Category Archives: Ethereum
The Ethereum Shanghai upgrade: Everything you need to know – Cointelegraph
Ethereum has just had its first major upgrade, or hard fork, since transitioning to a proof-of-stake system. The Shanghai upgrade allows validators to withdraw the staked ether (ETH) that has been locked in the network.
While the primary objective of the upgrade is to implement Ethereum Improvement Proposal-4895, which unlocks validator withdrawals, the changes include other significant upgrades that will impact Ethereum app developers and many of the chains users.
The Ethereum blockchain network has undergone a number of upgrades and changes since its initial launch in July 2015. Some of the most significant:
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These upgrades have brought numerous improvements to the Ethereum network across security, efficiency and scalability and have enhanced the functionality of the network.
The upgrade is set to change the way the blockchain functions. One of the key changes is a reduction in gas fees for layer-2 solutions like Polygon and Optimism. This update aims to enhance the overall functionality of the blockchain while reducing transaction costs.
Another significant change is the ability for users to access and unstake their Ethereum tokens, which were previously locked in a smart contract when they became validators on the proof-of-stake-based Ethereum blockchain known as the Beacon Chain. This update provides users with more flexibility when managing their staked ETH tokens.
The Shanghai update brings technical improvements to the smart contract feature, which will help to position Ethereum as a major player, reflecting Ethereums ongoing efforts to improve its technology and enhance value to users.
The Shanghai upgrade is expected to have a positive effect on the institutional adoption of cryptocurrencies as it addresses concerns about security and reliability. It is likely that this increased level of trust will lead to further investment in this space.
As Ethereum continues to evolve, institutions need to be aware of potential impacts on investments and understand how to prepare for upgrades.
Upgrades can impact assets in a variety of ways:
Institutions preparing for an upgrade should review available documentation, including timelines for rollouts of updates, code commits and network changes. They should also ensure wallet and service compatibility.
The option for full withdrawal may lead to a reduction in the number of validators on the network, but the extent of its impact will depend entirely on the number of validators who actually choose to withdraw. It is possible that the Total Value Locked on the Beacon Chain could decrease as stakers claim their rewards and unstake their assets, which could lead to a drop in ETH prices.
On the other hand, allowing the unstaking of ETH will attract more investors to staking, resulting in an increase in the amount of ETH staked. This is due to the rising popularity of liquid staking derivatives that provide stakers with liquidity flexibility while earning rewards on their staked ETH, without worrying about when they can withdraw assets.
This may increase the price of ETH, or at least help it recover further from the loss in value that occurred with the recent bank failures. The impact of these changes ultimately depends on the actions of the majority of validators regarding their rewards and unstaked assets.
However, the daily withdrawal limit prevents a run on ETH withdrawals and will hopefully mitigate the effect of the upgrade on the market price of Ethereum. The market is notoriously hard to predict, and popular assumptions may prove to be inaccurate.
The Shanghai upgrade brings significant changes to Ethereum, marking an important moment for the crypto industry, reshaping the way Ethereum functions and granting stakers newfound accessibility to their ETH holdings.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
Tammy Paolais a financial services, blockchain and crypto markets executive and thought leader.
This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.
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The Ethereum Shanghai upgrade: Everything you need to know - Cointelegraph
Exploring The Pros of Investing in Crypto – Dogetti, Ethereum, and Litecoin – Hindustan Times
Investors are constantly seeking opportunities to maximize their returns when it comes to cryptocurrency. As the market evolves, new investment options emerge, such as presale coins. In this guide, we will delve into the realm of cryptocurrencies, discussing everything people need to know, and shed light on the advantages of investing in presale coins. We will analyze and compare three prominent players in the crypto industry: Dogetti (DETI), Ethereum (ETH), and Litecoin (LTC). So, buckle up and get ready to navigate the exciting world of crypto investments!
Dogetti, a meme coin inspired by the likes of Dogecoin and Shiba Inu, offers a unique investment proposition. The creators of Dogetti have cultivated a strong and united community, fondly referred to as "The Family." By branding themselves as a family, they aim to create a sense of togetherness and exclusivity, making investors feel part of something special.
One of Dogetti's key strengths lies in its 2% reflection protocol. This protocol ensures that holders are rewarded on a regular basis. With each transaction, a portion of the transaction fee is redistributed to the existing holders. This mechanism can potentially provide a consistent passive income stream for investors, enhancing the overall net worth of The Family.
Furthermore, Dogetti is not just a meme coin. It aims to provide utility within its ecosystem. The project has several forms of utility integrated, which form the core of its offerings. These utilities can enhance the long-term value of Dogetti, making it an appealing investment option for those seeking meme coins with real-world use cases.
When discussing cryptocurrencies, Ethereum is a name that cannot be ignored. As a decentralized platform, Ethereum revolutionized the crypto industry by introducing smart contracts. These programmable contracts enable the development and execution of decentralized applications (dApps) and have paved the way for the explosive growth of decentralized finance (DeFi) projects.
Ethereum's vibrant ecosystem hosts a plethora of dApps, ranging from decentralized exchanges to lending platforms. This vast ecosystem provides numerous investment opportunities for those who believe in the potential of blockchain technology to reshape various industries.
Additionally, Ethereum's native cryptocurrency, Ether (ETH), serves as the fuel for executing transactions and running applications on the Ethereum network. This utility enhances the demand for Ether and solidifies its position as a top crypto investment choice.
Often referred to as the "silver" to Bitcoin's "gold," Litecoin has gained significant popularity since its inception. Created by Charlie Lee, a former Google engineer, Litecoin shares many similarities with Bitcoin but boasts faster transaction times and lower fees.
One of the key advantages of Litecoin is its widespread adoption and recognition as a reliable and secure cryptocurrency. Many merchants accept Litecoin as a form of payment, further solidifying its utility in the real world. This increased adoption adds value and strengthens its investment potential.
Litecoin's robust infrastructure and active development community ensure its continued growth and relevance in the crypto market. Its reputation as a trusted and stable cryptocurrency makes it an appealing choice for investors seeking a reliable long-term investment option.
Dogetti, Ethereum, and Litecoin offer distinct advantages and investment opportunities. Dogetti's strong community and unique reflection protocol provide the potential for regular rewards and increased net worth. Ethereum's pioneering smart contracts and expansive ecosystem offer a wide array of investment avenues within the decentralized finance space. Meanwhile, Litecoin's widespread adoption and reputation as a reliable cryptocurrency make it a compelling long-term investment option.
In conclusion, Dogetti presents a unique investment opportunity, combining the power of community and utility. With its strong "Family" culture, regular rewards through the reflection protocol, and various forms of utility, Dogetti aims to provide a compelling and potentially lucrative investment option for crypto enthusiasts.
If you're intrigued by the prospects of Dogetti and wish to join "The Family," visit their official website for more information.
Presale: https://dogetti.io/how-to-buy
Website: https://dogetti.io/
Telegram: https://t.me/Dogetti
Twitter: https://twitter.com/_Dogetti_
Disclaimer: This article is a paid publication and does not have journalistic/ editorial involvement of Hindustan Times. Hindustan Times does not endorse/ subscribe to the contents of the article/advertisement and/or views expressed herein. The reader is further advised that Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the views, opinions, announcements, declarations, affirmations etc., stated/featured in same. The decision to read hereinafter is purely a matter of choice and shall be construed as an express undertaking/guarantee in favour of Hindustan Times of being absolved from any/ all potential legal action, or enforceable claims. The content may be for information and awareness purposes and does not constitute a financial advice.
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Exploring The Pros of Investing in Crypto - Dogetti, Ethereum, and Litecoin - Hindustan Times
Ethereum price declines as Coinbase ETH liquidity staking platform sees mass withdrawals – FXStreet
The US Securities and Exchange Commissions (SEC) crackdown on Coinbase led to mass withdrawals of Coinbase wrapped staked Ether (cbETH) since Tuesday, acting as a bearish catalyst for the assets price.
Also read: Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Wait-and-see approach seems prudent
Coinbase, one of the largest cryptocurrency exchanges, noted a spike in redemption of its liquidity staking token cbETH after the US financial regulatorfiled a lawsuit against the crypto exchange for allegedly operating as an unregistered securities exchange.
cbETH redemptions on June 6
Based on data from crypto intelligence tracker Dune Analytics, 35,810 cbETH were redeemed in the past two days. Of these, 27,280 cbETH tokens were redeemed on June 6, marking the second largest single-day amount ever.
Coinbase said it will not stop staking services despite the SECs lawsuit. Still, the withdrawal of cbETH is likely to act as a bearish catalyst for Ethereum price since Coinbase is one of the largest entities for ETH liquidity staking.
Ethereum, the second-largest altcoin in the crypto ecosystem, saw a V-shaped reversal a day after the SEC filed a lawsuit against Binance. However, the tokens price has continued to decline since then, wiping out its recovery gains.
Ethereum price chart
At the time of writing, ETH trades at $1,836.82, according to CoinGecko data. The altcoin accumulates 2.2% losses since Wednesday, and mass withdrawals from its top liquidity staking services could increase the pressure on the asset, sending it further down in the short term.
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Ethereum price declines as Coinbase ETH liquidity staking platform sees mass withdrawals - FXStreet
Exploring the Impact of Regulatory Changes on DogeMiyagi, Bitcoin … – Analytics Insight
The world of cryptocurrencies is constantly changing, and regulatory changes play a significant role in shaping their growth and acceptance. In this article, we will analyze the impact of regulatory considerations on three prominent players in the crypto space: DogeMiyagi, Bitcoin, and Ethereum. By understanding how regulatory changes affect these cryptocurrencies, we can gain insights into their potential for long-term success and explore the opportunities they present in the decentralized digital economy.
DogeMiyagi, a captivating new meme token, has quickly gained attention in the crypto-verse. This token leverages the power of camaraderie and the indomitable spirit of its community. One key aspect that sets DogeMiyagi apart is its token allocation strategy.
By using a unique referral code, users can share the opportunity with others, earning a generous 10% commission on their investment. This approach fosters a sense of community and incentivizes user engagement, contributing to the growth and acceptance of DogeMiyagi.
Bitcoin and Ethereum, two of the most established cryptocurrencies, have faced regulatory challenges due to their decentralized nature. Decentralization, a core principle of cryptocurrencies, aims to eliminate intermediaries and empower individuals. However, regulatory bodies worldwide have expressed concerns about potential illicit activities and the lack of oversight. While Bitcoin and Ethereum have made significant strides in addressing these concerns, regulatory changes can still impact their growth and acceptance.
Regulatory considerations have a profound impact on the growth and acceptance of cryptocurrencies. Governments and regulatory bodies are continuously developing frameworks to ensure consumer protection, prevent money laundering, and promote financial stability. These changes often require cryptocurrencies to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, which can increase transparency and foster trust among investors.
However, regulatory changes can also create uncertainties and hurdles for cryptocurrencies. Compliance with evolving regulations can be complex and costly, especially for smaller projects like DogeMiyagi. Nevertheless, it is crucial for cryptocurrencies to adapt and navigate the regulatory landscape to ensure their long-term viability and gain wider acceptance.
In conclusion, regulatory changes have a significant impact on the growth and acceptance of cryptocurrencies like DogeMiyagi, Bitcoin, and Ethereum. While the challenges posed by regulations are undeniable, they also present opportunities for innovation and the development of a more secure and transparent crypto ecosystem.
DogeMiyagi, with its unique token allocation system and community-driven approach, has the potential to thrive in a regulated environment. By complying with regulatory requirements and fostering a sense of trust, DogeMiyagi can differentiate itself and continue to captivate crypto enthusiasts. As the crypto industry evolves, it is important for investors and users to stay informed about regulatory changes and explore the potential of cryptocurrencies like DogeMiyagi.
If you are interested in learning more about DogeMiyagi and joining our vibrant community, visit our website and embark on an exciting journey into the world of meme coins and decentralized finance. Remember, the crypto-verse is full of opportunities, and DogeMiyagi is here to unleash the power of camaraderie in the digital world.
Website: https://dogemiyagi.com
Twitter: https://twitter.com/_Dogemiyagi_
Telegram: https://t.me/dogemiyagi
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Exploring the Impact of Regulatory Changes on DogeMiyagi, Bitcoin ... - Analytics Insight
Is Ethereum Staking Too Centralized? – BeInCrypto
Lidos dominance in the Ethereum staking market should raise serious concerns about Ethereums centralization, say the heads of the decentralized autonomous organization Asymmetry Finance. The potential impact of centralization on Ethereum could be catastrophic, leading to market crashes and protocol failures. Will regulators and community members wake up in time?
Since the Bitcoin Whitepaper in 2008, centralization has been the dream and driving force behind cryptocurrency.However, like many good things, it is easier said than done. Ethereums upgrade to proof-of-stake (PoS) last year brought many benefits. But, if you ask many in the liquid staking community, it also had serious downsides. Although, to first understand the problem, you need to understand Lido (LDO).
Lido (LDO) solves one of the biggest issues with staking tokens on a PoS blockchain like Ethereum: illiquidity. Essentially, in traditional staking, your tokens become locked up in the staking processthe consensus mechanism that secures the blockchain.
Instead of completely locking up your crypto assets, liquid staking allows you to receive tokenized versions of your deposited funds.
Launched in 2020, Lido supports Ethereum 2.0 liquid staking, as well as other layer-1 PoS blockchains like Solana, and Polkadot. Lido makes staking on Ethereum easier by allowing users to stake smaller amounts of Ether and still earn rewards. However, the minimum barrier for staking Ethereum is 32ETH (or about $60,000 at the time of writing).
An intimidating amount of money, to be sure. Although Lido Finance presents a solution. It lowers the financial barrier to staking ETH by enabling users to pool their ETH and stake any amount. So whats the problem?
Unfortunately, Lidos popularity has been a double-edged sword. It dominates the Ethereum ecosystems liquid staking derivatives and raises concerns about its impact on Ethereums decentralization as it experiences rapid and exponential growth. Even Vitalik Buterin, Ethereums founder and mastermind, has acknowledged the risk it poses.
Lido running 38% of validators is more than double that of which Vitalik said is too much for any single entity to control, Justin Garland, co-founder of Asymmetry Finance, said in a discussion with BeInCrypto.
Additionally, only 18% of ETH is currently staked. In Solana, more than 80% of the native token supply is staked and securing the network. In Avalanche, that number is above 60%. More ETH must be staked, as it further secures the entire network.
Asymmetry was founded to address the centralization of the Liquid staking tokens and derivatives market. When you deposit into Asymmetry, you receive a share of multiple staked Ethereum derivatives, which helps decentralize the staked Ethereum market. They plan to launch their flagship product afETH in the fall of this year.
Should the centralization vis-a-vis Lido keep you up at night? If you build or operate on Ethereum, maybe. For Hannah Hamilton, Asymmetry Finances other co-founder, the potential outcome is catastrophic.
[It] means mass chaos. Crash of markets. Potentially the loss of everything that is on Ethereum. DeFi protocol failure for those integrated with Lido. It would be the worst crash within DeFi weve ever seen nearly incomprehensible, Hamilton told BeInCrypto.
One protocols failure should not ever be allowed to obtain enough reach such that it would have an impact of this magnitude on the entire industry. This is why it is imperative that we decentralize this market, she added.
Its not entirely clear that everyone understands these risks, added Garland. Which calls for more education on what exactly decentralization means in practice.
To note, 66% of the nodes on the Ethereum network must agree on the state of the network to reach consensus, Garland explained.
According to Rated Network, Lido has 32.9% network penetration or the amount of stake that maps under one entity. Meaning if Lido gets to 33% and there was an attack or bug, Lido could single handedly stop the Ethereum network from reaching consensus. This means Ethereum itself stops functioning properly.
Having too many validators on Ethereum isnt the solution either, added Hamilton.
The validator set would become messy and individuals are more likely to get slashed historically than market-leading validators. Thus, an ecosystem with a larger number of market leading validators (not just Lido, but a more even split among Lido, Rocketpool, Ankr, Stakewise, etc.) that have good infrastructure set up for secure validating, but also with none of them dominating the market, she stated.
It can be a struggle to get legislators with a non-financial background to understand the intricacies of centralized finance (or CeFi). So how to tackle the steep learning curve with DeFi and Ethereum staking?
US regulators certainly dont understand these risks, or any others in the crypto ecosystem, continued Hamilton. Additionally, we dont think they yet understand that DeFi solves many problems that currently threaten the traditional financial system. For example, the numerous defaulted loans and credit risk contagion weve seen in CeFi simply cannot happen within DeFi.
She continued: On Aave, the decentralized lending platform, no loans were defaulted on because they cant be. The smart contracts dont allow it. If youre undercollateralized, your position is liquidated because that is what the smart contract dictates. We need this transparency in all financial markets.
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
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Will Solanas [SOL] new validator client cement it as Ethereum killer? – AMBCrypto News
Scalability is one of the most significant barriers to blockchain progress in current times. Networks are continuously looking for new, innovative ways to improve transaction throughput so as to gain an upper hand in the competitive environment.
While most entities opt for the modular approach i.e, splitting the functions across sidechains and layer-2 chains (L2), the Solana [SOL] network opted for a monolithic way of improving scalability at layer-1 itself, according to on-chain analytics firm Messari.
The initiative to develop Firedancer, Solanas second validator client, represents an important step in this direction.
Is your portfolio green? Check out theSolana Profit Calculator
Solana got into a partnership with Web3 infrastructure developer Jump Crypto in August 2022. This was to create a new validator client Firedancer, separate from the one originally built by Solana Labs. With the ambition of boosting network throughput, the project delivered good results in initial performance tests, hitting 1 million transactions per second (TPS).
Among other potential benefits of Firedancer, the first and foremost was reducing Solanas latency times significantly. This made the network conducive for decentralized finance (DeFi) applications and attracting high-frequency traders. Messari stated that Solanas latency times might be reduced to 400-500 milliseconds, putting it on par with centralized exchanges (CEXs).
Messaris research highlighted that if it clicks the right boxes, Firedancer had the potential to open up unexplored market space and create new demand for the Solana chain. For example, if it manages to clock 1 million TPS, Solana could attract Web2 applications like social media and financial platforms.
At the time of writing though, the Ethereum killer processed an average of 4,000 TPS over the last seven days, per data from Solscan. The total transaction fees paid to validators to secure the network was 39.256 in the last 24 hours.
Realistic or not, heresSOLs market cap in BTC terms
SOL was yet to recover from the Securities and Exchange Commission (SEC)s latest blow labeling the ninth-largest crypto asset in the market as a security. At press time, it exchanged hands at $19.85, having dropped 10% since SECs claim, according to Santiment.
Surprisingly, market sentiment for the coin turned favorable as a result of this development, going into the positive zone after a week of trading.
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Will Solanas [SOL] new validator client cement it as Ethereum killer? - AMBCrypto News
Crypto Price Today: Bitcoin below 27k mark, Ethereum down 3%, other tokens fall – CNBCTV18
SUMMARY
Bitcoin, Ethereum and other cryptocurrencies reversed gains on Thursday. The global crypto market cap stood at $1.09 trillion, with a volume of $38.3 billion in the past 24 hours.
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Bitcoin | The world's largest and most popular virtual currency, Bitcoin, fell two percent to $26,374.8. Its market value stood at $509.6 billion. The trade volume was at $17.8 billion.
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Ethereum | The second largest virtual currency, Ethererum or Ether, fell 2.1 percent to $1,838.1 with a market capitalisation of $220.3 billion. The trade volume of Ethereum was $7.4 billion in the last 24 hours.
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Dogecoin | Meme-based virtual currency, Dogecoin, was last down 2.9 percent on Thursday. Its market value stood at $9.4 billion. The trade volume was at $265.1 million.
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Shiba Inu | Shiba Inu fell 2.4 percent with a market capitalisation of $4.6 billion. The trade volume was $97.7 million in the last 24 hours.
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Solana | Solana slipped eight percent to $18.5 with a market capitalisation of $7.4 billion. The trade volume of Solana was $392.4 million in the last 24 hours.
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Polygon | Polygon fell 5.9 percent with a market capitalisation of $0.8 billion. The trade volume was $392.5 million in the last 24 hours.
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Crypto Price Today: Bitcoin below 27k mark, Ethereum down 3%, other tokens fall - CNBCTV18
Will Bitcoin and Ethereum Encounter a Cruel Summer? Here are Important Levels to Watch – Coinpedia Fintech News
As the crypto market enters the summer months, historically characterized by lower liquidity and subdued enthusiasm, it is important to acknowledge the potential for a Cruel Summer scenario. During this period, market volatility may exist, accompanied by sideways price movements.
However, there is hope for recovery as various catalysts, including upcoming congressional hearings, could positively influence market sentiment and spark renewed interest.
Crypto World dropped new video on YouTube, where the analyst analyzed the recent price movements and technical indicators of Bitcoin and Ethereum. Both Bitcoin and Ethereum are currently experiencing range-bound price action in the shorter term, with key support and resistance levels to monitor.
He observed a bounce from a support level ranging between $24.3K and $25.3K and according to him, this support area has proven its strength over the past one to two days, as the price dropped to around $25.3K before rebounding.
One notable resistance area lies between $28,000 and $30.5K, which has historically acted as a barrier on multiple occasions. Therefore, breaking above this range would be significant. On the other hand, the support range from $24.3K to $25.3K, which previously acted as resistance, now serves as a crucial support level on larger time frames.
He witnessed a perfect bounce from a support area between $1,770 and $1,820. He observed a rejection from a descending resistance line around $1.9K after a bounce from an ascending support line at $1.8K. A breakout above resistance would set a target near $2,100, while a breakout below support would target around $1,600.
The daily Ethereum oscillators show a relatively neutral outlook, with the RSI forming slightly lower highs and horizontal lows, and the MACD indicating declining bullish momentum but no bearish cross.
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Elon Musk Gives Epic Dogecoin Reply to Twitter Founder Who Says Ethereum Is Security – U.Today
Gamza Khanzadaev
Ethereum is security? Twitter founder Jack Dorsey insists so, Elon Musk gives epic DOGE reply
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In the midst of the SEC's lawsuit against Coinbase, industry experts and prominent figures have shared their opinions on the matter. Pierre Rochard, vice president of research at Riot Platforms, suggested that Coinbase refocus its attention on Bitcoin.
Echoing Rochard's sentiment, Twitter founder Jack Dorsey, known for his advocacy of Bitcoin, also expressed support for prioritizing the main cryptocurrency amid regulatory challenges. The founder of Twitter further emphasized the scarcity of censorship-resistant technologies at scale, including Tor, Bitcoin and Nostr.
Elon Musk, the world's richest man and current owner of Twitter, promptly responded to Dorsey's pro-Bitcoin stance with a concise yet attention-grabbing tweet, injecting his characteristic wit into the conversation. Musk, who has previously expressed interest in Dogecoin, a meme-inspired cryptocurrency, tweeted: "DOGE ftw," an abbreviation for "for the win." With this simple reply, Musk emphasized his ongoing enthusiasm for Dogecoin, adding an interesting twist to the ongoing discussion surrounding Bitcoin's prominence.
While Dorsey has yet to respond directly to Musk's tweet, he made a notable comment regarding Ethereum. In response to a question about ETH's classification, Dorsey affirmed its status, implying that he believes Ethereum should be considered a security. This statement adds a new layer of complexity to the ongoing debates surrounding the regulatory treatment of cryptocurrencies and may spark further discussions within the industry.
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Elon Musk Gives Epic Dogecoin Reply to Twitter Founder Who Says Ethereum Is Security - U.Today
Crypto Now Braced For A Powder Keg That Could Play Havoc With The Price Of Bitcoin And Ethereum – Forbes
BitcoinBTC, ethereum and crypto prices have been trading sideways for months (though the CEO of one major crypto company thinks that could be about to change).
Subscribe now to Forbes' CryptoAsset & Blockchain Advisor and successfully navigate the bitcoin and crypto market rollercoaster
The bitcoin price has dropped back from year-to-date highs of just over $30,000 per bitcoin, with the ethereum price falling along with iteven as excitement over a possible end to Ripple's long-running legal battle has helped XRP break out.
Now, after JPMorgan analysts issued a severe $1.1 trillion warning, the former chief executive of bitcoin and crypto exchange Bitmex Arthur Hayes has predicted a crypto market "powder keg" could go off as soon as this year.
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"Youre basically putting this powder keg together of a situation thats going to be exploding in [the third and fourth quarter] of this year, and I think, ultimately, it will be good for bitcoin," Hayes, who now runs a family office called Maelstrom, told the What Bitcoin Did podcast. "It will be quite volatile on the upside and the downside."
Bitcoin, ethereum and other major cryptocurrencies have cheered U.S. president Joe Biden's debt ceiling deal; however, JPMorgan analysts last week warned that crypto and stock markets are now nervously eyeing what will happen when the U.S. Treasury tries to refill its coffers.
Hayes, who last year was sentenced to two years of probation after pleading guilty to charges he failed to implement an anti-money laundering (AML) program at Bitmex, pointed to this year's banking crisis and expectations the U.S. government will issue just over $1 trillion in new Treasury bills in coming months, potentially sucking hundreds of billions of dollars from the market, as contributing to the "powder keg."
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Next year, bitcoin will undergo its fourth so-called halving supply cut and Hayes expects the bitcoin price to surge in its aftermath, as it has done previously.
"I dont think we get up to $70,000 this year, I think next year is when we cross that barrier, then we get the blow off top [2025], [2026] and then its Armageddon," Hayes said, referring to a significant societal upheaval such as a major war that could cause a mass panic and a sell-off of all assets, including bitcoin, ethereum and crypto.
"It doesnt have to be too straightforward, we just have this situation, we have this tinderbox of too much money, no trust and people trying to eke out a living for themselves," Hayes added.
I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk I reported on how technology is changing business, political trends, and the latest culture and lifestyle. I have covered the rise of bitcoin and cryptocurrency since 2012 and have charted its emergence as a niche technology into the greatest threat to the established financial system the world has ever seen and the most important new technology since the internet itself. I have worked and written for CityAM, the Financial Times, and the New Statesman, amongst others. Follow me on Twitter @billybambrough or email me on billyATbillybambrough.com.Disclosure: I occasionally hold some small amount of bitcoin and other cryptocurrencies.
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