⚔️ Fiat Wars Escalate

On-Chain Indicators & New All-Time High in Japan

First time reading? I’m Jordan, and this is The Bitcoin Minimalist. Every Tuesday & Thursday, we scour 100s of sources to bring you need-to-know Bitcoin insights.

Today we’re covering:

  • Russia seizes Western bank assets,

  • Venezuela cuts Bitcoin power supply,

  • Leadership change at Grayscale investments,

  • And everything else you need to know.


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Russia Seizes Western Bank Assets Amid Escalating Fiat Wars

Asset Seizure Amid Sanctions: Over the weekend, Russian authorities seized over $700 million in assets from major banks. The banks include UniCredit, Deutsche Bank, and Commerzbank. These assets have been impacted by ongoing sanctions due to Russia's actions in Ukraine since February 2022.

Escalating Fiat Wars: The seizures mark an intensification of the so-called fiat wars, reflecting deteriorating trust between global superpowers. This action by Russia is seen as a response to Western financial sanctions.

Bitcoin as a Solution: The current global financial instability underscores the need for an apolitical, decentralized monetary system. Bitcoin emerges as a potential solution, offering a way to bypass centralized control and avoid the pitfalls of geopolitical weaponization of finance.

Forward-Thinking Nations and Bitcoin: The situation may prompt other sovereign nations to follow El Salvador's lead in adopting Bitcoin as part of their financial strategy. Bitcoin could help protect their reserves from international sanctions and seizure.


📈 Five of seven on-chain Bitcoin indicators indicate the potential beginning of a bull market. These indicators include the Bitcoin MVRV Z Score and Puell Multiple. Despite recent sideways trends in crypto markets, Bitcoin maintains a stable market dominance, consistently over 56%.

📉 Bitcoin network fees have plummeted to record lows, driven by declining Layer 1 transaction volumes. This significant reduction in fees has severely impacted miner revenues. The sharp decrease, combined with dropping Bitcoin reserves among miners, raises concerns about the long-term financial stability of mining operations.

🔌 Venezuela will disconnect all cryptocurrency mining farms from the national power grid to manage electricity demand. This action follows the confiscation of 2,000 mining machines in an anti-corruption operation, amid a broader electrical crisis that has fueled 219 protests in early 2024.

💹 After a CPI report indicates moderated inflation, Bitcoin investment funds recorded a massive $932 million in inflows. The majority of these inflows occurred in the latter part of the week, reflecting growing investor confidence tied to easing inflation and adjusting interest rate expectations.

🔄 Michael Sonnenshein resigns as chief of Grayscale Investments, amid competitive pressures and asset outflows. Following the launch of new bitcoin ETFs, Peter Mintzberg from Goldman Sachs is set to take over in August, with other potential strategic changes anticipated for Grayscale.

🔓 A dormant Bitcoin wallet from 2013 reactivated, moving $7.6 million worth of BTC after nearly 11 years. This sudden activity, occurring on May 19, 2024, has triggered discussions about possible market volatility as large and older holders moving coins is always followed closely.


Bitcoin Sets New Record in Global Currencies Due to High Inflation

Bitcoin’s priced shown in Japanese Yen.

Japan: In Japan, Bitcoin exceeded 11 million yen, reflecting significant currency weakening against the U.S. dollar, an ongoing trend for the Japanese Yen.

Inflation Effects in South America: In Argentina, where inflation rates soar at 290%, Bitcoin's value reached 63.8 million Argentine pesos, an all-time high.


Why was the Bitcoin price up yesterday and this morning?

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Are you surprised the Bitcoin price has not increased significantly despite recent major investments by large firms?

👍 Yes - 53.7%

👎 No - 46.3%

👍 Yes - “Patience is the final lesson.” - Bill

👍 Yes - “As anybody may buy cryptocurrencies (also a lot of bad boys, including governments of not reliable countries) it has become a floating market which can go in any direction any time with little to no foreseen reason.” - Joe

👎 No - “I expect dramatic appreciation over the next few years but lots of levered shorts / longs short term that make things a little dicier“ - Chris


📜 The UK High Court, under Judge James Mellor, dismissed Craig Wright's claims to be Bitcoin's inventor, Satoshi Nakamoto, citing Wright's use of forged documents and deceit. The judgment emphasized Wright's lack of understanding of Bitcoin's basic technology and highlighted his arrogance, which contradicts the persona of Satoshi Nakamoto.

🔍 While critics label Bitcoin a Ponzi scheme, historical analysis and recent large-scale fraudulent activities involving Bitcoin suggest its legitimacy. Yet, it is paradoxically implicated in substantial schemes, contradicting the simple fraud accusations. The "FUD Fighters" series by HIVE Digital Technologies explores these complexities in detail.

🔄 ETF analysts James Seyffart and Eric Balchunas have significantly raised the likelihood of the SEC approving a spot Ethereum ETF, adjusting their expectations from 25% to 75% based on recent insider information. This shift follows rumors that the SEC is reevaluating its initial stance against such ETFs.

📉 The global count of Bitcoin ATMs fell for the first time since July 2023, with over 300 machines going offline in May 2024. The U.S. saw the largest decrease, losing 302 ATMs, while installations in Australia, Switzerland, and Europe mitigated the overall decline. This disruption is amidst regulatory crackdowns on ATMs used for scams.


Power Law (above) - Bitcoin’s price bounced nearly perfectly off the middle green band of the long term power law. It’s currently climbing back up, with the recent price increase.

Stock to flow (above) - Despite recent criticism, Bitcoin’s price continues to sit right around the price projected by the original stock to flow model.

Rainbow chart - Bitcoin’s price is now entering the green band of Bitbo’s Bitcoin rainbow chart.

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