Ethereum relatively sluggish price performance compared to Bitcoin’s continuous rise appears to have captured the attention of crypto analysts. While Bitcoin has created a new peak above $106,000 earlier today, Ethereum’s price still sits below $4,000 with a current trading price of $3,943, marking a modest 1.4% increase over the past 24 hours. However, despite this slow pace, some analysts see signs of strength and potential growth for Ethereum in the near term. Related Reading: Ethereum Battles Bearish Retail Sentiment Amid Surging ETF Demand Retest Before The Major Rally One notable analyst, CryptoBullet, shared his insights on X, drawing comparisons between the current market environment and Ethereum’s January 2021 rally. “Second consecutive weekly candle closed above the resistance,” the analyst observed. “The shape of the candle and overall environment reminds me of January 2021. We might wick to $3,700 this week, but it will be bought back up quickly. Don’t ignore this ETH strength.” CryptoBulllet further emphasized that Ethereum’s ability to hold its position above key resistance levels is a strong indicator of bullish momentum, suggesting that a significant price movement could be on the horizon. $ETH 1W update Second consecutive weekly candle closed above the Resistance 👌😁 The shape of the candle and overall environment reminds me of January 2021 We might wick to $3700 this week but it will be bought back up quickly 📈 Don’t ignore this #ETH strength! https://t.co/rIamWMSAb6 pic.twitter.com/29bs5aTUd3 — CryptoBullet (@CryptoBullet1) December 16, 2024 Titan of Crypto, another renowned analyst in the community echoed this optimism, noting Ethereum’s highest weekly candle close since 2021 as a major milestone. “Ethereum New ATH Incoming. ETH just achieved its highest weekly candle close since 2021, a major milestone,” he wrote. “A successful retest could propel it to its previous ATH and beyond.” These observations indicate growing confidence among market participants that Ethereum could soon reclaim its all-time high of $4,878, last achieved in November 2021. Ethereum Traders Faces Liquidation Despite these bullish projections, Ethereum’s recent price action has not been favorable for all market participants. According to data from Coinglass, 123,021 traders were liquidated over the past 24 hours, resulting in a total of $396.41 million in liquidations across the crypto market. Ethereum accounted for approximately $53.12 million of these liquidations, with long positions taking the larger hit at $28.4 million, while short positions saw liquidations worth $24.69 million. Notably, liquidation occurs when a trader’s position is forcibly closed by an exchange due to insufficient funds to cover losses. In the case of Ethereum, the higher volume of liquidations, particularly among long positions, reflects a level of over-leverage among traders betting on the asset’s upward momentum. Featured image created with DALL-E, Chart from TrangView
Bitcoin and Nvidia lead market performance in 2024, driven by unique growth factors and risks.
A lawsuit against Coinbase concerns allegations under the Sherman Act of attempted monopolization of the Wrapped Bitcoin market.
Jeremy Rubin released a proposal two weeks ago titled Un’FE’d Covenants (FE = Functional Encryption). Given the ongoing debate over covenant proposals for Bitcoin the last year or two, his proposal marks a new practical option. All covenant proposals so far require a soft fork (actual opcodes), the development and implementation of unproven cryptography (Functional Encryption), or an absurdly high monetary cost to use (ColliderScript). Jeremy’s proposal requires no softforks, and does not impose a burdensome and impractical cost on users to utilize. The trade off for that capability is a radically different security model. By using a system of oracles, and BitVM based bonds capable of slashing, covenants can be emulated on Bitcoin right now. The Oracles The first part of the scheme is obviously the oracles that enforce different covenant conditions. This is a relatively straightforward set up, and the first building block necessary for Jeremy’s proposal. The oracle has custody of the funds in this scheme, and is entrusted with the enforcement of the covenant conditions. You want the oracle to not have to locally keep track of the covenant conditions being enforced for each coin it custodies. This introduces state risk where if the oracles database is corrupted or lost it has no idea how to handle honest enforcement for everyone’s coins. In order to get around this problem, Jeremy makes use of Taproot. Schnorr based keys can be “tweaked” by using the hash of data to modify a public key. This enables the tweaking of the corresponding private key to be able to sign for the modified key, as well as prove that whatever data was used to tweak the public key is committed to by that key. Having the oracle generate a key, and then the user tweaking that key with their covenant program allows a commitment to what the oracle is supposed to enforce while keeping the burden of storing that information on the user. Oracles can also be federated in order to minimize the trust required in a single party to enforce things. From here, users can simply load the resulting address, and whenever they want to enforce the condition, approach the oracle(s) with the spending transaction, the oracle program, and the witness data necessary to prove that the transaction given to the oracle meets the conditions of the covenant. If the transaction is valid according to the covenant rules, the oracle signs it. For any simple covenant where the outcomes are known ahead of time, such as CHECKTEMPLATEVERIFY (CTV), users can immediately have the oracle pre-sign the transactions enforcing the covenant and simply delay using them until necessary. An important scenario to consider requiring extra functionality is state based covenants, such as rollups, that progress regularly and have an actual state (the current balance of users) to keep track of. In the case of such covenants, the transactions the oracle signs must commit to the current state of the covenant using OP_RETURN so that the oracle can efficiently verify each transaction updating the rollup or other system without having to download witness data for the entire history. This is to keep the oracle from having to store state locally themselves, which as noted above creates risks. In the long term the data requirements of oracles can be optimized by using zero knowledge proofs, so that the oracle can simply verify a proof that the transaction they are being asked to sign follows the rules of the covenant without having to verify the raw witness data for larger more complex covenants. Again though, in the case of systems like rollups, care must be taken in designing them to guarantee that data required to exit the system is made available to users so they have it in their possession if they need to contact the oracle directly to reclaim their funds. The BitVM Bond So far the scheme is entirely trusted. You are essentially just giving someone else your money and hoping they can be trusted to enforce the conditions of arbitrary covenants. By modifying the scheme above slightly, this can be secured with a crypto-economic incentive rather than pure trust. Above it was described how OP_RETURN is required to be used to track state for stateful covenants. OP_RETURN can also be used to publish the witness data of any covenant transactions to prove the conditions were correctly fulfilled. A BitVM circuit can be constructed to verify whether a transaction signed by the oracle successfully matches the conditions of the covenant it is enforcing. Remember that the key itself that is generated and funds sent to commits to the conditions of any covenant being enforced. Meaning that data, as well as a transaction being spent from the address, can be fed into a BitVM instance. Oracles can then be required to post a collateral bond with a BitVM operator (who must also post a bond for the Oracle to claim if they are falsely accused). This way, as long as the bond value is greater than the value secured in covenants by an oracle, the system can be securely used. There would be no way for an oracle to violate the conditions of a covenant they are enforcing without losing money in aggregate. Trade Offs There are clear trade offs here that are materially worse than simply implementing covenants in consensus rules. Firstly, the oracle must be online and reachable in order to make use of oracle enforced covenants. With the exception of pre-signed covenants such as CTV, if the oracle is offline when users need to enforce a covenant, they can’t. The oracle must be present to sign. Secondly, the liquidity requirements for oracle bonds can become massive if the system was ever widely adopted. This makes it unbelievably inefficient compared to native implementation of covenant opcodes at the consensus level. Lastly, the extra data required to be posted on-chain in order for the BitVM bond scheme to work is much less efficient with use of blockspace than native covenant implementations. Overall, the proposal is nowhere near as efficient and secure as native covenants. On the other hand, if we do wind up in the worst case scenario of pre-mature ossification, this is a very workable way to shoehorn covenants into Bitcoin without depending on unproven cryptography or completely impractical costs imposed on end users. Jeremy has given us a worst case scenario option to expand the design space of what can be built on Bitcoin.
Bitcoin jumped to a fresh high above $107,000 on Monday as crypto bulls were left giddy with excitement after President-elect Donald Trump floated the possibility of setting up a US strategic BTC reserve. The world’s biggest cryptocurrency hit a record peak of $107,039 and was last trading 3.64% higher at $106,984 at the time of writing. Bitcoin Surges Past $106K Following Trump’s Proposal for a National BTC Reserve Bitcoin (BTC) reached unprecedented heights on Monday, with price surging past $107,000 following President-elect Donald Trump’s promise of a national BTC cryptocurrency reserve , sparking renewed enthusiasm in digital asset markets. Investor sentiment was boosted with the news that MicroStrategy would join the technology-heavy Nasdaq 100 index , a move expected to spur more inflows for the software company turned Bitcoin purchaser. Bitcoin and the broader crypto market are gaining attention as investors speculate that Donald Trump’s administration may introduce friendlier regulations. This speculation has fueled excitement about the potential for a more supportive environment for the alternative currency. ” We’re gonna do something great with crypto because we don’t want China or anybody else- not just China, but others are embracing and we want to be the head, ” Trump said recently . When asked if he would create a crypto reserve similar to oil reserves, Trump said, “ Yeah, I think so .” As of July, governments globally held 2.2% of the coin’s total supply with the United States holding nearly 200,000 BTC at over $20 billion at present values. Among the other large holders are China, the UK, Bhutan, and El Salvador . Credit: Reuters Russia has also been considering the idea of strategic cryptocurrency reserves. Recently, Russian President Vladimir Putin stated that the current US administration is weakening the US dollar’s status. He argued that its use for political purposes is driving many countries to seek alternative reserves, including cryptocurrencies. In this context, “ For example, Bitcoin, who can prohibit it? No one, ” Putin said. Still, not everyone is a believer. Federal Reserve Chair Jerome Powell compared Bitcoin to gold earlier this month. Analysts like Chris Weston, head of research at Pepperstone, suggest taking a cautious approach to establishing a BTC strategic reserve. Weston believes such a move is unlikely to happen anytime soon. BTC to $180,000 in 2025? VanEck’s Bold Prediction Shakes Up Crypto In response to this bullish momentum, VanEck has released its latest Bitcoin price prediction , forecasting that the world’s oldest cryptocurrency could hit $180,000 by 2025. As Bitcoin continues its impressive rise, VanEck has shared ambitious projections for the cryptocurrency market in 2025. These include significant highs followed by consolidation. VanEck predicts the ongoing crypto bull market will peak in the first quarter of 2025. Bitcoin could reach $180,000, while Ethereum is projected to exceed $6,000. Other top cryptocurrencies, such as Solana and Sui, are forecasted to hit $500 and $10, respectively. These projections highlight the potential scale of the anticipated rally. VanEck’s head of digital assets research, Matthew Sigel, further said, “ Following this first peak, we would expect a 30% retracement in BTC, with altcoins falling sharper, up to 60%, as the market settles down over the summer. ” Sigel said: “ A recovery in the autumn then sees the major tokens back to momentum and new ATHs by year-end .”. To identify potential market tops, VanEck will monitor several key indicators closely. These include high funding rates in futures markets and unsustainable unrealized profits among holders. They will also watch for high market capitalization compared to realized value and declining Bitcoin market dominance. Additionally, increasing signs of speculative fervor in the mainstream will be a critical focus. The post Bitcoin Reaches New ATH Amid Growing Strategic BTC Reserve Optimism appeared first on CoinGape .
Bitcoin continues to rise, reaching new record levels. This week features crucial economic announcements impacting crypto markets. Continue Reading: Bitcoin Reaches New Heights as Market Anticipates Key Developments The post Bitcoin Reaches New Heights as Market Anticipates Key Developments appeared first on COINTURK NEWS .
Ethena, one of the fastest-growing decentralized finance (DeFi) platforms of 2024, today announced the launch of its new stablecoin, USDtb. According to the developers, this stablecoin is designed to complement the protocol’s platform’s native stablecoin, the USDe token, and balance its performance in bearish crypto market conditions. USDtb is pegged to the US dollar and holds 90% of its reserves in BUIDL, a tokenized money market fund issued by asset management giant BlackRock in partnership with Securitize. Ethena founder Guy Young highlighted the innovation behind USDtb, saying: “Given the rapidly growing demand for different stablecoin options, we saw a clear opportunity to offer users a new product that offered a completely different risk profile to USDe without them having to leave our trusted ecosystem.” Related News: BREAKING: Coinbase Announces New Altcoin Listing During Massive Bull Rally Ethena has attracted nearly $6 billion in user funding since going public earlier this year. The company’s native token, USDe, maintains its $1 price by implementing what it describes as a unique investment strategy: shorting perpetual swaps on Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) while increasing funding rates. This approach has yielded impressive returns during bull markets (currently 27% annually), but has struggled in bearish conditions due to persistently negative funding rates. To address these risks, USDtb will serve as a balancing mechanism. During periods when funding rates are negative, Ethena will close underlying derivative positions in USDe and redirect assets to USDtb to mitigate losses. The team also plans to position USDtb as collateral for margin trading on centralized exchanges in the future. *This is not investment advice. Continue Reading: Binance-Listed Altcoin Launches Major New Product
Prominent Bitcoin supporter Kiyosaki says this asset is about to skyrocket in price after gold
Trump’s Bitcoin Reserve could turn early investors into multi-millionaires, like Shiba Inu (SHIB) and Dogecoin (DOGE) did. Trump’s Bitcoin Reserve (TRUMPRES), a new Solana memecoin that was launched today, is set to explode over 17,000% in price in the coming days. This is because TRUMPRES is set to soon be listed on numerous crypto exchanges, according to reports. This will give the Solana memecoin exposure to millions of additional investors, who will pour funds into the coin and drive its price up. Currently, Trump’s Bitcoin Reserve can only be purchased via Solana decentralized exchanges, like Jup.ag and Raydium.io, and early investors stand to make huge returns in the coming days. Early investors in SHIB and DOGE made astronomical returns, and Trump’s Bitcoin Reserve could become the next viral memecoin. Trump’s Bitcoin Reserve launched with over $9,000 of liquidity, giving it a unique advantage over the majority of other new memecoins, and early investors could make huge gains. How to Buy To buy Trump’s Bitcoin Reserve on Raydium.io or Jup.ag ahead of the CEX listings, users need to connect their Solflare, MetaMask or Phantom wallet, and swap Solana for Trump’s Bitcoin Reserve by entering its contract address – 2GxwMgJnqbDuDec9gMVNfN2n8eVf7ks1EUv1RZSCLNm1 – in the receiving field. If you don’t have one of these wallets already, you can create a new wallet in a few minutes and transfer some Solana to it (which will then be used to buy the memecoin), from an exchange like Coinbase, Binance and many others. In fact, early investors could make returns similar to those who invested in Shiba Inu (SHIB) and Dogecoin (DOGE) before these memecoins went viral and exploded in price. If this happens, a new wave of memecoin millionaires could be created in a matter of weeks – or potentially even sooner. The Solana memecoin craze continues amid larger memecoins, like Shiba Inu (SHIB), Dogecoin (DOGE) and DogWifHat (WIF) trading sideways in recent weeks and losing momentum. This is why many SHIB, DOGE and WIF investors are instead investing in new Solana memecoins, like TRUMPRES. Such memecoins have no utility and no inherent value, but investors looking for high gains have been investing in them due to their potential to rapidly rise in price.
The U.K.’s Financial Conduct Authority issued a public notice against Solana meme coin Retardio, while holders celebrated a 16% price surge following the news. Retardio, a viral Solana ( SOL ) meme con project, may be providing or promoting financial services without regulatory permission, the FCA announced in a Dec. 16 update. Engaging with the meme coin disqualifies investors from using the Financial Ombudsman Service, the FCA’s complaint resolution channel. Retardio buyers are also excluded from protections offered by the Financial Services Compensation Scheme. “This means it’s unlikely you’d get your money back if the firm goes out of business,” according to the FCA notice. Retardio is a popular Solana meme coin with a $111 million market cap. The token spiked 16% following the FCA’s notice, after previously peaking near $240 million. The Retardio community responded to the news with memes and jokes on social media. The FCA issued a similar notice against the meme coin launchpad Pump.fun in early December. Pump.fun subsequently restricted platform access for U.K. users. You might also like: Solana’s Pump.fun bans UK users after FCA warning FCA crypto scrutiny amped ahead of 2025 plan Also on Dec. 16, the FCA released a paper proposing tighter restrictions on public crypto offers. The regulator plans to ban unregulated firms from providing services, building on 2023’s prohibition of digital asset promotions targeting U.K. investors. U.K. authorities plan to implement crypto regulations by 2025, crypto.news reported in November. Officials said stablecoins and staking would likely fall within the purview of introduced policies. Thought leaders like On Chain partner Brett Hillis opined that Britain must standardize its digital asset frameworks, especially following Donald Trump’s re-election. The government holds Bitcoin worth over $6 billion, mostly from criminal seizures. Read more: News UK to ban public crypto offers in incisive new regulatory climate