How will Bitcoin change in the age of AI?
China establishes digital yuan hub in Shanghai.
BlackRock applies for a Bitcoin ETF.
As important US economic indicators also impact the cryptocurrency market, we delve into the truth behind altcoin season!
Let’s analyze global economic and cryptocurrency news and consider economic trends together! This Saturday, September 27th, we’ll discuss today’s cryptocurrency news and on-chain market conditions.
This program delivers the latest news to help you build your wealth. Let’s start by looking at 24-hour data headlines from the cryptocurrency market.
First, we’ll start with the topic that “Bitcoin mining will not die even in the age of AI; rather, a price adjustment may occur.”
Amidst the buzz about the evolution of AI technology, some have expressed concerns that “AI will destroy the Bitcoin mining industry.” However, experts point out that AI actually promotes mining efficiency and optimizes operating costs, potentially reshaping the pricing structure of the entire mining industry.
Technological innovations have impacted the mining environment in the past, but each time, the market has adapted and found a new equilibrium. This time, too, the introduction of AI is expected to further optimize power consumption and computing power, allowing miners to supply Bitcoin at more competitive prices.
Market participants have commented that while AI will lower mining costs, it will also reassess market prices.
Next, we turn to the topic of “The U.S. core personal consumption expenditures (PCE) index for August was 2.9%, as expected. What does this mean for Bitcoin?”
This index is one of the inflation indicators closely monitored by the Federal Reserve, and the 2.9% figure was in line with market expectations. This suggests that the Fed’s monetary policy is unlikely to change significantly, which could ultimately bring stability to the Bitcoin market.
Some investors and analysts view this situation as a clearer investment environment for Bitcoin. Given the past history of price fluctuations during periods of high inflation and monetary tightening, this calm is a positive signal.
Next, we’ll introduce a major development: China’s official opening of a digital renminbi hub in Shanghai.
The Chinese government has established a “Digital Renminbi Hub” in Shanghai, which will serve as an international base for promoting the digital renminbi (e-CNY). The facility aims to accelerate the spread and application of digital currency by collaborating with domestic and international companies and financial institutions.
The background to this is China’s intention to increase the presence of its digital renminbi in the international financial market. Its expansion in a financial city like Shanghai will particularly strengthen ties between the Chinese economy and the global economy.
International financial professionals have noted this development, saying that China’s promotion of a central bank digital currency (CBDC) will also have an impact on global payment structures.
And then there’s the news that BlackRock has filed an application with the U.S. Securities and Exchange Commission (SEC) for a Bitcoin premium income exchange-traded fund (ETF).
BlackRock is one of the world’s largest asset management companies, and its announcement of its entry into the cryptocurrency industry has caused a major stir. This ETF product not only aims to capitalize on price increases through Bitcoin holdings, but also to generate income through lending and staking.
While approval from the SEC is currently awaited, market participants and investors are hopeful that approval will lower barriers to entry for institutional investors and lead to increased market liquidity.
Finally, we turn to the question of “What drives altcoin season?”
Altcoin season is a phenomenon in which many altcoins (cryptoassets other than Bitcoin) surge in value over a short period of time. There are several factors behind this. These include:
– A period of Bitcoin price stabilization or correction
– A shift in investor sentiment toward risk
– Anticipation for new technologies and projects
In fact, market data shows that Bitcoin dominance (market capitalization ratio) declines around the time of altcoin season, resulting in capital inflows into a variety of stocks. Some experts have analyzed altcoin season as more than just price fluctuations, but as a complex phenomenon influenced by market participant sentiment and technological innovation.
There are three key points to this change.
First, the use of AI technology may improve the efficiency of the entire mining industry and lead to a restructuring of market pricing structures.
Second, stabilizing US economic indicators are reassuring investor sentiment, leading to an improved investment environment for cryptocurrencies.
Third, major players and national governments are becoming more fully involved in the cryptocurrency and digital currency markets, as seen in China’s establishment of a digital yuan hub and BlackRock’s application for an ETF.
All of these factors are likely to intertwine in complex ways and shape the overall direction of the cryptocurrency market over the coming months and years.
That’s all for today’s news highlights. Our channel provides in-depth, specialized features focused on valuable news in the cryptocurrency world. If you find this channel valuable, please share, follow, and turn on notifications.
See you tomorrow.
