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Crypto market news highlights today
Ethereum co-founder Vitalik Buterin has announced a new approach to how he will interact with Layer 2 Rollups in his public communications, including blogs and speeches. Starting next year, to promote decentralization among Layer 2 Rollups, Buterin said he plans to only refer to Layer 2 solutions that have reached “stage 1+” in terms of decentralization unless they are part of a short grace period for particularly innovative new projects.
Buterin has expressed his views on X, stating that personal investments or friendships will not influence his decision to highlight certain Layer 2 technologies. “It doesn’t matter if I invested or if you’re my friend; phase 1 or fail,” Buterin said. According to Buterin, the criteria for a “phase 1+” implementation requires the council to reach 75% consensus to pass the proof-of-work system. At least 26% of the council members must be independent of the implementation team, emphasizing security and decentralization.
Buterin noted that this is a “very reasonable milestone” and a necessary step in the security of Layer 2 networks. Most Rollup-based Layer 2 blockchains on Ethereum have yet to decentralize their networks by reaching phase 1, through processes such as incorporating fault proofs. The only exception is the optimistically growing Arbitrum . Buterin also said that several teams working on ZK Rollups have informed him that they are on track to reach phase 1 status by the end of the year. Buterin also emphasized the importance of moving from “glorified Multisignature ,” a term for simpler, less secure systems for Layer 2 rollups, to a framework built on cryptographic trust.
Bitcoin BingX Chart
Bitcoin 1D Chart 09/12/2024 | Source: TradingView & Bitcoin
Bitcoin fell 2.2% on September 11 following the release of US consumer inflation data, but it quickly recovered to $56,500 within hours. This move was closely correlated with the S&P 500, which fell 1.6% on September 11 as the US Consumer Price Index growth hit its lowest level in more than three years. The price action over the past three days shows a high correlation between Bitcoin and the US stock market, at least in the short term. This scenario often occurs during important events, such as expectations for macroeconomic data or upcoming decisions by the US Federal Reserve (Fed).
Investors are hoping that slightly lower-than-consensus inflation on September 11 will prompt the central bank to adopt a more aggressive rate cut. The US core consumer price index (CPI) rose 2.5% year-on-year in August, but when excluding food and gasoline, prices rose 3.2% . From a trading perspective, this data has reduced the likelihood of a 0.50% rate cut on September 18, causing a negative initial reaction in the stock market.
Opinions may differ on how Dai inflation impacts Bitcoin prices, especially when XEM the cost of financing US debt. The US Congressional Budget Office (CBO) predicts that interest payments will exceed $1 trillion by 2025. Therefore, the longer the Fed keeps interest rates high, the more pressure it will put on government spending. In the long run, this inflationary trend could benefit Bitcoin prices, despite its failure to surpass $58,000 on September 10.
However, pointing to Bitcoin’s inability to sustain its rally based solely on macroeconomic data seems inconsistent, especially when the last close above $60,000 was on August 27. Some analysts point to outflows from Bitcoin Spot ETFs, while others cite ongoing regulatory uncertainty for exchanges, services, and intermediaries.
BTC 's current support level is $56,500 and resistance is $60,500.
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