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

Gold Price News: Gold Pulls Back From All-Time Highs

Gold Price News: Gold Pulls Back From All-Time Highs
 

Frank Watson

Gold News

Market Analysi

Gold prices pulled back slightly on Tuesday from their recent all-time highs after figures showed US inflation at higher-than-expected levels in February, prompting questions over any interest rate cuts.

Prices eased as low as $2,153 an ounce during the day Tuesday, compared with around $2,182 an ounce in late deals on Monday.


 

KAU price $/g – from Kinesis Exchange

US core inflation figures, which strip out volatile items such as energy and food, were released Tuesday. The figures came in at 0.4% in February compared with January, higher than the market’s expected 0.3%. And on a year-on-year basis, February came in at 3.8%, slightly above market expectations of 3.7%.

Higher than expected inflation suggests greater pressure on the US Fed to maintain higher interest rates for longer, weighing on non-yield-bearing assets like gold.

The US dollar also increased against other major currencies on Tuesday, weighing on dollar-denominated gold prices, while US 10-year Treasury yields also rebounded, adding further to the selling pressure on gold.

The pullback in prices follows all-time highs for gold, which briefly hit $2,195 an ounce on Friday as the markets bet on rate cuts materialising as soon as June, with additional support coming from recent central bank buying and safe-haven flows amid current heightened geopolitical tensions.

Elsewhere, the markets will be looking ahead to Thursday for the release of US producer prices for February as well as monthly retail sales, providing a further update on the state of the US economy.

Time to Buy Gold and Silver

Tim Moseley

Wen 300 SOL Price? On-Chain Data Shows Solana On The Cusp Of Hitting A New All-Time High This Month

Wen $300 SOL Price? On-Chain Data Shows Solana On The Cusp Of Hitting A New All-Time High This Month

By Olivia Brooke – March 13, 2024

Solana is one of the leading altcoins experiencing a major upward correction. Expectations for Solana have mostly been bullish as the year kicked off positively for the asset. More recently, market data has outlined the near-term potential for SOL.

Data from on-chain analytics firm Santiment has depicted a continuous upsurge in SOL's value. With market cap, trading volume, and monthly gains tapping new levels, SOL is on the verge of hitting a new yearly price high.

The bullish rally is poised to be fueled by positive sentiments from market players. Although FOMO has historically tampered with asset prices, this might not be the case for SOL. Collective doubt might help sustain a long-term rally and potentially send SOL to $300.

Solana SPL meme coins might be behind SOL's recent price upswing

The price prediction comes after reports from Bloomberg revealed that Pantera Capital's asset manager is gearing up to buy a whopping $250 million worth of SOL tokens from the FTX estate. It bears mentioning that Pantera Capital currently holds an estimated 10% of the $5.9 billion SOL tokens under the possession of the FTX estate.

As such, the price of SOL might not be swayed by the asset managers' move in the long term. However, other fundamental factors might affect SOL's performance in the future.

Meanwhile, SOL has increased by more than 23% in the last 7 days, bringing monthly gains to 42.82% at report time. SOL, the fifth largest cryptocurrency by market cap, is amongst the best-performing altcoins in the top category.

Factors influencing SOL's price upswing are mostly fundamental. Several celebrity-focused Solana SPL meme coins gained traction on March 6th, with impressive trading volume and performance.

While the Solana community members are still sceptical about these meme coins, some of these assets have functional use cases in the Solana ecosystem. Jupiter (JUP) is amongst the list of these meme coins with associated applications. The meme coin has soared by nearly 30% within the last three days.

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 Olivia Brooke 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

El Salvador’s Bitcoin Investment Has Netted 85 Million In Profits Thanks To BTC Price Record Highs

El Salvador’s Bitcoin Investment Has Netted $85 Million In Profits Thanks To BTC Price Record Highs

By Brenda Ngari – March 12, 2024

Salvadoran President Nayib Bukele’s decision to purchase Bitcoin (BTC), the world’s oldest and largest cryptocurrency, has certainly paid off. BTC’s latest rally to new all-time highs has thrust the Central American nation’s BTC portfolio into the black by $85 million, data indicates.

BTC Profits Hit $85 Million

Bitcoin was first adopted as legal tender in El Salvador in 2021, and since then, the country’s stockpile has gone from crypto winter rags to record riches. Since President Nayib Bukele announced that his government would start buying 1 BTC per day, it has accumulated roughly 2,861 BTC — according to the NayibTracker website — acquired at an average cost of $42,600. At Bitcoin’s new all-time high of $72,710 on March 11, this was worth over $207 million. He spent over $122 million on the cryptocurrency, meaning he’s up over $85 million.

El Salvador’s embrace of the benchmark cryptocurrency has proved contentious both at home and abroad, with the passing of the historic “Bitcoin Law” welcomed by protests, while everyone from university professors to the World Bank and U.S. lawmakers slagging off Bukele’s “careless gamble.”

However, the pro-Bitcoin president, who in February was reelected in a landslide presidential election victory — has been unfazed by the criticism, forging ahead with the tiny Latin American nation’s plans for a Bitcoin City — a tax-free city powered by a volcano and financed by BTC-backed bonds.

Bukele indicated in a March 12 post that El Salvador is accruing even more BTC in the form of revenue from other avenues. This entails revenue from the “freedom visa” passport program, which converts Bitcoin to United States dollars for local businesses, BTC mining, and revenue from government services.

El Salvador announced the visa program in December, offering foreigners a passport and residency if they invest $1 million in Bitcoin or Tether’s USDT. Months before that, in October, the nation launched its first local BTC mining pool in collaboration with Volcano Energy and Luxor Technology.

Venture capitalist Tim Draper recently suggested that El Salvador will be able to fully pay off its IMF debt if Bitcoin hits $100,000 and thereafter become financially independent.

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

Gold Price News: Gold Closes in on 2200 an Ounce Level

Gold Price News: Gold Closes in on $2,200 an Ounce Level

Gold prices extended their recent gains on Friday to cap a particularly bullish week in which prices notched up fresh all-time highs.

Prices rallied as high as $2,195 an ounce on Friday, although prices eased back to trade at around $2,180 an ounce later in the day. That compares with around $2,160 an ounce in late deals on Thursday.

Gold hits all-time high – KAU price $/g – from Kinesis Exchange

US unemployment figures released Friday came in at 3.9%, well above market expectations of 3.7%, and this contributed towards expectations that the US Fed will need to cut interest rates in the coming months – a supportive element for precious metals prices.

This followed US Fed Chair Jerome Powell’s comments on Wednesday and Thursday highlighting that US interest rates have likely peaked and that cuts are on the horizon, albeit that the central bank will need to see greater evidence that inflation levels are moving toward the targeted 2% before adjusting rates.

US non-farm payrolls figures released Friday showed a larger than expected increase in jobs in February. This would normally be expected to put downward pressure on gold prices as a safe-haven asset. However, the gold market shrugged off the latest figures, as bullish momentum continued as the markets bet on a more dovish monetary policy emerging from the US Fed before the summer.

In addition, the US dollar continued to slide against other major currencies through the week, providing a lift for dollar-denominated gold.

Looking ahead, Monday is looking light on significant data releases and the markets will be looking ahead to Tuesday’s US monthly inflation figures for further insight into the future path for monetary policy.

Time to Buy Gold and Silver

Tim Moseley

Global Cryptocurrency Market Valuation Nears 3 Trillion

Global Cryptocurrency Market Valuation Nears $3 Trillion

By Brenda Ngari – March 11, 2024

The cryptocurrency market is recovering, now reflected in its overall market capitalization. As Bitcoin and other altcoins soar in price, the collective growth has been reflected in the market’s total value, which has now surpassed $2.7 trillion.

The year has unravelled bullishly for crypto assets as demand for Bitcoin grows with the adoption of Spot Bitcoin ETFs. In addition, alternative digital assets are also experiencing a bullish rally as price value and trading volume soared to unprecedented levels.

Over the past weeks, the leading cryptocurrencies have also recorded notable increases in market capitalization. As a result, the global crypto market cap has reclaimed levels that were last seen two years ago.

The bullish performance strengthened sentiments among market players who were convinced that the market had fully recovered. It also fuels speculation that 2024 might kickstart a long-term rally for the overall crypto market.

Increased ETF demand amongst factors boosting market cap value

At report time, the global cryptocurrency market is worth $2.72 trillion, a 3.88% increase from its 24-hour high. The newly attained milestone also marks a 140.22% increase in market value over the past year. The global market cap value measures the market value of all cryptocurrencies, and with Bitcoin being the most valued asset, its $1.4 trillion market cap currently represents a Bitcoin dominance of 50.45%.

The increase in ETF demand is fueling the upsurge in collective market cap. Historically, increased demand for ETFs has driven asset market cap value to new levels, and the current market run is no exception.

However, market volatility could affect market value in the long term. Historically, bear trends have triggered a downward trend and resulted in a decline in collective market cap.

At report time, both altcoins and Bitcoin are securing significant gains while clearing off losses from the previous year.

As the week kicks off, Bitcoin is trading at $72,214 while the broader altcoin market makes a recovery. Leading altcoins Ether BNB and SOL are recording an increase in daily gains. Sentiments amongst key players are still largely positive, with some analysts hinting at an extended rally into the coming week.

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

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Tim Moseley

Bitcoin Breaks Past 71000 For First Time Ever Overtaking Silver’s Market Cap

Bitcoin Breaks Past $71,000 For First Time Ever, Overtaking Silver’s Market Cap

By Brenda Ngari – March 11, 2024

Bitcoin has registered a significant milestone, eclipsing the market capitalization of silver as it topped $71,000 for the first time ever.

The world’s largest and oldest crypto has been on a steady uptrend since the landmark approval of the spot BTC exchange-traded funds (ETFs) in the US. BTC jumped past the $70,000 threshold for the first time in history on March 8. The Bitcoin price hit a high above $70K then, followed by a swift correction to the mid-$68,000 zone. Days later, BTC has burst above $71K, logging a fresh all-time high.

Bitcoin Breaches $71,000

Bitcoin was trading for $71,733 at press time, a 2.9% jump over the last 24 hours. According to CoinGecko data, the alpha crypto has gained roughly 10.4% over the past week and 53.1% during the last month.

Following the new record high, Bitcoin has become the eighth-largest asset in the world after its market capitalization surpassed the $1.383 trillion market cap of silver, the second-biggest precious metal in the world.

Bitcoin boasts a market value of $1.409 trillion, trailing behind Microsoft, Apple, Nvidia, Saudi Aramco, Amazon, and Google parent company Alphabet. Gold has long held the top spot with its $14.685 trillion market cap.

The bullish BTC rally comes on the back of a very successful week for spot ETFs. As per data from BitMEX Research, these products witnessed more than $2.2 billion in inflows last week. As of last Friday, BlackRock’s IBIT spot ETF had amassed approximately $13.6 billion in assets under management.

Since their debut, the ETFs have absorbed 4.06% of the current Bitcoin supply, as observed by Dune. At this rate, ETFs are projected to suck up 8.65% of the BTC supply annually.

Another factor boosting the price of Bitcoin is the approaching halving event, in which the amount of BTC given as a reward to Bitcoin miners for processing new blocks on the network will be slashed in half. This April halving will see the reward lowered to 2.125 BTC from 6.25 BTC, subsequently reducing the amount of Bitcoin issued every day by circa 900 BTC, worth roughly $73 million.

Meanwhile, other major cryptos, including ether (ETH), have also seen substantial gains, with the second-largest jumping above the $4,000 milestone. Ether has some bullish news of its own as a catalyst this week. In just two days, the Dencun upgrade will go live. Dencun is expected to dramatically enhance network scalability and reduce transaction fees for Layer 2 blockchains.

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

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