This is an opinion editorial by Anthony Feliciano, a Bitcoin event organizer and contributor to Bitcoin Magazine.

On Wednesday, June 15, 2022, the Federal Reserve announced a 75 basis point hike to interest rates and possibly another 75 basis point hike in July. Friday, June 17, bitcoin saw a massive sell-off along with the rest of the crypto markets, shedding billions in total market capitalization. A first for bitcoin happened as well we dipped below the previous cycle's all-time high of $19,756. Bitcoin dipped to ~$17,000, not once but twice, before rebounding to $20,000 levels by Sunday. This had many people talking about the R word for the economy and another crypto winter like that which occurred from January 2018 to December 2020.

Not all bear markets are the same.

I say not all bear markets are the same because we are presented with an unique opportunity. During the last crypto winter, I took a different approach when it came to Bitcoin I went down the rabbit hole. Now if you are just an investor in bitcoin and looking to make money, then yes, you don't like these times. I would suspect there is a very high percentage that is more of the investor than going down the rabbit hole. For those who are peering over the edge looking into the rabbit hole, if we truly get another crypto winter then this bear market is the time to fall into the rabbit hole.

A little over four years ago, I fell into the rabbit hole. My god, what a bumpy, rocky, uneven descent it was into Bitcoin projects. The projects you hear and see today are far different to what we had in 2017 and 2018. Now if you, like me, aren't a coder, and your eyes glaze over looking at the blinking cursor in the terminal, then you probably would have turned around, climbed out and kicked all the dirt back into the hole. Despite not being a coder, I decided to stick it out anyway; a glutton for punishment, I guess, but grateful that I decided to keep going and smoothing those bumps down into smoother, more manageable pathways.

I first decided that I was going to start by making my own Lightning Network (LN) node a few years back. I give a brief overview of a few projects in the article I previously wrote, DIY Bitcoin Nodes. I chose RaspiBlitz as my node, for no particular reason versus other projects I just picked one and decided to build. With a plethora of options inside the RaspiBlitz suite, I learned a lot about Electrum, how to run it properly connected to your own node versus public nodes, and JoinMarket to enhance my privacy when moving around UTXOs between wallets.

Then came an obsession with privacy, in particular smartphones. I used to root my cell phones back in the early 2010s, ran a lot of custom ROMs again I am no coder, so I bricked a few phones in the process. This led to learning about a de-Google phone project called GrapheneOS, so I now have a backup phone that has no sim, was never registered and has been de-Googled. But what is key is that I am able to download many Bitcoin project APK files to this device while still managing to have a working UI that connects with my LN node over Tor. Think of it as a bug out phone, with none of the spyware and all the abilities to interact with your LN node and Bitcoin network.

Now we come to where I am at today, trying to help onboard merchants to accept bitcoin as payments, which is a different type of struggle in its own right. Imagine walking in cold to a brick-and-mortar store and talking to the owner about the ability to accept bitcoin payments, after the last two years of stress they had to deal with. You get the picture. Again, I worked through it, which led to this taking place back in January 2022: the First Successful CryptoBeerKings LN Event.

Even if we are about to enter a recession and/or another crypto winter, there is one thing I learned that doesn't stop: development. Developers are going to continue to develop for the Bitcoin network no matter what. If they didn't stop in 2018, they are certainly not going to stop in 2022. If you are a burgeoning developer yourself, then this is an even better time for you than last cycle, because the coding and tools have become more refined. If you find yourself on the other side of the coin like myself, then applications are the way to go. Take some time to learn about some of the projects out there and how to use them in your everyday Bitcoin rabbit hole life. This is an opportune time to hone your craft, no matter your skill level or what interests you the most. If you can listen to the Bitcoin ethos and fade the noise, I guarantee by the time the next cycle comes about, you will come out of your rabbit hole bright-eyed and ready.

This is a guest post by Anthony Feliciano. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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Not All Bitcoin Bear Markets Are The Same - Bitcoin Magazine

Morocco is joining the list of countries aiming to formally control the crypto sector by reportedly working on a final regulatory framework to guide the market.

The countrys central bank, Bank Al-Maghrib (BAM), is designing a crypto regulation outlook in consultation with a global financial institution, Bitcoin News reported on June 27.

According to BAMs governor Abdellatif Jouahri the institution has engaged with the International Monetary Fund (IMF) and the World Bank on specific benchmarks.

Notably, the IMF has been central in calling on countries to regulate the crypto sector while issuing warnings on the dangers of legalizing assets like Bitcoin. For instance, the institution has urged El Salvador to drop Bitcoin as legal tender stating that the move threatens the countrys economy.

Initial hints indicate that the regulation will likely not ban cryptocurrencies but will seek to promote innovation in the sector while protecting consumers. Some of the pain points Morocco seeks to address will be money laundering and anti-terrorism financing.

Previously, BAMs governor Abdul Latif Al Jawhari had noted that adopting cryptocurrencies in the country was a matter of when not if.

Currently, we cannot adopt cryptocurrencies given the lack of regulatory and legislative frameworks both nationally and internationally. The G20 and many countries stress the importance of having a crypto regulatory framework as well as a regulatory framework for CBDCs (Central Bank Digital Currencies), said Jawhari.

In a recent press release, BAM acknowledged that the countrys cryptocurrency sector is increasingly popular. However, the bank has maintained that users must be cautious of the risks associated with the sector.

Interestingly, the country banned Bitcoin trading in 2017, but the assets popularity has grown with the general increase in value in recent years. The popularity meant that the government could no longer ignore the growing prominence.

As of 2021, the country reportedly ranked fourth behind Nigeria, South Africa, and Kenya in crypto trading volume across Africa.

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Central Bank of Morocco to introduce Bitcoin and crypto regulation bill - Finbold - Finance in Bold

Bitcoin rallied to a record high of nearly $69,000 at the height of the 2021 crypto frenzy. In 2022, it's moved in the opposite direction.

Nurphoto | Getty Images

Prominent crypto hedge fund Three Arrows Capital has defaulted on a loan worth more than $670 million. Digital asset brokerage Voyager Digital issued a notice on Monday morning, stating that the fund failed to repay a loan of $350 million in the U.S. dollar-pegged stablecoin, USDC, and 15,250 bitcoin, worth about $323 million at today's prices.

3AC's solvency crunch comes after weeks of turmoil in the crypto market, which has erased hundreds of billions of dollars in value. Bitcoin and ether are both trading slightly lower in the last 24 hours, though well off their all-time highs. Meanwhile, the overall crypto market cap sits at about $950 billion, down from around $3 trillion at its peak in Nov. 2021.

Voyager said it intends to pursue recovery from 3AC (Three Arrows Capital). In the interim, the broker emphasized that the platform continues to operate and fulfill customer orders and withdrawals. That assurance is likely an attempt to contain fear of contagion through the wider crypto ecosystem.

"We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands," said Voyager CEOStephen Ehrlich.

As ofFriday, Voyager said it had approximately$137 millionin U.S. dollars and owned crypto assets. The company also noted that it has access to a $200 million cash and USDC revolver, as well as a 15,000 bitcoin ($318 million) revolver from Alameda Ventures.

Last week, Alameda (FTX founder Sam Bankman-Fried's quantitative trading firm) committed $500 million in financing to Voyager Digital, a crypto brokerage. Voyager has already pulled $75 million from that line of credit.

"The default of 3AC does not cause a default in the agreement with Alameda," the statement said.

CNBC did not immediately receive a comment from 3AC.

Three Arrows Capital was established in 2012 by Zhu Su and Kyle Davies.

Zhu is known for his incredibly bullish view of bitcoin. He said last year the world's largest cryptocurrency could be worth $2.5 million per coin. But in May this year, as the crypto marketbegan its meltdown, Zhu said on Twitter that his "supercycle price thesis was regrettably wrong."

The onset of a new so-called "crypto winter" hashurt digital currency projects and companies across the board.

Three Arrow Capital's problems appeared to begin earlier this month after Zhu tweeted a rather cryptic message that the company is "in the process of communicating with relevant parties" and is "fully committed to working this out."

There was no follow-up about what the specific issues were.

But theFinancial Timesreported after the tweet that U.S.-based crypto lendersBlockFiand Genesis liquidated some of 3AC's positions, citing people familiar with the matter. 3AC had borrowed from BlockFi but was unable to meet the margin call.

A margin call is a situation in which an investor has to commit more funds to avoid losses on a trade made with borrowed cash.

Then theso-called algorithmic stablecoin terraUSDand itssister token luna collapsed.

3AC had exposure to Luna and suffered losses.

"The Terra-Luna situation caught us very much off guard,"3AC co-founder Davies told theWall Street Journalin an interview earlier this month.

Three Arrows Capital is still facing a credit crunch exacerbated by the continued pressure on cryptocurrency prices.Bitcoinhovered around the $21,000 level on Monday and is down about 53% this year.

Meanwhile, the U.S. Federal Reserve has signaled further interest rate hikes in a bid to control rampant inflation, which has taken the steam out of riskier assets.

3AC, which is one of the biggest crypto-focused hedge funds, has borrowed large sums of money from various companies and invested across a number of different digital asset projects. That has sparked fears of further contagion across the industry.

"The issue is that the value of their [3AC's] assets as well has declined massively with the market, so all in all, not good signs," Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, told CNBC.

"What's to be seen is whether there are any large, remaining players that had exposure to them, which could cause further contagion."

Already, a number of crypto firms are facing liquidity crises because of the market slump. This month, lending firm Celsius, which promised users super high yields for depositing their digital currency, paused withdrawals for customers, citing "extreme market conditions."

Another crypto lender, Babel Finance, said this month that it is "facing unusual liquidity pressures" and halted withdrawals.

CNBC's Ryan Browne contributed to this report.

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One of the most prominent crypto hedge funds just defaulted on a $670 million loan - CNBC

A Shark Tank investor is laying out what he thinks must happen for Bitcoin (BTC) to take off as the better version of gold.

In a new interview with the Bankless podcast, billionaire Mark Cuban says BTC faces a problem of relative lack of utility and resulting lack of mainstream popularity.

Part of the challenge for Bitcoin is, even with the Lightning Network, improving and becoming more popular. Theres not enough utility, but thats the same problem gold has. Nobody needs gold jewelry. People like gold jewelry and want it, but they dont need it. So theres a utility issue with Bitcoin but, that said, like gold, its a good store of value.

The billionaire then explains why he keeps BTC in his portfolio and what he thinks is bound to push Bitcoin to new highs.

Its a better store of value when youre trying to be diverse in your portfolio, and thats why I own it. Because I think even though I have no idea where itll go, I have no idea how low it will go, but I do know that once there are applications with smart contracts not on Bitcoin but across crypto that regular people use and figure out, just like streaming was a better version of getting audio and video than traditional media was when theres better reason to use crypto applications, thats when it takes off.

Cuban also says Bitcoin works as a type of digital gold.

I always analogize Bitcoin as its a better version of gold. Its a digital version of gold and I truly believe that.

I

Featured Image: Shutterstock/Sergey Nivens/Nikelser Kate

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Billionaire Mark Cuban Reveals Reason He Owns Bitcoin, Names Catalyst That Will Push BTC to New Heights - The Daily Hodl

The Bank of International Settlements (BIS), the global body for central banks, claims the weaknesses in crypto that were pointed out before have pretty much materialized. BIS General Manager Agustin Carstens opined: You just cannot defy gravity At some point, you really have to face the music.

The Bank of International Settlements (BIS) has warned that a perceived danger of decentralized digital money is materializing.

The BIS explained in its Annual Economic Report, published Tuesday, that the crypto market sell-off and the collapse of cryptocurrency terra (LUNA) and algorithmic stablecoin terrausd (UST) are indicators of a structural problem in crypto.

Structural flaws make the crypto universe unsuitable as the basis for a monetary system: it lacks a stable nominal anchor, while limits to its scalability result in fragmentation. Contrary to the decentralisation narrative, crypto often relies on unregulated intermediaries that pose financial risks, the BIS report reads.

Agustin Carstens, the BIS general manager, said in an interview with Reuters Tuesday that any form of money ultimately lacks credibility without a government-backed authority that can use reserves funded by taxes. He opined:

I think all these weaknesses that were pointed out before have pretty much materialized.

The BIS executive continued: You just cannot defy gravity At some point, you really have to face the music.

Carstens does not believe that the crypto market meltdown will cause a systemic crisis in the way that bad loans triggered the global financial crash. He detailed:

Based on what we know, it should be quite manageable. But, there are a lot of things that we dont know.

The BIS executive proceeded to talk about central bank digital currencies (CBDCs). In a report published in May, the BIS said that nine out of 10 central banks worldwide are exploring their own digital currencies.

This is a topic that has been on the G20 agenda for quite some time, Carstens further told the news outlet, adding that there is a good chance for this to move forward. He pointed out that some countries have already conducted real life trials with their central bank digital currency.

Carstens believes there will be international standards for CBDCs in the next couple of years, noting that 12 months is probably too short.

This week, the BIS Innovation Hub announced that its Eurosystem Centre projects will explore cryptocurrency markets. Citing that The collapse of many stablecoins and decentralized finance (defi) lending platforms has highlighted the difficulty in assessing their risks and economic potential, the BIS described: The projects goal is to create an open-source market intelligence platform to shed light on market capitalizations, economic activity, and risks to financial stability.

What do you think about the comments by BIS General Manager Agustin Carstens? Let us know in the comments section below.

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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BIS Says Crypto Weaknesses Have Materialized Following Market Sell-Off Featured Bitcoin News - Bitcoin News

Like clockwork, the onset of a crypto bear market has brought out the Bitcoinis dead crowd who gleefully proclaim the end of the largest cryptocurrency by market capitalization.

The past few months have indeed been painful for investors, and the price of Bitcoin (BTC)has fallen to a new 2022 low at$17,600, but the latest calls for the assets demise are likely to suffer the same fate as the previous 452 predictions calling for its death.

Resolute Bitcoiners have a bag full of tricks and on-chain metricsthey use to determine when BTC is in a buy zone, and now is the time to take a closer look at them. Lets see what time-tested metrics say about Bitcoins current price action and whether the 2021 bull market was BTCs last hurrah.

One metric that has historically functioned as a solid level of support for Bitcoin is its 200-week moving average (MA), as shown in the following chart posted by market analyst Rekt Capital.

As shown in the area highlighted by the green circles, the lows established in previous bear markets have happened in areas near the 200-MA, which has effectively performed as a major support level.

Most times, BTC price has had a tendency to briefly wick below this metric and then slowly work its way back above the 200-MA to start a new uptrend.

Currently, BTC price is trading right at its 200-week MA after briefly dipping below the metric during the sell-off on June 14. While a move lower is possible, history suggests that the price will not fall too far below this level for an extended period.

Along with the support provided by the 200-week MA, there are also several notable price levels from Bitcoins past that should now function as support should the price continue to slide lower.

The last time the price of BTC traded below $24,000 was in December 2020, when $21,900 acted as a support level that Bitcoin bounced off of prior to its run-up to $41,000.

Should support at $20,000 fail to hold, the next support levels are found near $19,900 and $16,500, as shown on the chart above.

Related: Too early to say Bitcoin price has reclaimed key bear market support Analysis

One final metric that suggests BTC may be approaching an optimal accumulation phase is the market-value-to-realized-value ratio (MVRV), which currently sits at 0.969.

As shown on the chart above, the MVRV score for Bitcoin has spent most of the time over the past four years above a value of 1, excluding two brief periods that coincided with bearish market conditions.

The brief dip that took place in March 2020 saw the MVRV score hit a low of 0.85 and remain below 1 for a period of roughly seven days, while the bear market of 2018 to 2019 saw the metric hit a low of 0.6992 and spent a total of 133 days below a value of 1.

While the data does not deny that BTC could see further price downside, it also suggests that the worst of the pullback has already taken place and that it is unlikely that the current extreme lows will persist for the long term.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Bitcoin critics say BTC price is going to $0 this time, but these 3 signals suggest otherwise - Cointelegraph

The chief investment officer of global fixed income at Blackrock, the worlds largest asset manager, says bitcoin and crypto are durable assets. I think theres a healthy recalibration going on, he said, noting that if you look two to three years hence, they will be higher than today.

Rick Rieder, chief investment officer (CIO) of global fixed income at Blackrock, shared his view on bitcoin and cryptocurrency in an interview with Yahoo Finance Live on Thursday. Blackrock is the worlds largest asset manager with about $10 trillion in assets under management (AUM).

Rieder was asked how the crypto market is going to react as the Federal Reserve begins tightening aggressively. The Fed hiked its benchmark rate by 75 basis points this week the largest increase since 1994.

The CIO explained: I think people underestimate. When you leave rates at such low levels for such an extensive period of time when you keep policy too easy, the leverage builds in the system slash how do I capture return quickly and you are seeing a lot of the leverage that was built up around crypto come unglued pretty darn quickly.

However, he emphasized:

I still think bitcoin and crypto are durable assets. Its a durable business, but there was so much excess built around it.

Rieder described: Its not terribly dissimilar from the internet bubble if you go back to the 99 and 2000, was the internet a bad idea? No, it wasnt a bad idea. But you created so much excess around it and you just have to de-gear that dynamic, and I think we are seeing that today. He noted: Markets go down five times faster than they go up Thats why you were seeing this incredible unwind.

While reiterating that he still thinks bitcoin and crypto are durable assets that are going to go on, the Blackrock executive opined:

I think theres a healthy recalibration going on. Its a question of how much that recalibration is going to go.

When asked about the prices of major cryptocurrencies, he admitted that for crypto: Its pretty hard when there is no true intrinsic value. So, what is it worth? Its worth what the next person will pay.

He continued: My sense is, in all these situations, you overshoot, and my guess is you have probably got some downside to go from here. But its hard to say what fair value is. The Blackrock chief investment officer further shared:

My sense is like a lot of assets, if you look two to three years hence, they will be higher than today.

But it could overshoot on the downside. This is hard to figure out, just like gold, because I cant figure out my free cash flow multiple and what my security is underneath it, he concluded.

Rieder has made some pro-bitcoin comments in the past. In November 2020, he said cryptocurrency is here to stay, noting that bitcoin could replace gold. He also said BTC is so much more functional than passing a bar of gold around. In September last year, he revealed that he owns a small piece of bitcoin, emphasizing: I like assets that are volatile that have upside convexity. I could see bitcoin go up significantly.

What do you think about the comments by Blackrocks chief investment officer? Let us know in the comments section below.

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Blackrock's CIO: Bitcoin and Crypto Are Durable Assets Prices Will Move Higher Markets and Prices Bitcoin News - Bitcoin News

Theres a financial joke, whose origin I dont know, that has been making the rounds lately. It goes like this: If inflation continues at current rates, the purchasing power of wealth held in dollars will be cut in half over the next eight years. But cryptocurrencies can beat that: They can lose half their value in just a few months.

Haha. But crypto enthusiasts have indeed marketed their products as an inflation hedge. Coinbase, the biggest United States crypto exchange, declares that cryptocurrencies are appealing because theyre more resistant to inflation than fiat currencies like the U.S. dollar. This is, not incidentally, the same argument people used to make for holding gold.

But a funny thing happened as fears of inflation grew, as seen in this chart showing Bitcoins price in U.S. dollars over the past year:

So why have crypto prices crashed at exactly the moment inflation has taken off? To some extent it may be a coincidence: If you believe, as I do, that crypto is to a large extent a Ponzi scheme, this may just happen to be the moment when the scheme has run out of new suckers.

But theres also a more fundamental issue: People who touted cryptocurrencies as a hedge against fiat-currency inflation sort of a digital equivalent of gold fundamentally misunderstood how fiat currency systems work, and also, for what its worth, misunderstand what has historically driven the price of gold. It was, in fact, predictable that an upsurge in inflation would drive the price of Bitcoin down although maybe not that it would produce such an epic crash.

The key point to understand is that while the dollar is indeed a fiat currency that is, the authorities can issue more dollars at will, without the need to back those additional dollars with some kind of collateral America isnt Venezuela or the Weimar Republic, a nation that prints money to pay the governments bills. Our money supply is a policy tool used by the Federal Reserve to help keep prices fairly stable actually, rising around 2 percent a year while avoiding recessions. Sometimes the Fed gets it wrong, as it did over the past year, when it (and I) failed to see the inflation surge coming. But when it does, it tries to correct the mistake.

What this means, in turn, is that an inflationary outbreak doesnt presage a spiral of ever-rising prices, which you can avoid by buying crypto. On the contrary, markets believe that the Fed will do whatever it takes to bring inflation back down to normal levels: The five-year, five-year forward inflation expectation rate, a measure derived from spreads between regular U.S. bonds and bonds indexed to the Consumer Price Index, has barely moved through this whole episode:

And saying that the Fed will do whatever it takes means that it will raise interest rates until there are clear signs that inflation is cooling off. The Fed only has direct control over short-term rates, but long-term rates have already soared in anticipation of continued Fed tightening:

What does this mean for crypto? Well, the rate of return investors can get by buying bonds is up, which makes buying other assets, like stocks and, yes, cryptocurrency less attractive. So cryptocurrency isnt a hedge against inflation, its the opposite: When inflation goes up, the Fed responds by raising interest rates, which makes cryptocurrencies go down.

The thing is, we should have learned all about this from what happened to gold after the 2008 financial crisis. Gold prices soared, which quite a few people saw as a harbinger of runaway inflation:

But the expected inflation never came. What was happening instead was that the Fed reacted to persistent economic weakness by keeping interest rates low, and low returns on bonds pushed people to invest in other things, including gold. Whatever purpose holding gold serves something that, to be honest, remains somewhat mysterious one thing gold definitely isnt is an inflation hedge. And the same is true for cryptocurrency.

So another crypto myth bites the dust. And its hard to avoid wondering what myths are left.

Recently the legendary short-seller Jim Chanos gave Bloomberg a wide-ranging interview in which, speaking of cryptocurrency, he pointed out that a lot of the concepts behind its adoption early on have proven to basically be, you know, not there or wanting. You know, it was going to be a replacement currency. Well, no, its not. Well, its going to be a diversifying asset. Well, no, it hasnt been. And now we know it isnt an inflation hedge either.

Chanos went on to call crypto a predatory junkyard. Well, I wouldnt go that far. Actually, on second thought, I would.

FeedbackIf youre enjoying what youre reading, please consider recommending it to friends. They can sign up here. If you want to share your thoughts on an item in this weeks newsletter or on the newsletter in general, please email me at krugman-newsletter@nytimes.com.

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Opinion | Wonking Out: Wasnt Bitcoin Supposed to Be a Hedge Against Inflation? - The New York Times

Billionaire Bond King Jeffrey Gundlach believes Bitcoin (BTC) will plummet further despite having already fallen by about 70% from its all-time high.

In a new CNBC interview, the CEO of asset management firm DoubleLine Capital sayshe wouldnt be surprised at all if the flagship crypto asset fell by more than 50% from the current levels to around $10,000.

The trend in crypto is clearly not positive. I mean it topped out a long time ago. Remember, I was with you in July of last year, and Bitcoin was up at like $60,000 or something. And then it dropped down to $30,000

It managed to rally back but it looks like it is being liquidated. So Im not bullish at $20,000 or $21,000 on Bitcoin. I wouldnt be surprised at all if it went to $10,000.

At time of writing, Bitcoin is trading for $21,062, an increase of about 5% from the 2022 low of $20,111 reached earlier this week.

Gundlanch also warns the recent collapse of some cryptocurrencies could be a sign of a looming crisis in the digital asset space.

Weve had such a huge decline in parts of the stock market. Emerging market equity year-to-date is down 15%. Most equities are down. Nasdaqs down 28%, Bitcoin is down 53% year-to-date and 45% just since the last Federal Reserve meeting.

Weve already seen around the edges some blow-ups in parts of the crypto world and that could be foreshadowing some problem.

DoubleLine Capital, headquartered in Tampa, Florida, had more than $122 billion of assets under management at the close of this years first quarter.

I

Featured Image: Shutterstock/Lidiia

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Billionaire CEO of $122,000,000,000 Asset Manager Predicts Bitcoin (BTC) Could Crash by Another 50% - The Daily Hodl

The crypto bears have been in full swing recently without any respite. All major cryptocurrencies are resting in red with the stablecoin massacre now raining over MIM [Magic Internet Money]. UST has vanished, USDD and USDT are struggling underwater. This has increased a lot of pressure on the crypto market.

Bitcoin has been down again since yesterday (17 June) along with the majority of the crypto market. At press time, it was trading at $19,206 and was down by 6.44% over the last day. The coin is expected to encounter further losses in the coming days. The falling Bitcoin prices are also the result of institutional failures as seen in the cases of Terra, 3AC and Celsius. In line with the domino effect, Babel Finance became the latest company to freeze user accounts.

Babel Finance paused withdrawals and redemption of crypto assets from user accounts. The Hong Kong-based company announced the move in the same week which saw Celsius and 3AC facing liquidation pressures as well. The company said,

Recently, the crypto market has seen major fluctuations, and some institutions in the industry have experienced conductive risk events. Due to the current situation, Babel Finance is facing unusual liquidity pressures.

While the prices are fluctuating, the metrics are also narrating a bearish story with more worrying signs.

However, Bitcoins street cred has been on the rise of late. The social dominance metric has been increasing rapidly albeit in patches across the past week.

With the Bitcoin price falling, the social dominance increased due to growing confusion in the market. Investors have been trying to figure a new support line for Bitcoin after it dipped below $20k on 18 June. Finally, whale movement has gained pace recently which could give way to short price pumps.

In this regard, crypto analyst Jason William took a look at miner capitulation and Bitcoin bottoms in one of his latest tweets. Talking about the miners, he said that old ASICs get redistributed to miners having low-energy rates.

At the same time, new ASICs operating at high electricity rates get sold off to efficient miners. At the end of this capitulation, weak miners are purged and the remaining miners are mining more Bitcoin and selling significantly less as a whole.

Evidently, Bitcoin will see some relief but for now, investors pain will remain high.

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Bitcoins street cred in the face of a bear market has been pretty - AMBCrypto News