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Charles Edwards, Capriole Fund founder and Bitcoin analyst, foresees a major catalyst that might boost Bitcoin's price in 2023. The year 2022 was a rough one for cryptocurrencies, marked by falling prices after the Fed introduced restrictive monetary policies by hiking interest rates.

Most recently, the Federal Reserve moved to increase its benchmark interest rate by 25 basis points on Wednesday, which caused a drop in cryptocurrency prices. The Fed has now implemented a steady barrage of 10 straight interest rate increases since March 2022 to temper an overheating economy and control skyrocketing prices.

Edwards, in a new tweet, expressed the possibility of rates not going higher because the system was on the verge of breaking.

He tweeted, "The only way the Fed can compete with Bitcoin is higher rates. But rates can't go any higher because the system is breaking. The unwind will be relentless."

The idea that the Fed would suspend rate hikes soon or possibly decrease interest rates later in the year has contributed to Bitcoin's over 70% year-to-date gains.

This is so because traders tend to steer clear of "risky" investments like cryptocurrencies when they anticipate the U.S. central bank maintaining its hawkish monetary policy to contain inflation.

In the past week, Bitcoin mounted another attempt to surpass the closely watched $30,000 level, but bulls did not succeed.

Bitcoin's (BTC) price fell to lows of around $28,394 on May 6 and remains down 1.42% in the last 24 hours to $28,880.

According to Glassnode's most recent weekly report, the market has firmly recovered from the historical bottom discovery phase of the 2022 bear.

Selling pressure from new investors is now a key driving force that established resistance at $30,000. Should this present correction continue, the cost basis of the young supply holders at $24,400 may well be a psychological level to watch in the weeks ahead, Glassnode stated.

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Bitcoin: Here's What Might Push BTC Price Higher, Analyst Says - U.Today

The crypto industry in the United States has been negatively affected by regulatory uncertainty and scrutiny. This has been a major barrier to its growth. Despite the industrys efforts to establish itself, certain digital assets are still unsure about their regulatory status. Currently, assets like Bitcoin [BTC] and Ethereum [ETH] have been dragged between the Securities and Exchange Commission [SEC] as well as the Commodity Futures Trading Commission [CFTC]. Amidst this power struggle, investors have been seeking alternative investment options.

In a recent report, JPMorgan analysts pointed out how institutional interest was moving to gold. The regulatory crackdown has discouraged institutional investors from engaging with the crypto industry. As a result, investors are opting to buy gold instead of Bitcoin as a hedge. This is against a potential catastrophic scenario in the event of the descent of Silicon Valley Bank.

The report suggested that regulatory uncertainty has caused people to lose confidence in the digital asset industry and seek safer investment options.

JPMorgans research report highlighted that Bitcoins rally in 2023, has been largely fueled by retail buying rather than institutional investors. The report suggested that due to the regulatory crackdown and uncertainty in the industry, institutional investors have been dubious to invest in the sector. Despite this, Bitcoin has still managed to gain 76% year-to-date. Gold, on the other hand, hit a new all-time high.

Several U.S.-based crypto firms are currently under immense scrutiny. Ripple, Coinbase and now Binance have been facing the heat of regulators in the region. Amidst this, several have decided to veer out of the region. Elaborating on the same, the JPMorgan report said,

The U.S.-based arm of Binance has called off its deal with Voyager, while Coinbase launched Coinbase International, a crypto derivatives exchange outside the U.S., as a proactive measure in response to rising U.S. regulatory pressures.

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Gold Over Bitcoin? This Could Be the Case Amidst U.S. Regulatory ... - Watcher Guru

Increasing regulatory pressures, tax burden and energy costs in countries like the U.S. and Kazakhstan are likely to result in a new great migration of crypto miners, Russian analysts believe. Under such a scenario, Russia has what it takes to occupy up to 18% of the global bitcoin hashrate, they claim.

The Russian Federation has a chance to increase its leadership in the field of crypto mining, against the backdrop of negative developments for the industry elsewhere. According to specialists from Intelion Data Systems, a major Russian importer and distributor of mining hardware, the countrys share in the Bitcoin hashrate can potentially reach 18%.

As of January 2022, Russia accounted for nearly 4.7% of the global hashrate, according to calculations by the Cambridge Center for Alternative Finance, ranking fifth among major mining destinations. However, the toughening of policies towards the sector in the leading countries can spark another major migration of miners, similar to the one that followed Chinas crackdown on the sector in 2021.

New restrictions on access to low-cost energy amid rising electricity rates and the introduction of higher taxes may entail the relocation to Russia of up to 6% of the mining capacities of the United States, Canada, and China as well as about half of the miners from Kazakhstan, the Intelion team projected, quoted by the crypto page of the Russian business news portal RBC.

In this case, Russias share in the global Bitcoin hashrate could rise to 18%, which will amount to 3.95 GW of electricity consumption with an average cost of 128 billion rubles (almost $1.7 billion). In April, the leading Russian mining operator, Bitriver, estimated that Russia has already climbed to second place in terms of total power capacity of the facilities engaged in the extraction of digital currencies. Timofey Semyonov, CEO of Intelion Data Systems, commented:

Russia has every opportunity to change the existing hierarchy of the global crypto mining market. The country has everything you need for this: low cost of electricity, reserves of free capacities, developed energy infrastructure in many regions.

Semyonov also highlighted the increased efforts of a number of Russian companies to expand their business as well as government support for the industry. While lawmakers are yet to adopt the long-awaited mining legislation, official statements in Moscow have indicated that Russian authorities intend to utilize what President Putin described as Russias competitive advantages as a mining hotspot.

To create a favorable investment climate, mining in Russia must become a legal business activity with clear rules of the game, the experts from Intelion also said. They think that the crisis in the banking sector in the U.S. and Europe, which is just beginning, will be leading to a growing demand for bitcoin as a hedging tool and interest in crypto among traditional financial institutions which should result in increasing global mining volumes.

Do you agree that Russia has the potential to become a leading crypto-mining destination? Tell us in the comments section below.

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchenss quote: Being a writer is what I am, rather than what I do. Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Russia May Take Up 18% of Bitcoin Hashrate in Next Big Migration ... - Bitcoin News

Bitcoin (BTC) saw fresh volatility on May 6 as low-liquidity weekend trading tested the mettle of its trading range.

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dropping by over $1,000, or 3%, in a matter of hours on the day.

The largest cryptocurrency saw volatile conditions typical of weekend trading but could not exit a broader corridor in place for several weeks.

Amid a lack of ammunition to either clear the $30,000 resistance or drop toward key trend lines near $25,000, BTC/USD frustrated market participants.

Bitcoin really is in limbo right now and doesnt know what to do .. I am back out of a position and just waiting again for one side of this range to break to re enter, popular trader Crypto Tony told Twitter followers.

An accompanying chart showed potential targets in the event of a bearish breakdown.

An additional analysis released earlier in the day repeated previous predictions of $32,000 coming into play should bullish momentum return.

In separate coverage, fellow trader CryptoBullet described the days losses as nothing special.

Final dip before the breakout, part of the commentary argued, with a chart presenting BTC/USD in a narrowing wedge with a decision on exit trajectory due.

As ever, longer timeframes were a cause for more optimistic views.

Related:Bitcoin trader eyes $63K BTC price for new Bollinger Bands breakout

Analyzing the weekly chart, analyst Gert van Lagen flagged the 200-week simple moving average (SMA) as the resistance line to clear next, with Bitcoin possibly completing a bullish inverse head and shoulders chart pattern.

Trader and investor CryptoAce highlighted a large weekly resistance zone for bulls to tackle.

Stay below and $24k is where price will be trading in some weeks imo, part of an update on trading activity read on the day.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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Watch these Bitcoin price levels next as BTC dips 3% in choppy weekend - Cointelegraph

Jack Dorsey speaks at an event he co-organized in Costa Rica with Alex McShane (center) to meet with other users of the Nostr decentralized social media platform.

Twitter co-founder Jack Dorsey is proving just how serious he is about bitcoin and the future of social networks with a $10 million donation to the non-profit OpenSats, which says it will use 100% of the funds for both purposes, without taking a cut for itself.

Dorsey announced the donation$5 million of which is set aside to fund development of a social protocol called Nostron Nostr itself earlier today. After being quietly developed by a pseudonymous creator known only as @Fiatjaf, the network, or protocol as it is more properly called, has exploded to 16 million users, 500,000 of which are daily when they created a way for software developers to integrate bitcoin payments into their applications.

Prior to leaving Twitter in May 2022, Dorsey had conceived of and invested $13 million into a similar open-source social protocol that would let users move their profiles between competitors, now being developed by a team called Bluesky. Though hed previously given @FiatJaf 14 bitcoin worth a little over $200,000 at the time it was donated, this latest infusion will level the playing field and reduce any sense that hes picking favorites in his mission to out-compete Twitter. While OpenSats didnt respond to Forbes requests for comment, Dorsey responded with Morse code to our question on Nostr asking him what he hoped OpenSats would be able to accomplish with the money?

Jack Dorsey's reply in Morse code to Forbes senior editor Michael del Castillo's request for comment.

Weve translated his reply below. That bitcoin becomes the native currency of the internet, and the internet gets a native protocol for social media. He did not answer our question as to whether or not he plans to write off the donation.

The Raleigh, North Carolina-based OpenSats received its 501 c (3) non-profit status in 2021, according to non-profit data site Charity Navigator. Most of the data about non-profits that Charity Navigator offers, such as how much of historical donations have been used for the non-profits actual mission compared to the cost of running the organization, are unavailable, as the OpenSats filed reduced paperwork required for organizations with less than $200,000 of annual revenue.

As part of Dorseys donation, OpenSats says @Fiatjaf and another Nostr user using the pseudonym NVK will join a committee to help evaluate projects, according to a statement released by the non-profit. NVK and a user identified as Gigi are joining the board. We believe that free software and open protocols are necessary for a free and prosperous society, according to the statement. Without software that protects the individual user's rights and freedoms, and without digital infrastructure that is open to all, modern society risks slipping further into digital totalitarianism.

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Jack Dorseys Former Boss Is Building A Decentralized Twitter

The OpenSats website says the organizations mission is to support and maintain a sustainable ecosystem of funding for free and open source projects and contributors, especially Bitcoin BTC related projects and projects which help Bitcoin flourishOpenSats will fund software developers, but also designers, reviewers, researchers, educators, and others who support these free and open source tools.

The organization has previously funded 21 teams, including the Bitcoin Policy Institute, which just hosted an invitation-only event in Washington that touted attendees from Capitol Hill, BTCPay Server, a payment processor hosted by the people who use it, and the Tor Project that develops the Tor browser used by the governments and criminals alike to protect their anonymity. Funds include an operations budget to help run the non-profit and a legal defense fund to help open-source developers in court. Its unclear if this is the same fund Dorsey said he would create to help pay legal expenses of bitcoin developers being sued for their work.

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Jack Dorsey Donates $10 Million To Turn Bitcoin Into 'The Native ... - Forbes