Why a Bitcoin ETF approval would be a big deal

July 7, 2023 Coin Telegraph

Bitcoin ETFs are back in the spotlight after several companies filed with the SEC. This week’s episode of Market Talks discusses why approval would be a big deal for Bitcoin.

In this week’s episode of Market Talks, Cointelegraph welcomes Natalie Brunell, a podcast host, educator and media commentator in the Bitcoin space. Her podcast, Coin Stories, consistently ranks among the top 50 to 100 on Apple podcasts. She has over 300,000 Twitter followers, and is an award-winning TV journalist and former investigative reporter.

Brunell explains how Bitcoin (BTC) is a tool for the financial empowerment of billions of people worldwide and how the depreciating United States dollar is stripping away people’s economic dignity.

The elephant in the room when discussing Bitcoin with someone new to the crypto space is its volatility and risk factor. Brunell describes how to overcome this, and how to explain that Bitcoin might be better than traditional assets, including stocks and real estate.

Brunell offers her take on institutions turning back toward crypto amid multiple spot Bitcoin exchange-traded fund (ETF) filings — despite their love/hate relationship with the sector. Brunell wonders if institutions just want a piece of the pie now that crypto is being taken seriously as an asset class. She also gives her sense of how people feel about the Bitcoin ETF, and why the U.S. Securities and Exchange Commission might lean toward approval.

Brunell talks about her roots and backstory, describing what it was like growing up under communism, and how her parent’s struggles motivated her to search for something like Bitcoin long before it existed.

For aspiring content creators, Brunell explains how she found success doing it. She also gave tips on making a name for yourself and finding your voice in the crowded content creation space.

Market Talks airs every Thursday, featuring interviews with some of the most influential and inspiring people from the crypto and blockchain industry. So, head over to the Cointelegraph Markets & Research YouTube page, smash those “Like” and “Subscribe” buttons for all future videos and updates, and check out the conversation with Brunell.

Crypto mass adoption is coming, but how fast?

June 30, 2023 Coin Telegraph

Bitcoin Analysis

The latest Cointelegraph Report assesses the current growth rate of global cryptocurrency usage and tries to predict when crypto will reach mass adoption.

Cryptocurrencies must reach mass adoption to unlock their maximum potential as a network technology and their value as financial assets.

As with other technologies, the adoption of crypto follows a classic bell curve: Starting from a small number of innovators, it grows as early adopters embrace it, moving into mass adoption as it expands to the early and late majority. Finally, it reaches those lagging behind in its final phase.

Since its launch 14 years ago, Bitcoin’s (BTC) adoption has dramatically increased. The cryptocurrency has gone from being a fringe technology discussed by a small group of cypherpunks and nerds to being known worldwide, with some nation-states even adopting it as legal tender.

According to most estimates, though, crypto’s global adoption rate is still in the single digits, which means it still remains in the “early majority” phase of global adoption.

To grow further and reach true mass adoption, crypto will need to overcome the “chasm” — the gap separating the early adopters from the early majority. To do so, certain catalysts may be required.

What are those catalysts, and how far is crypto from reaching mass adoption? To find out, don’t miss the latest Cointelegraph Report on YouTube, and don’t forget to subscribe!

Bitcoin breaks $30,000 and is the center of attention again!

June 22, 2023 Coin Telegraph

Bitcoin breaks ,000 and is the center of attention again!

Bitcoin Analysis

Bitcoin touches $30,000 and is back on everyone’s radar. Find out what is driving the price forward on this week’s episode of Market Talks.

In this week’s episode of Market Talks, Cointelegraph welcomes Mati Greenspan, founder and CEO of Quantum Economics. Greenspan is an experienced financial analyst and a certified consultant who enjoys engaging with his 50,000+ Twitter followers about the latest developments in the cryptocurrency sector. He finds his passion in understanding financial markets and sharing his knowledge with others to help them make better investment decisions.

In today’s discussion, we first find out what Greenspan has been up to since we last had him on the channel — more than five years ago. We also get some insights into his company, Quantum Economics, what they do, their team, and what their vision is.

Without wasting any time, Greenspan dives into some of this hot takes by claiming that we are already in the next “Bitcoin summer” and that prices are just going to go up from here. He shows us his reasoning by going over some Bitcoin (BTC) charts, particularly the Bitcoin dominance chart, and taking us through his thought process.

With everything happening in the markets right now, both in the crypto and stock markets, we ask Greenspan what the most important things happening at the moment are capturing his attention and why. He explains to us why he finds the correlation between the stock market and Bitcoin so interesting and what he thinks that means for the future price of the asset.

There could be a number of reasons why the price of Bitcoin has been going up recently. We ask Greenspan what he thinks is the catalyst behind the recent pump all the way up to $30,000. Does it have anything to do with BlackRock and Fidelity putting more money into Bitcoin?

Next, we discuss what is pushing Bitcoin adoption, especially in developing economies. What benefits does Bitcoin offer that the traditional financial system cannot or chooses not to offer?

Greenspan also explains to us why stocks are in a bull market at the moment in light of the current macroeconomic environment — especially with interest rates and inflation so high. He also reveals why he only keeps less than $1,000 in his bank account and why he is solely focused on Bitcoin.

A lot has been said about Ordinals on the Bitcoin network, with some people being for it because it adds to the function of Bitcoin and the network, while others have opposed it, as it takes away from Bitcoin’s primary reason for existence. Greenspan explains where he stands on the topic as he takes us through some graphs and charts to explain his point of view.

We cover all of this and more, so make sure to stay tuned until the end. Market Talks airs every Thursday, featuring interviews with some of the most influential and inspiring people from the crypto and blockchain industry. So, head on over to Cointelegraph Markets & Research’s YouTube page and smash those “Like” and “Subscribe” buttons for all our future videos and updates.

Bitcoin’s next rally may be imminent, on-chain analyst says

May 30, 2023 Coin Telegraph

Bitcoin Analysis

On-chain data shows that an imminent Bitcoin rally could drive its price up to $32,000, says Glassnode lead analyst James Check.

After a long period of unusually low volatility, Bitcoin’s (BTC) next major price move is likely imminent and could drive BTC to $32,000, according to James Check, lead on-chain analyst at Glassnode. That price level is where Bitcoin’s “true cost basis is sitting,” Check explained in an exclusive interview with Cointelegraph.

To calculate Bitcoin’s average cost basis — the average price at which BTC was bought — Check and his team removed coins that are lost forever from the calculation and focused on active Bitcoin investors.

“It’s where the mean reversion level would be, so a rally to that level, to be honest, wouldn’t surprise me,” he said.

Despite this bullish scenario, Check also pointed out that a large number of investors are likely tired of the bear market and waiting for Bitcoin to reach that level before selling, thus putting pressure on the price.

“That's an area where you start getting more resistance,” he stated.

To find out more about the chances of an upcoming Bitcoin rally, check the full interview on our YouTube channel — and don’t forget to subscribe!

Ordinals and BRC-20 will disappear in a matter of months, JAN3 CEO says

May 13, 2023 Coin Telegraph

Bitcoin Analysis

The hype around Bitcoin Ordinals and BRC-20 tokens is unsustainable and will fade away in a matter of months, according to JAN3 CEO Samson Mow.

The latest hype around Bitcoin (BTC) Ordinals and BRC-20 tokens is unsustainable and will fade away in a matter of months, according to JAN3 CEO Samson Mow.

“These guys are basically paying massive amounts of fees that go directly to Bitcoin miners, and there is no way this can be sustained," Mow said in an exclusive interview with Cointelegraph.

"They will fade away after even months, let's not talk about years here," he continued.

Growing activity around Ordinals and BRC-20 – a crypto technology that allows users to mint fungible and non-fungible tokens on the Bitcoin blockchain – is the main cause provoking a spike in transaction fees, which resulted in the congestion of the Bitcoin network.

While many members of the Bitcoin community see Ordinals as a use-case that could boost Bitcoin adoption, Mow considers them just as spam clogging the network.

"These are just short-term money grabs similar to most things on competing chains like Ethereum and Solana," he pointed out.

To Mow, mass adoption of Bitcoin will happen because of its use case as a saving technology and as a means of exchange, not because of “people minting JPEGs and sticking them in the chain.”

To learn more about Mow's argument against Ordinals, watch the full interview on our YouTube channel. Don’t forget to subscribe!

Magazine: $3.4B of Bitcoin in a popcorn tin — The Silk Road hacker’s story

How will lower interest rates benefit Bitcoin?

May 12, 2023 Coin Telegraph

Argentina

Cointelegraph analyst and writer Marcel Pechman explains how lowering the interest rates in the U.S. will ultimately benefit Bitcoin and the cryptocurrency market.

Macro Markets, hosted by crypto analyst Marcel Pechman, airs every Friday on the Cointelegraph Markets & Research YouTube channel and explains complex concepts in layperson’s terms, focusing on the cause and effect of traditional financial events on day-to-day crypto activity.

Today’s show starts by discussing the economic crisis in Argentina, a Latin American country that is experiencing hyperinflation. After years of populist measures, its local currency, the peso, saw its value go down by 70% in two years. The government’s overspending caused another issue: a lack of United States dollars for the government and companies to pay for imports and remittances. But what does that mean for the U.S. dollar, Bitcoin (BTC) and gold?

According to Pechman, gold poses serious problems, as there is no easy way to ensure whether or not the precious metal is fake, and it doesn’t actually work for remittances. Therefore, dollars and euros are the preferred means of savings and exchange for those facing a weak domestic currency.

Pechman proceeds to explain how fintechs’ costs and government control limit their potential in Argentina, and why stablecoins are the preferred vehicle for remittances. On the other hand, the analyst shows why cryptocurrencies fail to attract people in those fragile economies, including El Salvador.

The next segment of Macro Markets focuses on the Federal Deposit Insurance Corporation (FDIC). Reuters reported that the 113 biggest banks in the U.S. will have to cover the recent FDIC loss of $16 billion caused by saving failed financial institutions. Consequently, there’s a cascading effect as the remaining institutions are obligated to cover the losses. Pechman mentions how the Federal Reserve will eventually reduce interest rates and benefit risk-on assets, including Bitcoin.

If you are looking for exclusive and valuable content provided by leading crypto analysts and experts, make sure to subscribe to the Cointelegraph Markets & Research YouTube channel. Join us at Macro Markets every Friday.

PacWest Bank plummets 50%! How will Bitcoin react?

May 5, 2023 Coin Telegraph

Banking

Cointelegraph analyst and writer Marcel Pechman explains how PacWest’s plummeting share price and the continued banking crisis could impact Bitcoin.

PacWest Bancorp’s 50% price decline and the ongoing banking crisis are the first topics of this week’s show. The bank holds $40 billion in assets, although 80% of its lending portfolio has been assigned to commercial real estate loans and residential mortgages. The issue? As usual, rising interest rates. Meanwhile, the total underwater bond position of United States banks is $600 billion, not including derivatives.

However, the U.S. Treasury has been bailing out every one of the latest three bankruptcies: Silicon Valley Bank (SVB), Signature Bank and First Republic. SVB’s losses are estimated at $20 billion, or 15% of the total Federal Deposit Insurance Corporation (FDIC) capacity.

Pechman explains how Bitcoin’s (BTC) price should react in case PacWest Bancorp fails and why gold has recently flirted with its all-time high above $2,050. More importantly, how the banking crisis impacts government debt, which is spiraling out of control — consequently, extremely positive for Bitcoin in the long run.

The next concluding segment of Macro Markets focuses on oil prices, as the energy commodity traded down 17.5% in three weeks. Pechman shows how the Organization of the Petroleum Exporting Countries (OPEC) doesn’t really control production and how the U.S. government played a key role in diminishing the demand for oil imports.

According to Pechman, the biggest take for Bitcoin is the potential oil demand flatline due to weaker economic conditions, which can be deemed a short-term negative driver for risk assets, including cryptocurrencies.

Bitcoin price jumps in the wake of First Republic Bank crash

April 26, 2023 Coin Telegraph

Bank of America

The price of Bitcoin has bounced upwards as First Republic Bank deposit slump sparks fresh banking crisis fears in the United States.

The price of Bitcoin (BTC) spiked more than 3% in the last 24 hours as fears were sparked of another possible imminent bank failure as First Republic Bank (FRC) shares closed down more than 50% on April 25.

According to the Head of Research at Australian crypto education platform Collective Shift, the price of Bitcoin rallied immediately following Fox News Business Reporter Charles Gasperino breaking the news that bankers working with First Republic Bank expect the institution to go into government receivership.

#Bitcoin $BTC is up 2.4% in the last 90 minutes after @CGasparino breaks the news that bankers working with First Republic Bank $FRB "expect eventual govt receivership."

Price was $27,500 at the time of the tweet and is now $28,150. pic.twitter.com/aSjzFXiip6
— Matt Willemsen (@matt_willemsen) April 25, 2023

Receivership is a tactic allowing creditors to recover funds that are experiencing a potential default and assists troubled firms in avoiding bankruptcy.

Data from crypto analytics firm Santiment suggested the correlation between Bitcoin and the S&P500 may be dwindling as the narrative that Bitcoin is a safe haven amid the banking crisis began to once again gather steam.

Just minutes after US stock markets winded down their rough day, #crypto has had signs of life. With $BTC pushing for $28.5k & $ETH closing in on $1,900, these surges without reliance on the #SP500 are ideal for the market's independent sustainability. https://t.co/0XeNVf9Vaz pic.twitter.com/KeJ1408UiN
— Santiment (@santimentfeed) April 25, 2023

First Republic began experiencing issues in early March which led to 11 of the largest banking institutions in the United States, including J.P. Morgan and Bank of America Corp., depositing $30 billion at the troubled bank.

On March 26, Bloomberg reported that U.S. authorities were looking at creating an emergency lending facility to assist the bank in shoring up its ”structural challenges” with its balance sheet.

According to anonymous sources at the time, despite First Republic staring down the barrel of liquidity concerns, U.S. officials declared the bank’s deposits were “stabilizing,” and it was not at risk of experiencing “the kind of sudden, severe run” that led regulators to close down Silicon Valley Bank.

Unfortunately, these reassurances have proved incorrect.

On Monday, April 23, First Republic reported in its first quarter earnings call that total deposits had plummeted more than $100 billion and it would be “pursuing strategic options” to strengthen its financial standing as quickly as possible.

First Republic Bank’s Q1 2023 earnings. Source: First Republic Bank

While the bank is yet to clarify exactly what these strategic options are, the earnings report highlighted that the embattled firm plans to downsize its balance sheet and cut expenses by slashing executive salaries, slimming down on office leases and laying off an expected 20% to 25% of its employees in Q2.

The banking crisis has taken a heavy toll on financial institutions in the U.S. over the course of this year. On March 8, Silvergate Bank announced that it would be closing its doors after experiencing a run on deposits.

Two days later on March 10, Silicon Valley Investment Bank was shut down by the California Department of Financial Protection.

Despite the turmoil, U.S. Treasury Secretary Janet Yellen has reiterated that the American banking sector remains robust and stable. “Our banking system remains sound, with strong capital and liquidity positions,” Yellen stated in remarks from the Financial Stability Oversight Council (FSOC) Council Meeting on April 21.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Could Bitcoin be part of the $120T mutual fund industry?

April 21, 2023 Coin Telegraph

Could Bitcoin be part of the 0T mutual fund industry?

Bitcoin Analysis

Cointelegraph analyst and writer Marcel Pechman explains how Bitcoin could become a part of the $120-trillion mutual fund industry.

The show Macro Markets, hosted by crypto analyst Marcel Pechman, which airs every Friday on the Cointelegraph Markets & Research YouTube channel, explains complex concepts in layman’s terms and focuses on the cause and effect of traditional financial events on day-to-day crypto activity.

This week’s show starts by discussing the mutual fund industry, including the well-known BlackRock, Fidelity and Vanguard, and how the top 15 asset managers handle over $54 trillion. Can you believe it? That money could buy all the companies listed in the S&P 500 Index, plus all the gold, fiat bills and coins in circulation on the planet.

Pechman explains how the $120 trillion managed by these mutual funds relies heavily on fixed income and why it remains their top bet despite paying below inflation for the past three years. Moreover, the show discusses how passive investment strategies might catapult Bitcoin (BTC) into a whole other sphere, instantly gaining adoption among institutional investors.

The next segment of Macro Markets answers a question from “Film City,” who posed a question in last week’s YouTube video comments. Pechman explains why the 40-year low unemployment rate in the United States is not necessarily bullish for risky investments. On the other hand, the analyst illustrates how an increase in the unemployment rate, especially above 10%, is certainly detrimental to cryptocurrencies.

The show concludes by examining the U.S. credit default swap (CDS) rates, which recently reached an 11-year high. Those insurance instruments activate if the debt issuer fails to honor their payments — in this case, the U.S. government Treasury. Pechman explains why the U.S. CDS is not worrisome at the moment and how one should analyze specific risks to the U.S. dollar currency.

Bitcoin likely to outperform all crypto assets following banking crisis, analyst explains

March 24, 2023 Coin Telegraph

Banking

The banking crisis is a catalyst for the next crypto bull run, in which Bitcoin will likely outperform all crypto assets, says Bloomberg analyst Mike McGlone.

The banking crisis could be the spark that will kick off the next crypto bull run, in which Bitcoin (BTC) is likely to outperform all other cryptos, according to Mike McGlone, the senior commodity strategist at Bloomberg Intelligence.

Following the collapse of major banks such as Silicon Valley Bank and Credit Suisse, confidence in traditional financial institutions is being shaken and Bitcoin is becoming more attractive as a “hedge against banking risk,” thinks McGlone.

According to McGlone, the United States Federal Reserve's unwillingness to ease monetary policy despite the banking crisis is driving the U.S. economy into a recession.

This macro environment will ultimately favor Bitcoin, which is going to outperform all other cryptocurrencies.

"The more the Bitcoin can sustain above $25,000, then the more the S&P 500 potentially pressures below 4,000, you're going to have an indication that Bitcoin is going to take off," McGlone pointed out. "I think Bitcoin will outperform virtually all cryptos, including Ethereum," he concluded.

To find out how the banking meltdown is sparking the next Bitcoin bull market, watch the full interview on our YouTube channel, and don’t forget to subscribe!

Bitcoin Analysis

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