Dear Teroxx Community,
This week we experienced a market of digital assets, which showed a slight negative trend with low volatility.
Weekly overview
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Digital Asset News
The USA has reached its self-imposed debt ceiling of $31.4 trillion. US dollars and may now be facing bankruptcy. What does this development mean for Bitcoin (BTC) and the crypto market as a whole?
U.S. Treasury Secretary Janet Yellen, in light of the circumstances, has now strongly indicated that the debt ceiling must be relaxed by U.S. policymakers before June 1, otherwise the global power will face default, which would be felt first by U.S. Treasury bond investors, among others.
Bipartisan negotiations on the ceiling are already in full swing, but so far an agreement still seems a long way off. While the Democrats are calling for a non-binding increase, the Republicans want to tie this drastic measure to a number of conditions, first and foremost cuts in the national budget in order to be able to offset further debt.
The likely beneficiary of this imbalance will be established stores of value such as gold and bitcoin, because on the one hand, investors are likely to shift their money from risky investment products to these safer alternatives, and on the other hand, the market-leading cryptocurrency in particular is largely independent of further political decisions.
Demand for self-storage for Ethereum is growing, according to Jameson Lopp, co-founder and chief technology officer of bitcoin wallet provider Casa.
Speaking to Cointelegraph at the Bitcoin 2023 crypto conference, Lopp accordingly explains that Casa is increasingly offering support for Ethereum as more users of the second-largest cryptocurrency demand a self-storage service.
Incidents such as the FTX collapse in 2022 have raised awareness of the need for a secure way to store Ethereum and Ethereum-based tokens such as stablecoins, Lopp says:
“I’ve spoken to Casa customers who have suffered losses from the various collapses over the past year. Those who stored their bitcoin in Casa got off easy, but some of them still lost other things – including even stablecoins – because they had no way to store them in a decentralized cold storage system.”
This means that secure custody is coming into focus for users, and licensed products are rising in demand.
The international regulatory environment for cryptocurrencies is increasingly improving, which is why influential crypto investment platform Bakkt – which specializes in derivatives trading for institutional investors – is now also considering expanding into Europe.
Speaking to Cointelegraph reporter Sam Bourgi at the Bitcoin 2023 crypto conference, Bakkt head of product Dan O’Prey begins by noting that his platform has “borne a significant amount of the huge institutional interest” around bitcoin that has emerged over the past year, despite the collapse of major crypto exchange FTX and the resulting dislocation. However, he concedes:
“There was collateral damage and a lot of problems with companies and projects in this industry last year, which in turn dragged bitcoin down, even though those problems actually had nothing to do with it.”
The expansion into Europe is driven by perceptions of MiCA, which are largely positive.
Thought of the week
Low volatility, only minor market movements and slightly negative underlying tendencies in the market are fundamentals for a stable and sustainable support settlement. Volatile phases can only be created by “sideways phases”. A calming of the market and the “withdrawal” or liquidation of large leverage positions ensure a smoothing of the market before a new trend (positive or negative) can follow.
Digital Asset Markt
Bullish outlook: A positive market environment could see Bitcoin climb to ~$28,500.
Bearish outlook: Continued consolidation and negative global financial markets could take Bitcoin back to ~$25,000.
