickly retraced to their month-start levels, triggering one of the largest liquidation events in crypto, resulting in over $1 billion in losses as Bitcoin plummeted to $26,000.
Adding salt to the wound, venture capital (VC) investments plunged by a staggering 42.7% from July to August, amassing a modest $401.9 million across 77 deals.
This marks a sharp decline in crypto industry investment, which had been on an upward trajectory until May of that year.
Cointelegraph Research’s “Investor Insights Report” delves into the performance of various digital asset sectors in this challenging environment, providing a concise monthly roundup of crypto developments spanning venture capital, derivatives, decentralized finance (DeFi), regulation, mining, and more.
Venture capital investments in the blockchain sphere have been on the decline since the second quarter of 2022, reaching a new low of $401 million in 2023.
Infrastructure projects secured 18 deals, raking in $107 million in August, with centralized finance (CeFi) securing $100 million through just three deals.
These lagging investments hint at a potential resurgence once market sentiment shifts positively.
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Despite the gloom, the words of Tim Draper resonate: “Investors always get it wrong.”
This suggests that the downtime may be the opportune moment to identify quality projects for long-term holding, anticipating the return of the bull market.
On August 25th, $1.9 billion in monthly Bitcoin options expired, stirring speculation in the markets.
Although Bitcoin’s price remained relatively stable during this period, excitement surged following news of the SEC’s court defeat against Grayscale.
This victory potentially paves the way for a future spot Bitcoin ETF.
The price briefly soared to $28,000 before retreating to the $26,000 range.
While short-term gains were elusive, there are promising signs of market support at this level.
Cointelegraph’s Research team boasts a blend of top talents in the blockchain industry, blending academic rigor with practical experience.
With decades of collective expertise in traditional finance, business, engineering, technology, and research, the team is dedicated to delivering accurate and insightful content, exemplified by their latest Investor Insights Report.
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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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A Bitcoin miner recently found themselves in an unexpected predicament involving a substantial sum of cryptocurrency.
They received a staggering 19.8 BTC in fees from blockchain infrastructure firm Paxos, only to later return the funds.
The reason behind this dramatic turn of events was Paxos’ claim that they had made a grievous mistake, inadvertently paying over $500,000 in transfer fees.
The cryptocurrency community was left bewildered on September 10th when a Bitcoin transaction caught their attention.
This transaction entailed paying approximately $500,000 in fees to move a mere $2,000, a stark contrast to the typical network fee of around $2.
Various speculations circulated within the community, with some speculating that the error occurred due to a data copy-paste mishap, inadvertently placing an output value into the fee box without verification.
Subsequently, on September 13th, Paxos stepped forward and acknowledged responsibility for the transaction mishap.
They reassured their users that their funds remained secure and were the rightful property of Paxos.
Additionally, Paxos clarified that PayPal had no involvement in the mistake, conceding that the error was entirely their own.
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Almost a day after Paxos’ admission, the Bitcoin miner who had received the excessive fees turned to social media, specifically X (formerly Twitter), to voice their frustrations.
Ultimately, they agreed to refund the entire amount to Paxos.
Seeking advice from their X followers, the miner asked what course of action they should take, with a majority of respondents suggesting the funds be distributed to other Bitcoin miners.
However, it appears this counsel was not heeded, as blockchain data from Bitcoin explorer Mempool confirmed that the funds were indeed returned to Paxos on September 15th.
This incident is not the first time substantial transaction fees have been lost due to human error. In 2019, an Ethereum user suffered a loss of nearly $400,000 in Ether after mistakenly inputting values in the wrong fields.
Fortunately, the Ethereum mining pool Sparkpool intervened and helped the user recover half of the lost funds, highlighting the importance of community support and cooperation in the world of cryptocurrency.
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