Former U.S. President Donald Trump convened with enthusiasts of his non-fungible tokens (NFT) collection on Wednesday and announced to the audience his decision to accept cryptocurrency for campaign contributions. Trump also shared with the group that President Joe Biden “doesn’t even know” what crypto is. Trump Champions Cryptocurrency at NFT Collection Gala At former U.S. […]
Bitcoin News
Goldman Sachs On Bitcoin Halving: ‘It doesn’t Matter If It’s A Buy The Rumor, Sell The News Event’
Analysts at Goldman Sachs, a leading global banking and investment management firm, have offered valuable insights into the anticipated effects of the forthcoming Bitcoin halving, on the price of the cryptocurrency. They emphasize that while the Bitcoin halving is a noteworthy event, other major factors will likely exert greater influence on Bitcoin’s future value.
Bitcoin Halving To Play Lesser Role In BTC’s Outlook
In a note to clients, Goldman Sach’s analysts have cautioned against reading too much into the past Bitcoin halving cycles and their impact on the cryptocurrency. Based on historical trends, the Bitcoin halving cycles tend to have a favorable effect on the value of Bitcoin, often triggering a bull run.
The bank noted that whether the Bitcoin halving scheduled for April 20, becomes a “buy the rumor, sell the news event,” it would hold less significance for the cryptocurrency’s medium-term outlook.
They argue that the future performance of the pioneer cryptocurrency would be more heavily influenced by the supply and demand dynamics within the current market. Additionally, the analysts highlighted that the growing interest and demand for Spot Bitcoin Exchange Traded Funds (ETFs) combined with the self-reflexive nature of the crypto market would be the primary contributing factor to Bitcoin’s price action and future outlook.
Sharing a similar perspective, analysts at CryptoQuant disclosed earlier in April that the 2024 Bitcoin halving was no longer a primary catalyst for Bitcoin’s bullish surge. They highlighted that factors such as increasing demand from large-scale investors and diminishing supply were now the key drivers of Bitcoin’s upward momentum.
Analysts Warn Of Macroeconomic Influence On New Halving Cycle
Analysts at Goldman Sachs have predicted that macroeconomic factors such as inflation could have a significant influence on the upcoming Bitcoin halving event.
“Caution should be taken against extrapolating the past cycles and the impact of halving, given the respective prevailing macro conditions,” Goldman Sachs analysts noted.
Unlike previous halving cycles, the present economic conditions display high inflationary pressures and interest rates, which could cause the 2024 Bitcoin halving cycle to diverge from historical patterns. In other words, the analysts have suggested that for Bitcoin’s historical halving bull runs to occur, macro conditions need to be supportive of investor risk-taking.
Currently, the United States faces challenges with high inflation, while interest rates stand above 5%. These conditions may exert pressure on Bitcoin’s market dynamics. However, despite the prevailing circumstances, many see the digital currency as a formidable inflation hedge and a beacon of hope against escalating inflationary pressures.
Bitcoin Peak Pre-Halving Doesn’t Guarantee Further Gains: Analyst
With the fourth Bitcoin Halving just around the corner, Lady of Crypto, a market analyst and trader, has weighed in on claims concerning this bull cycle.
The crypto analyst shared her insights after analyzing the recent market decline and the impending Bitcoin halving this month. According to the expert, there have been speculations that since BTC broke its all-time high early, the cryptocurrency can continue seeing fresh gains.
Bullish Run Misconception: Bitcoin Can Hit Another ATH?
Lady of Crypto has disregarded the claims that this bull cycle will begin early, saying she believed the community was “lied to and suggesting widespread misinformation” and dismissing the current gains as the signs of a widespread bull run.
As The Halving approaches, the analyst noted that Bitcoin and Altcoins are severely down, but this is not the time to panic. Drawing attention to the 2016 and 2020 pre-halving dips, she highlights that BTC plummeted by 30% and 20% shortly before the event.
Meanwhile, during this pre-halving period, BTC has dropped by over 17%, with altcoins falling by 29%. Although the current decline was severe, Lady of Crypto notes that it is in the range of a typical pre-halving dip and a black swan event.
She compares the COVID meltdown, in which BTC fell by 58% and altcoins by 68%, suggesting that the current decline pales in significance.
Lady of Crypto clarified that Bitcoin Spot Exchange-Traded Funds (ETFs) have been a major factor in BTC breaking its peak early, highlighting that the masses have not yet arrived.
The expert then points to social media presence, revealing that the masses are returning to the crypto market. “YouTube views and subscribers show interest in returning gradually, in line with this time last cycle, as do new Twitter followers,” she added.
This Bull Cycle Is Mirroring Past Halving
Except for BTC’s early all-time high break, Lady of Crypto believes this bull run is unfolding similarly to the last two, albeit with more volatility. However, the volatility suggests this will be the biggest bull market ever.
She advises underexposed investors that the dips are the best chance to purchase BTC during a bull run. Meanwhile, if an investor is overexposed, holding the crypto asset has historically been the best course of action, drawing attention to 2020 and 2021 dips.
Addressing fear and panic among investors, Lady of Crypto cautioned that multiple situations might trigger a panic sell during every bull run. Even though these events appear terrible, like the bull run coming to an end, they are just sideshows.
Jamie Dimon Insists Bitcoin Doesn’t Have Value as JPMorgan Teams up With Blackrock on Spot Bitcoin ETF
JPMorgan Chase CEO Jamie Dimon has insisted that bitcoin doesn’t have value, emphasizing that its use cases are sex trafficking, tax avoidance, money laundering, and terrorism financing. However, JPMorgan has teamed up with Blackrock to help the world’s largest asset manager grow its spot bitcoin exchange-traded fund (ETF) as a lead authorized participant.
Jamie Dimon Insists Bitcoin Has No Value
The CEO of JPMorgan Chase, Jamie Dimon, still believes that bitcoin has no value even as the U.S. Securities and Exchange Commission (SEC) approved 11 spot bitcoin exchange-traded funds (ETFs) on Wednesday. In an interview with Fox Business on Wednesday, Dimon expressed:
I’ve always said that bitcoin doesn’t have value … The actual use cases are sex trafficking, tax avoidance, money laundering, terrorism financing.
The JPMorgan executive’s comment echoed his statement made during a Senate Banking Committee’s hearing in December last year. In response to a question by U.S. Senator Elizabeth Warren (D-MA), Dimon said: I’ve always been deeply opposed to crypto, bitcoin, etc. You pointed out the true use case for it is criminals, drug traffickers, anti-money laundering, tax avoidance.” He also said that he would close down crypto if he were the government.
Meanwhile, JPMorgan has teamed up with Blackrock as a lead authorized participant for the world’s largest asset manager’s spot bitcoin ETF, the Ishares Bitcoin Trust. JPMorgan is also named as an authorized participant for the Invesco Galaxy Bitcoin ETF.
Blackrock’s Ishares Bitcoin Trust was among the 11 spot bitcoin ETFs approved by the SEC on Wednesday. The fund will trade on the Nasdaq stock exchange under the ticker symbol IBIT. The NYSE Arca and the Cboe BZX Exchange will also list and trade some approved spot bitcoin ETFs.
When do you think JPMorgan CEO Jamie Dimon will change his mind and see the value of bitcoin? Let us know in the comments section below.
Solana Co-Founder: The Blockchain Doesn’t Need Layer-2s Like Ethereum
Solana co-founder Anatoly Yakovenko has expressed confidence that their blockchain can handle the growing demand for decentralized applications (dapps) without needing layer-2 solutions like those employed by Ethereum.
Solana Doesn’t Need Layer-2 Solutions
In a post on X, Yakovenko argued that Solana’s design, which utilizes a hybrid consensus mechanism, enables it to scale efficiently without relying on additional layers. The co-founder explained that their goal is to eventually synchronize a global atomic state machine “as fast as the laws of physics allow.” With this stance, Yakovenko appears to be downplaying the role of layer-2 off-chain options like Arbitrum and Base.
“Solana aims to synchronize a global atomic state machine as fast as the laws of physics allow,” Yakovenko said on X. “In this end state, any layer-2, side chain, or zero-knowledge proof Valadium amounts to the same thing. They are external execution environments that cannot ensure atomic composition with the rest of the layer-1 state.”
Despite the position Yakovenko takes, the co-founder said the floor is open for developers to create layer-2 solutions. However, it won’t be necessary because the network can handle such demand without such workarounds.
Ethereum Is Confident Layer-2s Will Be Key To Scaling
This stance contrasts Ethereum’s approach, which increasingly relies on layer-2 solutions to alleviate congestion and high transaction fees. Layer-2 options such as Optimism and Arbitrum have gained popularity for their ability to offload transactions from the mainnet while maintaining compatibility with existing smart contracts.
To quantify their role in scaling Ethereum, L2Beat data shows that the layer-2 solutions have a combined total value locked (TVL) of over billion. The largest of them is Arbitrum, which manages billion of assets when writing on January 5.
Though Yakovenko’s comments reflect Solana’s focus on providing a high-performance, low-cost environment for apps, there have been instances when the network froze, calling its reliability into question. To resolve this, the platform plans to upgrade its client, adding the Firedancer for increased node reliability and performance.
On the other hand, Ethereum seems to be going the layer-2 route. During their developer call, it was decided that Ethereum’s gas limit won’t be increased further from the 30 million gwei level. This, analysts concluded, meant the delay of on-chain scaling ambitions for off-chain methods, specifically off-chain and sidechain rails.
Donald Trump Warns of Stock Market Crash and Great Depression if He Doesn’t Win Presidential Election
Former U.S. President Donald Trump has warned that the U.S. could face a stock market crash worse than that of 1929 and a Great Depression if he doesn’t win the upcoming presidential election. He stressed that the U.S. economy is “terrible” and inflation over the past three years “has totally destroyed the buying power of the consumer.”
Trump’s Market Crash and Depression Warnings
Donald Trump, the 45th President of the United States, has sounded the alarm regarding the U.S. economy if he doesn’t win the presidential election this year.
The former U.S. president posted on his social media platform Truth Social on Friday: “The economy is terrible & inflation, which by some accounts is more than 30% over the last three years, has totally destroyed the buying power of the consumer. The only thing that is keeping the economy ‘alive’ is the fumes of what we accomplished during the Trump administration.”
Trump added: “The stock market is only high because people, & institutions, believe & expect me to win the presidential election of 2024.” He warned:
If I don’t win, it is my prediction that we will have a stock market ‘crash’ worse than that of 1929 — a Great Depression.
Official Bureau of Labor Statistics (BLS) data show a 17% price increase since President Joe Biden took office. However, an alternative inflation measure, applying the same methodology used in the 1980s, estimates this figure to be roughly double, exceeding 30%.
Trump’s path to the 2024 Republican nomination faces roadblocks, with ongoing legal battles. He is presently barred from the primary ballot in Colorado and Maine. The Supreme Court is expected to rule whether states have the authority to prevent from running for president.
This isn’t Trump’s first warning about economic calamity if he loses the 2024 presidential election. In July, he predicted an economic depression. In April, he fretted over a crashing U.S. dollar and our proximity to World War III. He also stressed that the U.S. is losing the currency war against China, noting that the Chinese government is attempting to dethrone the USD as the world’s dominant currency.
Meanwhile, some have predicted that Trump’s presidential victory would send bitcoin soaring. Asset manager Vaneck, for instance, anticipates an all-time high for BTC after Trump wins the election. John Reed Stark, former internet enforcement chief at the U.S. Securities and Exchange Commission (SEC), even suggested that Trump may change his anti-crypto stance dramatically. In addition, the former U.S. president recently launched his third non-fungible token (NFT) collection and reportedly sold millions of dollars in ether (ETH) he received from NFT sales.
What do you think about former U.S. President Donald Trump’s warnings? Let us know in the comments section below.
Billionaire Mark Cuban: SEC Doesn’t Protect Anyone, Current Crypto Regulation Inadequate
Mark Cuban, a Shark Tank star and the billionaire owner of the NBA team Dallas Mavericks, says the U.S. Securities and Exchange Commission (SEC) doesn’t protect anyone, calling the regulator “the Quickbooks of financial regulation.” He stressed that the Howey Test isn’t enough to cover every crypto situation.
Mark Cuban Slams SEC: They Don’t Protect Anyone
Shark Tank star and the owner of the NBA team Dallas Mavericks, Mark Cuban, slammed the U.S. Securities and Exchange Commission (SEC) in a post on social media platform X Thursday.
Regarding whether the current securities law is sufficient to regulate crypto, Cuban said: “All you need to know is that Howey was not enough to cover every situation, so Reves came along.” Reves v. Ernst & Young is a Supreme Court case related to the definition of an “investment contract” under the Securities Act of 1933. The billionaire added:
Now there’s a need for a crypto complement to Howey and Reves.
The owner of the Dallas Mavericks opined: “The SEC is the Quickbooks of financial regulation. They don’t protect anyone but they are really good at bookkeeping.”
Cuban further shared: “It’s also nice to know that if the SEC had taken the same path as Japan and required collateral for crypto loans, all the bankrupt crypto services would still be alive. Just as FTX Japan is.”
Moreover, the Shark Tank investor questioned: “Has the SEC ever moved in to protect investors before something bad has happened?”
Noting that he has “supported and profited from Sharesleuth, finding obviously fraudulent companies and publishing what we have found,” the billionaire stressed: “The SEC has never stepped in to stop the fraud.” Sharesleuth is an investigative reporting website dedicated to uncovering securities fraud and corporate malfeasance.
“And of course, Pink Sheets / OTC now have registration and are still prone to fraud,” Cuban continued, concluding:
And then there are the protections for the millions and billions of shares traded in bankrupt companies that the SEC does nothing to prevent. Because hey, registration obviously is enough to protect investors.
Do you agree with billionaire Mark Cuban about the SEC? Let us know in the comments section below.
US Senator Calls for Light Crypto Regulation That Doesn’t Kill Innovation and Drive Companies Offshore
A U.S. senator says Congress needs to regulate the crypto industry “with a light touch that doesn’t kill innovation in the U.S.” Noting that crypto “has the potential to disrupt much of the traditional banking model,” he stressed that crypto regulation needs to be appropriate to avoid driving companies offshore.
‘We Need to Regulate With a Light Touch’
Senator Bill Hagerty (R-TN), a member of the U.S. Senate Banking and Foreign Relations Committees and former U.S. Ambassador to Japan, addressed JPMorgan CEO Jamie Dimon’s controversial remarks about bitcoin and cryptocurrency during an interview with Bloomberg and in a post on social media platform X on Thursday.
Commenting on Dimon’s statement made during a Senate hearing that he would close down crypto and bitcoin if he were the government, Hagerty wrote:
I can understand why large banks are opposed to cryptocurrencies — the technology has the potential to disrupt much of the traditional banking model. This is not a fight for DC to pick sides on. We need to regulate with a light touch that doesn’t kill innovation in the U.S.
The senator was asked during the Bloomberg interview whether the government should do more to regulate crypto.
While acknowledging the potential threat crypto poses to traditional banking, he emphasized the need for fostering innovation instead of stifling it. “We need to come back and look at this industry,” he stressed, urging Congress to “maintain the innovative aspects of the cryptocurrency industry rather than push it offshore.”
The lawmaker added:
We need to figure out a good way, a proper way, an appropriate way to regulate cryptocurrency here with a light enough touch that will allow us to continue to lead the way with innovation.
Hagerty is among the lawmakers who have criticized the U.S. Securities and Exchange Commission (SEC) and Chair Gary Gensler for taking an enforcement-centric approach to regulating the crypto industry.
Do you agree with Senator Bill Hagerty that the U.S. should regulate crypto with a light touch to allow innovation to flourish? Let us know in the comments section below.
SEC Chair Gensler Slammed for Stating SEC Doesn’t Prosecute Honest Business
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler was slammed by the crypto community for stating: “We are not prosecutors of honest business, nor defenders of crookedness.” Many crypto advocates pushed back against Gensler, arguing that the SEC under his leadership has taken legal action against honest businesses, like Ripple and LBRY, while protecting crooks like former FTX CEO Sam Bankman-Fried (SBF).
Crypto Community Outraged at Gensler’s Remarks
The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, drew heavy criticism from the crypto community on Thursday when he stated on social media platform X that the securities regulator does not prosecute honest businesses and does not defend individuals engaged in fraudulent activities. Gensler wrote:
As Joseph P. Kennedy, the first SEC Chair, once said: ‘We are not prosecutors of honest business, nor defenders of crookedness. We are partners of honest business & prosecutors of dishonesty. We shall not prejudge, but we shall investigate.’
Ripple’s chief legal officer, Stuart Alderoty, responded on X: “Fact check Gensler’s recent remarks. Ripple was sued, but never charged with ‘dishonesty.’ The failed case against it was prejudged, beginning with the ethically compromised Bill Hinman. Gensler has prejudged crypto and has filed suit against others w/o investigation.”
Cryptolaw wrote: “Gary Gensler has prosecuted honest businesses (ask the judges who agreed) and let crooked Sam Bankman-Fried (SBF) carry out a massive fraud right under the SEC’s nose. Resign.”
Replying to Gensler’s claim that the SEC is not a prosecutor of honest businesses, Shapeshift founder Eric Voorhees stressed: “You’ve literally prosecuted my honest businesses … twice now.”
Lawyer Bill Morgan opined:
The gall of the man to use this quote after the SEC on his watch sued a small honest company LBRY that was not accused of any fraud or dishonesty, threatened to bankrupt it and achieved that outcome. Gensler has no moral compass just a political agenda.
Gensler recently explained that he is taking a litigation-heavy strategy to regulate the crypto industry because “the field is so rife with hucksters and fraudsters and non-compliant parties.” This week, the securities regulator announced “another highly productive and impactful year for the SEC’s enforcement efforts relating to crypto asset securities.”
However, many feel that Gensler is working to consolidate his own power. U.S Representative Tom Emmer told the SEC chairman in a congressional hearing: “I’m convinced you are not an impartial regulator. Instead, it’s clear that you are working to consolidate your own power even though it means crushing opportunities for everyday Americans and frankly the financial future of this country.”
What do you think about Gensler stating that the SEC does not prosecute honest business and does not defend crookedness? Let us know in the comments section below.
Robert Kennedy Jr: China Doesn’t Want War With US — They Want to ‘Bury’ Us Economically
U.S. presidential candidate Robert F. Kennedy Jr. (RFK Jr.) has explained that China does not want a war with the U.S. However, he warned that China wants to “bury” the U.S. economically. “I’m not afraid of the United States competing with China head to head and countries around the world. I think that’s good for us. I think we win that competition,” the presidential hopeful stated.
RFK Jr on China and BRICS Competing With US
U.S. presidential candidate Robert F. Kennedy Jr. (RFK Jr.) shared his views on several topics in an interview with CNBC on Wednesday. RFK Jr. is a son of former U.S. Attorney General and Senator Robert F. Kennedy and nephew of former U.S. President John F. Kennedy.
Among the topics RFK Jr. delved into were China’s global influence and the expansion of the BRICS alliance, which currently consists of Brazil, Russia, India, China, and South Africa. The group recently held its annual summit and invited six countries to join as new members. The BRICS economic bloc, often seen as a counterweight to the West, is actively advocating for the use of local currencies in international trade instead of the U.S. dollar.
“Nobody wanted to start BRICS. Nobody wanted an alternative to the U.S. dollar. This happened because of our weaponization of the U.S. dollar and the weaponization of our foreign policy, unilateral weaponization, and the weaponization of our control of the world currency,” Kennedy opined. “We were pounding people’s, you know, their personal assets if the government misbehaves.”
Commenting on the relationship between the U.S. and China, Kennedy detailed:
China does not want a war with the United States. We spent three times on our on our military what they do. We have 800 bases abroad, they have one and a half.
However, the presidential candidate clarified: “They want to compete with us. They want to bury us but they want to do it on an economic playing field. And they need us. You know, they cannot survive without us.”
Regarding the U.S. competing with China economically, Kennedy said: “I’m not afraid of the United States competing with China head to head and countries around the world. I think that’s good for us. I think we win that competition.”
He added:
I’m not somebody who thinks that we should divide the world … I don’t think we should cut off trade with China.
Earlier this month, Kennedy warned about the severe consequences of a nuclear war between the U.S. and Russia. He also said last month that President Joe Biden is “preparing for a ground war with Russia” by signing the executive order to mobilize select reserve forces in order to augment Operation Atlantic Resolve.
Do you agree with presidential candidate Robert F. Kennedy Jr. about China and the BRICS economic bloc? Let us know in the comments section below.