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Crypto market news highlights today
The blockchain joint venture between global conglomerate Sony Group and Startale has announced the development of Soneium , its first Layer-2 Ethereum blockchain focused on scalability and user-friendliness, aiming for widespread adoption. Sony Block Solutions Labs said in a statement that Soneium, once launched, plans to power Web3 applications across a variety of sectors, including entertainment, gaming, and finance, leveraging Sony’s global Web2 presence.
>> Read more: Overview of Ethereum Development Roadmap
“Sony Corporation has strong distribution channels in many industries and existing users in our daily lives,” said Sota Watanabe, founder of Astar Network and director of Sony Block Solution Labs, in a press release. “Through Soneium, we will create something that people want and become more popular in Web3.” The venture is currently preparing to launch the blockchain’s testnet, but the launch date has not been announced.
Sony Corporation Reveals Launch of Ethereum Layer-2 Blockchain, Named Soneium | Source: Soneium
Sony Block Solutions Labs said Soneium will release details on the platform’s tools and requirements for developers in the coming weeks. For the testnet launch, Astar Network will integrate its zkEVM into its underlying assets and infrastructure with Soneium to increase the initial liquidation of the new chain . Sony Block Solutions Labs said future use cases for Soneium include protecting rights to creator-generated content and new mechanisms for fair profit Chia between creators and fans. Meanwhile, last month, Sony was reported to be preparing to launch a crypto exchange platform in Japan.
Bitcoin BingX Chart
Bitcoin 1D Chart 23/08/2024 | Source: TradingView & BingX
Strong U.S. jobs and inflation data, along with steady Bitcoin ETF Capital , supported Bitcoin 's rally above $60,000 . Bitcoin gained 4% between August 21 and August 22. Despite losing some momentum, it has maintained support at $60,000. Some analysts believe that the resistance level of $62,000 needs to be broken to confirm the bullish trend. However, given the market's confidence in the U.S. Federal Reserve's expansionary measures, the odds are still in favor of Bitcoin bulls.
>> Read more: The Rise of Bitcoin ETFs: What You Need to Know
In essence, investors remain bullish in the medium term but do not foresee an immediate catalyst to close the gap between Bitcoin and traditional markets. Investors are anticipating that the Federal Open Market Committee (FOMC) will cut interest rates at its next meeting scheduled to end on September 18. Some economists believe that a 0.50% rate cut is likely, which is considered aggressive and generally beneficial to risk markets. Such a cut would reduce the premium paid to fixed-income investments such as U.S. Treasuries and reduce the cost of Capital for companies.
Even a 0.25% rate cut would signal to the market that the worst of the tightening is over. Some traders note that the S&P 500 is trading just 1% below All-Time-High , and even gold, often considered the world’s most reliable store of value, hit an all-time high on Aug. 20. Bitcoin , by contrast, is still 16% below its June 2024 record high of $71,943. The difference stems in part from different risk perceptions. Stocks provide a cushion through dividends and strong balance sheets, while gold is seen as a hedge.
Meanwhile, Bitcoin has struggled to establish itself as a non-correlated asset that serves multiple purposes. Global gold ETFs, for example, hold $246.2 billion in Assets Under Management, while spot Bitcoin instruments, including ETFs and ETNs, total $66.6 billion, according to CoinShares. Despite its censorship-resistant properties and fixed monetary policy, Bitcoin still has a long way to go to solidify its presence in traditional financial markets.
BTC 's current support level is $60,000 and resistance is $62,500.
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