In a pivotal decision, the United States Patent and Trademark Office (USPTO) has declined the Dogecoin Foundation, Inc.’s application to trademark a design of a gold circular medallion featuring the iconic Shiba Inu dog and the letter “D”. This decision, which could set a legal precedent, is seen as a reinforcement of the decentralized ethos of the cryptocurrency.

Dogecoin Foundation Gets Trademark Denied

The Dogecoin Foundation had sought to register the mark for a range of services, including educational conferences in blockchain technology and software development services. However, the USPTO denied the trademark application.

The USPTO’s refusal, detailed in an official letter, cites multiple grounds. The primary refusal is based on the assertion that the applied-for mark is “generic for the applicant’s services”. The USPTO states: “generic terms cannot be rescued by proof of distinctiveness or secondary meaning no matter how voluminous the proffered evidence may be.” This means that even if a term or symbol has achieved widespread recognition, it cannot be trademarked if it’s deemed generic.

Descriptive Nature: The USPTO also maintained its position that the applied-for mark is “merely descriptive” of the applicant’s services. The application’s scope covered a broad range of services, from educational conferences in blockchain technology to software development in distributed computing platforms. The mark, in the USPTO’s view, simply describes the services rather than distinguishing them.

Failure To Function: Another significant ground for refusal is that the applied-for mark is a universal symbol that does not function as a trademark or service mark. The USPTO argues that the mark would be perceived by consumers as merely conveying information about the services rather than acting as a unique identifier of the source.

Evidence Of Acquired Distinctiveness: The Dogecoin Foundation, Inc. provided evidence, including a declaration by its president and a claim of acquired distinctiveness based on five or more years’ use. However, the USPTO found this evidence insufficient, especially given the highly descriptive nature of the mark Dogecoin. The USPTO emphasized that a more descriptive term requires more substantial evidence to prove acquired distinctiveness.

Comparison With Other Cryptocurrencies: The Dogecoin Foundation tried to draw parallels with the Ethereum cryptocurrency, arguing that the existence of Ethereum as a registered mark undermines the USPTO’s stance. However, the USPTO highlighted that the Dogecoin cryptocurrency did not have a consistent owner from its inception, differentiating it from Ethereum.

DOGE Community Reacts

The cryptocurrency community, especially Dogecoin enthusiasts, have generally lauded the decision. The sentiment is that the refusal maintains the decentralized nature of Dogecoin, preventing any single entity from claiming exclusive rights to its symbols.

Prominent Dogecoin community members have expressed their approval on social media. @RichDevX celebrated the examiner’s detailed response, while @mishaboar noted the examiner’s careful consideration of Dogecoin’s history.

However, it’s crucial to understand that the USPTO’s decision is not final. The Dogecoin Foundation, Inc. has the option to respond to the refusals and provide further evidence or arguments in support of registration. The ruling is still subject to future assessments and potential legal challenges.

At press time, DOGE traded at $0.0638, sandwiched between the 20-EMA and 50-EMA in the 4-hour chart.

Source: Bitcoinist.com
Original Post: USPTO Rejects Dogecoin Foundation’s Trademark Application, What It Means

In a surprising revelation from the State Bank of Pakistan (SBP) in their 2022 financial stability report, the institution acknowledged the nascent, albeit “promising work” of Ripple and XRP, in the global payment ecosystem.

State Bank Of Pakistan Praises Ripple And XRP

“While crypto assets offer some benefits, the realization of these benefits still requires enabling pre-conditions,” the report states. “Furthermore, while some encouraging work is being conducted to support cross-border payments (e.g., through Ripple’s XRP), it still is only on a minuscule level compared to the volume of cross-border payments globally.”

The State Bank of Pakistan, in their 2022 financial stability report, takes a dim view of crypto, noting #XRP as encouraging work despite its small size compared to global payment volume.https://t.co/t3SQu9CRkZ pic.twitter.com/1tgTWEpSF0

— WrathofKahneman (@WKahneman) August 22, 2023

This comment comes amid a backdrop of evolving cryptocurrency dynamics and its penetration into mainstream finance. With the SBP recognizing the potential of cryptos like XRP in facilitating cross-border transactions, there’s a broader acknowledgment of the evolving financial landscape.

However, the bank maintains a cautious stance. The report went on to highlight the inherent risks that cryptocurrencies bring along, such as their potential use in money laundering and terrorism financing. It brought up the notorious case of Silk Road, the now-defunct dark web marketplace. Additionally, the document also referred to the collapse of the FTX crypto exchange and the disintegration of Terraform Labs’ projects, indicating the volatile nature of the crypto industry.

Despite the caveats, the SBP’s acknowledgment of XRP’s capabilities is noteworthy, especially against the background where the bank has not recognized any cryptocurrency as legal tender.

Stablecoins Gain Large Market Share

What’s intriguing is how the SBP’s view stands in contrast to the global traction cryptocurrencies, especially stablecoins, have gained recently. Alex Gladstein, Chief Strategy Officer at the Human Rights Foundation, pointed out the huge market share stablecoins have gained in 2022, according to a new study.

The report states that stablecoin settled over $11 trillion on-chain, dwarfing the volumes processed by PayPal ($1.4 trillion), almost surpassing the payment volume of Visa ($11.6 trillion) and reaching 14% of the volume settled by ACH an over 1% the volume settled by Fedwire.

At press time, the XRP price was trading at $0.5188. Thus, XRP has lost almost all the gains that were created as a result of the euphoria over Ripple’s victory against the US Securities and Exchange Commission. Currently, XRP is facing the 200-day EMA at $0.5251. If a breakout succeeds, $0.5540 would be the next target.

Source: Bitcoinist.com
Original Post: State Bank Of Pakistan Calls Ripple and XRP ‘Encouraging Work’

For months now, ex-SEC enforcement official John Reed Stark has been vocal about his speculation that a US Department of Justice (DOJ) action against Binance is imminent or has already been filed under seal. While these assertions haven’t yet materialized, Stark has taken to X once again, offering “yet another new reason” to bolster his claim.

Binance’s Alleged Ties To Sanctioned Banks

This time, Stark references a recent Wall Street Journal report, shedding light on the exchanges’ connections with sanctioned banks and its involvement in large-scale ruble-to-crypto trades. He mentioned, “The WSJ reports that via layers of intermediaries, Binance’s clients can turn funds at sanctioned banks into balances at Binance… Is this what it means to run an international money laundering service? IMHO, Yes.”

The report claims that Russians can exchange rubles for digital currencies, particularly stablecoins that are pegged to the dollar, which can then be swapped for fiat currencies at brokerages abroad or transferred into other crypto wallets as a form of payment. According to WSJ, the US DOJ is currently investigating whether Binance may violate US sanctions against Russia.

The broader crypto and legal community’s watchful eyes have been tracking emerging allegations against the exchange led by Changpeng Zhao (“CZ”). A comprehensive 136-page SEC complaint has suggested a “massive market manipulation scheme at Binance.” It alleges that certain Binance and CZ controlled entities might have co-mingled billions in customer funds, exposing investor assets to undue risks.

Another separate 76-page complaint from the U.S. Commodity Futures Trading Commission paints a picture of a “vast criminal enterprise at Binance,” emphasizing its potential evasion of pivotal anti-money laundering procedures.

Adding to the discussion, the esteemed XRP community attorney, John E Deaton, responded to Stark’s tweet, hinting at his anticipation regarding the DOJ’s delayed action. He queried, “I’m curious if you (or Joe) have an opinion or theory as to why the DOJ has not yet filed? Is there a strategic reason to wait?”

Joe Carlasare, contributing to the discourse, said, “I can’t come up with a good reason for the delay, but I still believe it’s coming.”

Stark, echoing the sentiments of the community, admitted, “John and Joe, I am equally confounded — though pleased (and relieved) that my take is aligned with such fine gentleman and legal scholars like yourselves.”

Too Big To Jail?

While Stark’s previous claims have yet to come to fruition, a recent report from Semafor has intensified concerns. It suggests the DOJ is carefully weighing potential fraud charges against Binance, balancing the legal action’s repercussions on the broader crypto ecosystem. Insider sources have alluded to fears reminiscent of a “bank run,” akin to what was witnessed with the now-bankrupt FTX platform.

This scenario could precipitate overwhelming withdrawal requests, jeopardizing consumer funds and potentially shaking the Bitcoin and crypto markets at large. In an attempt to avert such a scenario, alternative legal avenues, including levying fines or deferred/non-prosecution agreements, are being supposedly deliberated.

Though no formal indictment is on record, the increasing speculations and escalating allegations highlight the pivotal crossroads at which Binance stands. Remarkly, the BNB price has become under pressure in recent days again. At press, BNB stood at $213, risking a deeper drop.

Source: Bitcoinist.com
Original Post: US DOJ Action Vs. Binance Becomes More Likely, Warns Ex-SEC Official

The latest data on August 22 shows that the total daily fees generated from Bitcoin Ordinals on the world’s most valuable network have crashed from around $95,000 to $72,000, a 24% drop. The contraction mirrors the general performance of BTC prices which have been under pressure in the last two weeks, notably crashing last week and forcing the coin towards $25,000, looking at price action in the daily chart.

Bitcoin Ordinals Fees Sliding

According to Dune Analytics data, a platform that tracks the on-chain activity of various blockchains, including Bitcoin, the average daily fees generated from Bitcoin Ordinals stood at $71,709 as of August 21, down from $94,910 on August 14. This is a significant drop in activity and fees after an extended consolidation which saw Bitcoin Ordinals activity flat-line as BTC prices also moved horizontally for the better part of early August. 

From the on-chain activity, the slump in Bitcoin prices seems to affect ordinals minting. Extending from BTC price action, how the number of ordinals will be minted going forward is yet to be seen. However, as of August 22, over 26 million inscriptions were minted, generating over $50 million in fees for Bitcoin miners. 

Generally, since the Ordinals protocol allows users to “inscribe” items, including images or texts, to the smallest unit of BTC, that is, Satoshis, and add it to a block of transactions, miners are tasked to verify these blocks and, in the process, receive fees. Unlike Ethereum, Bitcoin relies on a proof-of-work consensus where miners are tasked with security and decentralization. 

These miners are critical in ensuring the safety of inscribed items. Blocks must be full for the network to be more secure and miners to be even more incentivized to mine and compete for rewards. Though blamed for bloating blocks and unnecessarily increasing fees, Bitcoin Ordinals ensure blocks are full and allow miners to earn higher fees.

Falling BTC Prices, Will Inscriptions Activity Fall?

On-chain data also shows that many inscribed items are primarily texts. Usually, the lighter they are, the lower the fees paid. Users who decide to inscribe big-size items have to pay more. Once there is this shift, Bitcoin blocks will become full faster, and those who scramble for their transactions to be added to the next block by miners will have to pay more in transaction fees.

Bitcoin remains under pressure when writing, and whether Ordinals activity and the minting of “NFTs” on the network will continue as it was in H1 2023 remains to be seen. In past cycles, it has been observed that dropping asset prices tend to affect on-chain activity, as seen in decentralized finance adversely (DeFi) total value locked (TVL) and in NFT scenes.

Source: Bitcoinist.com
Original Post: Bitcoin Ordinals Fees Crash 24% As BTC Dump Towards ,000

After weeks of sideways consolidation, Bitcoin suffered a nasty breakdown from its range and a 10% intraday plunge.

The scenario, however, could potentially be a whats referred to as a “head fake” — that in the coming weeks reverses back to above $31,000. If not, a more sustained downtrend is also possible.

Historic Bollinger Band Tightness Triggers 10% Crypto Crash

Bitcoin price has spent the last several months trading around $29,000, after starting the year off with a strong recovery from lows in January.

The record low volatility caused the BTCUSD 1W Bollinger Bands to reach the tightest in the cryptocurrency’s history. Low volatility phases always bring high volatility phases when they end, so Bitcoin has been like a ticking time bomb ready to explode in one direction or another.

This setup in the Bollinger Bands is called a Squeeze, which is valid after a related tool — Bollinger Band Width — reaches the lowest reading in the last six months. Remember, BTCUSD 1W hit the lowest ever.

The only problem is, once volatility arrived, prices exploded to the downside, causing more mass liquidations than during the FTX collapse. Is this a sign of a return into a bearish market, or could this be something called a “Head Fake?”

Why Bitcoin Could Be Preparing A Head Fake Higher

In John Bollinger’s book Bollinger on Bollinger Bands, he exclaims “Trader’s beware!” “There is a trick to The Squeeze, an odd turning of the wheel that you need to be aware of, the head fake,” Bollinger warns.

“Often as the end of a Squeeze nears, price will stage a short fake-out move, and then abruptly turn and surge in the direction of the emerging trend.”

Could this be what’s unfolding in Bitcoin right now? Later, when discussing how to use the indicator take positions as a breakout system, he revisits the Squeeze.

“Typically what you’ll see is a Squeeze, followed by a band tag, followed in turn by the real move,” Bollinger explains. “Most often this will occur within the bands and you won’t get a breakout signal until after the real move is under way,” he added.

As the chart above shows, Bitcoin remains at a point where a head fake could occur, with price reversing higher to the upper Bollinger Band and closing above it — generating a breakout signal. Bitcoin If Bitcoin continues down, the head fake is invalid. Thus, the next two weeks are critical in determining the “real” emerging trend.

#Bitcoin Bollinger Bands were the tightest ever and have only just started to expand to release volatility

But price went down. And has since paused. What next? A possible “head fake.”

The low volatility state we saw, followed by a return of volatility, is called a “Squeeze.”… pic.twitter.com/aP5ugbdUQd

— Tony "The Bull" (@tonythebullBTC) August 22, 2023

Source: Bitcoinist.com
Original Post: Why A Bitcoin “Head Fake” Is Bulls’ Best Hope

While most of the crypto market seems to have entered panic mode, one Bitcoin whale has gone on an incredible buying spree. The very young whale has only been here for three months but it now boasts one of the largest BTC holdings in the industry. However, the question for now is, while this whale has been buying up large quantities of BTC, have they been making a profit?

Bitcoin Whale Jumps To $3 Billion In 3 Months

The Bitcoin whale first appeared back in the middle of May 2023 starting with around 0.199 BTC worth $5,420 on its balance. But over the next few weeks, the whale would more than 100x its holdings, closing out the month of May with over 57,300 BTC, worth $1.59 billion at the time.

Despite its already substantial holdings, this whale would continue to add BTC to its balance and as data from BitInfoCharts show, the whale would almost 2x its balance from the end of May by the time that August rolls around.

At its peak, the Bitcoin whale held a total of 118,000.20 BTC worth around $3.72 billion when the digital asset’s price rose above $31,000 in mid-July. But presently, the whale’s holdings are down a fair amount from this point, due to the market moving unfavorably.

Is The BTC Whale Making Profit?

Over the course of the last three months, there have been no dips in the Bitcoin whale’s vast holdings. After its holdings jumped from 110,000 BTC to 118,300 BTC on June 29, the whale has held its stash even through the worst of the market.

As a result of its diamond-handing, there have been multiple points where there have been significant dips in the value of its holdings. The first took place between July 14 and 15 when its value went from an all-time high of $3.72 billion to $3.58 billion in the span of 24 hours.

Although there have been times when the price of BTC has seen small recoveries, the whale has not had much reprieve as its holdings are now worth over $700 million less compared to its peak. However, the whale’s implementation of a dollar-cost averaging investment strategy has helped to mitigate its losses which would’ve been substantial had all the BTC been bought at around $30,000.

Presently, the whale is still sitting on its 118,000 BTC which is now worth $3.084 billion. According to BitInfoCharts, the whale is currently nursing a $91.279 million loss from the Bitcoin price change.

Source: Bitcoinist.com
Original Post: This Bitcoin Whale Went From {$permalink} To Billion In 3 Months, But Is It Doing Well?

Friend.tech, the pioneering decentralized social media platform developed by the creators of Stealcam, has taken the digital world by storm in its mere two weeks of existence. 

This innovative app, built on Coinbase’s Base scaling network for Ethereum, has introduced a revolutionary concept – enabling users to buy and sell “keys,” originally referred to as “shares,” of their preferred X (formerly Twitter) accounts. 

Interestingly, within this short span, the platform has accumulated an impressive $1.68 million in protocol fees. Notably, it has outperformed nearly all on-chain protocols globally over the past 24 hours, trailing only Ethereum and Lido, as reported by DefiLlama.

Unlocking Friend.tech Possibilities Amid Regulatory Questions

Shareholders of Friend.tech are granted an intriguing advantage – the ability to privately message accounts in which they possess a stake. This feature holds potential significance, particularly in the event that securities regulators take notice. 

Mark Hiraide, a partner at Mitchell Silberberg & Knupp, emphasizes that the platform’s popularity and attention could draw regulatory scrutiny, similar to the case of Ripple. He suggests that substantial public attention could pressure regulatory bodies to intervene, highlighting the significance of market sentiment.

Hiraide further delves into the underlying dynamics, pointing out the nuanced expectation of profit associated with Friend.tech. While acknowledging the utility aspect, he underscores that the app’s reference to “shares” signifies more than just access. 

It signifies the enticing promise of capital appreciation within the shares themselves. As the user base expands and demand for shares escalates, their value is anticipated to rise in tandem, enhancing their investment appeal.

Unprecedented Surge And User Engagement

Friend.tech debuted with an invite-only beta launch on August 10, witnessing an immediate surge in demand that overwhelmed its server capacity on the very same day.

This rapid uptake was paralleled by an initial user count of around 10,000 buyers and sellers. However, the momentum escalated dramatically, with the platform presently boasting an impressive engagement of over 115,000 unique users, a fact corroborated by blockchain data aggregated by Dune.

The exponential growth and innovative mechanics of Friend.tech have ignited interest and speculation within the cryptocurrency and tech spheres.

As the platform continues to captivate users and reshape the social media landscape, the implications for regulation, profit expectations, and user experiences remain topics of intense discussion. 

The speed at which Friend.tech has gained traction underscores its potential to reshape the digital realm while inviting careful examination from industry observers and regulators alike.

Featured image from BlockTrends

Source: Bitcoinist.com
Original Post: Friend Or Foe? Friend.tech Social Media Platform Potentially Getting SEC Attention

In a recent analysis titled “2024 Halving Analysis: Understanding Market Cycles and Opportunities Created by the Halving,” Blockware Intelligence delves into the intriguing possibility of Bitcoin’s price reaching $400,000 during the next halving epoch. The report takes a comprehensive look at the factors contributing to Bitcoin’s unique market cycles and the potential impact of the upcoming halving on its price trajectory.

Unlike traditional commodities, BTC boasts an algorithmically determined supply schedule that remains unalterable. The research highlights the critical role of the mining subsidy halving in driving BTC’s cyclical price nature, underpinned by its transparent blockchain and predictable supply schedule.

1. Bitcoin Halvings Reduce Sell Pressure

A central factor identified in the research is the role of mining subsidy halvings in shaping Bitcoin’s market cycles. The report asserts that miners, responsible for a significant portion of sell pressure, receive newly minted BTC, much of which they must sell to cover operational costs.

However, the halving events serve to weed out inefficient miners, leading to reduced sell pressure. The study proposes that this reduction could lead to a drastic drop in yearly mined Bitcoin.

Assuming a $35,000 BTC price after the halving, the USD value of BTC mined per year could drop from $11.5 billion to $5.7 billion. That is 164,250 BTC less mined every year, more than MicroStrategy’s entire Bitcoin treasury. This reduction, combined with the elimination of weaker miners, contributes to the upward drift of BTC’s price, spurring new adoption waves.

2. Halving Brings New Demand

With supply diminishing due to halvings, the research emphasizes that demand becomes the primary determinant of BTC’s market price. Historical data indicates that a surge in demand typically follows halving events.

Market participants, equipped with an understanding of the supply-side dynamics introduced by halvings, prepare to deploy capital at the first signs of upward momentum, potentially leading to substantial price appreciation. This surge in demand is particularly evident in on-chain data, validating the positive sentiment surrounding halving events.

3. Halvings Cannot Be “Priced In”

Contrary to the notion that halvings can be fully anticipated and priced in by the market, the report contends that the predictable nature of halvings doesn’t eliminate their impact. Attempting to front-run halving events could lead to more miners joining the network, introducing additional sell pressure and curtailing price appreciation.

Furthermore, the weakest miners, those with outdated equipment or high operational costs, are often the first to exit post-halving, significantly reducing sell pressure. This process leads to a more significant profit margin for surviving miners, further alleviating sell pressure.

4. Bitcoin Cycle Volatility & Historical Performance

The research addresses Bitcoin’s notorious volatility, attributing it to halving-related shocks and rapid global adoption. Each halving cycle, consisting of stages such as Halving, Bull Market, Bear Market, and Recovery, results in distinct price movements.

However, the report emphasizes that over longer timeframes, Bitcoin’s volatility is skewed towards upside gains. Historical data reveals that the price of BTC has consistently increased from the halving to the subsequent bull market top, with impressive multiples achieved during each epoch.

For instance, considering previous epochs, the price of Bitcoin experienced the following multiples from the halving to the bull market top:

• 2009-2011: 584x
• 2012-2015: 92x
• 2016-2019: 30x
• 2020-2024: 7.7x

These historical performance figures underline Bitcoin’s potential for significant growth within each halving cycle.

5. “Diminishing Returns” Reconsidered

A common skepticism about halvings stems from concerns that as existing BTC holdings grow relative to new supply, diminishing returns might set in. The research counters this notion, suggesting that the amount of actively traded BTC is a crucial determinant of the price. With a significant portion of Bitcoin held by long-term holders who refrain from selling at current prices, halving-induced reductions in sell pressure could intensify, potentially driving larger bull runs.

6. Juxtaposition with Gold

Drawing a parallel between Bitcoin and gold, the report highlights Bitcoin’s favorable attributes, such as its absolute scarcity and enhanced portability, divisibility, and fungibility compared to gold.

Furthermore, it underscores that after the 2024 halving, Bitcoin’s inflation rate is projected to dip below 1%, less than half of gold’s rate. The analysis suggests that a price of $400,000 per BTC could position its market cap nearly on par with gold, driven by the bullish catalysts triggered by halvings.

At press time, the BTC price stood at $26,124.

Source: Bitcoinist.com
Original Post: How Bitcoin Price Can Reach 0,000 During Next Halving Era: Research

Following the abrupt halt in operations due to unanticipated high traffic immediately after its mainnet launch, the layer-2 network of Shiba Inu, Shibarium, is reportedly making its way towards a public relaunch tomorrow. The details were revealed in a recent blog post by Shiba Inu’s lead developer, Shytoshi Kusama.

“After two days of testing and tweaking parameters to achieve ‘ready’ state Shibarium is now enhanced and optimized,” Kusama announced, signifying a significant progression in resolving the issues that caused the network to shut down. He confirmed that, while still undergoing testing, the network is “producing blocks.”

To accommodate the heavy influx of traffic that triggered the initial problems, the Shibarium team has integrated advanced safety features. Kusama shared, “we have enabled a new monitoring system and additional fail safes including rate limiting at the RPC level and auto server reset in case we get a huge level of traffic again.” These integrations demonstrate the team’s proactive approach towards future traffic spikes, reinforcing the platform’s commitment to uninterrupted service.

Addressing concerns and criticisms that have surrounded the project, particularly since the unexpected pause in operations, Kusama addressed the community, bluntly stating how to discern genuine feedback from those aiming to spread “fear, uncertainty, and doubt” or FUD. He quoted, “You’ll be able to tell fudders as they constantly switch their complaints as the Fud becomes provably false considering things advancing and changing as we remain agile.”

Shiba Inu: Shibarium Relaunch Tomorrow?

In this context, Kusama emphasized the transparent progress made towards Shibarium’s launch and the project’s broader vision. “For instance, one piece of fud is that Shibarium was never going to come. Kek. Fud ded,” he quipped. Addressing concerns over decentralization, Kusama commented, “This fud is now also laughable as I’ve presented what is, arguably, the most comprehensive decentralization document the world has ever seen.”

Looking forward, the Shiba Inu lead developer unveiled plans for the next steps, which include the addition of more validators and an imminent conclusion to the ongoing tests. “Tomorrow additional validators will go live, giving even more options for you to stake your BONE for a share of the rewards earned for these two roles in our society,” Kusama disclosed.

He further alluded to the development of the “ShibPaper” – a framework aiming to showcase a “working system for governance and management that proves our perpetual decentralized digital nation state is real and here to change the world.”

Despite the temporary setback, the support from the Shiba Army community has been unwavering, as they collectively await the public relaunch of Shibarium. At press time, the SHIB price was trading at pre-Shibarium launch levels.

Source: Bitcoinist.com
Original Post: Shiba Inu Lead Dev Reveals When Shibarium Will Relaunch For Public

For the first time since early January, Bitcoin is changing hands below a critical support band and the 20-week moving average, evident in the weekly chart.

An analyst on X, formerly Twitter, pointed out this formation and has since raised questions about the coin’s prospects in the days and weeks ahead. Bitcoin is trading at around $26,000, down 18% from July 2023 peak. The situation remains tense for coin holders as the price pressures continue to mount.

Bitcoin Breaks Below Critical Support Levels

Looking at price action in the weekly chart, sellers are in control and actively aiming to erase gains posted between June and July 2023. At this pace, it won’t not only mean more pressure on holders but more liquidations for long positions in derivatives exchanges, impacting sentiment and thus lowering overall liquidity across the crypto scene.

A deeper analysis of the weekly chart also reveals a noteworthy decrease in trading volumes as last year’s dominant bear price formation came to fruition. This decline in trading volume is particularly concerning and prints after the collapse of several banks in the United States, including the significant Silicon Valley Bank (SVB), in March.

The fallout from these bank collapses triggered the depegging of the USDC, a move that also lifted top coins, including Bitcoin and Ethereum.

The lack of bullish momentum to ignite demand and reverse the losses of 2022, even after the push towards $32,000 in July 2023, could indicate that the market is fragile and bulls are unsure. At the pace of this drawdown, there are looming risks that prices could continue trickling lower in H2 2023, translating to more pain for HODLers.

Blame The Fed and Evergrande?

Analysts attribute this sell-off to a range of fundamental factors. The anticipation of the United States Federal Reserve (Fed) raising interest rates in the coming months creates uncertainty, as it could make borrowing more expensive.

The Fed could raise interest rates in Q3 and 4 in response to the persistent inflation, which remains high above the benchmark 2% level. With high funding rates, there will be an inevitable impact on the crypto market, altering the risk-reward balance for investors.

Beyond the macroeconomic influences in the United States, the recent Chapter 11 bankruptcy filing by China’s Evergrande Group indirectly affected BTC and crypto. The unfolding events and sentiment shifts, especially within China’s fragile real estate sector, will likely reverberate through the crypto landscape, a net negative for BTC.

Source: Bitcoinist.com
Original Post: Bitcoin Crashes Below 8-Month Support Line, More Pain Incoming?

The total value locked (TVL) in Starknet, a layer-2 scaling solution for Ethereum using ZK-Rollup, is down nearly 50%, L2Beat data on August 21 shows.

At this pace, the contraction in Starknet’s TVL is among the fastest in the layer-2 scene and stands at around $98 million. As of August 16, Starknet had a TVL of over $203 million and remained in the top 10 of the most popular layer-2 scaling options in Ethereum.

StarkNet’s TVL Dropping

Starknet uses zero-knowledge (ZK) in its rollups, meaning while the platform bundles transactions before confirming them on-chain, using zero-knowledge translates to better privacy. StarkWare, the team behind Starknet, also notes that the layer-2 solution is not ZK-EVM, meaning users must deploy all general-purpose smart contracts built using Cairo, a language designed specifically for ZK-Rollups solutions.

StarkNet’s activity has been rising steadily over the past year. However, general transaction processing speed (TPS) has been relatively lower than Ethereum’s. For instance, as of August 21, StarkNet had a TPS of 4.8 versus 10.9 in Ethereum though layer-2 is more scalable.

Ethereum’s TPS remains steady while, with rising activity, StarkNet’s has been increasing over the past few months, an indicator that the platform can adjust throughput as activity spikes. Overall, the layer-2 solution processed over 9.2 million transactions in the past 30 days, significantly lower than Ethereum, which, on average, processes over 1 million transactions daily, despite a drop in on-chain activity.

What could have triggered the sharp decline in StarkNet’s TVL is not immediately clear. As of August 21, there has been no reported hack on dapps deploying on layer-2 or a weakness reported directly impacting the platform.

However, there could be a correlation between the sharp drops in Ethereum prices with the contraction in the layer-2 platform’s TVL. Last week, Ethereum and crypto assets prices plunged. As witnessed in past months, price drops tend to adversely impact on-chain activity.

Decentralizing the Feeder Gateway

On August 20, Starknet decentralized its feeder gateway, a centralized portal through which users could query the layer-2 sequencer and understand the network’s state. With the feeder gateway decentralized, three nodes in Papyrus, a Starknet full node developed by StarkWare; Pathfinder, a Rust-based Starknet full node; and Juno, a Starknet full node written in Go, will take over, allowing for a more robust, fool-proof means of accessing the sequencer, according to an official announcement.

StarkWare developers said this decentralization would “significantly augment reliability and security.” Accompanying this update, StarkNet also improved the platform’s functionality by enhancing full nodes to support their JSON RPC protocol, simplifying interactions with the Starknet state. The goal is to streamline processes and further enhance user experience.

Source: Bitcoinist.com
Original Post: Starknet’s TVL Drops Nearly 50%, What’s Going On?

The crypto market was thoroughly shaken up last week when the prices of assets in the space crashed rapidly. As a result, over 170,000 traders lost their positions, amounting to more than $1 billion in losses. However, not all crypto traders suffered due to the crash as one GMX whale trader made almost 7-figures in profit. On a closer look, the whale seems to be on a streak with an impressive 80% win rate over the last two months.

GMX Whale Trader Makes Almost $1 Million

When the crypto market crashed last week and the price of Ethereum fell from above $1,800 to below $1,600, most of the market was caught aware. But one GMX whale trader was properly positioned to profit from such a crash and they were rewarded handsomely for their foresight.

By the time the crash rolled around, the crypto whale already had a $9.5 million Ethereum short position opened at a price of $1,962. The whale held on to this position and as soon as the market tanked, they closed their position, collecting $992,784 in profit. The trade was taken with 40x leverage on the GMX platform.

Despite this massive win, the whale was not done. Not long after closing the trade, the whale would go on to open an Ethereum long position using 5x leverage. This time around, the whale caught the Ethereum price at $1,624, and given that the digital asset’s price is up since then, the trader is already sitting on a $159,468 profit at the time of this writing.

An 80% Win Rate On Crypto Trading

While the GMX whale trader’s positions over the last few days are impressive, what’s even more impressive is their win rate over the last two months. According to GMX data, this whale trader placed their first trade back in June, and since then, their profit margins have more than outperformed their loss margins.

With Ethereum being an obvious favorite, the whale has placed a total of 10 trades over this two-month period. Given that they have only taken losses on two trades, their current win rate is now sitting at 80%. Taking a total of profit and losses gives an average of $1.2 million in profit made over these 10 trades.

The whale’s Ethereum long position, which is in profit, is currently still open. But if they were to close this trade, then 9 wins out of 11 total trades would bring their win rate to around 82%, an impressive figure for crypto traders.

So far, the whale has made 8 Ethereum (ETH) trades, 4 Bitcoin (BTC) trades, 1 LINK trade, and 1 Uniswap (UNI) trade (which it took a $1,987 loss on).

Source: Bitcoinist.com
Original Post: This GMX Whale Trader Has An 80% Win Rate, What Crypto Did They Buy?