Kategorie: Bitcoin News

Bitcoin news about the Bitcoin (BTC) blockchain and its crypto ecosystem.

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Unisat-backed Bitcoin scaling solution Fractal Bitcoin launches mainnet

  • Fractal Bitcoin launches mainnet, leverages Bitcoin Core code for enhanced scaling.
  • The network offers sub-30-second block confirmations and a 20x capacity increase.
  • The network’s native token, FB, supports proof-of-work mining, with half pre-mined for allocations.

Fractal Bitcoin, a groundbreaking Bitcoin scaling solution, has officially launched its mainnet, ushering in a new era for Bitcoin scalability.

This innovative project, spearheaded by Unisat and Block Space Force, represents a significant advancement in the realm of Bitcoin (BTC) technology by leveraging the core Bitcoin Core codebase.

Fractal Bitcoin uses recursive layering and integrates OP_CAT opcode

The Fractal Bitcoin mainnet debut follows extensive testing on its testnet, which began in July 2024. The network claims impressive performance metrics, including block confirmation times of under 30 seconds and a 20-fold increase in capacity per layer.

Unlike many other scaling solutions that rely on Ethereum Virtual Machine (EVM) compatibility, Fractal Bitcoin distinguishes itself by utilizing Bitcoin-native constructs. Its approach focuses on enhancing Bitcoin’s inherent functionality through recursive layering and the integration of the OP_CAT opcode.

This unique strategy promises to overcome many of the limitations faced by traditional Bitcoin sidechains and purported Layer 2 solutions.

In addition to its core features, Fractal Bitcoin supports a variety of Bitcoin protocols such as BRC-20, Runes, and Ordinals.

A notable highlight of the mainnet launch is the introduction of PizzaSwap, a decentralized exchange built into the network, aimed at facilitating seamless trading and transactions within the ecosystem.

The network also brings a novel mining structure called “Cadence Mining.” This system combines permissionless mining with merged mining with Bitcoin, enhancing network security and ensuring robust protection against potential threats.

Fractal Bitcoin’s native token FB

The launch of the Fractal Bitcoin mainnet is accompanied by the release of its native token, FB.

With a total supply of 210 million FB tokens, half are allocated for proof-of-work mining, while the remaining half is pre-mined for core contributors, investors, the ecosystem treasury, and community grants. This distribution strategy underscores the project’s commitment to fostering a supportive and thriving ecosystem.

Overall, Fractal Bitcoin’s mainnet launch marks a significant milestone in Bitcoin scaling solutions, promising enhanced performance, security, and functionality for the Bitcoin community.

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BitMEX co-founder Arthur Hayes believes Bitcoin (BTC) will tap $50K

  • Arthur Hayes predicts Bitcoin (BTC) could fall below $50K amid market turmoil.
  • Bitcoin’s price drop has led to $36.71M in liquidations.
  • The Crypto Fear & Greed Index shows “extreme fear,” reflecting growing market anxiety.

In recent days, the cryptocurrency market has been awash with uncertainty, with Bitcoin’s price taking a significant tumble.

After slipping below $57,000 on September 5, Bitcoin has fallen to $55,711.26, leading to a sharp decline in market sentiment. This downturn has thrust the Crypto Fear & Greed Index back into the “extreme fear” zone, with a score of 22, a notable drop from the previous day’s “fear” score of 29.

Arthur Hayes, co-founder of the cryptocurrency exchange BitMEX, has weighed in on the current market conditions and in a post on X, predicted a further decline in Bitcoin’s price, suggesting that it could fall below $50,000 over the weekend.

Hayes’s prediction comes amidst a broader market slump and growing concerns about the US economy.

Over 36 million Bitcoin long positions liquidated

The recent plunge has seen Bitcoin wipe out approximately $29.7 billion from its market capitalization. According to CoinGlass data, the price dip has also resulted in over $36.71 million worth of long positions being liquidated, accounting for about 40% of today’s crypto liquidations.

The drop in Bitcoin’s value has had a ripple effect across the cryptocurrency market. Other major cryptocurrencies have also experienced declines, with Ethereum (ETH) falling by 2.23%, Solana (SOL) dropping by 2.82%, and Ripple (XRP) seeing a 2.19% slump.

This broad-based downturn has led to over $94.26 million in liquidations over the past 24 hours, with Bitcoin and Ether long positions accounting for over half of these liquidations.

The current crypto market volatility is attributed to a confluent of broader macroeconomic factors. Notably, the recent US jobs data fell short of expectations, raising concerns about a potential Federal Reserve interest rate cut and adding to the market’s apprehensions.

As Bitcoin navigates these turbulent waters, all eyes will be on whether Hayes’s prediction comes to fruition and how the broader market sentiment evolves in response to ongoing economic signals.

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Bitcoin (BTC) drops below $57K again amid strong selling pressure

  • Bitcoin drops below $57K due to major institutional sell-offs and market pressure.
  • Short-term holders face unrealized losses, could trigger market volatility if they decide to cut their losses.
  • $51K is a crucial support level and long-term investors might see this as a buying opportunity.

Bitcoin (BTC) has once again slipped below $57,000 as its turbulent journey continues. At press time, BTC was trading at $56,749.40, down 5.32% in a week.

This latest dip is driven by a confluence of factors, including significant institutional sell-offs, the pressure from short-term holders facing unrealized losses, and ongoing spot market selling.

Institutional sell-offs impact Bitcoin price

A major factor behind Bitcoin’s price decline is the heavy selling activity by institutional investors. Prominent players such as Fidelity, Grayscale, Ark Invest, and Ceffu have significantly contributed to the downward pressure.

Fidelity leads the charge, having sold 16,000 BTC, valued at approximately $915 million. Grayscale follows with the offloading of 15,000 BTC, amounting to roughly $858 million. Ark Invest has divested 7,000 BTC worth about $400.4 million, while Ceffu has sold nearly 3,124 BTC, totalling around $178 million.

This institutional sell-off has been a crucial factor in Bitcoin’s drop. The substantial transfers of Bitcoin to exchanges suggest that these major players are either taking profits or rebalancing their portfolios.

Interestingly, while these institutions are actively selling, BlackRock has maintained a neutral stance, avoiding both buying and selling Bitcoin amid the current market fluctuations.

Risk of short-term holders exiting positions en mass

The selling pressure is further exacerbated by the situation of short-term Bitcoin holders, who are currently facing significant unrealized losses.

According to data from Glassnode, short-term holders who acquired Bitcoin in the last six months are experiencing financial stress, with their average cost basis ranging from $59,000 to $65,200, substantially above the current market price.

This cohort’s financial strain is evident in key metrics, and their potential to exit positions en masse poses a considerable risk for increased market volatility.

Despite the average Bitcoin investor remaining profitable, the substantial unrealized losses among short-term holders could potentially trigger broader market weakness if they decide to cut their losses.

The $51,000 price level is highlighted as a critical support that must be maintained to preserve the current market structure.

Potential for market stabilization

As Bitcoin continues to experience strong selling pressure, its market behaviour reflects a complex interplay of institutional actions, short-term holder dynamics, and broader market conditions. While immediate prospects appear uncertain, particularly with the potential for further short-term declines, long-term investors may find value in this period of adjustment.

Analysts have observed some absorption at lower price levels, which might suggest that Bitcoin could be poised for a period of sideways movement before making a decisive move.

The current dip might present a buying opportunity for long-term investors who can weather short-term volatility.

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Switzerland’s 4th largest bank ZKB launches Bitcoin and Ethereum trading

  • Zürcher Kantonalbank (ZKB) now offers Bitcoin and Ethereum trading via ZKB eBanking and Mobile Banking.
  • The bank has partnered with Crypto Finance AG and will use Fireblocks for secure custody.
  • The services are available only to Swiss residents with the necessary agreements signed.

Zurich Cantonal Bank, Switzerland’s fourth-largest bank locally known as Zürcher Kantonalbank (ZKB), has taken a major step into the cryptocurrency realm with the launch of Bitcoin (BTC) and Ethereum (ETH) trading services.

Announced on September 4, this development marks a significant milestone in the mainstream adoption of digital currencies by traditional financial institutions.

ZKB has partnered with Crypto Finance AG and Fireblocks

ZKB’s new offering allows retail clients to trade and store Bitcoin (BTC) and Ether (ETH) directly through its digital platforms: ZKB eBanking and ZKB Mobile Banking. This integration provides a seamless experience for customers, who can now manage their cryptocurrency holdings alongside their traditional investments without needing separate wallets.

To ensure a secure and regulated environment for these transactions, ZKB has partnered with Crypto Finance AG, a subsidiary of Deutsche Börse Group.

Crypto Finance AG’s technology, licensed by both FINMA and BaFin, will support the ZKB’s trading operations, ensuring compliance and security.

ZKB has also developed its own crypto custody solution, with Fireblocks playing a key role in safeguarding digital assets.

This strategic moves positions ZKB at the forefront of the cryptocurrency revolution, providing a centralized platform for trading and storage that eliminates the need for clients to manage their own private keys.

According to Alexandra Scriba, ZKB’s head of institutional clients, the bank’s approach offers high levels of security and the potential for integrating other digital currencies and applications in the future.

Currently, the crypto trading services are only available to clients residing in Switzerland and to activate an account, clients must sign agreements for trading, securities, and a “Consent Declaration Disclosure.”

This cautious approach reflects ZKB’s commitment to maintaining robust security standards while expanding access to digital currencies.

ZKB’s entry into the cryptocurrency market underscores a broader trend within the banking sector, where institutions are increasingly embracing digital assets. Competitors like PostFinance are also exploring crypto services, highlighting a growing acceptance of digital currencies in traditional finance, paving the way for more integrated and accessible cryptocurrency solutions.

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Threshold community proposes merger to safeguard WBTC amid growing concerns

  • Threshold community proposes merging tBTC with WBTC.
  • The proposal is driven by concerns over WBTC’s stability due to Justin Sun’s involvement.
  • According to the proposal, BitGo will receive T tokens, becoming a major stakeholder in Threshold Network.

In a strategic move to protect the future of Wrapped Bitcoin (WBTC), a proposal dubbed “#saveWBTC – a merger with Threshold’s tBTC” has been put forward to merge the decentralized tBTC token of Threshold with BitGo’s WBTC.

The proposal, currently under discussion on Threshold’s forum page, comes in response to rising concerns within the crypto community regarding WBTC’s stability following BitGo’s partnership with Hong Kong-based BiT Global, a company partly owned by Justin Sun, founder of the Tron ecosystem.

Unease with Justin Sun’s involvement with WBTC

The partnership has raised alarms due to Sun’s controversial track record, with past incidents of misappropriating collateral. This unease has already led major DeFi protocols like MakerDAO to limit their exposure to WBTC, halt its use as collateral, and consider fully offboarding the asset.

Aave, another significant player in the DeFi space, is also closely monitoring the situation.

The Threshold, WBTC merger proposal

The merger proposal seeks to replace WBTC’s centralized custody and merchant-based mint and burn model with its decentralized and permissionless mint/redeem mechanism. This transition aims to ensure the safety and stability of the underlying collateral, reassuring users and protocols reliant on WBTC.

The plan involves granting Threshold’s DAO merchant privileges for WBTC while disabling tBTC minting, allowing existing tBTC holders to redeem WBTC at a 1:1 ratio.

As part of the proposal, BitGo would receive a grant of T tokens, making it the largest stakeholder in the Threshold Network.

The merger would be implemented in stages to ensure a seamless transition, with a fallback plan to offboard WBTC safely if the proposal is declined.

By combining WBTC’s established user base and liquidity with tBTC’s decentralized technology, Threshold aims to preserve WBTC’s role in the DeFi ecosystem, ensuring that the concerns over BiT Global’s involvement do not destabilize the broader market.

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