ALI

Bitfinex latest research: Speculative funds are shifting from Bitcoin to altcoins, usually signaling the arrival of "altcoin season."

ChainCatcher news, Bitfinex released a report stating, "Bitcoin's approach to the historic $100,000 mark is driven by unprecedented inflows into Bitcoin ETFs and strong institutional demand. Despite facing profit-taking resistance at its latest all-time high, Bitcoin has shown resilience, maintaining around $96,000 over the weekend and then regaining some upward momentum in early trading on Monday. Since the pre-U.S. presidential election low of $66,880, Bitcoin has risen by 47%, and it has astonishingly increased by 130% year-to-date, paving the way for new horizons. The performance of Bitcoin compared to traditional assets is undeniable: Bitcoin's market capitalization has now surpassed Saudi Aramco, becoming the seventh-largest asset globally, with a peak valuation exceeding $1.9 trillion.Although Bitcoin's upward momentum is remarkable, it is not without profit-taking from long-term holders. Despite increased pressure, the current pressure remains manageable compared to the historical peaks in March 2021 and March 2024. These trends indicate a temporary stagnation in market momentum, but the overall market may absorb selling pressure and continue to rise in the medium term.The overall cryptocurrency market (excluding Bitcoin and Ethereum, referred to as the Total3 index) has also reached a new cycle high, with investor sentiment surging, driving the Total3 index to experience a 23.2% increase from low to high last week—this is the largest increase since April 2021. Large-cap altcoins, such as Solana (SOL), have reached new all-time highs, marking their breakthrough of key resistance levels, including the April 2022 peak.The market capitalization of altcoins is now approaching the $984 billion high from May 2021, indicating that speculative funds are shifting from Bitcoin to altcoins. Historically, this kind of fund rotation often heralds the arrival of "altcoin season," where altcoins outperform Bitcoin.In fact, the annualized funding rate for large-cap altcoins has surpassed the 45% threshold, marking an increase in speculative activity. With the participation of retail investors on the rise, short-term volatility is expected to increase, further driving the momentum of altcoins. However, these conditions also require caution, as extreme funding rates often signal severe market corrections."

Vitalik: Simply issuing tokens and creating exchanges signifies the failure of the industry; this year is the best time to create meaningful applications

ChainCatcher message, Ethereum co-founder Vitalik expressed in an interview with Tencent's "Deep Dive" that he is concerned that if particularly smart people do not engage in Crypto, those who remain in the Crypto space may not have any interesting ideas, and the only applications will be the financial applications that have been around for many years. This would lead to a situation where—issue a token, create an exchange; issue another token, create another exchange; issue yet another token, this token features cute dogs—these things are fun, but if they are the only things our industry is doing, then the industry is failing. The challenge our industry faces is to create applications that are both meaningful and widely engaging.Regarding why the Ethereum ecosystem and the Web3 ecosystem still lack practical applications, Vitalik stated that before this year, transaction fees were too high, some important technologies were not mature, and issues related to account security and privacy had not been resolved. Therefore, before this year, our industry did not have enough technology to create applications that ordinary people could participate in. One reason for the success of DeFi applications is that DeFi can generate more money. This year, we have finally started to address these issues. This year is the best time to create meaningful applications.

Australia seeks public consultation on cryptocurrency asset tax report

ChainCatcher news, according to Bitcoin.com, the Australian Treasury has invited the public to provide feedback on the implementation of the OECD's Crypto Asset Reporting Framework (CARF).In a consultation paper released on November 21, the Treasury stated that implementing the CARF developed by the OECD would "complement the government's efforts to enhance tax transparency." The document will explore the policy advantages of incorporating the OECD model into domestic tax law and consider a timeline for implementation that can minimize compliance costs.It is claimed that the rapid growth of the cryptocurrency market has posed challenges for the government in terms of tax evasion and avoidance. To address this issue, the OECD developed the CARF, aimed at improving international tax transparency by ensuring that crypto-related information is reported in a standardized manner. The framework is expected to enhance the ability of OECD countries to monitor and tax crypto-related activities, thereby reducing opportunities for tax evasion and avoidance.The CARF will require crypto intermediaries, such as exchanges and wallet providers, to report specific crypto transactions to tax authorities. This includes information on the buying and selling of crypto assets. As explained in the consultation paper, Australia expects CARF reporting to begin sometime in 2026.
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