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Bitcoin's recent surge past $65,000 has set the crypto world abuzz. Analysts are now forecasting potential price targets north of $200,000. This bullish outlook stems from historical patterns and improving miner profitability. Pseudonymous analyst Cryptonary highlighted a key trend. "The end of Miner Capitulation periods following Bitcoin Halvings" has preceded significant price jumps "in subsequent months and year," they noted on X. Bitcoin was hovering just below $65,000 at the time. Cryptonary shared a hash ribbons chart. It showed miner capitulation periods and their characteristics. The chart revealed a striking pattern. The end of miner capitulation in previous halving cycles led to massive price increases: 2012 cycle: 5,110% increase 2016 cycle: 3,346% increase 2020 cycle: 591% increase "Assuming the current Miner Capitulation period ends soon, and using today's price of $64,700, an exponential decay model suggests a potential price peak of $223,000 for this cycle based on historical post-Halving periods," Cryptonary explained. Michael van de Poppe, founder of MN Capital, offered his two cents. He believes Bitcoin could hit $100,000 if it holds above $65,000 with "consistent institutional inflow." Independent analyst Cryptocon sees similarities to previous cycles. They shared a chart showing Bitcoin's multiple retests of the 2021 all-time high resistance. This mirrors the 2017 pattern. Cryptocon explained the potential next steps. Bitcoin may flip the previous all-time high into support. This could trigger the "most important cycle price action." In simpler terms, if Bitcoin reclaims the 2021 high of around $69,000, it might enter a parabolic uptrend into uncharted territory. This is the outcome we are all counting for, right? Yet, there is a catch, or even a couple of those. Another trader, known as Nebraskangooner, pointed to a technical indicator. The sharp rise in the Goon X indicator is a "good sign for strong trend continuation and new ATHs" for Bitcoin, they claim. But let's pump the brakes for a sec. We've seen this rodeo before. Bitcoin's volatile nature means these predictions should be taken with a hefty grain of salt. Historical Context and Market Dynamics To understand the current excitement, we need to look back. Bitcoin has a history of boom and bust cycles. These often coincide with its halving events, which occur roughly every four years. The halving reduces the rate at which new bitcoins are created. This effectively decreases the supply of new coins entering the market. If demand remains constant or increases, this can lead to price appreciation. The last halving occurred in May 2020. Bitcoin's price subsequently skyrocketed from around $8,000 to nearly $69,000 by November 2021. Then came the crash. Bitcoin plummeted below $16,000 in late 2022. Now, we're seeing signs of recovery. The next halving is expected in April 2024. This has many investors eyeing potential gains. Institutional Interest and Market Maturation One key difference in this cycle is increased institutional involvement. Major companies and investment firms have dipped their toes into crypto waters. This includes Tesla, MicroStrategy, and more recently, BlackRock's filing for a Bitcoin ETF. These moves lend legitimacy to Bitcoin. They also potentially increase demand from traditional finance players. This could drive prices higher in the long run. However, regulatory concerns loom large. The crypto industry faces ongoing scrutiny from governments worldwide. Unclear or unfavorable regulations could put a damper on Bitcoin's growth prospects. Miner Dynamics and Network Security Bitcoin miners play a crucial role in the network's security and operation. When miners are profitable, they're more likely to continue their operations. This strengthens the network. The end of miner capitulation periods often signals a bottom in Bitcoin's price. As profitability returns, miners are less likely to sell their Bitcoin reserves. This reduces selling pressure on the market. Currently, miner profitability is improving. The hash rate, a measure of the network's processing power, has also been climbing. These are generally seen as positive indicators for Bitcoin's health and potential price appreciation. Of course, there is an unusual case of Germany selling BTC seized in anti-criminal activities. That is definitely a selling pressure that can outweigh the miners income, at least for some time. Technical Analysis and Market Sentiment Many traders rely on technical analysis to predict Bitcoin's movements. The multiple retests of previous resistance levels, as noted by Cryptocon, are seen as bullish signals. If Bitcoin can decisively break above its previous all-time high, it could trigger a new wave of FOMO (fear of missing out). This could drive prices higher in a self-fulfilling prophecy. However, it's worth noting that technical analysis has its limitations. Bitcoin's price is influenced by a complex mix of factors. These include macroeconomic conditions, regulatory news, and market sentiment. Risks and Challenges While the current outlook seems rosy, there are plenty of potential pitfalls. Regulatory crackdowns, security breaches, or a broader economic downturn could all derail Bitcoin's momentum. We've seen that a lot already. And we all remember that every bullish cycle is unique and rather unpredictable, so making predictions based on old data only, is pretty naive. Moreover, Bitcoin's energy consumption remains a contentious issue. Environmental concerns could impact institutional adoption and public perception. There's also the question of scalability. As Bitcoin grows, it faces challenges in transaction speed and fees. Developments in layer-2 solutions like the Lightning Network aim to address these issues, but their widespread adoption remains to be seen. And we can be sure that even given all the advances in this area, we might still not feel the effect of all those technologies in the current bull run, not just yet. Maybe in the next one.

Russian President Vladimir Putin has raised the alarm on an impending energy crisis. The culprit? Unchecked growth of bitcoin mining in the country. Yes, this is what President of the country amid conventional war is really worried about. Putin highlighted the massive power consumption of mining operations. They account for about 1.5% of Russia's total electricity usage. That's a whopping 16 billion kilowatt-hours annually, which would be enough for a number of small countries to survive for years. The president's concerns focus on regions like Irkutsk, Buryatia, and Zabaikalsky Krai. These areas have been experiencing frequent power shortages. Maybe, military facilities are out of electricity too often, but who knows, they will not tell us the truth anyway. Putin acknowledged cryptocurrencies aren't conventional money. Yet, he noted their increasing use in international settlements. He emphasized the significant energy demands of digital coin mining. Russia has become a hotspot for these operations. Low power prices and portable mining equipment are the main draws. Putin cautioned that unchecked expansion could push regional power systems to breaking point. The energy drain has wider implications beyond just operational costs. Putin stressed broader social and economic risks. He pointed out that power shortages could impact businesses, housing, and public services. The president's remarks echo concerns voiced by regional leaders. They've highlighted potential disruptions to new businesses, residential areas, and crucial social infrastructure. "Uncontrolled increase of electricity consumption for cryptocurrency mining may lead to a power deficit in some regions," Putin said. It's not rocket science, folks. Amid the crypto mining chaos, Putin also took the opportunity to promote Russia's digital ruble. This central bank digital currency (CBDC) is already making waves. Russia's leader is probably impressed by what China does trying to control its citizens with digital yuan project, that has yet to be fulfilled. The digital ruble has facilitated 7,000 payments for goods and services. It's also enabled over 27,000 transfers. Putin's pushing hard for its adoption, touting these numbers as proof of its "efficiency and usefulness." The digital ruble is a key player in Russia's broader strategy. It's part of a plan to modernize the financial system and reduce dependence on Western financial institutions. With Western sanctions biting, it's high on Russia's economic agenda. Putin's government is urging companies to explore cryptocurrencies and other digital assets. They're seen as alternatives to international transaction systems. It's a bold move, to say the least. The situation's a bit of a mess, really. Russia's juggling economic opportunities with potential risks. It's anyone's guess how this'll play out in the long run.

Paraguay's Bitcoin mining crackdown has reached a new milestone. The country has seized over 10,000 ASIC miners this year. This puts it on par with Venezuela's recent enforcement efforts. The National Electricity Administration (ANDE) has conducted more than 70 raids. These targeted suspected Bitcoin mining farms across Paraguay. Venezuela's crackdown is part of a broader anti-corruption drive. Paraguay's focus is different. It aims to stabilize power grids at risk of overload. The latest raid in Ciudad del Este nabbed 450 ASIC rigs. They weren't plugged in. The machines were stashed in a warehouse in Hernandarias, Alto Paraná. ANDE called it a "storage site for crypto farm equipment." Prosecutors think the gear might be from a nearby facility in Santa Mónica. This case may be linked to a previous "failed" raid. Miners allegedly cleared out an illegal farm before investigators arrived. Hernandarias is becoming a hotspot for illicit mining. Authorities have filed 20 criminal cases there this year alone. Bitcoin mining is a hot-button issue in Paraguay. The country is known for its hydroelectric power surplus. Some reckon mining could boost Paraguay's economy. Currently, the nation offloads excess power to neighbors on the cheap. A new industry group is pushing back against higher energy rates for miners. They claim it could "kill off" the sector and cost Paraguay $1.5 billion and hundreds of jobs.

Illegal cryptocurrency mining operations in Malaysia have stolen electricity worth astounding $723 million between 2018 and 2023. Their profits from Bitcoin and Ethereum mining for that period remains unknown, yet it would be fare to assume the sum is also epic. This revelation comes from Akmal Nasrullah Mohd Nasir, Deputy Minister of Energy Transition and Water Transformation. Nasir disclosed this information during an event where seized items, including Bitcoin mining machines and electrical equipment valued at $467,000, were destroyed. He stressed that these illicit operations harm both the state-controlled power operator and local communities. Energy companies can detect abnormal usage patterns. Thieves typically avoid registration and bypass meters or divert power from existing lines. "The theft of electricity by those who mine cryptocurrency occurs because they believe this activity cannot be detected due to the absence of meters on their premises," Nasir explained. However, energy suppliers can identify unusual consumption in an area. This capability allowed Malaysian officials to seize over 2,000 items in October 2022. While cryptocurrency mining itself is legal in Malaysia, stealing electricity for this purpose is not. The Universiti Teknologi MARA clarified this distinction in December 2022. Malaysian authorities have been cracking down on illegal miners since at least August 2019. Nasir emphasized that these operations comply with national criminal procedure laws. Some seized machines have been crushed by steamrollers as part of the disposal process. It's a no-nonsense approach to deterrence, to say the least. Curbing illegal mining is a priority for the Ministry of Energy Transition and Water Transformation. This effort runs alongside initiatives to boost renewable energy sources in Malaysia. But legal actions against illegal crypto activities in Malaysia are not limited to that. There is more. Malaysian authorities have also taken action against unregistered cryptocurrency exchanges. In May 2023, the Securities Commission Malaysia ordered Huobi Global to cease operations due to lack of registration. That makes Malaysia one of the countries with the most strict approach to illegal crypto activities. Currently, only six cryptocurrency trading platforms are registered in Malaysia: HATA Digital, Luno, SINEGY, MX Global, Tokenize Technology, and Torum International. No Binance, no Coinbase, if you've noticed. In a related development, Malaysian authorities busted a forex investment fraud and cryptocurrency syndicate in May. The operation had been laundering funds from overseas scams. Eight local men and two women were arrested in raids across the Klang Valley. Assets seized included 129 vehicles with exclusive registration plates worth $3.8 million, 75 branded watches valued at $2.1 million, and 18 luxury vehicles worth $1.7 million.

Block has announced its first customer for its 3nm mining ASICs. The buyer is Core Scientific, a major Bitcoin mining firm. This deal is significant in the history of Bitcoin mining, as it proves Jack Dorsey is a a real visionary far beyond Twitter. Core Scientific will receive chips with 15 exahashes per second (EH/s) capacity. This will boost the company's hash rate by 60% compared to June 2024 levels. The agreement allows for additional volume. Block's Proto team developed the new mining platform. It aims to improve efficiency and reliability for large-scale operations. Core Scientific will be able to optimize its data center resources. Russell Cann, Core Scientific's Chief Development Officer, said the partnership will "define a new paradigm for scaled Bitcoin mining". He believes it will benefit operations and strengthen the Bitcoin network. Core Scientific's stock is up 2% today. It has gained 167% in two months. The rally follows reduced concerns about miner capitulation after April's Bitcoin halving. Block's shares haven't fared as well. They're down 1% today and 12% year-to-date. The stock remains far below its 2021 peak, and that is a bit worrisome for many of the Block's fans. Block completed its Bitcoin mining chip in April. Jack Dorsey, Block's CEO, said it would help miners "survive and thrive" after the fourth halving. Miners feel insecure about halving events, and Dorsey feels this might be a point of interest for customers and investors. Block claims this deal is one of the largest ASIC agreements in Bitcoin mining history. It's a big step for the company's efforts to "democratize Bitcoin mining". But, the company is branching out beyond mining. In March, it launched Bitkey, a hardware wallet for Bitcoin self-custody, which is pretty in line with Dorsey's old passion for Bitcoin maximalism.