Category Archives: Bitcoin

Over the past few months, the likelihood of a recession in the United States economy has increased, coinciding with the Federal Reserves efforts to address the challenge of containing inflation.

Amid mounting concerns, Bloombergs senior commodity strategist, Mike McGlone, has asserted that all indicators suggest an inevitable recession is on the horizon.

According to McGlone, the economy is tilting towards a recession, pointing to factors such as the Federal Reserves tightening policies, underscored by the interest rate hikes, he said during an interview with Blockworks Macro on May 17.

We are tilting down towards a severe recession that hasnt even started, and all the indications are right now. <> Theres nothing I see on the radar up close that what can stop this downward trajectory at the moment, he said.

He pointed out that some indicators include potential earnings contraction, stagnant market performance, declining natural gas and copper prices, and historically low unemployment rates.

At the same time, despite expectations of a turnaround once the Federal Reserve implements monetary easing in response to its tight policies, the strategist predicts that such a reversal is unlikely based on historical patterns. Indeed, he projected a challenging future for most investment products, such as cryptocurrencies and equities.

Moreover, McGlone anticipates a challenging phase for altcoins, foreseeing a substantial correction as the stock market undergoes a downward trajectory.

The strategist also offered insight into Bitcoin (BTC), suggesting it is poised to establish a new bear market bottom amid this period of market turbulence. Interestingly, he anticipates a market downturn that will likely wipe out most cryptocurrencies.

My base case is [the S&P 500 index] is going to 3,000, Bitcoins going to go down, I dont know how far. It might make a new low. <> Cryptos will go down real hard. Were going to purge some of these 24,000 cryptos. Get rid of some. Theyre just silly. But Bitcoin, Ethereum will come out ahead, he added.

McGlone asserts that despite a stock market crash, Bitcoins performance is unlikely to surpass that of other assets.

If we dont go down the stock market, I dont fully expect Bitcoin to outperform in that case. So theres kind of a win-win, he said.

In the meantime, Bitcoin continues to trade below $27,000 after failing to build momentum above $30,000. By press time, the maiden cryptocurrency was trading at $26,894.

Disclaimer:The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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'Severe recession' unavoidable, finance expert warns, shares ... - Finbold - Finance in Bold

Software developer Jameson Lopp believes improving usability and the user experience of Bitcoin (BTC) self-custody solutions and making more avenues to acquire BTC will be key in the further adoption of the preeminent cryptocurrency.

The co-founder of Casahodl, whos aprominent figure in the Bitcoin and cryptocurrency space, spoke of the challenges in building self-custody solutions in an exclusive interview with Cointelegraph journalist Joseph Hall ahead of Miami Bitcoin Week.

Related: The Bitcoin transition: How hodlers can become changemakers and drive adoption

Lopp has a wealth of experience as a developer building a range of services and products in the cryptocurrency space but has largely been focused on the self-custody of digital assets in recent years. Casahodl offers a range of BTC self-custody solutions and is set to provide Ethereum support in 2023:

Lopp speculated that users typically buy an entry-level amount of Bitcoin on an exchange and leave their holdings in the respective wallet. He questioned whether some users are even aware that they can actually manage their own BTC holdings in a self-custodial wallet:

Nevertheless, Lopp added that cryptocurrency custodian service providers like exchanges offer a level of convenience and usability through web applications that is more user-friendly to industry newcomers.There is a relatively low barrier to entry, with the only friction point being Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements that many web users are becoming accustomed to.

Lopp added that the industry needs to create more on-ramps for people to acquire Bitcoin and drive economic activity with the cryptocurrency.He used the decentralized social media platform Nostr as an example of an ecosystem that has integrated the Bitcoin layer-2 Lightning Network protocol as a means to drive the use of BTC:

In countries like the United Kingdom, Bitcoin proponents and a range of industry leaders established a policy groupto foster education, investment, business and job creation for the ecosystem in April 2023.

Meanwhile, layer-2 infrastructure providers like Lightning have seen organic growth over the last year, with a steady increase in the amount of BTC locked up in Lightning channels.

Magazine: Ordinals turned Bitcoin into a worse version of Ethereum: Can we fix it?

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Bitcoin self-custody advocate explains why on-ramps are key to adoption - Cointelegraph

L.L. Bean has just added a third shift at its factory in Brunswick, Maine, in an attempt to keep up with demand for its iconic boot.

Orders have quadrupled in the past few years as the boots have become more popular among a younger, more urban crowd.

The company says it saw the trend coming and tried to prepare, but orders outpaced projections. They expect to sell 450,000 pairs of boots in 2014.

People hoping to have the boots in time for Christmas are likely going to be disappointed. The bootsare back ordered through February and even March.

"I've been told it's a good problem to have but I"m disappointed that customers not gettingwhat they want as quickly as they want," said Senior Manufacturing Manager Royce Haines.

Customers like, Mary Clifford, tried to order boots on line, but they were back ordered until January.

"I was very surprised this is what they are known for and at Christmas time you can't get them when you need them," said Clifford.

People who do have boots are trying to capitalize on the shortage and are selling them on Ebay at a much higher cost.

L.L. Bean says it has hired dozens of new boot makers, but it takes up to six months to train someone to make a boot.

The company has also spent a million dollars on new equipment to try and keep pace with demand.

Some customers are having luck at the retail stores. They have a separate inventory, and while sizes are limited, those stores have boots on the shelves.

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Litecoin, XRP and Other Altcoins Rise Wednesday as Blue Chip' Bitcoin Hits a Lull - NBC Southern California

Cryptocurrencies, particularly Bitcoin, have gained significant traction in recent years as a decentralized form of digital currency that offers potential for financial freedom and innovation. With growing mainstream acceptance, it becomes crucial for cryptocurrency enthusiasts to explore the top Bitcoin-friendly countries where the legal status of Bitcoin is favorable and opportunities abound. This article will delve into the legal landscape tobuy Bitcoin with a debit cardin five countries that have emerged as havens for cryptocurrency enthusiasts: The United States, Japan, Switzerland, Malta and Singapore.

Country 1: United States

As the world's largest economy and a global financial hub, the United States has played a significant role in the adoption of Bitcoin. In the U.S., the legal status of Bitcoin is determined at the federal level, and it is recognized as property by the Internal Revenue Service (IRS). This means that Bitcoin transactions are subject to capital gains tax, and businesses that accept Bitcoin as payment are required to report it as income.

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However, despite the regulatory framework, the U.S. has witnessed a growing adoption of Bitcoin by businesses and consumers. Many major companies accept Bitcoin as a form of payment. Moreover, several states, such as Wyoming and New York, have enacted favorable regulations to attract Bitcoin-related businesses, making them popular destinations for cryptocurrency enthusiasts.

Country 2: Japan

Japan has a unique history with Bitcoin, having experienced a major cryptocurrency exchange hack in 2014 that led to regulatory reforms. Since then, Japan has become one of the most Bitcoin-friendly countries in the world. In April 2017, Japan recognized Bitcoin as a legal payment method, providing a regulatory framework for cryptocurrency exchanges to operate.

Japan's Financial Services Agency (FSA) has established a licensing system for cryptocurrency exchanges, ensuring compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations. This has helped create a robust and regulated cryptocurrency ecosystem in Japan, with several major exchanges operating in the country. Additionally, Japan has witnessed the growing acceptance of Bitcoin among consumers, with many retailers and businesses accepting Bitcoin as payment.

Country 3: Switzerland

Switzerland has gained a reputation as a global hub for blockchain and cryptocurrency businesses thanks to its progressive approach to regulation. The Swiss Financial Market Supervisory Authority (FINMA) classifies cryptocurrencies as assets, and their regulation focuses on anti-money laundering (AML) and securities laws.

Switzerland has also implemented a favorable tax treatment for cryptocurrencies, making it attractive for Bitcoin investors. Bitcoin transactions in Switzerland are exempt from value-added tax (VAT), and capital gains tax is only applicable if Bitcoin is held as a business asset. This has encouraged the growth of a vibrant ecosystem of Bitcoin and blockchain companies in Switzerland, with the city of Zug, also known as "Crypto Valley," becoming a hub for blockchain innovation.

Country 4: Malta

Malta has emerged as a pro-cryptocurrency destination, aiming to become a global hub for blockchain and cryptocurrency businesses. Malta has enacted a comprehensive regulatory framework known as the Virtual Financial Assets (VFA) Act, which provides a regulatory framework for cryptocurrency exchanges, wallet providers and initial coin offerings (ICOs).

The VFA Act establishes a clear legal framework for cryptocurrencies, promoting transparency, investor protection and business innovation. Malta's favorable regulatory environment, along with its efforts to attract cryptocurrency businesses through tax incentives and grants, has led to the establishment of a vibrant cryptocurrency ecosystem in the country. Many major cryptocurrency exchanges have set up operations in Malta.

Country 5: Singapore

Singapore has emerged as a leading financial and technological hub in Asia, and it has also embraced Bitcoin and cryptocurrencies. In Singapore, the regulatory approach towards cryptocurrencies is pro-business and innovation friendly. The Monetary Authority of Singapore (MAS) has implemented a robust licensing regime for cryptocurrency exchanges and wallet providers, known as the Payment Services Act (PSA).

Under the PSA, cryptocurrency exchanges and wallet providers are required to obtain a license to operate in Singapore, ensuring compliance with AML and KYC regulations. Singapore has also implemented a Goods and Services Tax (GST) exemption for cryptocurrencies, making it more attractive for businesses and consumers to use Bitcoin for transactions.

Singapore has witnessed growing adoption of Bitcoin and other cryptocurrencies, with many businesses accepting Bitcoin as payment. The country has also seen the emergence of blockchain and cryptocurrency start-ups, supported by government initiatives to promote innovation in the fintech sector.

Conclusion

As the popularity and acceptance of Bitcoin continue to grow, it becomes crucial for cryptocurrency enthusiasts to be aware of the legal landscape in different countries. Whether it's the business-friendly environment of the U.S., the progressive regulations of Japan, the blockchain innovation in Switzerland, the comprehensive framework in Malta or the fintech hub of Singapore, these countries provide attractive options for cryptocurrency enthusiasts to explore and thrive in the world of Bitcoin.

If you're a cryptocurrency enthusiast looking for Bitcoin-friendly countries to explore, these five countries should be on your radar. From regulatory frameworks to tax treatment to business opportunities, these countries offer favorable environments for Bitcoin adoption and innovation.

Lee Enterprises newsroom and editorial were not involved in the creation of this content.

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Exploring the top Bitcoin-friendly countries for cryptocurrency ... - Missoulian

Even with its recent pullback from the $30,000 price level, Bitcoin remains one of the top-performing cryptos of 2023. It is up 65% this year, and it's hard to find any large market-cap coins that can top this.

But savvy investors know it's best not to put all your eggs into one basket. If you are looking to diversify your crypto portfolio, here are three types of digital coins that could outperform Bitcoin this year.

While Ethereum (CRYPTO: ETH) continues to be the dominant Layer 1 blockchain in the crypto world, there are plenty of up-and-comers that hope to dethrone it. Three rivals that stand out are Solana, Aptos, and Fantom. Both Solana and Aptos are up more than 100% this year, and Fantom is not too far behind, at 93%.

Image source: Getty Images.

Judging from their performance, investors are not entirely convinced that Ethereum is going to retain its dominant role in so many key blockchain sectors, ranging from non-fungible tokens (NFTs) to decentralized finance (DeFi). While The Merge helped to improve the speed, efficiency, and scalability of the core Ethereum blockchain, these blockchain rivals are still much faster and cheaper. That has huge implications in areas such as DeFi, where users are looking for near-zero fees and near-instantaneous settlement of transactions.

Of these Ethereum rivals, my personal pick is Solana, which has been out-innovating Ethereum of late. For example, Solana recently launched the first-ever mobile phone for a major blockchain network (the Saga) and has been exploring new initiatives to leverage all the hype and excitement around artificial intelligence, including a new plug-in for ChatGPT. For Solana to outperform Bitcoin, it will need to show that mobile crypto and crypto AI are sustainable, long-term growth catalysts.

If you are looking for a less risky way to outperform Bitcoin, then blockchain scaling solutions for Ethereum could be the answer. Simply stated, these scaling solutions sit on top of the main blockchain and help Ethereum process transactions faster and cheaper.

For that reason, they are referred to as Layer 2 solutions (i.e., they are the second layer on top of the base Ethereum layer). Each scaling solution uses its own form of proprietary technology to accomplish its goals, so it can sometimes be difficult to differentiate among these different solutions.

If you buy into the idea that these Layer 2 coins are essential to the future success of Ethereum, then there are a few key prospects to target, including Immutable, Optimism, and Polygon. The name that's probably most familiar to investors will be Polygon, which has been making waves recently with new NFT initiatives, including a high-profile partnership with Nike to create an entirely new NFT marketplace for digital sneakers.However, if you are craving maximum upside potential, a better pick might be Immutable, which is up a mind-blowing 99% this year.

Lastly, there are a growing number of cryptos that help people stake on Ethereum. Now that Ethereum has transformed from a proof-of-work blockchain into proof of stake, this is tremendously important. Crypto staking is suddenly big business, and investors are always looking for ways to earn the highest staking rewards possible.

The two big names to watch here are Lido DAO, which is up 95% this year, and Rocket Pool, which is up 157% this year.Both emerged from relative obscurity after The Merge due to the popularity of staking, and both now currently rank in the Top 50 cryptos in terms of market capitalization.

The common theme of all three categories of cryptos detailed above is that they somehow involve Ethereum. The first category, for example, includes all those capable of displacing Ethereum one day as the preeminent Layer 1 blockchain. The second category includes all digital currencies helping Ethereum scale bigger and faster. And the third category includes all cryptos that involve staking on Ethereum.

So if the prospect of picking winners and losers in niche areas of the blockchain space seems too daunting, the classic buy-and-hold crypto is Ethereum, which is up a not-too-shabby 52% this year.

But if you're looking for a little extra turbocharging for your portfolio, then my best picks would be Solana and Polygon. I'm long-term bullish on both of them, and I still regard both as best-in-class for their respective blockchain categories.

Dominic Basulto has positions in Bitcoin, Ethereum, and Polygon. The Motley Fool has positions in and recommends Bitcoin, Ethereum, Immutable X, Lido DAO, Polygon, and Solana. The Motley Fool has a disclosure policy.

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The 3 Types of Cryptos That Could Outperform Bitcoin This Year - The Motley Fool

Bitcoin is facing a number of headwinds including low liquidity which is contributing to volatility. U.S. regulators are also heavily scrutinizing the crypto industry.

Nurphoto | Getty Images

Bitcoin traded at its lowest level since mid-March on Friday as volatility, driven by low liquidity, continued to hit cryptocurrency markets.

Bitcoin ended the day lower by 2.58% at 26,181.46 after briefly hitting a low of 25,833.34 the lowest level since March 17, according to Coin Metrics. The biggest crypto asset by market cap posted a weekly loss of 11.25%, making it its worst week since Nov. 11.

There are a number of issues facing crypto markets right now including low liquidity, a crackdown on the industry from regulators in the U.S. and macroeconomic worries.

Bitcoin is up around 59% this year but prices have remained volatile, with low liquidity exacerbating moves higher and lower.

ClaraMedalie, director of research atKaiko, said there has been a "notable drop in market depth" for bitcoin.

Market depth refers to a market's ability to absorb relatively large buy and sell orders. When market depth is low, then relatively small orders can cause the price of an asset to move up or down in a substantial way.

And the liquidity situation could be set to get worse after Bloomberg reportedthat Jane Street and Jump Crypto, two of the biggest crypto market makers, will take a step back from crypto trading in the U.S. as the country's regulators continue their crackdown on the nascent industry.

"While it is yet unclear the catalyst for today's sharp drop, the volatility is to be expected given the current state of liquidity, especially after larger market maker Jane Street and Jump Crypto revealed they were winding down their crypto exposure," Medalie said.

Liquidity has been a big issue for crypto markets since the closureof Silvergate and Signature Bank two key platforms that people used to buy into the crypto market.

Scrutiny from U.S. regulators on the digital currency industry has ramped up since the collapse of crypto exchange FTX last year.

The U.S. Securities and Exchange Commission warned American crypto exchange Coinbase in March over potential securities law violations. Coinbase CEO Brian Armstrong said the company is preparing for a years-long court battlewith the SEC.

Meanwhile, the Commodity Futures and Trading Commission alleged in March that crypto exchange Binance violated trading rules.

The crypto industry is in a battle with U.S. regulators, accusing the SEC and the U.S. government of not laying out clear rules.

Meanwhile, the bitcoin network itself has faced congestion in recent days with Binance last week forced to temporarily halt bitcoin withdrawals. Bitcoin transaction fees spiked this week and while they are coming down, they still remain at elevated levels. The original bitcoin network was not designed to handle high-volume transactions.

"Bitcoin's attempts to break through $30,000 have come undone amidst a triple whammy of congestion issues on the blockchain, liquidity constraints caused by the scaling back of top market-makers Jane Street and Jump Crypto, and ever-circling regulators," Antoni Trenchev, co-founder at Nexo, told CNBC via email on Friday.

CNBC's Tanaya Macheel and Gina Francolla contributed to this report.

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Bitcoin briefly falls below $26,000, posts worst week since November - CNBC

The process of recovering stolen Bitcoin (BTC) from cryptocurrency scams is difficult and complex. The prevalence of cryptocurrencies has led to an increase in scams and other fraudulent practices that prey on the gullible. Numerous people have suffered significant financial losses as a result of falling for different crypto scams, such as phishing, rug pulls and hacker attacks.

Although cryptocurrencies like Bitcoins decentralized and pseudonymous structure have some benefits, they also create major obstacles for recovering stolen funds. This article will delve into the various methods and potential avenues for recovering stolen Bitcoin and explore the important factors to consider in the process.

As already noted, there are many different types of decentralized finance (DeFi) scams, including phishing scams,rug pullsand social media scams. To trick and take advantage of gullible people, scammers use strategies such as impersonation, bogus websites and misleading investment possibilities.

These frauds have an enormous effect, leading to monetary losses, compromising personal data and diminishing confidence in the cryptocurrency sector. To avoid being a victim of fraud, it is crucial to be aware of these frauds and comprehend their strategies.

Related:DeFi Scams 101: How to avoid the most common cryptocurrency frauds

Due to the intrinsic properties of blockchain transactions, recovering stolen Bitcoin presents a number of difficulties. These transactions pseudonymity and anonymity make it challenging to track the flow of money and pin down the offenders.

Furthermore, jurisdictional issues and the decentralized nature of blockchain technology make the recovery process more challenging. Additionally, recovering the stolen Bitcoin is extremely difficult due to the technical challenges of locating and identifying stolen money.However, the avenues discussed below may help recover stolen BTC.

Victims of Bitcoin theft can report the occurrence to law enforcement organizations that focus on cybercrime. The likelihood of recovery is increased by collaborating closely with specialized task forces and specific cybercrime teams. Coordination across several jurisdictions is made possible by international collaboration and the presence of legislative frameworks, which speed up the recovery process.

Blockchain analysis is essential for retrieving Bitcoin that has been stolen. These methods and technologies aid in tracing the movement of money, locating addresses connected to the fraud, and spotting erroneous transactions.

Collaborating with cybersecurity companies experienced in blockchain investigation and forensic professionals improves the chances of finding and retrieving the stolen BTC. Untangling the complications of stolen Bitcoin and maybe recovering the funds for victims is made possible by combining technological know-how and investigation techniques.

The recovery of stolen Bitcoin depends heavily on exchanges and service providers. Authorities might start the recovery process by freezing the funds linked to the scam and working with reliable exchanges. To stop unauthorized transactions and improve user protection, exchanges must put more stringent security measures in place, including multi-factor authentication and strong Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements.

Cryptocurrency scam victims may pursue compensation through civil litigation. To successfully navigate the legal process, it is crucial to work with legal professionals with experience in situations involving cryptocurrencies. Its crucial to keep in mind that civil action can be difficult and drawn out, and there might be difficulties in identifying and locating the con artists or recovering the stolen funds. Depending on the jurisdiction and applicable legislation, legal remedies may vary.

Related:How to mitigate the security risks associated with crypto payments

Prevention is the key to thwarting cryptocurrency fraud. People and organizations can better defend themselves from falling for such scams by increasing awareness and education about the hazards and typical fraudster tactics. Being a target of cryptocurrency scams can be greatly decreased by putting into use best practices for protecting Bitcoin holdings, such as using hardware wallets, updating software and exercising caution when doing online transactions.

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Can you recover stolen Bitcoin from crypto scams? - Cointelegraph

Hedge fund billionaire Paul Tudor Jones says he has no plans to let go of his Bitcoin (BTC) allocation despite the crypto kings bearish price action over the past year.

In a new CNBC interview, the legendary investor says that Bitcoin is by far his longest bet.

In May 2020, Paul Tudor Jones revealed that he has allocated 1% to 2% of his multi-billion-dollar portfolio to Bitcoin. According to the billionaire, he will continue to hold on to his Bitcoin positions due to BTCs unique value proposition.

Ive never sat on a horse that long From the beginning, Ive always said I want to have a small allocation to [Bitcoin] because its a great tail event. Its the only thing that humans cant adjust the supply in, so Im sticking with it. Im going to always stick with it. Its just a small diversification in my portfolio.

Although Paul Tudor Jones says hes keeping his minor Bitcoin allocation, the billionaire notes that he believes BTCs future growth might be muted due to the current administrations aggressive stance against the crypto industry.

He also points out that the prospects of gold and Bitcoin might suffer as he believes inflation is about to cool off with the rise of AI.

What do I think right now? I liked it last December Im looking at it with gold, and I think theyve done so well recently because of the fact that we have had these risk premiums.

I wonder whether they may not be boring in the future. Bitcoin has a real problem because, in the United States, you have the entire regulatory apparatus against it. So its just yesterdays news.

If inflation is truly done a bit if that story has been played, then you have to wonder, we were buying gold and Bitcoin for the inflation hedges. That game may be over.

Six months ago, before AI, before the possible productivity boost that well get from it, I would have said a completely different story with regard to inflationary future and with regard to all the inflation hedges.

I

Featured Image: Shutterstock/Ezakiell

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Billionaire Paul Tudor Jones Says Hes Sticking With Bitcoin, Calls BTC His Longest Bet - The Daily Hodl

Bitcoin Ordinals, which enabled the possibility of creating NFTs on the worlds biggest cryptocurrency network, is starting to weigh on the network. The increasing cost of transactions is a rising concern, which could inadvertently trigger a further decline in Bitcoin price.

Since their origin of Ordinals and the introduction of the BRC-20 token standard in March of this year, Bitcoin-based meme coins have been rising. The meme coin fever had a grasp on the crypto market, too, for a while, thanks to PEPE and Milady tokens. As it took over Bitcoin too, issues began arising.

Firstly, this triggered the developers, who were not happy because spam transactions were on the rise again after a brief deceleration. Spam transactions usually create unwanted load on the network and in particular to Bitcoin this is caused by the rising hype and demand surrounding BRC-20 tokens.

The development of BRC-20-based meme coins is one of the leading causes of transactions running so high. A developer Ali Sherief even suggested banning spam transactions to protect the user base and minimize congestion on the network.

Bitcoin Ordinals volume

The proposal made sense, too, since the congestion caused due to spam transactions resulted in an increase in transaction fees. The average fee on the network touched $30 per transaction on May 8, the highest in two years and is currently averaging around $6.

Bitcoin average transaction fees

This needs to be controlled since the prospect of Bitcoin becoming a crucial part of the web3 space is drawing more users to Ordinals and BRC-20. The opportunities that come with it could propel Bitcoin into the forefront of web3. In line with the same Ordinals developer, Leonidas stated,

Bitcoin is speedrunning its transition to Web3. Because we have the template of what works from other chains, things are moving so much faster. What Ethereum took 6 years to do, we are going to do in 6 months.

Besides, with over 7 million inscriptions in two months, Bitcoin is growing pretty rapidly. This is visible in the network activity as well, which is at a record high at the moment. Over the last few days, daily transactions reached a high of 628,000 owing to the BRC-20 hype.

Analyst Cryptonary, on Twitter, in regards to the congestion caused by BRC-20 hype and the broader market uncertainty, noted that there is a possibility that Bitcoin price could end up falling further. As forecasted, BTC could bottom out at $24,000 to $25,000, but if the bearishness intensifies, the cryptocurrency could slide to $20,000.

However, FXStreet analyst Akash Girimath presented an upside target of $28,600 if Bitcoin price keeps above $27,000. But even potential corrections would not drag the digital asset below the $25,290 and $23,905 levels.

BTC/USD 1-day chart

Read more about the aforementioned targets here - Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto markets in disarray as BTC flatlines

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Ordinals and BRC-20 tokens might end up driving Bitcoin price to $20,000 - FXStreet

More than 70% of all tokenized Bitcoin, worth over $4.3 billion, have been transferred to Ethereum, according to data from Cryptoflows.

This migration highlights a growing trend of utilizing Bitcoin within Ethereums decentralized finance (DeFi) ecosystem and other interesting areas.

Out of the $5.75 billion worth of BTC exported from Bitcoin, over $1.44 billion found its way to the BNB Smart Chain (BSC) with more BTC tokens flowing to Avalanche, Fantom, and Solana.

Just like Ethereum, BSC, Avalanche, and other ecosystems where tokenized BTC found its way to, support smart contracting. Therein, holders can engage in DeFi, possibly earning income.

Bitcoin doesnt support smart contracts; explaining why some holders are tokenizing their assets. Still, while there appears to be growing demand for DeFi, reading from this outflow of BTC to smart contracting platforms, total value locked (TVL) and decentralized exchange (DEX) volumes have been low and even stagnant.

Data from DefiLlama.com, a DeFi analytics platform, shows that TVL is flat and below $50 billion.

Meanwhile, DEX trading volumes have been relatively low in recent months. This phase of decreased activity could suggest a temporary slowdown in decentralized trading, mirroring the general trend of crypto prices in recent months.

With less than $2 billion of registered DEX trading volumes on May 17, there has been a notable slump in activity over the last months, especially from early 2022.

In November 2021, at the peak of the last bull cycle, DEX trading volumes, on average, stood at over $7 billion.

While users port their BTC to smart contracting platforms, Bitcoin prices remain under pressure partly due to regulatory decisions across the world, mainly in the United States and Europe.

On May 16, the European Union (EU) approved comprehensive crypto regulations which aim to bring transparency and oversight to the crypto industry, addressing concerns such as money laundering and investor protection.

Even in this bearish environment, Geoff Kendrick, the head of digital assets research at Standard Chartered, recently opined that Bitcoin prices could rally by as much as 70%, adding $20,000, should the United States default on its debt.

Related Reading: Bitcoin Loses Grip On $27,000 Handle Amid Debt Ceiling Concerns Details

Although Kendrick said the probability of this default is a low-probability, high-impact event, his prediction has generated significant interest within the crypto and Bitcoin communities as some begin to theorize the potential impact of the worlds superpower defaulting on its debt obligations on the broader financial landscape.

Any such event would result in economic turmoil and an inevitable loss of faith in traditional financial systems that would most likely drive investors towards alternative assets, mostly cryptocurrencies.

Considering Bitcoins stature and setup as a safe haven, the coin, in Kendricks view, could benefit, subsequently posting significant gains.

Feature From Canva, Chart From TradingView

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Billions Of Dollars Tokenized Bitcoin Moved To Ethereum, BSC, And Solana - NewsBTC