Kategorie: Bitcoin News

• Coinbase launches cbBTC, an ERC20 token backed 1:1 by Bitcoin in its custody.
• cbBTC allows BTC holders to access DeFi apps like Aave, Compound, and MakerDAO.
• Over 843,783 Bitcoins back cbBTC, representing 4% of the total Bitcoin supply.

Coinbase, the largest cryptocurrency exchange in the US, has officially launched its new tokenization product, Coinbase Wrapped Bitcoin (cbBTC), marking a significant development in the tokenization of Bitcoin across blockchains.

The newly launched ERC20 token is fully backed 1:1 by Coinbase’s Bitcoin holdings, allowing holders to interact with decentralized finance (DeFi) applications on Ethereum and Base.

The release of cbBTC provides an innovative bridge between Bitcoin and Ethereum’s DeFi ecosystem, giving Bitcoin holders more ways to lend, borrow, and earn yields with their assets.

cbBTC is backed by Coinbase’s Bitcoin holdings

Coinbase’s extensive Bitcoin holdings back the entire supply of cbBTC. As of now, Coinbase holds over 843,783 Bitcoins in custody, valued at around $48.7 billion, representing more than 4% of the total Bitcoin supply. This ensures robust liquidity for cbBTC holders.

The number of cbBTC tokens in circulation will be directly limited by the amount of Bitcoin Coinbase owns.

How cbBTC works

The mechanics behind cbBTC are simple yet effective. When users transfer Bitcoin from Coinbase to an address on Base or Ethereum, their BTC is automatically converted into cbBTC at a 1:1 ratio. This conversion happens seamlessly, and the reverse process occurs when cbBTC is sent back to a Coinbase account, transforming the wrapped asset back into Bitcoin.

Unlike a typical token launch, cbBTC will not have a separate order book or trading pair on Coinbase, but it will be accessible on decentralized exchanges (DEXs) like Aerodrome and Curve. Additionally, third-party exchanges may choose to list cbBTC in the future.

Expanding decentralized financial access

The introduction of cbBTC is not just a technical advancement but also part of Coinbase’s broader mission to expand decentralized financial access.

Will Robinson, Coinbase’s Vice President of Engineering, has highlighted cbBTC’s potential to bring “1 billion people on-chain.”

By providing Bitcoin holders with access to DeFi applications such as Aave, Compound, and MakerDAO, cbBTC enhances the utility of Bitcoin, helping users integrate their BTC into a wider financial ecosystem.

With the growing demand for Bitcoin-based DeFi products, cbBTC positions Coinbase as a leader in the tokenization space.

Notably, Coinbase’s move comes shortly after BitGo’s announcement regarding custody services for wBTC, further fueling competition in the wrapped Bitcoin market.

With support from major DeFi protocols, cbBTC is could play a key role in shaping the future of decentralized finance.

The post Coinbase’s wrapped Bitcoin token cbBTC goes live appeared first on CoinJournal.

• Bitcoin could surge to highs of $90k if former US president Donald Trump wins the next election in November, analysts at brokerage and research firm Bernstein predict.
• Analysts at the brokerage shared the prediction in a note to clients on September 9.

Bernstein says a “Trump trade”, as they referred to a potential win for the Republican candidate, could see the flagship digital asset’s value reach a new all-time high.

Gautam Chhugani, Sanskar Chindalia and Mahika Sapra shared the prediction in a client note published on Sept. 9. Per the analysts, Bitcoin price could climb to the $80,000-$90,000 level by the end of the year if Donald Trump wins the upcoming election.

But while a second term for the former president would herald a positive momentum for BTC, the opposite is likely should US Vice President Kamala Harris win. If the Democratic candidate surmounts the Republican challenge, her win could provide a negative impact for cryptocurrencies, the analysts noted.

In this case, it’s possible Bitcoin could trade low – price levels in the $40,000 to $30,000 range being the likely primary support area.  

🔸BERNSTEIN: TRUMP IS RE-ELECTED PRESIDENT, BITCOIN MAY REACH $90,000 BY THE END OF THE YEAR

• Brokerage Bernstein Said In A Research Report On Monday That If Donald Trump Wins The US Election In November, Bitcoin Is Expected To Hit A New High Later This Year, And The…

— *Walter Bloomberg (@DeItaone) September 9, 2024

Currently, most polls have Trump ahead of Harris. Traders on decentralized platform Polymarket are also betting on a Trump win, giving him a 52% chance.

Meanwhile, Polymarket data suggests Harris has a 47% chance of snatching victory.

Trump vs. Harris’ crypto approach

Trump’s more crypto-friendly stance and plans for crypto stand out as a key factor. Notably, the former US president’s approach largely contrasts with that associated with the Harris camp.

Although the Harris campaign has initiated moves such as the crypto roundtable meetings, the Democratic presidential nominee has not added her voice to the crypto question in her campaign or policy statements.

Bitcoin price struggles for upside

Bernstein’s predictions come amid Bitcoin price’s struggles in the $50k-$60k range.

Massive sell-off pressure, regulatory landscape and overall macro environment have all combined to add to a negative sentiment.

However, analysts are bullish on crypto in the short term, particularly if Trump wins. This will also feed into the long term picture, which Bernstein has previously predicted could catapult BTC to $200k by end of 2025 and $500k by December 2029.

The post Bernstein analysts predict Bitcoin surge to $90k if Trump wins appeared first on CoinJournal.

• 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.

The post Unisat-backed Bitcoin scaling solution Fractal Bitcoin launches mainnet appeared first on CoinJournal.

• 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.

Institutions are dumping BTC 🚨 
 
Since August bottom 👇
 
🔻 Fidelity has sold 16000 BTC worth $915 million.

🔻 ArkInvest has sold 7,000 BTC worth $400.4 million

🔻 Grayscale has sold 15,000 BTC worth $858 million.

🔻 Along with that, Ceffu has sold nearly 3124 BTC worth… pic.twitter.com/4PlbMcGDLH

— Wise Advice (@wiseadvicesumit) September 5, 2024

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.

Spot still selling off here but at the same time we are seeing some signs of absorption at the lows. Maybe some chop around the lows here for the next few days before we are ready for a real break.

Watching for some ranging PA with potential deviations above/below the BLUE lines… https://t.co/sJpJtIVvLG pic.twitter.com/mGfyiQZLqI

— CrediBULL Crypto (@CredibleCrypto) September 5, 2024

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

The post Bitcoin (BTC) drops below $57K again amid strong selling pressure appeared first on CoinJournal.