This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
Much has been written on Bitcoin's hard-coded scarcity over the past few years and the resulting potential for supercharged capital gains in a rising demand environment. But now, Bitcoin holders can amplify their gains via the passive income-enabling staking mechanism.
Babylon's Self-Custodial Bitcoin Staking Mainnet
🚀 REVOLUTION. IS. HERE! 🔶🔒
🔸Self-custodial Bitcoin staking—has finally been unlocked. 🔓
🔗 Participate in Babylon Bitcoin Staking Mainnet Phase-1: https://t.co/on18unO9iY
🔸The Babylon Bitcoin Staking Mainnet launch leads to the third native use case for #Bitcoin, the… pic.twitter.com/onBS5ZIHKb
— Babylon (@babylonlabs_io) August 22, 2024
To wit, the provider of a number of security-sharing protocols for decentralized apps (dApps), Babylon, has now activated its self-custodial Bitcoin staking protocol.
Under this protocol (dApp), Bitcoin holders can lock up their BTC holdings via a self-custodial staking script for a specific time period. In return, BTC stakers receive staking rewards as well as voting power in an eligible Proof-of-Stake (PoS) protocol.
Currently, Babylon's staking protocol is in the locking-only phase, which eschews any staking rewards or incentives for participation. Later phases will support staking rewards, however.
Do note that Babylon has established an initial total staking limit of 1,000 Bitcoins for the first phase.
Bullish Wave Yet To Crest?
Meanwhile, Bitcoin has seen lackluster price action ever since clinching a new all-time high of $73,794 earlier this year. However, there are increasing signs of budding underlying strength.
First, as of this Tuesday, Bitcoin's 7-day average funding rate plunged to -2.53 percent, indicating growing sell pressure. Concurrently, Bitcoin's notional open interest for the recently concluded week hit a 1-year high of over 28,880 BTC. This is a setup that is ripe for a short squeeze.
What's more, spot Bitcoin ETFs have officially become the fastest growing ETFs of all time, having attracted ~$17.5 billion in inflows since their launch in January.
7/ Eye-catching, right? Bitcoin ETFs are by far the leaders in terms of institutional adoption. That's true whether you measure by number of institutions or AUM.
— Matt Hougan (@Matt_Hougan) August 21, 2024
Critically, institutional investors are voraciously plowing their funds in spot Bitcoin ETFs. Their appetite, however, is being eclipsed by the rip-roaring demand from retail investors.
If we look at prior Bitcoin Halvings and compare this cycle to the last cycle, we are currently at an end of September 2020 period.
At the end of Sept 2020, the BTC price went from $10.5K to over $56K just 5 months later.
History doesn't repeat but let's see if it rhymes pic.twitter.com/MfSNAfruNU
— On-Chain College (@OnChainCollege) August 22, 2024
Historical precedents suggest that September is the month to watch for explosive price action in Bitcoin.
NEARLY HALF OF ALL CORPORATE ELECTION CONTRIBUTIONS IN 2024 HAVE COME FROM THE CRYPTO SECTOR.
Axios notes: “Blockchain companies have supplied 48% of the $248 million of corporate money donated to influence federal elections this cycle,” according to Public Citizen. pic.twitter.com/M6Aa6k5WjQ
— *Walter Bloomberg (@DeItaone) August 22, 2024
And, if you still think that crypto is not a pertinent topic for the upcoming US presidential elections, think again. According to Axios, crypto-linked entities have contributed around half of the $248 million pie of corporate money that has been spent to influence federal elections in this cycle.
Bear in mind that the former US president and the current Republican contender, Donald Trump, has already promised to establish a dedicated BTC reserve if he wins office in November.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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