Binance CEO Changpeng Zhao believes that the next bull run will begin in 2025
His claims come at a time when Bitcoin price hit its highest point in 2023
Binance CEO Changpeng Zhao delivered his forecast for the market performance during a Twitter Space on July 5, explaining that the next crypto bull run will be seen in 2025.
Crypto’s 4-year cycles to repeat itself: Binance CEO Changpeng Zhao
Historical bitcoin bull run trigger, halving cycle is not in line with the global financial markets outlook this time. It is set to be carried out 296 days from now. However, the global financial outlook could be more friendly as most countries are dealing with rising living costs.
“The year after Bitcoin halving is usually the bull year.“ he said
However, the next halving happens in 2024, meaning the markets would rise from then, climaxing in 2025 if all other factors remain constant. Remember that nothing is promised, and the market prospects could change. Keep watching Fintech Express for more updates on this and other fintech-related developments.
Crypto hacking spree continues as developers lack proper solutions to track looters as $300 M is stolen in Q2 2023
Year-over-year losses to crypto hacks have dropped by 58%
Crypto hacks have persisted into 2023 though a noticeable drop of 58% YoY has occurred. A report by Certik, however, shows that $300 million was stolen from the industry in Q2 2023.
Crypto hacks are reducing, but it’s not time to celebrate yet
Th report by Certik shows that between April and July 2023, a total of $100 million was being siphoned out of the crypto industry by hackers each month. The whole amount was siphoned in 212 security breach occasions.
Certik also noted that this time the amount stolen in the year is much lower than 2022’s $745 million in the same period, a 58% decline. However, this drop in total losses came with new developments. The amount lost in scams rose to around $70 million in the period, a more than 50% increase from Q1 2023, which recorded a loss of $31 million.
Certik also recorded an increasingly concerning rise in losses across BNB Chain ecosystems. BNB Chain had a rough 2022 after a bridge was hacked, almost losing half a billion dollars. The new report shows that it recorded the largest incidents with 119 ($70.7 million), while Ethereum came second with 55 incidents ($65 million).
Keep watching Fintech Express for more updates on crypto and other fintech-related developments.
Crypto is a hedge against inflation and economic downturns. As central banks around the world continue to print money, you should be concerned about the long-term value of fiat currencies. Additionally, blockchain technology has proven to be a boon in terms of security and efficiency, which is why many financial institutions are exploring ways to incorporate it into their operations.
Overall, as more institutions begin to invest in crypto assets and blockchain technology, this will likely lead to increased adoption and mainstream acceptance of cryptocurrencies.
Institutional interest in Bitcoin
Institutional interest in Bitcoin has grown significantly in recent years. Bitcoin, as the first and most well-known cryptocurrency, has attracted attention from various institutional players, including banks, hedge funds, asset management firms, and even some government entities.
Adoption by Financial institutions
Several traditional financial institutions have recognized the potential of Bitcoin and other cryptocurrencies. Some prominent examples include JPMorgan Chase, Goldman Sachs, and Fidelity Investments, which have started offering services or investing in the crypto space. These institutions’ involvement has helped legitimize Bitcoin and increase its mainstream acceptance.
Bitcoin investment funds
Institutional investors have launched dedicated funds specifically for investing in cryptocurrencies, including Bitcoin. These funds provide an opportunity for institutional investors to gain exposure to Bitcoin’s potential without directly holding the cryptocurrency themselves. This trend has opened up new avenues for institutional capital to flow into the Bitcoin market.
Bitcoin futures and derivatives
The introduction of Bitcoin futures contracts on regulated exchanges, such as the Chicago Mercantile Exchange (CME), has allowed institutional investors to gain exposure to Bitcoin without actually owning the underlying asset. Additionally, the development of Bitcoin options and other derivatives has provided institutions with more sophisticated investment instruments to manage risk and enhance trading strategies.
Institutional custody Solutions
Custody services tailored for institutional investors have emerged to address their specific needs in securely storing and managing Bitcoin holdings. These services offer robust security measures and institutional-grade infrastructure to mitigate the risks associated with holding cryptocurrencies. Established financial institutions and specialized crypto custodians now provide such services, attracting institutional investors looking for secure storage solutions.
Regulatory developments
Increased regulatory clarity and oversight in some jurisdictions have contributed to institutional interest in Bitcoin. Regulatory frameworks provide a level of certainty and investor protection that institutions often seek before committing significant capital. As regulators establish guidelines and regulations around cryptocurrencies, institutional investors can navigate the market with more confidence.
Inflation hedge and diversification
Bitcoin’s decentralized nature and limited supply make it an attractive asset for institutions seeking protection against inflation and diversification within their portfolios. As traditional financial markets face uncertainties, institutional investors view Bitcoin as a potential store of value and a hedge against economic instability.
It’s important to note that institutional interest in Bitcoin can be influenced by market conditions, regulatory changes, and investor sentiment. While institutional involvement has grown, it does not imply unanimous support or constant investment. The level of institutional interest in Bitcoin may vary over time as market dynamics evolve.
Blockchain technology paves the way for institutional transformation
Blockchain’s decentralized and secure nature eliminates the need for intermediaries and provides a transparent ledger for transactions. As a result, big corporations and governments have explored blockchain technology’s potential in transforming the way they operate. One of the main reasons for this is its potential to streamline financial processes and reduce costs.
Blockchain can be used for various applications such as cross-border payments, trade finance, and supply chain management, making it attractive to institutions looking to improve efficiency. Moreover, blockchain technology’s robust security features make it an appealing option for institutions seeking to protect their assets from cyber threats.
With high-profile hacks on traditional financial institutions becoming more frequent, blockchain’s immutability and encryption provide an added layer of protection. Blockchain technology paves the way for institutional interest in crypto by offering increased efficiency and security.
Digital assets gain credibility among traditional investors
An increasing number of well-established financial institutions–most recently, BlackRock and Fidelity–are dipping their toes into the crypto market. These institutions include major banks, asset managers, and hedge funds that have started offering cryptocurrency-related products and services to their clients. Additionally, regulatory frameworks that provide clarity on how digital assets should be treated by traditional financial systems–especially MiCA out of Europe–have helped boost investor confidence in cryptocurrencies.
COVID-19 lockdowns also played a role in accelerating institutional adoption as investors seek alternative investment opportunities amid economic uncertainties. As a result, more institutional players are exploring ways to invest in digital assets such as Bitcoin and Ethereum to diversify their portfolios and potentially benefit from the potential upside returns offered by these new asset classes.
Increasing institutional interest signals a promising future for crypto
The increasing institutional interest in cryptocurrencies is a clear indication that the crypto market is heading towards a promising future. Institutional investors, such as banks, hedge funds, and pension funds, have traditionally been skeptical of digital assets due to their volatility and lack of regulation.
The recent ETF applications by BlackRock and Fidelity, as well as the ensuing surge in Bitcoin’s value, has caught Wall Street’s attention. With Bitcoin halving coming up in 2024, it appears to be a perfect storm for institutional investors FOMO into crypto, seeking high returns and diversification in their investment portfolios.
Kadan Stadelmann
Kadan Stadelmann is a blockchain developer, operations security expert and Komodo Platform’s chief technology officer. His experience ranges from working in operations security in the government sector and launching technology startups to application development and cryptography. Kadan started his journey into blockchain technology in 2011 and joined the Komodo team in 2016.
Decentralized finance has seen a growth in market capitalization as harsh crypto regulation is happening globally.
Over the past two weeks, similar timing with Coinbase and Binance legal charges by SEC in the US, Decentralized Finance (DeFi) has increased market capitalization by over 15%.
DeFi has seen a market cap spike of 15% in the past two weeks as the US and other global regulators are going harder after crypto organizations. The market capitalization has increased by $6.3 billion in the time frame from $41.5 billion to $47.8 billion.
Crypto users to turn to Decentralized Finance (DeFi)?
As US regulators work to ‘protect’ citizens from risky crypto organizations, investors have taken a step back from centralized crypto organizations driving the numbers in the Decentralized Finance (DeFi) sector up.
This June, the US Securities and Exchanges Commission (SEC) pressed charges against the two largest crypto exchanges in the country, Binance and Coinbase. It alleged that the two organizations were functioning as securities brokers in the country without its knowledge. As such, it wants them to cease operations to ‘protect’ citizens and/or stop offering certain services altogether.
The SEC alleges that the two exchanges have parallels with the fallen FTX crypto exchange, thus putting US citizens’ investments at risk. The exchanges have hit back with Coinbase planning an exit as Binance challenged the SEC to show that it has been mixing its Binance.US platform funds with its International platform and that it has spent customer deposits.
These allegations have come to the front as weak as the SEC has yet to prove that any exchanges are wrong. As such, crypto users have been calling for a US market exit as the country only accounts for 15% of the total global crypto remit. As such, a spike has been noticed in the DeFi markets, with Decentralized Exchanges like Uniswap and PancakeSwap experiencing a growing number of daily users.
Altogether, over $6 billion has been added to the DeFi markets capitalization in the two weeks, showing growing dissatisfaction with how the Centralized part of the crypto industry is regulated.
Keep watching Fintech Express for more updates on crypto and other Fintech-related developments.
Ripple has confirmed that it has received “in principle” approval to offer digital assets services in Singapore
The new approval allows the company to legally scale on-demand liquidity for XRP users in the country
Ripple has scored another regulatory win as it acquires an in-principle license to serve customers in Singapore. The Monetary Authority of Singapore (MAS) approved the approval per a June 22 statement.
Ripple to legally scale on-demand liquidity for XRP in Singapore
Ripple officially allowed to use its subsidiary, Ripple Markets Asia Pacific, to further scale its On-Demand Liquidity. The ODL will help XRP Ripple customers move their cryptos around the world without banks’ intervention as intermediaries.
We’re honored to obtain In-Principle Approval of a Major Payments Institution License from the @MAS_sg – allowing us to offer regulated digital asset products and services, and scale customer use of #ODL. 🇸🇬
Ripple had applied for the institutional Payment license under Singapore’s Payment Service Act, with CEO Brad Garlinghouse praising the Singaporean regulator for its pragmatic approach to crypto regulation. He added that the city-state would provide a prominent gateway for Ripple’s business operations in the Asia Pacific region.
The firm’s Chief Legal Officer, Stu Alderoty, also weighed in on the matter, saying that Singapore’s “early leadership” will pave the way for other regulators to develop a clear crypto regulatory framework.
“MAS has built a workable framework that truly unites consumer protection, market integrity and innovation. They’ve also outlined a clear taxonomy to classify and regulate digital assets – making it possible for companies like Ripple to build and offer compliant products.”
“It’s been said many times, but bears repeating – regulatory clarity is what will help drive crypto utility for real-world use cases.”
This win comes when the firm is battling the US SEC in court for regulatory uncertainties. The firm is defending that XRP is not a security against a hawkish regulator that is going after crypto organizations vehemently. The US SEC has also started legal proceedings against Binance and Coinbase; however, the odds are getting smaller for its win after the expose of Hinman documents.
Hinman was a key executive of the regulator who showed arrogance and dismissal of law in a 2018 anti-crypto speech. Since then, the regulator has gone after different crypto organizations on claims that they were evading being regulated. As a result of public dissatisfaction, a bill has also been tabled to restructure the SEC and make its operations more transparent.
Keep watching Fintech Express for updates on crypto regulation and other Fintech-related developments.
