GOVERNMENTS AND BITCOIN

Snowden's Bitcoin Bombshell: Government Purchase Predicted

Edward Snowden's Bitcoin Prediction: Whistleblower and technology specialist Edward Snowden predicts that a national government will be uncovered for purchasing Bitcoin without public knowledge in 2024. In a post on X, he describes Bitcoin as the "modern replacement for monetary gold" and hints at an unnamed government's involvement in such activity. This prediction, if proven true, could be a major headline and potentially influence the Bitcoin market.

Implications of Snowden's Prediction: If Snowden's prediction comes true, and a major government, possibly the US, is revealed to have purchased more Bitcoin than publicly known, it could lead to a momentous surge in the market. However, it's important to note that Snowden's statement is a prediction and not a confirmed fact.

Potential Impact on the Market: Snowden's past record of unveiling private knowledge adds weight to his prediction, raising anticipation for possible major news later in 2024.

🔑 Joe Burnett suggests that the approval of a Bitcoin ETF could trigger a speculative attack, leading to hyperbitcoinization. The low borrowing rates and the ability to leverage Bitcoin as collateral could create a positive feedback loop, devaluing fiat currencies and increasing Bitcoin's value, potentially accelerating the transition to a Bitcoin-dominated financial system. The idea of a speculative attack was first introduced in 2014.

🧾 The IRS is enhancing its crypto tax enforcement programs. The IRS has hired two private-sector experts. These strategic hires will focus on service, reporting, compliance, and enforcement for Bitcoin & crypto.

📈 Veteran analyst Peter Brandt raises his Bitcoin 2025 target to $200,000. He bases this new target on the increased potential or a channel breakout. Studies based on halving cycles and technical indicators support a steep bull run. Brandt advises against the "laser eyes" meme, viewing it as a contrary indicator of retail investor mania.

🚀 Nine new U.S. spot Bitcoin ETFs amassed over 300,000 BTC. This equates to around $17 billion in under two months, capturing nearly 1.5% of Bitcoin's total supply. BlackRock and Fidelity lead the charge, with net inflows exceeding $6 billion. Amidst this demand, Bitcoin's price surged to a new yearly high of over $57,000, approaching its all-time peak.

🌍 Strike, a Bitcoin-focused payments app, is expanding its services to Africa. It is targeting countries like Gabon, Ivory Coast, and Nigeria. The expansion aims to offer financial innovation and economic freedom in regions with high inflation and currency devaluation, enabling people to save and build wealth using Bitcoin and stablecoins.

🇺🇸 On February 28, the US government transferred $922 million worth of seized Bitcoin from two wallets related to the 2016 Bitfinex hack. This coincides with Bitcoin's surge past $60,000 for the first time in two years. The transfers followed hacker Ilya Lichtenstein's court appearance, detailing his involvement in the $4.5 billion Bitfinex heist. Lichtenstein and his wife pleaded guilty to money laundering in connection with the hack in August 2023.

👩‍⚖️ Senator Elizabeth Warren wants to collaborate with the crypto industry. However, she insists it must adhere to traditional finance rules. She criticizes the industry's resistance to regulation, emphasizing the need for a level playing field and law enforcement to prevent illegal activities. Warren's anti-money laundering bill aims to extend traditional financial regulations to the crypto sector.

🤔 Tron founder Justin Sun claims Warren Buffett owns one Bitcoin. This comes as a surprise due to Buffett's known criticism of BTC. Sun believes Buffett still holds the Bitcoin gifted to him during a 2020 charity dinner. Sun also presented Buffett with a crypto smartphone containing over one Bitcoin and 1.93 million TRX.

The most clicked link in our last newsletter was the video with Donald Trump’s comments on Bitcoin.

Morgan Stanley's Recession Warning and Bitcoin's Surge

Morgan Stanley's Recession Prediction: Ellen Zentner, Morgan Stanley's chief US economist, forecasts a recession in the US within the next 18 months. She bases this on the cumulative effects of interest rate hikes. She believes the economy has yet to feel the full impact of monetary tightening, with corporate defaults and reduced bank lending as indicators.

Bitcoin's Resilience: Despite the gloomy economic outlook, Bitcoin surged to $64,000, largely driven by institutional activity rather than the state of the US economy. On-chain analysis shows that the average transaction size in the past week was $180,267.82, suggesting a focus on institutional trading strategies.

Market Dynamics: Bitcoin's recent price movements seem disconnected from traditional economic indicators. A short squeeze contributed to its rise to $54,000, with further gains to $64,000 following liquidations in Bitcoin margin trading positions. The future price of Bitcoin may be heavily influenced by institutional investors.

Is Nigeria trying to decrease Bitcoin usage proof of Bitcoin's economic power?

👍 Yes - 96.2%

👎 No - 3.8%

👍 Yes - “Bitcoin is the means by which ordinary people can protect themselves against the constant debasement of fiat currencies.” - Bill

👍 Yes - “All hail the world’s greatest fiat overlords!!” - Chris

📈 The cryptocurrency market has surpassed the $2 trillion mark. This shift has been led by Bitcoin's surge above $60,000 and positive market sentiment. The rally is driven by inflows into spot Bitcoin ETFs and strong demand for Bitcoin, with the total global assets under management reaching $67.5 billion.

🔍 Riot Platforms explains what it sees as future risks for miners. In its annual report, Riot highlights several challenges affecting the entire Bitcoin mining industry, including a global chip shortage, regulatory uncertainties, and the upcoming Bitcoin halving event. These issues could impact the industry's profitability and operational efficiency.

🚫 U.S. senators introduced a bill to block the Federal Reserve from issuing CBDCs, citing privacy concerns. Led by Senator Ted Cruz, the legislation aims to prevent government surveillance and protect financial freedom.

📉 Coinbase experienced a crash after a surge in Bitcoin's price, attributed to a significant increase in traffic. CEO cites robust demand and assures that the platform is working to scale its infrastructure to handle such surges in the future.

“Financial analyst” Jim Cramer questions Bitcoin's contribution to humanity. He asks, "What has Bitcoin ever done for mankind?" 

Cramer's skepticism highlights the ongoing debate about the utility of Bitcoin compared to traditional companies.

Bitcoin is the 10th largest asset in the world.

48 - The estimated amount of days left until the 2024 Bitcoin halving.

$7 Billion USD - The estimated trading volume with US Bitcoin ETFs did on February 27 , 2024. This amount of volume is a record high since the ETFs started trading on January 10th.

9% - Bitcoin’s market cap vs gold. If Bitcoin goes to around $680,000 USD, it will match the market cap of gold.