CryptoNews of the Week

Publish date: Wed, 13 Mar 2024, 10:45 AM
CryptoNews of the Week

– In a CNBC interview, former US President and Republican Party leader Donald Trump highlighted the importance of the American national currency and compared moving away from the dollar standard to a defeat. At the same time, he stated that he does not plan to obstruct the use of bitcoin or other cryptocurrencies if he wins the election in November. "If you think about it, it's an additional form of currency," Trump remarked. "Bitcoin is widely used, and I'm not sure I would want to give it up right now," the politician added. However, when asked by the interviewer if he himself invests in cryptocurrency, the former (and possibly future) president responded negatively.

– Balaji Srinivasan, former CTO of Coinbase and a general partner at a16z, has declared we are in the phase of treasury plunder amidst an empire's collapse. Bitcoin, he asserts, is the only available salvation from inflation and the potential confiscation of assets in the US, which could result from the unsustainable trajectory of government spending. According to his calculations, the US national debt has reached a record $34.5 trillion, having increased by 25% since 2020, and continues to grow by $1 trillion every 90 days. The US government spends $10 billion more daily than it receives. Based on this, Srinivasan did not rule out that, as we approach a "financial reckoning" for such behaviour, the "insatiable state" might consider the confiscation of private assets.

"Private property will not be protected by the state in a bankrupt blue (Democratic) America. Any blockchain under Washington's control is vulnerable. Fortunately, we have digital gold that is independent of the state and cannot be confiscated. Bitcoin maximalism will triumph. It will save us from state budgeting," believes the former CTO of Coinbase. Although he refrained from specifying when the "reckoning" would occur, he reminded that the inevitability of such a scenario had previously been mentioned by Ray Dalio, Elon Musk, Larry Fink, and Stanley Druckenmiller.

– Jamie Dimon, CEO of JPMorgan, has urged the US Federal Reserve to postpone cutting interest rates until June and shared his views on the first cryptocurrency, as reported by CNBC citing the businessman's speech at the Australian Financial Review summit. "I don't know what bitcoin is for, but just as with the right to smoke a cigarette, I'll support your right to buy bitcoin. Personally, however, I would never buy it," he stated, adding that the use of digital assets is often associated with illegal activities, including human trafficking, fraud, and terrorism.

– William Ackman, CEO of Pershing Square Capital, has attributed bitcoin mining as one of the causes for inflation increase and the fall of the US dollar. "The rise in bitcoin prices leads to an increase in mining and energy consumption, raising the latter's cost, thus causing inflation to rise and the dollar to decline. This stimulates demand for bitcoin, its mining, and energy consumption. The cycle continues, bitcoin goes into infinity, energy prices skyrocket, and the economy collapses," the billionaire described his scenario, adding that this relationship "works in reverse as well."

"Wondering if I should buy bitcoin in such a situation?" Ackman pondered, to which another billionaire, MicroStrategy founder Michael Saylor, replied, "You should buy some bitcoin, but not for the reasons mentioned above. Most bitcoin miners actually help to reduce the cost of electricity for other consumers, not the other way around. Let me know if you want to discuss this issue one-on-one," he wrote.

– Michael Saylor believes that bitcoin will "eat" gold in the future, becoming a more valuable asset because it possesses all the advantages of gold while being free from its disadvantages. Saylor pointed out that precious metal cannot be moved quickly, whereas bitcoin can be transferred to a new owner instantly.

The appearance of the first cryptocurrency in various investment products is a sign of the asset's future dominance, according to the MicroStrategy co-founder. The digital asset will also begin to take market share from other risky investment products, with Saylor naming the S&P 500 ETF fund as one of the potential "victims."

It is noteworthy that bitcoin, having risen above $72,000 per coin, surpassed silver in market capitalization on March 11, 2024. The first cryptocurrency moved to the eighth position in the ranking of the largest assets by this indicator, overcoming the $1.4 trillion mark.

– Pierre Rochard, Vice President of Research at his company, evaluated the US budget for 2025 proposed by Joe Biden's team. The researcher's conclusion is that the Democrats anticipate BTC reaching $250,000 within a decade: by 2034-2035. This is inferred from the taxes laid out by the White House in the budget. However, the expert clarified that there are no direct indications of this price in the budget. Conclusions are drawn based on the assessment of potential profits from taxes and the regulation of the cryptocurrency market.

Rochard draws another conclusion from the White House documents. According to his analysis, the mining industry in the US could experience exponential growth. This could be due to the active development of the US market and an excess of electrical energy, leading to a tenfold increase in this industry.

– Following the approval of spot bitcoin ETFs in the US earlier this year, demand for the flagship crypto asset significantly exceeded the daily supply of bitcoin mined by miners, and the halving scheduled for the third decade of April will only intensify this imbalance. As a result, many analysts believe that the price of bitcoin is in the early stages of a super-cycle, fuelled by institutional investors and issues in the global macroeconomy.

At the time of writing this overview, the maximum price of bitcoin was recorded at $73,556. Analysts at Matrixport are optimistic about the coin's global future. However, according to them, a risk-reward analysis suggests that the coin's quotes may soon adjust. "This bull market still has legs," Matrixport believes, "but the divergence between the decreasing RSI and high BTC prices may signal that bitcoin needs to consolidate before it can start increasing in price again."

Investor and founder of MN Trading, Michael Van De Poppe, believes that a market retracement of 20-30% is quite possible in the near future. He also noted that he expects a lot from altcoins, which have not yet reached record levels.

– Raoul Pal, the founder of investment firm Real Vision, has forecasted the targets BTC, ETH, and SOL could reach in the near future. He suggested that the target mark for bitcoin in the near term is $250,000 per coin. Moreover, the first cryptocurrency might exceed this projected level due to the high demand for spot bitcoin ETFs. The upcoming April halving is also expected to boost demand for this cryptocurrency.

Raoul Pal is also bullish on Ethereum, predicting its value could rise to between $17,000 and $20,000, thanks to the utility of smart contracts. Currently, ETH is trading around $4,000, but unlike bitcoin, it has yet to surpass its record: in November 2021, Ethereum reached a level of $4,856. The Real Vision founder believes that the altcoin's growth could be influenced by its strong correlation with bitcoin, anticipation of the launch of spot ETH ETFs, and the Dencun update.

Pal forecasts that the price of Solana could range from $700 to $1,000, as the blockchain's high performance will increase demand for this coin. In early November 2021, SOL reached its peak at $260, indicating the coin still has plenty of growth potential.

– Bernstein analysts believe that shares of mining companies remain the best proxy investments in bitcoin as the cryptocurrency moves towards a target mark of $150,000. In a note to clients, they point out that historically, miners' stock prices have almost always outperformed bitcoin in terms of growth rate during a bull market. As we are in the middle of the current cycle, every "weakness window" for miners of digital gold is, in experts' opinion, an opportunity to buy their shares.

Bernstein asserts that the segment is currently dominated by retail investors, while institutional investors mostly avoid "bitcoin-proxy" investments due to their ongoing scepticism towards cryptocurrencies. However, as the asset grows to new highs, analysts expect this category of investors' interest in miners' stocks to awaken, making them the primary beneficiaries of capital inflow.

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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