Bitmain, a prominent cryptocurrency mining hardware manufacturer, and the now-bankrupt crypto mining entity, Core Scientific, have reached a significant agreement that involves a combination of equity and cash to advance their mining facility expansion plans.
Under this agreement, Bitmain will provide Core Scientific with 27,000 Bitcoin mining rigs in exchange for $23 million in cash and $53.9 million worth of common stock from the distressed mining company.
Beyond the hardware procurement, the two companies have also inked a fresh hosting arrangement aimed at supporting Bitmain’s mining endeavors.
The deal’s finalization occurred in August, marked by a court filing that spotlighted Bitmain’s intention to trade mining hardware for cash and equity within the context of Core Scientific’s restructuring blueprint.
This restructuring plan encompassed other entities like Anchorage, BlockFi, and Mass Mutual Asset Finance.
Notably, aside from Anchorage, all three firms opted for a combination of cash and equity as a means to settle their claims.
Bitmain’s ambitious expansion and investment strategy are poised to come to fruition by the fourth quarter of 2023, contingent upon approval from a judge.
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Once greenlit, this hardware infusion could potentially bolster Core Scientific’s hash rate by an impressive 4.1 exahashes.
Additionally, the two crypto mining collaborators have committed to collaborating on the enhancement of Bitmain’s legacy miners situated within Core Scientific’s data centers, with the ultimate goal of optimizing the firm’s operational efficiency.
Core Scientific’s financial woes led to their Chapter 11 bankruptcy filing in December 2022, with the primary drivers being the financial crisis and the declining value of Bitcoin.
The company faced mounting challenges in the lead-up to its eventual collapse, primarily due to the turbulent conditions prevailing in the cryptocurrency market during that period.
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A recent publication from the Institute of Risk Management (IRM) has drawn attention to the potential of Bitcoin (BTC) to serve as a catalyst for a worldwide energy transition.
The report, authored by members of the IRM Energy and Renewables Group, Dylan Campbell and Alexander Larsen, bears the title “Bitcoin and the Energy Transition: From Risk to Opportunity.”
This comprehensive analysis challenges the prevailing notion that BTC poses a threat due to its energy-intensive nature and instead sheds light on its capacity to instigate transformative changes in the global energy landscape.
The IRM report underscores the indispensable role of energy in contemporary society and the growing demand for sustainable, cost-effective, and clean energy sources.
Notwithstanding the criticisms regarding Bitcoin’s substantial energy consumption, the study offers a more nuanced perspective by elucidating the potential advantages BTC could bring to the energy sector.
One of the most noteworthy findings within the report is the assertion that Bitcoin mining has the potential to reduce global emissions by as much as 8% by 2030.
This ambitious target can be achieved through the conversion of wasted methane emissions into less harmful byproducts.
The report elucidates a theoretical scenario in which captured methane is harnessed to power Bitcoin mining operations, effectively mitigating the release of methane into the atmosphere.
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Furthermore, the report outlines additional opportunities for Bitcoin to make meaningful contributions to the energy sector.
It suggests that Bitcoin could enhance energy efficiency by facilitating electricity grid management through the deployment of Bitcoin miners and the transfer of excess heat generated by mining operations to greenhouses, thus optimizing resource utilization.
The authors of the IRM report articulate their perspective succinctly: “We have shown that while Bitcoin is a consumer of electricity, this does not translate to it being a high emitter of carbon dioxide and other atmospheric pollutants.
Bitcoin can be the catalyst to a cleaner, more energy-abundant future for all.” In essence, the report underscores the potential of BTC not only to coexist with the imperative for a sustainable energy future but also to actively drive positive change within the energy sector.
In conclusion, the IRM’s report challenges the prevailing narrative surrounding Bitcoin’s environmental impact, positing that BTC has the potential to be a constructive force in shaping a cleaner, more energy-rich global future.
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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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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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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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