Bitcoin unexpectedly bounced back, closing the week in the green above $28,000, officially ending a three-week losing streak.
BTC Price Chart – 1 week | Source: TradingView
The president of Russia's second-largest bank said there is every reason to expect the Chinese yuan to replace the dollar as the world's main reserve currency.
He emphasized that the central bank of Russia has begun to reserve in yuan, and more than 70% of trade between Russia and China is paid in yuan and rubles.
The president of Russia's VTB Bank, Andrey Kostin, told a Russia-China business forum in Shanghai last week that the Chinese yuan would replace the US dollar as the reserve currency. and payments of the world in the next 10 years.
“China is currently the second largest economy in the world and will soon become the leading one.”
The president of VTB Bank explained that the monetary and financial system that has existed for decades ensures the hegemony of the United States and its Western allies, with the USD and the euro accounting for three-quarters of all payments. bridge. He emphasized that, while the greenback is the world's main reserve currency, the West in general, especially the United States, has used it as a weapon.
In February, the US Treasury Department announced "unprecedented" and "expanding" sanctions against VTB and Sberbank, Russia's two largest banks.
Russia and China are increasingly strengthening economic ties and using local currencies in commercial transactions. In April, the Chinese yuan surpassed the USD to become the most traded currency in Russia. This trend is expected to continue growing in the future, as both countries seek to reduce their dependence on the dollar.
Many have warned that the weaponization of the USD will lead to the greenback losing its status as a global reserve currency. More and more countries are promoting the use of national currencies to reduce dependence on USD.
The BRICS economic bloc has been ramping up efforts to de-dollarize and has proposed a single currency. Ten Southeast Asian countries have agreed to promote the use of national currencies, and recently top officials from nine Asian countries met in Iran to discuss de-dollarization measures.
However, the International Monetary Fund (IMF) did not see a “rapid change” in USD reserves, despite the growing trend of de-dollarization.
In a recent interview, Arthur Hayes said that the US debt ceiling issue could favor Bitcoin (BTC). When the debt ceiling is reached, it can have significant economic and financial implications.
Hayes noted that a 4.9% inflation rate, coupled with debt defaults, could cause the US economy to collapse. So residents of the country can start looking towards digital assets like Bitcoin for safety.
On May 27, the Financial Times reported that the US may not meet its debt payment deadline of June 5. According to the Finance Secretary, Janet Yellen, the government may run out of money and she also mentioned that printing more USD might not solve the problem.
According to the on-chain analytics platform, the number of addresses holding 0 to 1 BTC has been growing since April.
Source: Santiment
This supply allocation indicates increased activity in the retail group. On the Circulating Supply side, the index has moved up, touching 1.17 million in the past 30 days.
Circulating Supply supply emphasizes the number of unique BTC transacted in a particular time period. Therefore, the increase in this indicator implies that the amount of BTC participating in buying and selling has sanitize after the downturn of the previous few weeks.
Additionally, Bitcoin exchange inflows have dropped to 3,105. The drop in this metric indicates less deposits on exchanges, leading to a easing of selling pressure.
Source: Santiment
Altcoin rallied after BTC unexpectedly bounced above $28,000.
Mask Network (MASK) was the best performing project of the day with an increase of more than 12%, wiping out the loss of the past week.
Injective (INJ), PancakeSwap (CAKE), ImmutableX (IMX), Neo (NEO), Stacks (STX), The Sandbox (SAND), Sui (SUI), Lido DAO (LDO), Fantom (FTM)… grew from 4-9% in the last 24 hours.
Source: Coinmarketcap
Following Bitcoin's momentum, Ethereum (ETH), the 2nd largest asset by market capitalization, has also bounced more than 3%, surpassing the $1,900 mark and currently trading around $1,915.
ETH price chart – 1 hour | Source: TradingView
