CryptoNews of the Week

Publish date: Wed, 27 Sep 2023, 07:54 AM
CryptoNews of the Week

– Anthony Scaramucci, the founder of SkyBridge Capital, stated at the Messari Mainnet conference in New York that the worst is over in the current bear market for digital assets. "If you own bitcoin, I wouldn't sell it. You've weathered the storm. [...] The next 10-20 years will be extraordinarily bullish," he said.

The investor acknowledged that there are "headwinds" for bitcoin in the current macroeconomic environment, such as high interest rates, scepticism from SEC Chairman Gary Gensler, and negativity surrounding the acceptance of digital assets. However, he is confident that bitcoin offers more potential than gold. In his view, the proliferation of bitcoin ETFs will lead to the widespread adoption of digital assets.

– Mark Yusko, the CEO of consulting firm Morgan Creek Capital, believes that a positive decision on bitcoin ETF applications will trigger an inflow of $300 billion in investments. In such a scenario, the coin's market capitalization and value would see significant growth.

– Several other experts have predicted a decline in bitcoin's value leading up to the April 2024 halving. An analyst going by the pseudonym Rekt Capital compared the current market conditions to the BTC price dynamics in 2020 and speculated that the coin's price would decline within a descending triangle. However, in his opinion, the drop will be significantly less severe, as the coin will depreciate by 27% to $19,082.

Renowned trader Bluntz, who had previously predicted how far bitcoin's value would plunge during the 2018 bear trend, also foresees a continuation of the downward trajectory in the cryptocurrency market. He doubts that the asset's value has reached its bottom, as the descending triangle forming on the chart appears incomplete. For this reason, Bluntz anticipates that bitcoin will decrease in value to around $23,800, thereby completing the third corrective wave.

– Noted analyst Benjamin Cowen also believes that after several weeks of trading within a narrow range, the BTC price could fall to the $23,000 mark. Cowen bases his forecast on historical patterns, which indicate that the flagship cryptocurrency's price usually experiences a significant dip before a halving event. According to Cowen, data from past cycles suggest that BTC and other cryptocurrencies do not perform exceptionally well in the period leading up to such a pivotal event.

– Research firm Fundstrat speculates that, contrary to a bearish outlook, the price of BTC could actually surge more than 500% from its current value due to the halving, potentially reaching a level of $180,000. Meanwhile, financial corporation Standard Chartered estimates that the price of the oldest cryptocurrency could rise to $50,000 this year and to $120,000 by the end of 2024.

Current network activity suggests that investors are likely anticipating a new price surge, as bitcoin reserves on exchanges are approaching a six-year low.

– Over the years, the crypto community has been rife with bold speculations and conspiracy theories about who created bitcoin, how it was created, and why. One theory posits that it was conceived by the Communist Party of China, ostensibly for global domination. Others contend that it was the work of "good Samaritans" who aimed to aid societal progress. Some even believe the trail leads back to the CIA.

Within the bitcoin ecosystem, there is another persistent group that claims Satoshi Nakamoto was an employee of the National Security Agency (NSA). One of the most secretive U.S. intelligence agencies, according to this view, had an active role in creating the first cryptocurrency. Nic Carter, co-founder of research firm Coin Metrics, lends credence to this theory by pointing out that the Secure Hash Algorithm 256 (SHA-256) was created by mathematician Glenn M. Lilly. Lilly developed it under the supervision of the NSA and published the algorithm in 2001. He later served as the head of the NSA's mathematical research department.

Carter refers to his new theory as the "bitcoin lab leak hypothesis." He suggests that the bitcoin blockchain was initially an internal research project by the NSA aimed at collecting adversary information—a new "monetary weapon" for undermining third-country economies.

Matthew Pines, Director of Intelligence at Krebs Stamos, concurs with Carter's opinion. The cryptography analyst believes the creation of the BTC blockchain could be the result of collaboration between NSA cryptography experts and crypto enthusiasts. During the process, a communication breakdown occurred, and the anonymous developer inadvertently leaked proprietary information, thus making the project public property.

It is worth noting that the NSA was one of the first organizations to describe a system similar to bitcoin in a 1996 paper titled "How to Make a Mint: The Cryptography of Anonymous Electronic Cash." The paper proposed a system using open-source cryptography to allow users to make anonymous payments without revealing their identity.

– Dune Analytics is tracking 295 wallets that, according to the U.S. Federal Bureau of Investigation (FBI) and the Office of Foreign Assets Control (OFAC), belong to the North Korean hacking group Lazarus. According to the latest data, these wallets currently hold digital assets amounting to approximately $47 million, including $42.5 million in BTC, $1.9 million in ETH, $1.1 million in BNB, and $640,000 in stablecoins, primarily Binance USD. It's worth noting that this is the lowest estimated value of Lazarus Group's crypto assets.

Meanwhile, Lazarus' wallets continue to show high activity: the last transaction was recorded on September 20. Interestingly, the hackers do not hold reserves in privacy coins like Monero, Dash, or Zcash, which are much more difficult to trace.

– Michael Saylor, the CEO of MicroStrategy, has compared the rate of fiat currency devaluation to inflation dynamics. He demonstrated that individuals could lose their savings if held in traditional currencies, as funds in U.S. dollars would have lost about 99% of their value over the past 100 years.

Saylor believes that bitcoin mitigates these risks due to its inherent characteristics. According to him, the flagship cryptocurrency represents a revolutionary technology with numerous advantages, including a capped supply of 21 million coins. Consequently, BTC is the best way to preserve your reserves, the billionaire concludes.

– The analyst known as CryptoCon notes that currently, bitcoin may be reflecting a pattern reminiscent of the 2015 market cycle, potentially paving the way for a new all-time high. According to his analysis, bitcoin is most likely to reach such a peak in December 2025 and could trade between $90,000 and $130,000.

– The Shanghai Intermediate People's Court has recognized bitcoin as a unique digital currency, despite the existing ban on trading these assets in China. The court granted bitcoin this status for several reasons: 1. It possesses qualities inherent to money, such as being storable, usable as a means of payment, and a measure of value for goods and services; 2. It enjoys global popularity; 3. It is valuable due to its limited supply of coins.

The court's decision does not impact the circulation of bitcoin in China and does not legalize cryptocurrency trading. However, the recognition of BTC as a digital currency lends the coin legitimacy. It is likely that, moving forward, it will be treated as virtual property in legal proceedings.

– Trader DonAlt believes that Ethereum could experience a significant devaluation before reaching the bottom of its cycle. "The worst is yet to come," he writes. "I would say we are, at best, two weeks away from the bottom." According to DonAlt's calculations, the floor for ETH stands at 0.047 BTC or $1,232.

– Cryptocurrencies have come to the aid of Lebanese residents who have been impoverished due to hyperinflation and governmental missteps. The economic crisis in the country erupted in 2019, leading to a 95% collapse of the national currency against the U.S. dollar. Moreover, in March 2023, the inflation rate almost doubled, ranging from 252% to 269%. According to the United Nations, about 78% of the country's population now falls below the poverty line.

As a result, a shadow crypto economy has emerged. Lebanese citizens are using USDT stablecoins as a means of payment and are earning their wages in bitcoin. Bitcoin mining has become not only incredibly popular but also highly profitable. According to CoinGecko data, Lebanon has the lowest cost of mining 1 bitcoin, at just $266. In comparison, due to higher electricity costs in the United States, this figure reaches $46,280.

– Experts have once again turned to artificial intelligence, this time to forecast the price of the flagship cryptocurrency by Halloween (October 31). CoinCodex's AI posits that by the specified date, the price of bitcoin will rise to $29,703.

Interestingly, the crypto market even has a term called "Uptober." The idea is that every October, bitcoin experiences significant price gains. Considering data from 2021, bitcoin was valued around $61,300 on October 31, marking a more than 344% increase compared to 2020. This phenomenon held true even in the past year of 2022, despite the high-profile crash of the FTX exchange. On October 1, 2022, the asset traded at $19,300, but by October 31, it had reached $21,000.

On the flip side, there are currently no concrete reasons for expecting a serious bull run. The key factor exerting downward pressure on the crypto market continues to be the Federal Reserve's tight monetary policy. As of the end of September, the U.S. regulator chose not to raise the refinancing rate but did not rule out such a move in the near future. Moreover, there is a likelihood that the regulator will maintain its course of tight monetary policy into the next year. It's also unclear how the SEC will act concerning applications for spot bitcoin ETFs.

Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

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