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Ammar Raza

11 Years Dormant Bitcoin Wallet Reawakens With $9.5M Gain: A Forgotten Fortune

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A long-forgotten Bitcoin wallet has finally seen some action after 11 years of dormancy. As reported by Peckshield Alert, the address “1MMXRA” was reactivated and transferred 412.23 BTC, worth over $9.5 million.

The address first purchased the BTC in September 2012, at a time when Bitcoin was trading near $12.36. Over the years, the cryptocurrency has seen significant growth, allowing the owner to make a profit of $9,571,542.

It is uncertain whether the owner held onto their Bitcoin for 11 years with unwavering conviction or if the wallet was only unlocked recently. Regardless, this serves as a testament to the staying power and potential rewards of holding onto Bitcoin in the long term.

Bitcoin LTHs On the Rebound

Glassnode’s latest weekly report sheds light on the long-term Bitcoin holder (LTH) cohort and its persistent losses since the LUNA collapse. Despite the setbacks, signs of recovery are starting to take shape, with a potential uptrend in LTH-SOPR.

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Source: Glassnode

The price surge has buoyed aggregate on-chain cost-basis models, improving the market’s financial standing. The momentum metric is now closing in on an equilibrium breakpoint similar to the recoveries seen in 2015 and 2018. In the past, breakouts above this point have signaled a shift in the macro market structure.

The short-term holder (STH) cohort has already started profiting, with STH-SOPR trading sustainably above 1.0 since March 2022. This reflects the large volume of coins acquired at lower prices. The overall market is also seeing a return to profitability after a long period of heavy losses.

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Source: Glassnode

The Adjusted Reserve Risk metric provides insight into the behavior of the HODLer class. As this cyclical oscillator approaches its equilibrium position, with 55% of trading days below its current value, it suggests a decline in the opportunity cost of HODLing and an increase in the incentive to sell. 

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Source: Glassnode

Previous breakouts above the equilibrium point have signaled a shift from HODLing to profit realization and a rotation of capital from older bear market accumulators to newer investors and speculators.

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Ethereum Testnet Zhejiang Successfully Conducts Staked ETH Withdrawals: Report

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In a major step towards its transition to a fully-featured proof-of-stake network, the Ethereum test network (testnet) Zhejiang successfully conducted withdrawals of staked ether (ETH) for the first time. On Tuesday, at 15:00 UTC, the upgrade was triggered and finalized 13 minutes later at 15:13 UTC, according to the February 7 report.

The Dress Rehearsal for Ethereum’s Future

According to Barnabas Busa, a DevOps engineer at the Ethereum Foundation, the Zhejiang testnet was designed to give developers a practice run of the withdrawals that will happen on the main Ethereum blockchain post its highly-anticipated Shanghai upgrade, expected next month.

Busa said:

On the Zhejiang testnet, partial and full withdrawals, as well as BLS changes, are included in the execution payload. We have a successful fork.

With the BLS modifications, individuals now have the ability to modify their withdrawal credentials to efficiently handle staked Ether withdrawals. The testnet in Zhejiang is the first of three to run a simulation of the upgrade in Shanghai.

Testnets duplicate the main blockchain and provide developers and users with a low-stakes environment to test any code changes to their applications. The next testnet upgrade will take place in the coming weeks, moving to Sepolia and then Goerli.

Ethereum’s Path to a More Efficient Network

As per the report, Shanghai will be Ethereum’s first hard fork since the Merge in September, marking its transition to a proof-of-stake network. The move to proof-of-stake increased the energy efficiency of Ethereum compared to when it utilized the POW system used by the Bitcoin blockchain. 

With proof-of-stake, cryptocurrency is “staked” on the blockchain by depositing it, providing a more efficient method of transaction validation and security.

However, until the Shanghai upgrade is completed, the staking mechanism is one-way, allowing users to deposit ether but not withdraw it. The upgrade has become a highly-anticipated event in the cryptocurrency ecosystem, with traders paying close attention to how it might impact the market. 

Some believe it will encourage more staking, while others believe ETH may experience a price drop due to selling pressures when stakers rush to withdraw their funds.

Related Reading | Cardano’s IOHK Released Its First Ethereum Sidechain

Ethereum Web3 Resilience Boosted By Infura’s Decentralized Marketplace: Report

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Infura, the Ethereum blockchain suite of APIs and developer tools, is about to take the Web3 ecosystem to new heights with its latest project, according to the February 7th report.

A decentralized marketplace of data providers aimed at preventing app crashes is being developed by Infura and promises to guarantee decentralized blockchains for years to come.

Infura Researcher Patrick McCorry explains that the new project will not be a separate blockchain but rather a marketplace connecting consumers of blockchain data with providers. 

It will be one of the initial providers on the network, alongside up to nine other providers who will work together to bootstrap the network and eventually grow the marketplace.

A Reliability Project for Ethereum’s Web3 Ecosystem

In a recent interview, McCorry emphasized that the goal of the decentralized Infura is to guarantee reliability and prevent any single point of failure in the Web3 ecosystem. 

The new marketplace will allow users to quickly switch to a new provider in case of an outage, making the Web3 ecosystem more resilient.

Furthermore, the decentralized Infura marketplace has the potential to be more censorship-resistant than its current centralized version. Providers will be spread across different geographical areas and operate under various jurisdictions, reducing the likelihood of censorship.

Web3 app developers widely use Infura to pull data from blockchains, and it is relied upon by many centralized exchanges for tracking deposit and withdrawal transactions. 

However, Infura has come under scrutiny for its centralization, as evidenced by the November 2020 MetaMask wallet app outage and inaccuracies in transaction data from centralized exchanges.

By developing a decentralized marketplace of data providers, Infura’s goal is to address these concerns and ensure the continued decentralization of blockchains. 

However, Infura and potential partners will discuss the project’s next steps at Ethereum Denver in late February or early March.

Nevertheless, its decentralized marketplace of data providers promises to boost the resilience of Ethereum’s Web3 ecosystem and prevent future Web3 app crashes. 

By spreading providers across different geographical locations and jurisdictions, the new project also has the potential to be more censorship-resistant.

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Investor Shift To Bitcoin, $230M Inflows In 2023: CoinShares Report

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Digital asset investment has seen a major change in investor sentiment, including Bitcoin, as reported by CoinShares. With year-to-date inflows now at $230m and the 4th consecutive week of inflows totaling $76m, it is clear that 2023 is shaping up to be a promising year for the cryptocurrency market.

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Source: CoinShares

As reported by Tronweekly, previously CoinShares reported that digital asset investment products experienced the largest inflows since July 2022, with $117 million entering the market. As a result, the total AuM has increased by 43% from November 2022 lows, reaching $28 billion. 

Most of these inflows, amounting to $116 million, were invested in BTC, with minor amounts going towards short-bitcoin at US$4.4 million. However, multi-asset investment products have seen outflows for nine consecutive weeks, totaling $6.4 million, indicating a preference for selective investments.

Bitcoin Dominates Investment Flows

BTC continues to be the primary focus of investors, accounting for a staggering 90% of the total inflows last week, with a total of US$69m. It highlights the growing confidence in the world’s largest cryptocurrency and its potential for long-term growth.

While other cryptocurrencies saw minor inflows, Ethereum saw only US$0.7m of inflows despite the improving clarity around unstaking. The minor inflows were into Solana ($0.5m), Cardano ($0.6m), and Polygon ($0.3m). However, Polygon also saw outflows of US$0.5m. It further emphasizes the dominance of BTC in the digital asset market.

Short-Bitcoin Gains Momentum

Despite the dominance of long-Bitcoin inflows, short-Bitcoin has been making gains with inflows totaling US$8.2m over the same period. While the short-Bitcoin inflows remain relatively small in comparison, the last three weeks inflows total US$38m, representing 26% of the total AuM. 

Although the trade so far hasn’t worked well year to date, with total short-Bitcoin AuM having fallen by 9.2%, the inflows are still meaningful from a relative scaling perspective.

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Source: CoinShares

Regionally, the majority of inflows were focused on the US, Canada, and Germany, with inflows of $38m, $25m, and $24m, respectively. Total investment assets under management have risen 39% year-to-date, reaching a high of $30.3bn, the highest it’s been since mid-August 2022.

Related Reading | XRP’s Value Might Touch Million In 7 Years, Expert Predicts

Binance Joins Other Crypto Firms In Aid For Turkish Earthquake Victims: Report

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A catastrophic 7.8 magnitude earthquake hit Turkey and Syria early on Monday, leaving behind a trail of destruction and debris. However, among others, the crypto sector has stepped up to offer them support, including Binance, the world’s leading crypto exchange.

The quake, one of the strongest to hit the region in a century, claimed over 4,300 lives and injured thousands more. As the affected communities and governments struggled to cope with the aftermath, the cryptocurrency community also offered support.

Multiple exchanges, including leading crypto exchange, Bitfinex, Bybit, and BitMEX, have pledged to offer aid packages to help those affected by the earthquake. Gate.io has stated that it has started preparing aid packages and will deliver them in coordination with the authorities.

Binance, Bitfinex & Others Supporting Victims

Binance CEO Changpeng Zhao took to Twitter to express his sadness and support for the victims, saying that the Binance team is working on a solution to help. 

In a tweet from Binance Turkey, the company expressed sympathy for the families of the deceased and hoped for a quick recovery for those who were injured.

According to Binance Turkey’s tweet translation:

May God have mercy on our citizens who lost their lives in the earthquake that took place in Kahramanmaraş and the surrounding provinces; Our condolences to their families and our nation, and we wish a speedy recovery to the injured.

Bitfinex has committed to developing an aid package for earthquake victims, and Bybit has announced that aid is being sent to the impacted area. 

Meanwhile, BitMEX has pledged to give the proceeds from its current trading competition to the Red Crescent and urged others who are able to make a donation to do so.

Turkey led the MENA region as the largest cryptocurrency market and recorded the highest year-over-year growth in crypto transactions among all regions in 2022. 

It was ranked 12th globally in terms of crypto adoption, with a 10.5% YoY growth in crypto transaction volume, according to Chainanalysis’s 2022 Global Crypto Adoption Index.

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Binance Unveils Revolutionary Crypto Tax Solution: Binance Tax

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Binance, the leading cryptocurrency exchange, has announced the launch of Binance Tax. This new crypto tax calculator gives users a comprehensive understanding of their crypto tax liabilities on up to 100,000 transactions, all at no extra cost. Currently, it is only available to users based in Canada and France.

Binance Tax: Your Reliable Tax Season Partner

Tax season can be a nightmare for many, especially for cryptocurrency traders who have to deal with thousands of transactions annually. Sifting through spreadsheets and manually computing gains and losses can be time-consuming and stressful. Binance Tax aims to change all that.

According to the official blog post from the exchange, with just one click, users can import their transactions into the calculator and receive a simple yet accurate estimate of their tax obligations tailored to their jurisdiction. 

Despite being in its early launch phase, its tax algorithm is designed to handle the volume and complexity of Web3 transactions.

However, for those struggling to keep up with their crypto taxes or just looking for a faster and more efficient solution, Binance Tax is the answer. This user-friendly tool streamlines the tax preparation process and eliminates the need for manual calculations, making tax season a breeze.

Nevertheless, it is a game-changer for the cryptocurrency industry. Its innovative algorithm and user-friendly interface make it the go-to solution for all crypto traders during tax season. 

The exchange users should keep in mind that the calculator is still in its early launch phase, and its algorithm may not cover all types of transactions yet. Nevertheless, Binance Tax is set to revolutionize the way crypto taxes are calculated and reported.

Exploring Binance Backbone: The Ledger 

Additionally, for their user’s transactions to be processed quickly, accurately, and around the clock, the world’s largest cryptocurrency exchange has a key technology driving its operations from behind the scenes. 

The Binance Ledger serves as a critical component of the platform, storing account balances and transactions while enabling services to make seamless transactions.

To support Binance’s massive user demand, the Ledger must meet certain requirements to ensure its performance. It includes high throughput during peak times, 24/7 availability without downtime, and bit-level data accuracy to prevent fund loss and transaction errors.

It creates the conditions needed for fast and reliable transactions. Its efficient design allows for a large number of transactions per second (TPS) during high-traffic periods, ensuring users can easily buy, sell, and trade their assets.

Binance Ledger’s role in supporting the world’s largest crypto exchange can’t be overstated. It ensures the smooth functioning of Binance by processing millions of transactions daily, providing users with a secure and efficient trading experience.

Related Reading | FTX Seeks Return Of Donation Funds By Feb 28

OKB Skyrockets To New Record High, Surpassing $45 Mark

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The cryptocurrency market has been buzzing with excitement as the OKX platform coin OKB sets a new record high of $45.54. This impressive feat surpassed the previous high of May 3rd, 2021, and is a clear indication of the growing popularity and success of the OKB token.

With $7.94 billion in assets and a 24-hour open interest of $4.01 billion, OKB stands tall as the second largest player in the market, trailing only Bitfinex and Binance. OKB has been making waves in the crypto world with impressive growth and a promising outlook. 

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Source: Coinglass

The token has seen a 17.03% increase in its weekly charts and a 1.03% increase in its daily charts, according to CoinMarketcap data. Currently trading at $44.40, the token has shown remarkable growth, with a 65.7% increase in the past 30 days, according to CoinGecko.

OKB 1D graph coinmarketcap
Source: CoinMarketcap

Additionally, this price rise can be attributed to the recent announcement from the OKX, the world’s second-largest crypto exchange by trade volume, that it has partnered with Manchester City Football Club stars Jack Grealish and others to introduce the OKX Collective, a new metaverse experience crafted exclusively for fans. 

The OKX Collective offers fans a one-of-a-kind virtual metaverse experience, allowing them to experience Web3 technology and receive exclusive content, experiences, and rewards from Manchester City players they admire.

OKB Experiences Phenomenal Growth in the Past Month

The OKB token has experienced a significant upward trend since June 2022, with an even sharper rise starting from December. The token’s value has skyrocketed by 99%, reaching a record high of $45.54 on February 5th.

OKB 1Y graph coinmarketcap
Source: CoinMarketcap

Despite this remarkable surge, the OKB price seems to remain strong. The weekly Relative Strength Index (RSI) indicates overbought conditions but lacks any bearish divergence, meaning the upward momentum is likely to persist.

Support levels for the OKB price can be found at $37 and $30, and as long as the price does not drop below the latter, the upward trend is expected to continue.

The next resistance level for the OKB is projected to be $50. However, with its impressive performance and optimistic outlook, the token has grabbed the attention of both investors and traders, making it a digital asset to keep an eye on in the near future.

Related Reading | Visa Eyeing Ethereum For ‘Muscle Memory’ Settlement Plans: Report

Visa Eyeing Ethereum For ‘Muscle Memory’ Settlement Plans: Report

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Visa has revealed its plans to allow customers to convert digital assets to fiat currencies on its platform. the company is testing the acceptance of USDC settlement payments on Ethereum. The goal is to develop “muscle memory” for settlements and handle large value payments in USDC on the Ethereum platform.

The news was delivered by Cuy Sheffield, head of Visa’s crypto division, at the recent StarkWare Sessions 2023 in Tel Aviv. According to Sheffield, global settlement with digital assets and fiat currencies is one of the key areas in which Visa invests.

The payment giant is working to incorporate blockchain technology into its existing network to facilitate faster transactions. However, settlements currently still take place on the SWIFT system, which has limitations that prevent money from being moved as frequently as desired.

To overcome these limitations, Visa has been testing the acceptance of settlement payments with stablecoins, such as USDC. Sheffield confirmed that the company sees huge potential in the blockchain and digital asset space and is looking to take advantage of its value on existing bank rails and rebuild it on top of blockchain rails using stablecoins.

Visa’s Interest in Ethereum And Stablecoins

Former CEO Al Kelly has also shared the company’s plans for central bank digital currencies (CBDCs) and private stablecoins, stating that they “have the potential to play a meaningful role in the payments space.” 

Sheffield confirmed the company’s positive outlook on blockchain technology and digital assets, noting that they are exploring ways to take the value that Visa provides on existing bank rails and rebuild it on top of blockchain rails using stablecoins.

Sheffield said:

We’re thinking a lot about how to take some of the value that Visa provides on existing bank rails, with existing forms of beyond in a rebuild that on top of blockchain rails, using stableboards. If we think there are huge opportunities in that area, it just kind of stays on emerging.

Nevertheless, Visa’s plans to allow for the conversion of digital assets to fiat currencies on its platform is a significant step forward in the company’s efforts to build “muscle memory” around settlements, particularly with regard to Ethereum and stablecoins. 

This move highlights the growing interest and adoption of cryptocurrencies and blockchain technology in the traditional finance sector.

Related Reading | Weekly Market Watch: Bitcoin & Ethereum’s Battle Of Bulls And Bears, Low Cap Tokens Experience Growth

Cardano (ADA) Surge: Sharks & Whales Fuel 65% Price Hike In 2023

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Cardano’s (ADA) price has skyrocketed in 2023, soaring more than 65% higher and showing no signs of slowing down. This impressive rise can be largely attributed to key players in the crypto market, namely sharks and whales, who are accumulating large amounts of ADA.

In recent days, addresses holding between 100,000 and 100 million ADA have seen an increase in the number of coins stored in their combined wallets, hitting levels not seen since November 8th. Today, the number of $100k+ whale transactions reached a 12-week high, according to data from santiment.

However, the increased accumulation by these large investors, commonly referred to as whales, has had a significant impact on Cardano’s price growth. Their large investments drive demand for the cryptocurrency, leading to price increases and attracting even more investors.

It is a clear indication that major players in the market are taking a serious interest in Cardano and driving up its value. As more and more people seek to diversify their portfolios and invest in cryptocurrencies, its strong performance and increasing popularity make it a strong contender for those looking to invest in the crypto market.

Cardano Price Soars, Additional Factors

According to the CoinMarketcap, ADA is currently trading at $0.404 with a slight rise in the daily chart and 5.74% growth in seven days chart. Additionally, the price has seen a 50% increase in the last 30 days and 10% over the previous 14 days.

ADAUSDT 2023 02 04 18 40 01
Source: Tradingview

Cardano (ADA) has seen a significant price surge due to key market players accumulating the cryptocurrency. While the boost can also be attributed to macroeconomic events and the broader financial markets, along with the recent launch of the overcollateralized stablecoin, Djed, on the Cardano mainnet. 

Since its launch, 1.85 million DJED have been minted, although its growth has been modest so far, with a total value locked (TVL) of $11.67 million, according to DefiLlama’s data.

Djed is designed to use the volatility of ADA to create a stablecoin pegged to the USD, making ADA a reserve currency. The stablecoin’s reserve ratio of 633% gives it the potential to impact ADA’s price by creating a supply shortage.

However, with only 29.4 million ADA in the Djed reserve, it hasn’t yet reached the volume needed to impact the price significantly. Its total circulating supply is 34.6 billion ADA, so it remains to be seen whether Djed can continue to grow and drive a supply shortage for ADA.

Related Reading | Whale Watch: $17M In Dogecoin Departs Binance On Feb 3rd 

MicroStrategy’s Bitcoin Dependence Leads To 8th Consecutive Quarterly Loss

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MicroStrategy Inc., the enterprise-software firm known for its significant public ownership of Bitcoin, posted yet another quarterly loss, its eighth in a row, due to a write-down of its cryptocurrency holdings, according to Bloomberg’s report.

The enterprise-software company, led by Bitcoin enthusiast Michael Saylor, recorded a net loss of $249.7 million in Q4 2022, with revenue declining 1.5% to $132.6 million.

Despite stepping down from his role as CEO in 2021, Saylor remains committed to his strategy of holding Bitcoin as a significant asset on MicroStrategy’s balance sheet. This approach saw the company’s shares drop 74% in 2021 as Bitcoin plummeted 64%.

However, MicroStrategy’s shares have rebounded, more than doubling since the start of the year 2023, as BTC saw a 45% rally. The company ended 2022 with $43.8 million in cash, its lowest in 40 quarters, and generated $3.2 million from operations, down from $94 million the previous year.

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Source: Bloomberg

Bitcoin & MicroStrategy’s Future

The Virginia-based firm continues to shape its financial future around Bitcoin, as it recorded another loss due to a writedown of its cryptocurrency holdings. MicroStrategy’s commitment to Bitcoin is evident, as its BTC holdings, worth $2.2 billion, have increased by $850 million since the end of last year.

As of December, MicroStrategy had accumulated 132,500 BTC, which it acquired for around $42.8 million in cash. The company sold 704 tokens for tax purposes and bought 810 more, demonstrating its unwavering commitment to BTC as a key asset.

MicroStrategy’s Bitcoin Strategy: Risk & Reward

The company’s choice to hold BTC as a significant asset on its balance sheet has brought both risk and reward. In addition, the company’s shares saw a 74% decline in 2021 as Bitcoin plummeted 64%, but shares have more than doubled since the start of the year, as BTC saw a 45% rally.

While it posted another quarterly loss due to a writedown of its cryptocurrency holdings, its commitment to BTC remains unwavering. However, the company ended the year with $43.8 million in cash, its lowest in 40 quarters, but the value of its BTC holdings, worth $2.2 billion, increased by $850 million since the end of last year.

As MicroStrategy continues to shape its financial future around BTC, only time will tell if this risk-reward strategy will pay off in the long term.

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