Understanding the Financial Impact of NFTs on Digital Assets
NFTs, or non-fungible tokens, are digitally unique. They are becoming increasingly popular in the digital asset market, and it is important to understand the financial impact they can have on digital assets.
NFTs represent ownership of a digital asset, such as a digital artwork, video, or audio file. They are stored on the blockchain, which is an immutable digital ledger. means that ownership of the asset is recorded on the blockchain, and it cannot be changed or manipulated. This makes NFTs a secure way to own digital assets.
NFTs are also a way to monetize digital assets. They can be sold on the open market, and the owner of the asset will receive the proceeds from the sale. This can be a great way to generate income from digital assets.
NFTs also have the potential to increase the value of digital assets. Since they are unique and cannot be replicated, they can become more valuable over time. This means that digital assets that have been tokenized with NFTs can become more valuable than they were before.
Finally, NFTs can be used to create new markets for digital assets. For example, NFTs can be used to create a marketplace for digital art. This can open up new opportunities for artists to monetize their work and create new markets for digital assets.
Exploring the Potential Cost Savings of NFTs on Digital Assets
The potential cost savings of using Non-Fungible Tokens (NFTs) on digital assets is an exciting prospect for many businesses. NFTs are digital tokens that are unique and cannot be exchanged for other tokens. They are used to represent ownership of digital assets, such as artwork, music, videos, and even virtual real estate.
NFTs can also help businesses save money by reducing the need for third-party services. For example, businesses can use NFTs to securely store digital assets and eliminate the need for costly third-party storage solutions. Similarly, businesses can use NFTs to securely transfer digital assets, eliminating the need for costly third-party transfer services.
Finally, NFTs can help businesses save money by reducing the need for costly legal services. By using NFTs, businesses can easily create and enforce digital asset contracts, eliminating the need for costly legal services. Additionally, NFTs can help businesses protect their digital assets from theft and fraud, reducing the need for costly legal services.
Examining the Impact of NFTs on the Value of Digital Assets
NFTs have the potential to revolutionize the way digital assets are valued. NFTs provide a way to assign real-world value to digital assets, which can be used to create a new market for digital assets. By assigning a unique value to each NFT, it can be used as a form of currency, or as a form of investment.
NFTs also provide a way to track and verify ownership of digital assets. This is important because it ensures that digital assets are not stolen or counterfeited. This is especially beneficial for digital assets such as artwork, which can be easily copied and distributed without the creator’s permission. By using NFTs, creators can ensure that their work is protected and that they are compensated for their work.
NFTs also provide a way for digital assets to be traded on the open market This means that digital assets be bought and sold, just like any other asset.
Bloomberg Intelligence Senior Strategist Discusses Implications of Banking Crisis on the Bitcoin Market The ongoing banking crisis seems to be a pivotal moment for the global financial system and for crypto After the shutdown of two major crypto-friendly bags, the position of the crypto industry in the US looks increasingly precarious. On the other hand, confidence in traditional bags has been shaken and people are forced to look for alternatives. Bitcoin an asset without counterparty risk that can be self-casted may be that alternative. So what are the broader implications of the banking crisis on the crypto market? Is this the catalyst that will kick off the next Bitcoin bull run To find out. I talked with Microgron the senior commodity strategist at Bloomberg, Intelligence, I’m Giovanni, and on this show, we challenge the ideas that shape the world of crypto. In each episode, we assess a crypto narrative, a macroeconomic outlook or a potentially disruptive technology. Only the most solid ideas will make it to the other side.
Banking crisis defining Bitcoin as global digital coI just want to get a sense of what you think about the latest banking crisis and its relation with the crypto markets. So, in a recent interview you said that the current banking crisis is defining the value of Bitcoin. Can you explain exactly what you meant by that? So Bitcoin was born out of the last significant financial crisis or the Great Financial Crisis in 2009, and I think this one’s in the process of defining Bitcoin as global digital collateral? Now that’s the current state Bitcoin has done very well bouncing back above 25,000 resistance At the time we’re taping this on Wednesday, it’s around 27,000, while the stock market still is under pressure – And I think what’s happening – is we’re seeing a significant rally in Bitcoin this year.
How Bitcoin can outperform all cryptocurrencies after the banking crisis | Analyst explains
llateral, leading to significant rally in 2020.Bitcoin Gains Ground as a Global Digital Collateral Amidst Financial CrisisUp to about 73 %, Obviously it was oversold last year, but partly because people are realizing that it’s becoming more like gold and US Treasury bonds, but just a higher beta version of gold And it’s gaining accolades as maybe not so much a store value. Yet. But it’s global digital collateral in the world, that’s going digital, So this financial crisis is quite significant and it’s defining it And I think people are realizing the thing about Bitcoin, it’s no one’s project and no one’s liability and it’s completely independent, like gold. The thing is, it has a definable definition, diminishing supply and it’s so low as far as adoption in so early days – and this seems to be the trigger The banking crisis.I think when people realize “ – Oh my money may not be so safe in a fractional reserve banking system. It might be safer in a fully collateralized, stablecoin or crypto dollar .”. It seems to be hitting that inflection point that I’ve been looking for a while.
Bitcoin transitions from hedging against inflation to hedging against banking risks I’M just kind of during the headlights watching “ Wow. Is it really finally happening “ There used to be a narrative that defined Bitcoin as a hedge against inflation. Would you say that now this narrative has transitioned into Bitcoin as a hedge against banking risks? I think it’s going there because I never believed in the hedge against inflation because that’s so long term Bitcoin needs to be around for I think decades before that happened, It’s still just a baby. It’s just evolving! It’s so early days. It’s such a small portion of global portfolios, But as far as a potential hedge against banking issues, yeah, I mean it’s coming up there like with gold and Treasury bonds. Now that’s just a high beta high-risk version, but I think it’s people are realizing “. Well, I really probably have to have some of this, particularly if I’m looking to get away from risk assets like the stock market.
Expert dismisses fears of US authorities “debunking” cryptocurrencies as short-term fear-mongering This Bitcoin stuff is if the stock market, if risk assets, do recover, it’s probably gon na outperform “.I just want to touch upon some of the fears that have been going around for quite a while in the US, because a lot of people were talking about this Operation. Choc Point 2.0, which is basically this narrative according to which the United States authorities are trying to debunk crypto in the US. How big of a threat is that? Are you not concerned about this trend? I’m surely concerned, but I think it’s much more short-term fear-mongering and it’s typically not going to last. It’s part of what this is an overwhelming, rapidly advancing technology and most astute smart people in this country get it Some don’t They might be incumbents in power, but, like all the major changes in history, even like the key thing, the obit development of Eurodollars, that Was not really the trading of US dollars offshore and banks? Was that really supported by the US government, we’re seeing?
Bitcoin Growth May Face Pushback from Current Administration, But Long-Term Adoption Unstoppable Despite Fed Policies, Banking Crisis I think this is just overwhelming. So I think I don’t know where that’s going to go. I do know if the current administration continues to push back. They’re likely to be voted out in two years anyhow like a chairman of the SEC, But two years left, and I don’t know when I had to define that so much. But it just means that it’s going to be a pushback in the shorter term. But in the bigger picture, it’s really going to be hard to stop. This technology. We know that the growth of the price of Bitcoin is still very sensitive towards the US, and Fed monetary policies and how aggressively these monetary policies are being handled. So a lot of people saw this banking crisis as this turning point where the Fed is going to say “, We have been tightening too hard, and now we are basically being hit by the collateral effect of that .”. So a lot of those banks collapsed because of the two aggressive hikes of interest rates that have been conducted in the last few months.
Fed hikes rates despite potential recession concerns in the global banking crisis Today we saw that all the eyes were pointed at the Fed, seeing whether the Fed was going to hike more or stop and try to prevent this banking crisis from continuing. So what is your reaction to the Fed’s decision today? They hiked rates, again. The ECB did a week ago, 50 basis points and it’s probably the last hike Markets are pricing for easing a little bit of easily, not a lot yet, but the bottom line is they’re, potentially tilting us towards a significant recession. Potentially depression, I mean the hike into you can’t be a hawk in a bank run is the quote from my colleague, Tom Orlik He’s our chief economist, and he wrote that a little while ago and they just did, Can we were having a big run. So the ECB, this is a global bank run and it potentially this country is just getting started. Remember it’s basically only been a year and one week since the first hike, the most aggressive hike on a global basis ever and there’s this rule of long and variable lags.
Expert predicts official acknowledgment of deflation as recession looms and commodities collapse So what I see is the bank situation is a tree in the force of what I’ve been pointing out for a while Commodities collapsing. Now, let’s just start getting started, because everything is tilting towards recession, except things like unemployment and unemployment can only go one way. It’s so low, it can only go up, which means the recession is virtually guaranteed. You look at things like the yield curve, so I think the Fed is just way far behind like they were so far behind in inflation. Now that inflation is potentially collapsing and I’ll point out that in a second, the leading indicators peaking housing, the banking crisis, and commodities means they should have stopped and they still hiked rates. So I fully see looking forward we’re going to have the official acknowledgment of deflation other from government statistics, not from forward-looking things like my commodities and the Fed tightening So they’re.
Banking crisis accelerates the next crypto bull run, but S&P 500 pressure could impact Bitcoin, says an expert. So far, behind the key thing we’re going to end with we’re going to find out what and get is now By this time next year, Giovanni when we’re talking, I’m pretty sure we’re going to be talking about significant enduring deflationary forces. The Fed, not easing with the ease that it has in the past. Everybody is waiting for the moment when the next crypto bull market will kick off. So has this banking crisis accelerated this perspective, or has it made it far further away? What is your view on this? I think the answer is yes, it’s kicking off the next bull run, but it’s very much subject to the ebbing tide of the stock market. We’re talking right now with the S & P 500 around 4,000.I feel expected to go to 3,000 in a recession, a normal recession, which is predicted the highest probability since 1982 from the yield curve, And that’s going to be a pressure factor in Bitcoin but potentially you’re hitting that inflection.
Bitcoin’s Sustainability Above $25,000 Could Indicate Takeoff Amid Recession, Says Expert Now, where this recession is going to be great for things like gold and long bonds And the thing is – is Bitcoin in there?I think it’s hitting that, but it’s just hard to say for sure, But I think the more the Bitcoin can sustain above 25,000 and the more the S & P 500, potentially pressures below 4,000. You can have an indication that Bitcoin is just going to take off and we have to get there. To touch upon your view on the crypto dollar, so the stable coins dollar-backed stable coins. What we saw is that a very respected, stable coin USDC had a significant amount of their reserves in a bank that was a Silicon Valley bank. It collapsed and it lost its bag for a little while So that kind of showed how these crypto dollars can also be very vulnerable to this sort of crisis. What is your view on that? It’S funny. It’S unique that the In the banking system, they did it in banks outside the U.S. and created the Eurodaux system. This is happening in crypto dollars and it’s happening fast.
Bitcoin Expected to Continue Outperforming Ethereum Amidst Global Economic Recession, Says Analyst The technology is overwhelming and we know that now Ethereum is going to turn fully proof of stake by allowing staking with the Shanghai upgrade. What do you think Is Ethereum going to outperform Bitcoin this year? So far, Bitcoin has outperformed virtually all crypto assets and if my base case of a severe global economic reset recession pans out, I think Bitcoin will continue to outperform. I see Ethereum right now, stuck between a thousand and two thousand. Now it’s at 1700 and 2000 is very good resistance. It is the base layer for the tokenization of crypto dollars and things like that. But now we’re in that stage, where I think, if I’m correct, the stock market goes closer to three thousand S & P 500 and gold and treasury bonds. Outperform in this significant recession in the US, Then I think Bitcoin will outperform virtually all cryptos, including Ethereum. That’s been the case so far this year, It’s the existing trend and I think it’s going to accelerate more.
Strategist Warns of Economic Hurricane and Predicts Bitcoin to Outperform Other Cryptos. We have to get through this bump in the road and the bottom line, to remember from my standpoint as a strategist is that it’s my duty to warn people when I see a hurricane coming, I see a hurricane coming economically man, It’s just based on what you see We started speaking about it earlier and it’s central banks tightening despite a bank crisis and despite forward-looking deflationary forces, Bitcoin will probably be the best performer among the cryptos, including Ethereum. Well, Greg awesome Thanks Dr. Mike for giving your outlook in these complicated times. Let’s talk again very soon, Looking forward to it Giovanni, and thanks for having me on
To better understand the needs of investors in the asset management (AM) industry, the British Financial Conduct Authority (FCA) has published a new regulation paper titled ‘Updating and improving the UK regime for asset management. Interested parties can submit their comments and ideas by 22 May 2023.
FCA Wants to Update Asset Management Laws
The UK firms manage over £11 trillion in assets, making the country a leading hub for asset management. Through the Future Regulatory Framework, the assessment of the future of the local financial services sector outside of the EU, the FCA has an opportunity to enhance asset management regulation with a more modern and customized system that effectively addresses the requirements of UK markets and customers.
The FCA will ensure that any modifications are in harmony with global standards and promote technological advancements and innovation.”The UK has an opportunity to update and improve the UK regime for asset management. We want to hear from a wide range of voices about how we can enhance the existing standards, and what we should prioritize to bring the most benefits to consumers, firms, and the wider global economy,” Camille Blackburn, the Director of Wholesale Buy-Side at FCA, commented.
In its latest publication, the FCA presents a broad array of concepts, such as how it can facilitate firms in using technology to enhance customer efficiency and experience. Additionally, it examines how the FCA’s regulations can be improved to help companies deliver assistance to retail and wholesale investors, whether based in the UK or internationally.
At the current level of work, the FCA has not yet approved any proposals, and it wants to hear from stakeholders before doing so. The update to the AM rules is in line with the regulator’s three-year strategy to promote growth in the quality of local financial markets.
Watch the recent FMLS22 panel on constructing collaboration between fintech, banks, and asset management companies.
With or Without the EU, the UK Dominates the Asset Management Industry
The asset management industry grew in 2021 by £600 billion (or 5%), while 37% of all European assets are under UK management. The country’s share in the AM industry is more significant than the following three countries combined, including France, Germany, and Switzerland.
“Given the UK’s leading role as a center for asset management, we want to make sure our rules are fit for the future. We want a UK wholesale market that supports the economy and is open to innovation while remaining consistent with high standards of consumer protection and market integrity,” Blackburn added. Additionally, the report by Global City shows that the UK is a convenient location for overseas investors, with 65% of UK investment fund managers’ assets based overseas. Overseas clients account for £4.6 trillion of total assets under management.
FCA on a Hiring Spree in 2022
To better serve the asset management and other financial services industries, the UK’s regulator added 1,000 new officers in 2022, opened an office in Leeds and accelerated its expansion in Edinburgh.
Meanwhile, at the beginning of 2023, the FCA announced several significant personnel decisions. At the beginning of February, the regulator confirmed theappointment of Aidene Walsh as the Chair of the PSR (Payment Systems Regulator). Welsh has served as the PSR’s Interim Chair since April and was recently commissioned for a full three-year term.
Additionally, the regulator has reappointed Baroness Zahida Manzoor to lead the Financial Ombudsman Service (FOS) as its Chair for a second term, which will run until August 2025. The FOS has direct contact with consumers, and in 2022, it accepted more than 73,000 complaints relating to the performance of financial services and products. To better understand the needs of investors in the asset management (AM) industry, the British Financial Conduct Authority (FCA) has published
The Financial Stability Board (FSB), the financial regulator funded by the Bank for International Settlements (BIS), is pushing international regulations for decentralized finance (DeFi).
The FSB on Feb. 16 issued a report on the financial stability risks of DeFi, highlighting major vulnerabilities, transmission channels, and the evolution of DeFi.
Despite providing many “novel” services, DeFi “does not differ substantially” from traditional finance (TradFi) in its functions, the authority said in the report. By trying to replicate some functions of TradFi, DeFi increases potential vulnerabilities due to the use of novel technologies, the high degree of ecosystem interlinkages and the lack of regulation or compliance, the FSB argued.
Moreover, the actual degree of decentralization in DeFi systems “often deviates substantially” from the stated claims of the founding originators, the authority claimed.
In order to prevent the development of DeFi-associated financial stability risks, the FSB is cooperating with global standard-setting bodies (SSB) to assess DeFi regulations across multiple jurisdictions.
Monthly DeFi unique addresses and number of DeFi apps. Source: FSB
In this regard, a key element to consider would be the entry points of DeFi users, including stablecoins and centralized crypto asset platforms, the FSB said, adding:
“The FSB may consider whether subjecting these crypto-asset types and entities to additional prudential and investor protection requirements, or stepping up the enforcement of existing requirements, could reduce the risks inherent in closer interconnections.”
The FSB emphasized that both asset-backed stablecoins like Tether (USDT) and algorithmic stablecoins like Dai (DAI) play an important role within the DeFi ecosystem through their use in purchasing, settling, trading, lending and borrowing other crypto-assets. The rise of stablecoins would also likely increase the adoption of DeFi solutions by retail and corporate users as well as facilitate the adoption of crypto assets as a means of payment, the regulator suggested.
“With respect to liquidity and maturity mismatch issues, stablecoins are a crucial area of focus,” the FSB wrote, stressing the need to understand the peculiarities of different stablecoins in order to monitor the risk they pose to the crypto industry, including DeFi ecosystems.
The news comes amid the increasing scrutiny of some major stablecoins by global regulators. On Feb. 13, blockchain infrastructure platform Paxos Trust Company announced that it will stop issuing Binance USD (BUSD) stablecoins amid the ongoing probe by New York regulators. The New York Department of Financial Services ordered Paxos Trust to stop BUSD issuance, alleging that BUSD is an unregistered security.
Financial worries become our lot from time to time. We cannot help them in most cases and when they arise, they can cause a great deal of stress. Without eliminating these worries, we find that there cannot be progress in our life, and we start moving backwards instead of forwards.
But, in most cases, these financial worries are quite hyped. They are not what they seem to be. If you are not able to make a payment before a particular deadline, sit down and analyze your situation again. Is it such a difficult thing? Maybe you could make money from somewhere if you needed it. Maybe you could negotiate for more time. Maybe you could negotiate for a lesser payment. It is also possible that someone—a friend or relative—might help you in your hour of need.
When we worry about money, we actually start a chain of highly destructive events. Our worry prevents us from thinking clearly. Due to that, we are not able to work. That creates a greater shortage of funds. We cannot solve the difficult time we are going through. Eventually, the worry just gets compounded.
Instead, the right approach would be to think positively and keep a level head even if there are difficult times we are going through. Most monetary problems are not as difficult they seem.
Prevention is always the best cure for monetary problems. Consider good investment options. Let alone investment plans, even if you are able to just salt away a little money for the future, it could help you in great measure. Learn the value of money and try not to overspend when you have money. Save it for difficult times that might come in future.
It is always good to save on assets that grow. Think about investing in real estate and precious metals like gold. Think about bonds and equities, which have a good reputation for increase as well. Consider making fixed deposits in your bank. Invest in your children’s future and think about medical insurance for everyone in the family. These will ensure that you have money when you need it.
Most of your worries can be avoided through these ways.
Moreover, instead of spending time in fruitless worry, you could definitely do a much better job is you spend that time in taking up some new source of making money. With the Internet, there are so many options right now. Well, you could even write as a freelancer and make good money out of it. You could sell some of the things that you don’t need any more through places like eBay and Amazon.
At the end of it, money problems are not all that they are exaggerated to be, unless you are looking at a very large expense such as buying a building or a bridge. For everyday monetary issues, you just need to have a clear head and think about what options you have with you.
Running your own business, whether it is a big or small business is a lot of hard work. It’s never easy. There are so many things that you need to attend to, and running the whole operation yourself can be difficult.
Thankfully there are some ways to lighten your workload. Besides getting a few business partners another way is to choose to run a franchise business. This will save you from having to develop your business plan yourself.
But it is true that it will always be difficult to finance a small business operation. Even a franchise has its pitfalls and it can be tricky. So how do you go about making it all a bit easier?
People would rather run a business through a franchise these days, this means they are already provided with the main things they need to start their business off well.
When you own your own franchise you are required to make an upfront payment. Besides this, you also need lots of capital in order to fund the marketing and build-out costs.
In this instance, you would do well to study a bit more about the different forms of financing which are available to smaller business. But most of the time, franchises will try to qualify for franchise loans.
Some good news here, it is much easier for the banks to approve financing for a franchise then it is for them to finance a new start-up business. The reason for this is that franchises already have a good track record, also with money.
The franchisers would also be able to supply the necessary money for the business owner. The type of financing very much differs from one franchisor to the other. The amount also varies between different franchisors. Financial firms also offer funding to smaller businesses by using their retirement funds.
This is made possible because of a financial structure which has been developed. This structure enables the franchisors to invest retirement money straight into their own franchise, they can do this without having to pay taxes.
A small business administration person provides the franchises with all sorts of different types of funding. What you should do is learn about the different ways in which you can increase capital.
There are many different ways for you to increase the amount of capital you have, for your own personal franchise. It is very important for you to keep watching your finances. That way you can determine whether they are being wisely spent and invested.
The U.S. national debt reached its all-time high this month, surpassing $31 trillion.
Over $11 trillion of the debt was added in the past 10 years alone, $5 trillion of which was a direct result of the debt spending initiated by the Biden administration in 2020.
Graph showing the size of the U.S. debt from 1922 to 2022
According to The Committee for a Responsible Federal Budget, the $5 trillion includes President Biden’s signature $1.9 trillion stimulus bill, several new congressionally-approved spending initiatives, and a student-loan debt forgiveness plan expected to cost nearly $400 billion.
While many economists argue that a certain level of debt is necessary to stimulate growth, the current national debt breaks all previously seen thresholds. The world’s leading economy is running a deficit, with the ratio of debt to GDP currently standing at 137%. The $31 trillion the U.S. owes dwarfs the $25 trillion GDP it saw this year.
Despite the government’s efforts to reduce the deficit for the 2022 fiscal year, economists expect it will rise higher than previously expected over the next three years. This is largely due to rising rates driving higher interest costs, which many believe will further increase the national debt.
As significant chunks of the debt mature, they will need to be replaced with additional borrowing, with interest rates compounding. Replacing the $31 trillion of debt at a 3.2% rate would bring the interest rate expense to $1 trillion annually.
Current economic conditions mean that the U.S. would need to borrow more money to pay off interest rates. With government spending rapidly outpacing tax revenue, the deficit will continue to increase. A declining economy heading into a recession has already dealt heavy blows to the market, wiping out billions in profit. The losses retail investors suffer mean fewer capital gains taxes, while the losses institutional investors suffer reduce the overall amount of corporate taxes the government collects.
Despite the COVID-19 pandemic exacerbating the issue, this problem began long before 2020. The growing debt has been hanging over the U.S. economy since the late 1990s and exploded in 2007 with the onset of the Great Financial Crisis. Resolving the wreckage left by over-leveraged financial institutions required aggressive quantitative easing (QE), setting a solid foundation for another recession.
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Russian President Vladimir Putin signed a law on July 14 that bans the use of cryptocurrencies as a means of payment, local news media RBC reported.
The ban applies to the use of digital financial assets (DFAs) and utilitarian digital rights (UDRs), which refers to tokens that offer the right to utility or services.
The law reads,
“It is prohibited to transfer or accept digital financial assets as a consideration for transferred goods, performed works, rendered services, as well as in any other way that allows one to assume payment for goods (works, services) by a digital financial asset, except as otherwise provided by federal laws.”
The final clause leaves an exception on DFA payments that may be allowed by federal laws.
The legislation also places an obligation on crypto exchanges to reject any transactions where DFAs or UDRs can be used as an alternative to money. In other words, crypto exchanges need to ensure that no transaction takes place where any crypto assets are used as payment for goods or services.
The draft bill was first introduced in the State Duma, the lower house of the Russian Parliament, on June 7 by Anatoly Aksakov, Chairman of the Financial Market Committee. The law was approved by the Federation Council, the country’s upper parliament house, and sent for consideration to Putin on July 8.
Although Russia is yet to fully regulate cryptocurrencies, the law “On Digital Financial Assets” introduced and defined DFAs and UDRs when it went into force in 2021.
Russian regulators are scheduled to review a new bill, “On Digital Currency,” later this year which is expected to fill the holes in regulation.
The legislation will come into force 10 days after it is published in the government gazette, the RBC report said.
A change in stance
Although the Russian central bank had called for a ban on cryptocurrencies for years, recent developments suggested that the bank may be softening its stance.
In May, the Russian industry and trade minister Denis Manturov said that the country would sooner or later legalize crypto payments, Reuters reported.
In the same month, another Reuters report stated that the Central Bank of the Russian Federation was open to the use of cryptocurrencies for international payments.
In June, central bank governor Elvira Nabiullina said in an interview with RBC that cryptocurrencies can be used for international payments, provided the assets do not “penetrate” the Russian financial system.
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Bitcoin plunged below $19,000 on 18 June amid a huge sell-off across the crypto market. BTC, once known as a strong contender for the title of ‘digital safe haven asset’, has now crashed by more than 70% in the past 7 months.
Coinmarketcap.com
The Bitcoin crash is nothing new. Investors witnessed similar corrections throughout the last decade. Most recently in 2018 and 2020. However, BTC’s correlation with S&P 500 and Nasdaq indicates that the crypto asset is also vulnerable to macroeconomic events.
BTC reached an all-time high of approximately $69,000 in November 2021, since then, the digital asset has been in a consistent decline mainly due to a dip in retail interest. But the Bitcoin story is not over yet. The main difference between the previous BTC crashes and the recent bearish cycle is that the adoption of Bitcoin has increased rapidly in the past few years. According to a report from Crypto.com, there are more than 300 million cryptocurrency users around the world.
Due to rising adoption and growing institutional interest, leading voices across the crypto market believe that the world’s most dominant digital asset is currently trading at a discounted price.
70% Discount
Johnny McCamley, Founder and CEO of CryptoClear, said that BTC’s current price level provides an opportunity of a lifetime.
“Bitcoin is cheap right now (70% discount) as the all-time high was $69,000 only last November. We are still early in the Bitcoin lifecycle and this is a buying opportunity of a lifetime right now,” McCamley said.
“Taking into consideration the global economic situation, the current price can be considered part of the maturing process of the crypto industry, and a considerable opportunity to join the trend especially if you are looking at the long term,” Martin Noam Slutzky, co-founder of InvestingNFT and a founder of Alef & Sky, commented.
Institutional Interest
Since the crash of 2018, many institutional investors entered the Bitcoin market and started accumulating BTC in large amounts. From Tesla to MicroStrategy, most of the public listed companies purchased BTC at different price levels. Even countries like El Salvador bought the dip on different occasions. Rising institutional interest has made Bitcoin almost ‘too big to fail’.
CoinGecko.com
“BTC is extremely undervalued, especially after adoption from big institutions. Corporates have started treating Bitcoin as an alternative asset and some of them are even accepting the crypto asset as a mode for payments,” Joaquim Matinero Tor, Blockchain Associate at Roca Junyent, said.
Regulatory Clarity
Regulatory authorities around the world have increased their efforts to draft and implement clear crypto regulations to facilitate innovation in the crypto sector. For instance, UAE recently adopted the Digital Asset Law and witnessed a jump in crypto activities in the region. Digital exchanges like Kraken and Crypto.com expanded their operations in the region due to UAE’s clear approach to crypto regulations. The recent acquisition of licenses in Italy and France by Binance shows that Europe is also planning to open its doors for crypto innovation.
Binance
“Regulation will help crypto adoption. Several big institutions are planning to enter the Bitcoin market and are just waiting for the elimination of regulatory hurdles,” McCamley said.
After the Terra (LUNA) crash, whales started parking money in cash to wait for the right opportunity to enter the crypto market. Bitcoin’s current fundamentals, including retail adoption, the growing number of addresses, mining rate, and accumulation trend, show that BTC has the potential to hit another all-time high in the coming years.
Bitcoin plunged below $19,000 on 18 June amid a huge sell-off across the crypto market. BTC, once known as a strong contender for the title of ‘digital safe haven asset’, has now crashed by more than 70% in the past 7 months.
Coinmarketcap.com
The Bitcoin crash is nothing new. Investors witnessed similar corrections throughout the last decade. Most recently in 2018 and 2020. However, BTC’s correlation with S&P 500 and Nasdaq indicates that the crypto asset is also vulnerable to macroeconomic events.
BTC reached an all-time high of approximately $69,000 in November 2021, since then, the digital asset has been in a consistent decline mainly due to a dip in retail interest. But the Bitcoin story is not over yet. The main difference between the previous BTC crashes and the recent bearish cycle is that the adoption of Bitcoin has increased rapidly in the past few years. According to a report from Crypto.com, there are more than 300 million cryptocurrency users around the world.
Due to rising adoption and growing institutional interest, leading voices across the crypto market believe that the world’s most dominant digital asset is currently trading at a discounted price.
70% Discount
Johnny McCamley, Founder and CEO of CryptoClear, said that BTC’s current price level provides an opportunity of a lifetime.
“Bitcoin is cheap right now (70% discount) as the all-time high was $69,000 only last November. We are still early in the Bitcoin lifecycle and this is a buying opportunity of a lifetime right now,” McCamley said.
“Taking into consideration the global economic situation, the current price can be considered part of the maturing process of the crypto industry, and a considerable opportunity to join the trend especially if you are looking at the long term,” Martin Noam Slutzky, co-founder of InvestingNFT and a founder of Alef & Sky, commented.
Institutional Interest
Since the crash of 2018, many institutional investors entered the Bitcoin market and started accumulating BTC in large amounts. From Tesla to MicroStrategy, most of the public listed companies purchased BTC at different price levels. Even countries like El Salvador bought the dip on different occasions. Rising institutional interest has made Bitcoin almost ‘too big to fail’.
CoinGecko.com
“BTC is extremely undervalued, especially after adoption from big institutions. Corporates have started treating Bitcoin as an alternative asset and some of them are even accepting the crypto asset as a mode for payments,” Joaquim Matinero Tor, Blockchain Associate at Roca Junyent, said.
Regulatory Clarity
Regulatory authorities around the world have increased their efforts to draft and implement clear crypto regulations to facilitate innovation in the crypto sector. For instance, UAE recently adopted the Digital Asset Law and witnessed a jump in crypto activities in the region. Digital exchanges like Kraken and Crypto.com expanded their operations in the region due to UAE’s clear approach to crypto regulations. The recent acquisition of licenses in Italy and France by Binance shows that Europe is also planning to open its doors for crypto innovation.
Binance
“Regulation will help crypto adoption. Several big institutions are planning to enter the Bitcoin market and are just waiting for the elimination of regulatory hurdles,” McCamley said.
After the Terra (LUNA) crash, whales started parking money in cash to wait for the right opportunity to enter the crypto market. Bitcoin’s current fundamentals, including retail adoption, the growing number of addresses, mining rate, and accumulation trend, show that BTC has the potential to hit another all-time high in the coming years.
Russia has joined the list of countries that have adopted cryptocurrency as a means of payment. However, this might be less so from an eagerness to adopt the world of crypto, but rather may be related to the sanctions imposed on the country due to the ongoing war between Ukraine and Russia.
This Russian court ruling that allows crypto as a payment method came just a week after the Russian Industry and Trade Minister Denis Manturov hinted that the country would soon make crypto a legal form of payment. As Manturov foretold, the City Court of St. Petersburg made a ruling that officially recognized digital assets.
Analysts see this as a way to cushion the effect of the sanctions imposed by various countries on Russia ever since the war in Ukraine started on Thursday, 24 February 2022.
This latest move by Russia, and several other countries, during the present bear market the world is currently experiencing shows the prominence crypto has gathered over the years. However, the question of cryptocurrency regulation will be the next question in need of an answer.
It is worth noting that, ever since the start of the war with Ukraine, lots of multinational companies have deserted Russia. This situation has had a strongly adverse effect on the economy of Russia. The rubble, which is the official currency of Russia, has also suffered a big setback since the beginning of the war with Ukraine, massively declining in value.
Those Russians that are crypto-savvy will definitely be happy with this news, as it makes cross-border payment easier when Russian assets, FIAT currencies, and banks are being sanctioned.
As one of the first countries in Europe to make crypto a legal form of payment, Russia might actually be positioning itself as a crypto hub for investors. However, its ongoing fractured relationship with a number of world powers makes this reality quite unlikely, at least for the time being.
Also worth noting is that prior to this announcement, Russia did not have the friendliest attitude toward DeFi and crypto, and many state banks denounced the concept.
Times are, however, changing. Piron and Yevgeny Prigozhin were sentenced to jail in the city of St.Petersburg for defrauding over $1 million in digital assets from another man. The initial ruling by the court did not convict them; however they were later convicted with an appeal after the court ruled crypto as a means of payment. This shows that Russia is willing to regulate the space, when many other countries won’t.
