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Peter Davis

An writer at FOMOdrive

  • Jun 19, 2023
  • 3 min read

Bloomberg: Bitcoin will crash in case of US default

Crypto investors with large amounts of Bitcoin are continuing to add to their holdings.

It is expected that the crypto market will pick up again starting in mid-June.

Up to 15% of profits from Tether will be used to purchase Bitcoin.

The BTC network will be prevented from becoming congested by the update.

An important court decision caused the XRP token to surge.

Santiment has observed that large Bitcoin holders have been hoarding BTC over the past five weeks, with their holdings increasing by a total of 85,000 BTC ($2.3 billion). This suggests that Bitcoin is currently in a period of consolidation before a potential surge in price. The last time this accumulation phase occurred, the Bitcoin rate rose by 34% in January.

Mark Yusko, the CEO of Morgan Creek Capital, an investment company, declared that the crypto market rally will resume in mid-June. However, he noted that "we need good news to give the market a new boost" in order for this to happen.

Mike McGlone, senior strategist at Bloomberg Intelligence, has warned that stocks and crypto markets could suffer a collapse if the US defaults. Despite his bearish outlook on cryptocurrencies, he is optimistic about gold.

Lightning Labs has unveiled the Taproot Assets Protocol v 0.2 update, which will prevent potential delays in transaction processing caused by bitcoin network congestion. This update was developed by the creators of the Lightning Network.

Gary Gensler, the head of the US Securities and Exchange Commission (SEC), stated that the operations of crypto companies are based on disregarding regulations. Although there are already regulations in place for token issuers and crypto exchanges, they are not willing to abide by them.

The UK Parliament has proposed to classify cryptocurrencies as gambling due to the potential for fraud and money laundering. This poses a great risk to both consumers and the economy.

The court denied the SEC's plea to keep documents connected to a speech given by ex-SEC official William Hinman on the condition of Ethereum private. These materials could influence the court's ruling in the SEC's lawsuit against Ripple. As a result, the XRP token rose by 5%.

Tether, the issuer of the world's largest stablecoin, has decided to invest up to 15% of its net profits in Bitcoin each month in order to diversify its reserves. The company has already invested $1.5 billion in BTC, while the majority of USDT collateral remains held in short-term US Treasuries.

A Bloomberg study revealed that only 31 out of the top 60 crypto companies had either passed an external financial audit or confirmed the existence of reserves. Many auditors, however, are either unwilling to work with crypto companies or lack the necessary expertise and experience in this field.

A study conducted by the Global Financial Markets Association (GFMA) has revealed that the implementation of blockchain technology in the traditional financial sector could save up to $120 billion annually for industry participants.

In light of financial and political instability in Pakistan, the authorities are taking steps to completely prohibit the circulation of cryptocurrencies. This ban is intended to be a major tool in the fight against money laundering and terrorist financing.

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