Gold price forecast looks bearish dragged by fundamental risks technical indicators – FX Leaders’ But

Gold price forecast looks bearish, dragged by fundamental risks, technical indicators – FX Leaders’ But

 Gold prices look set to continue their recent retracement as the technical and fundamental picture worsens, according to Arslan Butt, Lead Commodities and Indices Analyst at FX Leaders.

Butt said the near-term price forecast for spot gold looks weak as the precious metal is seeing its third consecutive down day, hitting a one-week low of $2,050 per ounce during Monday’s Asian trading session.

“This decline is attributed to the robust inflation figures emanating from the United States last week, which have fueled expectations that the Federal Reserve will maintain a stance of prolonged high-interest rates,” he wrote. “Consequently, this scenario has bolstered US Treasury bond yields, providing a boost to the US Dollar (USD) and placing pressure on non-yielding gold.”

Despite this, Butt said the market is still anticipating rate cuts from the Federal Reserve as early as June.

“This expectation, combined with ongoing geopolitical tensions, is anticipated to provide a floor to gold’s value, preventing further significant losses,” he said, but cautioned that investors “are likely to remain on the sidelines, awaiting additional indicators of the Fed’s interest rate trajectory” which they hope to glean from Wednesday’s FOMC meeting.

Butt pointed out that U.S. inflation data is having a sizable impact on gold’s price dynamics, “which could adversely affect the appeal of gold.”

“Reports from the University of Michigan’s preliminary survey indicated minimal change in both one-year and five-year inflation expectations in March, while the US Consumer Sentiment Index dipped to 76.5,” he noted. “The CME Group’s FedWatch Tool suggests a 60% probability of an interest rate reduction at the June policy meeting, tempering USD bullishness.”

He said that ongoing geopolitical tensions, “particularly the continued Russia-Ukraine conflict and unrest in the Middle East,” are also expected to support the value of gold as a safe-haven asset.

“Recent escalations include intensified Ukrainian drone attacks on Russian oil facilities and Israeli Prime Minister Benjamin Netanyahu’s confirmation of plans to advance into Gaza’s Rafah region,” he said. “These developments contribute to a climate of uncertainty, bolstering the gold case.”

Turning to the technical picture, Butt noted the formation of a descending triangle breakout pattern on the 4-hour chart.

“Gold’s (XAU/USD) price dipped to $2147.07, marking a 0.36% decrease, as it teeters below its pivotal $2157.22 pivot point,” he wrote. “The asset’s breach of the descending triangle pattern close to the $2157 level highlights this movement as being bearish.”

“Immediate resistance lies ahead at $2173.06, with further obstacles at $2189.33 and $2204.58,” he added. “Conversely, support levels are identified at $2139.00, $2124.63, and $2109.75, which could act as potential rebound zones.”

Butt said that a number of technical indicators, including a Relative Strength Index (RSI) reading of 36 and the 50-day Exponential Moving Average (EMA) positioned at $2150.84, support a bearish outlook.

“The violation of the descending triangle pattern suggests imminent selling pressures, potentially driving the price towards the $2139.00 support level,” he said.

“Overall, gold exhibits a bearish trend below the $2150 mark, with any upward movement past this threshold signalling a shift towards bullish momentum.”

Kitco Media

Ernest Hoffman

Time to Buy Gold and Silver

Tim Moseley

Standard Chartered’s Bold Forecast: Bitcoin To Rise To 150000 This Year

Standard Chartered’s Bold Forecast: Bitcoin To Rise To $150,000 This Year

By Brenda Ngari – March 18, 2024

British multinational bank Standard Chartered has upped its Bitcoin price prediction target for end-2024 to $150,000 from the previous estimate of $100,000.

BTC To Hit $150,000 By End-2024

Standard Chartered has projected that by the end of this year, the benchmark crypto Bitcoin may succeed in hitting the $150,000 threshold, up from the previous $100K.

Standard Chartered analysts said last year that Bitcoin could reach $100K in 2024. By July, they had revised their forecast to predict a $120,000 price tag for the same timeframe.

The bank based its analysis for the new $150,000 target on the comparison with the price of gold after U.S. gold exchange-traded funds launched and the correlation between ETF inflows and the price of Bitcoin.

“For 2024, given the sharper-than-expected price gains year-to-date, we now see potential for the BTC price to reach the $150,000 level by year-end, up from our previous estimate of $100,000,” Standard Chartered Bank analysts led by Geoffrey Kendrick said in a March 18 report.

When gold ETFs hit the market, the price of the precious metal surged as new investors gained access to the market. Although gold prices climbed gradually as investors invested money into the ETF product, Standard Chartered contends that the BTC market “will mature much faster.”

The U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin exchange-traded funds (ETFs) in mid-January after a decade of denials. The BTC investment vehicles then began trading the next day, and have since seen blockbuster success.

As for higher peaks, the bank’s analysts “see a good chance of an overshoot to the $250,000 level at some stage in 2025” if BTC ETF inflows hit their mid-point estimate of $75 billion and/or if forex reserve managers begin purchasing Bitcoin.

“We think the gold analogy — in terms of both ETF impact and the optimal portfolio mix — remains a good starting point for estimating the ‘correct’ BTC price level medium-term,” the report explained.

Is Spot Ether ETF Approval On The Cards?

Standard Chartered also suggested that the SEC could give the approval stamp to spot ether (ETH) ETF later this spring, which will lead to inflows of $45 billion in the first year and ETH smashing the $8,000 level by the end of the year.

Ether is currently priced at $3,508.55 after dropping 3.5% over the past 24 hours, according to CoinGecko data. The second-largest crypto hit an all-time high of $4,878 in November 2021.

Notably, Standard Chartered analysts also think the price of ETH will reach $14,000 in 2025 as Bitcoin soars to $250,000.

That being said, there is little chance of spot ETH ETFs being greenlighted this year, as the Securities and Exchange Commission faces heightened political pressure not to allow ETFs for other crypto assets beyond Bitcoin.

DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Brenda Ngari and posted on Zycrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

Binance CEO Predicts Bitcoin Rally Past 80000 As Investments In Crypto ETFs Surge

Binance CEO Predicts Bitcoin Rally Past $80,000 As Investments In Crypto ETFs Surge

By Newton Gitonga – March 17, 2024

Binance CEO Richard Teng has shared his bullish stance on Bitcoin, predicting that the cryptocurrency will soar above $80,000, driven by increasing institutional investments in crypto-backed exchange-traded funds (ETFs).

Speaking at an event in Bangkok on Sunday, the former regulator noted that the launch of spot Bitcoin ETFs in the US earlier this year has already started to attract institutional investors and new fund flows, adding, “We’re just getting started.”

Teng further revealed he expects Bitcoin to soar above $80,000 before the end of the year as crypto demand continues to soar and supply reduces. He, however, emphasized that the rally won’t be a “straight line” and the market will experience ups and downs, which is good for the market.

The pundit’s prediction of Bitcoin is not new. Earlier last month, Teng surveyed his followers on Bitcoin’s potential value by the end of 2024, offering options of $40,000, $80,000, and $120,000. Interestingly, the survey results favoured a bullish expectation of $120,000.

In a tweet on Sunday, the CEO further hinted at his bullish stance for BTC when asked about the significance of the number 3 to him in the Thai community.

“Many good things in crypto have 3 syllables – BTC, BNB, ATH, To The Moon… Now you know.” He wrote.

Notably, Bitcoin has experienced a remarkable price surge, catalyzed by the recent approval of several spot ETFs earlier this year. This surge propelled Bitcoin to achieve an all-time high of $73,750 last week. Moreover, the total daily crypto exchange volume on March 14 nearly reached $100 billion, marking the first instance since 2021.

The launch of Bitcoin ETFs in the US has also led to relentless inflows, with more endowments, and family offices are expected to step up allocations into Bitcoin ETFs in the near term. According to data from crypto BitMEX Research, ETF net inflows this week topped $2.565 billion, propelling the cumulative net inflows to a staggering $12 billion after 47 days of trading. According to experts like Willy Woo, this could be the tip of the iceberg.

Teng, who took over as CEO after co-founder Changpeng Zhao stepped down in November following the company’s $4.3 billion settlement with US authorities, has long advocated crypto adoption. In a recent interview, Teng noted that as more regulators spend time, energy, and resources to understand and formulate regulatory frameworks for crypto, it will instil further trust within the community and user base, leading to mass adoption.

Despite plunging since Thursday due to market participants’ profit-taking behaviour, Bitcoin demonstrated resilience on Sunday as it attempted to break minor resistance around $68,000.

The market is expected to continue fluctuating within its current range until the supply diminishes, potentially paving the way for a bullish breakout. The crypto asset traded at $67,108 at press time, reflecting a 1.10% drop over the past 24 hours.

DISCLAIMER: None Of The Information You Read On ZyCrypto Should Be Regarded As Investment Advice. Cryptocurrencies Are Highly Volatile, Conduct Your Own Research Before Making Any Investment Decisions.

The original article written by Newton Gitonga and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

The gold market has gotten ahead of anticipated Fed easing cycle – Barclays

The gold market has gotten ahead of anticipated Fed easing cycle – Barclays

The gold market has gotten ahead of itself and is due for a further correction after a relatively quiet week following its breakout to record highs, according to one major British Bank.

While off of last week's high above $2,200 an ounce, gold prices have rallied more than 5% this month. In recent comments, Stefano Pascale, Equity Derivatives Strategist at Barclays, said that gold’s surging bullish momentum is being driven in part by expectations that the Federal Reserve will begin its new easing cycle in June.

He added that gold’s nine-day rally this month is one of the longest bullish streaks for precious metals on record. However, he said that there could be limited upside for gold in the near term.

“Our model shows the yields and the U.S. dollar should have accounted for only one-third of the actual rally that happened. So there's something else at work. Now, we did some positioning analysis, and, basically, there's strong evidence that the Fed pivot sort of forced macro funds to switch from having a negative exposure to gold by positive exposure,” Pascale said in a recent interview with Yahoo News.

However, Pascale also noted that this gold rally might be a little premature as the precious metal typically is fairly quiet ahead of expected easing from the Federal Reserve. He explained that gold prices tend to rise after the first Federal Reserve rate cut, not in anticipation of it.

Although gold has not followed the typical pattern, this has been one of the most anticipated pivots for the Federal Reserve in recent history. Since the start of the year, the U.S. central bank has signaled that interest rates will be coming down in 2024, but it wants to be confident that inflation is falling back to its 2% target before it starts the new easing cycle.

Complicating the Federal Reserve’s stance is recent economic data that shows inflation remains stubbornly elevated. This week, the U.S. Consumer Price Index and Producer Price Index showed hotter-than-expected inflation pressures.

According to the report, consumer prices are being driven by rising shelter costs and higher gasoline prices. Meanwhile, the PPI is considered a leading indicator of inflation as it highlights rising costs early in the supply chain; businesses typically pass on higher costs to consumers.

Although markets still expect the Federal Reserve to lower interest rates at its June monetary policy meeting, confidence in this move is slowly starting to wane.

According to the CME FedWatch Tool, markets see only a 55% chance of a rate cut. Last Friday, markets saw a more than 80% chance of easing.

Pascale said Barclays expects the Federal Reserve to begin its easing cycle in June. He added that the Bank recommends investors use option call spreads to get some upside exposure to gold in the current environment.

“The advantage is that for a price, it has some sort of insurance built in. So you have upside exposure, but you're not exposed to the downside. And right now, I think volatility markets are giving you a really good entry point for that type of strategy,” Pascale said in the interview.

Kitco Media

Neils Christensen

Time to Buy Gold and Silver

Tim Moseley

There is a legitimate opportunity for a home-based business

There is a legitimate opportunity for a home-based business,

There is a legitimate opportunity for a home-based business, and here are the five ways to make your decision.

ecosystem for entrepreneurs

When embarking on the journey of starting a home-based business, it is crucial to keep in mind the five W’s – who, what, when, where, and why. These fundamental questions can effectively guide the determination of the specific aspect of the opportunity to pursue and identify the essential requirements to get the business off the ground. By conscientiously considering and addressing these facets, the process can be considerably less daunting and more streamlined, ultimately paving the way for a smoother and more successful entrepreneurial venture.

WHY

Having a clear understanding of why you want to find a good home-based business is the first step. Is it all about the money? Are you planning to quit your job to make more money? Maybe you want to have more free time to spend with your loved ones and friends. Or are you unable to go to work because of a disability or serious illness?

The answers to these questions can help you gain a more in-depth comprehension of the factors that motivate you to pursue this particular chosen line of work. Jumping across a gorge is not something that you do merely for the purpose of jumping. It’s usually because you have to get to the opposite side of the situation. Focus is created when you become aware of the reasons for your search for a real opportunity to run a business from home.

WHAT

In light of the fact that you are seeking for a real home-based business opportunity, this line of inquiry may appear to be absurd; yet, do you intend to go to clients or customers for any aspect of your firm? In order to meet with or provide service to clients or consumers, do you intend to establish a specific radius? Or are you planning to communicate with people all over the world? Through the use of the internet, you will undoubtedly be able to accomplish your goal. This is of the utmost importance when it comes to establishing and keeping your lawful home-based business opportunity going.

TO WHOM

Who is the target audience for the items and services that you offer through your legitimate home-based company model? There is a wide range of potential target groups, including children, men, women, families, and corporations. For the purpose of conducting research on your audience in your region, it is imperative that you question who. Does a big portion of your target audience reside in an area that is geographically remote, generic, or global? In the event that your lawful home-based business opportunity makes use of the internet, then any and all of the aforementioned individuals constitute your target audience. Both marketing and sales rely heavily on this.

WHAT IS IT?

The aspect of a reputable home-based company opportunity that most piques your interest is just which one? Is it the actual marketing and sales of the product that you find more enjoyable, or is it the process of developing a thing by hand? Some aspects of running a business are fun, and it is in these areas that you will flourish. Then there are those who cause conflict. It is helpful to be aware of both your talents and limitations in order to better prepare yourself for the positive and negative aspects of operating a reputable home-based business opportunity.

IT IS WHAT

Specifically, what type of legal home business are you interested in? Do you want to work in wholesale or online business? You could consider offering services like tutoring or sewing. Affiliate marketing is a great option for a home business. Figure out what you really want to do for your home business.

These five categories are simple but have a big impact on how you set up your legal home-based business. You need to have the right answers to make the best business decisions for success and satisfaction. If you start selling car parts online but hate working on cars, you won’t be happy doing it every day. Before transitioning to a good home-based business, make sure you know why you’re doing it, have a goal in mind, and understand what you enjoy. This way, your decision to start a good home-based business will be very worthwhile and last longer.

There is a legitimate opportunity for a home-based business

Tim Moseley

Investors speculate on Fed’s decision next week as inflation remains persistent

Investors speculate on Fed’s decision next week as inflation remains persistent

A primary purpose of holding or investing in gold is to protect one’s portfolio against high inflation. It has always been considered an inflationary hedge. Simply put, one can extrapolate that if interest rates remain elevated or spike higher it will provide bullish tailwinds supportive of higher gold pricing.

This is true with one exception; when the Federal Reserve is initiating either quantitative tightening or quantitative easing. Currently, the Federal Reserve is completing a multiyear period of quantitative tightening in which they have raised interest rates from historic lows of 0% to a ¼%, all the way to between 5 ¼% and 5 ½%.

Higher interest rates exude a bearish influence on gold because gold does not contain any intrinsic yield. When fixed income assets such as treasuries have high yields it diminishes the allure for gold. This scenario is the economic environment that we find ourselves in today.

One-Two Punch

This week two important reports revealed new data concerning current inflationary pressures. The Consumer Price Index revealed that inflation for February came in hotter than expected. Yesterday’s release of the most current Producer Price Index revealed that producers raised the price of their goods by 0.6% during the month of February. Because a hot PPI is a precursor to a hot CPI we can expect that inflation this month could continue to be elevated.

This has pressured gold off the highs achieved last Friday. Tuesday's release of the CPI took gold futures down $25, and on Wednesday gold recovered gaining back approximately $15 of Tuesday’s decline. For the remainder of the week, gold softened but still did not trade to a lower low than the low achieved on Tuesday.

One week ago, gold futures challenged $2200 per ounce and traded to a high of $2203. The price of gold above $2200 for the first time in history was short-lived, but the fact that gold has remained above $2150 all week is a sign that a base is being formed, and we may see that price tested again soon. Gold has been extremely resilient and able to hold onto most of its recent gains even with moderate headwinds from dollar strength, and higher treasury yields.

As of 6 PM EDT, gold futures basis the most active April contract is currently fixed at $2159.40 after factoring in today’s modest decline of $7.10 or 0.33%.

Market participants will now begin to enter a “wait-and-see mode” as the Federal Reserve will begin the March FOMC meeting. According to the CME’s FedWatch tool, it is almost a certainty that they will not announce or initiate any rate cuts for March. They will however release their most current economic outlook and release a revised “dot plot” an integral component of the SEP (summary of economic projections). The dot plot released in February anticipated that the first set of rate cuts by the Federal Reserve would begin this year and anticipated that they would cut rates by three-quarters of a percent. They also projected continued rate cuts in 2025, and 2026 as they “normalize” its benchmark interest rates (fed funds rate) just above 3%.

If there are no major changes in the dot plot released next week in essence that information should already be factored into current pricing and be supportive of gold prices maintaining value.
 

Gary S. Wagner

Time to Buy Gold and Silver

Tim Moseley

Trad-Fi Wants To Dominate Crypto Is It succeeding? What Does It Mean For Crypto?

Trad-Fi Wants To Dominate Crypto. Is It succeeding? What Does It Mean For Crypto?

Charles Hoskinson, the founder of Cardano, is a prominent figure in the cryptocurrency industry and is known for his unwavering belief in its potential to revolutionize the financial system, much like Markethive. Throughout the years, I have documented the evolution of Cardano creator Charles Hoskinson's efforts in developing the Cardano protocol and his humanitarian quest. 

In a recent video, Hoskinson expressed his concern that the traditional financial system is slowly but surely taking over the crypto industry, a notion that has sparked a heated debate among experts. While cryptocurrency's original intention was to supplant traditional financial systems, some fear that if it continues on its current path, it may ultimately become even more dystopian than any central bank digital currency.

In a live video broadcast on February 13, 2024, Charles passionately shared his thoughts on the intersection of legacy finance and the crypto world, titled "Legacy is Eating Crypto." This article summarizes Charles' insights, supplemented by perspectives from Coin Bureau's crypto experts. We will also explore ways in which the crypto industry can safeguard itself from being overtaken by traditional financial institutions, commonly referred to as "Trad-Fi."

Stablecoins

Charles started by mentioning that he has been discussing the significance of decentralized algorithmic stablecoins in various recent interviews and how they differ from centralized asset-backed stablecoins, which he believes could threaten the cryptocurrency industry. 

A stablecoin that relies on algorithms to maintain its value relative to a traditional currency is known as an algorithmic stablecoin. The most well-known example of such a stablecoin is Terra's UST, which suffered a collapse around May of 2022. However, Charles had a different type of algorithmic stablecoin in mind; he was referring to a stablecoin that is backed by another cryptocurrency, such as MakerDAO’s DAI, which can be minted by locking up another crypto as collateral, such as ETH. 

The issue is that DAI may not be genuinely decentralized anymore, as it is now primarily backed by centralized assets. This makes it similar to other centralized stablecoins, such as Circle’s USDC and USDT, which Charles categorizes as asset-backed. Like USDC and USDT, DAI's value is supported by real-world assets, specifically US government debt and US dollars, which are susceptible to seizure.

For context, Charles shared some key facts. Firstly, he mentioned that centralized stablecoins constitute approximately 10% of the total market capitalization of cryptocurrencies. While this may not seem significant initially, it becomes notable when considering the second statistic: about 70% of all cryptocurrency transaction volume involves a centralized stablecoin. Charles emphasized that centralized stablecoins such as USDC and USDT are minted and redeemed by centralized companies that are typically subject to strict regulations. He explained that while these regulations are not inherently harmful, they imply that these entities are under government oversight, unlike cryptocurrencies.

Moreover, these entities are restricted in their ability to drive innovation in stablecoins, as they must operate within the boundaries of regulatory compliance. Additionally, they cannot issue stablecoins in a fractionalized manner, meaning that an equivalent value of US dollars or bonds must fully back each stablecoin in circulation. This poses a significant challenge, as it enables centralized stablecoin issuers to potentially influence the outcome of a hard fork by deciding which chain becomes the dominant one.


Source: Investopedia

In other words, they would have to select which chain to transfer all their stablecoins to, as doubling the supply isn't an option. Interestingly, Vitalik Buterin, the creator of Ethereum, acknowledged this reality in 2022. He opined that Circle, the issuer of USDC, could dictate which chain emerges victorious in the event of an Ethereum fork.  It is worth mentioning that Cardano is not exposed to this threat since it does not currently support any centralized stablecoins. 

Bitcoin ETFs

Charles then pointed out the possibility of centralized stablecoin issuers implementing KYC at the blockchain level. He also highlighted criticisms regarding the absence of centralized stablecoins on the Cardano blockchain. Charles emphasized that those advocating for centralized stablecoins on Cardano without considering the associated risks are solely focused on increasing the value of the ADA token.  He also drew parallels to the situation with spot Bitcoin ETFs, highlighting that these ETFs now hold over 200,000 BTC valued at over $10 billion, and argued that asset managers operating these ETFs wield a similar level of influence over Bitcoin as Circle does over select smart contract cryptocurrencies.

This stance is both intriguing and controversial. On the one hand, it suggests that the forecast about Circle's rise to prominence in cryptocurrency is materializing. On the other hand, there is room for debate as asserting control over Bitcoin involves more than just influencing its price.  While Charles posits that the growth of spot Bitcoin ETFs could allow them to control Bitcoin in the event of a fork, this argument is not without its critics. Some argue that controlling Bitcoin requires more than just price manipulation. However, Charles suggested that with the ongoing absorption of BTC by spot Bitcoin ETFs, there is a possibility for these entities to amass enough control to potentially dominate Bitcoin in case of a fork.

For reference, in its ETF filing, BlackRock clearly mentioned that it would decide which Bitcoin fork to back in the event of one. Consider a situation where Bitcoin splits into proof-of-stake and proof-of-work networks. The likelihood is high that BlackRock and other asset managers would choose to support the proof-of-stake fork because their significant BTC holdings would essentially give them control over the new Bitcoin blockchain through their spot ETFs.

The irony is that ESG-obsessed asset managers are more concerned about the government's control over Bitcoin rather than its environmental impact. While proof of stake is praised for its eco-friendliness, the control aspect truly holds significance. Moreover, asset managers like BlackRock could offload their proof-of-work BTC holdings after a fork, causing the price to plummet and making it unprofitable for miners to continue validating transactions. This could ultimately lead to the demise of the proof-of-work chain.


Source: Coinmarketcap

Charles emphasized that the dominance in the crypto industry lies not only with stablecoin issuers and asset managers but also with centralized exchanges where the top three control the majority of trading volume. According to Charles, there are just ten entities that have the potential to control the crypto market.  However, considering Blackrock's partnership with Coinbase and its management of USDC's reserves, it's likely that the number of entities with such control is even smaller. Furthermore, Blackrock's influence extends to the US government, as evidenced by a recent lawsuit settlement with Binance granting it extensive oversight over the exchange.

In any event, Charles proceeded to make an intriguing statement, highlighting that if you ignore the advice of these organizations, they will not add your cryptocurrency to their list, and they will not introduce a stablecoin on your blockchain. This brings up the question of whether this is the reason Cardano lacks a centralized stablecoin – due to their unwillingness to adhere to such requirements.

Cardano

Charles noted that Cardano has successfully avoided being controlled by centralized stablecoin issuers and their associates, which has led to it being overlooked and undervalued. He pointed out an explicit prejudice against Cardano within certain industry circles. Charles reiterated that many in the Cardano community are growing impatient with ADA's price action and are “trying to invite the vampires in so that ADA's price will pump.” 

Charles expressed that it's not his place to make a decision, but he felt others needed to understand the implications of their choices. He emphasized that if vampires are allowed to enter, they will eventually hold power over everything related to Cardano. However, he also suggested that ADA could be delisted if it doesn't meet the standards of trad-fi-backed crypto elites. Charles stressed that every decision in crypto comes with a trade-off; nothing is free. He posed the question of whether the purpose of crypto is to perpetuate existing inequalities or to stop them.

He questioned whether the goal of cryptocurrency was to conform to the institutions responsible for economic disparity or to break free from their control. To emphasize his point, he noted that increasing centralization in crypto mirrors the corrupt financial system it seeks to challenge, encompassing centralized infrastructure, centralized exchanges, and centralized stablecoins. Eventually, there will be wallet-wide KYC and CBDC integrations. 

During a podcast with Bankless, Circle CEO Jeremy Allaire indirectly acknowledged that Circle's USDC ultimately aims to evolve into a central bank digital currency (CBDC). As you may already know, CBDCs will give governments and central banks complete authority over individual saving and spending habits. In fact, some argue that stablecoin issuers already wield such power.

The end result of this shift towards centralization will be identical to the permission systems and de-platforming present in the financial sector today. One needs to look no further than the COVID-19 protests in Canada for proof of this. Protesters and their supporters found their bank accounts frozen. Charles emphasized that cryptocurrency will become inconsequential if it integrates with trad-fi and that they will do everything in their power to ensure that it does, whether by influencing regulations or using other means.

Finally, Charles explained that Satoshi Nakamoto's motivation for creating Bitcoin was a response to the extraordinary measures taken during the 2008 financial crisis and the concerning precedents they established. Satoshi believed that cryptocurrency could offer a unique alternative, but first, it's essential to recognize how it's still mirroring the same patterns as traditional finance. Unfortunately, Charles did not elaborate on how cryptocurrency could diverge from these patterns, whether through algorithmic stablecoins or other means, to avoid falling under the control of traditional financial systems.

Why BTC Could Be Unscathed

Thankfully, the task is relatively simple, although implementing it will be challenging and involve tradeoffs, as Charles pointed out. Your viewpoint will ultimately determine the approach. To elaborate, let's revisit the premise of Charles's video, which suggests that ‘legacy’ or trad-fi is ‘eating’ or integrating cryptocurrency rather than vice versa. Some believe that incorporating crypto, to some extent, is crucial for promoting awareness, acceptance, and progress in the field.

The current state of crypto privacy regulations is a prime illustration of this issue. Globally, regulations surrounding cryptocurrency are heavily leaned against privacy, with the supposed reasoning being that it creates an environment conducive to illicit financial activities. However, the true motivation behind this stance is that powerful financial institutions desire total visibility into all transactions, allowing them to maintain control over the economy and suppress any potential competition.

The main point is that these influential financial organizations' primary desire for privacy comes from them. This is evident in Blackrock's and other companies offering Bitcoin ETFs' decision to keep the wallets containing the BTC supporting their ETFs undisclosed. In contrast, Bitwise chose to reveal this information preemptively rather than waiting for blockchain analysts to uncover it. 

Consider the possibility that stablecoin payments will become widespread globally, thanks to the lobbying efforts of stablecoin issuers like Circle. It won't take long for individuals to realize that their stablecoin transactions and balances are transparent to everyone, which may raise concerns among trad-fi elites. Moreover, with central banks permitted to hold cryptocurrencies on their balance sheets starting from January 2025, there will likely be growing pressure on regulators to enhance privacy in the crypto space.

The rise in crypto privacy use will lead to the creation of additional privacy solutions. Cryptocurrency operates on universal principles, applying the same rules to all blockchain users. As long as this remains true, influential individuals and organizations will likely advocate for crypto values as they align with their self-interests.

If you are still in the process of being convinced, consider that various central banks globally are in the stages of creating their individual digital currencies. Given their ease of seizure or freezing, will these central banks rely on each other's digital currencies? The answer is no. Consequently, there'll be a significant need for a reliable, mutually accepted digital currency, especially as the world becomes increasingly geopolitically divided.

Coinbureau believes that Bitcoin's BTC is well-suited to serve this purpose and is currently used for trading by certain countries. Moreover, there are reports of countries engaging in Bitcoin mining activities. This could lead to a situation where nations using BTC for trade may compete in mining to maintain the neutrality of the Bitcoin blockchain. Fidelity, a different asset manager, has made a similar prediction.

This relates to Charles' assertions regarding asset managers' influence over Bitcoin through controlling its value. Recognizing that BTC's main advantage is its status as a trustworthy and impartial digital currency beyond anyone's control, it becomes clear that attempting to control Bitcoin would have negative consequences. To clarify, if Blackrock and other asset managers were to gain control of Bitcoin, its fundamental appeal would cease to exist.

The potential outcome of this situation is substantial funds being redirected to alternative assets, such as gold and other cryptocurrencies, which are beyond the control of asset managers. Notably, these outflows could potentially include investments in the proof-of-work BTC fork. It's important to remember that Blackrock's significant wealth and influence are largely predicated on the dominance of the US and its currency.

As explained in this article, the emergence of a new commodity cycle could potentially elevate the influence of the BRICS nations. Consider a scenario where one of these countries introduces a Bitcoin exchange-traded fund (ETF) that tracks the price of the proof-of-work version of Bitcoin derived from Blackrock's proof-of-stake fork. If this were to happen, it could attract tens of billions of dollars in investments.


Image: Markethive.com

How Crypto Strikes Back

This scenario is conjecture right now, and it is essential to take a broader view. This analysis considers long-term aspects and does not encompass the entire cryptocurrency market. In the shorter term, there is a possibility of integration between the rest of the crypto market and trad-fi in a manner that may present challenges. Small Blockers actually predicted this during the block size wars

Notably, trad-fi investors attempted to take control of Bitcoin by increasing its block size. However, they were unsuccessful in their efforts and shifted their focus to other cryptocurrencies, such as Ethereum. Since then, events have unfolded as predicted by proponents of Small Blockers. Essentially, if crypto aims to rival trad-fi in aspects like speed and cost, it will ultimately result in greater centralization, as it becomes a race to the bottom.

In the past ten years, we have witnessed a trend where each new generation of cryptocurrencies has become increasingly centralized. This has made them vulnerable to regulatory capture. As with Blackrock potentially controlling Bitcoin, centralized cryptos becoming subject to trad-fi regulations will essentially make them the same as existing traditional financial solutions, leading to decreased user adoption, with no one using them. Recognizing this risk, investors in these cryptocurrency projects are now shifting their focus toward achieving maximum decentralization.

Decentralization goes beyond just the quantity of nodes and validators. It encompasses the level of developer involvement in the blockchain, the dispersal of the coin or token, particularly in proof-of-stake blockchains, and even the infrastructure utilized by miners and validators, as detailed in this article.

The decentralized nature of cryptocurrency comes with inherent trade-offs, such as slower transaction speeds and higher costs. This brings us back to the root problem: that most crypto companies are attempting to compete with traditional finance in terms of cost and speed.  However, this has created a problematic trend towards centralization, which risks undermining the fundamental principles of decentralization that define cryptocurrency. If left unchecked, this race to the bottom could result in the most widely adopted cryptocurrency being managed by a single entity, such as the Federal Reserve. This outcome would be at odds with the vision of crypto enthusiasts, who seek to maintain the decentralized nature of cryptocurrency. So, what steps can be taken to address this issue?

As opined by Coinbureau, the solution is to let the crypto industry learn the importance of decentralization the hard way. As with most things in modern society, the only way you'll get change is with some kind of shock. In this case, it could be Circle deciding which Solana fork we could see in the future. It could be Tether freezing everyone's USDT holdings until they complete KYC. It could be Coinbase banning crypto transfers to and from personal wallets like many regulators want to do. It could be Blackrock’s spot Ethereum ETF taking control of Ethereum with all the ETH it will inevitably hold.

The average investor and user will likely realize the significance of decentralization in the crypto space only when confronted with situations that highlight its importance. As previously mentioned, this realization will also dawn on influential individuals and organizations. Subsequently, new cryptocurrencies that prioritize decentralization will emerge, hopefully without the need for a catalyzing event.

The cryptocurrency sector is anticipating potential threats and adapting accordingly. Early indicators of this trend include the emergence of decentralized privacy protocols and venture capitalists' financial support for algorithmic stablecoins. Initially, this may come as a surprise. Still, upon closer examination, it aligns with the motivations of major players like BlackRock, Coinbase, and Circle, who are ultimately driven by the desire to generate profits, just like many others in the cryptocurrency space. By investing in innovation, they will likely yield financial gains, which explains their support for pro-crypto regulations.

It's interesting to note that the institutions that have been perceived as obstacles to the growth of cryptocurrency are actually the ones that stand to benefit the most from its innovation. Governments, megabanks, and central banks are feeling the pressure of competition from crypto, and they are the ones hindering the progress of cryptocurrencies and working against it to maintain their power and control. It may seem far-fetched, but major players like Blackrock & Co. could be aligned with the interests of cryptocurrency enthusiasts in this battle despite their questionable reputation and difficulty in trusting them. Consider the potential profitability of displacing governments, megabanks, and central banks – it's food for thought.

 

 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech.  I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

 

Tim Moseley

Bitcoin Slumps Below 67000 Amidst Crypto Sell-Off But Solana Bucks The Trend

‪Bitcoin Slumps Below $67,000 Amidst Crypto Sell-Off, But Solana Bucks The Trend‬

By Brenda Ngari – March 15, 2024

In the early hours of Friday morning, a sharp correction wiped billions of dollars from the total crypto market cap, with Bitcoin (BTC) tumbling below $67,000 per coin.

At publication time, nearly all of the top 20 coins by market value had registered 24-hour losses. In a remarkable exception to the rule, Solana (SOL) was up more than 4% during the same time frame.

Why Is The Crypto Market In Red?

Bitcoin has been on a parabolic tear thanks to the huge success of the newly launched spot BTC exchange-traded funds (ETFs). But then, on Thursday, the U.S. Producer Price Index (PPI) numbers came in above expectations, highlighting the persistent nature of high inflation.

Traders interpreted this data as an indicator that the Federal Reserve will not slash interest rates in May — triggering a sell-off of crypto assets and stocks. In particular, Bitcoin shed over 8% of its value in the space of hours, tumbling to as low as $66,858.

The benchmark crypto has since slightly recovered and is trading hands for $67,418 at press time. But it’s considerably below the $73,737 record high it reached yesterday, CoinGecko data shows.

Another thing denting Bitcoin’s price? Roughly $400 million worth of BTC was moved by Grayscale to its custodian, Coinbase, and Arkham Intelligence data was revealed today. The digital asset manager started moving its BTC to Coinbase for selling after it transformed its flagship GBTC fund to a spot BTC ETF. In January, Grayscale was offloading massive amounts in crypto assets, at one point shifting over $2.1 billion in just days to Coinbase. This caused significant bearish pressure on the price of Bitcoin.

SOL: A Beacon Of Green

Major altcoins Ethereum (ETH), Ripple’s XRP, Cardano (ADA), and Dogecoin (DOGE) also lost 8%-13.4% in the last 24 hours.

However, Solana’s native token SOL showed relative strength amid the sudden crypto market retreat, posting its highest price in 26 months before the slump. Nevertheless, SOL was up 4.8% on the day, making it one of the best-performing assets.

The crypto was recently trading for $173.06, still some 32.6% lower than its 2021 November all-time high. But traders expect a continued upsurge for SOL, suggesting a $250 target price is achievable.

SOL’s surge can be attributed to retail demand for trading Solana-based meme coins such as dogwifhat (WIF), a token that recently saw a meteoric rally.

DISCLAIMER: None Of The Information You Read On ZyCrypto Should Be Regarded As Investment Advice. Cryptocurrencies Are Highly Volatile, Conduct Your Own Research Before Making Any Investment Decisions.

The original article written by Brenda Ngari and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Get secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

Embark on a Journey to Financial Freedom Together

Embark on a Journey to Financial Freedom Together

Embark on a Journey to Financial Freedom Together

Embark on a Journey to Financial Freedom Together 🚀

I hope this message finds you well and filled with the spirit of endless possibilities. Today, I want to share a story, a narrative that echoes the heartbeat of our shared journey toward unlocking potential and achieving financial freedom.

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Not too long ago, I found myself standing at the crossroads of convention and aspiration. It was a moment of reflection, a turning point that led me to a path less traveled — a path that embraced the idea of not just personal success but shared prosperity.

IN THIS JOURNEY

In this journey, I stumbled upon a community that resonated with my vision — a collective of individuals bound by a common purpose. We were united by the belief that financial freedom is not a solitary achievement but a collaborative venture, where each success story contributes to the greater narrative of our shared journey.

Helping others unlock their potential became more than a mantra; it became a guiding principle. It wasn’t just about personal gain; it was about empowering others to realize their capabilities, to dream beyond the confines of circumstance, and to embark on their unique paths to financial liberation.

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What unfolded was a mosaic of stories — stories of resilience, determination, and the remarkable ability of ordinary individuals to achieve extraordinary feats. It wasn’t just about the destination; it was about the transformative journey that unfolded as we supported one another.

EMBARK ON A JOURNEY TO FINANCIAL FREEDOM TOGETHER

As I write this, I extend an invitation for you to join our community at Markethive Here, we don’t just share strategies for financial success; we forge connections, build bridges of opportunity, and celebrate each other’s victories. It’s a space where your potential is not just recognized but actively nurtured.

Whether you’re seeking an additional stream of income, exploring entrepreneurship, or aiming to break free from the constraints of traditional employment, our community is here to support you. Together, we can unlock doors to financial freedom, not just for ourselves but for those around us.

Are you ready to script your success story in the company of kindred spirits? Join us at Markethive and let’s embark on this journey together.

To unlocking our potential and achieving financial freedom,

Resource https://rtateblogspot.com/

Tim Moseley

MicroStrategy To Raise Another 500 Million Via Debt Offering To Snap Up More Bitcoin

MicroStrategy To Raise Another $500 Million Via Debt Offering To Snap Up More Bitcoin

By Brenda Ngari – March 14, 2024

MicroStrategy, now touting itself as a Bitcoin Development Company, is not slowing down even after acquiring more Bitcoin than every spot BTC exchange-traded fund (ETF) in the United States. The Michael Saylor-led company is launching another private offering of convertible notes to snatch up more BTC.

$500 Million Debt Sale For More Bitcoin

Prominent technology firm MicroStrategy is planning to sell an additional $500 million of its debt to expand its Bitcoin stockpile.

The company announced its latest fundraiser on Wednesday, which will again come in the form of a private senior convertible notes offering, due on March 15, 2031, in order to buy more BTC.

Just days ago, MicroStrategy completed an $800 debt raise, which had been increased from an initially planned $600 million, with the proceeds of the sale plus excess cash used to purchase 12,000 more BTC for nearly $822 million.

After that purchase, the firm’s cache stands at 205,000 Bitcoins (worth over $15 billion) — making it the largest corporate holder of the preeminent cryptocurrency. Saylor’s massive Bitcoin bet has borne fruits, with nearly $8 billion in unrealized profit on its investment.

MicroStrategy is now just 5,000 Bitcoins, shy of owning 1% of the top crypto’s maximum supply. Assuming Bitcoin continues hovering above $70K, the firm could purchase roughly 6,900 BTC with the proceeds of the latest debt offering.

If six-figure Bitcoin forecasts come true and the flagship crypto reaches $100,000 by mid-2025, MicroStrategy’s unrealized profit on its holdings will exceed $13.4 billion, or a 197% return on investment in the space of five years.

Saylor recently said investors should treat Bitcoin less like a currency and more like a “billion-dollar property in cyberspace” that has the potential to preserve capital for hundreds of years.

Notably, MicroStrategy is not the only crypto firm seeking to borrow money for its business after a parabolic Bitcoin bull run. Coinbase, America’s largest crypto exchange, on March 12 announced it would sell $1 billion worth of senior notes, maturing in April 2030, to qualified institutional investors. The proceeds will be used to repay existing debt and general corporate purposes.

DISCLAIMER: None Of The Information You Read On ZyCrypto Should Be Regarded As Investment Advice. Cryptocurrencies Are Highly Volatile, Conduct Your Own Research Before Making Any Investment Decisions.

The original article written by Brenda Ngari and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

The Artist that came out of the Winter