Month: May 2025

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How Bitcoin Reacts to Global Rate Cuts and Central Bank Policies

May, 2025
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| Bitcoin

Central banks worldwide are gradually shifting from stringent monetary policies to more flexible practices, raising the question: What does this mean for Bitcoin? Conversely, the European Central Bank (ECB) is under intense pressure to lower rates amid stagnating growth and low inflation. Indeed, the implications for Bitcoin are becoming increasingly compelling.

The perception of Bitcoin as a bulwark against inflation and debasement has made it increasingly relevant in global monetary discussions. Decisions from the Federal Reserve, ECB, Bank of Japan, and People’s Bank of China are no longer just influencing bond markets — they’re directly impacting crypto markets.

“Bitcoin is a macro asset now. You can’t talk about liquidity cycles without considering its reaction anymore.”
— Raoul Pal, CEO, Real Vision

From Tightening to Easing

After a prolonged period of higher interest rates due to tariffs and central bank tightening, pressure from softening labour markets and cooling inflation is now pushing many banks toward rate cuts in the second half of 2025.

This shift injects liquidity into markets, historically boosting assets like Bitcoin. Notably, China’s monetary easing on May 7, 2025, led to a surge in the prices of Bitcoin and Ethereum, reinvigorating investor sentiment.

Bitcoin During Monetary Easing Cycles

2020–2021: Pandemic-Era Easing and Bitcoin’s Bull Run
– Central banks deployed trillions via quantitative easing (QE) and zero interest rates.
– Bitcoin surged from ~€6,200 in early 2020 to over €53,400 by April 2021, driven by inflation fears and rising institutional adoption.

2019: Rate Cuts and Crypto Recovery
– With three “insurance” cuts in the U.S.
– Bitcoin jumped from ~€3,500 to ~€13,800 by June, boosted by improved financial conditions.

2022–2023: Hawkish Pivot and Bear Market
– Aggressive tightening crushed crypto. Bitcoin fell below €16,000 in 2022.

2024–2025: Bull Run Redux
– Trump’s re-election, a surge in high-net-worth inflows, and geopolitical tension (U.S.–China tariffs) initially tanked stocks but later fuelled Bitcoin’s resurgence. The People’s Bank of China’s dovish pivot played a critical role in turning sentiment.

“China’s easing measures reverberated across global assets, but Bitcoin’s spike is a signal of where digital capital now flows first.”
— Bloomberg Markets, May 2025

 

Despite being decentralized, Bitcoin remains tied to macroeconomic trends:

Interest Rates: Lower rates reduce opportunity costs and increase Bitcoin’s appeal.

Liquidity Policy (QE vs. QT): QE boosts asset prices; QT removes liquidity.

Currency Devaluation: In places like Turkey and Argentina, where fiat struggles, Bitcoin demand grows. Europeans are similarly wary of the euro’s long-term weakness.

Why Central Bank Policies Matter for Bitcoin

Despite being decentralized, Bitcoin remains tied to macroeconomic trends:

  • – Interest Rates: Lower rates reduce opportunity costs and increase Bitcoin’s appeal.

  • – Liquidity Policy (QE vs. QT): QE boosts asset prices; QT removes liquidity.

  • – Currency Devaluation: In places like Turkey and Argentina, where fiat struggles, Bitcoin demand grows. Europeans are similarly wary of long-term euro weakness.

“The ECB’s pivot may mark a new phase for digital assets as stores of value in Europe.”
— Christine Lagarde, President, European Central Bank (2025 address)

The Role of Bitcoin in Monetary Easing

With sovereign wealth funds and institutions turning to Bitcoin, its role as a macro asset is cemented. In Europe, rate cuts expected by Q3 2025 due to weak growth may weaken the euro, further increasing demand for Bitcoin as a hedge.

Global Correlation Trends

Since 2024, Bitcoin has shown a growing correlation with equities during easing periods — but when rate cuts come in response to crisis, Bitcoin often outperforms.

European Investors’ Strategy

If you’re navigating this rate-shifting environment:

  • – Stay Macro-Aware: Watch ECB, Fed, and PBoC updates.

  • – Diversify: Include Bitcoin in multi-asset portfolios.

  • – Consider ETFs: Spot Bitcoin ETFs provide accessible, regulated exposure.

  • – Use Risk Management: Employ stop-losses and cost averaging.

“In the face of weakening currencies and shrinking yields, Bitcoin is no longer optional — it’s strategic.”
— Michael Saylor, Chairman, MicroStrategy

A New Chapter for Bitcoin

With global monetary softening on the horizon, Bitcoin sits at the crossroads of finance and innovation. As institutions accumulate and fiat scepticism rises, Bitcoin’s position as a legitimate global asset has never been clearer.

Bitcoin has evolved beyond speculative origins — it now reflects global economic sentiment.

Image Source: Adobe Stock

Disclaimer: This article is purely for informational purposes. It is not offered or intended to be used for legal, tax, investment or financial advice.

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The Utility-Driven NFT Revival in 2025

May, 2025
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| NFTs

Following the boom and bust of 2021, NFTs were widely written off as a speculative frenzy over overpriced JPEGs. However, in 2025, NFTs are making a powerful comeback — this time with meaningful utility. The focus has shifted from collectability to function, and that’s where NFTs truly shine.

The demand for a secure, tamper-proof identity grows as our digital lives progress. NFTs are doing their best to step up as a decentralized solution. Whether it is diplomas, health records, licenses, or job credentials, identity-related documents can be minted as NFTs, stored securely, and verified instantly, without intermediaries.

NFTs are also becoming digital gatekeepers. Whether it’s entry into a concert, access to the gated online community, or a subscription to premium content, the NFT-based authentication forms the basis for rightful holders to participate. This improves security and provides creators with new tools to monetise exclusive content and experiences.

The New Age of NFTs

NFTs today are no longer just digital art. They’re programmable assets enhancing transparency, efficiency, and ownership in both digital and physical ecosystems. The new wave of NFT applications is led by three transformative pillars: real estate, gaming, and identity verification.

NFTs as the New Deeds

“NFT-based titles are transforming real estate by enabling instant transfers, reducing paperwork, and allowing fractional ownership.” — MIT Digital Property Lab, 2025

Imagine purchasing a home without banks, lawyers, or endless paperwork. Thanks to NFTs, real estate can now be Tokenised, traded like shares, and owned in fractional ownership. Smart contracts automate the issuance of deeds, lease agreements, and global compliance in seconds, unlocking international investment opportunities like never before.

NFT Gaming Integration

Gaming has embraced NFTs more than any other sector. In today’s Web3 worlds, players own their in-game assets — be it land, weapons, or skins — and can trade them freely for real-world value.

“Play-to-Earn ecosystems fueled by NFTs are creating decentralized digital economies where players are participants, not products.” — DappRadar NFT Gaming Review, Q1 2025

Interoperability across games enables assets to be transferred between ecosystems, creating a multiverse of interconnected experiences. Developers also benefit via royalties embedded into every resale, aligning value with creativity. For players, it’s about empowerment; for creators, it’s a new monetization model.

 

A Secure Digital Passport

The demand for a secure, tamper-proof identity grows as our digital lives progress. NFTs are doing their best to step up as a decentralized solution. Whether it is diplomas, health records, licenses, or job credentials, identity-related documents can be minted as NFTs, stored securely, and verified instantly, without the need for intermediaries.

“Identity NFTs allow individuals to control their data and prove credentials across platforms without compromising privacy.” — World Economic Forum Insight Report, 2025

NFTs are also becoming digital gatekeepers. Whether it’s entry into a concert, access to the gated online community, or a subscription to premium content, the NFT-based authentication forms the basis for rightful holders to participate. This improves security and provides creators with new tools to monetise exclusive content and experiences.

Challenges Vis-à-Vis Opportunities

This utility-hungry resurgence does not happen without its struggles. Regulatory uncertainty, environmental concerns, and challenging user onboarding issues still dominate. But the shift is undeniable: NFTs move from the speculative to being the spine of the digital economy.

“NFTs will underpin the future of digital commerce and identity — provided their evolution is tied to real-world value and regulation.” — Gartner Blockchain Hype Cycle, 2025

Now that adoption continues to grow, we can expect NFTs to bring disruptions to expect NFTs to uncover disruptions in even more sectors, such as healthcare, supply chain logistics, or financial services. The promise? A more transparent, efficient and user-owned future.

NFTs Are Back — and This Time, They Matter

The NFT market in 2025 is about solving real problems. From supporting global investments in real estate, empowering gamers, or protecting identities, NFTs are finding their way into the tapestry of our digital lives.

Image Source: Adobe Stock

Disclaimer: This article is purely for informational purposes. It is not offered or intended to be used for legal, tax, investment or financial advice.

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Sovereign Bitcoin Adoption: Where It Stands in 2025

May, 2025
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| Bitcoin

Sovereign Bitcoin Adoption: Where It Stands in 2025

With Bitcoin becoming a legitimate financial instrument, the debate has shifted from whether countries should embrace it to how and when. As sovereign wealth funds step into the crypto world, Spot ETFs are opening the doors to direct exposure, and the geopolitical climate is forcing nations to hedge against uncertainty. Perhaps we are witnessing the beginning of a global sovereign Bitcoin accumulation period.

From El Salvador’s novel leap forward to the speculative whispers of Argentina and now building institutional interest out of the United States, Middle East, and now Europe, the geography is changing quickly. So what does all that mean for investors, and which country could be next?

El Salvador: Still the Frontline of Sovereign Bitcoin Adoption

In 2021, El Salvador became the first nation to make the use of Bitcoin as legal currency. Fast forward to 2025 — the Central American nation is no longer an outlier, but a pioneer, and its early bet already seems like it was prescient. Although global financial institutions have been sceptical, El Salvador has been adamant- regularly buying BTC, mining using geothermal and issuing “Bitcoin Bonds” to finance national projects.

“Bitcoin is good for the country, good for progress, and good for innovation.”
— Nayib Bukele, President of El Salvador (2024)

Although the country’s treasury strategy is akin to a Bitcoin-focused reserve, its informal sovereign wealth management approach is in contrast to traditional funds. With the price of BTC skyrocketing at the end of 2024 and the beginning of 2025, El Salvador now finds itself in a green position on its crypto-holdings, validating its move to invest in a decentralized resource amid international financial turmoil.

The Rise of Sovereign Wealth Funds in Crypto

The actual game changer in 2025 is sovereign wealth funds (SWF) participation. Traditionally, long-term holders of stocks, real estate, and bonds, such as SWFs, are experimenting with Bitcoin.

The US sent ripples in the crypto industry in February 2025 when it unveiled its first national sovereign wealth fund and a strategic Bitcoin reserve. Although this fund will only be operational by late 2025/early 2026, the political signal is deafening – loud and clear: Bitcoin is now viewed as a national strategic asset.

“Bitcoin has matured into a globally recognized store of value. It would be imprudent for national reserves to ignore it.”
— U.S. Senate Committee on Banking (Feb 2025 report)

Bhutan was an early starter—it has quietly accumulated over 10,000 BTC, or currently about €1 billion, through its sovereign Druk Holding and Investments. 

“We see Bitcoin as a long-term strategic asset aligned with our national interests and economic innovation.”
— Druk Holding and Investments (Official Statement, 2024)

Abu Dhabi’s Mubadala Investment Co. has also made news with massive ETF investments in Bitcoins, and Wisconsin’s public fund has replicated this step.

“Our move into Bitcoin ETFs reflects the importance of digital assets in a modern investment portfolio.”
— Scott Goodwin, Chief Investment Officer, Wisconsin Investment Board (2025)

The gradually accumulating list of institutional adopters, boosted by the accessibility of spot Bitcoin ETFs, gives Bitcoin legitimacy that only big money could grant.

Argentina: The Next Mover

All eyes are on Argentina. The country’s continued inflation, peso devaluation, and political uncertainties are significant factors that make it a good investment for Bitcoins. Though Argentina hasn’t officially adopted BTC at the sovereign level, President Javier Milei has openly supported decentralised money.

“Central banks are a scam; I believe in Bitcoin and freedom.”
— Javier Milei, President of Argentina (2023 campaign)

Bitcoin grassroots adoption in Argentina has already become extensive, with citizens using Stablecoins and BTC to safeguard their fortunes. The jump from retail purchasing to state-level accumulation may not be far away, particularly with Bitcoin increasingly framed as a geopolitical hedge.

Why Sovereign Adoption Matters Now

The timing is no accident. 2025 is a breakout year for sovereign Bitcoin adoption as several actors are converging to make it a reality:

– Macroeconomic instability: Rising inflation, debt crises, and distrust in fiat systems push nations to diversify.

– Institutional infrastructure: The launch of US Bitcoin Spot ETFs in 2024 unlocked a secure and regulated way for SWFs to gain exposure.

– Bitcoin’s scarcity and halving: The 2024 halving will tone down new BTC issuance, tightening supply and causing a race to accumulate.

– Technological evolution: Tools like the Lightning Network and custody measures make Bitcoin more viable for state actors.

– Decentralization as a geopolitical hedge: Bitcoin’s neutrality and resistance to censorship appeal to countries looking to escape the influence of traditional powers.

  •  

“The halving is not just a technical event—it is a geopolitical accelerant.”
— Lyn Alden, Macro Economist (2025)

Implications for Investors

The effects are widespread for individual and institutional investors. When more countries use Bitcoin as a reserve asset, directly or via sovereign funds, it may generate a supply shock and send prices into an even greater upward spiral. Bitcoin supply is capped at 21 million coins; thus, sovereign adoption comes with a competitive element: the earlier the entry, the larger the possible positive outcome.

Furthermore, Bitcoin’s ability as a macro hedge is harder to deny. Where fiat currencies are printed as a response to a financial crisis, Bitcoin’s scarcity and decentralized nature become ever more alluring not to geeks but to the governments and reserve banks.

Geopolitical Arms Race for Bitcoin

2025 is no longer hypothetical when sovereign Bitcoin adoption is concerned. It’s here—and expanding. El Salvador sparked, Bhutan followed quaintly, and now the US is in the ring, along with Abu Dhabi and possibly Argentina.

“The digital gold rush has begun. Governments that wait too long may be priced out.”
— Fidelity Digital Assets Research (Q1 2025 Report)

The question isn’t if more countries will join. It’s when, and who can afford not to? While nations fight for a share of Bitcoin’s fixed pie, investors must keep a keen eye on the arms race. The next sovereign step may be minutes away – and the market is already responding.

In Europe, the message is clear: Bitcoin is no longer fringe. It’s sovereign.

Image Source: Adobe Stock

Disclaimer: This article is purely for informational purposes. It is not offered or intended to be used for legal, tax, investment or financial advice.

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MiCA Regulation vs. Other Jurisdictions

May, 2025
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| Bitcoin

Regulatory clarity has become a strategic advantage as the digital asset industry grows. While jurisdictions worldwide still debate the best frameworks to govern crypto markets, Europe has taken a decisive lead with its Markets in Crypto-Assets (MiCA) regulation. MiCA may propel Europe to the forefront of global digital finance by establishing the most comprehensive and harmonised legal structure to date.

MiCA: From Wild West to Financial Legitimacy

The European Union’s MiCA regulation was fully effective on 30 December 2024. It provides a passportable framework across EU states for crypto-asset service providers (CASPs), addressing Stablecoins, exchanges, wallet providers, and more.

According to Verena Ross, Chair of the European Securities and Markets Authority (ESMA):

“The entry into force of the MiCA regime from 30 December 2024 marks a significant step towards having a regulatory framework for the crypto market in place.”

MiCA introduces bank-like licensing requirements, strict anti-money laundering (AML) standards, and investor protections. Supporting acts like the Digital Operational Resilience Act (DORA) and Transfer of Funds Regulation (TFR) ensure a broad legal shield.

Despite upfront compliance costs—licensing fees from €50,000 to €150,000, legal structuring, and advisory costs—MiCA offers one thing the market long craved: predictability.

“MiCA imposes high costs and forces startups to allocate excessive early-stage capital toward regulatory compliance.”
said Erwin Voloder, Head of Policy at the European Blockchain Association.

Nonetheless, major platforms such as Crypto.com and OKX obtained MiCA licenses through Malta in January 2025—an early vote of confidence in Europe’s framework.

United States: Innovation Over Infrastructure

In contrast, the U.S. has pivoted away from enforcement-heavy oversight under the Trump administration. Former SEC Chair Gary Gensler’s crackdown era has ended. Repealing Biden-era crypto task forces, the U.S. now fosters a light-touch, innovation-friendly stance.

This approach supports the development of Blockchain and Stablecoins while actively opposing central bank digital currencies (CBDCs). But without a unified law, fragmentation reigns.

“The US relied on existing agencies like the SEC instead of building a unified crypto law… That generates legal doubt that drives many projects abroad,”
said Manouk Termaaten, Founder of Vertical Studio AI.

This ambiguity may benefit early-stage ventures but creates regulatory inconsistency, discouraging institutional investment and long-term planning.

United Kingdom: Vision Without Volume

The UK has declared ambitions to be a global crypto hub post-Brexit. The Financial Conduct Authority (FCA) has started to regulate Stablecoins and token promotions, but the framework lacks the legal cohesiveness of MiCA.

As Konstantinos Adamos, Group Lead Legal Counsel for Crypto at Revolut, commented:

“Unfortunately, the UK has remained behind… I am optimistic as it seems that the FCA is working at pace and has a very ambitious agenda.”

Still, with only 4 of 29 crypto firm applications approved as of early 2025, progress is slow.

Asia: Innovation in a Mosaic

In Asia, regulation is uneven and regionalised. Countries like Singapore and Japan have implemented clear licensing regimes and launched CBDC pilots.

Meanwhile, Hong Kong made headlines in April 2024 by launching the first spot Bitcoin and Ether ETFs, further solidifying its bid to be the region’s digital asset hub (source).

Conversely, China remains firmly anti-crypto, banning almost all decentralized crypto activity while investing in its digital yuan.

This mix of liberal and restrictive policies makes Asia a fertile but fragmented landscape for cross-border blockchain ventures.

Why the EU Is Pulling Ahead

MiCA’s real advantage lies in clarity and scale. Unlike the policy volatility in the U.S. or the ongoing development in the UK and Asia, MiCA sets enforceable rules across a multi-trillion-dollar economic bloc.

“The EU treats crypto as part of its traditional financial system—it’s cautious, centralized, and prioritises regulation through MiCA and the upcoming digital euro.”
observed Termaaten.

This certainty is attracting companies seeking stability. As highlighted by DNA Crypto, a regulated Virtual Asset Service Provider (VASP) in Poland, compliance with MiCA and AML laws is now a defining asset in brand trust and user adoption.

MiCA also paves the way for the EU’s next steps: a retail-ready digital euro, interlinked with EU-wide cyber resilience, payment standardization, and transaction transparency goals.

The Takeaway

The battle for regulatory leadership in digital finance is no longer about speed but infrastructure. Europe’s MiCA, DORA, and TFR offer a model that balances regulatory certainty with innovation readiness.

While the U.S. remains a cradle for agile startups and Asia continues to drive creative blockchain uses, Europe now leads in institutional credibility and policy maturity. The next wave of crypto adoption—whether via tokenized assets, institutional DeFi, or CBDCs—may well be shaped in Brussels, not Silicon Valley.

“The MiCA regime represents a new era for crypto in Europe. It’s a playbook others will now be watching very closely.”
— Verena Ross, ESMA

Related Resources:

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Explore the intricate relationship between cryptocurrency and European regulations with this captivating image showcasing a Bitcoin tethered to a chain against the backdrop of the European Union flag

MiCA Explained: What Every Crypto Investor in the EU Needs to Know

May, 2025
| No Comments
| Bitcoin

Markets in Crypto-Assets Regulation (MiCA) of the European Union is the key to developing the Digital Assets regulation. MiCA is important for investors, token issuers, exchanges, and custodians who operate within the EU as the crypto industry progresses.

What is MiCA?

MiCA is a broad regulatory mechanism the European Union implements to govern the crypto-assets market. It creates legal clarity, protecting investors and guaranteeing stability in finances through regulating crypto aspects like:

  • Crypto-assets: Utility tokens, Stablecoins, and other digital assets not classified as financial instruments under existing EU laws.
  • Public offerings: Entails offering of crypto-assets to the public.
  • Market abuse: Activities perceived as market abuse.
  • Crypto Asset Service Providers (CASPs): Exchanges, wallet providers, and other intermediaries.

Timeline of Application

MiCA’s implementation is phased to allow for a smooth transition:

  • June 30, 2024: Provisions concerning asset-referenced tokens (ARTs) and e-money tokens (EMTs) became applicable, setting requirements for issuers of these Stablecoins.
  • December 30, 2024: The remaining provisions came into effect. This included regulations for other crypto-assets, CASPs, to curb market abuse. Also, registered Virtual Asset Service Providers (VASPs) must have valid licenses before then.

 

“As of June 2024, all issuers of asset-referenced and e-money tokens operating in the EU must comply with MiCA’s stringent disclosure, reserve, and redemption requirements.” — European Securities and Markets Authority (ESMA)

Impact on Token Issuers

Token issuers must adhere to specific requirements under MiCA:

  • – Legal Entity Registration: Issuers must be registered as legal entities within the EU.
  • – White Paper Publication: A detailed white paper outlining the project, associated risks, and technology used must be developed and submitted to authorities.
  • – Risk Communication: Clear communication of risks associated with the crypto-assets is mandatory.

 

Exemptions from these obligations include:

  • – Offers targeted only to qualified investors.

  • – Offers under €1 million over a 12-month period.

  • – Tokens offered as rewards for maintaining blockchain infrastructure.

  • – Free distributions (i.e., airdrops) not involving any form of consideration.

“White papers under MiCA must contain fair, clear, and not misleading information and be notified to national competent authorities before public offering.” — Official Journal of the European Union, Regulation (EU) 2023/1114

Impact on Exchanges and Custodians

Crypto Asset Service Providers (CASPs), including exchanges and custodians, are subject to licensing requirements:

  • – Mandatory Licensing: CASPs must obtain a license from a competent national authority.

  • – Passporting Rights: A license granted in one EU member state is valid throughout the entire EU and EEA, streamlining cross-border operations.

  • – Substance Requirements: CASPs must have a local presence, with sufficient human and technical resources in the licensing state.

 

“MiCA introduces a harmonized licensing regime for crypto-asset service providers, enabling seamless operation across EU markets via passporting.” — European Commission, MiCA Legislative Proposal

Conclusion

Through MiCA, corporate synergism exists for the crypto business within the EU, intending to achieve better investor protection and market integrity. Crypto investors, token issuers, exchanges, and custodians will be better positioned to manoeuvre in the ever-transforming digital asset waters by understanding and adhering to the provisions under MiCA.


Image Source: Adobe Stock

Disclaimer: This article is purely for informational purposes. It is not offered or intended to be used for legal, tax, investment or financial advice.

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Bitcoin and Gold on scales

Bitcoin vs. Inflation: A Comparative Analysis with Gold

May, 2025
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| Bitcoin

Amidst concerns about inflation, prudent investors are turning to alternative assets to preserve their purchasing power and long-term financial stability. Gold, a time-tested haven, now has a serious contender: Bitcoin. If we examine the period from 2020 to 2025, both these sought-after assets have gained traction as inflation hedges.

In this write-up, we examine the performance and volatility of key economic indicators, such as the CPI and real yields, to help you determine which asset is better suited for these changing financial times.

Performance Overview (2020–2025)

Bitcoin (BTC)

 

Gold (XAU)

  • Price Growth: Gold increased from around €1,300 per ounce in early 2020 to circa €3,000 by May 2025, a 122% surge.
  • Volatility: This precious metal maintained a more stable annualised volatility, ranging between 12% and 15%.

Inflation and Real Yields

Category

Period

Details

Consumer Price Index (CPI)

2020

Inflation spiked to 7.0% as a result of the COVID-19 pandemic.

 

2021–2022

Maintained at 6.5% in 2022.

 

2023–2025

Gradually declined to 2.4% by March 2025, aligning with the European Central Bank’s target.

Real Yields (10-Year Treasury)

2020–2021

Real yields were negative, reaching lows of around -1.0%, due to aggressive monetary easing.

 

2022–2025

The shift was positive, climbing to approximately 1.67% by April 2025, particularly with the implementation of tighter monetary policy.

Comparative Insights

1.     What is the Effectiveness of Inflation Hedging?

It is safe to say that Gold demonstrated a strong positive correlation with inflation, further reinforcing its role as a traditional hedge. In contrast, Bitcoin exhibited inconsistent behaviour in response to inflationary pressures. This is especially true with performance influenced more by market sentiment and liquidity conditions.

2.     Market Liquidity and Adoption

We can conclude that gold benefits from deep liquidity and widespread acceptance among central banks and institutional investors. On the other hand, Bitcoin’s liquidity has tremendously improved, especially with the introduction of ETFS and increased institutional adoption. However, it still faces regulatory uncertainties.

3.     Utility and Use Cases

Gold serves industrial, ornamental, and monetary purposes, including central bank reserves. In contrast, Bitcoin is primarily a digital asset used in decentralised finance (DeFi), cross-border transactions, and Blockchain-based applications.

Investor Comparison Table (2020–2025)

Criteria

Gold

Bitcoin

Investor Insight

Return on Investment

~122%

~1,300%

Bitcoin outperformed in returns but with higher volatility.

Volatility (Annualised)

12–15%

60–80%

Gold offers stability; Bitcoin entails higher risk.

Inflation Hedge

Strong positive correlation

Mixed behaviour

Gold remains a reliable hedge; Bitcoin’s role is uncertain.

Liquidity & Adoption

Deep, globally accepted

Growing, yet evolving

Gold is established; Bitcoin is gaining traction.

Utility

Industrial, monetary uses

Digital finance applications

Gold is traditional; Bitcoin is innovative.

BTC-to-Gold Ratio Analysis

The BTC-to-Gold ratio has had its fair share of fluctuations. This shows the dynamic nature of these two classes of assets. Additionally, the ratio has formed an inverted head and shoulders pattern since 2016, with key lows in 2020 and 2023. A breakout above the 40 levels would signal a surge in Bitcoin prices.

In a Nutshell

In the last decade or so, Bitcoin and Gold have both been leveraged against inflation, each with distinct characteristics:

All in all, investors should consider their risk tolerance, investment goals and portfolio diversification when choosing between these assets.

Image Source: Adobe Stock

Disclaimer: This article is purely for informational purposes. It is not offered or intended to be used for legal, tax, Investment or financial advice.

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Why USDT is Buying Bitcoin in a World of Regulation and Uncertainty

May, 2025
| No Comments
| Stablecoins

When the crypto market starts getting hit with regulatory changes, it is no surprise that investors begin to get nervous. From delistings to government crackdowns, the rules are changing, and it feels like nobody is safe.

Amidst this regulatory frenzy, Stablecoins like Tether (USDT) often find their place as reliable, predictable options — until they don’t.

Tether’s Response to Regulation

Tether, the world’s largest Stablecoin, has been facing regulatory heat lately. Several major exchanges, including Crypto.com and Binance, have faced pressure from European regulators due to new rules requiring Stablecoins to meet stricter guidelines.

“Crypto.com has already announced it will delist USDT for EEA users by July 2024, citing MiCA compliance concerns.” – Crypto.com press release, January 2024

“Binance is evaluating its stablecoin offerings across the EU in light of MiCA, with delistings of non-compliant tokens expected to follow.” – Binance EU Strategy Team, March 2024

While some exchanges have responded by suspending or delisting USDT on specific platforms, Tether remains one of the most widely used Stablecoins globally. As governments flex their muscles, crypto companies must either adapt or risk being left behind.

“Under MiCA regulations, unregulated stablecoins like USDT are increasingly being pushed out of European markets due to transparency and reserve backing requirements.” – European Securities and Markets Authority (ESMA), 2024 policy brief

In the past, when regulations started to tighten, the answer was simple: adjust and move on. But Tether’s response is a bit more interesting. Rather than just hunkering down and hoping things settle, Tether is making a bold move: They are buying Bitcoin—a lot of it.

Why Bitcoin?

Simple. It doesn’t care about tariffs, inflation, or whether a government thinks it should exist. Bitcoin operates on its own, outside the reach of any central bank, and it’s not tied to any one country’s political whims.

Today, Stablecoins like USDT are subject to shifting government policies, and Bitcoin’s neutrality becomes an appealing asset. Tether is betting that diversifying into Bitcoin can create a buffer against the unpredictable nature of global regulations.

“Tether’s delisting in Europe marks the start of a geopolitical shift where stablecoins must prove they are more than shadow dollars.” – Dr. Patrick Hansen, EU crypto policy expert

While traditional financial assets are often at the mercy of political moods, Bitcoin continues to operate independently, regardless of the news.

In other words, Bitcoin offers financial freedom that traditional currencies, even stable ones like USDT, can’t match. And that’s precisely what Tether needs right now.

“Europe’s regulatory shift is not just about Tether—it’s about redefining the very foundation of what digital money means in a post-MiCA world.” – Clara Duro, Head of Digital Assets Regulation, Frankfurt School of Finance

Bitcoin’s Role in a Shifting Landscape

This isn’t some wild theory or a crypto pipe dream. Bitcoin has already proven its worth as a kind of hedge during times of economic uncertainty. Consider the trade wars between the US and China, which have been ongoing for about a decade. Tensions between the two countries saw Bitcoin surge in interest, as people turned to it as a potential haven, much in the same way investors flock to gold during uncertain times.

Tether’s bet on Bitcoin comes as global supply chains and trade relationships are again being tested. With tariffs becoming more common and countries reevaluating their trade policies, Bitcoin is starting to resemble digital gold — an asset that’s easy to store, move, and trade, even in a digital-first world.

“With the European Union cracking down on stablecoins that don’t meet their asset reserve and audit standards, Tether’s hold on the continent is weakening.” – Reuters Financial, February 2025

What’s the Catch?

Of course, there are a few things to keep in mind. Bitcoin’s volatility is no secret. While its adoption is growing, it remains a less popular choice for many investors. Some still see it as too risky, and others don’t fully understand it.

And, unlike traditional safe havens like gold or government bonds, Bitcoin’s relationship with market movements isn’t always clear. On some days, it behaves like a high-risk asset; on other days, it acts like a refuge. It’s unpredictable and difficult to predict.

But in a world where everything seems to be up in the air, having an asset that’s not tied to any country’s economy is a real advantage. Bitcoin has demonstrated its ability to function independently, and that’s why Tether is incorporating it into its plan. Tether is still figuring out how to navigate a world where regulations change almost daily, but its decision to invest in Bitcoin shows that it’s thinking ahead. It’s not a perfect solution, but it’s a smart one.

Image Source: Adobe Stock

Disclaimer: This article is purely for informational purposes. It is not offered or intended to be used for legal, tax, investment or financial advice.

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Cardano launched Veridian.

Cardano’s New Solutions, Offering and Identity?

May, 2025
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| Altcoins

On April 3rd, Cardano launched Veridian, an open-source digital identity platform that puts individuals, not corporations, in control of their personal data. For a while now, there has been a growing concern surrounding data privacy in Europe. As a result, Veridian is here to provide a timely response, ensuring secure and decentralised identity solutions.

“Veridian gives individuals, not corporations, complete control over their digital identity.”

What is Veridian?

In Europe, internet users have become more conscious about who can access their data. GDPR is one driver among many recent breaches that make businesses face stronger demands for improved data protection practices. Veridian addresses the problem by granting complete digital identity control to its users.

The system operates under KERI (Key Event Receipt Infrastructure) and ACDC (Authentic Chained Data Container) credentials, allowing users to authenticate their identities without centralised intermediaries. 

“With Veridian, nothing moves without your consent—every data-sharing choice is yours alone.”

You are responsible for every choice about sharing data and for selecting your sharing audience. Nothing will happen without your consent.

Built on Cardano: Extra Security Without Centralised Gatekeepers

Veridian is a standalone tool that operates while connected to Cardano’s Blockchain for enhanced trust functionality. At the same time, the platform functions independently but enables Cardano’s trust framework to ensure secure, decentralised credential verification.

The emphasis on openness and trust remains essential in Europe rather than mere advertising, as these principles represent European societal expectations. Through Veridian + Cardano, you can verify and secure identity proofing and service submissions without giving authority to outside parties.

The Veridian Wallet

Veridian Wallet is a mobile app that enables users to securely store digital IDs, credentials, and qualifications on a single secure platform. Your device retains complete control of all data, and you decide when and where to use it.

“The Veridian Wallet stores IDs, credentials, and qualifications in one secure place—your device.”

The solution operates across educational and employment sectors, healthcare services, etc. Users can streamline service delivery through a system that gives full control over how and when their credentials are shared.

Bringing Bitcoin into the Picture

The Veridian system is part of a broader organisational plan. In April last year, Cardano founder Charles Hoskinson made clear his intentions to unite Bitcoin with Cardano’s decentralised finance (DeFi) network.

“Charles Hoskinson’s vision is to merge Bitcoin with Cardano DeFi in just three years.”

Integrating Bitcoin with Cardano smart contracts will be possible through Hydra and Aiken programming languages, facilitating Bitcoin operations within the Cardano framework. The project represents a bold effort to develop financial products that eliminate traditional intermediaries for better user control. Hoskinson says adopting Bitcoin-based DeFi solutions through the Cardano Blockchain will take three years.

“Cardano’s plan to integrate Bitcoin into its DeFi network could redefine financial autonomy.”

What This Means for ADA

The forthcoming advancements in Cardano will directly affect the fundamental value of its native cryptocurrency, ADA. It has recently experienced strong fluctuations after its value fell 13% to €0.60 over the past few weeks. Based on future positive market trends, Analyst Jonathan Carter predicted ADA would reach €0.59 before rising again to around €1.

Typically, Cardano is still in its active development cycle. The organisation is constructing an open-source chain of decentralised products, including Veridian wallet and Bitcoin integration strategies. Controlling how you manage your identity and financial tools continues to be the primary objective of such systems, which seek to place control back into your hands.

“Open-source, user-controlled, and trust-focused—Veridian is Cardano’s response to Europe’s privacy crisis.”

Image Source: Adobe Stock

Disclaimer: This article is purely for informational purposes. It is not offered or intended to be used for legal, tax, investment or financial advice.

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