Crypto News: ETH Merge Risks, Terra LUNA, BUSD vs. USDC & More!!

Foreign [Music] Welcome to the coin Bureau weekly crypto Review here are this week’s top Headlines in the crypto news [Music] Crypto Market recap an overview of all The crypto and macro factors that move The market last week and what other Effects they could have in the near term Ethereum concerns developers discover Minor bugs during ethereum’s final Pre-merge upgrade and coinbase Preemptively Strikes against censorship On the beacon chain everything you need To know Crypto regulations incoming the SEC Announced two crypto-specific Departments as chairman Gary Gensler Reiterates that most coins and tokens Are illegal Securities when could the Crackdown come Busd versus usdc Binance announces that it will be Phasing out support for competing stable Coins at the end of the month Foreshadowing the same for the tethers Usdt here’s why this is so significant ECB raises rates the European Central Bank raises interest rates in the Eurozone above zero percent for the First time in over a decade how long Will the ECB and other central banks Continue in this vein

Energy squeeze Russia confirms that it Will keep a major pipeline shut until Sanctions are lifted leading to fears That inflation could continue to spike What could it mean for the crypto Market And a closer look at last week’s top Performing cryptos and where they’re Headed next all this and More in just a Moment [Music] Good morning afternoon or evening thank You for tuning in my name is guy and What you’re about to see is educational Content not Financial advice you can Find any topics you’re looking for using The timestamps in the video timeline and Now for today’s top stories Last week the crypto Market experienced Some of the most volatile price action In recent memory on Monday the market Collapsed with BTC dropping down to 18 And a half K in the 24 hours that Followed what’s fascinating is that the Stock market was trading sideways during This period this suggests that the cause Of the crypto market crash was specific To the crypto market and not a macro Factor The sudden downside move last Monday was Likely caused by a combination of Over-leveraged crypto Traders getting Liquidated and the absence of Institutional trading volume due to the Labor Day holiday in the United States

And elsewhere The continued crash on Tuesday was Likely caused by uncertainty around Ethereum’s Bellatrix upgrade and some Hiccups that were discovered during that Upgrade I’ll come back to that in a Moment Come Wednesday the crypto Market had Started to recover and this seems to Have been caused by a macro Factor since The stock market started to Rally around This time as well it’s actually not Quite clear what macrofactor caused the Markets to Rally but it could be Anticipation of the possibility that the CPI for August set for release this Wednesday will come in lower than it did For July if it does the markets will Continue to Rally if not another crash Is more than likely There were also a couple of Crypto-specific factors at play in the Latter part of last week besides Concerns around the merge being ease Coinbase also announced that it would be Backing a lawsuit against the U.S Department of the treasury over its Sanctions of controversial privacy Protocol to a NATO cache this was likely Taken as a Sign by crypto investors that The crypto industry is willing and able To fight back against any unreasonable Regulations that could come after the Merge is complete and if you’re

Subscribed to My Weekly Newsletter You’ll know what I’m talking about link Is in the description Now to put last week’s crypto price Action into perspective bitcoin’s BTC Rallied by nearly 20 percent from around 18 and a half K up to almost 22k this Kind of volatility is not nearly as Common as it once was and the volatility For most altcoins was much larger Now this reminds me of something that Another crypto YouTuber named Bob Lucas Once said in one of his videos the Volatility of the crypto Market will be Unprecedented as it approaches the top With double-digit swings to the upside And downside now obviously the crypto Market is nowhere near the top but Ethereum’s eth seems to be gearing up For a massive post-merge rally As I mentioned in our recent video about How low the crypto Market could go eth Seems to be following btc’s historical Price action just one cycle behind if This is the case then Bob’s assessment Of massive swings as we approach the top Could very well apply to eth at the Present time though I’ll reiterate that We’re unlikely to see a new all-time High anytime soon it just means that eth Could be a lot more volatile than Investors are currently expecting Unprecedented eth volatility makes sense When you consider that ethereum’s

Transition from proof of work to proof Of stake is considered by many to be one Of the most if not the most complex Upgrades in the history of software As such there is a non-zero chance that Something could go wrong and the Aforementioned snags discovered during The Bellatrix upgrade have many Concerned that ethereum’s developers Might be recklessly rushing the merge The tldr is that five percent are Validators on ethereum’s Beacon chain Went offline resulting in around 10 Percent of ethereum blocks being missed For a short period of time gnosis Founder Martin koppelman speculated that These Mist blocks could have actually Been due to the fact that around a Quarter of ethereum clients were not Ready for the merge at the time of Shooting around 16 of ethereum clients Are still not ready for the merge Despite the fact that the merge could be As little as 48 hours away This could foreshadow more issues Now I’ve also seen lots of concerns on Social media that some ethereum miners Might try and act in a malicious manner During the merge though I’ve yet to see Any concrete evidence of this if you Have please let me know in the comments Section Another cause for concern is all the Leverage that etholders are taking on by

Borrowing more eth against their eath Holdings in a bid to get even more of Any eth from the proof of work Forks That aren’t likely to occur because of Rogue ethereum miners Some D5 protocols like are they have Taken precautions to ensure there are no Concerning on change Shenanigans but Other D5 protocols have not What’s more is that these other D5 Protocols are not nearly as well known Again increasing the risks of an issue Occurring on chain And then there’s something I mentioned a Few moments ago and that’s coinbase’s Backing of a lawsuit against the U.S Treasury Department over its tornado Cash sanctions if you watched our video About the tornado cash sanctions you’ll Recall there are some serious concerns That ethereum validators based in the United States could be forced to apply Sanctions regulations and other U.S laws At the protocol level coinbase CEO Brian Armstrong responded to this possibility By saying the exchange would either stop Staking eth or fight protocol level Censorship in court This is why coinbase is moved to back The lawsuit is so significant it Arguably confirms that there is a risk Of protocol level censorship post-merge The risk of crypto regulations in General has been rising ever since the

Crypto Market crashed in May as a result Of terrorist collapse and since that Time Terrace collapse has been Frequently cited as the justification For a crypto Crackdown in many countries If you watched our video about the Upcoming retail crypto investor ban You’ll know that the real crypto Crackdown will likely come later this Autumn when another crash happens retail Investors finally capitulate and the Disgruntled ones call for Regulators to Take action against crypto assuming this Happens we will get to witness the full Force of Michael Barr the recently Appointed Vice chair of supervision at The Federal Reserve who is extremely Anti-crypto This is a problem because Michael’s job Is to give regulatory recommendations to U.S politicians about the financial System what’s crazy is that Michael Barr Was the architect of the Dodd-Frank Act Which created the position of Vice chair Of supervision at the FED following the 2008 financial crisis It really looks like Michael has set Himself up to make full use of the Powers he created when the next Financial crisis comes around I’ll be Doing a video about Michael and his Anti-crypto plans later this week so Stay tuned for that Now while we wait for the next market

Crash to come we get to sit and Speculate which cryptocurrencies the Securities and Exchange Commission or SEC will Target in the next two weeks as Its fiscal year comes to an end and the Regulator engages in more important Actions to justify its budget SEC chairman Gary Gensler has made it Clear on many occasions that the only Cryptocurrency that’s safe from the Regulator scrutiny is bitcoin’s BTC as Far as Gary and the Gang are concerned Almost every other cryptocurrency is a Security and therefore requires strict Regulation As we’ve seen with xrp any crypto that’s Targeted by the SEC will be delisted From cryptocurrency exchanges in the United States and the company behind the Crypto project along with its Founders Will likely get hit with a large fine So far it seems the only thing that’s Been protecting the crypto industry is The fact that there are too many coins And tokens for the SEC to regulate Individually That’s why the SEC has apparently opted To go after crypto exchanges instead and We could see some serious enforcement Actions there soon Even so the recent establishment of two Dedicated crypto offices at the SEC Along with the continued expansion of The regulator’s crypto-specific

Personnel suggests that we’re more than Likely to see enforcement actions Against individual crypto projects as Well As it so happens the sec’s number one Crypto Target is stable coins which Gary Somehow believes to be Securities even Though there’s no expectation of profit To be had in an asset that maintains a Stable value Unfortunately it doesn’t change the fact That the SEC is likely to go after Stable coins at some point and this Looks even more likely Than Ever After Binance announced it would be converting All usdc usdp and TUSD stable coins on The exchange into B USD at the end of This month Binance also announced that it will be Removing all usdc usdp and TUSD trading Pairs on the exchange note that these Stable coins will automatically be Converted into busd and any open trades Involving these stable coins will be Automatically closed and liquidated in The case of Leverage trades Now if you watched our video about the Assets backing stable coins you’ll know That binance’s busd is issued by paxos a Fully regulated Trust Company in the United States which seems to have the Best track record as far as stablecoin Reserves go You’ll also know that Circle 2 is based

In the United States and its usdc Stablecoin has come to have the same Kind of high quality reserves as paxos’s Busd albeit with slightly less Regulatory oversight The same is true for True USD and its TUSD stablecoin by contrast tether is Not based in the United States and Though the reserves backing its usdt Stablecoin have been improving they are Not nearly of the same quality as its Competitors This has resulted in lots of regulatory Scrutiny from the United States and Other countries Now as it so happens binance confirmed To coin Telegraph shortly after its Stablecoin enhancement that the exchange May eventually apply the same Auto Conversion to tethers usdt What this means is that binance has Effectively declared war on all other Stablecoin issuers and that is a very Big deal This is why it’s so odd that Circle CEO Jeremy alaire said that binance’s auto Conversion of usdc into busd is a good Thing for usdc Consider that most active usdc trading Pairs are on binance so eliminating them Almost guarantees that usdc’s liquidity Will be significantly reduced That said there is one very important Factor that could protect exchanges and

Stablecoin issuers and that’s the Adoption of US dollar stable coins which Continues to accelerate as inflation Continues to rise around the world and Foreign currencies continue to collapse Against the Greenback For those who don’t know most stable Coins are backed by U.S government debt And this means they’re the perfect way For the U.S government to subsidize its Spending some would say it’s the only Way given that historical bulk buyers of U.S treasuries like China aren’t too Keen on buying these days if you watched Our video about Europe’s upcoming crypto Regulations you’ll know that the European Central Bank or ECB is acutely Aware of the threat that the adoption of US dollar stable coins poses to the euro Especially as the Euro continues to Collapse in value against the dollar Besides the economic issues that the Eurozone is facing as a result of Sky-high energy costs another driver of The Euro’s depreciation has been The Ecb’s Lax monetary policy which saw Interest rates drop to zero and then go Negative during the European debt crisis In the early 2010s not surprisingly Dropping interest rates to zero caused The cost of housing in Europe to go off The charts as informed investors took on Massive amounts of debt to invest in Real estate

Institutions also took on record levels Of Leverage to grow and speculate Including many European Banks the ecb’s Recent decision to raise interest rates By a whopping 75 basis points could Therefore spell Doom for all the Over-leveraged entities in Europe the Same way the fed’s massive rate hikes Will spell Doom for over leveraged Entities in the United States except Worse The catch is that it takes time for the Monetary policy of central banks to be Felt in the real economy the rule of Thumb is that it takes about a year for Interest rates to squeeze individuals And institutions and the only reason the Markets crash right away is because Investors are pricing the future The thing is that Europe the United States and most of the rest of the world Are already on the brink of a recession If not in one already Raising interest rates into a recession Is basically guaranteed to do even more Economic damage the full effects of Which will not be felt until later next Year at the earliest What this means is that we’re likely to See something much more serious than Another Garden variety recession and Some economists believe it could be just As bad if not worse than the Great Depression that happened over 100 years

Ago the Silver Lining is that this Period of economic pain should only Affect the stock market and crypto Market for the next two years or so Which is coincidentally consistent with The length of previous crypto bear Markets interesting given that crypto Has become heavily correlated with Stocks If you’re wondering why central banks Are raising interest rates so Aggressively the answer is of course Inflation caused by Rising energy costs Around the world especially in Europe Where Russia just confirmed that it will Be keeping the Nordstrom pipeline shut Until sanctions are lifted To clarify there is still some gas Making its way into Europe from Russia Through other pipelines and it appears That Europe continues to purchase Russian oil and was purchasing Russian Coal until just a couple of weeks ago What this means is that Putin could Still bring more pain to Europe as Winter approaches and the recently Passed proposal by G7 countries to put a Cap on Russian oil come December seems To have guaranteed that Russia will pull The plug on other resources Europe Requires for energy What’s especially concerning is that the U.S treasury Department warned that the United States will sanction any

Individual institution or nation-state That makes quote significant purchases Of oil above the price cap imposed on Russian oil If you watched our video about the Effects of Russian sanctions on the Economy and cryptocurrency you’ll know That these activities are only Increasing the likelihood that countries Will opt to break away from the Western World Order and Ally themselves with Russia China India and others in the East This will further complicate Supply Chains creating a level of inflation That’s likely to persist even after the Energy crisis has ceased and at this Rate it looks like the energy crisis is Going to get much much worse before it Gets better the effects this will have On crypto are straightforward it’s going To be really really bad because central Banks will continue to raise interest Rates to crush demand to the point that It comes in line with the limited supply Of energy to paraphrase fed chairman Jerome Powell The wild card in this equation is that Sanctioned countries could start Adopting cryptocurrency to continue Their International operations something That the Iranian government had earlier Announced it would start doing this Month

Although this means that crypto is Likely to come under even more scrutiny It will simultaneously prove that crypto Can be used on an international scale This could set the stage for adoption by Other countries facing similar economic Pressures Turning to the charts we can see that BTC has reclaimed a critical level at Around 21k which has served as both Support and resistance in the past If we can break above it I expect to see A retest of 24K and it’s more than Likely we will break through it and test 30k if the CPI figures for August come In cool Last week’s top performing altcoins were Terror Terra classic USD ravencoin Terra Classic and helium this is honestly the Most ridiculous lineup I’ve ever seen to Date but let’s roll with it so let’s Start with terra terra classic and Terra Classic USD If you watched our video about terrorist Collapse you’ll know that Luna now named Lunk and UST now named ustc entered a Death spiral due to terra’s unstable Mint and burn mechanism Luna was Subsequently revived without UST According to cointelegraph lunk and ustc Are rallying because of the incredibly High staking rewards on Terra classic And a recently passed transaction fee

Burn mechanism that has turned lunk into A deflation recurrency Finance also recently listed lunk which Is Peak cryptocurrency so to speak However this doesn’t change the fact That terra’s ecosystem has moved on be It to the new Terror chain or to other Smart contract cryptocurrencies like Polygon where many developers and Projects have migrated and that means That lunk and ustc’s recent price pumps Are nothing more than speculation The only bullish price action I see for These cryptocurrencies is for the new Luna which appears to be forming a bull Flag on the daily That Could See It Go As high as 10 dollars Just bear in mind it’s very unlikely That this bull flag will play out and It’s more than likely you will get Wrecked if you try and trade it Next up there’s ravencoin whose rvncoin Appears to be rallying on the Speculation that some ethereum miners Will switch to mining rvn to make up for Their missing profits There have also been a few developments Around Hardware wallets and nfts for Ravencoin rvn looks like it’s running Out of steam as it’s struggling to get Above that massive zone of resistance Around the five cent level with some Luck it’ll rally up to the seven and a Half cent level in the coming days on

The back of some ice cold CBI statistics Don’t quote me on it though And finally we have helium whose hnt Coin took a nasty tumble after its Developers proposed migrating the crypto Project from its own blockchain to the Solana blockchain Funnily enough hnt seems to be rallying In anticipation of the vote on the Government’s proposal which will start Later today Similarly to rvn hnt looks like it’s Pretty deep in the hole and will be Lucky to push past all the price Resistance between seven and eight Dollars 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 Bell icon Too If you’re looking to maximize your gains During the bear Market the coin Bureau Deals page is where you should go you Can find the link to that resource and Many others in the description below Thank you so much for watching and I Will see you all in next week’s episode Foreign