Crypto Scoop: Bitcoin Rebounds At $29,000 While Stakeholders Share Price Predictions

While bitcoin rebounds at $29,000, stakeholders share price predictions about bitcoin’s price movement. In this edition of the crypto scoop, we review the following:

• Price moves and predictions of top cryptocurrencies
• Balaji pays out his $1 Million Bitcoin bet
• Nigeria’s crypto and blockchain initiatives
• Crypto initiatives in Kenya and Montana

Price moves and predictions of top cryptocurrencies

During the week, BTC rebounded above $29,000 while ETH traded at $1,800. While bitcoin may be trading below the $30,000 benchmark, crypto service provider Matrixport predicted bitcoin could rally 20% to around $35,000 to $36,000. 

According to Matrix, BTC has been trading in a narrowing edge that is about to be broken to the upside. Matrix projects that Bitcoin would rise higher by an amount equal to when the wedge started to be formed, which was around the range of 20%. 

Head of forex research at the Standard Chartered Bank, Geoff Kendrick, predicted that bitcoin’s price would likely jump by $20,000 in the event of the US default on its obligations. He characterised the default as a “low-probability, high-impact event” but nevertheless noted the default would spur Bitcoin’s growth while the market was down. However, he mentioned that this price trajectory was limited to Bitcoin, and other cryptocurrencies may not rise while Bitcoin’s price surges.  

While Ethereum might be trading below $2,000, Ethereum’s network fees have experienced a significant rise since the Shanghai upgrade. In the last 30 days, on-chain fees have soared from $4.65 to $11.80 per transaction, a whopping 153% increase. The increase in the costs for network transactions indicates a significant rise in on-chain activity. 

Venture Capitalist Balaji Srinivasan Pays Out $1 Million Bitcoin Bet

In March, former CTO of Coinbase and Venture Capitalist Balaji Srinivasan predicted that Bitcoin’s price would hit $1Million in 90 days. Balaji explained that his $ 1 million gamble wasn’t about making money but settling an “ideological matter” surrounding U.S. dollar inflation.

This week, 45 days ahead, Balaji settled the high-profile bet. Balaji chose to donate a total of $1.5 million to 3 persons - James Medlock (hyperinflation doubter), Bitcoin core developers and a non-profit charity Give Directly.  Balaji  noted he did it because he believes “in the public good” and citizens can no longer “rely on the public sector.” 

He explained, “I settled the bet ahead of time and donated even more than I had committed. I’m not in the habit of publicly burning a million bucks. I spent my own money to send a provably costly signal that there’s something wrong with the economy and that it's not going to be a ‘soft landing’ like Powell promises — but something much worse.”  Balaji remains convinced that the economy will reach a state of hyperinflation, and investors will rush to secure bitcoin with the depreciating dollar and ultimately drive up the value of bitcoin. 

Nigeria Approves A Blockchain Bill To Spur Technological Growth

Nigeria's Federal Ministry has approved the National Blockchain Policy of Communications and Digital Economy (FMCDE) as the nation intensifies efforts to develop a blockchain-powered economy.

The government's adoption of the policy will open the door for the country, which has seen a lot of cryptocurrency development in recent years, to use blockchain technology formally. The FMCDE anticipates Nigeria's public and private sectors will benefit from its adoption. 

According to Bloomberg, the Nigerian Securities and Exchange Commission (SEC) is also considering enabling authorised digital exchanges to list tokens backed by specific assets. The Nigerian SEC intends to only permit listings of tokens based on assets like equity, debt, or property, according to Abdulkadir Abbas, head of securities and investment, thereby excluding cryptocurrencies like BTC and ETH. 

Nigeria  SEC intends to register fintech companies as digital sub-brokers, intermediaries for crowdsourcing, fund managers, and issuers of tokenised currency. According to Abbas, license applicants would go through a year of "regulatory incubation," which would give the SEC time to examine their business practices. 

Crypto initiatives in Montana and Kenya

The Montana governor, Greg Gianforte, has signed a bill into law that primarily bars local governments in the state from outlawing cryptocurrency mining. The legislation effectively enshrines crypto miners’ rights in the state by amending existing laws, banning discriminatory electrical rates for mining firms and not allowing taxation for crypto as a payment method.

According to a recently submitted bill, Kenyan legislators are considering imposing a 3% tax on cryptocurrency and nonfungible token (NFT) transfers and a 15% tax on online material that has been made for profit. The Finance Bill, 2023, part of Kenya's effort to regulate cryptocurrencies, would institute a tax on "income derived from the transfer or exchange of digital assets."