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Today’s Cryptocurrency Headline
Global conglomerate Sony Group’s joint blockchain venture with Startale announced the development of Soneium, its first Ethereum Layer-2 blockchain that focuses on scalability and user-friendliness, aiming for mainstream adoption. Soneium, upon launch, plans to deliver Web3 apps across a multitude of fields, including entertainment, gaming, and finance, leveraging Sony’s global Web2 presence, Sony Block Solutions Labs said in a statement.“Sony Group has strong distribution channels in multiple industries and existing users in our daily lives,” Sota Watanabe, Founder of Astar Network and Director of Sony Block Solution Labs, said in the press release. “Through Soneium, we will make something people want and go mainstream beyond Web3.” The joint venture is currently preparing the blockchain’s testnet launch, but the date of launch has yet to be announced. Sony Block Solutions Labs said that Soneium will release technical details on the platform’s tools and requirements for developers in the coming weeks. For the testnet launch, Astar Network will have its zkEVM integrate its assets and underlying infrastructure with Soneium to boost the new chain’s initial liquidity. Sony Block Solutions Labs said future use cases of Soneium include the protection of rights for creator-generated content and new mechanisms for fair profit-sharing between creators and fans. Meanwhile, it was reported last month that Sony is preparing to launch a local cryptocurrency trading platform in Japan.
BingX’s Bitcoin Chart
Source: TradingView & BingX
Resilient US job and inflation data and steady spot Bitcoin ETF inflows aided Bitcoin’s rally above $60,000.Bitcoin gained 4% between Aug. 21 and Aug. 22, and despite losing some momentum, it has sustained the $60,000 support. Some analysts argue that a break above the $62,000 resistance is necessary to confirm a bullish trend. However, given the market’s confidence in the United States Federal Reserve (Fed) implementing expansionary measures, the odds still favor Bitcoin bulls. In essence, investors remain bullish for the medium term but do not foresee an immediate catalyst to close the gap between Bitcoin and traditional markets. Investors anticipate that the Federal Open Market Committee (FOMC) will cut interest rates at the next meeting scheduled to conclude on Sept. 18. Some economists believe there is potential for a 0.50% rate cut, which would be considered aggressive and typically favorable for risk-on markets. Such a cut would lower the compensation for fixed-income investments like US Treasuries and reduce companies’ capital cost.
Even a 0.25% rate cut would signal to the market that the most severe phase of monetary tightening is behind us. Some traders might note that the S&P 500 is trading just 1% below its all-time high, and even gold, often considered the world’s most reliable store of value, reached its highest-ever mark on Aug. 20. In contrast, Bitcoin remains 16% below its June 2024 historic high of $71,943. This discrepancy partly stems from differing risk perceptions. Stocks offer a cushion through dividends and strong balance sheets, while gold is viewed as a hedge. Meanwhile, Bitcoin struggles to establish itself as an uncorrelated asset that serves multiple purposes. For example, global gold ETFs hold $246.2 billion in assets under management, while spot Bitcoin instruments, including ETFs and ETNs, total $66.6 billion, according to CoinShares. Despite Bitcoin’s intrinsic properties of censorship resistance and a fixed monetary policy, it still has a long way to go to solidify its presence in traditional financial markets. The support level is at $60,000 and the resistance level is at $62,500.
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