Good morning. Here’s what’s happening:

Prices Ethereum and Bitcoin are in the green, nearing highs not seen since COVID-19-induced bull markets.

Insights Arthur Hayes, former CEO of BitMex, believes traditional banking has failed and that finance will never be the exact same.

As the Asia business day starts, bitcoin and ether are both in the green. Bitcoin has surpassed the $30,000 yearly high and ether is testing $2,000.

Crypto-related stock is also at an all-time high as bitcoin prices surge.

Although bitcoin’s relationship with the current banking crisis has been a clear winner, there are many questions about how the Ethereum network’s Shanghai upgrades will impact the price of ether.

It is what ether really needs to grow. Or is ether following the bitcoin gains?

Brian Mosoff, CEO of Ether Capital, calls it a “non event.”

“My suspicions are that this is going be a non event in terms of price,” Mosoff said to CoinDesk TV’s Monday. “I believe you’ll see more ETH locked into staking from solo stakers, or again, structured products coming to market.”

The fact that the majority of staked ether is being held at a loss is another factor. CryptoQuant recently reported.

The futures market prices modest gains in ether for contracts that expire at June’s end.

On April 12, new inflation data will be available. This should reveal whether the Federal Reserve has managed to subdue the beast. The Federal Reserve is always bullish on crypto and other risk assets.

Some have suggested that crypto is a new safe-haven narrative, but the data still shows a close correlation with the S&P 500.

“We expect to see continued accumulation by longer-term investors who are interested in its currency-debasement hedge properties,” Noelle Acheson wrote recently.


Arthur Hayes Doesn’t Misunderstand Banking

VanEck predicted that bitcoin would drop to $10K-12K in the worst days of crypto winter 2022, while the FTX exchange was still smoldering.

Matthew Sigel, VanEck’s head of digital assets research, stated that Bitcoin would test $10,000 to $12,000 in Q1 amid a wave bankruptcies. This will be the lowest point of the crypto winter.

VanEck was correct in many ways about the strain bitcoin has been under. Some miners went bankrupt, Others are involved in litigation and Texas has passed legislation to limit the benefits available to the mining industry.

VanEck was mistaken about a major issue: bitcoin’s price.

2023 is a mini-bull markets. Bitcoin has risen by 80% year-to-date, and is currently worth just $30K.

This is all in the face the the collapse of crypto-friendly banks Silvergate, and Signature.

Arthur Hayes stated that it was all caused by the collapse of the Western banking system in a recent interview with CoinDesk. “The entire Western banking system has collapsed and the world is realizing it, and they are all bankrupt.”

Hayes states that Bitcoin’s relationship with traditional assets is deteriorating as it serves to be an asset outside of the traditional fiat banking systems. He points to the S&P 500’s 7% gain year-to-date versus bitcoin’s over 80% rise.

What does the Hayes portfolio look as the Western banking system collapses?

You can buy bitcoin, gold, property, and possibly some assets in RMB.

He said, “I’m going into all these other items that aren’t connected to the bank system directly.” “I want assets in Dubai and other areas that have real economies other than printing money.

Hayes doesn’t see the dollar as a doomer. He predicts that the currency will still be used with the U.S., her allies, and it won’t be the reserve currency of the world. Balkanization will occur over the next decade, with the dollar accounting for 40%-50% of all trade (between 1999-2019, it accounted to 74% of Asia-Pacific trade and 96% in the Americas).

He stated that the West would be a dollar bloc and that other non-aligned nations will use gold, Dirhams CNY, rubles or any other currency. “You’ll need a different currency to travel to different countries, so everyone will be an FX speculator more often than they are now.”

How about bitcoin’s price?

Balaji Shrinivasan, bet that bitcoin would reach $1 million by June 17. This was due to hyperinflation and a failing bank system. He continues to tweet his prediction, even though prediction markets give it a 99% chance not happening.

Hayes isn’t denying the possibility that bitcoin could hit $1 million and has been vocal in his support of Srinivasan via Twitter. It might take a while before it happens.

“I know it’s coming and I believe bitcoin keeps rising. Is it possible to reach $70,000 in 2017? He said, “I doubt it.” “In 2024, there will be the halving and more banks going bankrupt in Europe and the U.S.A.” You will likely also receive a very clear guarantee from the central banks of all deposits made in the West.

Hayes believes that the market will now know it must be in bitcoin, gold or ether at this point.

He says, “Anything that’s not stocks or government bonds,”

You can’t be bullish about crypto!


Important events

8:30 a.m. SGT (00:30 UTC). Westpac Consumer Confidence Report (April)

9:30 AM HKT/SGT (1:30 UTC) China Consumer Price Index.

5:00 p.m. HKT/SGT(9:00 UTC) European Union Retail Sales (YoY/March)


CoinDesk TV

If you haven’t seen it yet, here’s “First Mover ” on CoinDesk TV.

Ethereum developers started to refer the blockchain’s upcoming fork, in this case, as a key upgrade, to “Shapella” before the two major Ethereum network upgrades that are expected to take place simultaneously on April 12. TRM Labs Head for Legal and Government Affairs Ari Redbord spoke out about the Treasury Department’s first analysis on illicit finance risks related to decentralized finance (DeFi).

Winklevoss Twins Lend Their Crypto Platform Gemini $100M to Bloomberg : The brothers tried to get outside investment. Bloomberg stated.

Hong Kong’s Financial Secret Declares Now is the “Right Time” for Web3 Adoption Paul Chan, Finance chief, stated in a blog post: “Despite recent volatility in crypto markets, it’s now the right time to push forward Web3 technologies.”

Euler Finance community Weighs a Plan to Recover Money From $200M Hack : This proposal aims to allow Euler users to redeem their funds as quickly as possible.

Sushi DEX Recovers100 Ether after Millions of Dollars Losed on Weekend Exploit : “White Hat” hackers are currently working to recover even more of the stolen funds.

AI-Focused CryptoGPT Raised $10M in Funding at $250M Value CryptoGPT has recently launched “Alex”, an AI assistant. It is currently developing its ZK rollup layer 2, blockchain, and a data to AI engine that collects, encrypts, and transfers data for commercial purposes.