Crypto News: ETH FUD, BRC-20, Meme Coins, Debt Ceiling & MORE!

Foreign Bureau Weekly News Roundup here are the Top stories in crypto this week Crypto market crash BTC drops by more Than 10 in a week due to a combination Of macro and crypto factors how much Lower could prices go before a recovery Bitcoin blockchain concerns the Popularity of brc20 meme coins and Ordinals nfts clogs up the network what Does this mean for BTC Ethereum finality fat the beacon chain Temporarily stops processing Transactions twice before developers Jump in everything you need to know Terror's troubling updates disgraced Co-founder dokwon is let out on bail While jump crypto is hit with a lawsuit For propping up Luna and UST when will We know what happened Debt ceiling debate top U.S politicians Postpone an important meeting as the Government comes dangerously close to Default why aren't the markets reacting And a closer look at last week's top Performing cryptos and where they could Be headed next all this and More in just A moment Good morning afternoon or evening thank You for tuning in my name is Guy none of What follows is financial advice and Here is the news Last week the crypto Market experienced A sudden crash the short-term downtrend

Seems to have begun the previous week When U.S authorities announced they were Investigating binance for alleged Sanctions violations The crypto Market traded sideways at the Start of last week before crashing Further this second wave of selling Seems to have been caused by the release Of the CPI for April although headline Inflation came in lower than expected Core inflation is stuck at just above Five percent This increases the chances that the FED Will raise rates yet again Case in point the Futures markets have Increased the likelihood of another 25 Basis point rate hike during the next Meeting now to be clear investors are Still overwhelmingly expecting the FED To pause but it seems that fed officials Are already coming out and signaling Their support for another rate hike Another factor that suppressed crypto Prices was the exit of two major market Makers Jane Street and jump crypto both Cited regulatory uncertainty as the Reason for their exit the Practical Effect of this is that there is less Liquidity and Market depth in plain English it's easier to move prices up or Down not surprisingly the news resulted In hundreds of millions of dollars of Liquidations from leveraged long Traders The more prices dropped the more

Liquidations occurred the absence of key Market makers meant that these Liquidations had more of an impact on Crypto prices than they would have Otherwise And as a cherry on top there were rumors That the U.S government had begun Selling some of its BTC Holdings now for Context the US government holds over 200k BTC seized from supposed criminals The government had sold some of this BTC Back in March though it's likely these Sales took place OTC that said the Absence of cell pressure over the Weekend could be evidence that the Government has been selling BTC on the Spot Market that's because it's more Than likely that the government would Sell its BTC during the Standard Market Hours from Monday to Friday I suppose We're going to find out Speculation aside BTC has broken below The key level of 27k and it's possible That it could fall as low as 24K in the Coming days this would amount to another 10 decline so plan accordingly On the off chance that BTC climbs back Above 27k it'll likely continue to Bounce between 27 and 29k so that's Bitcoin's price Dynamics but something Else is taking place on the network Itself which is causing quite a bit of Consternation As some of you may have heard or

Experienced personally the Bitcoin Blockchain has been super bloated lately Transaction fees have soared to levels Not seen since the previous bull market And there are hundreds of thousands of Pending transactions why Because memes now to put things into Perspective the blockchain bloat got so Bad that binance had to temporarily Pause BTC withdrawals twice so it could Increase the withdrawal fee on that note Binance temporarily pausing BTC Withdrawals likely contributed to last Week's downside volatility As always it was just fun Now all the excitement around brc20 Tokens and nfts had some fascinating Effects for starters it reignited the Debate of whether bitcoin's block size Should be increased to accommodate these And future use cases note that Institutions tried and failed to Increase bitcoin's block size back in 2017. speaking of which there have been Suspicions that the communities Belonging to the Bitcoin Forks that Arose because of the original block size Debate were purposely spamming the Original Bitcoin to make a point some Crypto researchers such as woo Blockchain actually found evidence of This potential plot additional evidence Can be found in the fact that some of These Bitcoin Forks started to Rally

Around the time that the Bitcoin Blockchain became unusable To be fair this evidence is Circumstantial and could simply be a Consequence of alternative Bitcoin Blockchains becoming popular thanks to All the hype regardless it's irrelevant Because spamming the Bitcoin blockchain In such a way is expensive and therefore Unsustainable what is relevant however Is the debate around the utility of the Bitcoin blockchain whether it ought to Be used purely for simple BTC Transactions or also for other things The consensus seems to be that the Proper place to process certain types of Transactions is layer 2 networks like The lightning Network which saw a spike In activity when the Bitcoin blockchain Became bloated on that note this Migration could be evidence that the Other Bitcoin Forks saw a similar Adoption effect more about the lightning Network in the description moving on So this begs the question of what Bitcoin's recent blockchain bloat means For BTC naturally the answer is nuanced Higher Bitcoin fees means that more Miners are incentivized to join the Bitcoin blockchain and thus make it more Secure however it also means that many Users are priced out even so the insane Gas fees we've seen on ethereum proves That there's no shortage of people

Willing to pay much more to trade meme Coins and nfts it also proves that these Higher transaction fees have a positive Impact on the price of the coin native To the blockchain being bloated be it BTC or eth come to think of it it's Possible if not likely that the meme Coin Mania on ethereum played a role in The Beacon Chain's recent breakdown as Most of you will know ethereum Experienced two finality issues last Week meaning that the beacon chain was Temporarily unable to fully confirm Transactions oddly enough the news had Next to no effect on eth's price in fact Eth actually increased in value relative To BTC on the same day the beacon chain Flood began this is either a sign of Commitment from the ethereum community Or a relative absence of institutional Investors it's probably a bit of both It's also possible that the flood was Offset by the announcement of ethereum's Next upgrade which developers have Dubbed dencoon It will Implement EIP 4844 which is Known as proto-dank sharding in short it Will increase ethereum scalability and Should also lower transaction fees on Layer twos it also confirms the fact That layer 2s are one category of crypto You have to watch before the next crypto Bull market comes along you can find out About the other categories using the

Link in the description now the good News is that ethereum developers Identified the source of the finality Issue and fixed it over the weekend if I Understand correctly it was related to The node clients used by some validators For reference the number of node clients On ethereum has been increasing in Recent months this is because there were Concerns that ethereum was losing its Censorship resistance some of you might Remember that almost 80 percent of all Blocks on the beacon chain were at one Time compliant with U.S sanctions thanks To the introduction of new clients this Figure stands at less than 30 percent as Of last week The bad news is that ethereum developers Had apparently been aware of the Finality issue for months this is Because a similar issue emerged during a Test net prior to the most recent Upgrade Some of you might recall that some Ethereum developers wanted to delay the Upgrade to work on it more in any case It's clear that the markets were never Seriously concerned about ethereum and That's extremely bullish and at the same Time all the activity on the beacon Chain has been burning eth to the point That it's become deflationary and this Trend is showing no signs of slowing Down

At this point the only thing that could Do any real damage to eth is a Regulatory Crackdown by the SEC which is Unlikely or an issue related to stable Coins this is because most stable coins Are on ethereum and are also heavily Used within ethereum's defy ecosystem This risk is more likely more on that Later For now though I want to turn the focus To a crypto project that caused chaos in Every D5 ecosystem and caused upwards of 83 billion dollars in damage I am of Course talking about Terror which Collapsed just over a year ago after its UST stablecoin depegged and entered a Death spiral that also took Luna to zero If you watched our video about terrorist Collapse you'll know that the d-peg Began when an unknown entity sold Massive amounts of UST on the curve Finance stablecoin decks multiple UST Whales including bankrupt crypto Platform Celsius subsequently began Mass Selling UST supposedly to protect users The key takeaway is that the individual Or institution which initially caused UST to depeg remains unknown now this Has been overshadowed by the allegations That Terra co-founder do Quan engaged in Some seriously Shady stuff including Stealing BTC That was supposed to be Used to protect ust's Peg doe had been On the run from authorities since May

Last year and yet he was somehow still Able to appear on podcasts and post on Twitter logically it didn't take long For the authorities to Zone in on his posting doe was arrested in Montenegro in March while attempting to Fly using fake documents then just last Week doe was released on bail along with Terror's Chief Financial Officer this Was expected given that FTX founder Sam Bankman freed had also been let out on Bail despite his alleged crimes The difference is that does bail cost Just 400k and he's under house arrest Doe also paid for his bail himself feel Free to look up who paid for spf's bail In your spare time now what's Interesting is that jump trading the Aforementioned Major Market maker was Recently accused in the United States of Allegedly making over a billion dollars Supporting UST and manipulating Luna's Price the tldr is that Doe gave jump Discounted Luna in exchange for Supporting ust's peg this is interesting Because some believed that jump trading Had been the unknown entity that Initially caused UST to depeg many Believed that spf's Alameda research Could have been the first mover but U.S Authorities are reportedly probing Alameda's plans to bail out Terror Before it collapsed hmm To my mind the first mover was likely

Associated with a centralized stablecoin Issuer this is because decentralized Stable coins are the biggest competition To centralize stable coins and UST was Surpassing them by market cap one by one Don't get me wrong Ust's growth was artificial and Unsustainable it's just awfully Convenient for centralized stablecoin Issuers that decentralized stable coins Have now been stigmatized both inside And outside of the crypto industry make No mistake a robust truly decentralized Stablecoin is necessary for crypto to Evolve otherwise it will just be Captured by tradify And this brings me to the tradify focus Of the day and that's the debt ceiling Debate in the United States if you Watched our video about the debt ceiling You'll know that the U.S government hit Its borrowing limit of 31 trillion Dollars back in January Since that time it's been spending money From its bank account at the FED now the Institution in charge of the U.S Government's bank account is the Treasury Department the person in charge Of the treasury is Janet Yellen and She's been warning for months that the U.S government's bank account will run Out of money She recently said that the first of June Is when the money will actually run out

If the US government does run out of Money it means it won't be able to Finance its public services including The military it also means that it won't Be able to pay the interest on the debt That it owes to all the investors who Hold U.S bonds a failure to pay this Interest is the definition of a debt Default this is a bigger deal than you Think because U.S bonds are considered To be the highest quality collateral in The financial system In other words most of the debts in the Financial system are backed by U.S Government debt this includes stable Coins which are backed mostly by U.S Government debt hence the risk to eth so What happens when the highest quality Collateral suddenly becomes lower Quality the honest answer is that nobody Knows because the U.S government has Never defaulted on its debt well it has But that's a topic for another time The last time it came this close however Was in 2011. the debt ceiling was raised At the last minute but markets still Crashed by almost 20 percent on the off Chance that the U.S government Technically defaults on its debt chances Are it would have a similar effect on The financial system as 2008. back then Mortgage-backed Securities I.E bundled Mortgages were considered Prime Collateral until they weren't and the

Markets imploded the FED also cut Interest rates to zero and started Printing unprecedented amounts of money And that's almost certainly how it would Respond to a technical debt default now In theory this would be bullish for Crypto but in practice it wouldn't be And that's because the major stable Coins would all lose their Peg what's Scary is that all of this Market Volatility Could Happen even if the US Government doesn't default as the first Of June deadline approaches stocks could Start to crash and stable coins could Start to de-peg if the crypto Market Perceives them to be at risk Circle has Already taken steps to mitigate this Risk this is why so many macro analysts Are scratching their heads about the Stock market's apparent unawareness of The gravity of the situation One of the only markets that is aware of This is the Foreign Exchange Market the US dollar has been gaining over the last Two weeks Let's just hope nothing happens Now before I analyze last week's top Performing cryptos I want to take a Closer look at btc's longer term price Action as you can see btc's weekly price Has historically respected the Bollinger Band moving average as a zone of support And resistance This moving average currently sits at

24K if btc's weekly price Falls below This level it means lower lows if it Stays Above This level then we could be In for another rally I won't go into the Exact specifics here but I encourage you To check out coin Bureau trading where Our in-house trading expert gives you In-depth analysis top right Now last week's top performing cryptos Were Carver Bitcoin SV Lido Finance una Said Leo and rocketpool A peculiar Combination and the discrepancy in their Price performance is likewise peculiar Cover up by around 40 but rocketpool is Up by only around one percent It's been a tough week to say the least So starting with Carver its Carver coin Appears to be pumping on the release of A new roadmap for Carver's evm Compatibility it focuses on increasing Adoption improving security and Expanding governance unfortunately Carver's long-term price action looks Abysmal and its shorter term price Action suggests it's facing significant Resistance around the key level of one Dollar which makes sense given how Overbought it's been don't be surprised If we see a reversal in the coming days Next up we have Bitcoin SV whose bsv Coin appears to be pumping because of The bloat on the original Bitcoin Blockchain unfortunately bsv's long-term Price action looks even worse than

Carver's it's in a very clear downtrend That's showing no signs of stopping for Lido Finance its ldo token is rallying On the approval of the liquid staking Protocols V2 upgrade which is expected To take place today this will allow Holders of Lido staked eth to unstake This could result in lots of each Selling considering that Lido is the Second largest staking pool on the Beacon chain a sell-off wouldn't be Surprising considering ldo's price Action is foreshadowing it it's Currently bumping up against a key zone Of resistance at around two dollars a Rejection to the downside could result In a significant drop a rally wouldn't Go nearly as high because there's lots More resistance As for UNIS said Leo meanwhile its price Action can't be properly analyzed Because its bitfinex's exchange token This means that its price action Ultimately depends on what bitfinex is Doing including its trading activity I Bet that last week's volatility Significantly increased trading volumes Among bitfinex Wales and finally we have Rocketpool whose RPL token didn't Exactly rally This makes sense considering I couldn't Find any Catalyst that would explain its One percent gain but then again a one Percent gain doesn't need much

Explaining I suppose RPL looks like it's ready for a Short-term correction for what it's Worth RPL remains in a medium term Uptrend which could continue so long as Liquid staking for eth stays popular Something tells me that this will be the Case for quite some time now if you want These updates of best performers on a Daily basis then you can get just that With our telegram Insider channel that Will be linked to in the description for You fine folks And a quick update regarding this week's NFA live stream Ben will be partying Hard at Bitcoin Miami come Thursday so We're going to move the stream to Tomorrow Tuesday just for this week Rob Will be hosting over on digital asset News and kickoff will be as normal 9 A.M Eastern 2 p.m GMT 5 p.m golf time normal Service will resume next week And that is all for today's coin Bureau Weekly crypto review so if you enjoyed It you know what to do hit that like Button subscribe button and the bell Icon too If you're looking to help those gains Grow then the coin Bureau deals page is Where you should go there are thousands Of dollars in bonuses trading discounts And products to help you trade like a Pro you can find the link to that Resource and many others in the

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