Bitcoin has continued to stagnate recently as another recovery move has failed to prosper. So heres an indicator that may hint when a break could happen.

Bitcoin Rally May Not Resume Until The Stablecoin Market Cap Goes Up

Around the start of this week, Bitcoin observed a sharp plunge that had taken the assets price from the $30,000 level down to the $29,000 mark. A couple of days back, however, the coin had started surging again and had reclaimed the $26,600 level.

This uplift in the price had come as the US Fed had announced a 25 bps interest rate hike, but before long, the recovery efforts had run out of steam, and now, the cryptocurrency has already retraced its gains from the rally.

Earlier, Bitcoin had been stuck in a phase of stagnation above the $30,000 level for more than a month, but with the plunge in the price, this streak had been broken.

The asset now sticking near the $29,000 level may mean, however, that volatility hasnt truly returned for the asset yet, as it still continues to consolidate, just around a different level. When a true break away from this stagnation may happen and the rally would return could possibly depend on the total supply of all the stablecoins.

As explained by an analyst in a CryptoQuant post, range-breaking price rises in Bitcoin this year have generally only come whenever the stablecoin supply has registered an increase.

As the quant has marked in the chart, the major price increases in the past few months have generally preceded a sharp local increase in the supply of the stablecoins.

Usually, an increase in the stablecoin supply can suggest two things. First, there may be a fresh injection of capital happening into the market, as investors ask for more of these fiat-tied tokens to be minted.

And second, some holders of other coins like Bitcoin may be selling their coins to seek the relative safety that the stablecoins offer. Either way, such investors who hold their capital in the form of stables do so because they eventually plan to dip (back) into the volatile side of the...

Bitcoin traders expect downside as BTC price offers a muted reaction to the Fed's "preferred" inflation metric.

Just over a year after launching its crypto fund, venture capital firm Sequoia is now rolling back its investments and taking more of a more careful approach. The firm was making some serious waves when it launched its crypto fund last year in February, signaling that crypto was ready for mainstream VC backing. But now the company has reportedly downsized its cryptocurrency fund by 65% as the crypto winter rages on. 

Sequoia Pulls Back On Its Crypto Funding

Sequoia Capital, one of Silicon Valleys most prestigious VC firms, is scaling back its ambitions in the crypto space. After launching a dedicated $585 million crypto fund last year, Sequoia recently announced theyre slashing it by 65% to $200 million. 

The firm has also reduced its ecosystem fund by 50%. The fund, which invests in other smaller venture funds and solo investors, is now at $450 million, down from $900 million.

Insiders close to the situation said this is a result of the bear market, which has affected projects across the industry and pulled down prices significantly over the last year.

Why Is Sequoia Taking This Step Now?

Sequoia is known for making investments in crypto companies and had initially announced its funds as part of a larger restructuring effort to increase its investments in the crypto space. The crypto market, however, has seen most projects take a big hit over the last few months and Sequoia wasnt left out, as it has seen a major part of its investment take drastic losses. 

The company was particularly affected by the crash of FTX, as it had a $214 million investment in the failed crypto exchange. Rather than spray and pray with a large fund, Sequoia is now tightening its focus. 

According to the report, the companys new investment plan is to pivot toward smaller crypto players. The smaller cryptocurrency fund will now focus more on a select group of startup companies. 

With the crypto market taking a major downturn since the announcement of its funds, its no surprise that Sequoia has decided to scale back. Crypto projects, in particular, havent done well in recent times.

According to a recent report by Lattice, a crypto venture fund, only 5% of projects created during the 2021 crypto boom have...

Mighty Bear Games CEO Simon Davis AKA Papa Bear gave us a look inside his Web3 gaming studio, and his thoughts on the future of gaming.

Russia (Egor Filin/ Unsplash)

French data protection agency CNIL said it finds the legality of Worldcoins collection methods questionable alongside the conditions for storing the data.

Blockchains tracing capacities can help certify that crops werent grown by razing woodlands or harvested with child labor.

Worldcoin's iris-scanning technology is being questioned by regulators. (Danny Nelson/CoinDesk)

Bitcoin (BTC) has continued to occupy center stage, drawing varied reactions from different financial pundits. One of these voices is billionaire investor Mike Novogratz, who has yet again reiterated his support for the top cryptocurrency despite the unsettling dynamics in the United States economy.

The Growing Concern: Skyrocketing Interest Payments

The US is currently experiencing an unprecedented increase in debts as its interest payments reach $970 billion. This figure represents a leap of $41 billion in the second quarter alone. Observers anticipate that the rising trajectory could soon see the countrys debts surge resulting in the interest payments hitting the $1 trillion milestone, which has set off alarm bells in financial circles.

Related Reading: Bitcoin Retreat Below $30,000: A Threat To Cryptos 2023 Dominance Over Stocks?

To clarify, interest payments are the actual payments that the borrower makes to the lender, typically on a regular schedule, to repay the interest on a loan or debt. The amount of each payment is determined by the interest rate and the terms of the loan.

As such, the sustained upsurge of interest payments in the US economy has triggered growing unease among financial experts. Tax receipts are currently failing to keep pace with the ballooning sovereign debt.

Consequently, the issuance of more debt to fund interest payments is becoming an increasingly common occurrence. This scenario has created a vicious cycle, causing concern about the potential repercussions on the nations fiscal health.

In light of this, Mike Novogratz has once again expressed his firm support for Bitcoin. His latest advocacy came to the forefront recently when he urged investors to buy Bitcoin as the US national debt spiked by $1 trillion between June and July.

Buy $BTC!!! https://t.co/UyGNaGXzyI

Mike Novogratz (@novogratz) July 27, 2023

Novogratzs Stance: Bitcoin As A Safe Haven

Despite expressing caution regarding the broader economy, Novogratz holds a sanguine view of Bitcoins prospects. He...

Given the importance of sovereignty and data today, it is not possible for people to be fully sovereign without entrusting sovereignty over their own data.

Bored Ape in the Otherside (Yuga Labs)

The Supreme Court bench asked the union government to file a report on whether the latter is capable of setting up a federal agency to investigate crypto-related crimes.

Grayscale's new ad campaign in New York's Penn Station. (Nikhilesh De/CoinDesk)

Energy Web CEO Jesse Morris explains why blockchain can make going green more efficient, how fighting climate change is easier, and why Energy Web is building on Polkadot.

ARK Invest CEO and crypto proponent Cathie Wood says that Bitcoin is set to grow massively as a store of value following the recent bank collapses. She believes that Bitcoins stability and a huge rally in the wake of US regional banks collapsing is a major testament to the fact that Bitcoin is the future of money.

Cathie Wood Remains Bullish On Bitcoin

In a recent interview with Barrons, Wood maintained that she remains bullish on digital assets and highlighted three reasons she wont be backing down on her investments. According to her, Bitcoin stood tall and rose by 60%, from $19,000 to $30,000, when regional banks like First Republic, SVB, and Signature Bank collapsed. She attributed this run to investors seeing the asset as a safe alternative for storing their wealth. 

Wood explained:

We see three revolutions taking place because of crypto. Bitcoin will dominate the first one, the money revolution. The biggest proof is that when regional-bank stocks were falling apart earlier this year, Bitcoin went from $19,000 to $30,000. That was a flight to safety, and we expect it to accelerate. The centralized monetary system we have today is an aberration. We could be going back to the future before the Federal Reserve existed under a digital, rules-based monetary system with no government oversight.

The other reasons for her bullishness on digital assets relate to decentralized finance (DeFi) and digital property rights involving tokenizing several physical assets in real estate and other relevant industries. 

The second revolution is in financial services, or the so-called DeFi, which will be Ethereum-based. There are a number of infrastructure providers out there. Its the survival of the fittest, and Im excited to see who wins, the CEO said.

Last but not least, according to Woord, is digital property rights, or what many call NFT or the metaverse. People are already buying real estate in virtual worlds. Our young research associates come into the office wearing jeans and T-shirts with no logos, but they are getting their status in the virtual world.

Weighing In On Coinbases Battle With SEC

During the interview, Cathie Wood also discussed Coinbases ongoing battle with the United States Securities and Exchange Commission (SEC). Woods ARK holdings are one of the largest holders of Coinbases stock. She believes tha...

This is an opinion editorial by Logan Chipkin, a professional writer who creates educational content about Bitcoin and other topics.

In The Fiat Standard, economist Saifedean Ammous argues at length that the United States federal government has been propagandizing the masses into choosing cheap industrial substitutes and massively reducing (its) meat consumption since at least 1916.

As Ammous wrote:

...the ADA (American Dietetics Association) is responsible for formulating the dietary guidelines taught at most nutrition and medical schools worldwide, meaning it has for a century shaped the way nutritionists and doctors (mis)understand nutrition. The astonishing consequence is that the vast majority of people, nutritionists, and doctors today think that animal fat is harmful, while grains are healthy, necessary, and safe!

In other words, even though a meat-centered diet is superior to a grain-centered one, the government and its quasi-private partners succeeded in persuading millions of people into opting for the latter.

Ammous raises the topic of dietary guidelines as just one example of how a fiat standard distorts an industry, but theres another lesson in this story that Bitcoiners have to grapple with:

Even if your product is the best on the market, governments (and other entities) are capable of spreading narratives that persuade citizens to choose an inferior alternative.

If it happened with food, it could happen with money.

A CBDC Punch-Counterpunch

On July 10, 2023, Karin Strohecker published an article in Reuters titled, Twenty-Four Central Banks Will Have Digital Currencies By 2030, Survey Shows. Apparently, a couple dozen central banks have been making great progress in their development of central bank digital currencies (CBDCs). Strohecker wrote that these central banks have been working on digital versions of their currencies for retail use to avoid leaving digital payments to the private sector (emphasis added) amid an accelerating decline of cash.

This purported motivation behind CBDCs has been brewing for a while in August 2022, the European Central Bank (ECB) released a report called Towards The Holy Grail Of Cross-Border Payments. In it, the authors compared the merits and demerits of various technological implementations of a cross-border payment solution that might be immediate, cheap, universal and settled in a secure settlement medium. Of the candidates they considered, they concluded that Bitcoin is least credible and that the interlinking of domestic instant pa...

Crypto.com has registered as a crypto provider with the Netherlands central bank. (Flickr)

Near has partnered with Colombian social media platform Blumer to build token infrastructure. (Archive)

The key supporting factors for the market are the adoption of blockchain technology and the demand for NFTs for transparency and traceability in the food industry.

dogecoin/pepe slot machine (Coco Bets)

An amendment in the bill tightens oversight on institutions engaging in crypto trading.

Simulation theory proposes that our reality is a sophisticated computer simulation, raising profound questions about the nature of consciousness and existence.

Kyrgyz President Sadyr Japarov promised to distribute money from crypto mining at the hydropower plant to ordinary people.

DeFi protocol, Hector Network, has closed its official Discord server, leaving many investors in the dark. The move comes amidst growing suspicions of a $16 million rug pull engineered through a so-called hard rug, a process where funds are quickly moved, leaving investors with shitcoins. This comes after a controversial rage-quit vote organized by the projects DAO. 

DeFi Protocol Hector Network Leaves Investors In Limbo

Hector Network investors woke up to the news that the DeFi protocol had cut off communications on its official Discord server. The Discord server was the only means of communication between the networks team and its investors which was established after the Hector Network team censored them from the official server in April. 

The server was meant to run parallel to the official Discord, preserving data from the latter. Since then, it has become the only means of communication among DAO members.

The move has left the networks investors in a state of shock since they no longer have any means of communication with the networks team. This has led to a lot of backlash, and according to Libagscientist, an investor and vocal critic of the platform, there is no backchannel open anymore. 

In the absence of any official communication, dejected investors are accusing the network of siphoning the $16 million left in its treasury. 

According to investors, the team embezzled the projects funds over an 18-month period starting in 2021. According to records of DAO votes, the Hector team received over $51 million in salaries during this period without delivering on any meaningful milestone. An aggrieved investor identified as Jintu said, ..not one thing has actually moved forwards.

A Story of Sheer Incompetence and Greed

The Hector Network is part of several Olympus DAO forks, a prominent cryptocurrency reserve currency project that peaked during the DeFi summer of 2021. The Hector Network, like other Olympus DAO forks, promised huge annualized yields of about 100,000% in the beginning, and the early successes of Olympus DAO attracted many investors hunting for massive returns. 

During its hay days, Hector Networks native token, HEC reached $357 in late 2021. However, the platforms challenge lies in the fact that its inflationary yield needs to be supported with a steady influx of investor cash to keep the HEC token valuable and maintain its high yields. 

Following the crypto winter that began in November 2021, the platform has been unable to recover. Aggrieved investors believe that the team should have......

The partnership between The Sandbox, the British Museum and laCollection intends to make artifacts in the museums collection more accessible.

The funds will be used to aid the firm's global expansion across tough regulatory landscapes.

In a thought-provoking blog post titled Moai, Arthur Hayes, co-founder of the renowned crypto exchange BitMEX, delves into the potential impact of Artificial Intelligence (AI) on the future of economic organization and the role of Ethereum. Hayes argues that the rise of AI-driven Decentralized Autonomous Organizations (DAOs) will revolutionize the global economy and propel Ethereum to new heights.

The Critical Role Of DAOs In The AI Era

Hayes contends that the current economic progress and per capita wealth of global civilization can be attributed to the efficient self-organization of human societies. He emphasizes that traditional company structures, empowered and regulated by the state, have been the primary vehicles for economic development. However, he highlights the limitations of these structures when it comes to AI-driven entities.

He states, An AI has no reason to follow any laws. It cannot be coerced by the state, and therefore, exchanges that trade tokens issued by AI-powered DAOs will likely become natural monopolies.

Hayes lays out a compelling argument for why DAOs, relying on smart contracts executed on public blockchains like Ethereum, are the ideal organizational structure for AI-driven entities. These smart contracts provide transparency, immutability, and cryptographic verification of transactions and agreements. Consequently, DAOs can operate efficiently and securely without the need for third-party intermediaries or costly auditing processes.

He envisions a future where AI-powered DAOs will raise capital and trade their tokens on decentralized exchanges (DEXs) on Ethereum rather than traditional centralized exchanges. This will create truly global capital markets accessible to anyone with an internet connection. Hayes predicts that DEXs will become natural monopolies due to the advantages they offer in terms of trust, security, and ease of use.

The BitMEX founder presents a hypothetical example of PoetAI, an AI-powered DAO that aims to fundraise and produce original poetry for profit. He envisions how PoetAI could issue its tokens, called POET, through a smart contract with specific attributes, such as revenue sharing and voting mechanisms. Investors can confidently invest in PoetAI DAO knowing that its financial statements are continuously available on the public blockchain, eliminating the need for traditional auditors.

Moreover, Hayes explains that DAOs can raise capital by issuing debt, enabling economic time travel by borrowing from the future to stimulate present economic activity. The enforceability of contracts in DAOs can be facilitated through smart contracts on public blockchains, ensuring that investors are protected.

Hayes Bull Case For Ethereum

Hayes concludes, Ethereum transactions will grow exponentially as DAOs proliferate. As a result, the price of ETH should skyrocket in ant...

Matrixport has advised jumping to bullish bitcoin call options as low volatility has made option prices cheaper. (CoinDesk/Highcharts.com)

Bank of Japan's tweak to its bond buying program had little effect on bitcoin. (Getty Images)

Bitcoin daily chart (CoinDesk Indices)

A mainstream media report highlighted that the mining hardware firm Phoenix Technology is planning to go public in Abu Dhabi, UAE.

Contributors from 44 countries are tasked with vetting the information being shared on posts that draw greater attention and are often subject to being picked up by mainstream media.

The Shiba Inu-themed blockchain is testing a bridge to Ethereum. (Payless Images)

(Ryan Quintal/Unsplash, Modified by CoinDesk)

Animoca Brands partners with Hi, a Web3 neobanking app that features cryptocurrency exchange services, conventional digital banking and customized NFT-styled debit cards.

UAE-based crypto mining firm Phoenix Technology is reportedly eyeing an IPO. (Nick Fewings/Unsplash)

The exchange received the green light from De Nederlandsche Bank to offer services in the country.

Binance said that the CFTC is attempting to regulate foreign individuals and corporations operating outside the United States, going beyond the limits of its statutory jurisdiction.

The Bitcoin price is currently in an uncertain situation. After BTC broke below the one-month trading range between $29.800 and $31.500, the bulls have so far failed to recapture this area. A first attempt failed on Wednesday at $29.725, a second effort on Thursday at $29.600.

On the other hand, the bears currently also fail to push the price below the critical support at $29.000. In which direction the next movement will go is, as always, pure speculation, but data can give indications.

Bullish Signal 1: Decreasing BTC Supply On Exchanges

Renowned crypto analyst Ali Martinez shared an intriguing bullish chart, revealing that only 2.25 million BTC are currently held in known crypto exchange wallets. This is the lowest Bitcoin supply on trading platforms since January 2018.

The data suggests that investors and long-term holders are refraining from selling and are instead choosing to keep their BTC off exchanges. This hodling behavior indicates a positive sentiment BTC holders.

Bullish Signal 2: Lack Of Inflows From Bitcoin Whales

Head of Research at CryptoQuant, Julio Moreno, pointed out another bullish sign when he shared a chart showing a lack of inflows from large investors with 1,000 to 10,000 BTC (aka Bitcoin whales) into exchanges. Moreno stated, Not really seeing Bitcoin whale inflows into exchanges.

Additionally, the same trend is observed among smaller investors, indicating a reluctance to deposit BTC into centralized exchanges. Commenting on the exchange deposit transactions (7-day SMA) chart, Moreno added, indeed, seems nobody wants to deposit into centralized exchanges.

Such behavior suggests that significant holders and institutions are holding onto their BTC assets, potentially anticipating future price increases.

Bearish Signal: Short-Term Holder (STH) MVRV Metric

...

The SEC has ordered listed firms, including crypto firms, to report materially important cybersecurity breaches. (Shutterstock)

Sam Bankman-Fried (right) exits the courtroom in Manhattan after a hearing on July 26, 2023. (Nikhilesh De/CoinDesk)

U.S. Capitol Building (Jesse Hamilton/CoinDesk)

U.S. Sen. Cynthia Lummis (R-WY) speaks at Consensus 2023. (Shutterstock/CoinDesk)

Bankrupt crypto firms Genesis and FTX have reached an agreement in principle in their ongoing dispute. (Danny Nelson/CoinDesk)

Esther Crawford claimed Elon Musks inability to handle criticism created a zealous and fanatical inner circle.

FTX and Genesis lawyers have sent a letter to the bankruptcy judge regarding a settlement agreement.

Fernando Prez Algaba reportedly ran a crypto trading business in Argentina and is suspected to have been murdered by a professional outfit.

Coinbase, Marathon Digital and Riot Blockchain are among the Securities and Exchange Commission-registered cryptocurrency firms that would need to comply with the rules.

Artificial intelligence researchers claim to have found an automated, easy way to construct adversarial attacks on large language models.

BNB price (Binance coin) is consolidating below $250 against the US Dollar. The price could start a strong increase if it clears the $245 and $250 resistance levels.

• Binance coin price is struggling to gain pace above the $250 zone against the US Dollar.
• The price is now trading below $245 and the 100 simple moving average (4 hours).
• There was a break above a key bearish trend line with resistance near $240 on the 4-hour chart of the BNB/USD pair (data source from Binance).
• The pair might gain bullish momentum above $245 and $250.

Binance Coin Price Eyes Fresh Increase

In the past few days, BNB price saw a couple of swing moves from $245. The bulls struggled to push the price above the $250 resistance. The price reacted to the downside a couple of times and tested the $235 support zone.

A low is formed near $253.6 and the price is attempting a fresh increase, unlike Bitcoin and Ethereum. There was a move above the $240 resistance. The price spiked above the 23.6% Fib retracement level of the downward move from the $262 swing high to the $235 low.

There was also a break above a key bearish trend line with resistance near $240 on the 4-hour chart of the BNB/USD pair. BNB price is now trading below $245 and the 100 simple moving average (4 hours).

On the upside, it is facing resistance near the $245 level. The next major resistance is near $250 or the 50% Fib retracement level of the downward move from the $262 swing high to the $235 low. A close above the $250 resistance might increase the chances of a push above the $255 resistance.

Source: BNBUSD on TradingView.com

A clear move above the $255 resistance might start a steady increase. The next...

The bills aim to create a regulatory framework for payment stablecoins and enshrine rights for crypto users to self-custody digital assets.

Parrot Finance failed to catch fire despite raising over $90 million. (Parrot Finance)

For the better part of the last four days, hackers used Hogans account to promote fraudulent XRP giveaway scams.

Ethereum price is struggling to clear the $1,885 zone against the US Dollar. ETH could start a decent recovery if there is a close above $1,885 and $1,900.

• Ethereum is showing a few bearish signs from the $1,885 resistance.
• The price is trading below $1,870 and the 100-hourly Simple Moving Average.
• There is a major bullish trend line forming with support near $1,858 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could decline sharply if there is a close below the $1,850 support.

Ethereum Price Faces Rejection

Ethereums price attempted a short-term recovery wave above the $1,850 zone. ETH was able to recover above the $1,855 and $1,870 levels, similar to Bitcoin.

However, the bears protected more upsides above the $1,885 resistance zone. A high was formed near $1,887 and the price reacted to the downside. There was a drop below the $1,870 level and the 100-hourly Simple Moving Average.

Ether declined below the 50% Fib retracement level of the recovery wave from the $1,832 swing low to the $1,887 high. It is now trading below $1,870 and the 100-hourly Simple Moving Average.

There is also a major bullish trend line forming with support near $1,858 on the hourly chart of ETH/USD. The trend line is close to the 61.8% Fib retracement level of the recovery wave from the $1,832 swing low to the $1,887 high.

On the upside, immediate resistance is near the $1,870 level and the 100 hourly SMA. The first major resistance is near the $1,885 level. The next key resistance is near the $1,900 level, above which the price might rise toward the $1,920 resistance.

Source: ETHUSD on TradingView.com

A close above the $1,920 resistance could start a steady increase. The next resistance...

Bitcoin price is struggling to rise above the $29,300 resistance level. BTC could start another decline and trade below the $28,880 support zone.

• Bitcoin is struggling to rise above the $29,300 and $29,600 levels.
• The price is trading below $29,300 and the 100 hourly Simple moving average.
• There was a break below a major bullish trend line with support near $29,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could continue to move down unless there is a close above the $29,600 resistance.

Bitcoin Price Faces Uphill Task

Bitcoin price attempted a short-term recovery wave above the $29,200 resistance zone. BTC was able to climb above the $29,300 resistance zone but the upsides were limited.

The price struggled to clear a major hurdle near the $29,600 level as mentioned in yesterdays post. It seems like the bears defended the 50% Fib retracement level of the upward wave from the $30,334 swing high to the $28,880 low.

Bitcoin price started a fresh decline below the $29,400 level. There was a break below a major bullish trend line with support near $29,300 on the hourly chart of the BTC/USD pair.

The price is now trading below $29,300 and the 100 hourly Simple moving average. Immediate resistance is near the $29,300 level and the 100 hourly Simple moving average. The first major resistance is still near the $29,600 level.

Source: BTCUSD on TradingView.com

The next major resistance is near the $29,800 level or the 61.8% Fib retracement level of the upward wave from the $30,334 swing high to the $28,880 low, above which the price might rise toward the $30,000 resistance zone. The next major resistance is near the $30,400 level.

More Losses in BTC?

If Bitcoin fails to...

Binance CEO Changpeng "CZ" Zhao (CoinDesk)

Bitcoin weekly chart. (CoinDesk Indices)

Grayscales ETF was previously knocked back by the Securities and Exchange Commission; now the fund manager wants it and competing ETFs approved together so none have an advantage.

The $85 billion venture capital firm launched the Sequoia Crypto Fund in February 2022.

BTC traders fix their eyes on $31,000 even as $2 billion in Bitcoin options are set to expire on July 28.

KIN, originally created in 2017 by Kik Interactive to monetize the messaging app, has a market cap of nearly $50 million. (Brady Dale/CoinDesk)

(Grayscale Investments Chief Legal Officer Craig Salm/CoinDesk TV)

Sequoia tree at Sequoia National Park, California, USA (Getty Images)

A section of the Berlin Wall, which stood as a symbol of state oppression. Are CBDCs a dangerous form of nationalized banking, NYU Law's Richard Epstein and Max Raskin write. (Claudio Schwarz/Unsplash)

Investment banking company, TD Cowen, published a recent report on MicroStrategy and its adoption of Bitcoin, according to documents obtained by Bitcoin Magazine.

MicroStrategy represents a new kind of firm, which generates dollar -based cash flow from enterprise software products and cloud intelligence services but then converts its excess cash flow on an effectively -leveraged basis into bitcoin, the report said. What started as a defensive strategy to protect the value of its assets has evolved rapidly into an opportunistic strategy intended to accelerate the creation of shareholder valueThis hybrid corporate strategy represents a paradigm shift, in our view.

The report details how this forward thinking company strategy is designed to combat the depreciation of purchasing power holding the US dollar. Unlike fiat money, the total supply of bitcoin is capped at 21 million bitcoins, making it a potentially superior store of value, we think. TD Cowen explains that this strategy will not be lived short term, but it will be a long term strategic plan predicting that bitcoin will become a superior store of value in comparison to metals and fiat currencies. And that because of MicroStrategys large BTC holding, they see MSTR as an attractive vehicle for investors looking to gain Bitcoin exposure.

Significant near term catalysts for the price of Bitcoin to rise include the approval of a spot Bitcoin ETF by the SEC, development of the Lightning Network, potential FASB / GAAP accounting changes with respect to Bitcoin holdings, and the upcoming bitcoin halving in less than a year, according to the investment bank.

The report is bullish on the potential approval of a spot Bitcoin, joining many other firms in saying its a matter of when rather than whether one will eventually get approved by the SEC. TD Cowens Washington policy expert Jaret Seiberg wrote in a report earlier this month stating we view approval of a spot Bitcoin ETF as inevitable.

TD Cowen wrote Bitcoin could ultimately represent a superior store of value relative to all other forms of money, whether fiat, metal -based, or digital, we believe. The report describes Bitcoins properties of durability, portability, fungibility, verifiable, divisibility, and scarcity, establishing history, and censorship resistance as reasoning for this.

Bitcoin is relatively new, only being around since 2009. Despite this small amount of established history in comparison to gold or the dollar, TD Cowen believes that Bitcoin has weathered enough trials in the market to suggest a high likelihood it will not vanish as a valued asset any time soon. They predict that the asset will only grow stronger due to the lindy effect, meaning the longer Bitcoin can stay in existence, the more confidence society will have in it that it will continue to exist.

If Bitcoin is to take over and exceed the $17 trillion gold stocks market, i...

Paul Munter says making or allowing misleading statements can have serious consequences for accounting firms and individual accountants.

U.S. Rep. George Santos (R-NY) allegedly approached a wealthy donor in a crypto-related scheme (Photo by Alex Wong/Getty Images)

Political philosopher Hannah Arendt thought people were freest when they were actively engaged in the world. This might ring a bell for bitcoin miners. (Barbara Niggl Radloff/Wikimedia Commons)

(Shutterstock)

Gerald Glickman's "immersion-cooled bitcoin miner/pool heater" (YouTube)

(Gage Skidmore/Wikimedia Commons)

(Gerd Altmann/Pixabay)

House Agriculture Committee Chair Glenn Thompson (R-Pa.) (Kevin Dietsch/Getty Images)

(WikiImages/Pixabay)

Executive Director of the Palm Foundation Andrea Lerdo and Co-founder of Polygon Sandeep Nailwal (Palm Foundation)

Sazmining, a hosted Bitcoin mining provider committed to 100% renewable energy, has set its sights on South America with the establishment of a new facility in Paraguay. Slated to commence operations on September 15th, the facility takes advantage of Paraguay's low electricity prices, offering hosting at an competitive rate of 4.7 cents per kWh a far cry from the average cost of 16.1 cents per kWh in the United States.

"By harnessing surplus electricity, Bitcoin mining has ingeniously transformed Paraguay's previous losses into a profitable venture for the entire nation," stated Kent Halliburton, President and COO of Sazmining. "Embracing this development, Paraguayan politicians and the local power provider, ANDE, are actively participating in electricity-for-Bitcoin transactions. Beyond immediate financial gains, Sazmining has a larger vision focused on creating a sustainable and forward-looking future by investing in electrical infrastructure that will benefit Paraguay for generations to come, extending well beyond the lifespan of any Bitcoin mining activities."

As a fully non-custodial service, Sazmining ensures customers' Bitcoin rewards are directly sent from the mining pool to their private wallets. Operating on a mutually beneficial model, Sazmining only earns when the customer does, incentivizing them to optimize the mining environment for maximum efficiency and the longevity of the miners.

The facility will provide customers with their signature white-glove, on-site maintenance, customer-service experiences, and a dedicated security team to ensure the highest standards of safety and performance.

In 1971, Brazil and Paraguay joined forces to construct the Itaipu Dam, generating 14 gigawatts of electricity. Under the agreement, Brazil financed the project, and in return, Paraguay received surplus electricity beyond its domestic needs. Initially faced with the challenge of handling this surplus, Paraguay started selling the excess power to Brazil, albeit at a financial loss. However, the advent of the Bitcoin mining industry has now presented a perfect solution to this situation, allowing Paraguay to not only profit from their surplus energy but also house advanced Bitcoin mining facilities.

A user getting their iris scanned with a Worldcoin Orb in Paris on July 21. (Eliza Gkritsi/CoinDesk)

Rune Christensen (Trevor Jones)

Suku and Polygon's Twitter-based NFT mint (Suku)

Solar panels and mining rig. (Eliza Gkritsi/CoinDesk)

(Susan Q Yin/Unsplash)

(Robert F. Kennedy, Jr.)

The U.S. Capitol (buschap/Flickr)

A user getting their iris scanned with a Worldcoin Orb in Paris on July 21. (Eliza Gkritsi/CoinDesk)