Crypto Market Analysis: Bitcoin (BTC) Price Trends and Potential for a Bull Run in 2023

Leonardo Perez
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Crypto Market Analysis: Bitcoin (BTC) Price Trends and Potential for a Bull Run in 2023

The next few months are critical for Bitcoin’s trajectory.

The Bitcoin price has been experiencing fluctuations, it is currently valued at around $29,022 and has seen a recent drop over the past week. Factors such as high inflation, rising interest rates, and the possible recession have been influencing these fluctuations.

However, some analysts see this drop as a positive indicator, drawing parallels with past behavior before significant price increases. Crypto analyst Ali Martinez has called attention to potential similarities between Bitcoin’s current price trajectory and its historical pattern.

Comparing its journey from the all-time high in November 2021 to the 2013-2017 cycle, Glassnode’s data suggests a replication of this bullish cycle. If this projection holds true, the Bitcoin price may remain relatively stable from August to September, followed by modest gains. Data from Glassnode hints at a potential rise in October 2023, maintaining bullish momentum throughout the month.

However, a substantial drop is anticipated in the first week of November. Despite this, a positive perspective is expected for the end of the year.

Looking ahead, Bitcoin appears to be on track for substantial returns by 2024 and 2025 if the historical pattern of the 2013-2017 cycle is reflected. During that period, Bitcoin rose more than 1600%.

BTC Accumulation and the Potential for a Surge

Accumulation is a fairly simple concept. Cryptocurrencies are said to be accumulating when their prices are growing, especially when it comes to increasing volume. This indicates that traders and investors are prepared to buy the item in large quantities.

If the price of a particular crypto has been rising at a decent level, then it could be a sign that there is consistency and even some potential for further growth in the number of buyers willing to buy it at any price.

Major stakeholders are hoarding BTC, indicating optimism for an imminent price increase. On-chain analytics firm Santiment reports a change in behavior, with BTC whales and key holders exchanging BUSD and DAI for more Bitcoin.

On August 6, Santiment posted on X (formerly Twitter) that “Chainlink’s github development activity has been notably higher this summer, leading to the asset cracking the top 5 most frequently developed assets. Additionally, whales & sharks with 100K-10M $LINK now hold the most coins since December 2022.”

This change reverses the trend from July when major investors were cutting their holdings. Continued accumulation implies the potential for Bitcoin to regain a trade value in excess of $30,000.

Bitcoin ETF Competition and Regulatory Developments

The argument around Bitcoin ETFs in the US is gaining momentum. Bloomberg ETF analysts James Seyffart and Eric Balchunas have increased the probability that the first Bitcoin ETF will be approved to 65%, a notable improvement from the previous estimate of 50% a few weeks ago and a significant change from a 1% review a couple of months ago.

As of the last update, Bitcoin is currently trading at $28,979. Evolving trends in accumulation, regulatory developments, and historical patterns set the stage for the future trajectory of Bitcoin, making the next few months a critical period to watch.

By Leonardo Pérez

Quantum Computing, or “the Other AI”: “We are at a Tipping Point”

Audy Castañeda
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Quantum Computing, or “the Other AI”: “We are at a Tipping Point”

Some experts believe that its trading advantages will arrive much sooner than expected.

Tech stocks are one of the big winners of the year. The ‘boom’ of artificial intelligence (AI) has breathed life into the sector after a disastrous 2022 in the markets. Rivers of ink have flowed about the exciting advances of this technology, especially generative AI, and its ability to change our production models and economies, among many other things.

However, there is one technological breakthrough that is slipping under the radar that some experts believe could be the defining technology of this decade: Quantum Computing. “Forget AI: quantum computing is the next big revolution,” said Martha Lane Fox, president of the British Chamber of Commerce.

Citi experts point out that all of the technological advances seen so far have been facilitated and produced by increased computing speeds that allow for faster computations, as well as better connectivity, but they have all been based on existing computing technology. “But that’s about to change. The next phase of computing—quantum computing—is about to move from theoretical to practical, and we’re fast approaching a point where quantum computers will be able to perform tasks faster, more efficiently and cheaply than classical computers”, they highlight.

“Quantum computing breaks away from traditional classical computing by using quantum mechanics as its foundation. If you passed physics classes in high school or college, you may remember quantum mechanics as a daunting concept associated with geniuses like Albert Einstein, Niels Bohr and Max Planck. But you don’t have to be a rocket scientist to start thinking about how quantum computing can revolutionize industry and society,” they explain.

From Citi they believe that this technology “will radically change the way of doing things” and that the commercial advantages for companies “will arrive sooner than many expect.” “And given the speed at which quantum computing is advancing, we believe that now is the time for States, companies and market agents to start preparing for its arrival”, they conclude.

What is Quantum Computing?

Quantum Computing is a rapidly expanding emerging technology that uses the laws of quantum mechanics to solve problems too complex for classical systems. It is a computing paradigm different from the traditional one and based on the use of quantum bits (qubit or qubit), a special combination of ones and zeros. Bits in classical computing can be either 1 or 0, but only one state at a time, while the qubit can have both states simultaneously.

“Each of the last three decades has had its own computing revolution: the personal desktop revolution of the 1990s, the mobile revolution of the 2000s, and the cloud computing revolution of the 2010s. Though each has changed gradually the way we interact with computers, none has made us fundamentally rethink what it really means to ‘compute.’ Quantum computing can do exactly that,” they detail from Citi.

The New York firm’s experts believe that the growth rate of computing power is reaching its physical limit. As they have pointed it out, some industry observers have indicated that Moore’s Law, the principle that expresses the doubling of transistors per chip every 18 or 24 months, has been threatened in the last decade, and the rate of advancement of the current paradigm is expected of “classical” computing will decrease in the coming years.

By Audy Castaneda

Spain’s Resolution on Digital Assets: How Does It Affect the Country’s Taxpayers?

Audy Castañeda
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Spain’s Resolution on Digital Assets: How Does It Affect the Country’s Taxpayers?

Discover the latest news in the crypto world: Order HFP/887/2023 has been published in the Official State Gazette of Spain.

Below is a detailed presentation of the revolutionary model 172 on the “Informative statement on balances in virtual currencies” and model 173 that addresses “Operations with virtual currencies” in Spain, published on July 29, 2023, in the Official State Gazette:

“To establish new information obligations related to the possession of virtual currencies and the operations carried out with them. In order to improve tax control of taxable events that may arise from said possession or operation.”

Cryptocurrency Information Model 172: Everything You Need to Know

Form 172, “Informative declaration on balances in virtual currencies”, must be submitted annually and its submission period will be the month of January of the year following the one in which the declared information corresponds. And be sent to the State Tax Administration Agency by sending computer messages, with the content referred to in Annex I.

In such a case, the following persons and entities, previously established in Law 35/2006, are obliged to submit form 172:

  1. People and entities resident in Spain.
  2. Permanent establishments in the Spanish territory of persons or entities residing abroad.

Model 173: Everything you need to know about Operations with Virtual Currencies

Model 173 is regulated in section 7 of additional provision 13 of Law 35/2006, on Personal Income Tax.

However, model 173, “Informative declaration on operations with virtual currencies”, must be submitted annually and its submission period will be the month of January of the year following the one in which the declared information corresponds. And be sent to the State Tax Administration Agency by sending computer messages and with the content referred to in annex II thereof.

In fact, those required to submit form 173, “Informative statement on operations with virtual currencies”, are the following entities and companies:

  1. Providers of exchange services between virtual currencies and legal tender or between different virtual currencies.
  2. Intermediaries involved in carrying out operations with virtual currencies.
  3. Service providers to safeguard crypto private keys on behalf of third parties, in charge of the maintenance, storage, and transfer of virtual currencies.

How Does It Affect the Country’s Taxpayers?

Spain’s ruling on digital assets has significant implications for the country’s taxpayers. Here are some important issues that affect taxpayers:

Information obligations: Taxpayers who own digital assets are obliged to comply with the information commitments established in forms 172 and 173.

Taxation of earnings: Earnings must be declared and taxed in accordance with the corresponding tax regulations.

Asset valuation: Taxpayers must determine the euro value of their digital assets at specific times, such as the end of the tax year, following established criteria.

Control and verification: The tax authorities can carry out control and verification actions to ensure compliance with the obligations related to digital assets.

Regularization of previous situations: The resolution also establishes a framework for the regularization of previous situations, which allows taxpayers to correct possible non-compliances or declare assets not declared in previous years.

It is essential that taxpayers are aware of these implications and comply with the obligations established by the resolution. It is always best to consult a qualified tax advisor or professional for specific guidance on how the resolution affects one’s particular situation.

By Audy Castaneda

BUSD Faces the Competition: Binance Stablecoin Loses Market Share

Audy Castañeda
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BUSD Faces the Competition: Binance Stablecoin Loses Market Share

BUSD’s market cap has fallen 16.14% in a month, losing ground to USDT’s growing dominance of the stablecoin market. Binance has reduced support for BUSD, and the circulating supply of BUSD has decreased by almost 81% in the past year. Binance has shifted its focus to alternative stablecoins like FDUSD, with recent Launchpool events favoring them over BUSD for token farming.

BUSD’s market share has been declining for months and the decline shows no signs of slowing down.

Even Binance appears to have dropped support for its dollar-pegged stablecoin, once a dominant force on the cryptocurrency exchange.

BUSD Loses Market Share

In the past month, the market capitalization of BUSD has fallen 16.14%, DeFiLlama data shows.

Along with other well-known stablecoins, BUSD is losing dominance to USDT. According to Blockworks, on Sunday, August 6, the flagship Tether stablecoin accounted for a 67.17% share of the total market.

When Binance first launched BUSD in 2019, it put its full weight behind the stablecoin. Backed by the world’s largest crypto exchange, it took BUSD just 261 days to amass a $1 billion market capitalization. And it achieved this milestone faster than any other stablecoin. Within a year, the exchange had listed 97 BUSD trading pairs. At its peak, that number rose to over 300. Last year, however, Binance was forced to rein in BUSD.

In February, stablecoin issuer Paxos ended its partnership with Binance and stopped minting BUSD at the request of the New York Department of Financial Services (NYDFS).

In a June tweet, Binance CEO Changpeng Zhao (CZ) claimed that the NYDFS had essentially limited the potential supply of BUSD to $23 billion, a fact he associated with the growth of rival USDT.

Has Binance Given Up on BUSD?

Amid declining market share and growing dominance of Tether, Binance has turned the tide on BUSD a bit. After the platform removed eight BUSD spot trading pairs on Wednesday, August 2, there are now only 289 pairs available to BUSD users. By contrast, Binance lists 352 USDT trading pairs.

Against the backdrop of declining support from its main platform, data from IntoTheBlock shows that the circulating supply of BUSD has decreased by almost 81% in the last year alone.

Additionally, recent Binance Launchpool events have favored alt stablecoins as staked assets. While BUSD participation was once a staple of the exchange’s token farming platform, it has been absent from recent pools.

Instead, the latest Launchpool events have adopted the new stablecoin FDUSD. While Launchpools run throughout August, participants can earn CYBER and SEI by staking BNB, TUSD, or FDUSD.

Rivalry between Tether and Binance Intensifies

While recent Binance Launchpools have abandoned staking BUSD, the platform has not turned around and accepted defeat at the hands of Tether, despite staking USDT in previous rounds.

In Tether’s corner, CTO Paolo Ardoino recently launched digs at FDUSD after it gained significant traction in early August.

In May, First Digital’s debut of FDUSD received a significant boost from Binance, which celebrated its listing by offering zero trading fees for select FDUSD trading pairs.

In addition to corporate bonds, precious metals, and collateralized loans, Tether has also invested in Bitcoin. And in May, the company stated its intention to allocate 15% of its profits to cryptocurrency.

Since then, Tether’s Bitcoin holdings have skyrocketed. According to Blockchain analyst Tom Whan, the company now owns 55,000 BTC, worth $1.6 billion. This represents an increase of $176 million from the previous quarter.

By Audy Castaneda

Trend of Crypto Hackers to Return Stolen Funds Increases in the First Half of 2023: Here is Why

Leonardo Perez
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Trend of Crypto Hackers to Return Stolen Funds Increases in the First Half of 2023: Here is Why

Such a trend has increased exponentially this year, leaving many wondering if hackers are supporting the growth of cryptocurrency by spotting vulnerabilities.

The first half of 2023 has brought an unexpected twist for the crypto market, which has always been a favorite target for cybercriminals. However, as the number of crypto hacks increased at an alarming rate, a surprising trend began to emerge among hackers as they now began to return stolen funds.

Hackers Stole Over $700 Million from 260 Crypto Projects

In the first quarter of 2023, cryptocurrency attacks resulted in approximately $400 million in theft, spanning nearly 40 incidents. This represents a substantial 70% decrease, as compared to the corresponding period in 2022.

Interestingly, the total value stolen through crypto hacks in the first quarter of 2023 was less than any quarter in the previous year. The decline in the amount stolen was noticeably steeper than the drop in cryptocurrency prices over the same time period.

During the second quarter of 2023, cryptocurrency hacks and exploits caused the loss of more than $300 million in digital assets. The quarter saw a total of 212 security breaches.

These incidents resulted in malicious entities extracting a total of $313,566,528 from Web3 protocols. Compared to the second quarter of 2022, which saw a loss of $745 million due to attacks and exploits, this quarter highlighted a 58% reduction in the total amount lost.

Hackers Continue to Return Funds: Curve Exploiter Supports Project

In an interesting trend, hackers have been progressively returning stolen funds, opting instead for a “white hat” bounty offered by compromised projects.

In 2023, the victims of these attacks managed to recover almost half of the stolen funds. The perpetrator who siphoned $61 million from the decentralized exchange, Curve Finance, partially returned the stolen cryptocurrency, following conversations with one of the victims on Friday.

In a message associated with an Ethereum Blockchain transaction, the criminal asked Alchemix, one of the victims of the theft, to verify the protocol address for the return of the assets. Shortly thereafter, the individual transferred nearly $10 million worth of Ether (ETH) and alETH to Alchemix’s multi-signature wallet through various transactions, as evidenced by Blockchain data on Etherscan.

Additionally, JPEG’d, a protocol for non-fungible tokens (NFTs) and decentralized finance (DeFi), has verified the return of 5,495 Ether, valued at approximately $10 million at current rates, by hacker Curve Finance. The hacker, who had stolen the funds on July 30, received a reward of 610.6 ETH (about $1.1 million) in exchange for restoring the stolen assets.

High Profile Enforcement Cases and Stringent Regulations May Be the Explanation

One plausible reason for this trend could be the increasing regulatory scrutiny of crypto hacks, along with several high-profile compliance cases. The case of Avraham Eisenberg, recognized as the first individual arrested for a DeFi exploit, could be acting as a deterrent. An alternative hypothesis could be that hackers are showing sympathy for crypto projects and helping their development.

This drop in cryptocurrency thefts is probably only a short break and not a lasting change. The way crypto hacks work, how much thefts have slowed down, and what we’ve learned from past patterns gives a better idea of ​​what’s going on.

By Leonardo Pérez

Cryptocurrency News – Week of August 06, 2023

Audy Castañeda
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Cryptocurrency News – Week of August 06, 2023

An overview of the main highlights of the cryptocurrency and Blockchain universe in the last 7 days.

Below are the five most significant news of the last week, in order to be able to stay informed of innovations and important advances related to the crypto world.

Ethereum vs Liquid Staking: Will ETH Cryptocurrency Disappear?

Each evolution brought to the cryptocurrency sector has the potential to impose itself as a paradigm shift. A situation that is sometimes complex to follow, these changes occur so quickly as soon as one of these opportunities arises as the new model to follow.

The Liquid Stake Derivatives (LSD) market is fundamentally changing the face of the Ethereum network. However, this change also affects the DeFi sector or the cryptocurrency market as a whole.

In fact, this option considered so far with the necessary restraint is now becoming the norm for ETH cryptocurrency holders. Because before, the return linked to this type of investment -estimated on average at around 4% (TAE)- implied no longer having access to the deposited funds.

Curve Attack: $40M+ Theft and Validator Binge

This has been a difficult week for the DeFi sector. A large-scale attack hit Curve’s blue-chip protocol hard on July 30. It is an emblematic platform of this ecosystem whose business consists mainly in optimizing the exchange of stablecoins.

On July 30, Curve Finance informed via X that “A number of stablepools (alETH/msETH/pETH) using Vyper 0.2.15 have been exploited as a result of a malfunctioning reentrancy lock. We are assessing the situation and will update the community as things develop.”

Said reentrancy error is a vulnerability that has already been exploited several times in other attacks on the DeFi protocol. With the procedure involved, a security breach in the external call process of a smart contract.

This procedure is interrupted and then recalled before its actual completion, which in turn increases the possibility of completely emptying the affected pools of all the cryptocurrencies they contain.

Analysts Back MicroStrategy’s Bitcoin Strategy

Long dismayed by MicroStrategy’s maximalist Bitcoin strategy, financial analysts, at least some of them, now seem convinced by Michael Saylor’s relentless buying policy since the summer of 2020.

With the company’s quarterly earnings release just hours away, optimism is in order with bullish price targets for MSTR shares.

Significant Increase of Demands for ETH Futures ETFs

Hardly lifted from the frenzy over spot Bitcoin ETFs, it is now around Ether that American financial players are agitated. Within days, no fewer than six of them filed an application with the SEC to list a futures ETF on the second-largest asset in the crypto market.

The first to draw is Volatility Shares with its ETF Ether strategy. Following him, four others declared themselves. These are Bitwise, Roundhill, VanEck, and Proshares. Finally, to round out the list of contenders, the inescapable crypto trust giant has joined the race with its Grayscale Ethereum Futures ETF.

MetaMask: Integrated Liquid Participation in One’s Portfolio

One of the biggest challenges in the cryptocurrency industry is finding the right balance between simplification and security, as it is the only recipe to enable broader public adoption of this digital economy. However, the functionalities developed should not be detrimental to the necessary decentralization.

The latest innovation is a staking service integrated directly into one’s portfolio. This consists of a participation function integrated into one’s portfolio, a service already available, although there are certain restrictions.

By Audy Castaneda

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