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A new blockchain protocol aims to unite Bitcoin and Ethereum, the two largest cryptocurrency networks, through an innovative approach called "tunneling". This development comes as the crypto community seeks alternatives to cross-chain bridges, which have been plagued by security vulnerabilities. Jeff Garzik, an early Bitcoin core developer, founded the Hemi Network to create this link. The project views Bitcoin and Ethereum as components of a larger supernetwork. Unlike traditional bridges, tunneling creates an environment where Bitcoin and Ethereum can coexist. This approach aims to eliminate attack vectors associated with bridges. Max Sanchez, co-founder and CTO of Hemi Labs, explained the key differences. "We are using deep Bitcoin introspection in HVM to build an extremely secure, trust-minimized Bitcoin tunneling system," he said. The system is based on an adapted version of BitVM2. It focuses on enabling efficient transaction processing while maintaining Bitcoin-level security. Hemi's protocol allows users to move assets between Bitcoin and Ethereum networks. Sanchez added, "People will be able to tunnel Bitcoin assets through Hemi to Ethereum." Thus, this development could bring secure Bitcoin-based asset tokenization to the Ethereum ecosystem. The project recently raised $15 million from investors including Binance Labs. Meanwhile, Ethereum co-founder Vitalik Buterin has outlined plans to address interoperability issues. He predicts rapid progress in solving layer-2 interoperability problems. Buterin unveiled a roadmap for Ethereum, which includes proposals like EIP-3370 and EIP-7683, aimed at improving cross-network functionality. "I think people will be surprised by how quickly cross-L2 interoperability problems stop being problems," Buterin stated. He envisions a smooth user experience across the "Ethereum-verse". The Ethereum co-founder also commented on rollup technology. He expects all rollups to eventually adopt zero-knowledge proofs, though this transition may take "5+ years". As these developments unfold, the crypto industry watches closely. The success of projects like Hemi Network could reshape the landscape of blockchain interoperability. The enormous fragmentation is still seen as one of the main obstacles for mass crypto adoption by many experts.

Cryptocurrency analyst Benjamin Cowen believes Ethereum is nearing its cycle bottom against Bitcoin. He shared this view in a recent video update to his YouTube audience. Cowen argues that all alternative cryptocurrencies will eventually reach their lowest point relative to Bitcoin. He suggests Ethereum is close to this milestone. However, he notes that Bitcoin's market dominance is still rising. This metric measures Bitcoin's market capitalization against that of all other cryptocurrencies. "I still think that Bitcoin dominance is in an uptrend," Cowen states. He predicts it could reach approximately 60%. Currently, Bitcoin's dominance stands at 57.64%, according to TradingView data. This ongoing trend implies the ETH/BTC pair may experience further decline. Cowen acknowledges this possibility in his analysis. Despite this, he proposes that Ethereum could bottom out against Bitcoin before other alternative cryptocurrencies. This scenario challenges the common assumption that all cryptocurrencies bottom simultaneously. "There does exist a scenario where ETH/BTC bottoms before the collective altcoin market bottoms against Bitcoin," Cowen explains. He emphasizes that different assets may reach their lowest points against Bitcoin at varying times. Cowen believes Ethereum is currently in its "final stages of capitulation" against Bitcoin. While uncertain about the exact low point, Cowen expresses confidence in a relatively soon bottom for ETH/BTC. He outlines a worst-case scenario involving a brief upward movement followed by a lower low in December.

Bitcoin's market capitalisation has grown 350,000% compared to gold since its inception. New signals suggest another rally may be imminent. Peter Brandt, a seasoned market analyst, predicts Bitcoin could grow over 400% against gold by 2025. He bases this on a technical pattern in the BTC/GLD ratio chart. The chart compares the assets' performance, it serves as a barometer for Bitcoin's adoption rate versus gold. Brandt cites an inverse head-and-shoulders pattern for his bullish outlook. This pattern forms when price creates three troughs, with the middle one deepest. The pattern resolves when price breaks above the neckline with increased trading volumes. It typically rises by the distance between the neckline and the head's deepest point. Applying this principle to the BTC/GLD ratio chart suggests a target of 123. This means 1 BTC could equal 123 ounces of gold by 2025. Currently, 1 BTC equals 24 ounces of gold as of September 22, 2024, so the projected increase represents a more than 400% growth. Which is 'a lot', to say the least. Bitcoin's rapid adoption fuels the idea of it overtaking gold. Institutional investors and Bitcoin ETFs have boosted its presence in portfolios. Bitcoin ETFs have seen inflows of over $17.69 billion since January 2024. Projections suggest the Bitcoin ETF market could reach $220 billion by 2027. Brandt is not the only one who believes in Bitcoin's imminent victory over gold, which has been world's best asset to store wealth for centuries. Many analysts actually call Bitcoin 'digital gold', and that's for a reason. Experts like Anthony Scaramucci argue Bitcoin will surpass gold's market capitalisation within a decade. They cite Bitcoin's scarcity and portability as advantages.

Early Bitcoin wallets have stirred. Five wallets from Bitcoin's inception are moving funds after 15 years of inactivity. The wallets date back to January and February 2009. This was mere weeks after Bitcoin's launch. Each wallet received 50 Bitcoin as a mining reward. Blockchain data confirms the movements. One wallet's reward arrived on January 29, 2009. Three more received theirs on January 31. The final wallet was credited on February 2. These dates are significant. They closely follow Bitcoin's genesis on January 3, 2009. Satoshi Nakamoto, Bitcoin's pseudonymous creator, mined the first block then. The timing suggests a connection to Bitcoin's earliest days. These wallets likely belonged to individuals present at the cryptocurrency's birth. The value of these coins has skyrocketed. Initially worth nothing, they now represent a fortune. At current prices, the 250 Bitcoin total about $15.9 million. This valuation is based on Bitcoin's current trading price (roughly $63,000 per token). The crypto community is abuzz with speculation. Some suggest long-lost hard drives have been found. Others theorize about coma patients waking to newfound wealth. More intriguing theories abound. Some believe the wallets might belong to Nakamoto himself, others point to Hal Finney, an early Bitcoin adopter. Finney's involvement is noteworthy. He received the first Bitcoin transaction from Nakamoto on January 12, 2009. This was just days after Bitcoin's launch.

Bitcoin's short-term holder supply is decreasing at its fastest monthly rate since 2012. This trend has caught the attention of market analysts. CryptoQuant author Axel Adler Jr highlighted this development in a recent social media post. Short-term holders (STHs) are defined as investors who acquired their coins within the past 155 days. They represent one segment of the Bitcoin market, the other group consists of long-term holders (LTHs). Historically, longer holding periods correlate with decreased likelihood of selling. STHs are generally considered more volatile investors. LTHs, in contrast, tend to be more steadfast. Yes, they are the legendary HODLers, the pillars of the crypto market. The 30-day change in STH supply serves as a key metric for investor behavior. Earlier this year, this metric spiked during Bitcoin's rally to new all-time highs. It indicated a significant transfer of supply from LTHs to STHs. Such transfers are typical during bull markets. LTHs often take profits when Bitcoin reaches new heights. New demand, driven by market hype, absorbs this selling pressure. The trend has now reversed. The 30-day change in STH supply has plunged into negative territory. Over the past month, STH supply has decreased by approximately 15%. This marks the lowest 30-day change since 2012. This decrease doesn't necessarily mean LTHs are buying from STHs. Instead, it suggests STHs are maturing into the LTH category, they're holding past the 155-day threshold that defines STHs. The shift indicates increased patience among STHs during the current consolidation period. Analysts view this rise in HODLing sentiment as potentially positive for Bitcoin's outlook. HODLers aren't selling when prices plummet, but they tend to accumulate when they think the price is about to go up.