Daily News | El Salvador Launches Bitcoin Mining Pool, Lava Pool; There is Decline in both Bitcoin Miners’ Income and ETH Pledging Income in September

2023-10-05, 08:39

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## Crypto Daily Digest: El Salvador Launches Bitcoin Mining Pool, Lava Pool; There is Decline in both Bitcoin Miners Income and ETH Pledging Income in September; BIS Launches a Platform That Can Help the Central Bank Track Bitcoin Flow
Volcano Energy, the Salvadoran government-led <a href="/uk/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> mining project, has partnered with Luxor Technology to launch the country’s first mining pool, Lava Pool. Volcano Energy chose to cooperate with Luxor because the latter has sufficient experience in providing Bitcoin mining software and services. The project also managed to mitigate market volatility with the help of a hash rate forwards market of Luxor as well as automated risk management strategies employed by other major Bitcoin mining operators. 
 
According to data from The Block Pro, September saw a decline in both Bitcoin miners’ income and ETH staking income. Specifically, Bitcoin miner income shrank further to US$753 million, declining by 6.4%. At the same time, <a href="/uk/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> staking income also fell by 11.2% to approximately $115 million.
 
The UK's Financial Conduct Authority (FCA) is about to launch a second cryptocurrency sandbox, which will include established rules governing digital securities.
 
A study released by the Bank for International Settlements (BIS) on Wednesday suggests that new decentralized financial data platforms may include statistics of data on the cryptocurrency market and therefore facilitate the supervision of market participants. "We are developing an important new public product for central banks around the world," Cecilia Skingsley, head of the BIS Innovation Center, said in a statement. 
 
Hong Kong Exchanges and Clearing Limited (HKEX) announced the launch of  HKEX Synapse (Synapse), which is the Shanghai-Shenzhen-Hong Kong Stock Connect transaction settlement acceleration platform. This is an innovative comprehensive platform that adopts the latest technology to allow multiple parties to jointly handle the post-settlement process so as to significantly improve the efficiency and transparency of the post-settlement process. Synapse is scheduled to be launched on October 9, 2023, aiming to use DAML smart contract technology to standardize and simplify post-trade workflows, improve operational efficiency and transparency, and reduce settlement risks.
 
Immunefi calculates that hacker attacks and fraud have caused $685.5 million in losses to the Web3 ecosystem in the third quarter, a 59.9% increase from the same period last year.
 
Based on a quantitative analysis of the blockchain finance industry, Allied Market Research predicts that the sector has the potential to achieve a 60.5% <a href="/uk/price/compound-comp" target="_blank" class="blog_inner_link">Compound</a> annual growth rate (CAGR), and the size of the market can expand to  $79.3 billion by 2032.
 
Ripple’s Singapore branch has received a major payments institution license from the Monetary Authority of Singapore (MAS), enabling it to provide digital payment token services in Singapore, the company said.
## Today’s Main Token Trends
### BTC
![](https://gimg2.gateimg.com/image/article/169650653010411696495014_.pic.jpg)
View: Since Bitcoin reached the daily chart gate on August 17, BIC has been fluctuating around  $25,000-$28,500 for nearly a month and a half. There will be trading signals when it breaks up the pressure level of $30,000 above and the support level of $26,000.

### ETH
![](https://gimg2.gateimg.com/image/article/169650654710421696495028_.pic.jpg)
View: Ethereum has been anchored to Bitcoin since 2023 while running below Bitcoin, which is a reappearance of the picture in  2019 as market was experiencing a recovery. Although the second launch of Ethereum's test network Holesky was successful, there remains no guarantee whether the Cancun upgrade, which is scheduled to take place by the end of the year, can be consummated. Since the replacement of POW with POS, the Ethereum community has been facing a centralization trend, to which it has yet to find any solution. All those issues fuel pessimism in the market. The daily line continues to fluctuate between $1530-$1750, and there will be a trading signal when it breaks down the support level of $1530-$1550.

### ON
![](https://gimg2.gateimg.com/image/article/169650656410431696495040_.pic.jpg)
View: After long-term consolidations, the OP’s daily line has formed a breakout and retracement pattern after the MACD bottom divergence, signaling that the bearish trend may end and a bullish trend may ensue. If this is the case, there will be trading opportunities when it breaks up $1.59 and $1.79. However, if it is contrary to our prediction to see Bitcoin and Ethereum fall sharply, it may indicate a potential for a bearish market.  In such a case, we should see whether the price can stop falling and rebound somewhere around $1.2, which can mean an opportunity to sell assets to stop loss.  
## Macro: ADP Data Indicates a Soft Employment Market; Non-agricultural Data to Be Published This Friday is Widely Noted 
The discouraging  U.S. ADP employment data released yesterday is very contrary to general expectations.  This, however, has the effect of temporarily easing the downward pressure on risk assets.

First, we need to understand the definition of the ADP employment. ADP employment is prepared by American automatic data processing companies and is regarded as relatively authoritative data about the US labor market. The data is also referred to as "foreshow of non-agricultural employment data". By looking at the ADP employment, the market can generally predict how the  U.S. non-agricultural employment data will perform.

ADP data released yesterday showed that the United States saw an increase of 89,000 private jobs last month, well below the 160,000 forecast by Dow Jones and below the upwardly revised 180,000 in August. Specifically, the leisure and hospitality industry contributed to the majority of employment in September, offsetting the decrease in hired staff in professional and business services, manufacturing, trade, and transportation. The number of workers hired by large enterprises also declined. The report is additional proof evidencing that the labor market is continuing to experience a downward trend. The labor market has long resorted to spur consumer spending to drive economic growth. Under the pressure of stubbornly high inflation and rising borrowing costs, some employers are reducing the number of hirings.

Looking back at the historical data, we find this month’s ADP saw the smallest increase since 2021, indicating weakening demand for labor in several industries.

After the ADP data was released, CME FedWatch showed that there was an 81.3% chance that the Fed would keep interest rates within the range of the 5.25%-5.50%  in November, and an 18.7% chance of raising interest rates by 25 basis points to a 5.50%-5.75%. There is an 64.3% probability to see interest rates remain unchanged by December, 31.8% chance to see a cumulative 25 basis point increase in interest rate, and 3.9% probability to see a cumulative 50 basis point increase in interest rate hike. Swaps also show the Fed is less likely to raise interest rates again.

Regarding this, JPMorgan Chase comments that putting aside the relationship between the ADP data and the non-farm payrolls data, the ADP data does show a trend of slower growth in the labor market in recent months, which is roughly consistent with what should be happening in the labor market. Mike Loewengart, the director of JPMorgan Chase & Co. mentioned that ADP is not necessarily a reliable predictor of the government's monthly employment data. But if the declining tendency in the labor market is confirmed by Friday's report, it will help reduce anxiety among stock investors facing the rising interest rates.

Meanwhile, the U.S. ISM Services PMI fell to 53.6 in September from 54.5 previously, according to consensus. The data shows signs of cooling of the services industry, as consumers are getting increasingly picky as financing costs keep rising, inflation remains stubbornly high, and wages increase at an increasingly slower pace.

As we pointed out in our previous articles, the current macro-financial environment is experiencing a transition where tight policy control starts to loose up, which may cause unstable performance in some economic data. The declining employment data  will give the Fed some breathing time, and at least provide a reason for it to weaken its hawkish stance.

We will closely watch non-agricultural wage data to be released this Friday. If the data indicates a less pessimistic picture, it will be more helpful to boost the market including the crypto sector.

<div class="blog-details-info">
<div>Author:**Peter L.**, Gate.io Researcher
<div>Translator:Sally
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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