Major News in Crypto That You Don’t Know About


Huge buying pressure is coming

Photo by Roman Kraft

If you’ve been watching the news you saw a major blow to the crypto industry in the U.S. last week.

The crypto market faced a chaotic situation as a key banking partner, Signature Bank, was shut down by the FED. Another big loss since the industry lost two key banking partners (alongside Silicon Valley Bank) in less than a week.

But the bad news let the good news go unnoticed.

Binance, one of the largest crypto exchanges, announced that it will convert the remaining $1 billion from its Industry Recovery Initiative Fund from BUSD into Bitcoin, Ethereum, and Binance Coin.

This might be equivalent to a stock buyback.

This could mean massive buying pressure on these coins. But not in the way you think. The impact will be more of a sentiment shifter than anything else.

In the short term, this announcement could mean a positive price movement for BTC, ETH, and BNB. That’s all rainbows and unicorns.

In the long run, it will bring a positive feedback loop into the market.

As we saw in other cases such as MicroStrategy, Tesla, and other major companies buying tons of BTC, the price increased significantly.

When others realize that there’s going to be less of that coin, they start buying in.

There’s a finite supply of bitcoin (21 million) and even if you know that, many still don’t. So what happens when they see prices going up and realize it’s getting scarcer by the day? FOMO in.

Unlike stocks, you can’t create more Bitcoin over the 21 million limit.BNB is also finite, limited to 200 million, and with its burning rate between 0.5% and 2%, the maximum supply will be limited to 100 million.Although Eth’s supply is not fixed, after the merge the issuance dropped by 88% and the total supply is going down by at least 0.14% making it deflationary. Here’s how it’s becoming ultrasound money live.

The more people realize this, the more they’ll want to come in.

As banks continue to collapse, more people will turn to alternatives to the traditional financial system.

And this also means self-custody.

We need control over our assets. To avoid the pain of seeing our savings disappear in front of us because of the bank’s mismanagement, people will turn towards complete control and ownership of what’s rightly theirs.

With self-custody, we make it less likely to be impacted by bank failures.

You can start by looking at Trezor One (cheaper) or Trezor T (advanced wallet) to get an idea. I’ve been using it for a while and it’s giving me a piece of mind in times like these.

And self custody also comes with greater privacy and security. As we deny entrusting our private information or funds to a third-party entity, we put our terms and conditions to the game.

Crypto adoption is increasing worldwide as more people and institutions recognize the potential benefits of blockchain technology, especially in the current worldwide circumstances.

The current adoption of cryptocurrencies is at 4.2% with 420 million users across the globe.

Where do you think news like this will take us from here on?

Note: this is not financial advice. You should always do your research before making any financial decisions. You should also know that this article contains referral links.



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