The bustling world of Bitcoin (BTC) is once again in focus, with the currency seeing many setbacks and wins. Today, Friday, the price of Bitcoin rose by 1.5% to $26,289, but the price was not the only thing that made headlines, as a recent study by the International Monetary Fund (IMF) warned of the potential risks of digital currencies to global financial stability.
On the other hand, Ark Investment expressed concerns about continued macroeconomic challenges that could potentially hinder Bitcoin's upward momentum. This comes as industry giants Jay-Z and Jack Dorsey expand into Africa, enhancing Bitcoin skills and capabilities on the continent.
In light of all these developments, the cryptocurrency community remains excited because of the news about Ryan Salame - one of the former managers of the FTX platform - who is expected to pay $1.5 billion in a legal settlement .
A study from the International Monetary Fund shows the risks of using digital currencies to financial stability
In a report issued on September 7, global regulatory bodies, including the International Monetary Fund (IMF), collectively expressed their concern about the potential risks that would arise from the widespread adoption of digital currencies. They noted that although these digital assets offer advantages such as faster and lower cost international payments, many of these advantages are not fully realized.
In addition, their concerns revolve around the possibility that the general adoption of digital currencies will destabilize the effectiveness of monetary policies, bypass the procedures for managing financial flows, exacerbate financial risks, and divert resources away from the real economy, and therefore this may pose a threat to the stability of the global financial system.
The report also highlights the lack of a clear tax classification for crypto assets within the current legal frameworks. In order to address these concerns, the report calls for the development of a roadmap for mitigating these risks and setting timelines for implementing proposals put forward by the Financial Stability Board and the International Organization of Securities Commissions (IOSCO).
But despite this report, the price of the BTC/USD currency pair continued to rise on Friday.
Bitcoin Uptrend in Danger: ARK Investments Views Macro Headwinds
In a recent report, ARK Invest - which manages $13.9 billion in assets - expressed concerns about the macroeconomic impediments that could impact the cryptocurrency market during the remainder of 2023. Although ARK is considered a strong supporter of cryptocurrencies, However, it sees potential challenges in the near term.
This cautious stance is due to several reasons, such as interest rates, gross domestic product (GDP) estimates, unemployment rates, and inflation. The company also noted that the Federal Reserve's tight monetary policy - referred to as its "natural interest rate" - may put pressure on lending and borrowing rates. Furthermore, ARK expects inflation to slow, which could lead to a negative macroeconomic outlook.
It should be noted that what added to their concern was the divergence between the ratios of real GDP (GDP) and gross domestic product (GDI), as well as negative revisions to US employment data. The company also highlighted the possibility of a "recession", where increased consumer spending could lead to an increase in inflation again.
Accordingly, this news may lead to increased uncertainty in the cryptocurrency market today, which may prompt some investors to take the side of caution, given the concerns raised by a prominent investment company such as ARK.
Jay Z and Jack Dorsey join forces to support BTC talent in Africa
In a recent move, Btrust, a Bitcoin-focused non-profit organization founded by Jay-Z and Block CEO Jack Dorsey, has acquired Qala, an African company that specializes in training Bitcoin developers and Lightning network engineers. Network). The acquisition will integrate Qala into the Btrust Builders program with the goal of supporting Bitcoin developers' efforts in Africa.
While Btrust, which has the financial resources, needs the talent structure, Qala, which has the required infrastructure, lacks a sustainable source of funding, relying mainly on grants, including a $100,000 contribution from the Human Rights Foundation. .
Today, we are thrilled to share a monumental story in our journey. We have officially become part of ₿trust @btrustteam!
This has led to our rebranding as ₿trust Builders - marking a pivotal shift in our operations to focus on open-source training in Bitcoin and Lightning. pic.twitter.com/kjSkpv8Sbc
— Btrust Builders (@btrust_builders) September 5, 2023
The new program, led by Qala CEO Femi Longe and Program Director Stephanie Titcombe, will focus on open-source training and the participation of African software developers with experience in developing the Lightning Network and the Bitcoin blockchain.
These promising developments may improve the positive BTC/USD price trajectory, as they indicate increased support for cryptocurrencies in Africa.
Ryan Salameh, former manager at FTX, may lose $1.5 billion after pleading guilty
In other developments, Ryan Salame, one of the former FTX directors primarily responsible for the company's political fundraising activities, has pleaded guilty to federal criminal charges against him. He also admitted that he was a "face donor" working as a front to funnel millions of dollars to the Republican candidates, while FTX founder Sam Bankman-Fried was supporting the Democratic candidates.
In addition, Salameh's guilty plea included charges of collecting illegal donations and operating an unlicensed money transfer company, which resulted in the forfeiture of funds exceeding $1.5 billion; At first, about $6 million will be confiscated, along with a number of assets such as real estate and a Porsche. And if all these required conditions are met, he can avoid confiscating his money completely.
Investors will closely follow the recent developments of the FTX case, which may not be directly related to the price movement of Bitcoin, but it does affect the general mood of the cryptocurrency market.
Bitcoin (BTC) price forecast
Bitcoin price (Bitcoin-BTC) witnessed a cautious rise, as it is now trading above the $26,000 level, while its movements show possible recovery patterns, but the resistance level at $26,500 still poses a challenge to the bullish price movement.
Recently, Bitcoin succeeded in overcoming its downside path, and is now making its way inside the resistance areas with pivot points at the levels: $26,400 and $26,500. If the price succeeds in stabilizing above the last level, this will result in a strong upward movement, targeting the BTC/USD pair at $28,000.
On the other hand, if Bitcoin faces difficulty at $26,500, this will increase the possibility of the price correcting downwards, with the pair’s closest support remaining at $26,100 and $26,000. A breach of the aforementioned support levels could lead to increased selling pressure, which will push the price towards $25,500 or even $25,350.
