Daily Flash | US Upbeat Labor Report Failed To Catalyze Crypto Market, Terra Classic Pumped Over 180%, Cardano Vasil Upgrade Set For Sept. 22

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Today's Headline - Repurposing Bitcoin Mining Heat Can Solve Global Energy Crisis: Arcane Research

A research report by Arcane highlights the potential of the Bitcoin mining industry to revolutionize the energy industry. The report states that the heat produced by Bitcoin mining can be repurposed in many ways, including being used to heat up homes, industries, and other applications during the winter.

This offers various advantages such as operational subsidies and lower heating costs. The report also compares Bitcoin mining with other industries to highlight its efficiency as a reliable source of energy repurposing.

The research comes at a time when Europe’s inflation hit above 9%. The soaring inflation has played a part in increasing the energy costs which have surged by over 38% in the last 30 days.

Bearing this in mind, Arcane Research wrote that “Bitcoin mining can strengthen electricity grids, improve the economics of renewable energy, mitigate natural gas flaring, and lower heating costs by repurposing the heat.”

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Chart of the Day - Bitcoin Exchange Flow Balance: Santiment Analytics

As of this writing,
Bitcoin (BTC) is changing hands at around $19,942, up 0.63% in the past 24 hours,
while Ether (ETH) is trading at $1,578, or up 1.24% during the same period.

Major altcoins are trading in the green,
with Cardano (ADA) up by 5.38%,
Solana (SOL) +3.39%,
Polkadot (DOT) +0.62%,
Avalanche (AVAX) +0.33%,
and Cosmos (ATOM) +5.43%.



Last Friday, equities and cryptos faltered as traders tried to parse the US economy’s latest turn and what to expect from the Federal Reserve later this month.

The Non-Farm Payroll (NFP) figure shows the US added 315,000 jobs last month, while the unemployment rate rose for the first time since January, from July’s 3.5% to August’s 3.7%. Hourly wage increases in August eased slightly, coming in at 0.3% for the month.

Despite the upbeat US jobs report, it wasn’t enough to bolster confidence among investors to push the prices of Bitcoin (BTC) and ether (ETH) higher.

While the Dow Jones Industrial Index (DJIA), Nasdaq Composite Index (IXIC), and S&P 500 (SPX) fell 1.07%, 1.31%, and 1.07%, respectively, BTC and ETH also showed lackluster demands as both cryptocurrencies fell 0.91% and 0.68% on the day.

Historically speaking, September had been a bearish month for Bitcoin with an average loss of 5.9%. This September, aside from the much-anticipated merge, investors will also be looking at:

Sept 13: CPI data
Sept 15: $ETH merge
Sept 16: Mt. Gox Claims Deadline
Sept 21: FOMC rate hike decision
Sept 22: $ADA Vasil Hardfork


The resistance zone, formed between the last price on Monday ($20,290) and a daily resistance level of $20,398, which the bulls will likely attempt to break given enough catalyst, seems further away each time the bulls managed to pull back from the current support zone since each recovery is weaker than the last.

If the bears succeed in breaking below this support zone, the next stop will likely be formed between a daily support level of $18,975 and the 141.4% Fibonacci extension level ($19,100) measured from Aug. 13 - 19, before diving deeper towards the weekly support level of $18,431.



A break above this zone will likely see the bulls attempt to push prices towards the 100-Day EMA ($1,708) which coincides with the height of Aug. 26 before the unexpected slump.

To invalidate this outlook, the bears will likely use the 20-Day EMA ($1,605) as a resistance level, which is currently hovering between the aforementioned resistance zone, to bring prices back to the 38.2% Fibonacci level ($1,500) measured from Apr. 3 - Jun. 18.

If the bulls aren’t “buying the dips” at this level, then prices will likely be brought down to the monthly support level of $1,428 which forms a support zone with the 127.2% Fibonacci extension level ($1,385) measured from Aug. 14 - 20.

Notably, according to a report by The Block, the volume of ether futures exceeded that of bitcoin futures by 1.11 times in August. Ether futures crossed $1 trillion for the first time since May 2021 during August, clocking in at $1.64 trillion. Trading volumes for the second-largest cryptocurrency by market cap were $1.05 trillion in August, up from $934.9 billion in July.

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Influencer of the Day - Ethereum founder Buterin is concerned about Bitcoin’s security: Finbold Report

In an interview conducted over email with Bloomberg columnist Noah Smith on September 2, Ethereum co-founder Vitalik Buterin outlined two reasons why is is concerned about the security of the largest cryptocurrency by market cap.

He wrote,

“First, in the long term, Bitcoin security is going to come entirely from fees, and Bitcoin is just not succeeding at getting the level of fee revenue required to secure what could be a multi-trillion-dollar system. Bitcoin fees are about $300,000 per day and haven’t really grown that much over the last five years.”

Second, Buterin claims that the Proof-of-Work (PoW) consensus process has a vulnerability that might compromise users’ data security.

In his email statement, it is estimated in a hypothetical future when there is around $5 trillion worth of Bitcoin, all that is needed to launch a successful assault on the system is $5 billion worth of Bitcoin.

“Second, proof of work provides much less security per dollar spent on transaction fees than proof of stake, and Bitcoin migrating away from proof of work seems to be politically infeasible. What would a future look like when there’s $5 trillion of Bitcoin, but it only takes $5 billion to attack the chain? Of course, if Bitcoin actually gets attacked, I do expect that the political will to switch to at least hybrid proof of stake will quickly appear, but I expect that to be a painful transition.”
As the merge is inching by the day, investors will be increasingly looking into the man who sparked the smart contract revolution to find clarity for what comes after.

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Buzzes of Yesterday

Highlights:
#Terra Classic Pumped Over 180% in a week,
#Sudoswap to Airdrop SUDO Token,
#Cardano Upgrade Set for Sept. 22,
#Robinhood Enables ADA Trading,
#EU Energy Crisis Sparks Firewood Demand in Germany

DeFi

$1 billion pumped into Terra Classic’s market cap in a week as LUNC surged by 180%

Blockstream, Sevenlabs Partner to Launch Decentralised Bitcoin Exchange ‘XDEX’

Sudoswap is Planning to Distribute New Governance Token “SUDO” to XMON Holders

Blockchain Cardano’s Vasil Upgrade Confirmed for Sept. 22

dYdX Cancels $25 Deposit Bonus Campaign After Twitter Roasts Webcam ‘Liveness Check’

Crypto malware impersonating Google Translate app infects thousands of PCs

NFTs & Metaverse

Hacker Steals Bill Murray’s Crypto After $185K NFT Charity Auction

FIFA Launches NFT Collection on Algorand (ALGO)

Business & Finance

PwC Venezuela Twitter account hacked to promote scam XRP giveaway

Robinhood enables Cardano (ADA) trading for its 23 million users

Revolut slashes crypto trading fees by 20% starting October 2022

UBS, Wealthfront call off $1.4 billion deal

Mercado Bitcoin parent 2TM lays off more staff, calls for regulation

Meta Rolls out Immersive Learning to Select Universities as Part of Metaverse Push

Governments & Policies

Indonesia plans to set up digital assets exchange “Crypto Bourse” by the end of 2022

EU energy crisis worsens as Germany’s Google searches for ‘firewood’ explodes

Fed research papers warn about future risks from crypto CeFi and DeFi

The International Organization of Security Commissions (IOSCO) is scrambling to create ‘common standards’ for crypto

Author: Gate.io Researcher Peter L.
This article represents only the researcher's views and does not constitute any investment advice.
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