Bitcoin prices experienced a notable decline on Tuesday, dropping more than 2% against the U.S. dollar in the last 24 hours, following a 7.8% decrease over the previous week. Global trading volumes on spot crypto exchanges have remained subdued, and in the past day, derivatives exchanges saw 1 million in both short and long positions […]
Bitcoin News
Stacks (STX) Skyrockets Over 43% And Smashes $2 Threshold, Setting Sights On New All-Time Highs
Stacks (STX) has garnered significant attention in the cryptocurrency industry as it emerges as a leading altcoin contender. With an impressive performance surpassing all top 100 tokens, except for Dymension (DYM), Stacks has witnessed a remarkable surge in the past 24 hours, catapulting its value well above the mark and inching closer to its all-time high (ATH) of .492.
This surge can be attributed to various factors, including its positioning as a Bitcoin layer for smart contracts, the recent surge in Bitcoin’s price, and the token’s adoption and growth rate.
Stacks Climbs The Market Cap Rankings
As outlined in the project’s white paper, Stacks serves as a Bitcoin layer for smart contracts, enabling trustless utilization of Bitcoin as an asset in smart contracts and facilitating transaction settlements on the Bitcoin blockchain.
The recent surge in Bitcoin’s price over the past few weeks has also acted as a catalyst for Stacks’ price surge. Currently trading at ,156, Stacks has experienced a significant recovery from its low of ,241 during a market downturn that bottomed on January 23.
Notably, this recovery coincided with Bitcoin’s price rebound from ,500 to ,000, highlighting the correlation between the two assets.
Market expert Trover.btc, known on X (formerly Twitter), has noted Stacks’ impressive ascent in the market cap rankings. From being ranked around 60, Stacks has climbed to the 34th position within a year, surpassing well-known projects.
With the Bitcoin Layer 2 narrative gaining prominence and Layer 1 network fees reaching all-time highs, expectations are high for Stacks to enter the top 20 rankings around the halving, according to Trevor.btc.
STX Sets All-Time High Total Value Locked
A key metric to consider is its market capitalization (fully diluted) to gauge Stacks’ adoption and growth rate. According to Token Terminal data, Stacks’ market cap has experienced a notable surge of 187% in the past 90 days and an impressive increase of over 527% year-to-date, aligning with the token’s price surge.
Moreover, data from on-chain analytics aggregator DefiLlama reveals that Stacks’ total value locked (TVL) has reached an all-time high of .41 million.
This represents a significant increase of over 400% in just four months, highlighting the growing confidence and demand for Stacks within the decentralized finance (DeFi) ecosystem.
As the demand and interest in the protocol and its native token continue to grow, whether Stacks will surpass its previous all-time high or experience a correction remains to be seen.
The notable correlation between STX and BTC suggests that Bitcoin’s retracement from its current two-year high could also impact the price of STX.
However, the token has significant interest, as reflected in the highlighted metrics above. With the anticipated bull run gaining momentum leading up to the Bitcoin halving event, STX has the potential to reach even higher levels and climb the crypto rankings within the industry.
Observing how the STX price reacts in the coming days and weeks will be interesting. While uncertainties exist, the token’s current high level of interest suggests a positive outlook for its future performance.
Featured image from Shutterstock, chart from TradingView.com
Bitcoin’s $30K Floor — Willy Woo’s Onchain Analysis Predicts Enduring Stability Above Threshold
On November 21, 2023, the popular onchain analyst Willy Woo presented a detailed chart showcasing the cost basis density map of bitcoin. This analysis delves into BTC’s pricing history and transactional data, pinpointing critical areas of price stabilization and potential zones of support. In discussing the chart, Woo remarked that if the current pattern continues as it has, “we’ll probably never see BTC going below k again.”
Willy Woo Examines Bitcoin’s Price and Onchain Data for Key Consolidation and Support Zones
On Tuesday, November 21, marking a full month since October 22, bitcoin (BTC) has consistently stayed above the K threshold. Concurrently, onchain analyst Willy Woo informed his 1 million followers on social media platform X that if historical trends persist, BTC stands a solid chance of maintaining its position above the K mark without dipping below. While sharing a cost basis density map of bitcoin, Woo said:
We’ll probably never see [bitcoin] going below k again if this onchain pattern holds true… (8 for 8 so far). What you see here is bitcoin’s price discovery across 13 [years]. It’s a contour map [of] the [bitcoin] supply according to the price HODLers paid for their coins, and how it changed over time.
Woo details that the horizontal bands represent prices where many bitcoin holders paid similar amounts for their coins. This data shows a strong agreement on bitcoin’s value at those price levels. Woo’s chart shows that after a bear market if BTC reaches one of these strong horizontal price agreement bands leading into a halving event (when mining rewards are cut in half), the price typically never falls back down to test that support level again.
The analyst argues this “up only” pattern is because bitcoin adoption is still increasing rapidly. Whereas commodity markets see declining prices when saturation hits, bitcoin has grown from 10,000 users in 2010 to over 300 million today and is likely to keep expanding as more institutional investors get involved. Woo concluded that “this is only going to climb with a spot ETF.” Following Woo’s X post, a number of individuals responded to his claims. “I remember when you wrote the same thing in 2021,” a person remarked to the analyst.
“You’re wrong a lot, so now there’s a possibility of sub K,” another person added.
It’s important to note that while historical data can provide insights, they do not guarantee future price movements. Market conditions can and do change on a dime, and unforeseen events can lead to price fluctuations that defy historical patterns. External factors such as regulatory changes, macroeconomic trends, and technological advancements can significantly impact bitcoin prices. Take for instance the March 11, 2020 ‘Black Swan’ event which brought BTC prices below the K range.
On the other hand, if current trends remain consistent, Woo’s analysis over the past 13 years reveals robust zones of price discovery, periods of pre-halving reaccumulation, and instances where bitcoin’s value has traditionally consolidated prior to embarking on a new upward trajectory.
Yet, this isn’t the first instance where BTC advocates have asserted that its price will never fall below a certain range, employing advanced charting tools such as logarithmic growth bands and stock-to-flow (S2F) models. History has shown that these predictions are not foolproof, with some of bitcoin’s fluctuations entirely upending these models.
What do you think about Willy Woo’s assessment on Tuesday? Share your thoughts and opinions about this subject in the comments section below.
Data Protection Bodies Call For ‘Privacy Threshold’ in Digital Euro Transactions
Ensuring low-value digital euro transactions are not traced is one of the recommendations made by two data protection agencies in the EU. The independent bodies have presented their joint opinion on the proposed regulation for the upcoming digital version of Europe’s common fiat currency.
Independent EU Regulators Insist on Embedding Data Protection in the Design of the Digital Euro
The European Data Protection Board (EDPB) and the European Data Protection Supervisor (EDPS) have made several recommendations on how to ensure high-level protection for the personal data and privacy of users of the future digital euro.
The stated aim of the eurozone’s central bank digital currency (CBDC) is to provide Europeans with an alternative means to make online and offline payments, complementing cash. The authorities welcomed the idea that users will have a choice and that the proposal for an EU regulation on the establishment of the digital euro addresses many data protection aspects.
However, the agencies believe that data protection should be embedded in the digital euro’s design itself and suggest further improvements to guarantee that the rights to privacy and protection of personal data are effectively preserved. EDPB Deputy Chair Irene Loizidou Nicolaidou emphasized:
A high standard of privacy and data protection is instrumental in gaining citizens’ trust in this new digital currency.
Introducing a “privacy threshold” under which neither offline nor online low-value transactions with digital euro can be traced for anti-money laundering or counter-terrorism financing purposes is one of the steps the EDPB and the EDPS “strongly recommend.”
The two organizations are also objecting to the proposed establishment of a single access point to verify that individual digital euro holding limits are not exceeded. The plan is to conduct this verification by processing identifiers of the digital euro users and their holding limits.
The data protection bodies suggest “assessing whether the single access point is necessary and proportionate, underscoring that technical measures allowing for a decentralized storage of these identifiers are feasible, as an alternative.”
After two years of investigation, the European Central Bank (ECB) announced on Wednesday its decision to move to the next “preparation phase” of the digital euro project. The monetary authority assured in a statement that data protection will be a priority and that the Eurosystem would not be able to link payment information to individual users.
Do you believe the design of the digital euro will ensure sufficient personal data protection to gain European citizens’ trust? Tell us in the comments section below.
Polygon Price Speculation: Can MATIC Defend The $0.5 Threshold?
Polygon (MATIC) has been treading in the water for much of September, caught in a tight range that reflects the uncertainty gripping the cryptocurrency market. As the altcoin hovers around the .50 mark, traders are closely eyeing a significant technical indicator that could spell trouble for its price trajectory.
The altcoin’s price, currently at .508295 according to CoinGecko, has shown signs of weakness, with a 2.4% decline in the past 24 hours and a 7.3% dip over the past week.
However, the real concern for MATIC investors lies in the potential reversal from the down-sloping trendline. This trendline, intact since February 2023, has kept MATIC in check for months. If breached, it could unleash a wave of selling pressure that might push the price below the critical .50 level.
Polygon Faces Increasing Selling Pressure On The Horizon
Traders are well aware that when an asset approaches a long-standing downtrend resistance line, it often faces increased selling pressure. Analysts suggest that a reversal from this trendline could lead to an 18% price decline, potentially dragging MATIC down to the next key support level at .42. It’s a make-or-break moment for the altcoin, and its fate hangs in the balance.
For those who remain bullish on Polygon’s native coin, patience is key. A daily close above the resistance trendline would signal a significant shift in market sentiment. Such a breakthrough could provide the bulls with the momentum they need to initiate a recovery rally. If successful, MATIC may set its sights on initial resistance at .63, with an even more ambitious target of .69.
Polygon 2.0: A Potential Game Changer
Adding a layer of complexity to this price analysis is Polygon’s recent announcement of Polygon 2.0. This strategic overhaul envisions a fundamental shift in Polygon’s blockchain architecture and an expansion beyond Ethereum to include various other blockchains. Polygon aims to execute this transformation in the early fourth quarter, potentially paving the way for a surge in interest and demand for its native coin.
As MATIC teeters on the edge of a crucial technical juncture, the cryptocurrency market remains a battleground of uncertainty. Traders and investors must exercise caution and closely monitor developments around the down-sloping trendline. The success or failure of MATIC to break free from this resistance could determine its price trajectory in the coming weeks.
Moreover, the impending rollout of Polygon 2.0 adds an extra layer of anticipation to an already dynamic cryptocurrency landscape, promising potential surprises for MATIC holders and the wider crypto community.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Shutterstock
Biggest Movers: XLM 7% Higher, TON Nears $2.00 Threshold
Stellar surged by as much as 7% on Monday, despite sentiment in crypto markets being mostly bearish to start the week. The token rallied for a second straight session, after a recent collision with a key price floor. Toncoin also rose, hitting a fresh multi-month high.
Stellar (XLM)
XLM was one of Monday’s biggest movers, as the cryptocurrency rose by as much as 7% in today’s session.
After trading at a low of .1147 on Sunday, XLM/USD moved to an intraday peak of .126 earlier in the day.
This surge sees stellar climb higher for a second consecutive day, following a rebound from a floor at .110.
Earlier gains have already begun to ease, which comes due to the relative strength index (RSI) colliding with a ceiling of 49.00.
At the time of writing, the index is now tracking at 49.48, with the next point of resistance around 54.00.
Overall, bulls seem to have set their sights on the .135 level.
Toncoin (TON)
Toncoin (TON) also moved higher to start the week, with the token hitting a fresh multi-month high in the process.
TON/USD peaked at .93 on Labor Day, which comes following a low of .85 during Sunday’s session.
As a result of the move, toncoin climbed to its strongest point since May 8, when the price reached a high of .08.
The RSI on TON continues to reside over the 70.00 mark, meaning that price strength remains overbought.
This has not prevented bulls from continuing to send the token higher, with the .00 level the perceived target for traders.
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Could toncoin jump back above .00 in the coming days? Let us know your thoughts in the comments.
Ethereum Core Devs Weigh Pros and Cons of Raising Validator Threshold From 32 ETH to 2,048 ETH
Ethereum’s core developers are engaged in discussions about raising the validator threshold from 32 ETH to 2,048 ETH. This proposal, put forward by Michael Neuder, a researcher from the Ethereum Foundation, aims to address concerns related to decentralization, inflation, and the size of the validator set. Neuder acknowledges that the existing threshold promotes decentralization, but he also highlights the drawbacks of inflation and the substantial number of validators that it entails.
Ethereum Developers Want to Raise the Validator Threshold
During the latest Ethereum core developer consensus meeting, a gathering of ETH software engineers and researchers, an intriguing notion emerged for elevating the validator threshold from 32 ether to 2,048 ether. As it stands, aspiring validators must possess roughly 32 ETH to commence the validation process, but this proposed adjustment would amplify the threshold by 64-fold.
The individual behind this idea is Michael Neuder, a researcher from the Ethereum Foundation, who presented his proposal titled “Increase the Max_Effective_Balance.” In addition to this proposition, Neuder delved into the realm of auto-compounding validator rewards, stimulating further contemplation and dialogue among the attendees.
“Without a validator set contraction, single-slot finality is not feasible using the current designs,” Neuder’s proposal details. “Without single-slot finality, we believe that enshrined PBS is also not viable. Additionally, the current p2p layer is heavily burdened by the artificially large and rapidly growing validator set (see this thread from Potuz outlining what happened during the May 12 non-finality event). We see a validator set contraction as a must-have for a sustainable and upgradable Ethereum consensus layer.”
According to the researcher, implementing this increase would not only enhance Ethereum’s overall efficiency but also alleviate the rapid expansion of the validator set. He insists the proposal holds the potential to address the finality issues that plagued the Beacon chain in May 2023. Subsequently, numerous individuals took to the ethresear.ch web portal to voice their thoughts on the proposed escalation of the validator threshold.
The Move Could Potentially Marginalize Home Stakers
The divergent opinions expressed on this matter underscore the existing divide among Ethereum advocates and researchers, revealing a compelling discourse within the community.
“This would significantly decrease ‘real’ decentralization by effectively raising the 32 ETH solo staking floor to whatever the new EB value would be,” the Cookie Lab stated in response to Neuder’s proposal. “Sure while one can still spin up a validator with 32 ETH, its influence would be one of a second-class citizen when compared to one with ‘maxed out’ EB.” Others favored the concept of auto-compounding rewards.
“The benefit of compounding rewards for solo stakers is pretty large, and their chance of proposing doesn’t fall due to a change in Max EB, only an increase of ETH being staked by others,” another person wrote.
Neuder’s proposal is anticipated to spark prolonged debates among the core developers, as they have chosen to delve deeper into this concept on Discord. A notable faction contends that embracing the idea may inadvertently foster centralization within the Ethereum network, exacerbating the preexisting challenges faced by the validator set.
Amidst the varied opinions, one individual expressed affinity for the proposal but raised a pertinent concern, emphasizing, “[My] main concern with the proposal as currently written is that it seems to degrade the UX for home stakers.” This consequential move could potentially marginalize home stakers, resulting in a landscape where corporate entities and affluent individuals dominate the network, leaving behind an altered power dynamic.
What are your thoughts on the proposed increase in Ethereum’s validator threshold? Share your views and opinions about this subject in the comments section below.
What Is Threshold (T) And Why Is This Lesser-Known Coin Swelling By 146%?
Last year, NUCypher and KEEP Network merged and created the Threshold Network, a decentralized organization that addresses the myriad of privacy and security concerns in the blockchain space. Its utility and governance token, T, has been on the rise since the start of 2023 as the network produced more buzz.
The coin is up 146% in the weekly, becoming the biggest gainer in the top 100 crypto list of CoinMarketCap today.
On-Chain, Off-Chain Developments List Threshold
On January 26th, centralized exchange CoinBase announced the support for the Threshold token. This listing would enable the token to gather momentum in the retail investor space. The dev team is also focused on developing its tBTC project, a way for Bitcoin holders to use their coins on Ethereum-based DeFi.
Coinbase will add support for Audius (AUDIO) and Threshold (T) on the Ethereum network (ERC-20 token). Do not send this asset over other networks or your funds may be lost.
— Coinbase Assets (@CoinbaseAssets) January 25, 2023
According to Threshold’s blog post earlier this week, the network’s early launch of its Bitcoin-Ethereum bridge was a response to the recent developments in the world of bridging the two major cryptocurrencies.
A Quick Definition Of Threshold (T)
The T token is a cryptocurrency that serves multiple purposes, including making payments, influencing the direction of the project through voting, and staking for interest and other incentives.
It is one of the most significant Web3 initiatives because of the cross-chain element of the network and the privacy and access control features it employs.
Threshold is not your normal cryptocurrency, as it does not want to make its users wealthy through trading and investment, nor does it strive to ensure that transactions are completed in the quickest possible time.
Although it does not provide NFTs or a metaverse, it does come with a number of DeFi features.
What Does This Mean For Threshold (T)?
The token has reached new highs after the CoinBase listing announcement. Threshold is currently trying to break above .064 which it has been unsuccessful in doing so. Threshold is supported at .042, the same support level that has not eased the May to June crypto market crash levels.
If the token suffers a correction phase, T might revert back .033 support which could possibly blunt a bearish market movement.
At the time of writing, T holders are realizing gains despite the token’s bullish momentum showing signs of easing down.
In the short to medium term, investors and traders of the token should expect volatility to enter the market if the token ends today unable to inch up to its desired targets. Meanwhile, as this scenario might play out, Bitcoin is attempting to breach the k resistance.
If BTC breaches through this resistance, Threshold can rely on its somewhat high correlation with the king crypto to boost gains.
-Featured image by Aviationist
Celo Votes To Increase Minimum Gas Threshold
Celo, a mobile-focused smart contracting platform compatible with Ethereum’s virtual machine, is voting on a proposal to increase the network’s minimum gas threshold.
Voting for Celo Governance Proposal 0066 started today, Wednesday, January 18, and ends on Friday, January 27. As of the time of writing, the turnout stands at 2.6% of the total supply, with 6,840,826 CELO locked as votes.
Out of this, 6,840,116 CELO supports the proposal, 620 CELO is against the idea, and 90 CELO are voting to abstain. CELO is the native currency of the Celo proof-of-stake smart contracting platform based on the PBFT consensus mechanism.
The Celo Governance Proposal 0066
The proposal seeks to increase the minimum gas threshold to .001 for simple ERC-20 transactions. Unlike Ethereum, where gas fees must be paid in ETH only, in Celo, users can pay using ERC-20 currencies, not just CELO. Gas fees are paid to prevent Denial-of-Service (DDoS) attacks.
Like Ethereum, the gas fee structure in Celo adopts the proposals under EIP-1559. As EIP-1559 stipulates, there must be a gas price minimum that applies to all Celo transactions. This minimum fee applies regardless of the validator processing the transaction. It also fluctuates depending on demand. Celo has clarified that should the proposal pass, only the base fee will be impacted.
Under the Celo Governance Proposal 0066, the validator rewards from the gas fee will not be affected. Celo added that though the base fee might increase slightly, network activity would remain the same because “gas prices are very low, transactions are virtually free.”
Celo Will Benefit
The proposer laid out the rationale of this proposal, saying that the cost of a transaction for the broader Celo ecosystem carries extra dimensions than the gas spent. Like in other chains, all transactions posted on the network must be processed and immutably stored in the blockchain.
The current gas structure, the proposer said, doesn’t impact processing or the general state of the network. However, it could have severe ramifications in the long term. Changing gas fees would have added benefits for the ecosystem, leading to a higher minimum benefit. Consequently, they argue that this will warrant the long-term cost of the overall ecosystem.
Besides increasing the minimum benefits, the proposal will shield the network against spam attacks. By increasing the minimum gas fees threshold, any spamming activity would be more expensive.
The proposal reads:
“Stability and security of the network 1 Low gas prices allow actors to spam the network at virtually no cost. Currently, it would take time, until the minimum gas threshold increases substantially, to stop the attack. Increasing the minimum gas threshold ensures that such an attack is much more costly from the get-go, even if it is only sustained for a short period.”
CELO is trading at .682 when writing on January 25, 2023.
Feature image from Canva, Chart from TradingView
Bitcoin (BTC) Must Make It Past This Threshold To Bounce Back
The United States just released the Employment Situation Summary, which describes the present state of the American labor market. Bitcoin, the dominant crypto currency on the market, is banking on the freshly disclosed data for a possible bear market departure.
Bitcoin has struggled to maintain its value inside the critical ,000 level. Despite this, investors have elected to HODL over the forthcoming crypto winter. Over 62% of addresses with the currency have not been sold in the past year. This could suggest that investor sentiment as a whole is mixed.
Despite the fact that some investors elected to continue holding the currency, 32% of investors chose to sell the currency after holding it for between one and 12 months, while 6% sold their currency after holding it for only one month.
Many Believe Bitcoin Will Recover
While investor mood has been extremely volatile, the large proportion of investors who opted to hold indicates that many continue to believe Bitcoin will recover. This may be the case now, as Uncle Sam has provided a breakdown of the total employment picture in the United States.
Since the release of the jobs report, the Bitcoin market has gained minimally. Coingecko reports that the price of Bitcoin at the time the report was published was ,060.85.
This reasonably large price increase from the early morning price of ,632.46 was, however, unavoidably lost throughout the course of the day.
The Crucial K Price Point
Even if the price eventually fell after the study, Kitco has just produced a report that identifies the potential price point to end the bear market. The report’s author, Rajan Dhall, estimated a price point of ,066 for a total Bitcoin recovery.
According to Rajan:
“Bitcoin appears to be trapped in a rut, but the good news is that the psychological threshold of ,000 has held for some time. After the bear flag formation was broken on August 19, it would have appeared from a purely technical analysis standpoint that the decline would continue.”
Rajan said that a rally higher is possible if the bulls can hold above that zone, but for now the consolidation low around ,567 is the level to monitor.
This current research along with the relatively favorable employment picture in the United States may indicate an impending rally.
However, investors are still warming up despite the current crypto winter.
Crypto total market cap at 0 billion on the weekend chart | Source: TradingView.com
Featured image from MARCA, chart from TradingView.com
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