Cryptocurrencies like Bitcoin have not reduced financial risks in emerging economies, but instead, have amplified them, according to a study conducted by central banks and published by The Bank for International Settlements (BIS).
The author discusses six themes related to the intersection of artificial intelligence (AI) and various aspects of the modern world, including technology development, accessibility, disruption, AI's impact on inflation, and the potential role of Bitcoin in AI applications. The author also announces the release of their new book, "Broken Money," which explores the past, present, and future of money and its relationship with the global financial system.
Bitcoin price reaches a 2-month low, but crypto analyst Michaël van de Poppe predicts a positive change in the future due to market cycle theories and the upcoming Bitcoin halving in 2024, potentially reaching a price of $50-55K pre-halving.
Central banks are exploring the issuance of digital currencies to promote financial inclusion and provide easier access to money for unbanked populations, with the potential to reduce dependence on cash, increase local currency adoption, and impact the role of international currencies such as the US dollar.
Consumer debt, including auto-loans and credit card balances, is increasing in the United States, but strong government intervention and temporary relief measures have created a cushion of extra cash savings, leading to a positive outcome for Bitcoin (BTC) according to Cointelegraph analyst Marcel Pechman.
Bloomberg Intelligence's senior macro strategist predicts a near-term bearish trend for Bitcoin, citing its failure to exhibit strength in a deflationary environment, but anticipates that it will eventually reach $100,000.
A new whitepaper called "Cointime Economics: A New Framework For Bitcoin On-chain Analysis" introduces a time-based perspective to understand the Bitcoin economy, offering insights into the economic realities and value propositions of the cryptocurrency.
Bitcoin, as the world's first decentralized digital currency, is challenging traditional notions of money by empowering individuals, offering a store of value, and demonstrating a growing network effect. With its scarcity, transparency, and potential for financial inclusion, bitcoin is positioning itself as a transformative force in the digital age.
Concerns arise that the struggling Chinese economy and volatility in the stock market may negatively impact Bitcoin's price and hinder its role as an alternative store of value in the face of a strengthening U.S. dollar.
Bitcoin, the first leading cryptocurrency, has been the top-performing asset over the past decade and offers a hedge against inflation and potential diversification benefits for portfolios.
The founder of BitMEX, Arthur Hayes, argues that the Federal Reserve's rate hikes are fueling economic growth and benefiting the cryptocurrency industry, and believes that AI companies are less reliant on banks and more likely to prosper in the current economic climate. However, he also warns that investing in AI now may not yield immediate returns and that the convergence of AI, crypto, and money printing could result in a significant asset bubble.
Bitcoin (BTC) remains near a key long-term trendline as the U.S. dollar strengthens, with market participants predicting further downside for BTC and altcoins.
The United States Federal Reserve's financial woes and potential implications for cryptocurrency are discussed on the latest episode of "Macro Markets," highlighting challenges posed by inflation and the consequences of loose monetary policies during the pandemic.
Quantitative easing (QE) is a monetary policy tool used by central banks to boost the economy by purchasing financial assets, such as government bonds, which increases the money supply and lowers interest rates; while its impact on cryptocurrencies is indirect, QE can lead to increased demand for cryptocurrencies as alternative stores of value due to devalued fiat currencies and greater liquidity in the market. However, the decentralized nature of cryptocurrencies makes direct application of QE challenging, with supply dynamics, forking and airdrops, stablecoins, and market dynamics having potential implications on the crypto industry. QE also has criticisms and limitations, including inequality escalation, market distortion, potential financial instability, and impairment of financial markets.
The lack of clear crypto regulations in the US has caused significant issues for the industry, leading to collapses and a weakening of America's position as a financial hub, according to Coinbase CEO Brian Armstrong. He emphasizes the need for clear rules that recognize the innovation potential of the technology while protecting consumers. Armstrong also highlights the potential benefits of Bitcoin exchange-traded funds (ETFs) and Coinbase's role as custodian in many ETF applications.
Incoming deputy governor of the Bank of England, Sarah Breeden, stated that while crypto currently poses minimal risk to financial stability, it could present a greater danger in the future, emphasizing the lack of value in unbacked cryptocurrencies and the risks highlighted by recent events such as the collapse of Terra and U.S. banks Silvergate and Signature. She also expressed support for a central bank digital currency and the potential benefits of blockchain technology.
Popular analyst Arthur Hayes argues that traditional economic theories about Bitcoin's relationship with interest rates will fail due to the US government's substantial debt, as inflation may become "sticky" and bond yields may not keep up with GDP growth, leading bondholders to seek higher yielding "risk assets" like Bitcoin.
Bitcoin and other cryptocurrencies experienced fluctuations following the release of U.S. inflation data, signaling a potential impact of higher interest rates on digital currencies.
Bitcoin's vulnerability to contracting global liquidity is highlighted by Bloomberg Intelligence's crypto market analyst Jamie Coutts, who suggests that the cryptocurrency will only turn bullish when global liquidity levels expand, warning that it is unlikely to rise until liquidity reverses and anticipating that institutional investors will only show significant demand for digital assets once liquidity rises.
The Federal Reserve's decision to maintain interest rates and raise its long-term forecast for the Federal Funds Rate surprised many market participants, causing a slight pullback in the stock and cryptocurrency markets while highlighting the need for investors to focus on the actual health and viability of companies and the utility of the crypto ecosystem. Additionally, the article speculates on the impact of the U.S. Securities and Exchange Commission's ruling on Bitcoin spot ETF applications and the potential for cryptocurrency to become a mainstream alternative investment.
Bitcoin could experience significant inflows from China in the coming months due to a weakening Chinese yuan and increasing capital flight, with Chinese investors turning to Bitcoin as a familiar investment in times of economic uncertainty, according to experts. The recent data shows that China's capital outflow reached its highest level since 2015 in August, potentially putting further pressure on the yuan. While Chinese capital controls may limit investment options, cryptocurrency, particularly Bitcoin, is seen as a viable alternative. However, analysts caution that the impact of Chinese capital flight on Bitcoin may not be as significant as it was in 2017 due to changes in regulations and crackdowns on certain practices.
Bitcoin and other cryptocurrencies are experiencing a decline in prices due to a strengthening dollar and risk-aversion, but there is hope for a rebound.
Coinbase, the U.S. cryptocurrency exchange operator, may invest more elsewhere if the U.S. cannot get crypto regulation right, raising questions about whether the U.S. is still the primary hub for crypto innovation and development.
Crypto analyst Nicholas Merten predicts a significant contraction in the total market capitalization of Bitcoin and other digital currencies, with Bitcoin potentially facing a plunge of over 43% and stabilizing between $15,000 and $16,000 as the market potentially finds a foothold around the $650 billion cap.
Bitcoin and other cryptocurrencies are experiencing a slight increase, but the surging bond yields are causing pressure on digital assets as investors consider the impact of interest rates and Federal Reserve policies.
Bitcoin is on the verge of reaching levels that offer accumulation opportunities and could potentially start an uptrend, according to crypto trader Michaël van de Poppe, who compares the current price action to that of a pre-halving year.
Investors are expected to shift from traditional bond investments to Bitcoin as a hedge against US dollar debasement, according to Bloomberg Intelligence crypto market analyst Jamie Coutts.
Bitcoin may eventually be replaced as the top digital asset, despite being the best form of money currently available, according to BitGo CEO Mike Belshe.
The U.S. economy is experiencing turbulence, as inflation rates rise and U.S. Treasuries lose value, leading to concerns about whether Bitcoin and risk-on assets will be negatively impacted by higher interest rates and a cooling monetary policy.
Bitcoin and cryptocurrencies are facing pressure due to the U.S. debt pile, leading to fears of a "debt death spiral" that could boost the bitcoin price.
Author Robert Kiyosaki believes that Bitcoin and other assets will become "priceless" as the Federal Reserve introduces a central bank digital currency (CBDC), leading to a loss of privacy and increased government control.
Bitcoin and gold are expected to thrive amidst fiscal problems in the US economy and a potential pivot from the Federal Reserve, according to macro investor Luke Gromen. Gromen also suggests that the launch of a gold-backed currency by the BRICS alliance may weaken the US dollar as the world's reserve currency.
The recent uncertainty regarding the United States debt limit and the subsequent signing of the spending bill by President Joe Biden led investors to question the momentum for cryptocurrencies, but with an extension in place, lawmakers need to find a solution before November 17 to avoid further economic risks. Bitcoin has experienced a price increase, prompting investors to anticipate volatility as the debt ceiling decision approaches, and a recommended neutral-market strategy involving options trading is suggested for investors looking to mitigate potential losses and profits.
Former CEO of BitMEX, Arthur Hayes, predicts that the United States government's ballooning treasury yields could lead to a new bull market for Bitcoin and cryptocurrencies, as rising interest rates may force the government to resort to mass liquidity injections.
Bitcoin could face difficulties in the long term due to tightening liquidity in the current macroeconomic environment, according to crypto analyst Nicholas Merten. Merten believes that Bitcoin's price is heavily influenced by monetary policy and warns that if sentiment turns bearish, investors may start cashing out.
The market capitalization of stablecoins has dropped by 35% in the past 18 months due to factors such as reduced retail participation, surging US treasury yield, and high opportunity cost, with only a few stablecoins like USDT remaining resilient and dominant in the market. The decline is attributed to traditional finance rates exceeding crypto-native yields, and the market share decline of US-native stablecoins is seen as a result of U.S. regulation hostility. Stablecoins are considered the "killer app" of the crypto industry, comprising a significant portion of settlement activity on public blockchains. The trend is expected to reverse when there is revived interest in crypto trading, steady interest rate cuts, and a pro-crypto regulatory environment.
Janet Yellen, the Treasury Secretary, believes that no existing currency can replace the US dollar as the global reserve currency, despite its recent decline, but warns that its share may continue to decrease as countries diversify; however, there are alternative investments like gold, fine art, and real estate that can help mitigate risks associated with the dollar's decline.
Bitcoin is a superior form of digital money that is unlikely to be supplanted by other cryptocurrencies due to its security and decentralization, making it an attractive store of value in a digital world, according to Fidelity Digital Assets.
Bitcoin and other major cryptocurrencies are struggling to maintain their early 2023 gains due to the U.S. government's crackdown on crypto, prompting billionaire hedge fund manager Paul Tudor Jones to stockpile bitcoin and gold amid the "cataclysmic" fiscal situation in the country.
Bitcoin (BTC) remains stable as U.S. inflation data surpasses expectations, leading to uncertainty in monetary policy and the Federal Reserve's ability to cut interest rates; market participants are cautious about a potential upside for BTC in the short term.
Western expats in El Salvador see Bitcoin as a catalyst for future economic growth, envisioning the nation as a beacon of hope and freedom from the politics and restrictions of Western governments, with the potential for a fairer global monetary system based on the "Bitcoin Standard."
Bitcoin is predicted to benefit from a return to currency debasement by the US government, making it a potentially valuable asset for investors.
Bitcoin, along with other major cryptocurrencies, has been impacted by the unstable U.S. fiscal situation and the potential collapse of the U.S. dollar, while Wall Street giants like BlackRock are poised to embrace bitcoin and revolutionize finance.
Crypto finance, despite its claims of decentralization and independence from state-backed money, is heavily dependent on centralized platforms and is a vehicle for financial speculation rather than a means of escape from state control, according to Ramaa Vasudevan, professor of economics. Moreover, the growth of crypto will compound the volatility of global capitalism and its environmental impact is significant due to the energy-intensive process of mining and validating crypto tokens. The rise of stablecoins has been crucial in the development of crypto finance, but it is ultimately dependent on conventional currencies for stability. The recent crash of crypto finance has revealed its fragility and the absence of central banks as lenders of last resort exacerbates financial instability. Crypto finance fits into the wider picture of financialization and asset-price bubbles, promoting inequality and concentration of wealth. Ultimately, the politics of money and its relationship with the state are contested in the crypto sphere, as it neither depoliticizes nor democratizes money. Finally, crypto finance has become a battleground in the economic competition between the United States and China, with both countries striving for dominance in the digital currency space.
Bitcoin's current price, which is below $30,000, presents an opportunity for investors to add it to their portfolios due to potential near-term catalysts like the upcoming halving, the possibility of approved Bitcoin exchange-traded funds, and a more accommodative Federal Reserve policy that could boost the cryptocurrency's price in the long term.
Bitcoin is poised for another meteoric rise due to the return of money printing by the US government, according to a trader who accurately predicted the end of the crypto's bull market in 2021, with Bitcoin potentially reaching a new all-time high of $180,000.
Australia's central bank is exploring the potential of tokenised money and the launch of a central bank digital currency, which could save billions of dollars in costs in domestic financial markets and bring increased liquidity and transaction savings to issuers in capital markets.
