Over the weekend, a prominent personality in the bitcoin and blockchain sector, Bruce Fenton, addressed Jack Dorsey, CEO of Block, Inc., through a post on the social media platform X. Fenton asserts that Dorsey owes an explanation, as Twitter’s senior leadership has faced accusations of orchestrating one of the most significant acts of censorship in […]
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Bitcoin and Crypto Were Not Mentioned Once During the Trump-Biden Debate
Prior to the highly anticipated presidential debate between Donald Trump and Joe Biden, many on social media were speculating whether the topics of Bitcoin and cryptocurrency would come up. However, as the debate concluded, it was clear that neither candidate made any mention of these emerging digital assets or technologies. The absence of any discussion […]
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Sky Mavis Reports Return of $5.7 Million in Digital Assets Stolen During Ronin Attack
Sky Mavis announced that Norwegian authorities have recovered and returned .7 million in digital assets stolen during the Ronin bridge incident. The Web3 game developer stated that an additional million in digital assets is currently frozen. However, the company cannot predict when it will be able to recover and return these funds. FBI Involved […]
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Banks Bust, Bitcoin Booms: Price Skyrockets 40% During US Banking Crisis
Bitcoin, the enigmatic digital currency, is back in the spotlight as the US banking system grapples with mounting stress. While some predict a stratospheric rise to million per coin, fueled by economic woes, others remain skeptical.
Banking On Bitcoin’s Rise?
Bitcoin advocates see it as a beacon of stability in a storm. Unlike traditional assets tied to the health of institutions, Bitcoin boasts a finite supply and decentralized nature. This, they argue, positions it perfectly to benefit from a “flight to safety” scenario, where investors seek refuge from a potentially collapsing banking system.
The recent history seems to support this narrative. In March 2023, the failures of prominent institutions like Silicon Valley Bank coincided with a 40% surge in Bitcoin’s price within a week. Industry figures point to this as evidence of Bitcoin’s role as an “uncorrelated asset class” – a hedge against traditional financial turmoil.
Further bolstering this argument is the latest report by the Federal Deposit Insurance Corporation (FDIC). The report paints a concerning picture, highlighting a worrying trend of unrealized losses on securities held by US banks.
These losses, driven by rising interest rates, have ballooned to over 0 billion. Additionally, the number of banks on the FDIC’s “Problem Bank List” has grown from 52 to 63 in just one quarter, raising fears about the overall health of the sector.
Million-Dollar Dream Or Flight Of Fancy?
While the potential for Bitcoin to gain value seems undeniable, the ambitious price target of million faces strong headwinds. Experts warn that such a dramatic surge might come at the cost of a full-blown economic meltdown, a scenario that wouldn’t necessarily benefit Bitcoin in the long run.
Furthermore, Bitcoin’s historical correlation with other assets is not static. While periods of weak correlation exist, there have also been instances of strong correlation, particularly during broader market downturns. This casts doubt on Bitcoin’s ability to completely decouple itself from a struggling traditional financial system.
Another factor to consider is the recent uptick in the M2 money supply, a metric representing the total money circulating in the economy. Historically, periods of M2 expansion have coincided with Bitcoin price increases. However, the interplay between money supply and Bitcoin in an environment with a potentially shaky banking system remains an open question.
The Road Ahead For Bitcoin
Bitcoin’s future is a bit of a guessing game right now. Banks in the US are having some problems, and that could make Bitcoin more valuable. But if the whole economy goes downhill, even Bitcoin might suffer. So, it all depends on how bad things get with the banks and the economy in general.
Featured image from Pngtree, chart from TradingView
Supermoon, OORT, and Ammocrypt Are Hosting 800+ Founders, Builders, Investors During Consensus
PRESS RELEASE. Supermoon in collaboration with OORT, Ammocrypt, Sunrise Layer and Cointelegraph presents its second iteration of its most well known event this May 31st in Austin, Texas; Mansion on the Moon. This time the Supermoon team is going all out with the Venue, the mansion will feature the most curated spot for over 800+ […]
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Blockchain Space Continues to Evolve Even During Lean Periods, Says Michael Amar
The blockchain and crypto industry has never stood still including during the prolonged lean period known as the crypto winter, asserted Michael Amar, co-founder of the Paris Blockchain Week Summit. Amar believes the resilience shown by market participants during this period demonstrates a new level of maturity in the industry. Engagement Between Startups and Developers […]
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Bank of Russia: Russians Transacted $51 Billion in Crypto During 2023
The Bank of Russia noted that Russian nationals transacted billion (4.78 trillion rubles) in crypto during 2023. According to an annual report issued by the bank, its investigations found that volume flows equivalent to the number, especially in bitcoin and ether, were attributed to Russian nationals in large exchanges. Bank of Russia Reports High […]
Bitcoin News
Bitcoin’s Swift Climb Triggers Soaring Premium in South Korea During Worldwide Rally
On Wednesday, bitcoin’s value ascended past the K threshold, peaking at a 24-hour high of ,389 by 10:45 a.m. (ET). Concurrently, South Korea observed a pronounced premium over the international exchange rate, with local platforms such as Upbit and Bithumb displaying prices that are ,251 higher. In a Worldwide Bitcoin Frenzy, South Korea and 30+ […]
Bitcoin News
Taproot Wizards Reveal Bitcoin’s Onchain Payment Struggles During $15M Sale
Sending bitcoin onchain remains a poor payment experience despite the hype surrounding the leading crypto asset, according to Taproot Wizards founder Udi Wertheimer. In a recent post-mortem of a high-volume sale using bitcoin, Wertheimer detailed several pain points with onchain payments including long confirmation times, lack of payment amount enforcement, high fees, and insufficient Lightning […]
Bitcoin News
Canadian Court Declares Freeze on Crypto Donations During ‘Freedom Convoy’ Protests Unconstitutional
In a judicial rebuke, the Federal Court of Canada ruled that the Trudeau government’s decision to freeze cryptocurrencies during the 2022 “Freedom Convoy” protests was unconstitutional.
Trudeau Government’s Emergency Powers Challenged: Court Rules Crypto Freeze Unlawful
In a ruling on Jan. 23, the Federal Court of Canada deemed the Trudeau government’s use of the Emergencies Act to freeze funds and cryptocurrencies during the ‘Freedom Convoy’ protests in 2022 as unconstitutional. Justice Richard Mosley concluded that invoking the Emergencies Act was not justified as there was no national emergency.
The controversial move by Prime Minister Justin Trudeau’s government in February 2022 aimed to curb financial support for truckers protesting Covid-19 vaccination mandates. It marked the first time the law was used to freeze financial assets, including cryptocurrencies.
The Canadian Civil Liberties Association (CCLA), the Canadian Constitution Foundation, and various groups contested the government’s decision, arguing it was unnecessary and a violation of constitutional rights. The court’s decision validates their stance, asserting that the government could have used other means rather than resorting to the Emergencies Act, a measure deemed an overreach.
Protesters in the ‘Freedom Convoy’ had blocked streets in Ottawa, opposing mandates for truck drivers crossing the Canada-United States border to be vaccinated against Covid-19. The government had labeled the protests as an illegal occupation, necessitating the use of the Emergencies Act.
This ruling has implications for the use of crypto assets in political protests. Digital assets played a part in funding the trucker protests, with estimates of millions received in cryptocurrencies.
In February 2022, Gofundme froze over million in donations for the protests. The fundraising subsequently shifted to Tallycoin, a bitcoin-based crowdfunding platform, where the Honkhonk Hodl group garnered over 22 bitcoin, valued at approximately 5,000 at that time. The Christian crowdfunding site Givesendgo also emerged as a key platform, raising over million, including unknown amounts in crypto. Canadian authorities later froze bank accounts linked to Givesendgo donations.
Following the court’s decision, the CCLA said in a released statement:
The CCLA stood up to the government’s use of the Emergencies Act and challenged the government in court. The Federal Court’s decision sets a clear and critical precedent for every future government.
Finance Minister Chrystia Freeland announced the government’s intention to appeal the ruling.
What do you think will be the repercussions of this ruling? Share your thoughts and opinions about this subject in the comments section below.