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Peter Davis

An writer at FOMOdrive

  • Jun 19, 2023
  • 3 min read

Bitcoin enters top 3 assets amid US default risk

More than one million investors now possess at least one Bitcoin.

The risk of default in the US has caused Bitcoin to become one of the most sought-after assets.

For the past four weeks, there has been a decrease in investments in crypto funds.

US authorities are going to implement stringent regulations on cryptocurrency exchanges.

In the Russian Federation, the Federal Tax Service will be designated as the regulatory body for the cryptocurrency market.

Last week, investments in crypto funds dropped by $54 million, according to CoinShares. This marks the fourth consecutive week of outflows. Bitcoin investments decreased by $38 million, while Ethereum investments increased by a mere $0.1 million. Additionally, investments in funds that allow for shorting of bitcoin decreased by $10 million.

The most notable inflows of altcoins were Cardano ($0.5M), Tron ($0.23M) and Sandbox ($0.2M). BNB was the only altcoin with a $0.5 million outflow.

Glassnode has reported that the amount of investors with at least one Bitcoin has surpassed one million. One of the co-founders of Glassnode, Negentropic, believes that Bitcoin will continue to increase in value and reach $35,000, as the Federal Reserve is expected to halt the rate hike in June.

Samson Moe, CEO of JAN3, predicted that the popularity of Bitcoin Ordinals and BRC-20 tokens will diminish in a few months due to their overloading of the blockchain and resulting increase in transaction fees.

Kaiko has reported that the correlation between Bitcoin and Ethereum rates has dropped below 80%, the lowest level in the past year and a half. This decrease is attributed to the banking crisis in the United States, which has caused investors to shift their focus to more secure assets such as Bitcoin.

A Bloomberg study has revealed that Bitcoin has become one of the top three most desirable assets in the face of the potential for default in the US. 10% of American investors have indicated that they are looking to hedge their risks by investing in the first cryptocurrency. Gold and US government bonds took the first two spots.

The US Department of Justice has declared that it will be taking "strong action" against any illegal activities that occur on crypto exchanges, as reported by the Financial Times. The aim of the department is to prevent attackers from being able to "easily profit from their crimes and cash out money."

The US presidential administration has stated that approximately 50% of North Korea's missile program is financed by cyberattacks and the theft of cryptocurrencies. Chainalysis reported that North Korean hackers had stolen an estimated $1.7 billion worth of digital currencies in 2022.

LG Electronics, a tech giant from South Korea, is planning to submit a patent for a TV that will enable users to trade non-fungible tokens (NFTs) directly on the screen.

Alexei Moiseev, Deputy Finance Minister, has suggested that the Federal Tax Service could be appointed as the regulator of the cryptocurrency market in the Russian Federation.

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