Kategorie: Bitcoin News

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

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Babylon Bitcoin staking drives BTC fees higher as mainnet launches

  • Babylon’s Bitcoin staking launch on August 22 drove transaction fees to $132-$137.
  • Over 12,700 stakers quickly filled the “locking-only phase” of Babylon’s program.
  • Babylon raised $70M in May 2024, following an $18M Series A in December 2023.

On August 22, Babylon, a pioneering Bitcoin staking system, marked a significant milestone with the launch of the first phase of its self-custodial mainnet.

The self-custodial mainnet allows Bitcoin (BTC) to be staked via smart contracts, extending its utility beyond its traditional roles as a medium of trade and a store of wealth.

Bitcoin transaction fees rise from under $1 to $137

The debut of Babylon’s staking program led to a notable surge in Bitcoin transaction fees. Early on August 22, the average fee was under $1, but it skyrocketed to between $132 and $137 as the staking system went live.

This dramatic increase was driven by a rush of users eager to participate, resulting in a fee bidding war and pushing transaction costs close to $140, according to CryptoQuant analyst J.A. Maartun.

Babylon introducing Bitcoin into a PoS ecosystem

Babylon’s initiative aims to introduce Bitcoin into a proof-of-stake (PoS) ecosystem, offering users the opportunity to earn yield by depositing their crypto directly onto PoS networks.

The initial “locking-only phase” of Babylon’s staking system was quickly filled to capacity, with over 12,700 stakers and 20,610 solo delegates already participating. This rapid uptake highlights growing interest and confidence in the platform’s potential.

The successful launch of Babylon’s staking program underscores its ambition to redefine Bitcoin’s role in the broader crypto landscape, particularly within decentralized finance (DeFi). The move aligns with increasing institutional interest in cryptocurrencies, as evidenced by recent approvals of Bitcoin spot ETFs and significant institutional investment.

Babylon’s funding journey has been equally impressive. Following a $18 million Series A round in December 2023, the platform secured an additional $70 million in funding in late May 2024, led by Paradigm and supported by other prominent investors. This financial backing reinforces the project’s potential and solidifies its place in the evolving Bitcoin ecosystem.

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Aave spikes to 5-month high as Bitcoin tests area near $62k

  • Aave reached a five month high above $143 with a 14% spike.
  • Bitcoin broke to above $61,800, with price gaining 4% amid fresh crypto resilience.

Aave continued to outperform peers on August 21 with a sharp ascend to its highest level in five months. Meanwhile, Bitcoin price broke above $61,800 with a 4% surge in 24 hours.

AAVE spikes 14% to hit 5-month high

Decentralised finance (DeFi) protocol Aave (AAVE) was among the top gainers on Wednesday after surging more than 14% to hit highs of $143. Aave’s native utility and governance token reached the level amid huge whale activity in the past few days.

There was also positive news for Aave after the DeFi project’s Aave V3 deployed on ZKsync Era Mainnet.

AAVE price forecast

Rising to above $143, Aave’s price moved to its highest level since March 2024. This is the period when Bitcoin rode the halving mania and spot BTC exchange-traded funds to reach its all-time high.

AAVE’s push to current levels means the altcoin could eye fresh gains to the $177-$200 price area. However, the spike in AAVE price has also seen a sell signal flash on the daily chart.

Crypto analyst Ali Martinez shared this price outlook for AAVE earlier in the day.

Bitcoin bulls target breakout above $60k

While Bitcoin has struggled for momentum since the brutal sell-off in early August, bulls have remained largely undeterred. Buyers have shown great resolve in their quest to rally above the $60k.

In the past 24 hours, the benchmark crypto has climbed to above this crucial level and currently looks set to extend the slight advantage.

BTC has reached an intraday high above $61,838 on top crypto exchange Bitstamp.

BTC chart

The gains have the BTC/USD pair touch the 50-day simple moving average, accentuating the formation of an ascending triangle pattern. In technical analysts, the ascending triangle is seen as a bullish chart pattern where the resistance level follows a horizontal line.

Meanwhile, swing lows follow a rising trendline that forms a narrowing triangle as price looks to resolve on the upside.

BTC/USD daily chart. Source: TradingView

Bitcoin’s daily chart suggests this is the case for BTC since the dip to lows of $49,577 on August 5. Notably, the 50-day SMA currently acts as a robust hurdle. If bulls decisively break higher, price could target the key supply wall around $68,255.

However, should weakness resurface, the primary support area could be around $58,266 and then $55,800.

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Bitfarms agrees to buy Stronghold Digital for $175M in stock and debt

  • Bitfarms to acquire Stronghold Digital for $175M in stock and assumed debt.
  • Bitfarms’ stock fell 8%, while Stronghold’s rose 60% following the news.
  • Riot Platforms, holding 19% of Bitfarms, previously attempted a takeover in June.

In a significant development within the cryptocurrency mining sector, Bitfarms (BITF), a leading Bitcoin mining company, has announced its acquisition of rival Stronghold Digital (SDIG) for $175 million. The deal, which includes $125 million in stock and the assumption of $50 million in debt, marks a strategic move by Bitfarms as it continues to navigate a competitive industry landscape.

The acquisition terms specify that Stronghold shareholders will receive 2.52 Bitfarms shares for each Stronghold share they hold. This represents a 71% premium based on Stronghold’s 90-day volume-weighted average price on Nasdaq as of August 16.

The stock-for-stock transaction reflects Bitfarms’ aggressive growth strategy, despite recent challenges and market volatility.

Giving Stronghold Digital a lifeline

The deal comes on the heels of Stronghold’s announcement in May that it was exploring strategic alternatives, including a potential sale.

Stronghold, based in New York, has been actively considering its options in response to the evolving market conditions.

The acquisition provides Stronghold with a lifeline while enabling Bitfarms to consolidate its position in the market.

Riot Platforms abandoned Bitfarms takeover bid

Bitfarms’ move to acquire Stronghold is particularly noteworthy as it comes at a time when the company is also contending with an ongoing approach by Riot Platforms (RIOT).

Riot, which holds nearly 19% of Bitfarms, previously attempted to acquire the Toronto-based company in June. However, Riot chose to abandon the bid temporarily, opting instead to overhaul Bitfarms’ board of directors.

This strategic manoeuvre has kept Bitfarms in the spotlight, as Riot’s interest in the company is likely to continue influencing its future actions.

The market reaction to the acquisition has been mixed, with Bitfarms’ stock dropping nearly 8% in pre-market trading, while Stronghold’s shares surged by about 60%.

This acquisition underscores the ongoing consolidation within the cryptocurrency mining industry as companies seek to strengthen their positions in a rapidly evolving market.

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El Salvador launches civil servants Bitcoin certification, collaborates with Argentina

  • El Salvador launches 160-hour Bitcoin certification for 80,000 civil servants.
  • The program aims to enhance governance and build a Bitcoin-ready workforce.
  • Argentina collaborates with El Salvador to learn from its Bitcoin adoption success.

The El Salvador government, through its National Bitcoin Office (ONBTC), has embarked on an ambitious initiative to upskill 80,000 civil servants with a comprehensive Bitcoin certification program.

This is part of the nation’s ongoing commitment to integrating Bitcoin (BTC) into its economy and governance.

The certification program, named “Certification in Public Administration 1,” consists of a 160-hour virtual and asynchronous course divided into seven modules. Each module is designed to impart essential knowledge about Bitcoin, including its legal framework, strategic management, and the public policies surrounding its use as legal tender.

The Higher School of Innovation in Public Administration (ESIAP), established by President Nayib Bukele in August 2021, will conduct the training, aiming to elevate the standard of governance in El Salvador.

Stacy Herbert, director of ONBTC, expressed optimism about the program’s long-term impact. She believes that educating civil servants on Bitcoin will have a “compounding effect” on the nation’s economy. “These education projects are low-time preference commitments to the long-term success of El Salvador and its Bitcoin (and tech) policy,” Herbert stated.

This initiative is part of a broader strategy to create a Bitcoin-ready workforce, further solidifying the country’s reputation as a global pioneer in cryptocurrency adoption.

Argentina seeks to learn from El Salvador’s Bitcoin experience

El Salvador’s success with Bitcoin has also garnered international attention, particularly from Argentina. The South American nation, grappling with economic challenges, has sought to learn from El Salvador’s experience.

Argentina’s National Securities Commission (CNV) kicked off discussions with El Salvador’s National Commission of Digital Assets (CNAD) in May 2024 to explore collaboration opportunities in cryptocurrency regulation and adoption.

During a meeting between the two nations, Roberto Silva, president of Argentina’s CNV, emphasized the importance of strengthening ties with El Salvador. He hinted at potential collaboration agreements to leverage El Salvador’s insights into Bitcoin adoption, reflecting a growing interest in the cryptocurrency’s role in stabilizing economies facing hyperinflation.

As El Salvador continues to champion Bitcoin, its efforts are not only transforming its own public sector but also inspiring other nations to explore the potential of digital currencies.

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Whale accumulates $118M in Wrapped Bitcoin (WBTC) amid controversy

  • The whale acquired 347 Wrapped Bitcoin (WBTC) within just 12 hours on August 19.
  • BitGo plans to transfer control of WBTC to a joint venture involving itself, BiT Global, and the Tron ecosystem.
  • Coinbase has hinted at launching its own wrapped Bitcoin token, dubbed “cbBTC.”

An unidentified whale has been rapidly accumulating Wrapped Bitcoin (WBTC), amassing over $118 million worth of WBTC in a short span of time.

According to blockchain analytics firm Lookonchain, the unknown wallet has gathered a total of 1,953 WBTC, purchased at an average price of $58,853 per token.

The most recent transaction was particularly notable, with the whale acquiring 347 WBTC — valued at approximately $16 million — within just 12 hours on August 19.

 

This sudden and significant accumulation has raised eyebrows, especially as it coincides with ongoing debates and controversies surrounding the ownership and management of WBTC.

BitGo’s plans to transfer control of Wrapped Bitcoin (WBTC)

The controversy began earlier this month when BitGo, the firm responsible for issuing Wrapped Bitcoin (WBTC), announced plans to transfer control of the token to a joint venture involving itself, Hong Kong-based investment manager BiT Global, and Sun’s Tron ecosystem. This decision has led to heightened scrutiny and concern among major DeFi players.

In response, MakerDAO, a leading decentralized finance protocol, moved quickly to mitigate potential risks associated with WBTC. On August 16, the platform approved a proposal that prohibits borrowing against WBTC collateral on its Sparklend platform.

Similarly, Aave, another major DeFi protocol, is reportedly considering the adoption of an alternative wrapped Bitcoin token, TBTC, offered by Threshold Network.

Amid these developments, speculation is rife about the potential entry of Coinbase into the wrapped Bitcoin market. The US-based crypto exchange has hinted at launching its own wrapped Bitcoin token, dubbed “cbBTC,” which could further shake up the market.

The mystery whale’s aggressive accumulation of WBTC, in light of these industry shifts, adds a new layer of intrigue to the ongoing narrative in the crypto space.

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