Summary of digital currency developments

According to Bitcoin.com analysis, looking at Bitcoin's price history after the 2016 and 2020 U.S. elections, BTC peaked in December 2017 following the 2016 election, and in November 2021 after the 2020 election. For instance, during the U.S. election on November 5, 2016, BTC was trading at $703. By the end of 2017, it had surged to nearly $20,000. It is evident that Bitcoin’s value tends to rise significantly after each election, with each bull market peak occurring approximately one year after the election.

Bitcoin miners faced their toughest month of 2024 in August

August was the most challenging month of the year for Bitcoin miners, with mining revenues dropping by $99.75 million compared to July, marking the lowest income since September 2023. On-chain fees also declined in August, with total subsidies and fees amounting to $851.36 million, of which $20.76 million came from on-chain fees—reaching the lowest level since last year. This represented a decrease of $4.14 million from July.

September has typically been a tough month for Bitcoin. According to Spot on Chain, over the past decade, Bitcoin has only shown positive performance in September in three years: 2015 (+2.35%), 2016 (+6.04%), and 2023 (+3.91%). Although September often sees a decline, this is not a certainty. Factors that might mitigate September's downturn include:

1) August's negative performance possibly reducing September's decline;
2) The main selling pressure being alleviated;
3) Continued confidence from long-term holders;
4) Potential new buying power from Bitcoin ETFs;
5) Favorable interest rates, capital, and regulatory support for the market.

Analysts warn that Bitcoin could enter another bear market if it falls below $56,000

The Head of Research at CryptoQuant recently shared a detailed Bitcoin chart on X, highlighting a concerning trend: the BTC market cycle indicator is once again entering a bear market phase. This indicator is crucial for traders and investors as it defines the market's overall strength and direction, providing insights based on historical price trends. According to the analysis, $56,000 is a key support level that Bitcoin needs to hold to avoid a deeper and more destructive correction. If Bitcoin fails to maintain this level, the likelihood of a more significant decline increases, potentially exacerbating investor anxiety, especially given the recent volatile price movements.

Crypto analyst Ali has noted on X that Bitcoin is currently facing a critical price resistance level. Ali emphasized that the Short-Term Holder Realized Price is around $63,250, and BTC has struggled to break through this level since June 22. Ali explained that in a downtrend, this price level often acts as resistance because short-term holders are more likely to sell when the price falls below their entry point. The analyst warned that the market might experience continued selling pressure until BTC manages to turn this area into a support level.

Fraud Protection for Elderly Cryptocurrency Users

Adrian Przelozny, CEO of the Australian cryptocurrency exchange Independent Reserve, announced that the exchange will implement stricter monitoring measures for elderly cryptocurrency users, particularly those over 80. When the exchange detects withdrawals by elderly customers, they will make phone calls to confirm the transactions to prevent fraud. Przelozny highlighted that data analysis shows users over 65 are significantly more likely to be targeted by scams due to their limited familiarity with the internet and technology. To protect these clients, Independent Reserve has a dedicated compliance team that immediately contacts customers if suspicious transaction behavior is detected, inquiring about transaction details and assessing potential fraud risks.

Przelozny noted that individuals from low-income areas are also more susceptible to scams, as they may be more inclined to seek quick financial gains. Although some transactions might be mistakenly flagged as fraudulent, such measures are deemed necessary to prevent further victimization. According to Australian Federal Police data, $382 million was lost to investment scams in 2023, with about 47% related to cryptocurrencies, underscoring the importance of enhanced fraud prevention measures.

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